Velocity Composites : Investor Presentation at Mello Investor Day 24th May 2023

About this update from Velocity Composites Plc

Mello Presentation 24 May 2023 Executive Summary FINANCIALS Trading in line with expectations for H1 FY 2023 Sales are expected to be £7 million, up 15% Five-year Agreement with GKN Aerospace expected to be worth in excess of US$100 million in revenue over 5 years Sales only commenced at the end of H1 FY23; Significant investment in developing the US Facility As a result reported EBITDA is expected to be a loss of £0.9m for H1 FY23 (H1 FY22: £0.2m loss) CLIENTS Customers include GKN Aerospace, Safran, BAE Systems, Spirit, Aernnova. High barriers to entry including global approval with Airbus, Boeing and NADCAP Velocity's main competitors are customers performing the work in-house. By using Velocity proprietary services and technology, manufacturers reduce costs and free up resource to focus on their core business MARKET OPPORTUNITY Contracted business should deliver a three-fold increase in sales from 2022-2024 The aerospace sector to achieve net zero by 2050. Demand for composites will grow as new generation aircraft are built Aerospace sector potentially worth $6.5b per annum There are opportunities outside aerospace, Total Annual Composites Market Opportunity of $41 billion THE FUTURE Growth will increasingly come from new facility in Alabama with capacity to double in size The commercial value of contracted business is currently estimated to be worth between £30m to £36m per annum at OEM planned production rates Healthy short-term pipeline of new business opportunities in Europe and North America Composite material usage is expected to grow significantly in civil aircraft and other transportation modes © Velocity Composites Plc - MAY 2023 © Velocity Composites Plc - MAY 2023 2 Experienced Board Andy Beadon Jon Bridges Adam Holden Annette Rothwell David Bailey Non-Executive Chairman CEO Group Finance Director Non-Executive Director Non-Executive Director Andy has over 30 Jon has over 25 years' Adam has 19 years Annette has extensive David has contributed years experience in experience within the of experience in the experience in to the strategic direction finance, technology and advanced composites accounting profession, industries undergoing of the UK's aerospace manufacturing. He is a industry and is an including KPMG, Northern transformational change. industry and cross- Chartered Account, and experienced composite Rail and the private equity Since 2011, she has served sector composites sector worked at Executive engineer. Jon is a founder backed food as a director on the board as a Board member Board level for 20 years of Velocity and known for manufacturer, BBF. of the Midlands Aerospace of the Aerospace in a series of advanced his extensive knowledge Alliance, the regional Growth Partnership and material technology around composite process body for the Aerospace, Composites Leadership businesses, both listed technologies. Defence and Security Forum. He has a PHD in and privately owned. industry. She is has aeronautics and an in-depth held a number of senior practical knowledge around aerospace roles with operational excellence and global responsibility for sustainability within multiple supply chain management manufacturing sectors. and procurement. © Velocity Composites Plc - FEB 2023 © Velocity Composites Plc - MAY 2023 3 The Demand for Velocity Composites' Services Market Growth opportunities continue to arise in both the aerospace (civil and defence) and non- aerospace sectors. The Industrial material composite sectors are a high growth markets, with the use of these advanced materials replacing heavier metal parts in Aerospace and other sectors such as automotive. This change is still in its infancy and independent analysts predict rapid growth in composite usage in manufacturing over the next two decades. Sustainability As both aerospace and other transport systems move to carbon neutrality, vehicles need to be lighter and stronger in order to utilise alternative power sources Outsourcing Provides the customer with the opportunity to reduce waste and focus on their core business to support the growth in the use of advanced composite structures Digitisation Velocity's technology and services reduce waste in all forms from the global composites supply chain and increases quality and conformity Efficiency © Velocity Composites Plc - MAY 2023 Velocity's technology drives efficient management and use of raw materials, delivering 10%-20% cost reduction to customers 4 Composite Materials A combination of a matrix and a reinforcement, which when combined gives properties superior to the properties of the individual components In the case of an aerospace composite, the reinforcement is the fibres and the matrix is the thermosetting resin Better weight saving, strength, corrosion resistance and fatigue resistance when compared with metals Less weight equals less cost for airlines and increased range One shot process - properties fixed when resin cures COMPOSITE USE IN PLANES COMPOSITES 50% 5 © Velocity Composites Plc - May 2023

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