Slide 1: Growing Fast and Improving Every Day: 2025 Half Year Results
GROWING FAST AND IMPROVING EVERY DAY 2025 HALF YEAR RESULTS
Slide 2: H1 2025 - delivering on our STAR strategy
H1 2025 - delivering on our STAR strategy. . . Cultural change Focused on Orderbook On track to Excellent and capability operational providing future deliver target year-on-year accelerating execution confidence margin range of growth 14-16% in FY2026 . . . accelerating cultural change and operation
Slide 3: Rich Cashin, Chief Financial Officer
Rich Cashin Chief Financial Officer
Slide 4: Facing up to a dynamic macro environment
Facing up to a dynamic macro environment. . . Increasing threats: • Growing investment in border and homeland security • Customer sentiment supporting our “Made in the US” products • Substantial growth in defence spend expected • Russian tactics in Ukraine highlight CBRN risk for all militaries • Pr
Slide 5: Excellent year-on-year growth
Excellent year-on-year growth. . . Closing order Revenue Adjusted book operating profit $247.0m $148.7m $17.5m (HY24: $199.0m) (HY24: $127.1m) (HY24: $11.9m) +24% +17% +48% Adjusted Return on Leverage basic EPS Invested Capital 38.8c 16.3% 0.99x (HY24: 9.7%) (HY24: 1.69x) (HY24: 22.3c) +76% +660bps
Slide 6: HY2025 highlights
HY2025 highlights HY25 HY24 CC* $m $m ▲ ▲ Record order book with backlog Orders received 170.5 190.3 (10.4%) (10.1%) growth in both Avon Protection Closing order book 247.0 199.0 24.1% 24.0% and Team Wendy Revenue 148.7 127.1 17.0% 16.8% Revenue – H1 growth boosted by Australian Adjusted operating p
Slide 7: Avon Protection – strong growth in backlog and revenue
Avon Protection – strong growth in backlog and revenue. . . HY25 HY24 Book to bill of 1.3x driven by Ukraine $m $m ▲ orders and additional NSPA awards. Orders received 97.2 87.0 11.7% Closing order book 93.7 55.5 68.8% Strong backlog - supporting further Revenue 75.5 67.3 12.2% growth in H2 Adjusted
Slide 8: Team Wendy – site consolidation on track
Team Wendy – site consolidation on track. . . HY25 HY24 Record order book, $74m for NG IHPS, $m $m ▲ $59m for ACH Orders received 73.3 103.3 (29.0%) Closing order book 153.3 143.5 6.8% Revenue growth of 22% driven by ACH Revenue 73.2 59.8 22.4% volume ramp up , strong commercial Adjusted operating p
Slide 9: Operating profit bridge
Operating profit bridge $30.0m $25.0m $3.6m $2.6m ($2.7m) $20.0m $7.7m ($1.4m) $17.5m ($4.1m) $15.0m $11.9m $11.8m ($0.1m) $10.0m $5.0m $0.0m HY24 FX HY24 Volume Operational ACH AP AP Other HY25 constant gearing ramp up Margin Growth currency Initiatives . . .driven by volume growth & margin improve
Slide 10: Cash flow
Cash flow HY25 HY24 Working capital build $m $m supporting site consolidation Adjusted EBITDA 23.4 17.7 Share-based payments and defined benefit pension scheme costs 3.3 1.5 programme. Working capital and other adjustments (13.7) 8.3 Cash flows from continuing operations before adjusting items 13.0
Slide 11: Balance Sheet
Balance Sheet HY25 FY24 HY24 $m $m $m Intangible assets 120.8 126.4 133.8 Property, plant and equipment 41.5 43.7 37.7 Net other non-current assets 28.3 29.7 38.2 Planned inventory build to de-risk Inventories 58.7 54.9 56.4 site consolidation project Other current assets 47.3 37.4 44.8 Current liab
Slide 12: Transformation investments on track to largely complete by end of FY2025
Transformation investments on track to largely complete by end of FY2025. . . HY25 HY25 OpEx ($m) CapEx ($m) FY25 expectations: Footprint optimisation $7.5m $0.5m OpEx: $13m Of which accelerated depn & amor $2.4m (of which accelerated depn & amor: $4m) Operational excellence $0.9m CapEx: $1m (Reduce
Slide 13: Improving Finance processes through Kaizen
Improving Finance processes through Kaizen. . . Internal financial reporting – back-office Kaizen Before: After: • 7 days to close the books each month • 2 days to close each month • 20% of effort on non-value add ‘rework’ • Streamlined process across multiple sites activities and time zones • Right
Slide 14: FY25 financial guidance
FY25 financial guidance . . . Guidance from FY24 Results: Guidance today – in line with pre-close update in March : Revenue growth Above 10% Adjusted operating profit margin Above 12% Transformation investment $13m OpEx + $1m CapEx Cash conversion Over 80% Net Debt: EBITDA Net Debt: EBITDA . . . con
Slide 15: Jos Sclater, Chief Executive
ld Th a Jos Sclater ¥ RK Chief Executive PROTECTION
Slide 16: The strategy is delivering
The strategy is delivering . . . • 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 OPPORTUNITIES . . . we con
Slide 17: This is our 'Strengthen System'
This is our ‘Strengthen System’ . . . . . . it enables us to improve our businesses fast 17
Slide 18: Our vision is to have a just-in-time, one-piece flow system
Our vision is to have a just-in-time, one-piece flow system. . . From this... ...to this . . . with quality built in 18
Slide 19: We have strengthened the capability of our leaders
We have strengthened the capability of our leaders . . . . . . to lead the change with the pace we want 19
Slide 20: Making good progress towards our operational targets
Making good progress towards our operational targets. . . Group Direct Labour Group Scrap (% of revenue)2 Group Inventory Turns3 Productivity1 +26% +33% $600k (vs. H123) (vs. H123) 5.0% 3.50 4.5% $500k 3.00 4.0% $400k 3.5% 2.50 3.0% -55% 2.00 $300k 2.5% (vs. H123) 3x 2.0% 1.50 $200k 1.5% 1.00 $100k
Slide 21: Scrap rates have reduced in Avon Protection
Scrap rates have reduced in Avon Protection . . . FY2025: GSR Filters FY2025: Face blank moulding Visor Casting 4.0% 18.0% 25.0% 16.0% 3.9% c. $54k 14.0% annual saving 20.0% 3.8% 12.0% 15.0% c. $260k c. $154k annual saving annual saving 10.0% 3.7% 8.0% 10.0% 6.0% 3.6% 4.0% 5.0% 3.5% 2.0% 0.0% 0.0% P
Slide 22: A scalable model
A scalable model. . . Investment . . . generating wealth for our employees and investors 22
Slide 23: Transform: initiatives on track
Transform: initiatives on track . . . NOT COMPLETED COMPLETED NEW FOR H1 2025 Appraise Plan Execute Benefits in P&L? Footprint optimisation Operational excellence (Plant transformations) Functional excellence Commercial optimisation Programme Management Foundational Excellence Initiative identified
Slide 24: Steve Elwell, President, Avon Protection
Steve Elwell President, Avon Protection
Slide 25: Successful execution of our growth strategy
Successful execution of our growth strategy. . . CBRN Respiratory Non-CBRN Respiratory Integrated CBRN Underwater Respiratory Detect Protect Protect Aftermarket Support (10yrs+) . . . has delivered early expansion into new market verticals 25
Slide 26: Pipeline supports H2 growth
Pipeline supports H2 growth. . . Four NATO nations Long term Three new FM50 defence NATO customers funding Ukraine programs programme 13 countries now Up to £10m, supplied under FM50 and C50 orders deployed into Ukraine. 6-year contract agreement UK MOD Australian FM54 US DOD spares & Orders under t
Slide 27: MITR enables entry into the non-CBRN market
MITR enables entry into the non-CBRN market (tear gas, fentanyl, lead backwash, fuel fumes, concrete dust) (tear gas, fentanyl, lead backwash, fuel fumes, concrete dust) • Secured US DoD Enhanced Bio-Defense Respirator (ENBD) Program of Record • Commercial launch of MITR half-mask complete and early
Slide 28: Innovation in integrated CBRN protection
Innovation in integrated CBRN protection. . . • Eight nations secured in NATO CBRN boots and gloves framework • Secured US DoD ASPIRE HMI (Hood-Mask Interface); three individual programs of record • Strong pipeline following EXOSKIN CBRN suit launch . . . is accelerating medium term growth 28
Slide 29: Continued success with rebreathers
Continued success with rebreathers. . . • Secured Canadian Navy supply contract plus two additional European NATO Navies • Strong pipeline for additional NATO nations and export opportunities • Substantial support and aftermarket business . . . building a long-term business model 29
Slide 30: Strong order book
Strong order book . . . Next Generation IHPS ACH Gen II NAVAIR Pads Commercial helmets $74m orderbook from $59m orderbook New $2m order for $7m orderbook $8m orderbook, US Army from US Army bump helmets for lead time reduced US Navy . . . supports future growth 30
Slide 31: New RIFLETECH helmet
New RIFLETECH helmet. . . Unique Selling Features Elite Level III Rifle Performance Optimal no- through hole ballistic integrity Improved comfort, lightweight design Premium stability, best in class protection-to-weight ratio Integrates with Avon Protection MITR -M1 Half Mask . . . to help accelerat
Slide 32: Developing helmets of the future
Developing helmets of the future. . . Enhanced comfort & cooling from novel 3D pad structures integrated into RIFLETECH Traumatic Brain Injury (TBI) mitigation: Progressing R&D contracts to advance the ability to predict brain injury against ballistic, blunt impact and blast threats . . . leaders in
Slide 33: On track to deliver target margin range of 14-16%
On track to deliver target margin range of 14-16% . . . Revenue Cash Margin ROIC conversion Leverage growth FY 2024 12.2% 11.5% 13.7% 158% 0.91x LTM 10.1% 12.5% 16.3% 110% 0.99x Medium- At least Term (by 5% 14-16% > 17% 80-100% 1-2x 2027) CAGR . . . a year ahead of original expectations 33
Slide 34: Risks and opportunities
Risks and opportunities . . . Risk update: Opportunity update: • Operational execution risks, • US tariffs mostly in Team Wendy as we • International helmet growth ramp up volumes • US tariffs and government efficiency (DOGE) . . . execution remains our biggest risk in FY25 34
Slide 35: Avon continues to deliver
Avon continues to deliver . . . Business System Improving our Transformation Growing to deliver strong businesses fast on track markets growth and return on capital . . . confident we will achieve our medium-term targets in 2026 35
Slide 36: Questions
QUESTIONS
Slide 37: Appendix
AVON TECHNOLOGIES PLC aven TEAM PROTECTION WENDY
Slide 38: We are the world leader in mission-critical protection
We are the world leader in mission-critical protection . . . CBRN Non-CBRN Integrated Underwater Ballistic helmets Bump helmets Liner & retention Respiratory Respiratory CBRN Respiratory systems Protection Protection Protective Wear Protection $145.6m 2024 revenue $129.4m 2024 revenue 450+ employees
Slide 39: 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 Underwat
Slide 40: 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 oppor
Slide 41: 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 t
Slide 42: 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 43: Fearlessness Integrity Excellence
Our mission is to provide unparalleled protection for those who protect us . . . 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 throu
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 13-15 Of which customer funded 1.2 1.6 2-3 Group expenditure 9.0 9.8 11-12 Capitalised development costs 3.1 - 1-2 Expensed research & development costs 5.9 9.8 10-11 Other capital expenditure 7.9 11.2
Slide 46: Reported to adjusted reconciliation
Reported to adjusted reconciliation HY25 HY24 $m $m Statutory operating profit 6.2 2.6 Amortisation of acquired intangibles 2.9 3.1 Transformational costs 6.0 5.4 Acceleration of depreciation and amortisation – transformational 2.4 0.8 Adjusted operating profit 17.5 11.9 46
Slide 47: Avon Protection Portfolio
Avon Protection Portfolio 47
Slide 48: Team Wendy Portfolio
Team Wendy Portfolio RIFLETECH NG IHPS TEAM WENDY RIFLETECH NEXT GENERATION 48 INTEGRATED HEAD PROTCTION SYSTEM
Slide 49: Kaizen, Kaizen, Kaizen!
resi L 4 aizen; Kaizen, Kaizen a AVON TECHNOLOGIES PLC AVeN Nm PROTECTION WENDY
Slide 50: Kaizen: LTP Helmet assembly line optimisation
Kaizen: LTP Helmet assembly line optimisation One Piece Flow Before: After: High Work In Progress, batch processes, quality Quality now built into process as part of flow, inspection still done in batches, lack of Standard WIP reduced from 532 shells to 56, footprint Work reduced by 52%, created Sta
Slide 51: Kaizen: Vertical press tool changeover
Kaizen: Vertical press tool changeover Single Minute Exchange of Die (SMED) Improving operational availability by eliminating loss due to shutdowns, reduce lot size and inventory Before: Tool change over time 93 minutes per press, 12 presses means 18.6 hours of lost production time for every tool ch
Slide 52: Kaizen: UK GSR line replenishment
Kaizen: UK GSR line replenishment Kanban and Water Spider Water Spider: Someone who refills production lines on the shopfloor with supplies, tools and resources needed. Aim to decrease variation in production and maintain uninterrupted workflow. Kanban two bin system Kanban card example Before: Afte
Slide 53: Kaizen: Salem & Cleveland - intercompany orders
Kaizen: Salem & Cleveland - intercompany orders Value Stream Mapping Before: Lack of scheduling led to too much inventory After: between factories Value stream mapping introducing kanban cards . . . total inventory reduction $2m 53
Slide 54: Kaizen: Gloves line optimisation
Kaizen: Gloves line optimisation Value Stream Mapping & Standard work Standard Worksheet After: Before: Created optimised layout, flow & build quality into the line Root cause analysis conducted on rejects: moved to supplier kanban system with weekly deliveries to 26% rejects. reduce wastage and inv
Slide 55: Kaizen: Rubber mould servicing
Kaizen: Rubber mould servicing Standard work After: • Investigated alternative cleaning including laser Before: cleaning and shot blasting within the press No standard servicing process, moulds must • Standard work for mould changes introduced and be stripped, brought back to maintenance, dedicated
Slide 56: Kaizen: intercompany HPW and Cadillac
Kaizen: intercompany HPW and Cadillac Pull system using Kanban Before: After: • High cost of air freight (4-8x more expensive than • Moved to a pull system to replenish when stock hits by Sea) between sites on a push system, making minimum buffer level. (Fixed time Kanban) on forecast, not on orders