AB Dynamics : ABD FY24 results presentation FINAL

About this update from Ab Dynamics Plc

Driving delivery Preliminary results presentation - 26 November 2024 Year ended 31 August 2024 Agenda Highlights Financial results ABD's transformation Growth strategy and value creation Organic growth drivers Margin expansion M&A ABD Solutions Wrap up Dr James Routh, Chief Executive Officer Sarah Matthews-DeMers, Chief Financial Officer 1 AB Dynamics plc Preliminary results presentation - 26 November 2024 Highlights Dr James Routh, Chief Executive Officer 2 AB Dynamics plc Preliminary results presentation - 26 November 2024 2024 operational and strategic highlights Strong financial results: 10% growth in revenue 22% growth in operating profit Market and customer activity levels positive Product development and new product launches Contract win for ABD Solutions for delivery in FY 2025 VTS acquisition completed, Bolab acquired post year end MSCI AAA rating achieved 3 AB Dynamics plc Preliminary results presentation - 26 November 2024 Financial results Sarah Matthews-DeMers, Chief Financial Officer 4 AB Dynamics plc Preliminary results presentation - 26 November 2024 Continued strong financial performance Revenue and operating margin 120 20% 100 19% 80 18% 60 17% 40 16% 20 15% 0 14% 2021 2022 2023 2024 Revenue (£m) Operating margin (%) Cash conversion (%) 120% 100% 80% 60% 40% 20% 0% 2021 2022 2023 2024 2024 2023 Change Revenue £111.3m £100.8m ↑ 10% Adjusted* operating profit £20.3m £16.6m ↑ 22% Adjusted* operating margin 18.2% 16.5% ↑ 170 bps Adjusted* diluted EPS 70.0p 60.8p ↑ 15% Cash conversion 115% 114% Order book £30.3m £42.9m ↓ 29% Revenue up 10% with strong growth across testing products and services Operating profit up 22% to £20.3m Operating margin expansion, up 170 bps to 18.2%, as a result of operating leverage and operational improvements Effective tax rate up to 18.7% due to increase in UK rate Diluted EPS up 15% to 70.0p Dividend up 20% to 7.63p Cash conversion of 115% with rolling three-year average of 116% Closing order book of £30.3m provides good visibility into FY 2025 5 AB Dynamics plc Preliminary results presentation - 26 November 2024 * Before amortisation of acquired intangibles, acquisition related charges and exceptional items Revenue £m 120 115 4.2 0.4 +10% 110 8.4 (2.5) 111.3 105 100 100.8 95 90 85 80 Testing products Testing services Simulation FX 2024 2023 VTS (acquired H2) contributed £1m and is included in Testing services 6 AB Dynamics plc Preliminary results presentation - 26 November 2024 Adjusted operating profit £m 25 6.2 0.1 +22% 20 (2.4) (0.2) 20.3 15 10 5 16.6 0 Sales volume Sales mix Overheads FX 2024 2023 7 AB Dynamics plc Preliminary results presentation - 26 November 2024 Net cash £m 70 60 27.9 50 (3.1) (2.1) (4.8) 40 30 32.0 (17.0) (2.8) (1.5) 28.6 20 10 0 2023 Adjusted operating Tax paid Other Capex Acquisitions Leases Dividend paid 2024 cash flow Returns to Operating cash generation Investing shareholders 8 AB Dynamics plc Preliminary results presentation - 26 November 2024 Testing products 2024 2023 Change Revenue £69.4m £63.0m ↑ 10% EBITDA £15.4m £11.8m ↑ 31% EBITDA margin 22.2% 18.7% ↑ 350 bps Adjusted operating profit £13.2m £9.1m ↑ 45% Adjusted operating margin 19.0% 14.4% ↑ 460 bps Highlights Market drivers continue to support track testing activity levels Strong growth in driving robots and ADAS testing products Regulatory accreditation of LaunchPad Spin, Soft Motorcycle 360 and Soft Pedestrian 360 products Increase in margin demonstrates benefit of investment in business infrastructure and capability made in previous years 9 AB Dynamics plc Preliminary results presentation - 26 November 2024

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