Slide 1: Accelerating Performance: 2024 Full Year Results
ACCELERATING PERFORMANCE 2024 FULL YEAR RESULTS
Slide 2: Excellent progress in 2024
Excellent progress in 2024 . . . Orderbook Potential to Continuous Transformation Strong financial and pipeline reach margin Improvement getting bolder performance expanding and ROIC target delivering ranges in 2026 . . . accelerating improvement and confidence in the future 2
Slide 3: Rich Cashin, Chief Financial Officer
Rich Cashin Chief Financial Officer
Slide 4: Significant growth in revenue, profit, ROIC and cash
Significant growth in revenue, profit, ROIC and cash. . . Closing order Revenue Adjusted book operating profit $225.2m $275.0m $31.6m (FY23: $135.8m) (FY23: $243.8m) (FY23: $21.2m) +64.3% +12.2% +53.4% Return on Cash Leverage Invested Capital conversion 13.7% 157.8% 0.91x (FY23: 8.7%) (FY23: 7.0%) (
Slide 5: FY 2024 highlights
FY 2024 highlights Strong order intake driven by US DOD FY24 FY23 CC* Helmet orders, rebreathers & UK GSR Continuing operations MoD orders $m $m ▲ ▲ Orders received 364.4 258.7 40.9% 40.1% Closing order book 225.2 135.8 65.8% 64.3% Record order book of $225m Revenue 275.0 243.8 12.8% 12.2% Revenue u
Slide 6: Avon Protection
Avon Protection FY24 FY23 Order book doubled – significant $m $m ▲ rebreathers orders , solid US DoD growth Orders received 181.8 132.4 37.3% Closing order book 72.0 35.8 101.1% Revenue slightly down, due to timing of Revenue 145.6 156.9 (7.2%) U.S. DOD filter and accessories sales Adjusted operatin
Slide 7: Team Wendy
Team Wendy FY24 FY23 Record order book, includes $58m $m $m ▲ of NG IHPS orders, and $58m Orders received 182.6 126.3 44.6% of ACH Gen II. Closing order book 153.2 100.0 53.2% Revenue growth reflecting ramp up Revenue 129.4 86.9 48.9% of NG IHPS and ACH Helmets Adjusted operating profit 5.0 (8.1) Ad
Slide 8: Operating profit bridge
Operating profit bridge Quality of earnings improvement FY23 FX FY23 TW TW AP AP Right Scrap Discretionary Expensed Other FY24 Constant volume Operational volume Sizing reduction compensation R&D Currency Gearing . . . operational gearing drives improved profitability 8
Slide 9: Cash flow
Cash flow FY24 FY23 $m $m Adjusted EBITDA 43.4 35.7 Significant working capital Share-based payments and defined benefit pension scheme costs 4.4 1.7 Working capital and other adjustments 20.7 (34.9) reduction year-on-year Cash flows from continuing operations before exceptional items 68.5 2.5 Trans
Slide 10: Balance Sheet
Balance Sheet FY24 HY24 FY23 $m $m $m Intangible assets 126.4 133.8 139.2 Property, plant and equipment 43.7 37.7 35.8 Net other non-current assets 29.7 38.2 32.7 Improving Inventory Turns Inventories 54.9 56.4 54.4 Other current assets 37.4 44.8 58.6 Current liabilities (43.0) (41.2) (35.7) Net deb
Slide 11: Capital allocation model reflects net debt position
Capital allocation model reflects net debt position Transformation Deliver strong margin 1 initiatives and organic progression and investment in R&D revenue growth Focus on disciplined capital allocation Sustainable through- Targeting circa 1.0–2.0x in support of 2 cycle progressive 2.5-3.0x target
Slide 12: Transformation investments self-funded through working capital reduction
Transformation investments self-funded through working capital reduction FY24 FY24 OpEx ($m) CapEx ($m) Footprint optimisation 10.4 1.7 Of which accelerated depn & amor 2.2 FY25 expectations: Operational excellence 1.3 OpEx $13m (of which accelerated depn & amor: $3m) Functional excellence 1.0 CapEx
Slide 13: FY25 guidance
FY25 guidance . . . Revenue growth Mid-single-digit growth Adjusted operating profit margin Similar to FY24 Transformation investment Similar to FY24 Net CashDebt: EBITDA conversion Over 80% . . . continued growth and consistent returns as we implement key transformation programmes 13
Slide 14: Jos Sclater
Cy Sf EXecuti ve ) SS AVON TECHNOLOGIES PLC aven Ye PROTECTION WENDY
Slide 15: Strategy to deliver over medium and long term
Strategy to deliver over medium and long term . . . • SAFER, HAPPIER, MORE CAPABLE PEOPLE IMPROVE • GENERATE CASH MARGINS & • WEALTH THROUGH CREATE CAPACITY PRODUCTIVITY TO INVEST IN GROWTH • GROWTH LEVERAGE ORGANICALLY GROW INNOVATION TO THE CORE AND SCALE DRIVE LONG UP EMERGING TERM GROWTH OPPORTU
Slide 16: We are using CI to deliver change
We are using CI to deliver change . . . Tone from the top • Visible leadership, on the front line • Capable leadership team • All leaders Lean champions Organize to increase accountability • Reorganized every factory to value streams Increase floor space • Visual management showing utilization SAFET
Slide 17: Excellent progress against our operating metrics
Excellent progress against our operating metrics . . . Group Direct Labour Group Scrap (% of revenue)2 Group Inventory Turns3 Productivity1 +30% +37% $600k (vs. H123) (vs. H123) 5.0% 3.50 4.5% $500k 3.00 4.0% 2.50 $400k 3.5% $300k 3.0% -48% 2.00 2.5% (vs. H123) 1.50 2.0% $200k 1.00 1.5% $100k 1.0% 0
Slide 18: GSR Kaizen to implement single piece flow
GSR Kaizen to implement single piece flow . . . Mask assembly ‘Spaghetti diagrams’ showing distance travelled by operators: 25% increase in productivity 70% reduction 16 operators 12 operators in inventory 4 weeks lead time 91 minutes lead time 43% reduction 1,885m travel per operator 10m travel per
Slide 19: Site consolidation project on track
Site consolidation project on track.. FY23: PRE-TRANSFORMATION FY25: DURING FY26: POST-TRANSFORMATION Manufacturing sq. ft. Manufacturing sq. ft. Manufacturing sq. ft. 100,000 100,000 100,000 Rev / sq.ft. Rev / sq.ft. Rev / sq.ft. 90,000 90,000 90,000 80,000 c.$360k 80,000 c.$600k 80,000 c.$800k 70,
Slide 20: Moving the entire factory from batch to flow
Moving the entire factory from batch to flow Commercial Shell finishing lines: 101% improvement 1,000 WIP parts = $1.4m 504 WIP parts = $800k in productivity 9 operators 3 operators per line 43% reduction in 40 shells per line 56 shells per line inventory >14 day lead time 5 day lead time 65% reduct
Slide 21: Transform: initiatives on track
Transform: initiatives on track . . . NOT COMPLETED COMPLETED Appraise Plan Execute Benefits in P&L? Footprint optimisation Operational excellence (plant transformations) Functional excellence Commercial optimisation Programme Management Foundational Excellence Initiative identified Value Implementa
Slide 22: Transform: a lot done with a lot still to do
Transform: a lot done . . . “Unity” programme on track: • New “3P” plant improvement • Built IHPS and ACH finishing lines in process applied at three sites Cleveland • Value Stream Model in place at • IHPS moulding to move from Irvine all sites to Salem start of 2025 • Completion of plant • Full rat
Slide 23: Biggest ever order book
Biggest ever order book . . . Australian Military UK MOD US DOD FM54 order Rebreathers US DRSKO First orders under the M50 order & First order under new Germany and Self-Contained new 4 year GSR contract accessories deployment contract New Zealand Breathing Apparatus Next Generation IHPS ACH GEN II
Slide 24: A strong portfolio of long-term contracts
A strong portfolio of long-term contracts . . . 2024 2025 2026 2027 2028 2029 2030 DOD M50 Replenishment US M53A1 DOD DoD M53A1US Mask DoD M50 Mask Replenishment US DOD M61 Filters UK police FM53 & ST53 Replenishment New strategic NATO, NSPA, FM50 Mask wins/orders: Swedish Police, C50 Mask German &
Slide 25: Advance: Avon Protection stronger pipeline
Advance: Avon Protection stronger pipeline . . . Progress so far… Next steps… GSR Follow on contract Rebreathers International MITR-M1 Half Mask Ramp up production to meet Four years plus five option Won Australian DOD Launch mask to the commercial demand. Growing interest and years FM54 contract ma
Slide 26: Advance: Team Wendy ramping up production
Advance: Team Wendy ramping up production . . . Progress so far… Next steps… RifleTech Next Generation IHPS ACH GEN II Commercial helmets Launch commercial helmet Reached run rate Five lots successfully delivered Offer faster lead times and with unparalleled rifle threat portfolio expansion protecti
Slide 27: Revolutionise: securing our long-term future
Revolutionise: securing our long-term future . . . Expanding portfolio through co-funded new product programmes • Won 3 new DOD development programmes for a new Hood Mask Interface programme. • Excellent progress on DOD funded programmes to deliver filters that enhance user protection • Developing n
Slide 28: Confident of delivering further sustained growth
Potential to Continuous Orderbook reach margin Strong financial Transformation Improvement and pipeline and ROIC performance getting bolder delivering expanding target range in FY26 . . . confident of delivering further sustained growth and improved returns over the long term 28
Slide 29: Good progress so far
Good progress so far. . . Revenue Cash Margins ROIC conversion Leverage growth FY23 (7.5)% 8.7% 8.7% 7% 1.94x FY24 12.2% 11.5% 13.7% 157.8% 0.91x Medium- At least Term (by 5% 14-16% > 17% 80-100% 1-2x 2027) CAGR . . . potential to reach target margin and ROIC range in FY26 29
Slide 30: Risks and opportunities
Risks and opportunities . . . Risk update: Opportunity update: 1. Ramp up risks in Team Wendy 1. Accelerated international helmet and 2. Hiring and retention to maintain growth rebreather growth 3. Filter demand from the DOD 2. Increased DoD demand 4. US healthcare costs and UK Employer 3. CI benefi
Slide 31: Pace accelerating
Pace accelerating . . . Financial goals • Recipe for success leading to growth, 1 Superb margin, cash and ROIC execution • Transformation programme on track • Growing markets in an increasingly 2 Growing dangerous world at 2-4% CAGR markets • Record order book 3 Stable base and well • Valuable recur
Slide 32: Questions
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Slide 33: Appendix
AVON TECHNOLOGIES PLC aven Tae PROTECTION WENDY
Slide 34: We are the world leader in mission-critical protection
We are the world leader in mission-critical protection . . . Respirators & Powered & CBRN Rebreathers Ballistic helmets Bump helmets Liner & retention Accessories Supplied Air Protective Wear systems $145.6m 2024 revenue $129.4m 2024 revenue 450+ employees 450+ employees 3 sites 3 sites key customer
Slide 35: Our aim, our mission
Our aim Our mission Is for heroes to survive Is to provide unparalleled and thrive - whatever the protection for those who mission protect us 35
Slide 36: A best-in-class product portfolio
A best-in-class product portfolio... 1 Best in class product range 2 Long-term, sole-source, multi-year contracts Sustainable Broadening user-base revenue growth 3 driven by changing threat landscape Strengthened 4 Expanding product financial & operational portfolio discipline High-growth Underwater
Slide 37: Leading commercial and international opportunity
Leading commercial and international opportunity … Multi-year 1 contracts secured 2 Strong DOD order book Large commercial market Strong order 3 opportunity book with focus on execution 4 Leading technology Improved margin delivery Expanding product 5 portfolio . . . with significant growth opportun
Slide 38: We have a strong business model
We have a strong business model . . . . . . which is repeatable 38
Slide 39: Our management process
Our management process . . . Strategic Plan Refreshed 5 – 10-year plan Defined outcomes Plan Objectives and expected results set for 2025 Learn Do Business Reviews Review processes used to review learning from each quarter and course correct where necessary Kaizens, Transformation, Action . . . tran
Slide 40: Our STAR business system
Our STAR business system . . . Clear and compelling STRATEGY GROWTH Continually #FIERCE Effective improving about everyday ROIC PROCESS Protecting ACTIONS Lives Talented and motivated PEOPLE . . . is our recipe for success 40
Slide 41: Safety Quality Delivery
Strengthen through CI . . . Safety Always striving to make our work place a safer place to work Secure jobs in a growing business Quality Reduce scrap and re-work by more than 60% A safe environment Delivery Radically reduce lead times and improve on time delivery A chance to learn and grow skills a
Slide 42: Driving up ROIC is a key financial goal
Driving up ROIC is a key financial goal . . . Revenue growth of at least 5% Well-invested business CI and transformation drive higher CI driving structurally lower working margins capital 1.0 – 2.0x target net debt leverage Availability of growth investment >17% Lower investment Improving net ROIC r
Slide 43: #FIERCE - values to live by
#FIERCE - values to live by . . . Fearlessness We seize opportunities and take calculated risks. Integrity We do what’s right; using good judgement to ensure we always do things we can be proud of. Excellence We passionately strive to protect life through innovative solutions, people and processes.
Slide 44: Abbreviations
Abbreviations 50 Series Range of masks based on the technology of the M50 mask system MOD Ministry of Defence ACH GEN II Second-generation Advanced Combat Helmet NATO North Atlantic Treaty Organization ADF Australian Defence Force NAVAIR Naval Air Systems Command APR Air purifying respirator NG IHPS
Slide 45: Technical Guidance
Technical Guidance FY23 FY24 FY25 guidance $m $m $m Research and development expenditure 10.2 11.4 13-17 Of which customer funded 1.2 1.6 3-5 Group expenditure 9.0 9.8 10-12 Capitalised development costs 3.1 - 0-1 Expensed research & development costs 5.9 9.8 10-12 Other capital expenditure 7.9 11.2
Slide 46: Reported to adjusted reconciliation
Reported to adjusted reconciliation FY24 FY23 $m $m Statutory operating profit 10.7 (12.6) Amortisation of acquired intangibles 6.2 6.3 Impairment of goodwill and other non-current assets 1.7 24.6 Transformational and restructuring costs 10.8 2.9 Acceleration of depreciation and amortisation – trans
Slide 47: Avon Protection Portfolio
Avon Protection Portfolio 47
Slide 48: Team Wendy Portfolio
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