Slide 1: TT Electronics Half Year Results 2025
TT ELECTRONICS HALF YEAR RESULTS 2025 © TT Electronics 1
Slide 2: Eric Lakin, CEO
ERIC LAKIN, CEO © TT Electronics 2
Slide 3: Significant Progress in the First Half
SIGNIFICANT PROGRESS IN THE FIRST HALF ▪ Good European performance, driven by strong growth in Aerospace & Defence, offset by challenges in North America and some order delays for our Asia business ▪ Significant progress on operational turnaround • Strategic review of components business now under s
Slide 4: Components Strategic Review
COMPONENTS* STRATEGIC REVIEW 1) Separate management oversight • given a distinct operating model TT Inventory in distribution channel • to drive improved performance with appropriate volume and overhead recovery 2) Evidence of market stabilising 3) Performance improvement measures • Decisive action
Slide 5: Cleveland Improvement Plan Delivering
CLEVELAND IMPROVEMENT PLAN DELIVERING ▪ Operational efficiency Productivity 2025 YTD ▪ Consistently improved productivity ▪ Reduced scrap and re-work ▪ Headcount down 17% from start of 2025 ▪ Improved commercial terms Jan Feb Mar Apr May Jun Jul ▪ Comprehensive balance sheet review completed, with £
Slide 6: Financial Review
FINANCIAL REVIEW RICHARD WEBB, INTERIM CFO © TT Electronics 6
Slide 7: Group Financial Performance
GROUP FINANCIAL PERFORMANCE £m HY 2025 HY 2024 Change restated (except where stated) Revenue 237.9 273.3 (13.0)% Revenue (organic) 237.9 253.1 (6.0)% • 6.0% organic revenue decline, 4.3% decline excluding Plano Operating profit (organic)* 13.0 18.5 (29.7)% • Operating profit down 29.7% on constant c
Slide 8: Group Revenue Bridge
GROUP REVENUE BRIDGE Strong Aerospace & Defence growth in Europe Plano decline £4.5m and volume reduction in Cleveland Asia impacted by some order delays Organic (6.0)% © TT Electronics 8
Slide 9: Group Adjusted Operating Profit Bridge
GROUP ADJUSTED OPERATING PROFIT BRIDGE Strong operational gearing in Europe Plano operating loss of c£3.5m H1 Cleveland performance (turnaround plan in place) Asia impacted by some order delays Organic (29.6)% © TT Electronics 9
Slide 10: Strong Cash Conversion and Debt Reduction
STRONG CASH CONVERSION AND DEBT REDUCTION £m HY 2025 HY 2024 • Strong H1 cash conversion (except where stated) • Net debt (excl leases) reduced to £73m, down Cash conversion 135% 35% £36m since H1 24 and £7m since Dec 24 Free cash flow 6.4 (7.8) • Cash generation reflecting disciplined focus on work
Slide 11: Cash Conversion
CASH CONVERSION £m H1 2025 H1 2024 restated £0.9m working capital inflow Adjusted operating profit 13.0 19.0 Depreciation and amortisation 6.7 7.4 • Good progress on underlying inventory (3.1) (3.1) reduction initiatives delivering £5m in H1 Net capital expenditure Capitalised development expenditur
Slide 12: End Market Revenue
END MARKET REVENUE £m Change HY 2025 HY 2024 (organic) Aerospace & Defence 73.3 65.7 12% Automation and Electrification 73.3 85.6 (14)% Healthcare 54.9 58.2 (6)% Distribution 36.4 43.6 (17)% Total 237.9 253.1 • Strong A&D revenue growth reflecting an increase in budgets for defence spend and improvi
Slide 13: Europe – Continuing Momentum
EUROPE – CONTINUING MOMENTUM £’m HY HY 2025 2024 Change ▪ HY revenue up 5% organically Revenue (organic) 68.5 65.3 5% ▪ Adjusted operating profit up 34% organically and margins Revenue 68.5 77.1 (11)% up 330 basis points 10.7 8.0 34% ▪ Much improved performance driven by operational Adjusted operati
Slide 14: North America – Action Taken
NORTH AMERICA – ACTION TAKEN HY HY £’m 2025 2024 Change ▪ Good revenue growth in Kansas offset by decline restated predominantly in our components business. Organic Revenue (organic) 83.2 92.7 (10)% revenue decline 5.8% if excl. Plano Revenue 83.2 94.4 (12)% ▪ Margin impacted by Plano and Cleveland
Slide 15: Asia – Transitional Year
ASIA – TRANSITIONAL YEAR £’m HY HY ▪ Performance reflects some order delays due to 2025 2024 Change geopolitical and related uncertainties Revenue (organic) 86.2 95.1 (9)% ▪ Opportunity for regional sales growth given ongoing Revenue 86.2 101.8 (15)% tariff uncertainty ▪ FY revenues slightly H1 weig
Slide 16: Working Capital Evolution & Balance Sheet De-risking
WORKING CAPITAL EVOLUTION & BALANCE SHEET DE-RISKING ▪ Working capital as a % of revenue decreasing in H1 ▪ Balance Sheet de-risking: ▪ Comprehensive balance sheet review conducted at Cleveland, resulting in a non-cash restructuring charge of £5.7 million ▪ June 2025 Group inventory balance reduced
Slide 17: Confidence for H2
CONFIDENCE FOR H2 ▪ Overall group revenue slightly H2 weighted ▪ Last time buys into Plano in H2, and Cleveland operational improvements, contribute towards H2 profit weighting ▪ End market weakness for certain customers in Asia is factored into H2 guidance ▪ Board expects adjusted operating profit
Slide 18: Eric Lakin, CEO
ERIC LAKIN, CEO © TT Electronics 18
Slide 19: First Take Strong Market Position
FIRST TAKE STRONG MARKET POSITION ▪ Short term priorities ▪ Complete the fix of operational issues ▪ Complete components business strategic review ▪ Restore confidence and deliver on our commitments ▪ Re-organisation of the Executive team ▪ Focus on structural growth end markets ▪ Deep domain produc
Slide 20: Blue Chip Customers Long Term Relationships
BLUE CHIP CUSTOMERS LONG TERM RELATIONSHIPS Healthcare Aerospace & Defence Automation & Electrification © TT Electronics 20
Slide 21: Long Term Customer Collaboration Through Lifecycle
LONG TERM CUSTOMER COLLABORATION THROUGH LIFECYCLE © TT Electronics 21
Slide 22: Expanding TT Technology & Capabilities
EXPANDING TT TECHNOLOGY & CAPABILITIES Vertical Integration Capability Investing for the future Silver sintering – silicon carbide ▪ Silver sintering is a key technology for TT and our strategic growth plan ▪ Investment in a silver sintering line enables us to develop next generation SiC power modul
Slide 23: TT Technology Investing for the Future: Future Aerospace Building Blocks
TT TECHNOLOGY INVESTING FOR THE FUTURE : FUTURE AEROSPACE BUILDING BLOCKS For High Voltage DC Electrical Power Systems Modular design for High-Voltage efficiency for Reliable power for accelerated development optimised performance uncompromising altitude • Significantly reduced development • Reduces
Slide 24: Outlook
OUTLOOK ▪ Two important strategic decisions taken to improve future financial performance: ▪ Components strategic review including Plano closure ▪ Cleveland improvement plan delivering improved performance ▪ North America is expected to show a return to profitability in H2, though will still be loss
Slide 25: Q&A
Q&A © TT Electronics 25
Slide 26: Financial Guidance for 2025
FINANCIAL GUIDANCE FOR 2025 Revenue Capital and development expenditure ▪ FX headwind vs 2024 circa -2% ▪ Capex and devex circa £10-13m Working capital Profit ▪ Broadly flat ▪ FX headwind vs 2024 circa -3% Adjusting items cash spend ▪ £2-3m on Plano closure in FY25 Interest ▪ c£2m on other items ▪ C
Slide 27: High Level Site Review
HIGH LEVEL SITE REVIEW Revenue CAGR (x axis) 2023 to 2025 vs operating margin % (y axis) average of 2024 to 2025 Bubble diameter reflects FY25 site revenue Cleveland Revenue (decline)/growth (2023-25 CAGR) Operating Margin (2024-25 avg.) Plano © TT Electronics 27
Slide 28: The TT Electronics Business
THE TT ELECTRONICS BUSINESS Underlying operating profit (HY 25) Europe 82% North America (38)% Asia 88% Central costs (32)% Revenue (HY 25) Revenue by end market (HY 25) Europe 29% Healthcare 23% North America 35% Aerospace & Defence 31% Asia 36% Automation & Electrification 31% Distribution sales c
Slide 29: Revenue by Market and Geography
REVENUE BY MARKET AND GEOGRAPHY Europe North America Asia Revenue by market (%) Revenue by market (%) Revenue by market (%) Healthcare 1% Healthcare 17% Healthcare 47% Automation & Electrification Automation & Electrification Automation & Electrification 14% 26% 49% Aerospace & Defence 68% Aerospace
Slide 30: Summary Income Statement
SUMMARY INCOME STATEMENT £m H1 2025 H1 2024 *restated Revenue 237.9 273.3 Adjusted operating profit 13.0 19.0 Net finance cost (4.5) (5.2) Adjusted profit before taxation 8.5 13.8 Adjusting items (18.1) (7.1) (Loss)/profit before taxation (9.6) 6.7 Taxation (0.7) (3.9) (Loss)/profit after taxation (
Slide 31: Income Statement & Cash Flow Adjusting Items
INCOME STATEMENT & CASH FLOW ADJUSTING ITEMS £m H1 2025 H1 2025 H1 2024 H1 2024 Profit Cash Profit Cash restated Operating profit (5.1) 11.9 Net cash generated from operations 20.0 7.9 INCOME STATEMENT – ADJ USTING ITEMS Adjusted to exclude: Restructuring and other items Plano closure costs (6.7) -
Slide 32: Revenue by Region Impact of FX, Disposals & Restatement
REVENUE BY REGION IMPACT OF FX, DISPOSALS & RESTATEMENT North Europe America Asia Corporate Group Revenue (£m) 2025 68.5 83.2 86.2 - 237.9 Organic growth/(decline) 3.2 (9.5) (8.9) - (15.2) 2024 revenue on organic basis 65.3 92.7 95.1 - 253.1 Disposal (11.8) - (4.3) - (16.1) FX impact - (1.7) (2.4) -
Slide 33: Adjusted Operating Profit by Region Impact of FX, Disposals & Restatement
ADJUSTED OPERATING PROFIT BY REGION IMPACT OF FX, DISPOSALS & RESTATEMENT North Europe America Asia Corporate Group Operating profit (£m) 2025 10.7 (5.0) 11.4 (4.1) 13.0 Organic growth/(decline) 2.7 (6.3) (1.8) (0.1) (5.5) 2024 revenue on organic basis 8.0 1.3 13.2 (4.0) 18.5 Disposal 0.5 - (0.3) -
Slide 34: Movement in Net Debt
MOVEMENT IN NET DEBT £m H1 2025 H1 2024 Operating cash flow after capex 17.6 6.6 Net interest and tax (7.8) (10.1) Pensions (US scheme) - (1.8) Lease liability repayments (2.0) (2.0) Restructuring and acquisition related costs (1.4) (0.5) Free cash flow 6.4 (7.8) Dividends - (8.2) Lease payments 2.0
Slide 35: H1 Improved Free Cash Flow
H1 IMPROVED FREE CASH FLOW ▪ Free Cash Flow of £6.4m in H1 vs outflow of £18.1m H1 2024 © TT Electronics 35
Slide 36: Our Executive Committee Have Significant OEM Leadership Experience
OUR EXECUTIVE COMMITTEE HAVE SIGNIFICANT OEM LEADERSHIP EXPERIENCE Eric Lakin Richard Webb Michael Leahan Stewart Partridge Viki Matthews CEO CFO (Interim) EVP EVP EVP Commercial Operations HR Ceres Deloitte Marotta Controls Cobham Element Six Smiths Group Ultra Electronics Lucas Aerospace Oxford In
Slide 37: Cautionary Statement
CAUTIONARY STATEMENT For the purposes of the following disclaimers, references to this ‘document’ shall be deemed to include references to the presenters speeches, the question and answer session and any other related verbal or written communications. This document contains forward-looking statement