Investor Presentation June 2022

H1 FY22 Highlights

• Increasingly strong new business pipeline, particularly North America
• Recovery in core contracted business
• Investment in resource and people through period to support new customer growth and technology development
• Implementation of operational technology and improved production rates to drive efficiencies in H2 and beyond
• Roll out of new "Digital Manufacturing Cell" to underpin margin realisation
• Initial wins in non-aerospace business - validate business model transfer
• Robust cash and liquidity

2022 JUNE - Plc Composites Velocity ©

• Revenue increase of +32% at £5.9m
  (H1 FY21: £4.4m) as sales recover and customer demand stabilises
• Gross margin 23.5% (H1 FY21: 25.1%) some contractual margin squeeze and shorter term labour inefficiencies held to support recovery
• Loss before tax improvement +£0.4m to £0.7m (H1 FY21: loss £1.1m) and +£0.4m EBITDA loss improvement to £0.2m (H1 FY21: loss £0.6m), supported by sales improvement and lower Administrative overheads

• Cash at Bank £2.0m (H1 2021: £3.5m) and £2.5m undrawn IDF headroom, movement driven by working capital investment to support sales recovery. Partly due to timing on customer receivables, with position higher at £2.7m at 24 June
• Outlook - currently in line with expectations

Market Outlook

Air Travel Recovering

• Air travel impacted by Covid-19 but now recovering, albeit slower in Asia due to Omicron restrictions
• Single aisle (A320/B737) will recover faster than twin aisle travel (A350/
  B787)
• Knock on effect on airline fleet renewal and aircraft build rates, particularly with high oil price
• Composite heavy platforms mainly twin aisle, but sustainability means all new platforms will be composite

2022 JUNE - Plc Composites Velocity ©