Investor Presentation
May 2012
1
Q1 2012: IMS
• Expectations for 2012 as a whole remain unchanged
• Challenging environment from end 2011 has continued into Q1 2012…
• …but more positive trend expected for remainder of 2012
• Investment of additional capacity to meet market/customer demands for 2012 and 2013
• Sales +2% on 2011
• Organic sales declined 4% against stronger 2011 comparatives but on track for medium term
• Increasing demand for smartphones and tablets
• IT supply chain problems still affecting demand for our Thermal solutions
• Telematics/M2M demand has been lower against stronger 2011 comparative
• Ongoing demand for Wireless Automation and Control Solutions
Continued innovation
• Improved operating margin, from cost efficiency
• Well placed to benefit from structural end market growth forecast
• New product launches expected to counteract weaker demand in both divisions
2
Benefit from the breadth of markets we serve
2011 REVENUE £491m
BY PRODUCT SEGMENT* (%)
BY MARKET SEGMENT* (%)
8%
7%
7%
31%
6%
9%
11%
40%
16%
20%
23%
22%
IT/Datacomm
Transportation
EMI Shielding
Telematics/Wireless Modules
Industrial/Medical/Military
Handsets
Thermal
Industrial remote controls (WACS)
Other
Consumer
Other Antennae
Signal Integrity
* excluding Handset Antennae and Mechanisms
3
Delivering on our targets
Targets* for the medium to long-term of:
- Organic revenue growth averaging 10% per annum
- Underlying return on sales margin of 15%
2011 basic underlying EPS expected to be not less than 16 pence
Organic revenue
growth
Return on
Sales
Full year
dividend
2010
28%
10.2%
6.3p
2011
12%
11.9%
8.0p
2012
10.0p
2013
12.0p
* these growth targets do not in any way constitute a forecast of future earnings

4
More hardware
& software combined solutions
“Green”
technologies
More wireless
connectivity solutions
More thermal
management
Increased demand
for EMI shielding
LAIRD –
Innovating in
high-growth
markets
Increasing connectivity
Increasing need for energy management
Delivering on our targets: our opportunity
• Well positioned to benefit from anticipated growth
5
“Internet of things” is Laird’s opportunity
Growing requirement for connected devices for:
Real-time information visibility
Consumption of bandwidth will drive infrastructure spend
Electrical appliances enable to “talk” to each other
Ubiquitous connectivity
M2M and telematics to improve efficiency
6
Benefitting from strong markets but not at expense of others
A different Laird today:
- More breadth in end markets and customers
(largest customer in 2009: 40% of total revenue)
- Breadth provides some resilience
- Can capitalise on areas of strength when other
markets are softer
- Strategy to be in high-growth markets
Investing across all of the business in:
- Our people
- Consistent R&D spend
- Customer relationships
- Capex (within EMI plus rearrangements to allow
provision for/free up other business areas
A balanced growth profile
Current strength in smartphones/tablets in particular; other markets forecast to improve
Smartphones/
tablets
Smartphones/
tablets
Consumer
Consumer
Medical/
military
Automotive
Automotive
Industrial
Industrial
Telecoms
Medical/
military
Telecoms
7
Investment proposition
• Well placed to deliver on targets
• Benefiting from strength of our customer’s key
markets
• Global capabilities
• Breadth and strength reduces operational
risk of over dependence on one market
• In high-growth markets with good prospects
for future growth
• Well positioned to provide an array of
solutions
• Innovation at the heart of what we do
Insatiable demand for greater connectivity will drive Laird forward
8
Our Divisions
9
Performance Materials Division performing well
EMI Shielding
BY PRODUCT SEGMENT*
9%
EMI
26%
• Revenue up 9% YoY
• Strong demand for tablets & smartphones
• Some softer sales in telecoms markets
• Maintaining leading position in market
Thermal
65%
Signal Integrity
Supplying the IT, telecoms, consumer & automotive sectors
Thermal Solutions
2011 REVENUE (£305m)
BY MARKET SEGMENT*
• Revenue up 10% YoY
• Klüver acquisition fully integrated allowing opportunities in medical market
• Strong demand for higher margin advanced thermal solutions offsetting
slower IT sales
Supplying the IT, telecoms, automotive, consumer, medical & military sectors
IT/Datacom
4%
9%
13%
Handset
42%
15%
17%
Industrial/Medical/
Military
Other
Consumer
Signal Integrity
• Revenue flat YoY
• IT & Printer sales slower/weaker
• However good order book for 2012
Transportation
Supplying the IT, consumer & automotive sectors
* excluding Handset Antennae and Mechanisms
10
Our Performance Materials solutions are critical for our
customers and their markets
PERFORMANCE MATERIALS GROWTH DRIVERS
 Increased electronic content in devices requiring more EMI solutions
 More complex heat management required as components get smaller, faster &
more powerful
 Market share gains from new product innovation
 “Green” markets e.g., electric vehicles & charging components, LED market,
rechargeable lithium batteries
 Applications in new emerging market segments
MOBILE PC SHIPMENTS
300
TABLET SHIPMENTS
CAGR 11%
SMARTPHONE SHIPMENTS
Units
(m) 1200
Units
(m) 300
Units
(m) 400
CAGR 45%
1000
CAGR 29%
800
200
600
200
400
100
100
200
0
0
0
2011 2012 2013 2014 2015
Source: iSuppli
2011 2012 2013 2014 2015
Source: iSuppli
2011
2012
2013
2014
2015
Source: iSuppli
11
12
Klüver: Complementary technology in parallel markets
Thermal based compressors
Cascade Series
35 - 60 Watts
Standard
Temperature Differential
Thermal based electrics
PowerCool Series
19 - 193 Watts
Tunnel Series
11 - 39 Watts
Low
Outdoor Cooler Series
100 - 200 Watts
LCS Compressor Based Systems
500 - 20,000 Watts
Chiller Series
15 - 300 Watts
Medium
High
Heat Pumping Capacity
12
Building on our successful acquisitions strategy
Emerson & Cuming acquisition:
• Absorber specialist providing products for
EMI shielding, antennae and high
frequency circuits
• €22.5 million acquisition
• Fits with our EMI strategy to be a market
leader across all product lines
• Allows an opportunity to improve market
share position and offer full shielding
solutions range
• Can leverage Laird’s existing Asian
footprint
PRODUCT LINE
MARKET SHARE
System Level Shields
#1 market position
Board Level Shields
#1 market position
Fabric over Foam
#1 market position
Conductive Fabric
#1 market position
Conductive Elastomers
#2 market position
Absorbers
#8 market position
13
Strong growth in the Wireless Systems Division
Telematics / M2M
BY PRODUCT SEGMENT*
Telematics & "M2M"
17%
WACS (Cattron)
24%
59%
Infrastructure & other
antennae
• Revenue up 25% YoY
• Strong Auto sales in North America & demand from asset tracking
• New contracts with 1 of Big 3 car makers
• Product development in commercial wireless modules (hardware +
software)
Supplying the automotive, infrastructure & retail sectors
Wireless Automation & Control Solutions
2011 REVENUE (£186m)
BY MARKET SEGMENT*
14%
Supplying the rail, industrial & mining sectors
Transportation/
Automotive
5%
Industrial
54%
27%
• Revenue up 23% YoY
• Strong demand from rail & mining customers
• CattronConnect™ & CattronControl™ launched, solutions combining
hardware & software
IT/Datacom
Other
Infrastructure Antennae
• Revenue 4% lower YoY
• Good demand for mobile radio solutions in public safety markets
• Softer demand in wireless provider market but increase expected from
infrastructure programmes
Supplying the infrastructure, municipal, telecoms/data & security sectors
* excluding Handset Antennae and Mechanisms
14
Demand for increased connectivity driving the demand for
advanced Wireless Systems solutions
WIRELESS SYSTEMS GROWTH DRIVERS
 Continuing increase in wireless connectivity expected to drive demand for our
technologically advanced antennae & wireless products
 Opportunities from:
- “Green” markets e.g., smart meters
- intelligent transportation systems & in-car infotainment
- public infrastructure & safety
- wireless M2M: medical, industrial & energy
 Requirements for higher margin, complete solutions
BLUETOOTH & GPS SHIPMENTS
Units
(m) 2,000
1,500
GPS
CAGR
BLUETOOTH 8%
GPS 20%
Bluetooth
GLOBAL EMBEDDED TELEMATICS SHIPMENTS
Units
(m) 30
25
WLAN SHIPMENTS
Units
(m) 2,000
CAGR 36%
CAGR 16%
1,500
20
1,000
1,000
15
10
500
500
5
0
0
0
2011 2012 2013 2014 2015
Source: Prismark
2011
Source: TRG
2012
2013 2014
2015
2011 2012 2013 2014 2015
Source: Prismark
15
Building on our successful acquisitions
Summit Data Communications
acquisition:
• Designer of non-cellular WLAN
M2M modules for wireless
connectivity used in harsh radio
frequency environments
• $22 million acquisition ($8 million
performance related earn out in
2014)
• Builds on our strategy in M2M to
move up the value chain
• Good growth prospects for noncellular M2M market
16
Financials
17
Margin trajectory model
Economies of scale from organic revenue growth
Rev
133
• No change in product mix
Rev
100
I N D E X
ASSUMPTIONS
• 70% of costs variable, 30% fixed
• Variable moves with revenue, fixed with
inflation
IO
31
IO
26
MODEL OUTPUT
PBIT
20
PBIT
12
12.0%
•
Profit drop through 25% on incremental
revenue
• Revenue growth >30%; PBIT growth >60%
RoS
15.0%
REV: Revenue
IO: Indirect overheads
PBIT: Profit before interest & tax
18
Performance Materials Division – revenue bridge
$m
400
EMI
300
+9%*
+9%*
+16%*
0%*
$16m
Klüver/
Thermal
SIP
$490m
$9m
Thermal
200
100
0
2008 2009 2010 2011
$m
140
120
Thermal
100
$27m
EMI
$438m
80
60
40
20
0
2008 2009 2010 2011
$m
50
• Organic revenue growth* of 9%
Signal Integrity
Products
40
30
• Smartphones and tablet shielding principal driver of EMI growth
20
• Thermal solutions for Telecoms base stations, a principal driver of Thermal growth
10
0
2008 2009 2010 2011
* year on year growth in US$ including organic growth of acquired businesses
19
Wireless Systems Division – revenue bridge ($m)
$m
200
Telematics / M2M
160
120
80
+23%*
$299m
40
0
2008 2009 2010 2011
+25%*
(4%)*
$63m
WACS
$m
80
Infrastructure
Antennae
60
$203m
$35m
TELE/M2M
$(2)m
IAS
40
20
0
2008 2009 2010 2011
$m
80
• Organic revenue growth* of 18%
• Telematics winning market share with customers who are themselves taking
market share
• WACS later into the last recession and later out
Wireless Automation
& Control Solutions
(Cattron)
60
40
20
0
2008
* year on year growth in US$ including growth of acquired business
2009
2010
2011
20
Strong cash conversion
£ millions
Full Year
Full Year
2011
2010
Operating profit
59.4
46.4
Depreciation
17.0
19.3
Amortisation of capitalised development
6.4
8.3
Other and non-cash
1.3
1.0
84.1
75.0
Decrease / (increase) in working capital†
(0.3)
(6.6)
Capitalised development
(9.1)
(9.5)
Capital expenditure
(12.0)
(17.7)
Operating cash flow
62.7
41.2
• Excellent operating cash flow performance
• Cash conversion of 106% (2010, 89%)
† after adjusting for creditor increases on exceptional items of £1.0m at 31 December 2011
21
Healthy financial position
£ millions
31 December
31 December
2011
2010
Shareholders’ equity
440.4
574.9
Net borrowings
117.7
103.6
Capital employed
558.1
678.5
† Interest cover (covenant basis)
10.0
8.0
†† Net borrowings / EBITDA
1.4
1.4
• Committed loan finance with ample headroom
• Net borrowings/EBITDA of 1.4 times, 39% of maximum permitted
† minimum of 3.0 times required by Group’s loan facilities (2010, 2.5 times)
†† maximum of 3.5 times required by Group’s loan facilities
22
Our Products
23
EMI: broad product portfolio
#1 player in niche markets
High level of customisation
Offer broad/widest product range
Metallised patented
fabric over foam gaskets
Electro-Seal conductive
elastomers
Beryllium-Copper
high-precision fingerstock
Custom metal board
level shields
24
EMI: product life cycle
The value-add we provide comes from our process know-how:
Reliability
Technical
expertise
Design-in,
either with or
for customer
In-house
material
scientists
Global logistics
network
PROCESS
KNOW-HOW
Test labs
Broad
capabilities
Customised for
each
application/
customer
Rapid
prototyping
abilities
World-class,
high-speed
precision
tooling
Speed of
response
25
Appendix
28
2002 – 2011 Organic Growth
Revenue $ million
Organic
growth
Acquired
revenue
2011 FY
revenue
321
789
Base
revenue
340
128
EMI
2002
2011
• Average organic revenue growth through the cycle of 10% per year
*excluding Handset Antennae & Mechanisms
29
Segmental analysis in £ and US$
Actual
2011
£m
Actual
2010
£m
%
Actual
2010
$m
%
Δ
Actual
2011
$m
Revenue
305.0
282.8
+8%
489.5
437.5
+12%
Operating profit†
43.0
38.8
+11%
69.0
60.0
+15%
Revenue
186.3
130.9
+42%
299.1
202.5
+48%
Operating profit†
22.7
10.3
+120%
36.4
15.9
+129%
(7.3)
(6.8)
(11.7)
(10.5)
Revenue
491.3
413.7
+19%
788.6
640.0
+23%
Operating profit†
58.4
42.3
+38%
93.7
65.4
+43%
Revenue
94.7
153.7
-38%
152.0
237.8
-36%
Operating profit†
1.0
4.1
-76%
1.6
6.3
-75%
Revenue
586.0
567.4
+3%
940.6
877.8
+7%
Operating profit†
59.4
46.4
+28%
95.3
71.7
+33%
Δ
Performance Materials (PM)
Wireless Systems (WS)
Unallocated costs
Total continuing
Discontinued businesses
Total
†
30
before exceptionals, amortisation of acquired intangibles, gain or loss on disposal of businesses and acquisition transaction costs