Slide 1: Delivering on Our Commitments: 2025 Full Year Results
DELIVERING ON OUR COMMITMENTS 2025 Full Year Results 5 March 2026
Slide 2: Disclaimer
DISCLAIMER Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the ‘Restricted J
Slide 3: Agenda
DAVID AGENDA 01. Highlights 02. Financial Results 03. Strategic Update 04. Summary & Outlook 05. Appendix COATS GROUP PLC | 2025 FULL YEAR RESULTS 3
Slide 4: 2025 Highlights
2025 HIGHLIGHTS SIGNIFICANT STRATEGIC PROGRESS MADE, WELL POSITIONED FOR 2026 AND BEYOND Improved quality of the portfolio - OrthoLite acquisition & US Yarns disposal Gained further market share - Coats competitive differentiators proven Strong growth from organic adjacencies led by Safety Fabrics R
Slide 5: 2025 Financial Results
2025 FINANCIAL RESULTS RESILIENT PERFORMANCE IN CHALLENGING MARKETS Revenue 1 EBIT 1 EBIT Margin 1 $1,465m $290m 19.8% flat organic CER +3% organic CER +80bps (2024: $1,433m) (2024: $272m) (2024: 19.0%) EPS 1 Free Cash Flow 2 Leverage 9.3c $160m 2.2x (2024: 9.7c) (2024: $2m) (2024: 1.5x) 1. Continui
Slide 6: Operating Margin Bridge
OPERATING MARGIN BRIDGE DECISIVE ACTIONS DELIVERING STRONG PROGRESS 19.8% margin 19.0% margin 24 11 290 $m 7 2 272 12 (21) (17) 2024 Volume impact Price/mix Productivity benefits Net inflation Strategic project Other SG&A OrthoLite contribution 2025 benefits COATS GROUP PLC | 2025 FULL YEAR RESULTS
Slide 7: Apparel
APPAREL FINANCIAL PERFORMANCE $m FY 25 FY 24 Organic Revenue 769 770 +1% EBIT 156 151 +4% EBIT (%) 20.2% 19.6% GAINING MARKET SHARE A STRONG PERFORMANCE Continuing to win share with major brands with focus on service Revenue growth outperforming core end markets (estimated down c.3%) 2024: 2025: c.2
Slide 8: Footwear
FOOTWEAR FINANCIAL PERFORMANCE $m FY 25 FY 24 Organic Revenue 440 403 -2% EBIT 105 95 0% EBIT (%) 23.9% 23.5% GAINING MARKET SHARE RESILIENT PERFORMANCE, FURTHER MARGIN INCREASE Continued end markets outperformance (estimated down c.4-5%) Good trading until April followed by cautious customer orderi
Slide 9: Performance Materials
PERFORMANCE MATERIALS FINANCIAL PERFORMANCE $m FY 25 1 FY 24 1 Organic Revenue 256 260 0% EBIT 29 26 10% EBIT (%) 11.3% 10.2% RETURN TO GROWTH IN H2, IMPROVED MARGINS Market share gains in the Automotive sector Accelerated growth in two target adjacencies: Safety Fabrics and Composite energy tapes O
Slide 10: Income Statement
INCOME STATEMENT Exceptional / acquisition related items $m 20251 20241 Exceptionals: $1.8m (2024: $26.1m) with strategic projects now complete Acquisition related: $27.0m amortisation of acquisition intangibles and $19.6m Adjusted EBIT 290 272 transaction costs, mainly OrthoLite Exceptional / acqui
Slide 11: Cashflow and Leverage
CASHFLOW AND LEVERAGE STRONG FREE CASHFLOW 2025 $m $m 2025 2024 13 333 Adjusted free cashflow 184 158 (32) (31) Exceptionals and other (incl. pension) (24) (156) Free cash flow1 160 2 (71) (15) (13) 160 Acquisitions and disposals (793) (13) (24) Equity raise proceeds 323 0 EBITDA Working Capex Inter
Slide 12: Modelling Guidance
MODELLING GUIDANCE GUIDANCE AREA 2026 MEDIUM TERM (2027 ONWARDS) Working Capital c.12% of sales c.12% sales Including working capital outflow for OrthoLite Capital Expenditure c.$40-45m including OrthoLite run rate c.2.5% of sales Net finance costs c.$60-65m Reducing interest costs as balance sheet
Slide 13: Built to Perform, Trusted to Deliver: Strategic Update
Built to Perform, Trusted to Deliver Strategic Update
Slide 14: Strategic Highlights
STRATEGIC HIGHLIGHTS Portfolio Enhancement Exited non-core US Yarns Completed the acquisition of OrthoLite New divisional structure: Apparel and Footwear Sharper focus and increased efficiency Better alignment to underlying technologies Continued market share gains Flat revenue in LSD-MSD1% New divi
Slide 15: Two Industry Leading Divisions
TWO INDUSTRY LEADING DIVISIONS APPAREL FOOTWEAR Apparel Personal Telecom & Industrials1 Coats Footwear OrthoLite Threads Protection (PPE)1 Energy1 Revenue c.$1bn / EBIT c.20% Revenue c.$725m / EBIT c.21% 95% 2 95% 2 Textile Polymer Engineering Science Thread Safety Fabrics Coats Digital Others Ortho
Slide 16: Our Building Blocks for Growth
OUR BUILDING BLOCKS FOR GROWTH EXPANDING SHARE OF WALLET WITH EXISTING CUSTOMER BASE MARKET SHARE COATS DIGITAL ORGANIC INORGANIC GROWTH GAINS ADJACENCIES ADJACENCIES 3% CAGR 1 1-2% CAGR 1 c.1% CAGR Medium term organic revenue target of >5% CAGR through the cycle 1. Including contribution from Ortho
Slide 17: Key Differentiators for Driving Share Gains
KEY DIFFERENTIATORS FOR DRIVING SHARE GAINS WIN WHERE IT MATTERS SUSTAINABILITY INNOVATION DIGITAL Sustainable portfolio Customer breadth and depth ShopCoats digital platform Sustainable operations Scale & financial power Transparency & compliance & suppliers OPERATIONAL EXCELLENCE COMMERCIAL EXCELL
Slide 18: Enhanced Leadership in Sustainability
ENHANCED LEADERSHIP IN SUSTAINABILITY AHEAD OF 2026 TARGETS ORTHOLITE A SUSTAINABILITY LEADER Scope 1&2 Emissions -30% vs 2022 Sustainability also a key strategic pillar Non-virgin oil-based materials 52% Leading recycled content product Water recycling +25% vs 2022 Breakthrough sustainability innov
Slide 19: Organic Adjacencies
ORGANIC ADJACENCIES One-step adjacencies Combined TAM c.$2bn1 Differentiated Coats offerings Known customers Growing >5% CAGR 2025 sales c.$45m SAFETY ENERGY COATS PROWEAVE LIFESTYLE FABRICS TAPES DIGITAL 1 ppt of Group Organic Growth in 2025, good prospects for 2026 1. $2bn includes “high-visibilit
Slide 20: Organic Adjacencies: Safety Fabrics
ORGANIC ADJACENCIES: SAFETY FABRICS CASE STUDY FIRE RESISTANT FABRICS Growing demand for multi-blend solutions, combining protection with comfort: $0.4bn addressable market growing at >10% p.a. Coats is developing an innovative portfolio of IP-protected materials and a cost-competitive supply chain
Slide 21: Inorganic Adjacencies: OrthoLite
INORGANIC ADJACENCIES: ORTHOLITE INTEGRATING TWO GLOBAL LEADERS, STRONG INITIAL PROGRESS REVENUE SYNERGIES OrthoLite strength with brands Coats strength with Tier 1s Mutual cross-selling Innovation synergies COST SYNERGIES Footprint consolidation opportunities Supply chain optimisation Systems imple
Slide 22: Accelerating Innovation in OrthoLite
ACCELERATING INNOVATION IN ORTHOLITE EXPANDING INTO ADJACENCIES IN INSOLES, ADDING TO GROWTH POTENTIAL NEW END MARKET: NEW CATEGORY: NEW CATEGORY: SAFETY SHOES SUPERCRITICAL FOAM INSOLES CARBON PLATES Adding open-cell foam comfort to Superior rebound and lighter weight Integrating OrthoLite insoles
Slide 23: Upgraded Medium Term Targets
UPGRADED MEDIUM TERM TARGETS TARGETS ANNOUNCED IN MARCH 2025 UPGRADED TARGETS >5% on average through the cycle Revenue % (CAGR) >5% Revenue Growth 200+bps outperformance vs market EBIT % 19-21% EBIT % 21-23% FCF1,2 (cumulative) >$750m over 5yrs FCF1,2 (cumulative) c.$1bn over 5 yrs Organic EPS2,4 (C
Slide 24: Capital Allocation
CAPITAL ALLOCATION TAKING A DISCIPLINED AND RETURNS BASED APPROACH TO CAPITAL ALLOCATION PRIORITIES CAPITAL ALLOCATION c.$1bn FCF1 over 5 year period 01. Reinvest in organic growth M&A or buybacks 02. Progressive dividend EPS growth >10%2 03. Disciplined M&A and/or share buybacks Dividends Illustrat
Slide 25: Summary and Outlook
SUMMARY AND OUTLOOK STRONG STRATEGIC PROGRESS, WELL POSITIONED FOR 2026 Delivered on our commitments in 2025 2026 another year of progress expected Positive organic growth supported by market share and organic adjacencies OrthoLite to significantly outperform underlying market Organic margin progres
Slide 26: Q&A
Q&A
Slide 27: Appendix
APPENDIX
Slide 28: The Coats Investment Case
THE COATS INVESTMENT CASE World leader in our markets A leading Tier 2 supplier of critical components to the apparel and footwear industry Consistently outperforming our markets Unrivalled global manufacturing capability, proprietary technology platforms & sustainability-led innovation c.$1bn Impro
Slide 29: 2025 Divisional Analysis
2025 DIVISIONAL ANALYSIS Continuing Operations FY 2025 FY 20241 Reported change CER2 Organic3 Revenue ($m) Apparel 769 770 0% 1% 1% Footwear 440 403 9% 8% -2% Performance Materials 256 260 -1% 0% 0% Group Revenue 1,465 1,433 2% 3% 0% EBIT ($m) Apparel 156 151 3% 4% 4% Footwear 105 95 11% 11% 0% Perf
Slide 30: New Reporting Structure: FY 2025 Indicative
NEW REPORTING STRUCTURE: FY 2025 INDICATIVE Continuing Operations FY 2025 FY 20241 Reported change CER2 Organic3 Revenue ($m) Apparel 974 974 0% 2% 2% Footwear 491 459 7% 6% -4% Group Revenue 1,465 1,433 2% 3% 0% EBIT ($m) Apparel 186 181 3% 4% 4% Footwear 103 91 13% 13% 3% Group EBIT 290 272 7% 7%
Slide 31: New Reporting Structure: H1 2025 Indicative
NEW REPORTING STRUCTURE: H1 2025 INDICATIVE Continuing Operations H1 2025 H1 20241 Reported change CER2 Revenue ($m) Apparel 482 478 1% 3% Footwear 223 226 -1% -1% Group Revenue 705 704 0% 2% EBIT ($m) Apparel 93 87 7% 9% Footwear 47 46 1% 1% Group EBIT 140 133 5% 7% EBIT margin (%) Apparel 19.4% 18
Slide 32: Improved Portfolio Quality
IMPROVED PORTFOLIO QUALITY RECENT TRANSFORMATIONAL CHANGES – c.200 BPS MARGIN UPLIFT, HIGHER GROWTH New Structure Apparel OrthoLite bought stronger Adrian Elliot growth Acquisition Coats Apparel Disposed of non-core, Industrials2 lower margin activities Personal Protection2 Disposal Aligns the divis
Slide 33: Strategic Rationale for OrthoLite
STRATEGIC RATIONALE FOR ORTHOLITE COMBINING MARKET LEADING PLATFORMS TO CREATE A HIGH GROWTH MARKET LEADER Coats Footwear Strategic rationale Creating a leading #1 #1 Greater scale, deep brand intimacy; 1 ‘Tier 2’ in the Global #1 in threads Global #1 open-cell enhanced innovation and sustainability
Slide 34: Sustainability
SUSTAINABILITY SUPPORTING OUR COMMERCIAL SUCCESS 2022 2026 2025 % of 2026 target Pillar Metric Baseline Target Actual achieved 22% reduction from ENERGY Reduction in Scope 1&2 emissions 182k tonnes 2022 baseline 30% reduction 136% MATERIALS % non-virgin oil-based materials 25% 60% 52% 87% Increase i