Software Radio Technology Plc (AIM:SRT)

Investment Opportunity

Group 4 members:George Abu Nader(Investment Proposal) CID: 00700155Dmitry Tokarev(Investment Model) CID:0072847Farah Najjar(Term Sheet) CID:00697089

2

Contents1. Executive Summary 2. Company 3. Products 4. Customers 5. Market6. Competition7. Business Model 8. Strategy &

Positioning 9. Opportunity 10. Management11. Financial Overview

12. Valuation 13. Investment Returns

& Sensitivity Analysis

14. Legal and Financial Structure

15. Sources and Uses of Funds

16. Capitalization Shareholders Table

17. Risks18. SWOT Analysis

3

Company

Software Radio Technology specializes in research and development of marine identification systems as well as wireless radio technologies

Products

SRT provides a complete range of OEM products, PCA modules and turn-key products that are used in AIS systems and can be finalized by the customer

Market and customers

SRT currently deals with 40 customers across the world. New mandates imposing the presence of AIS equipment on board of vessels are going to be instituted and may drastically increase SRT’s client base

Executive Summary(1/2)

Competition and business model

Competition’s equipment is usually old and expensive. Also, they do not cover the full range of AIS equipment. Through focus on research and reliance on its clients for effective distribution, SRT has consolidated its status the main supplier of marine recognition equipment

Strategy and positioning

Although the company has a remarkable lead in the AIS technology sector, they are continuously focusing on research in order to improve its current product range. They are also looking to enlarge their distribution network

Opportunity

A number of mandates (such as the SOLAS convention instituted by the IMO) will impose the carriage of AIS equipment. Thus, all SOLAS-affected vessels will increase the targeted market segment size

Management

All SRT executive have extensive experience in the fields defining their position. Some of them are also founders of the company

Financial overview

From 2005 till 2009, extensive focus on research explained low returns. Revenues subsequently increased significantly when the company perfected its technology while acquiring a reliable client base across the world

2006 2007 2008 2009 2010 2011 2012

-1.002.003.004.005.006.007.008.009.00

10.00

SRT income per year (£m)

4

We propose investing £18.8 m in the company over a period of 4 years. The target IRR is 20% and proposed equity acquirement is 30%.

Since that the company has currently issued a total of 105.9 million shares, this will entails the issuance of 45.4 shares for Sky Partners.

Executive Summary(2/2)

Enterprise value (entry

and exit) 2011 2015

EBITDA (£m) 2.0 8.0

EV/EBITDA 20.4 20.4

EV (£m) 40.8 163.2

Valuation ratios SRT

PROFILE SYSTEMS &

SOFTWARE SA

ACTEOS

S.A.

STREAMWIDE S.A.

3L System Aktiebola

g

PE ratio 20.18x 47.01x 7.08x 17.17x 38.80x

EV/EBITDA 21.90x 4.13x 4.58x 7.07x 10.50x

EV/Sales 4.78x 0.63x 0.56x 2.15x 1.04xMarket Cap/Book Value of Equity 6.09x 12.87x 8.69x 71.15x 1.69x

Return on Assets (ROA) 28% 1% 12% 16% 4%

Uses of funds:

Marketing (£m): 0.6

Acquisition (£m): 17.9

Human resources (£m): 0.9

Comparables

Risks

Strong correlation with the underlying market

Dependence on customers

Intellectual property protection/infringement

Overseas customers

Dependence on key executives

5

SRT engages in the research and development of wireless radio communication technologies and products for the identification and tracking of land or maritime based assets in the United Kingdom

It is a leading supplier of Marine Automatic Identification System which is primarily used for maritime vessel identification and tracking, and homeland security applications

Provides customers with a wide range of products such as PCA modules, OEM product, and turn-key product which can be subsequently finalized without risk

Key Historical highlights:

Company

Office Location: Bath, England, UK

Foundation year: 2005

Employees: 31

2011 Revenues: £9.52M

Cash position: £3M

Debt position: £1.5M - Sept 05

- Jun 08

- Feb 11

- Jan 07

- Oct 09

Admission to AIM raising 3.5M GBP

Placing to raise 4.25M GBP

Agreement with Saab Transponder Tech

Placing to raise 4M GBP

FCC approves AIS Class B technology

First orders of AIS Class A transceiver

Class A transceiver approvals received

Placing to raise 2.5M GBP1.2M USD AIS ordersStrategic AIS agreement

0.7M USD Chinese AIS orders

6

ProductsAll of the following products except for the identifier and the MOB allow for 2 variants: OEM Product: A “black box” product which is fully tested and ready to use. Shape and enclosure may vary PCA Module: Fully tested module that can be easily integrated into the customer’s systemSRT also provides technology licenses where completes technologies are sold to the customers for

development and manufacturing. They also offer turn-key product development where they closely work with customer engineers in order to develop a specific product

1- AIS Class AConstantly transmits and receives information from other Class A or B equipped vessels and displays it on the chart plotter

2- AIS Class BCost effective and reliable version of the AIS Class A

3- ReceiverProcesses the outgoing message of the client vessel and decodes incoming AIS messages

4- Antenna SplitterEnables any AIS device and VHF radio to share a single antenna

5- SARTThe AIS SART provided by SRT outperforms the standard SARTS

6- IdentifierEnables water craft of any size and type to be tracked using AIS

7- Aids to NavigationProvides multiples features facilitating the navigation process

8- MOBstandard MOB safety and security device which combines multiple technologies, AIS and Satellite

1

4

2

3

7

8

65

Source: Company Data

7

Market Mandates impacting over 1 million vessels across

the markets of China, Korea, India, Turkey, the US and EU are either underway or are pending

Under the Safety of Life at Sea Convention (SOLAS) introduced by IMO, carriage equipments for approved AIS equipment became mandatory

This requirement only applies to vessels subject to the SOLAS convention. Also, several newly introduced regional and country-specific mandates expanded the AIS carriage requirement. Thus, a larger selection of vessels should now carry approved AIS equipment.

In response, demand for Class B transponders increased

Timing deadline

Vessels impacted

1st July 2002 All vessels of 300 gross tonnage (and more) engaged on international tradeAll vessels of 500 gross tonnage (and more) not engaged on international tradeAll passenger vesselsAll new builds

1st July 2003 Passenger vessels constructed before 1st July 2002Tanker vessels constructed before 1st July 2001

1st July 2004 Tanker vessels of 50k gross tonnage (and more) constructed before 1st July 2002

1st July 2005 Tanker vessels of 10k-50k gross tonnage (and more) constructed before 1st July 2002

1st July 2006 Tanker vessels of 3k-10k gross tonnage (and more) constructed before 1st July 2002

1st July 2007 Tanker vessels of 0.3k-3k gross tonnage (and more) constructed before 1st July 2002

1st July 2008 All other vessels not engaged on international trade1940 1950 1960 1970 1980 1990 2000 2010 2020

0

20

40

60

80

100

120

140

World merchandise exports volumes, 1950-2010

A long lasting increasing trend in global exports will inevitably lead to a higher demand of vessels

This demand, combined with global and regional mandate requirements, could increase demand for approved AIS equipment

Source: World Trade Organization

Source: International Maritime Organization

8

SRT recently tied up a strategic partnership agreement with India-based Elcom Marine Services

Notable customers:

SRT recently signed a $1.25M worth contract with Transas Navigator

In 2011, 3 new customers signed contracts with SRT to use their products in projects they are tendering

In 2007, Wright Designs: co-developing OEM TETRA professional mobile radio

Unimo Technology ordered $60M worth of TETRA handsets

In 2006, SRT signed a TETRA technology license agreement with an established OEM manufacturer in Taiwan

In 2006, SRT, through Tianjin Communication & Broadcasting Group Corporation, received a TETRA handset order from the Chinese Government

CustomersExisting mandates

Estimated no. of units

Timing deadline

Turkey 15,000 2011

European Inland Waterways

25,000 2012

European Fishing 40,000 2013

China 550,000 2015

South Korea 92,000 2013

India 300,000 N/A

Pending mandates

USA 27,000 N/A

Depending on the number of mandate-abiding vessels, the above table reveals a multitude of new potential customers over the next 3 years

Source: Company Data

9

Class A market:

Produces naval radar systems and a wide range of maritime security systems

Mostly engaged in the military sector

The Furuno transponder is called FA-150

The company covers other naval sectors such as fishing and communication equipment

The main focus of SRT lies in the development of products, modules and other technologies used in the establishment of AIS systems. The following are among SRT’s main competitors

SRT is the only company that provides a full range of AIS products. Nevertheless, several other companies provide specific products

CompetitionClass B market:

The company’s transponders called easyAIS

Weatherdock also supplies other AIS products

AMEC offers class A and B transponders (CAMINO) but is mostly specialized in the latter

It also provides a wide range of AIS equipment

Produces the MA-500TR and MXA-5000 transponders

Mostly involved in maritime communication equipment

SRT competitive advantages:

More modern equipment smaller in size

Better performance at lower price

The company provides the full range of AIS products

SRT has invested in research for over 5 years and thus has accumulated better knowledge of the technology

Extensive global network made of 40 customers that provide SRT with unparalleled access to all addressable markets

SRT shortcomings: Smaller firm compared to

some multinational rivals

10

Business ModelFocus on research• SRT has accumulated more than 5 years of

research and development into radio-based wireless technologies

• The company remains heavily focused on R&D. It It continues to invest in R&D with £3m forecast in the next 18 months and a widening of its product range

• SRT’s concentrates its core expertise in developing next generation products lines

• Outsourcing of manufacturing end product

SRT delivers a range of low-cost, high-performance core technology platforms These platforms are subsequently converted into a range of turn-key OEM solutions and

modules that are used in marine identification, digital PMR and tracking markets SRT currently produces a range of 30 products

Extensive distribution network SRT is represented by 40 customers in key

territories for AIS technology Each customer has its own brand and sales

channel, but the technological platforms or key components originate from SRT

The company can therefore efficiently reach markets subject to local mandates

SRT is thus increasingly generating revenue from non-UK companies

On Nov 11th SRT raised £2.5m (gross) via an equity placing for the purpose of expanding working capital in order to address increased AIS demand; subsequent orders grew to total $8.1m (Dec 6th 2010)

Strategy: entering an accelerated sales phase

11

Strategy & Positioning

Remain the leading

provider of vessel

identification and tracking

products based on AIS technology

IP-based product development

•SRT’s product range is based on 4 group-owned IP core modules

•These modules must comply with AIS and International Electro technical Commission standards

> Focus on R&D

Expanding addressable markets & building recurring revenue

•Investment in R&D is estimated at 2.5M GBP p.a. over the next 2 years

> Thus SRT is expected increase its product range and reduce its dependency on the current one

Enhancing distribution

•Through its distribution network, SRT targets territories where AIS mandates have been announced

•It also, benefits its presence in the key market verticals of shipping

> Increase in the distribution network

Product Details

Class A Used in larger commercial vesselsRetail point: 2k-5k USD

Class B Used in smaller commercial and leisure vesselsRetail point: 0.5k-1.5k USD

Receiver Used in non-mandated applicationsRetail point: 0.2k-0.6k USD

2011 product development

2012 product development (E)

Next generation Class B module

Dual mode SAT/AIS transponder

Next generation Class B OEM

MOB (Man over Board) OEM

Class A engine & chart plotter

Tracking safety & security service

Extended range 12W Class B

Identifier

SART and AtoN OEM

Product portfolio snapshot

Product development scheduleSource: Company Data

Source: Company Data, Arbuthnot Estimates

12

Opportunity: AIS is becoming mandatory for global shipping The 2002 International Maritime Organization (IMO) mandate on large vessels has

established AIS as a global technology standard. AIS is currently being deployed, impacting some hundreds of thousands of vessels of all sizes and types

More than 1,000,000 vessels will be affected by the SOLAS convention and other mandates

SRT is established as the leading provider of AIS core technologies and products globally, with two types of AIS as either a module or chipset board; Class A and Class B. It has also recently developed a lower-power version for light vessels such as fishing boats

Although SRT supplies hardware, its core expertise lies in the development of the software required to integrate complex AIS communications and data streams

There could potentially be a worldwide market for some 250,000 Class A large vessels (bulk carriers, dry cargo vessels, container vessels, tankers, LPG's, LNG's, and cruise ships), worth some £84m annually

The market for leisure craft and smaller vessels (Class B AIS) is estimated at a further £45m annually, bringing the total to just under £130m, with ancillary services taking this sum to £155m (DSCE)

Opportunity

13

Simon TuckerChief executive officer

Joined SRT in 2002 Appointed to the Board as

Commercial Director in 2004 and CEO in 2008

Transformed a non-profitable research firm into a lucrative business

Over 15 years experience of creating, building and running international businesses

ManagementRichard Hurd

Chief financial officer Joined SRT in Jan 2009 as

financial controller Appointed to the Board in

Nov 2009 ACA qualified accountant many years of combined

commercial and professional practice experience

Neil Peniket

Chief operations officer Joined SRT in 2004 Responsible for the

delivery of all technology and product developments

Worked in the electronics industry for 12 years

Chartered electrical engineer

Simon RogersChairman Founder investor in SRT Early career in FMCG brand

management and Market Research

Worked as UK Marketing Director of software company Lotus Development

Director of Electronic Media

Andrew Lapping

Non-executive director Member of the SRT plc Audit

Committee and the Nomination Committee

Managing director of The Hamilton Portfolio Limited

Member of the Chartered Institute of Taxation and non-executive director of a number of companies

14

Financial Overview

Balance Sheet as of: March 31 2011, (£m)

ASSETS LIABILITIES

Working Capital 5.132

Cash and Other Equivalents 3.025

Net Working Capital 2.107 Total Liabilities -

Common Stock 0.106

Additional Paid In Capital 17.820

Gross Property, Plant & Equipment 0.294 Retained Earnings (16.225)

Accumulated Depreciation (0.134) Treasury Stock -

Net Property, Plant & Equipment 0.160 Comprehensive Inc. and Other 5.491

Total Common Equity 7.192

Long-term Investments -

Goodwill - Total Equity 7.191

Deferred Charges, LT 1.899

Other Long-Term Assets -

Total Assets 7.191   Total Liabilities And Equity 7.191

Cash Flow Statement as of: March 31 2011, (£m)

Net Income 2.170

Depreciation & Amort. 0.069

Depreciation & Amort., Total 0.069

Other Amortization 0.578

(Gain) Loss From Sale Of Assets -

Asset Writedown & Restructuring Costs -

Stock-Based Compensation 0.103

Net Cash From Discontinued Ops. -

Other Operating Activities (0.008)

Change in Acc. Receivable (1.419)

Change In Inventories (1.016)

Change in Acc. Payable 0.161

Change in Other Net Operating Assets -

Cash from Ops. 0.638

Capital Expenditure (0.105)

Sale of Property, Plant, and Equipment -

Cash Acquisitions -

Divestitures -

Sale (Purchase) of Intangible assets (0.907)

Invest. in Marketable & Equity Securt. -

Net (Inc.) Dec. in Loans Originated/Sold -

Other Investing Activities 0.008

Cash from Investing (1.004)

Short Term Debt Issued -

Long-Term Debt Issued -

Total Debt Issued -

Short Term Debt Repaid -

Long-Term Debt Repaid -

Total Debt Repaid -

Issuance of Common Stock 2.439

Total Dividends Paid -

Special Dividend Paid -

Other Financing Activities -

Cash from Financing 2.439

Net Change in Cash 2.073

Income statement, (£m)

Fiscal year ending 2009 2010 2011 2012 2013 2014 2015

Revenue 2.516 3.558 9.155 12.817 17.302 21.455 24.888

Growth Over Prior Year % 0.152 0.414 1.573 0.400 0.350 0.240 0.160

Other Revenue - - -

Total Revenue 2.516 3.558 9.155 12.817 17.302 21.455 24.888

Cost Of Goods Sold 1.566 2.180 4.725 6.665 8.651 10.298 11.448

Gross Profit 0.951 1.378 4.430 6.152 8.651 11.157 13.439

Selling General & Admin Exp. 2.224 1.876 2.397 2.563 3.460 4.291 4.978

Stock-Based Compensation 0.042 0.022 0.103 - - - -

R & D Exp. - - - - - - -

Depreciation & Amort. - - - - - - -

Other Operating Expense/(Income) - (0.187) -

Other Operating Exp., Total 2.266 1.712 2.500 2.563 3.460 4.291 4.978

Operating Income (1.316) (0.334) 1.930 3.589 5.191 6.866 8.462

Interest Expense - - - - - - -

Interest and Invest. Income 0.033 0.002 0.008 - - - -

Net Interest Exp. 0.033 0.002 0.008 - - - -

Currency Exchange Gains (Loss) - (0.066) - - - - -

EBT Excl. Unusual Items (1.282) (0.398) 1.938 3.589 5.191 6.866 8.462

Gain (Loss) On Sale Of Assets - 0.012 -

EBT Incl. Unusual Items (1.282) (0.386) 1.938 3.589 5.191 6.866 8.462

Income Tax Expense (0.148) (0.166) (0.232) - - - -

Earnings from Cont. Ops. (1.134) (0.221) 2.170 3.589 5.191 6.866 8.462

Earnings of Discontinued Ops. (11.043) - - - - - -

Net Income (12.178) (0.221) 2.170 3.589 5.191 6.866 8.462

15

ValuationInvestment specifications

Entry year 2011

Exit year 2015

Implied investment period 4

Number of shares (in millions) 105.9

Investment (£m) 18.8

Target IRR (%) 20

Enterprise value (entry and exit) 2011 2015

EBITDA (£m) 2.0 8.0

EV/EBITDA 20.4 20.4

EV (£m) 40.8 163.2

Pre/Post-money valuation

Pre-money valuation (£m) 43.8Required equity ownership (%) 30New shares to issue (in millions) 45.4

Updated price per share 0.41

Assumption for comparables: Since the main competitors are private companies, we chose the closest public companies that are considered peers

Valuation ratios SRT

PROFILE SYSTEMS &

SOFTWARE SA

ACTEOS

S.A.

STREAMWIDE S.A.

3L System

Aktiebolag

PE ratio 20.18x 47.01x 7.08x 17.17x 38.80x

EV/EBITDA 21.90x 4.13x 4.58x 7.07x 10.50x

EV/Sales 4.78x 0.63x 0.56x 2.15x 1.04xMarket Cap/Book Value of Equity 6.09x 12.87x 8.69x 71.15x 1.69x

Return on Assets (ROA) 28% 1% 12% 16% 4%

PE ratio EV/EBITDA EV/Sales Market Cap/Book Value of

Equity

0.00x

10.00x

20.00x

30.00x

40.00x

50.00x

60.00x

70.00x

80.00x

SRT

PROFILE SYSTEMS & SOFTWARE SA

ACTEOS S.A.

STREAMWIDE S.A.

3L System Aktiebolag

16

Investment Returns & Sensitivity Analysis

IRR2014 2015 2016

19.4x 34.6% 31.4% 28.3%20.4x 36.4% 32.7% 29.4%21.4x 38.3% 34.1% 30.4%

IRR 2014 2015 2016

19.4x 18.1% 17.9% 17.0%20.4x 19.6% 19.0% 17.9%21.4x 21.1% 20.1% 18.8%

Enterprise Value (£m) SensitivitiesWACC

Terminal

growth rate

13.0% 14.0% 15.0% 16.0% 17.0%2.0% 34.9 31.2 28.1 25.5 23.2 2.5% 36.0 32.0 28.7 26.0 23.6 3.0% 37.1 32.9 29.4 26.5 24.1 3.5% 38.3 33.8 30.1 27.1 24.5 4.0% 39.7 34.8 30.9 27.7 25.0

Enterprise Value (£m) SensitivitiesWACC

Terminal

growth rate

13.0% 14.0% 15.0% 16.0% 17.0%2.0% 18.8 16.8 15.1 13.7 12.5 2.5% 19.3 17.2 15.4 14.0 12.7 3.0% 19.9 17.6 15.8 14.2 12.9 3.5% 20.5 18.1 16.2 14.6 13.2 4.0% 21.3 18.7 16.6 14.9 13.4

Base case Stressed case

2012

E

2013

E

2014

E

2015

E

2016

E

2017

E

2018

E

2019

E

2020

E

2021

E

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0% Operational AssumptionsSales Growth(Base)

Sales Growth(Stress)

EBITDA Margin(Base)

EBITDA Margin(Stress)

Capex(Base)

% S

ale

s

2010

A

2011

A

2012

A

2013

A

2014

A

2015

A

2016

A

2017

A

2018

A

2019

A

2020

A

2021

A-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0Income Statement Forecast

Revenue

EBITDA

Net In-come

£m

17

Legal Structure Dividends: The Series A Preferred Stock will

carry no dividends Liquidation Preference: In the event of

any liquidation, the proceeds shall be paid in the following order :the holder of the Series A Preferred stock. After receiving this Initial Liquidation Amount all the assets will proportionally be distributed among the holders of the Preferred Stock and the Common Stocks.

Redemption Rights: Investors will have the right to redeem from the Company at any point in time.

Conversion: convertible with initial conversion ratio 1:1

Anti-Dilution Provisions: full ratchet anti dilution

Voting Rights: Preferred shares holders and common shares holders are entitled to one vote on all the issues faced by stockholders..

Board of Directors: 6 members, with 3 directors appointed by the holder of the Preferred Stock.

Legal and Financial Structure

Financial Structure Type of Shares: Series A Preferred

Stock Number of Shares: 105.9 million

shares Investor: Sky Partners Ltd (the

“Investors”) Investment Amount: £18.8 million Number of New Shares: 45.4

million shares Price per Share: £0.41 Pre –money valuation: £43.8

million Expected Closing Date: On or

before September 1st 2012 if all conditions are met

18

Source of funds:

Sky Partners investment (£m):18.8 Shareholder loan:12.5 Ordinary equity: 6.3

Sources and Uses of Funds

Uses of funds: Marketing (£m): 0.6 Acquisition (£m): 17.9 Human resources (£m): 0.9

The main uses of the investment capital will be dedicated to the acquirement of the equity. Also, a part of this capital should be used to market SRT products to a wider audience. Finally, an efficient HR network should be established in order to enhance the company’s recruiting abilities and improve its employment management.

19

Assumption50.1% of the company’s shares are in public hands and are traded regularly. For the

purpose of this project, we will assume that the remaining 49.9% are actually 100% of the stocks. We will therefore consider 52.6 of the 105.9 million shares

Shareholders Table

Pre-investment shareholder tableSignificant

shareholdersShares

held%

holding

Simon Rogers

13,508,90

0 25.7

Jonathan Horne

10,746,40

0 20.4

TD Waterhouse Group 7,247,740 13.8Investec Asset Management 5,892,850 11.2

Barclays 5,782,219 11.0

Selftrade 4,743,319 9.0

Gartmore Investment Management 4,700,000 8.8

Total

52,621,42

8 100.0

Post-investment shareholder tableSignificant

shareholdersShares

held%

holding

Sky Partners

22,552,04

1 30.0

Simon Rogers

13,508,90

0 18.0

Jonathan Horne

10,746,40

0 14.3

TD Waterhouse Group 7,247,740 9.6Investec Asset Management 5,892,850 7.8

Barclays 5,782,219 7.7

Selftrade 4,743,319 6.3

Gartmore Investment Management 4,700,000 6.3

Total

75,173,46

9 100.0

Note: If we include the omitted 50.1% of shares, Sky partners will therefore require the issuance of 45.4 millions shares in order to acquire 30% of the company. The outstanding number of shares would therefore be 151.3 million

20

General risks Strong correlation with the underlying market

SRT’s share price may be affected by market conditions regardless of its performance. Specifically, the company shares may be exposed to the state of the technology sector

Risks

Company related risks Dependence on customers

The company relies on key customers in order to produce the final version of their products and are therefore exposed to the customer’s failure to deliver

Intellectual property protection/infringement SRT’s main product is technology which could be easily reversed engineered by another

company in case of failure to protect its intellectual property rights SRT is sensible to infringement of other companies’ patents and may as a result sustain

damaging legal proceedings Overseas customers

The majority of SRT’s client base is located overseas, which exposes the company to foreign policies, local competition and additional costs

Dependence on key executives Some of the current executives of the company are also the company’s founders. Their

departure from the firms may significantly hinder the company’s output

21

Strengths Modern, cost-effective and high-performing

products

Full range of modern AIS equipment

Accumulation of over 5 years of research on the sector

Extended supply network through 40 global customers

SWOT AnalysisWeaknesses Small company with limited production

capabilities

Dependence on customers for finalization of products

Exposure to intellectual property rights and infringement

Overseas customers entailing potential unexpected costs and policies

Opportunities IMO-introduced SOLAS: carrying AIS

equipment mandatory

Also, diverse international and local mandates concerning AIS carriage requirements: nearly 1 million vessels to be affected

SRT’s experience in developing AIS technology places it in an ideal position to supply approved AIS products

Threats Exposure to the performance of the

technology sector as well as technological advancements in the AIS sector

Exposure to unexpected new competition

International risks:

Political (trading policies)

Economical (taxes, other costs)

22

References The SRT and SRT Marine websites World Trade Organization International Maritime Organization SRT admission document, Risk Factors Thomson-Reuters, Bloomberg Competitors websites