Sepura plcPreliminary ResultsYear ended 31 March 2010

© Sepura plc 2008

Agenda

� Financial Review: Delivering on expectations

� Operational Review: Maximising TETRA

� Strategic Review: Doubling our addressable market

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� Strategic Review: Doubling our addressable market

� Conclusion and Outlook

� Q & A

Financial ReviewDelivering on expectations

Stephen MoleCFO

© Sepura plc 2008

HighlightsContinued strong performance in a difficult market

� 154,000 radios delivered – up 23%

� EMEA market share increased to 45%

� 6% increase in revenue

� £2.3m reduction in cash operating costs

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� £2.3m reduction in cash operating costs

� 2% increase in adjusted EPS

� Dividend held at 1.27p for year

Revenue 74.1 78.9 +6%

Gross profit 38.9 36.3 -7%

Gross profit margin 52.5% 46.0%

Operating costs (*) (25.9) (26.7) +3%

Operating profit (*) 13.0 9.6 -26%

Operating profit margin (*) 18% 12%

Profit before tax (*) 12.5 9.4 -25%

Income Statement Summary%age

£m FY09 FY10 change

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Profit before tax * 12.5 9.4 -25%

Profit after tax (*) 10.5 8.5 -19%

Tax rate (*) 16% 9%

Fully diluted EPS (*) 7.6 p 6.2 p -18%

Proposed dividend 1.27 p 1.27 p -

Excluding capitalisation of R&D and IFRS2

Adjusted operating profit (*) 7.9 7.5 -5%

Adjusted fully diluted EPS (*) 5.0 p 5.1 p +2%

(*) 2009: Excluding non-recurring costs of £2.5m

53% 52% 47% 45%

Revenue

74.1 78.9

Revenues +6% despite economic climateSignificant increase in volumes in competitive environment

+ 6% FY0952.5%

FY1046.0%

Gross margin

£M

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H1 H2 H1 H2

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H1 H2 H1 H2

� Margin impacted by

1% FX: € costs increased for UK 1% Increasing %age of overseas sales

Product and customer mix4.5% Volume discounts

Geographical pricing / sourcing

� Action taken

� Chinese manufacturing increasing� Ongoing product design and cost reduction � Lower-cost sourcing

FY 09 FY 10FY09 FY10

Units 125.5K 154.0K +23%

ARPUS £591 £512 -13%

� > £1m revenues from 13 countries (FY09: 11)

Research & Development costs

Cash Spend

Research & Development: Delivering more from less Targeted investment in growth now underway

£15.3m £13.5m

� Broadening our product portfolio

� Extended STP8000 product family

� Software for UK baseline / Germany

� “Man down” functionality

- 12%

Investment during the year

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% revenue 20.7% 17.1%

FY09 FY10

£11.3m£10.0mP&L Charge

� P&L charge nearing cash spendas amortisation increases

� Amortisation: £7.9m (2009: £5.6m)

� Capitalisation: 75% (2009: 71%)

� 14% of revenues (2009: 14%)

General overhead costs

Administrative

General Overheads: Delivering more from lessTargeted investment in growth resources now underway

£6.5m £6.4m

- 3%

� Extending our routes to market

� New office opened in SE Asia

� Sales resources added in China,

Americas, Middle East, Benelux

£15.9m £15.4m

Investment during the year

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% revenue 21.4% 19.5%

FY10

£9.0m£9.4mSelling / Marketing

� Simplifying operations to deliver more

� Simplified supply chain

� Improved customer service and support

(*) 2009: Excluding non-recurring costs of £2.5m

(*)FY09

Cash Flow Summary

EBITDA (*) 20.8 19.7 -5%

Working capital (*) (1.5 ) (8.8 )

Other 0.3 -

Operating cashflow (*) 19.6 10.9 -45%

Capitalised R&D costs (10.9 ) (10.1 )

Operating capex and IPR buy-out (2.9 ) (1.4 )

Tax paid - -

%age£m FY09 FY10 change

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Tax paid - -

Cash inflow (outflow) before net financing outflows (*) 5.8 (0.6 )

Loan principal / net interest / lease (3.7 ) (3.2 )

Dividend paid (1.7 ) (1.7 )

Cash generated (utilised) (*) 0.4 (5.5 )

(*) Excluding FY09 non-recurring costs of £1.3m, of which £0.2m was

settled in FY09 and £1.1m settled in FY10

Balance sheet remains strong with net current assets of £24m

Net cash £1.7m Stock turn 9 Creditor days 73Debtor days 72

Operational ReviewMaximising TETRA

Gordon WatlingCEO

© Sepura plc 2008

� How can we maximise the return from TETRA?

� What further value can we extract from the overall PMR market?

My first 18 monthsAnswering 3 key questions

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� How can we utilise our core competencies to deliver that value?

2.5

31.2

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Investing in growth

My first 18 monthsTransforming the business, investing in growth

Cash costs (£M)

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27.6

28.9

0.80.3 0.7

0.4 0.231.2

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FY09 R&D S&M Admin R&D S&M Admin FY10

12

Delivering more from less

16 % 5%9%

Delivering on expectationsMaximising the TETRA opportunity

Objectives Progress

1 Increase market share 45% market share in EMEA (*)National framework wins in Portugal and LithuaniaMarket-leading position retained in UK and Germany

2 Grow International footprint

Sales to 72 countries5 new geographiesFirst substantial wins in China

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(*) Based on IMS total shipment data for EMEA (including UK)

3 Market-leading products, Broadest product range

STP8000 hand-held radio leading marketSTP8100/8200 mid- and low-tier products launchedSoftware and hardware functionality added

4 Win add-on and replacement business

18 UK replacement customers took 21k radiosAll customers retained4 UK police forces transferred fleets from competitors

5 Maintain highgross margins

Dedicated accessories team focused on marginNew products designed for lower price points

European Public Safety markets have been resilientSigns of improved funding outside core European markets

FY10 Units

shipped

New national networks

� Portugal 17,000� Lithuania 2,500

National roll-outs in progress

� Germany 41,000� Italy 4,000

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� Italy 4,000

UK

� Refresh 21,000

� Other customers 13,000

Major new regional networks

� China 9,000� Pakistan 10,000� Angola 3,000

Germany is now our largest marketMarket-leading position maintained as roll-out continues

First Expectedawards users(units) (units)

1 Niedersachsen 5,300 50,000

2 Bremen 2,800 4,100

3 Sachsen-Anhalt 18,000 20,000

5 Baden-Württemberg 17,000 60,000

6 Bayern 8,000 60,000

7 Saxony 30,000 30,000

9 Hamburg 10,000 10,000

10 Nordrhein-Westphalia 30,000 100,000

14 Saarland 3,000 3,000

1

3

2

4

10

9

1213

17

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14 Saarland 3,000 3,000

SEPURA 124,100 337,100

4 Berlin 20,000 20,0008 Thüringen 5,500 20,000

11 Bund 53,000 53,000

12 Schleswig Holstein 5,000 19,000

13 Mecklenburg-Vorpommern 10,000 10,000

Other 93,500 122,000

15 Rheinland-Pfalz - 40,000

16 Hessen - 40,000

17 Brandenburg - 20,000 - 100,000

Total 217,600 559,100

56

10

78

16

15

14

Broadening our product portfolioExciting new products to address specific customer needs

Colour console and SRG3900 Portables

STP8100

� Reduced functionality

� Reduced hardware

� Same robust chassis, power output and high

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� Gateway and Repeater functionality

� High resolution colour display

� STP “look and feel”

power output and high quality audio

STP8200

� No SD memory card

� Basic User Interface

� Smaller monochrome screen

8

12

16

Improving development productivityWe are delivering more, faster, for less

� Investing in future growth

� Designing new products� Developing new software functionality� Expanding our accessories suite� Future-proofing our platform

� Maintaining our portfolio

£M

33%41%

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4

FY09 FY10

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� Maintaining our portfolio

� Value engineering to reduce product costs� Improving factory quality and throughput

� Management and fixed costs

� Professionalising project management� Demanding business cases for investment

59% 67%

Management and fixed costs

Maintaining our portfolio

Investing in future growth

� Continued strong performance in a difficult market

� Increased volumes driving increased market share

� TETRA leader in EMEA

� TETRA leader in public safety

� Installed base of over 600,000 radios delivering annuity business

Cost base realigned

Maximising our return from TETRAWe have strengthened our core business

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� Cost base realigned

� Positioned to deliver growth and improve operational leverage

� Further investment in routes to market to address new markets

� Broadened our product portfolio

Strategic ReviewDoubling our addressable market

Gordon WatlingCEO

© Sepura plc 2008

� The overall PMR market is worth $9Bn per annum

� The $9Bn is split across� Technologies Analogue and digital� Value chain Infrastructure, control centres, terminals, software, services� Users Public safety, commercial, consumer

� We supply TETRA terminals predominantly to public safety users

� Our core competencies can be applied to more of that market

Our strategic reviewIdentifying new markets to generate scale and margin

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� Our core competencies can be applied to more of that market

� Our deep knowledge of digital communication standards

� Our thorough understanding of world-wide PMR customers

� Our strong brand and reputation

� Our established global routes to market

� Our agile and efficient supply chain

15

20

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Analogue

The Private Mobile Radio market drives to digitalTETRA continues to be the dominant digital standard

� TETRA: 10+ years of future growth

� Largest digital installed base� New networks being deployed� New users joining networks� Users replace multiple times

� Public Safety users’ preferred solution

World-wide installed base of PMR radios

(millions of units)

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0

5

10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DMR

TETRA

P25

TETRAPOL

� DMR: The commercial user’s solution

� A TDMA-based ETSI standard� Lacks TETRA’s public safety features� Significantly cheaper infrastructure� DMR will be a viable market for Sepura

from 2013

Source: Independent research for Sepura Plc

Commercial users do not need public safety functionality They want simple infrastructure and rugged, reliable radios

TETRAPublic Safety

DMRCommercial

Network complexity Trunked Untrunked

Geographical coverage National Campus

Call volume capacity High Low

Radio volume capacity 500,000 users +50 users

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Radio volume capacity 500,000 users +50 users

Inter-agency / cross border interoperability

�������� ��������

InfrastructureMultiple BTNsControl centres

Single repeater

Infrastructure cost High Low

Procurement process Lengthy tender Quick decision

Ease and speed of implementation Difficult / slow Easy / quick

DMR is a significant opportunity that plays to our strengthsWe will deliver DMR through our core competencies

� Applying our existing TDMA expertise

� DMR utilises TDMA, a core Sepura expertise(and a barrier to entering the TETRA and DMR markets)

� Exploiting our know-how, brand and reputation

� We understand users’ needs across the entire PMR market

� Sepura is a highly respected brand within PMR

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� Utilising our established routes to market

� We will be satisfying demand pull from our existing world-wide channel

� DMR is an open ETSI standard with no geographical restrictions

� Sourcing from our existing supply chain

� Significant component commonality

� Our outsourced manufacturing model can scale up as required

DMR enables us to double our addressable marketAn opportunity to generate significant incremental earnings

� Unlocking additional value from our existing TETRA business

� DMR will generate significant synergies with our current business model

� DMR is highly complementary to our focus on being ‘1st in TETRA’

� We will fund DMR product development within our existing guidance

� Achieving scale through our existing cost base

� We can deliver additional volumes with limited incremental overheads

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� We can deliver additional volumes with limited incremental overheads

� Purchasing leverage from additional volumes of components for a common platform

� Diversifying our revenue streams and improving earnings visibility

� Simpler selling proposition with multiple smaller purchasing decisions

� Independent from large-scale infrastructure procurement cycle

Conclusion and OutlookGordon WatlingCEO

© Sepura plc 2008

� Short-term economic uncertainty remains

� TETRA

� Market drivers remain strong

� Core business strengthened

� Increasing scale and installed base

� DMR

Conclusion and outlook

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� DMR

� Low risk strategy exploiting core competencies

� Internally funded from existing resources

� We remain confident of the long-term outlook

Q & A

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Appendices

© Sepura plc 2008

� Design, Develop, Sell, Own IP

� Employees

— 3053 employees

– 173 in R&D

– 75 in sales, marketing, customer support and repairs

– 57 in manufacturing support and HQ

� Leading Market Position with 26% Share in 2008 4

— One of the three largest TETRA radio terminal suppliers which had a combined market share of 93% in 2008

Overview of Sepura

� What

— TErrestrial Trunked RAdio

— Defined by ETSI and based on GSM

— Global standard for digital Private Mobile Radio (“PMR”) communications1

— Network independence

� Features

— Newer than GSM, offers cellular-like features

— Plus PMR and data features

Overview of TETRA

Brief scene-setting on TETRA and Sepura

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� Broadest Product Range

— Handheld radios, vehicle radios, specialist radios (e.g. surveillance), accessories and support tools

� Production

— Manufacture of radios is outsourced to Siemens and TCB

� Distribution

— Sell directly and via global network of 90 distributors

� Experienced Management Team and Balanced Board

— Senior management has combined 200+ years of experience

— Highly experienced and diverse Board

1 Outside of North America2 Based on TETRA radio terminal installed base (excluding PAMR) in 2008

— Plus PMR and data features

� Why

— Analogue radio systems globally need to be replaced

� Where

— Deployed in 44 of the top 50 countries by GDP

— Adopted as the standard for Europe and then throughout most of the world (like GSM)

� Who

— Public safety users are ~ 68% of all TETRA users in 2008 2,4

— Remaining users in commercial sectors (e.g. transport)

3 As at 31 March 2010. 4 Source: The Worldwide Market for TETRA Terminals, 2009 Edition (IMS)

Balance Sheet Summary

Property, plant and equipment 4.3 4.2 3.2

Intangible assets (capitalised R&D / deferred tax) 25.1 25.8 27.1

Total non-current assets 29.4 30.0 30.3

Trade and other receivables 21.4 19.4 33.7

Inventories 10.2 9.0 6.6

Cash and cash equivalents 15.8 12.1 9.1

Trade and other creditors/accruals/provisions (24.4) (17.7) (22.4)

Borrowings repayable <1 year (3.0) (3.0) (3.0)

£m 31 March 2009 30 Sept 2009 31 March 2010

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Borrowings repayable <1 year (3.0) (3.0) (3.0)

Net current assets 20.0 19.8 24.0

Borrowings repayable >1 year (7.4) (5.9) (4.4)

Other non-current liabilities (6.2) (6.8) (6.6)

Net assets 35.8 37.1 43.3

Share capital 0.1 0.1 0.1

Retained earnings 35.7 37.0 43.2

Total shareholders’ equity 35.8 37.1 43.3

Net cash (after deducting borrowings) 5.4 3.2 1.7

Maximising TETRA’s potentialMultiple revenues repeated over the 20 year life of a network

Replacement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Handheld radio 5 years

WarrantyAnnually

Batteries

Consumables Annually

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Software, training As required

Batteries c. 18-24 months

Speaker mics / headsetsc. 18 - 24 months

The installed base drives future accessory revenues

We have over 600,000 radios in use world-wide

The Private Mobile Radio market is worth $9Bn paSepura provides TETRA terminals for public safety users

STANDARDS

TETRAOther digital Analogue

Infrastructure

Terminals

VALUE CHAIN

Value chain

� Equal split:� Infrastructure� Terminals� Other (control rooms, services,

applications)

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Commercial

Consumer

Public safety

Other

VALUE CHAIN

Communication standards

� TETRA� Other ETSI standards� Proprietary standards

End user markets

� Market segmentation emerging� Commercial customers looking for

lower feature alternatives with lowercost infrastructure

Core competencies enable expansion into adjacent marketsTDMA expertise and deep knowledge of PMR markets

STANDARDS

TETRAOther digital Analogue

Infrastructure

Terminals

VALUE CHAIN

Potential Development Paths

Strengthening our core business

� Improve share in key geographicmarkets and customer segments

� Grow position in niche products� Improve and extend our

accessories offering

A

AAA

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Commercial

Consumer

Public safety

Other

VALUE CHAIN

A

Expanding across the value chain

� Develop new products / features

B

A

Expanding into adjacent PMR standards

� Grow position in commercial markets through offering alternative standards

C

A

Developing our product portfolioTailored products to address specific markets

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Future Financial Calendar

� Final dividend FY11

� Ex-dividend 14 July 2010

� Record date 16 July 2010

� Payment due date 13 August 2010

� Q1 Interim Management Statement 21 July 2010

� FY11 Year end 31 March 2011

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� FY11 Preliminary results announcement June 2011

Other Information

� Lock in arrangementsDirectors and Senior Management have a phased lock-in which ends in August 2010.

� TaxNo material corporation tax is expected to be payable for the years ending 31 March 2007 to 31 March 2010 due to the availability of tax losses arising from the exercise of options under the EMI Option Scheme.

� Dividend policyUp to 20% of profit, 1/3 interim and 2/3 final.

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Up to 20% of profit, 1/3 interim and 2/3 final.

Principal Risks And Uncertainties

� Contract delaysThe timing of customer orders, and therefore revenue, is influenced by a number of factors, including governmental investment decisions which may be affected by changes in political and economic conditions. This impacts our ability to accurately forecast the exact timing of future revenues.

� Failing to achieve market penetrationOur strategy is dependent on our ability to secure a market-leading position in the significant TETRA markets. If we are unable to develop appropriate relationships with distributors and customers in emerging markets then this could reduce the likelihood of us securing such a position.

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� Technological changeWe make significant investment in new product development, based on demand from customers for additional products and features. We therefore face associated risks relating to delays and cost overruns in the development process, and the possibility that these features are developed by our competitors before us.

� CompetitionThere is strong competition in the markets in which we operate, particularly in relation to government procurement tendering processes which rely on a combination of technical performance and price. We have a high-quality product range, a reputation for customer service and a programme to reduce product costs which mitigates the impact of changes in the competitive landscape.

TETRA Market Research

� An independent report is available from IMS Research, providing detailed coverage of the worldwide TETRA and LMR markets

� Please contact Patrick Connolly, LMR Research Director, IMS Research, phone +44 (0)1933 402255, email patrick,connolly@imsresearch,com,

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