Pennant International : Interim Results Presentation 2025

About this update from Pennant International Group Plc

SEPT 2025 INVESTOR BRIEFING INTERIM RESULTS TO 30 th JUNE 2025 Copyright 202 4 5 © Pennant International Group Plc. All other trademarks are the property of their respective owners. PRESENTATION TEAM Philip Walker - Chief Executive Officer Originated and implemented strategy to transition Pennant from a project based, capital intensive operation to a high margin software and technical services business Darren Wiggins - Chief Financial Officer Chartered accountant with significant financial and operational management experience Previously worked for Melrose plc and latterly Meggit Aerospace in the UK and Singapore Joined the company in November 2024 - CONFIDENTIAL 3 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. EXECUTIVE SUMMARY GenFly MOD contract slippage impacting FY25 performance Solid progress executing strategy: Completed integration of GenS and Analyzer applications, released Q2 50% of installed base transitioned to Auxilium Implementation of 'go to market' plan, expanding partnership base and global reach Auxilium sales with new customers in new territories and adjacent markets Completed property disposal programme Growth in Auxilium software ARR to £2.3m Strong bid activity across the business - contract values exceeding £10m in advanced negotiation CONFIDENTIAL 4 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. WHY IT MATTERS? Improved mission capability/readiness • • Enabling data driven decisions Reduce total cost of ownership Ensuring data integrity and compliance To maximize operational efficiency WHAT WE DO? Provides systems support software, technical services & training solutions to highly regulated industries and major OEMS PENNANT OVERVIEW GLOBAL BUSINESS UK (HQ), Canada, USA, Australia 100+ Employees REVENUE 80% Defence, 10% Rail, 10% Aerospace GEOGRAPHIES (% REV) 35% EMEA, 30% APAC, 35% NA CONFIDENTIAL 5 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. HOW WE OPERATE " We ensure mission critical systems are where they are needed, when they are needed and that they work." TECHNICAL SERVICES Our services support all our software and training solutions, including: consultancy support & maintenance training bespoke development TRAINING SOLUTIONS Our training solutions provide: hardware, software and virtual solutions. critical skills training for maintainers and operators of aircraft, ships and land systems. We address the market through three key segments: AUXILIUM SOFTWARE Our software tools are designed to help clients: manage and use complex data. ensure equipment availability at optimal cost. comply with industry standards. CONFIDENTIAL 6 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. PENNANT IS REPOSITIONING Strategic shift towards highly scalable software and technical services model Better quality of earnings, gross margin 50%+ Short working capital cycle Technical Services Software Recurring, Repeatable & Predictable Revenue Training Solutions Pennant's heritage Significant installed base Repositioning to support aftermarket -modifications, retrofits and overhauls (MRO) Long working capital cycle Project Based Revenue - CONFIDENTIAL 7 Copyright 2024 © Pennant International Group Plc. All other trademarks are the property of their respective owners. WHAT WE HAVE DONE Investment of over £7m in Auxilium software Acquired market leading publications software Developing reseller, agent and partner relationships to drive global expansion Regional operating model Technical Services Software Recurring, Repeatable & Predictable Revenue Training Solutions Restructured cost base Rationalised footprint Repositioning to agile business Outsourced production Key talent and skills retained Project Based Revenue - CONFIDENTIAL 8 Copyright 2024 © Pennant International Group Plc. All other trademarks are the property of their respective owners. FINANCIALS Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. HIGHLIGHTS Adjusted (1) results Statutory results H1 2025 H1 2024 H1 2025 H1 2024 £m £m £m £m Revenue 4.5 7.4 4.5 7.4 EBITDA (1.1) 0.6 (1.2) 0.6 Loss before tax (1.8) (0.2) (2.2) (0.4) Net Assets 6.3 10.5 Net Debt (excluding lease liabilities) (2.1) (1.6) Year over year trends in line with budget expectation following completion of contracts at end of 2024 / beginning of 2025 - albeit amplified by Training contract award delays Annual recurring revenue from software sales are increasing - Auxilium sales with several new customers in new territories and adjacent markets Capitalised investment into Auxilium software of £0.6m - successfully completing GenS and Analyzer integration for Q2 release Completed property disposal programme, realising £3.1 million (£1.1 million post Period end), a net gain versus fair value Post Period-end, the Group has proposed actions to strengthen the balance sheet and ensure that ongoing operations are appropriately funded via £1.25 million equity raise The loss before taxation is stated prior to £0.2 million of exceptional costs associated with the restructuring exercise initiated in H2 2024, £0.3m of acquired intangible amortisation charge, and a profit relating to the sale of freehold property of £0.1 million. The Pennant Board considers the adjusted results to be an important measure to exclude non-trading or non-recurring items and therefore better monitor and compare performance between reporting periods CONFIDENTIAL 10 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. Income Statement £m H1 2025 H1 2024 Revenue 4.5 7.4 Cost of sales (2.5) (3.9) Gross Profit 2.0 3.5 Exceptional costs (0.2) (0.2) Profit on sale of Land & Buildings 0.1 0.2 Acquired Intangible Amortisation (0.3) (0.3) Other administrative expenses (3.7) (3.5) Administrative expenses (4.1) (3.8) Other income 0.1 0.1 Operating Loss (2.0) (0.2) Net Finance costs (0.2) (0.2) Loss before taxation (2.2) (0.4) Tax credit / (charge) - - Loss for the year (2.2) (1.0) STATUTORY INCOME STATEMENT CONFIDENTIAL 11 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. SEGMENTAL REVENUE PERFORMANCE Revenue £m H1 2025 H1 2024 Movement Systems Support Software 1.2 1.2 - Technical services 2.7 3.7 (1.0) Software & Services 3.9 4.9 (1.0) Engineered solutions 0.4 2.4 (2.0) Generic products 0.2 0.1 0.1 Training Systems 0.6 2.5 (1.9) Total Revenue 4.5 7.4 (2.9) CONFIDENTIAL 12 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. SOFTWARE - ANNUAL RECURRING REVENUE ("ARR") 2.5 2 1.5 1 0.5 0 2021 2022 2023 2024 2025 Annual recurring revenue (ARR) is the annualised revenue generated from software subscriptions and maintenance contracts Annual recurring revenues ("ARR") of £2.3 million (2024: £1.9 million), a new high for the Group - CONFIDENTIAL 13 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. STATEMENT OF FINANCIAL POSITION £m H1 2025 H1 2024 Current assets 4.6 5.1 Non-current assets 8.2 12.8 Total assets 12.8 17.9 Current liabilities 6.0 6.7 Non-current liabilities 0.5 0.7 Total liabilities 6.5 7.4 Net Assets 6.3 10.5 As part of the restructuring exercise announced in 2024, certain UK-based facilities within the Training System segment were marketed for sale at a total fair value of £2.9m after estimated selling costs £3.1 million of gross sales proceeds had been contracted, of which £2.0m was realised as cash in H1 £1.1 million of gross sales proceeds have since been received in cash in H2 2025 CONFIDENTIAL 14 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. CASH GENERATION IN THE PERIOD Operating Cash Flow £m H1 2025 Operating cash before changes in working capital (1.3) Changes in working capital 0.5 Tax received 0.2 Interest paid (0.2) Net cash used in operating activities (0.8) Continued management focus on working capital discipline Further investment in the development of our integrated Auxilium software £0.6m (2024: £0.7m) Operating within the HSBC overdraft facility limit of £2.5m as at Period end Post balance sheet events will strengthen the balance sheet Reconciliation of net debt £m H1 2025 Opening net debt (1 January 2025) (2.3) Net cash used in operating activities (0.8) Net cash generated from investing activities 1.0 Net cash used in financing activities - FX 0.1 Closing net debt (2.1) Completion of the sale of UK properties, £3m cash proceeds net of costs (profit on disposal of £0.1m) Proposed fund raise from existing shareholders, £1.25m before fees CONFIDENTIAL 15 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. AUXILIUM Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. WHAT IS INTEGRATED PRODUCT SUPPORT (IPS)? Total Ownership cost - circa 20% Systems Development - Asset Acquisition Engineering for sustainment Design for supportability Total Ownership cost - circa 80% Systems Support - Operation and maintenance Technical documentation Supply chain / materials management Tools and support equipment including calibration C measurement Personnel - resources, health C safety, qualifications C training Mission Capability / Operational Readiness A strategy to ensure that systems are supported efficiently and effectively throughout its lifecycle. 17 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. OUR SOLUTIONS IN ACTION "Asset availability starts with data configuration" - CONFIDENTIAL Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. INDUSTRY STATISTICS: Maintenance Downtime Reduction: 20-30% Lifecycle Cost Savings: 10-25% System Availability Improvement: 15-40% Technical Documentation Time Saved: 30-50% Training Time Reduction: 20-35% Spare Parts Optimization: 15-25% Integration Reusability: Up to 98% across PLM, IETMs, LSAR Save Time. Reduce Cost. Data Driven Decisions. - CONFIDENTIAL 1G Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. WHY AUXILIUM? Intelligent Data-Driven Decisions, make informed decisions to optimize your support strategies. IMPROVED MISSION CAPABILITY Maximizing operational efficiency, reduce unexpected breakdowns and extend the lifespan of your assets. ENHANCED READINESS & RELIABILITY Reduced Costs, minimize downtime, reduce spare parts inventory costs and optimize resource allocation. REDUCE TOTAL OWNERSHIP COST Alignment to international standards and specifications, comply with industry regulations and standards. QUALITY & COMPLIANCE - CONFIDENTIAL 20 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. LOOKING FORWARD Copyright 2024 © Pennant International Group Plc. All other trademarks are the property of their respective owners. STRATEGIC PRIORITIES Winning higher margin after market contracts - servicing installed base Diversify and expand customer base Evolve subcontracting model Training Systems Project Based Revenue Recurring, Repeatable s Predictable Revenue Systems Support Software Technical Services Organic Expanding reseller, agent and partnership relationships to globally expand market channel within and beyond existing jurisdictions Enhancing support software functionality, including upgrades to support portal and customer tools Opportunities Adding coverage of the global standards Up and downstream software products capable of integration Accessing opportunities in adjacent territories and / or markets with embedded customers - CONFIDENTIAL Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. SOFTWARE GROWTH TARGETS 23% CAGR 2024-2027 Cumulative Net New Users 2025 2026 2027 Direct Indirect Relies on Partnerships - CONFIDENTIAL Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. OUTLOOK Full year 2025 - contracted revenue of £9 million = high confidence of >£10 million Accelerated growth in Auxilium software ARR via advancement of 'go to market' strategy Pipeline conversion - several Training Systems contracts at advanced bid stage; total contract value > £10m, gives confidence for beyond 2025 Includes GenFly Refresh (UK) - negotiations progressing to an estimated Q4 contract award 2026 market guidance returning to a positive adjusted PBT and cashflow (including £1.3m investment in Auxilium). - CONFIDENTIAL 2 2 4 5 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. P enn nt Maximizing operational efficiency Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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