Slide 1: Consistently delivering value
DIPLOMA PLC Consistently delivering value Diploma PLC oy Full Year Results for the Year Ended 30 September 2021 we 22 November 2021
Slide 2: Agenda
O2 Diploma pic Full Year 2021 Results AGENDA Le] Overview Financial performance Ls] Strategy update DIPLOMA PLC
Slide 3: Overview
Overview Johnny Thomson Chief Executive Officer DIPLOMA PLC
Slide 4: Significant progress in 2021
04 Diploma PLC Full Year 2021 Results Significant progress in 2021 * Building high quality, scalable businesses for organic growth * Brilliant management teams and colleagues navigating the pandemic * Developing the organisation for scale * Delivering Value Responsibly: ESG at the centre of our stra
Slide 5: Delivering Value Responsibly
05 _ Diploma pic Full Year 2021 Results Delivering Value Responsibly Strong _ business ili! | ! Our Colleagues engagement es: sys an . with our DVR . * Brilliant leadership in our businesses agenda Tee aa ¢ High Engagement Survey index score of 79% * Safe-working practices, flexible working and ment
Slide 6: Results
06 _ Diploma pic Full Year 2021 Results Results Revenue growth 46x 10%+ Free cash flow conversion 103% ca.90%+ Underlying revenue growth 12% Model: 5% Net debt / EBITDA 1 |x <2.0x Adjusted operating profit margin 18.9% Model: 17%+ ROATCE 17.4% High teens A strong performance Adjusted EPS growth 51%
Slide 7: Financial performance
Financial performance oN sTRECKe STRECKG Barbara Gibbes aag nll Chief Financial Officer OF] 01390331 STERLETR) Somagen, Canada Life Sciences Sector DIPLOMA PLC
Slide 8: Financial Highlights
Diploma PLC Full Year 2021 Results Financial Highlights Strong financial performance Revenue +) £787.4m 2020: £538.4m +46 Free cash flow ) conversion 103% 2020: 113% Adjusted 4) operating profit £148.7m 2020: £87.1m +7 1% Net debt/EBITDA 1.1x 2020: net cash Adjusted 4s) operating margin 18.9% 2020:
Slide 9: Revenue
O09 _ Diploma pic Full Year 2021 Results Revenue Year ended 30 September FY 2020 Underlying Growth: 12% (+7% versus 2019) +14% +7% +16% — — seed | Seals Sciences Controls 38% ~A% ——— lm £787.4m FX Acquisitions FY ———— 46% reported revenue growth —————_—__> 2021 Strong underlying growth in all three
Slide 10: Underlying revenue profile through Covid
10 _ Diploma pic Full Year 2021 Results Underlying revenue profile through Covid Year ended 30 September Underlying revenue growth (%) 2019 Pre Covid 6% 4% H119 H2 19 2020 and 2021 Covid 1% _—-H220 2% 23% H1 20 -15% H1 21 H2 21 2022 Post Covid Mid-single digit underlying growth iz = H122 H222 Sustai
Slide 11: Adjusted operating profit
11 Diploma pic Full Year 2021 Results Adjusted operating profit Year ended 30 September Opex Other Value-add L reinvestment |] Acquisitions Inflation Volume Pricing 16.2% 18.9% Sustaining high margins DIPLOMA PLC
Slide 12: Sector performance
12. Diploma pic Full Year 2021 Results Sector performance Controls Revenue: £343.3m +16% +119% 21.1% Margin * International Controls underlying growth 8% -WCW underlying growth 26% * Margin +480bps: — Full year benefit of FY 2020 restructuring — WCW accretion — Operational leverage Seals Revenue: £2
Slide 13: Income statement
13 Diploma PLC Full Year 2021 Results Income statement Year ended 30 September 2021 2020 £m £m Change Revenue 787.4 538.4 +46% Adjusted operating profit 148.7 87.1 +71% Adjusted operating margin (%) 18.9% 16.2% +270bps Interest expense (6.8) (2.7) Adjusted profit before tax 141.9 84.4 +68% Adjusted
Slide 14: Net debt and cashflow
14 Diploma PLC Full Year 2021 Results Net debt and cashflow £m (12.6) 11.9 (6.2) | Ye — i Tax cash Adjusted Capex Working capoct profit after capital P' tax Free cash flow 106.1 [eee | 9.6 Ls Other (53.2) (97.1) Dividend Net M&A exc WCW 0.6 Other Net debt post WCW Free cash flow conversion: 103% tar
Slide 15: M&A: disciplined portfolio development
15 Diploma PLC Full Year 2021 Results M&A: disciplined portfolio development Acquisitions excluding WCW No. of acquisitions Acquisition spend H1 H2 FY H1 H2 FY Controls 1 3 4 £3m £38m £41m Seals 2 - 2 £16m - £16m Life Sciences 1 3 £31m £17m £48m 4 5 9 £50m £55m £105m ° Acquisitions - annualised reve
Slide 16: Current trading and guidance
16 _ Diploma pc Full Year 2021 Results Current trading and guidance Current trading * Supply chain disruption / inflation under close management * Access to labour and wage inflation under close management * Continued good growth into 2022 Positive outlook * Mid-single digit underlying revenue growt
Slide 17: Strategy update
Strategy update Johnny Thomson Chief Executive Officer y i = DIPLOMA PLC
Slide 18: Strategy: A Reminder
18 Diploma PLC Full Year 2021 Results Strategy: A Reminder * Building high-quality, scalable businesses for long-term organic growth * Diversifying and scaling our businesses through market penetration/product extension * Portfolio: disciplined acquisitions to focus on key scalable businesses * Deve
Slide 19: Significant growth runway
19 _ Diploma pic Full Year 2021 Results Significant growth runway Significant Market Group Portfolio Opportunity SUSIE Focus v¥ Under-penetrated in v Diversify revenue Y Focus on scalable large developed streams, particularly in businesses in each economies structurally high growth Sector ; end segm
Slide 20: Controls
20 _ Diploma pic Full Year 2021 Results Controls Revenue £343m +119% y/y +16% underlying Margin 21.1% % of Group revenue’ +o Sector revenue mix ®@ Wire & Cabling 57% ® Interconnect 22% ® Fasteners 1% Fluid Controls 7% Adhesives 3% * Pro forma = Strategy: significant growth runway ¢ Structurally posi
Slide 21: Seals
21 Diploma pic Full Year 2021 Results Seals Revenue +9% y/y £2 64m +7% underlying Margin 17.6% % of Group revenue" +o Sector revenue mix © International 42% Seals @N.American 24% Aftermarket @ US Industrial 22% OEM * Pro forma US MRO 12% Strategy: significant growth runway ¢ Structural tailwinds: US
Slide 22: Life Sciences
22 _ Diploma pic Full Year 2021 Results Life Sciences Revenue +29% y/y £1 80m +14% underlying Margin 23.9% % of Group revenue” Sector revenue mix* ®Testingand 45% Diagnostics @ Surgical 24% © Critical 13% eG 8% Others 10% * Pro forma Strategy: significant growth runway ¢ Structural growth drivers: s
Slide 23: Positive Impact: Growing Responsibly
23 Diploma PLC Full Year 2021 Results Positive Impact: Growing Responsibly US MR pollution control Gasket leak calculator enables customers to prevent pollution and leakage Positive Impact Revenue @ Health & wellbeing ® Safe & sustainable communities ® Waste & pollution management @ Other Healthcar
Slide 24: Acquisitions to accelerate our strategy
24 Diploma PLC Full Year 2021 Results Acquisitions to accelerate our strategy Key attributes Strategic/disciplined approach ° Value-add servicing, high gross margins * Portfolio focus on scalable businesses * Accessing organic growth with scale * Structured market mapping and potential relationships
Slide 25: Operational strategy: Executing our value-add model at scale
25 _ Diploma pic Full Year 2021 Results Operational strategy: Executing our value-add model at scale... =» Supply chain » » Operational Route to mp Commercial management excellence market discipline 9 on — Facility Sustaining our margin DIPLOMA PLC
Slide 26: Core competencies: Continuous improvement
26 Diploma PLC Full Year 2021 Results Core competencies: Continuous improvement Route to market | supplychain Operational excellence * Defining / growing / ¢ Proactive procurement ¢ Standard core warehouse prioritising addressable processes processes/systems marke's in key business * Category manage
Slide 27: Evolving our capability for scale: Talent, Technology, Facility
27 Diploma PLC Full Year 2021 Results Evolving our capability for scale: Talent, Technology, Facility * Measured and decentralised approach * Developing the organisational structure for scale . * E-commerce: leverage * Development, succession webstore capability planning, talent * Digitalising opera
Slide 28: Delivering Value Responsibly: Operationalising ESG
28 _ Diploma pic Full Year 2021 Results Delivering Value Responsibly: Operationalising ESG Our Colleagues Y Colleague engagement index Health & Safety v Lost time incident rate Diversity, Equity & Inclusion v¥ Gender representation on senior management team Y Ethnic minority representation on senior
Slide 29: Concluding remarks
29 Diploma PLC Full Year 2021 Results Concluding remarks * An excellent year of progress * Very strong results * Significant long-term growth potential * Developing our value-add business model to sustain our margins * Evolving the organization for scale * Embedding DVR at the centre of our strategy
Slide 30: Appendix
Slide 31: Value-add servicing supports differentiation
31 Diploma pic Full Year 2021 Results Value-add servicing supports differentiation Essential Products Essential Solutions Essential Values 1S) Critical to Responsive customers needs customer service ) Decentralised model Deep technical . © Opex budgets support ww Y Customer-orientated Added value @
Slide 32: Delivering Value Responsibly
BQ Diploma pic Full Year 2021 Results Delivering Value Responsibly Diversity, Equity & Inclusion Our mission is for all our colleagues to feel able to bring their full selves to work, fulfil their potential and benefit from working as part of a diverse team. Health & Safety Our mission is to keep ev
Slide 33: Sector revenue and profit
3Z_ Diploma pic Full Year 2021 Results Sector revenue and profit Revenue Underlying growth 2021 2020°* 2021 2020 £m £m Change % % Controls 343.3 156.6 +119% +16% -14% Seals 263.7 242.1 +9% +7% -5% Life Sciences 180.4 139.7 +29% +14% -4% Group 787.4 538.4 +46% +12% -7% Adjusted operating profit Adjus
Slide 34: Balance sheet
34 Diploma PLC Full Year 2021 Results Balance sheet 2021 2020 £m £m Goodwill and acquisition intangible assets 605.6 246.2 Tangible and other intangible assets 38.8 30.9 Net lease liabilities (3.4) (2.1) Net working capital 120.6 86.6 Asset held for sale 11.3 - Trading capital employed - reported 77
Slide 35: Financial KPIs
35 Diploma PLC Full Year 2021 Results Financial KPls Five year trends 2021 2020 2019 2018 2017 Revenue £787.4m £538.4m £544.7m £485.1m £451.9m Total growth +46% -1% +12% +7% +18% Underlying growth +12% -7% +5% +7% +7% Adjusted operating margin 18.9% 16.2% 17.8% 17.5% 17.3% Working capital (% revenue