PATROMIL partner or competitor in the major acquisition

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PATROMIL – partner or competitor in the major acquisition program of the Romanian Mo.

PATROMIL – partner or competitor in the major acquisition program of the Romanian Mo. D ?

Highlights PATROMIL – the Association: • • • represents the interests of over 200

Highlights PATROMIL – the Association: • • • represents the interests of over 200 Romanian producers, specialized in military technique production of goods, parts and technologies. its affiliate members military production is set up to the NATO requirements, and both civil and military products are made according to ISO-9001 quality standards. represents the Romanian military manufacturers in domestic (government, trade unions) and international relationships (with similar associations around the world).

Highlights PATROMIL – the Association: • • ensures the handling of foreign commercial proposals

Highlights PATROMIL – the Association: • • ensures the handling of foreign commercial proposals to the affiliated Romanian companies, according to their profiles. ensures - every year - the management of the international fairs and exhibitions participation proposals for the interested companies. organises - every 2 years - together with ROMEXPO S. A. and other companies, the international exhibition of military technique EXPOMIL in Bucharest. cooperates with The Romanian Foreign Trade Center for the domestic and international distribution of the "Romania - The Defense Industry" catalogue - updated every 2 years, mainly for the information regarding the companies represented in it.

Main events PATROMIL • • • 2003: Signing the Memorandum of Collaboration with DMA

Main events PATROMIL • • • 2003: Signing the Memorandum of Collaboration with DMA (United Kingdom) 2004: Signing the Memorandum of Collaboration with DMA (Poland) 2006: Adhesion request for ASD (Aero Space and Defence) 2006: Participation of the Annual Convention of ASD 2010: Signing the Memorandum of Collaboration with BDIA (Bulgarian Defence Industry Association) 2010: Signing the Memorandum of Collaboration with Department of Armaments of Romanian Ministry of Defence

Offset/1 – a legal obligation of RMo. D acquisitions programs: – GBDA – SHORAD

Offset/1 – a legal obligation of RMo. D acquisitions programs: – GBDA – SHORAD – V/SHORAD; – Frigates – step 2, – Corvettes; – SCOMAR; – Multi-role aircraft; – MTV – Military Transport Vehicles. • Offset obligations to min 80% of acquisition price; • PATROMIL devised an offset strategy for these programs together with its members

Offset/2 – a legal obligation of RMo. D acquisitions programs Offset/2 – a legal

Offset/2 – a legal obligation of RMo. D acquisitions programs Offset/2 – a legal obligation of The core of this strategy is to offer the cooperation and expertise capabilities of its members : • to develop, manufacture and maintenance and/or repair for hightech military products. • to increase the profit margin of all partners of such offset contracts • to increase the reaction time to specific request of the Romanian Mo. D as technical assistance, up grade, maintenance and/or repair for existing military installations and equipment An example of the results of this strategy is the GAP FILLER Radar contract, a partnership of Lockheed Martin (USA), UTI Systems (private owned company) and ROMARM’s AUTOMECANICA MORENI S. A. (state owned company)

PATROMIL – a reliable partner/1 Strengths - comprehensive knowledge of the Romanian and Regional

PATROMIL – a reliable partner/1 Strengths - comprehensive knowledge of the Romanian and Regional Market in the field of military products / services; best contacts in the Romanian Market for military products / services covers many areas of interest for international military products /services suppliers; expertise in design, engineering, project management, contract management, manufacturing, repair and maintenance of military products Weaknesses - members’ technology level not very competitive, but improving members still state owned companies (SOE) but decreasing through new privatization wave man hour wage / salary package still not attractive for highly skilled & specialized employees (risk of brain drain)

PATROMIL – a reliable offset partner/2 Opportunities - might help solving the legal offset

PATROMIL – a reliable offset partner/2 Opportunities - might help solving the legal offset aspects of your supplying contracts for the Romanian Mo. D profit generating partner both in the Romanian and Regional Market for complex military products / services; through its specialized members, important partner for developing new military products / services specialized association with important NATO members Threats - aggressive development strategies from international military products manufacturers / associations dissolution, due to inadequate financing, mirroring the financial difficulties of many of its members

Conclusions - Every year PATROMIL is strengthening its capacity and level of expertise PATROMIL

Conclusions - Every year PATROMIL is strengthening its capacity and level of expertise PATROMIL through its members might become long term partner in developing highly profitable businesses both in Romania and in the Region PATROMIL’s good knowledge of Central Eastern Europe and its needs (similar for most of the former Warshaw Treaty countries) could be a key for doing business in the Region PATROMIL - YOUR PARTNER OF CHOICE in the major acquisition programs of the Romanian Mo. D and in the Region