Avon Technologies : 13 May 2026 Half Year Results 2026 (Presentation)

About this update from Avon Technologies Plc

TRANSFORMATION DELIVERING. FOCUSING ON GROWTH Interim Results 2026 From transformation to growth 1 2 3 AVON TECHNOLOGIES PLC ...exciting prospects ahead Very strong group financial performance -well into target margin range Very strong group financial performance ... AVON TECHNOLOGIES PLC ... continued growth ahead of our core markets HY26 highlights HY26 HY25 CC* Orders received S i w» S wos ▲ (so»%) ▲ (si s%) Closing order book 2199 247o (11 o%) (114%) Revenue 160.8 148.7 8.1% 6.8% Lower order intake DoW Tollow-on orders expected in late Fr›6 FY27 Adjusted operating profit 24.4 17.5 39.4% 39.4% Revenue up 7%. Growth in Avon Protection Adjusted operating profit margin 15.2% I 1.8% 340bp 340bp LOGIES PLC Adjusted net finance costs (2 6) (2 7) (3.7%) (3.7%) Adjusted profit before tax 21.8 14.8 47.3% 47.3% Adjusted taxation (5.2) (3.3) Adjusted profit after tax 1b.b 11.5 44.3% 44.3% Adjusted basic earnings per share 56.4c 38 8c 45.4% 45.4% Interim dividend per share 8.1 c 7.6c 6.6% Increased adjusted operatin with improved operational e 0 AVON TECH Norma Ise tax ate o 14°o ...margin well into the target range Avon Protection PROTECT1ON Orders received Closing order book Adjusted operating profit HY2b HY25 Sm Sm ▲ 111.9 93.7 19.4% 230J 20.7 14.3 44.8% 1.39 Order intake reduction - non-recurrence oL HI 2025 one-oLT orders partly oLTSet by Strong Commercial AmericaS through emergency fnnd/n§ channels and NSPA Revenue up 2J?% dr/ven by the last expected Ukraine order LulLilment and Strong Excellent margin - strong operational TECHNOLOGIES PLC O ... high confidence in full-year delivery and medium-term growth Team Wendy HY26 HY25 303 33 ▲ 589%) Weak HI order intake: Orders received Closing order book Revenue 080 5 (295%) 6L9 32 ( %) Further DoW orders expected later this calendar year AVON TECHNOLOGIES PLC Adjusted operating profit 3.7 3.2 J 5.6 0 / Revenue held back by weak commercial po q guy ) ggy orders. Significant acceleration through Q2 Margin improvement demOHStLbt/ng bCHC#IfS oLsite optimisation, and increased operating ... strong law enforcement pipeline gives H2 confidence, DoW ballistic helmet order cover into FY27 $30.0m $25.0m $20.0m $15.0m $10.0m $5.0m $0.0m Cash conversion impacted by timing of Team Wendy receipts Adjusted EBITDA HY26 HY25 Sm Sm 29.3 23.4 38 0 cash conversion:$ I8m DoW Snare-Dasea payments and d6fin6o Denefit Dension scneme costs s o ^ ^ receivables received Lirst week oL Cash flows from operations before exceptional items 1 1.2 13.0 Transformational costs Daid Cash flows from operations 8.0 6.5 Payments to pension plan (33) (30) Net finance costs 21) (23) Net reDayment of leases (13) Tax paid CaDital expenditure (02) ( ) (34) Purchase of own snares - Lonp Term Incentive Plan (2) Diviaends to sharenolaers (4.9) (49) Foreign excnanpe on casn (0.1) Change in net debt (7.9) (1.4) Opening net debt, excluding lease liabilities (50.1) (43.5) Closing net debt, excluding lease liabilities (58.0) (54.9) Working caDital and other adjustments ‹z 1.1) (13.7) April. ILthese were received a week Q6LiIQL C6S COHVQFSIOH WOUIC! 6VQ aeen ioo% AVON TECHNOLOGIES PLC deficit reduced to )S.7m (FY2S: ... which unwound immediately post period close Strong Balance Sheet Intangible assets Property, plant and equipment Net other non-current assets HY26 FY25 HY25 Sm Sm Sm 110.9 11S4 120.8 43.1 42.3 41.5 235 31.0 2P Inventory turns of3.0x: flat due to Inventories 59.1 55.5 58.7 Other current assets 56.8 523 47.3 Current liabilities (36.1) 48.0) (4S0) Net debt, excluding lease liabilities (58.0) (50.1) (54.9) Lease liabilities (16.2) (17.9) (19.8) Retirement benefit scheme (5.7) (13.8) (8.5) Net assets 177.4 1bb.7 1b8.4 Leverage 0.90x 0.8dx 0.99x Average working capital turns 5.1 5.2 5.0 Average inventory turns 3.0 3.0 3.0 focus on DoW ramp activities. Improvement expected in H2 Current liabilities down due to timing oLpaymentS Dond yield increases £3m injection into pension Scheme post period close to further strengthen AVON TECHNOLOGIES PLC ... net debt remains below lx leverage: creating future optionality Firmly on track to meet or exceed all targets in FY26 FY29 expected to be in line with previous guidance: Total $7m Spend in //ne with guidance. Higher weighting towards OpFx vS CapFx AVON TECHNOLOGIES PLC ... the last year of transformation-related exceptional costs Current threat environment supporting medium term growth The global geopolitical picture has shifted Active conflict zones are at their highest since World War II: Market growth drivers* 2024 Current trend trend Strategic shift of US positioning within NATO and towards international security engagement Growing budgets as Europe enters a rearmament cycle correcting decades of defence underinvestment Russian and Chinese projection of power Underlying defence trends Equipment-specific trends ouen P R O T E C T I O N AVON TECHNOLOGIES PLC Chemical weapon use and conventional warfare tactics in recent conflicts driving stock replenishment Mask and ensemble integration a key focus Increased demand for respirators that have improved combat effectiveness as well as chem/bio protection VNDY Increasing military personnel numbers driving US demand of both general purpose and rifle rated helmets US civil disruption and increasing gun crime driving law-enforcement upgrade cycles • O ... high threat environment drives long-term demand New development programmes M&A if it fits our criteria Increasing investment in R&D, sales, marketing, people and new product development Mostly complete; last two projects running to plan …Kaizen is forever Strengthen System launched Lots of opportunity for further improvement Increased efficiency, reliability and cost advantage With improvements every week... ouen P R 0 T E C T 1 0 N What actually happens WENDY What you expect AVON TECHNOLOGIES PLC All lines flowing with value streams. Standard work at everystation. Visual management, Leader CI training. Strengthen System training for all employees Regular Kaizen. Global SQDIP targets. Old ways of working detected quickly. STAR Academy CI tool training. Tier reporting. 5S. Kaizen plus 'Just do it'culture. Capacity creation. Kanban & workplace sustainment. Level loading. Root cause analysis. Kaizen for strategic suppliers & non-ops. Safe culture for experimentation. Just in time. Old ways of working caught immediately & addressed through kaizen. Progress drives next improvements. TIME ... we expect the results to compound over time Building capability... AVON TECHNOLOGIES PLC Core fundamentals & principles of Continuous Improvement - compulsory for every employee Training for aspiring supervisors and CONTINUOUS IMPROVEMENT CHAMPION STRENGTHEN SYSTEM TRAINING Joining at least 6 people managers STAR Kaizens or co- leading at least 3 STAR Academy learning modules to support Continuous Improvement skills. High potential talent Builds resilience, personal career planning and self-reflection Lean training course in Japan Leads 6 STAR Kaizen projects and attends 12 STAR Kaizens New and emerging managers Core skills to lead others through teams or line management Strategic thinking 'Real Numbers' finance and core economicstheory tosupport leadership and broader responsibilities ... through proprietary in-house people training Delivering on our operational targets ... Group Average Labour Productivity 1 Group Scrap (% of revenue) 2 Group Average Inventory Turns 3 $600k 5.0% 3.50 4.5% $500k 4.0% -62% 0 0 $400k 3.5% (vs. H 123) 2.50 3.0% $300k $200k $100k $0k +44% (vs. H123) H2 FY23 FY24 FY25 | H1 FY26 2 . 5 % 2 . 0 % 1.5% 1.0% 0.5% 0.0 O O H2FY23 FY24 | FY25 I H1 FY26 2.00 1.50 1.00 0.50 H2 FY23 | FY24 | FY25 | 3.Ox +6% (vs. H 123) H1 FY26 35% AVON TECHNOLOGIES PLC Targets: rolling d monLhS Servo value/ rolling d monLhS revenue >60% >5x ... more to do in Team Wendy once production stabilised Improving execution and confidence in Cleveland Achieved our 50% production increase target in March ... NG IHPS production rate TWO shifts ONE shift Stable rates with higher productivity ACH Gen II production rate Sep +80% Volume Volume increase vs. September AVON TECHNOLOGIES PLC Sep Mar ... increasingly confident we can sustain and increase production rates, improving operational gearing and margins in H2 Reducing production volatility in Cleveland FOCUS AND SUSTAINMENT PHASE old OBJECTIVE: Reduce variability, and improve reliability, while easing pressure on our people. WENDY" AVON TECHNOLOGIES PLC FOCUS AREAS: People Right people, showing up every day, with the right training Planning Stop running out of materials through better planning Equipment & IT Ops & Quality Fewer equipment Build resilience breakdowns into operations PROGRESS SO FAR: Leadership changes Focused workstreams Addressing root causes of volatility Output stabilising Improving employee engagement Increasing confidence ...stabilising output, improving confidence and margin performance A focused approach to our key improvement areas WENDY" EQUIPMENT & MACHINE RELIABILITY PROJECT Equipment uptime on Cutting Machines (%/Week) FROM Reactive fixes Irregular inspections Limited standard work & operator training TO Preventative Maintenance Routine cleaning & inspections Training on Best Practices & Standard Work 98.0% 96.3% 96.8% 96.4% 95.7% 94.8% 94.1% 92.2% 86.8% Uptime %/Week 96.0% 94.0% 92.0% 90.0% LOGIES PLC +10ppt $400k 100% Happier 88.0% uptime increase 0 p.a. saving of liquid CO2 operators eliminated 86.0% 1 2 3 4 5 6 7 8 Week # since project start AVON TECH ... is delivering improvements in production rates and quality Consistently delivering growth above the core market Key drivers of growth: Increased defence spend Growing CBRN threat Geopolitic Shifting LOGIES PLC Increasing threat environment Com R etitive advantage through CI Defending & ex R anding • Diversifying into new& core R ortfolio adjacent markets driving sustained demand 0 Freeing •R ^ 6t Sh to invest in growth Strengthened Gro •R Sales team M&A AVON TECH ... and have absolute confidence this momentum can be sustained Growing the core & diversifying into new and adjacent growth markets Investing in the future Products to drive future growth Innovating in integrated CBRN protection: P R 0 T E C T 10 N DoW mask upgrade Upgrade opportunity for aging fleet, improving lethality and combat effectiveness Light weight EXOSKIN CBRN suit Lightweight, designed to improve comfort, mobility and endurance for users in demanding operational environments AVON TECHNOLOGIES PLC Hood Mask Interface (HMI) Single source partner in US HMI program. Building credibility and capability in CBRN PPE integration cxoscIN-St (all Tip) NG filter development For changing user needs and threats ... becoming the leading full CBRN ensemble provider Driving growth above the market P R O T E C T 10 N Underwater respiratory AVON TECHNOLOGIES PLC rowth drivers Introduction of next-generation technology and product into our installed base and leading market position Enhancing user's respiratory protection in lower-threat, non-CBRN environments In collaboration with our user's, moving beyond masks into integrated CBRN protection Continuing to expand our global installed base of deep-sea rebreather technology Growing the core & diversifying into new and adjacent growth markets Expanding into adjacencies - RECON Tactical bump helmet: WENDY" Industry leading protection, quality & versatility Moulded shell with carbon fibre panel (Patent applied) Patented comfort Cooling fabric, lattice pads, and CAM FIT retentions set a new standard for user AVON TECHNOLOGIES PLC mfo Broad capability Three blunt impact certification ratings and universal accessory mounts, ideal for diverse mission profiles within Combat, Mountaineering and Whitewater New market: Global rescue teams & maritime military Petty Officer Scott Ruskan wears the Team Wendy LTP helmet as US Coast Guard rescue swimmer. In Aug '25 he helped evacuate 169 people during the central Texas floods. The new RECON means he can now carry one helmet instead of two on his missions. ... annual market size S35m-S50m Increasing ballistic protection across our commercial portfolio Launching new'EXFIL Endurance' later this year WENDY" Latest cooling pad technology to support extended wear and performance AVON TECHNOLOGIES PLC No thru hole attachment system - higher ballistic protection and lower weight Industry-standard reverse dovetail rails -allowing larger range of accessories to be used than previous EXFIL helmets ... greater protection, greater flexibility and better comfort Investing in the future Next generation ballistic helmets: Development funding awarded for NG IHPS Future US army head protection platform. 100 RIFLETECH helmets ordered for evaluation Next generation rifle rated protection Increased threat level at muzzle and standoff performance Integrated power and data management Partnered with Theon for Power & Data Products to drive future growth AVON TECHNOLOGIES PLC WENDY"' WENDY" ... an ambitious development pipeline Driving growth above the market WENDY" United States DoW AVON TECHNOLOGIES PLC Growth drivers Reliable delivery Competitive price and shortest lead times Push further into Navy and other US Forces New technology: o Head protection systems North America First Responders Increased sales force Disruptive innovation: Increased ballistic protection Revolutionary new blast impact pad system Best customer service and shortest lead times Rest of World/ International Sales force investment Headstrong product demonstrations Dealer optimization Geographic focus European focused products ... Through leading technology, delivery, sales channels and people Building the platform for M&A Building the platform to accelerate through M&A Process Continually improving Clear and compelling People Talented and motivated Strategy Unique strategy creation process that empowers teams Actions Effective, everyday actions through 0KRs (Objectives and key Results) People Giving our teams skills, confidence & empowerment through in-house training programmes O' IN Process Enabling and encouraging our people to improve processes every day AVON TECHNOLOGIES PLC ... compounding value through our Business Improvement System

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