Slides
Page 1
7 October 2026 Improve. Grow. Compound.
Page 2
Demonstrated improvement creates a strong organic platform and capacity to grow Built to improve. Positioned to compound 2 Grow Drive growth, cash generation and returns on capital • Attractive organic growth opportunity • Invest behind the opportunities we have a right to win C ompound Compound value over the long term • Acquire selectively in protection technology • Improve and grow what we buy Improve • Built a strong team • Executed the strategy • Codified the way we improve businesses Our Business Improvement System works
Page 3
Today’s agenda 3 Targets & capital allocation 16.30 Rich Cashin 17.15 Drinks & technology showcase 16.45 Summary & Q&A 14.30 Jos Sclater 16.20 Steve Elwell Casey Galligan 14.45 Rich Cashin 15.40 Coffee break Grow: Our organic growth plan Compound: Building a leading protection technology platform Jos Sclater Markets: Structural growth in protection markets Avon Protection : Maximise the core and win the programmes that matter Vasilios Brachos Enrique Carrera Team Wendy: A broader portfolio. A more resilient business. Improve: A stronger business. A proven system. 15.50
Page 4
Today’s presenters 4 Jos Sclater Chief Executive Officer • Joined Avon 2023 • Previously Group CFO at Ultra Electronics, Castrol and GKN • Extensive M&A and business improvement experience. Qualified lawyer • Joined Avon 2022 • Previously President of Strategy at Ultra Electronics and FD/IR at Meggitt • Extensive strategy, finance and transformation experience Rich Cashin Chief Financial Officer • Joined Avon 2021 • Previously VP at e2v (Teledyne) & leadership roles at QinetiQ and BAE • Extensive commercial, sales and finance experience Steve Elwell President, Avon Protection • Joined Avon 2021 • Retired US Green Beret • 20 years experience in special operations with combat deployments in Afghanistan Lt Col (ret) Casey Galligan DoW Director, Avon Protection • Joined Avon from Ceradyne in 2020 • 25+ years of ballistic helmet expertise • World leader in composites and ballistic helmets with multiple registered patents and published papers Vasilios Brachos President, Team Wendy Enrique Carrera COO, Team Wendy • Joined Avon 2024 • Previously at KPMG • Experience in operations, M&A and transformation programmes A strong team to lead the next phase of our strategy
Page 5
Improve: A better business. A proven system.
Page 6
We started with an underperforming business in 2023 But we saw potential 6 Revenue - 7.5% FY21 FY22 FY23 Adjusted EPS - 26% FY21 FY22 FY23 Adjusted EBIT - 9.8% FY21 FY22 FY23 FY23 O perating margin 8.7% FY23 ROIC 8.7% FY23 Cash conversion 7%
Page 7
We needed to do something different to create value A business won’t change if it keeps doing the same things 7 Adjusted Operating Profit 2020 What got us here... ... will not get us here
Page 8
8 STAR created clarity around the direction We executed strongly A higher - performing business with Continuous Improvement embedded Transformation programme to address accumulated performance gaps Leading market positions in growth markets with clear organic growth plans More opportunities and a wider product portfolio for future growth
Page 9
Strategy and execution transformed Avon's performance 9 In three years, we tripled earnings and returns on capital Not to scale Revenue c.$350m
Page 10
Revenue Leverage ROIC Cash conversion Operating profit margin FY27 targets: >5% CAGR 14 - 16% >17% 1 - 2x 80 - 100% 10 We significantly exceeded our original targets a year early Giving us confidence that our improvement system is worth codifying FY26 trading update: >12% growth >16% > 17 % <0.5x > 85%
Page 11
11 And codified it so we can successfully apply it to other businesses We have proved our Business Improvement System works • Close accumulated performance gaps through sequenced, time - bound projects • Start with visible, high - impact opportunities • Move quickly enough to signal decisive change without overwhelming the organisation • Decentralise accountability & decision - making • Support with resources and capital • Prune portfolio distractions & focus resources • Build the capabilities needed to sustain the system • Require leaders to coach and participate • Create future leaders able to deploy the system into other businesses • Create a business that improves every week using the Strengthen System • Embed daily management, problem solving and coaching • Release cash and people to reinvest in growth • Teach leaders to develop and own their strategy • Translate direction into annual priorities and financial plans • Review outcomes quarterly and refine assumptions
Page 12
12 Improve our existing businesses. Operate consistently. Operate the group at ever increasing scale. Improving… • Safety • Quality • Delivery • Inventory turns • Productivity Growing... • Sales • Diversification Freeing up... • Cash • Capacity • Management bandwidth All w hilst driving margin and ROIC. Invest… • Sales & marketing • New products • Further platform growth Build Continuous Improvement with the Strengthen System
Page 13
Our Strengthen System enables rapid improvement – forever A proven, repeatable model we can deploy across other businesses 13
Page 14
14 Avon develops leaders capable of implementing the system Leadership capacity enables us to scale Our development framework • Builds a repeatable capability to deploy the Business Improvement System beyond the current leadership team • Creates the leadership capacity and culture required to integrate and improve acquired businesses Capability levels and courses: Continuous Improvement: Strengthen System training, learn by doing through Kaizen and Japan benchmark tour to build CI capability at all levels Manage on the shop floor Apply daily management, coaching and continuous improvement Lead self Build personal effectiveness, resilience & accountability Lead teams Align teams, develop talent & drive accountability Lead businesses Apply strategy, finance, transformation & commercial excellence through Avon’s Mini MBA Improve businesses Deploy the Business Improvement System across businesses Transformation: Avon Programme Management and Strategy in Action training to drive business transformation
Page 15
15 Disciplined capital allocation strengthens the portfolio and enhances long - term value creation Improve | Grow | Compound We are expanding Avon’s value creation opportunity Business Improvement System to deliver cash, productivity and capacity benefits Strong market leadership positions and a large installed base support resilient recurring revenue growth Focused investment expands our participation in attractive, higher - value opportunities
Page 16
Grow: Expanding our participation in attractive protection markets Market trends & opportunity Avon Protection: 5 year plan Team Wendy: 5 year plan
Page 17
17 *Source: Roland Berger Higher defence & security spend Military modernization: replacing aging equipment More complex threats (inc. CBRN, blast, hazchem ) Need for lighter, integrated systems: protection AND mobility Greater focus on readiness, resilience & stock levels Driving global defence spending and sustained demand Rising geopolitical tension, global conflict and civil unrest
Page 18
18 Respiratory protection CBRN suits Underwater rebreathers Head protection Lifecycle sustainment & spares Current core markets $5bn - $10bn Global TAM Protection systems Eye and face protection Hearing protection Body protection Bomb protection Connected soldier Integrated soldier systems Communications Power and data Specialist missions Integrated underwater systems Protection technologies comprise the equipment, systems and consumables that protect military personnel and first responders operating in hazardous and high - threat environments. * Management estimate derived from aggregating military PPE, law - enforcement PPE and specialist protection market segments, adju sted for overlap • High barriers to entry & competitive moat: Certifications, performance and trust create durable positions. • Recurring revenues: Installed base drives long - term lifecycle demand. • Fragmented market: Specialist providers support consolidation opportunities. Market characteristics: Close adjacencies $15bn - $20bn TAM Total protection technology market $20bn - $30bn TAM* The mission critical protection technologies market is large, growing and fragmented This creates a long runway for growth
Page 19
19 Bump helmets (Military & Commercial) FY26 - 30 $134m $388m FY19 - 25 $112m $290m +6.0% CAGR $178m $213m Our selected core addressable markets are growing steadily FY26 - 30 $42m $61m $103m FY19 - 25 $38m $51m $89m Respirators (Commercial) +3.0% CAGR FY26 - 30 $73m $159m $232m FY19 - 25 $81m $114m $195m Respirators (Military) +3.5% CAGR Rest of World FY26 - 30 $96m $232m $356m FY19 - 25 $88m $212m $300m Ballistic helmets (Commercial) +3.5% CAGR Ranging from 3 - 6% CAGR FY26 - 30 $238m $629m $ 945 m FY19 - 25 $208m $550m $758m Ballistic helmets (Military) Source: Roland Berger and internal analysis. Selected respiratory and head - protection segments only. Excludes CBRN suits, underwater rebreathers, lifecycle sustainment and spares, and other markets included within the broader $5bn - $10bn current - market TAM on slide 14. Avon Protection geography based on Roland Berger analysis. +4.5% CAGR US market
Page 20
We have a durable competitive advantage Programme lifecycles, IP, qualifications & installed base creat e recurring revenues and barriers to entry 20 Customer intimacy • US DoW , NATO & allied users • Helping define future requirements and programmes • Trusted on mission - critical programmes Technology & IP • Customer funded R&D • Proprietary material science and process technologies • 66 granted patents • 47 pending patents • 58 design registrations Qualification barriers • US DoW testing and production approval • NIOSH - certified respiratory systems • European CE & UKCA qualifications Installed base • > 4m active respiratory users • High switching and requalification costs • Long - lived programmes & mandatory replacement cycles Operational excellence • Proprietary flow manufacturing • High product variety without cost penalties • Lower working capital & inventory requirements • Scalable production supporting demand
Page 21
A solid base of recurring revenue With significant growth programmes moving into sustainment 21 Group revenue ($) • Sustainment & replacement demand • Spare filters, helmet pads and accessories • Servicing FY23 FY26 IHPS/ACH New customers, programmes and adjacent products drive new organic growth
Page 22
22 Grow: Maximise the core & win the programmes that matter
Page 23
Our respiratory platform is scalable to meet the needs of the user and their mission 23 One respiratory platform. Every mission profile. ROUTINE OPERATIONS AIR - PURIFYING CBRN EXTENDED DURATION HIGH - THREAT ENVIRONMENTS MAXIMUM MISSION FLEXIBILITY INCREASING PROTECTION CAPABILITY MITR SYSTEM Air Purifying Respirator (APR) APR & Powered APR (PAPR) Combination System (APR, SCBA & PAPR) APR & Self - Contained Breathing Apparatus (SCBA) Lightweight: easy to carry & quick to deploy Proven military standard Extended mission duration Protection in oxygen - deficient environments Maximum flexibility across a broad threat spectrum INCREASING USER BURDEN
Page 24
The global leader in CBRN respiratory protection 24 Trusted by NATO, US DoW , UK MoD and allied users worldwide $400m accessible market #1 global market share >4m active users Long - term, sole source contracts >75 active countries
Page 25
25 Leveraging our leadership position to capture adjacent growth markets Unlocking >$800m of market opportunity with strong strategic fit • Respiratory leadership provides natural entry point • Boots & gloves widely deployed across NATO nations • Early EXOSKIN adoption creating momentum Integrated CBRN >$800m market opportunity +4% market CAGR • Proven MCM100 platform • Deployed across NATO and five eyes • Significant international growth opportunity Underwater respiratory >$40m accessible market +3% market CAGR
Page 26
26 Rising global threats are driving demand for advanced respiratory and CBRN protection United States • Integrated protection modernisation • Installed base replacement cycle • Operator health & domestic capability • Defence modernisation & rearmament • Rising CBRN & security needs • Localisation requirements shaping procurement Emerging markets • Rearmament & defence spending growth • Rising CBRN threat landscape • NATO modernisation & interoperability Europe & five - eyes Source: Roland Berger, Ipsos World Affairs 2020 66% 2025 72% Nuclear or chemical attack somewhere in the world Perception of risk is increasing... 2020 58% 2025 66% Domestic terror attack in my country 2020 44% 2025 52% My country entering armed conflict with another country Avon Protection has trusted technology, proven pedigree & deep customer relationships ...and global market needs are evolving Respondents describing the risk of the following events happening in the next 12 months as ‘very real’ or ‘somewhat real’: CBRN: Growing demand for advanced protection Avon has 60% share of Global Military market Law Enforcement: Faster response to security threats Avon has 65% share of Global Commercial market Combat Effectiveness: Need for g reater mobility as well as protection
Page 27
27 Why Avon Protection wins Why? • We understand the mission and the user • Moved from products to systems before the market did • Help shape requirements • See where protection is headed next Protecting the warfighter is in our DNA Customer requirements expanding beyond traditional CBRN: • Greater focus on combat effectiveness and operator health • Integrated systems replacing standalone products - Avon Protection is one of few providers able to meet this need • Growing concern over cumulative exposure and long - term readiness Combat effectiveness CBRN protection Nothing MITR M53A1 M50 DoW Mask
Page 28
MITR has created a new product category - extending respiratory protection beyond traditional CBRN missions 28 • Adopted by multiple Five Eyes special ops users • Growing use across specialists Focused on the exposures operators face every day (including training, where risk is often greatest) Biological agents Anthrax and ricin Particulates & smoke Including asbestos fibres Riot control agents CS, CN and OC Breaching Organic vapors Supports law enforcement, training and occupational health applications If the M50 franchise is focused on surviving the worst day of your career, MITR is focused on protecting you throughout your career
Page 29
We will enhance the core business 29 Accelerate growth Maximise the core Improve • Improve safety, quality, delivery, inventory and productivity • Create capacity and cash to support growth • Maintain operating discipline as volumes increase • Extend US DoW and NATO respiratory leadership • Maximise value from the installed base • Sustain strong margins and cash generation • Win the selective programmes that transform our growth • Scale targeted adjacencies • Build the future product portfolio And win the programmes that matter
Page 30
Continuous improvement is delivering materially higher quality results 30 Improve Scrap (as % of revenue) HY23 FY26 1.0% 2.3% $2M annual cash saving On - time delivery HY23 FY26 97% 96% Productivity (Revenue per direct employee) HY23 FY26 $778k $521k Average inventory turns HY23 FY26 4.2 2.9 $10M cash saving Lower cost and stronger cash conversion while sustaining customer service
Page 31
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Revenue ($M) Market leadership and a large installed base drives resilient core growth Providing a high - confidence and credible foundation Maximise 31 US DoW , North America & LATAM • Long - standing customer relationships • Long - term contracts in place • Recurring replacement & sustainment demand • High qualification barriers European NATO & International • NATO qualification & operationally proven • Allied - force interoperability • Growing installed base and user confidence • Long - term contracts and established channels
Page 32
A resilient recurring revenue base in US DoW and law enforcement 32 With confidence in long - term contract outlook Maximise Enduring competitive advantage • Long - term, sole - source DoW contracts • Filter contract backlog at record high • NIOSH certified product 1.8m M50 respirators in US military service 150k M50s annually reach 20yrs MITR Selected by US SOCOM Accelerating growth drivers • Mask and filter re - stocking • Focus on combat effectiveness • MITR adoption beyond SOCOM
Page 33
Strong European momentum: Avon is well established & growing fast 33 Maximise Well positioned to convert European defence investment into sustained growth >90% Growth in European sales since 2023 +20% Increase in defence spend forecast into FY27 Established competitive position • Over 0.5 million respirators in service • NATO qualified and operationally proven • Boots & gloves at record high backlog • Established, long - term NATO & NSPA routes to market Accelerating growth drivers • Local partnerships supporting sovereign requirements • Wide adoption of MITR across military and law enforcement users • Heightened CBRN and modernisation needs • Allied - force interoperability
Page 34
Grow: a small number of step - change programme wins could materially increase Avon’s scale 34 Our stable core provides a platform for consistent growth Accelerate FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Revenue ($m) Revenue ($M) Core business Step - change growth opportunities US Rebreather US Suits Next gen US respiratory NATO Combination Systems
Page 35
Our EXOSKIN suits range integrates seamlessly with our respirators Giving users unparalleled protection in modern combat environments Accelerate Evolving CBRN threat environment Increasing investment driven by geopolitical tensions and chemical threat scenarios Need to figh t while protected Modern forces require enhanced mobility, endurance and mission effectiveness Shift to integrated protection systems Modernisation programmes demanding equipment interoperability, lowering user risk Respirator leadership creates unique advantage Enables Avon to optimise the most critical protection interfaces Low burden protection for modern operations Lighter, more breathable designs enhance mobility, endurance and comfort Purpose built integrated ensemble Suits, boots and gloves are designed to work seamlessly with Avon respirators Trusted by the world’s leading forces Proven CBRN expertise, installed base and customer relationships accelerate adoption 35
Page 36
US suit represents a significant near - term opportunity Accelerates access to >$800m global ensemble market Accelerate 36 Competitive evaluation process - fewer competitors through each phase Focused on Special Ops: low burden, combat effective protection Future modernisation: expected to lead to next gen CBRN protection development Avon has successfully progressed to phase 3: MIST & Advanced user trials 2026 2027 2028 Phase 1: 7 suits Phase 2: 350 suits Phase 3: 1,500 suits 2031 Production >100k suits
Page 37
Increased focus on subsea security Mine warfare, infrastructure protection and special operations are accelerating demand Mission complexity is increasing Divers need greater endurance, safety and operational capability Legacy fleets are reaching replacement age Navies are modernising to next - generation platforms Our rebreathers are the most advanced on the market With continued adoption across NATO Accelerate Technology leadership Digital architecture, automation and protected IP create a clear competitive advantage Reduced total cost of ownership Lower maintenance, less training, faster setup and automated diagnostics B enchmark for diver safety Real - time physiological monitoring, integrated CO2 sensing and diver tracking reduce mission risk Purpose built military performance Closed - circuit, mixed - gas capability, extended endurance and military - first design supports EOD and Special Forces operations 37
Page 38
The US represents ~25% of the obtainable market We are investing to grow domestic rebreather capability in the US Accelerate Deep - sea market (‘27 - ’31) $450m 38 Proven capability in - service with multiple NATO and five - eyes nations Embedding our localised US production and support capability Early traction achieved in competitive tender process Evaluation trials Early downselect LRIP Full rate production Assessment 2026 2027 2028 2031
Page 39
NATO combination systems opportunity provides platform to enhance user capability Growing higher - value systems business across Europe Accelerate 2026 2027 2028 2030 NSPA mask and filter contract NSPA combination systems Expand user base into higher - value CBRN respiratory systems Strong military user advocacy and established trust Independent CE certification already secured FM50 European installed base exceeds 0.5m users 39
Page 40
Defining the future of US CBRN protection Accelerate Customer - funded development provides an early pathway to the next major US CBRN opportunity Influencing future requirements Collaborating directly with US customer to shape next - generation capability needs Establishing system leadership Driving CBRN system interoperability Reducing program risk Building evidence through funded development and user trials 40 Improving competitive position Building insight and IP ahead of formal program launch
Page 41
A campaign - led approach turns major opportunities into executable programmes Our ability to align resources and form cross - functional teams differentiates us from larger competition Accelerate 41 A disciplined route from early customer shaping to confident delivery: DELIVER WITH CONFIDENCE • Capacity & supply chain • Delivery confidence • Margin, cash & returns SECURE THE AWARD • Win strategy • Price to win • Bid readiness & gates BUILD THE WINNING PROPOSITION • Roadmap integration • Customer trials & demonstrations • Partnering & alignment SHAPE THE OPPORTUNITY • Early customer engagement • End - user insight • Requirement shaping DEDICATED CAMPAIGN LEADERSHIP EXECUTIVE SPONSOR Resource prioritisation PROGRAMME LEADER Full accountability CROSS - FUNCTIONAL TEAM Mobilises resources
Page 42
The core provides the base plan; selected programme wins provide material additional upside Improve. Maximise the core. Grow Global leadership The global leader in mission - critical respiratory protection Scalable platform One platform serving more missions Core market growing Strong, recurring demand in the core Selected adjacencies Extending leadership into closely related markets Step - change growth opportunities Focussed on programs that can materially broaden Avon Protection Continuous improvement embedded 42
Page 43
43 Grow: A broader portfolio and a more resilient business
Page 44
Combining Ceradyne's ballistic expertise with Team Wendy's impact protection leadership We have created a differentiated platform for future helmet programmes No - Thru - Hole design • Unique and trademarked • Maintains 100% ballistic coverage • Secure rail and NVG attachment • No drilled structural weak points Seamless shell technology • Preserves fibre continuity • Enhances ballistic performance • Industry leading ballistic protection at the lowest possible weight Competitors: Darting creates vertical seams Team Wendy: Proprietary fabric forming eliminates seams and minimizes wrinkles Zorbium foam • Leaders in impact protection • Recognised for fit and comfort • Tailorable impact management based on tunable foam density enables flexible designs & accelerated scale - up Proprietary in - house tooling • Impact absorption pad system & impact protection level to 14 fps • First rifle rated combat helmet & No - thru hole rifle helmet fielded by US Army US military firsts 44
Page 45
45 Global unrest is driving helmet sales in the US and globally Team Wendy's expanding portfolio and protection technologies position us to meet a broader range of needs United States Emerging markets Europe & five - eyes • Border & homeland security rising defense budgets and modernization • LE demand rising with urban threats, civil unrest, active - shooter response • Strong “Made in America” production; integrated sensor/comms systems demand • Expansion of EU procurement frameworks • Rising demand driven by geopolitical uncertainties • Growing requirement for a local footprint • Asia - Pacific leads growth. Africa & Latin America steady from security pressures and peacekeeping • Middle East unrest driving demand *Source: FBI, Active Shooter Incidents in the United States, 2020 - 24 vs 2015 - 2019 Emerging rifle threats: Higher bullet protection without extra weight, integrated soldier systems Blast & TBI protection: US congress concerns over traumatic brain injury Rapidly growing drone engagement in theatre: Increased fragmentation threat from above = need for higher head ballistic protection Rising law enforcement demand: Active - shooter & public order response +70% Increase in active shooter incidents*
Page 46
• Maximise and extend core DoW programmes • Expand across military services • Shape the next generation military portfolio Accelerate growth Maximise the core • Further improve quality and lead times to extend competitive lead • Continue to increase productivity, inventory turns and cash generation • Create capacity to scale Our strategy will build a broader and more resilient business EP3 • Expand North American commercial • Scale internationally • Develop new products and selected adjacencies Improve Leading head - protection technologies, an established DoW franchise and disciplined commercial expansion create multiple routes to growth 46
Page 47
Business improvement has transformed Team Wendy Operational discipline has significantly increased Team Wendy's capacity and profitability 47 Improve Cleveland ballistic helmet production (units) HY23 FY26 165,000 20,000 Revenue HY23 FY26 consensus $154m $67m Adjusted EBIT HY23 FY26 consensus $14m $(11m) Adjusted EBIT margin HY23 FY26 consensus 9% (17%)
Page 48
Average inventory turns HY23 FY26 2.6 2.6 48 Continuous improvement will enable us to outperform customer expectations and retain our cost advantage Improve Improving inventory turns will generate cash to reinvest in growth Scrap (as % of revenue) HY23 FY26 1.9% 4.5% $4M annual cash saving On - time delivery HY23 FY26 96% 95% Productivity (Revenue / direct headcount) HY23 FY26 $464k $225k Stable despite production ramp - up
Page 49
49 Flow based manufacturing is a competitive advantage in our market Built - in quality and shortened lead times help our sales team win One - piece flow • Makes your opportunities visible • Aligns production closer to customer orders, increasing responsiveness • Eliminates inventory and waste associated with moving and holding WIP • Allows rapid configuration and a broader portfolio • Maintains margins despite a larger product breadth From this... ...to this Improve
Page 50
50 We will leverage our DoW franchise to diversify across military services and future developments Our credibility with the DoW positions us to sustain and extend current programmes • G row to our full potential of existing contracts • Future variants of NG I HPS (i.e. High Cut) expected to drive sustainment • 950k soldiers forecast for FY27 vs 300k deployed ACH helmets ( supporting future demand) • Installed base supports recurring pads, liners and accessories • Customer relationships create credibility in adjacent markets Maximise FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 Revenue ($m) International expansion N.America commercial & federal Strong DoW foundation
Page 51
DoW is more than a revenue base: it gives Team Wendy the customer access, technology and credibility to win more broadly 51 Maximise We have established a commanding position in DoW and will use our strengths to expand it ...and how we will use those strengths to diversify: Win more from existing positions NG IHPS fielding, Sustainment, pads & accessories, follow - on programmes Expand across services Shape the next portfolio High - Cut NG IHPS, Next - gen requirements. Convert development into future programmes Deep understanding of the user and system Differentiated technology (Team Wendy + Ceradyne) Installed base and enduring relationships Trusted to deliver critical programmes at scale Why Team Wendy wins in DoW ...
Page 52
52 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 Revenue ($m) International expansion N.America commercial & federal While DOW remains an important platform sustaining our ambitions for growth Commercial and international expansion will broaden Team Wendy’s revenue base • NATO / allied defence spend increasing • Large opportunities in Europe, LATAM, MENA, APAC and allied markets • Products, pricing and partnerships tailored to local requirements • Significant opportunity across law enforcement and Search & Rescue • Better dealer coverage, ‘Headstrong’ demonstrations and lead conversion • Increase recurring accessories and aftermarket revenue Strong DoW foundation Accelerate
Page 53
International demand is growing, but Team Wendy’s premium product & pricing have historically been a brake on sales outside N.America 53 Accelerate Right product • Lower - cost EPIC and RIFLETECH variants for price - sensitive demand • Endurance & specialist configurations for premium & NATO requirements • Broader sizing and accessories to meet complete tender requirements Right price • Price by market, volume and customer requirement • Use early bids to establish price - to - win and understand losses • Use common platforms and design - to - cost to protect margin Local access • Build capable local partnerships for customer access, content and service • Prepare products and customer sponsorship ahead of future NSPA opportunities We will scale internationally through a disciplined approach: tailored products , market - specific pricing and credible local partners Team Wendy share of ballistic helmet sales (FY26, units) N. America International 0.6% 25% ...but Team Wendy share is low 2021 1.7M 2022 1.9M 2023 2.2M 2024 2.4M 2025 2.5M 2026 2.6M International ballistic helmet demand (units) International market is large & growing... Driven by increased allied defence spend & NATO modernisation
Page 54
Significant headroom to grow in North American commercial markets 54 Broader coverage and a stronger sales team will turn an established brand into a larger recurring revenue base Accelerate Reach more customers • Expand coverage across underpenetrated states & smaller law enforcement agencies • Target federal customers • Enter Canada through dedicated partners • Reactivate previous customers and underpenetrated accounts Convert more opportunities • Use Headstrong demonstrations to create demand & influence specifications • Strengthen partner onboarding, training & accountability • Add inside - sales and sales operations support to improve follow - up and conversion Increase lifetime customer value • Increase pads, accessories & full - system configurations • Develop warranty, rebuild & refurbishment offers • Turn each new helmet placement into future aftermarket & replacement demand 54% of US sales come from just five states Only 2% of 26,700 US fire departments are current Team Wendy customers 96k annual Search & Rescue helmet requirement (TW share = 13%) $3m Sales generated from Headstrong product shoots in 18 months
Page 55
Tailored portfolio based on common technology & components will allow Team Wendy to address more of the market 55 We now need to use our strengths to grow quickly in international and commercial markets Accelerate ...and how we will use those strengths to drive growth: Ability to tailor performance, weight & cost trade - offs to serve different needs & budgets What makes Team Wendy strong in BALLISTIC... Increase value per customer • Tailor existing products to customer specs • Expand accessories portfolio (visors, mandibles etc.) to offer complete systems • Build recurring aftermarket, replacement and refresh revenues (pads, retentions etc.) 1 Expand the portfolio • Tailored products, design - to - cost with local partnerships to create disciplined route to market • Use shared technology to launch products faster and compete across more of the market 2 Unique tooling & molding technology enables design flexibility & speed to market
Page 56
We are developing a common platform to unlock the mid - range ballistic helmet market While protecting our premium positioning 56 Accelerate PRICE & PERFORMANCE ADDRESSABLE MARKET SIZE International Military Generalist Market and US Law Enforcement Best in Class Elite Forces and Top Tier Militaries
Page 57
We are developing a common platform to unlock the mid - range ballistic helmet market While protecting our premium positioning 57 Accelerate PRICE & PERFORMANCE ADDRESSABLE MARKET SIZE Exfil Ballistic Exfil Endurance Recent addition: no through hole, light weight RifleTech New Responder Best in class low – cost LE targeted ballistic helmet EPIC Combat Best in class entry - level military combat helmet New EPIC Specialist Market focused Performance/Cost combination Top of the range ballistic protection at an industry best cost Rifle Helmet Addition Current EPIC Range
Page 58
58 A common platform can unlock the mid - range helmet market while protecting the premium portfolio Allows us to address more of the market while maintaining margins, inventory turns and lead times Accelerate Team Wendy wins on protection, comfort and user experience, BUT... P remium positioning limits access to large, price - sensitive tenders • Shared helmet architecture • Common design, components & sourcing • Clear performance and cost tiers We will overcome this through: A new common p latform
Page 59
Proven platforms and customer trust allow Team Wendy to serve more users, sell more per customer and address more of the market 59 We need to use our strengths to grow quickly in international and commercial markets Accelerate ...and how we will use those strengths to drive growth: What makes Team Wendy strong in BUMP... Strong brand recognition & customer loyalty Market - leading comfort, fit & user experience Broaden the customer base • Use trusted products and user advocacy to open new applications (e.g. riot) • Leverage new products (RECON) with leading performance to cost, to expand market 1 Increase value per customer • Tailor existing products to customer specs (e.g. roadside) • Expand accessories portfolio (visors, mandibles etc.) to offer complete systems • Build recurring aftermarket, replacement and refresh revenues (pads, retentions etc.) 2
Page 60
Bump helmet new product development expands our market reach 60 Accelerate TACTICAL BUMP SEARCH & RESCUE NFPA & ROADSIDE SAFETY PRICE NO MILITARY IMPACT STANDARD MILITARY IMPACT STANDARD MOUNTAINEERING & MILITARY IMPACT STANDARDS FIREFIGHTER & EMERGENCY RESPONSE STANDARDS (NFPA / ASTM) While protecting our premium positioning
Page 61
61 Accelerate TACTICAL BUMP SEARCH & RESCUE NFPA & ROADSIDE SAFETY PRICE SAR Tactical Flagship search and rescue helmet EXFIL CARBON Top of the line Military Tactical Bump Helmet EXFIL LTP Purpose built for a wide range of bump needs Roadside Safety for roadside service responders RECON Industry leading protection, quality & versatility Bump helmet new product development expands our market reach While protecting our premium positioning
Page 62
62 Strong DoW foundation Customer access, technology and credibility to win more broadly Technology leadership A differentiated platform that drives future helmet development Turning an established brand into a larger recurring revenue base Tailored portfolio Broadening the portfolio to increase participation A stronger platform with multiple drivers of future growth Improve. Maximise the core. Grow Continuous improvement embedded International growth Disciplined commercial expansion Scaling through methodical product development and sales approach Common product architecture
Page 63
Compound: build a leading protection technology platform
Page 64
We are ready to go and will accelerate as capabilitya and capacity allow 64 Compound: building a protection technology compounder Acquire selectively in protection technology markets Improve what we buy and demonstrate we can apply our system to an acquisition Compound shareholder value through our buy and improve model
Page 65
65 A focused investment universe We will invest in mission - critical protection businesses where Avon understands the market and can create value as an owner Where we will play Protection technology & closely adjacent mission - critical safety: Core protection T echnology enablers Close adjacencies Every opportunity must strengthen a technology, customer, market, geography or capability we understand. • Respiratory • Head protection • CBRN ensembles • Underwater systems • Lifecycle sustainment Critical suppliers or technology enablers e.g. power, data, performance textiles • Body armour • Protective clothing • Detection systems • Eye & face protection • Communication and hearing protection A fragmented market • Opportunity to deploy capital selectively • Investable universe of over 100 • Three active processes now • Multi year runway
Page 66
Compound: acquire only where Avon can add value 66 Every acquisition must meet our strategic, operational, and financial criteria • Returns above WACC within 4 years • Robust downside case and affordable funding • Valuation does not assume all future improvement upfront 4 Financial returns3 • Credible route to improve growth, margin, inventory turns & cash through the Business Improvement System • Opportunity to create value through synergies, operational excellence and Avon ownership • Business will be worth more as part of Avon than as a standalone company Value - creation potential • Defensible product or technology position • Strong customer relationships • Attractive long - term market fundamentals • Capable leadership or an achievable leadership plan 2 Business quality • Must be in an area we understand • Protection technology businesses 1 Market & Strategic fit Acquisition criteria: • Core protection • Technology enabler • Close adjacencies
Page 67
Enable The acquisition process: our Business Improvement System at the core Avon combines operational improvement with market knowledge, customer access and investment capability to help acquired businesses grow faster 67 • Select against our acquisition criteria • Buy where we see the potential for value creation • The right organisational structure • Build leadership and capability • Establish strategy, priorities and market positioning • Implement Avon operating cadence to translate strategy into action Select Improve & grow Reinvest • Improve safety, quality, delivery, inventory and productivity • Strengthen cash generation and commercial execution • Invest in growth opportunities • Fund high - return organic growth • Further acquisitions if they meet our criteria
Page 68
Ambition to deliver >$600m revenue in five years Our vision is a repeatable cycle of long - term compounding 68 Strong businesses generate cash Improved businesses create greater returns We build more people capability Greater cash flow & capability support next investment Strengthen System plus growth = strong cash flow Carefully selected acquisitions if they meet our criteria Improve and grow Higher cash generation and ROIC increase the value of each business & the group Stronger leaders, processes and technologies expand Avon’s capacity The cycle repeats only when the next opportunity meets our criteria Cash funds selective acquisitions The Business Improvement System raises performance
Page 69
69 What we expect this to deliver
Page 70
70 $175m cumulative free cash flow over the next three years Unlocking multiple pathways to deliver market leading returns Cash generation will improve dramatically, driven by growth, the end of transformation and working capital efficiency $175m+ Free cash flow (FCF) is defined as net cash generated from operating activities, less net interest paid and capital expenditu re. FY24 - FY26 cumulative figures include indicative FY26 estimates. Information presented for illustrative purposes only.
Page 71
FY26 Organic opportunities • Core market growth • Share gains & product expansion • Step change programme opportunities FY31 organic target 71 A probability - weighted plan creates a solid base with opportunity to over deliver Buy & improve upside >$600m Group Revenue Target >5% Revenue CAGR We won’t win everything
Page 72
Investing for growth while maintaining financial discipline Balance sheet capacity supports organic investment, targeted M&A and/or shareholder returns 72 We have a very strong balance sheet, giving us options for allocating capital : Investment to support organic growth Maintain progressive dividend Disciplined M&A Return surplus capital where appropriate While maintaining a strong balance sheet: target leverage of 2x or less
Page 73
We have ambitious targets With the current portfolio providing the engine for future growth 73 How we expect the current portfolio to perform organically: >5% Revenue CAGR 16 - 18% Operating profit margin >10% EPS CAGR Strong cash generation supporting firepower to drive faster growth: >5x Group Inventory Turns >$175m 3 - year cumulative free cash flow Group five - year targets: >18% ROIC >$600m Group Revenue Further EPS accretion Free cash flow (FCF) is defined as net cash generated from operating activities, less net interest paid and capital expenditu re.
Page 74
74 Photo credit: NASA Summary: Improve Grow Compound
Page 75
An experienced team 75 DURABLE COMPETITIVE ADVANTAGES HIGHLY CASH - GENERATIVE CORE DISCIPLINED REINVESTMENT LEADING POSITIONS IN ATTRACTIVE MARKETS With the ambition to compound value over the long term ORGANIC GROWTH ABOVE END MARKETS
Page 76
Protecting the lives of those who protect us
Page 77
Appendix
Page 78
78 Invest in the opportunities that can materially increase scale and value • Win next - generation programmes • Expand into adjacent markets and geographies • Broaden the product portfolio & b uild a larger, more diversified business Strengthen our market - leading positions and recurring revenue streams • Maximise and expand leadership positions in core military and law enforcement markets • Deploy capital and resources on highest return opportunities • Increase value from our existing products and capabilities Drive higher productivity, cash generation and returns through Continuous Improvement • Improve productivity, quality and inventory turns • Build leadership capability and organisational strength • Generate cash to reinvest in growth Compound through buying and improving • Acquire selected protection technology businesses • Improve them through our Business Improvement System • Reinvest at attractive returns Our FY27 Group Strategy in detail: Built to Improve. Positioned to Compound.
Page 79
79 A stronger Avon is positioned to compound value over the long term Disciplined capital allocation and a proven Business Improvement System create the pathway DURABLE COMPETITIVE ADVANTAGES • Long qualifications and programmes • Technology, IP and certifications • >4m active respiratory users HIGHLY CASH - GENERATIVE CORE • Continuous Improvement embedded • >$175m three - year free cash flow • >18% medium - term ROIC target DISCIPLINED REINVESTMENT • Reinvest behind organic growth • Acquire selectively in protection • Apply the System and repeat LEADING POSITIONS IN ATTRACTIVE MARKETS • Mission - critical products • Trusted customer relationships • Structural protection - market growth ORGANIC GROWTH ABOVE END MARKETS • Core growth and share gains • International and portfolio expansion • Selected programmes add upside Investment Case: TURNAROUND COMPLETE IMPROVE GROW COMPOUND
Page 80
Glossary LATAM Latin America LE Law Enforcement LTP Lightweight Tactical Polymer LTM Last Twelve Months MENA Middle East and North Africa MIST Military Institute of Science and Technology MITR Modular Integrated Tactical Respirator MoD Ministry of Defence NATO North Atlantic Treaty Organization NFPA National Fire Protection Association NG IHPS Next Generation Integrated Head Protection System NG IPE Next Generation Individual Protection Equipment NIOSH National Institute for Occupational Safety and Health NSPA NATO Support and Procurement Agency NVG Night Vision Goggles OTTP On - time - to - promise PAPR Powered Air Purifying Respirator PPE Personal Protective Equipment SAR Search and rescue SBU Strategic Business Unit SCBA Self - contained breathing apparatus SQDIP Safety, Quality, Delivery, Inventory and Productivity TBI Traumatic brain injury TW Team Wendy TWC Team Wendy Ceradyne US SOCOM United States Special Operations Command 50 Series Range of masks based on the technology of the M50 mask system ACH Gen II Second - generation Advanced Combat Helmet APAC Asia - Pacific APR Air purifying respirator ASTM American Society for Testing and Materials CBRN Chemical, Biological, Radiological, Nuclear CE European Conformity CI Continuous improvement CR&D Collaborative Research & Development CS PAPR SD Short duration combination system powered air purifying respirator DoW US Department of War EDA European Defence Agency EMEA Europe, Middle East, and Africa EOD Explosive Ordnance Disposal EXOSKIN CBRN protective wear FIERCE A mnemonic of our company values (fearlessness, integrity, excellence, resilience, collaboration, execution) FY Financial year GSR General Service Respirator for the UK MOD H1/H2 First half of the financial year (October – March) / Second half of financial year (April – September) HMI Hood Mask Interface Kaizen Japanese philosophy of continuous improvement through small incremental changes KPIs Key Performance Indicators 80
Page 81
Avon Protection Portfolio 81
Page 82
EPIC RESPONDER EPIC PROTECTOR EPIC SPECIALIST RIFLETECH BALLISTIC ACCESSORIES EXFIL® BALLISTIC EXFIL® BALLISTIC SL EXFIL® BALLISTIC VISOR EXFIL® BALLISTIC EAR COVERS HELMET COVER EXFIL® BALLISTIC RAIL 3.0 RETROFIT KIT EXFIL® BALLISTIC MANDIBLE EXFIL® ALL TERRAIN MANDIBLE BUMP EXFIL® LTP EXFIL® CARBON BUMP HELMET COVER EXFIL® LTP & CARBON RAIL 3.0 RETROFIT KIT SAR TACTICAL SAR BACKCOUNTRY SAR ADVENTURER SAR VISOR TEAM WENDY® SAR VENT COVERS TEAM WENDY® SAR REPLACEMENT RAIL KIT LINERS & RETENTION EPIC AIR® LINER SYSTEM ZAP SOF LINER SYSTEM CLOUDLINE® LINER SYSTEM VELCRO® BRAND HOOK DISKS ZAP NSN LINER SYSTEM EXFIL® MARITIME LINER SYSTEM EPIC HELMET COVER EXFIL® FACE SHEILD EXFIL® OXYGEN MASK STRAP KIT EXFIL® PELTOR QUCK RELEASE ADAPTERS EXFIL® W SPACER PLATE KIT NAPE GUARD EXFIL® & EPIC COUNTERWEIGHT EPIC BAND MOUNTED PAULSON® FACE SHIELD RADIO RIG MYSTERY RANCH® TRANSIT PACK ESAPI NON-BALLISTIC TRAINING PLATES ESS PIVOT RAIL MOUNTSHROUD HEADLAMP ADAPTER CAM FIT RETENTION SYSTEM H-BACK RETENTION SYSTEM STANDARD CHINSTRAP CHINSTRAP EXTENDER NEXT GEN INTEGRATED HEAD PROTECTION SYSTEM Team Wendy Portfolio RECON TACTICAL ADVANCED COMBAT HELMET EXFIL® ENDURANCE 82