THE CAVENDISH CONFERENCE

15th May 2024

gandh.com

AGENDA

  • Company Overview
  • Environmental, Social & Governance
  • Strategy Update
  • FY2024 Financial Results
  • Business Update
  • Outlook & Summary

Charlie Peppiatt - CEO

Chris Jewell - CFO

THE CAVENDISH CONFERENCE - 15th MAY 2024

PAGE 2

BUSINESS OVERVIEW

2023 Revenue: £148.5M (2022: £124.8M)

Life

Aerospace

Industrial

and

and

Sciences

Defence

Telecom

22% 26% 52%

LIFE SCIENCES

  • Medical imaging
  • Flow cytometry
  • Diagnostics
  • Laser surgery
  • DNA sequencing
  • Aesthetic procedures
  • Microscopy
  • Drug delivery

AEROSPACE & DEFENSE

  • Navigation
  • Targeting
  • Range finding
  • Imaging
  • RF & satellite comms
  • Sights for AFVs
  • Soldier protection
  • Countermeasures

INDUSTRIAL & TELECOM

  • Laser manufacturing
  • Photolithography
  • Microelectronics
  • Undersea networks
  • Perimeter sensing
  • Wind sensing
  • Laser fusion
  • Machine vision

Emerging applications increasingly employ

photonics as the enabler.

Our customers require specialized, reliable and

high-performance solutions.

G&H pushes the boundaries in these key areas and provides differentiating product solutions.

We maintain close and long-lasting relationships with our customers.

THE CAVENDISH CONFERENCE - 15th MAY 2024

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G&H KEY AREAS

Quantum photonics for

LiDAR for

Lasers for

High-capacity telecom

Comms & sensing

wind sensing

semiconductor & machining

fibre networks

Industrial

Imaging systems for

Armoured vehicle

Laser comms

Laser Directed

UAVs, space & turrets

imaging systems

for UAVs & satellites

Energy Weapons

Aerospace & Defence

Source: ESA/JAXA

Source: DSTL

Confocal fluorescence

Medical lasers in

In-Vitro Diagnostics

Ophthalmic &

microscopy

Aesthetics & dentistry

instruments

intra-coronary imaging

Life Science

THE CAVENDISH CONFERENCE - 15th MAY 2024

BROAD PHOTONICS EXPERTISE WITH GLOBAL REACH

Acquisitive Growth

In 2023 G&H acquired:

GS Optics, Rochester NY (Polymer Optics) Artemis Optical, UK (Coating specialist)

G&H employs over 900 skilled employees across 10 manufacturing and design facilities.

RESPONSIBLE BUSINESS

Environment

  • Reduction in our carbon intensity measure of 33%
  • Site plans in place to reduce energy usage
  • 69% of the Group's purchased electricity now from non-carbon sources
  • On track to achieve target of being net zero scope 1 & 2 by 2035
  • CDP (Carbon Disclosure Project) disclosure submitted. Score due Jan-24

Social

  • Cost of living support to our employees
  • 75th Anniversary celebrations at each site

Governance

  • Sustainability sub-committee of the Board established
  • Susan Searle appointed as a non-executive director

THE CAVENDISH CONFERENCE - 15th MAY 2024

PAGE 6

G&H STRATEGY - SUSTAINABLE GROWTH

New strategy focused on becoming an 'innovative customer focused technology company'

making a 'better world with photonics' and the 'first choice' for all our stakeholders

OFFERING DIFFERENTIATED PERFORMANCE THROUGH 4 KEY STRATEGIC PRIORITIES:

1

2

3

4

Establish dynamic

Deliver exceptional

Create enhanced

Focus investment

high-performance

customer

value through

to accelerate

teams and a

experience and

technology and

accretive growth,

purpose-led culture

superior operational

platform solutions

both organic and

execution

inorganic

PEOPLE

SELF-HELP

TECHNOLOGY

INVESTMENT

Achieved by following G&H's guiding values to deliver fundamental and sustainable

improvement for employees, company profitability and our planet

THE CAVENDISH CONFERENCE - 15th MAY 2024

STRATEGY PROGRESS

Path to mid-teens returns (700-800 bps accretion) over the medium term, net of investments excluding portfolio changes

People

Self-Help

Technology

Investment

  • Recruitment recovery
  • Sustainability agenda
  • Talent acquisition and retention
  • Employee engagement
  • Succession planning
  • Operational output
  • Delivery performance
  • Past due backlog
  • Productivity plan
  • Outsourcing progress
  • USA ITL expansion
  • Technology Roadmap update with 'Vital Few'
  • Innovation hubs
  • Rochester investment
  • Acousto-opticteam
  • R&D Coating Summit
  • GS Optics
  • Artemis Optical
  • Divestment EM4
  • Streamline footprint
  • Cash focus
  • Portfolio review

Volume

Productivity

Outsourcing

New Products

Portfolio

c.100 bps

c.200 bps

c.150 bps

c.150 bps

c.200 bps

THE CAVENDISH CONFERENCE - 15th MAY 2024

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OUTSOURCING

Proactive outsourcing of products earlier in their life cycle where technological sovereignty is not a differentiator

  • Dedicated leadership and resources added
  • Supply of acousto-optic products expanding
  • Hi-Relcouplers qualified and in production with ramp-up planned in FY2024
  • Additional product selection underway
  • Growth plans to >25% of Group revenue

People

Self-Help

Technology

Investment

THE CAVENDISH CONFERENCE - 15th MAY 2024

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ACQUISITIONS

GS Optics - Total consideration up to $15.7m

  • Polymer precision optics design, manufacture and coating
  • Life Sciences (50%), Industrial and A&D applications
  • Located in Rochester NY, a hub for photonics talent
  • G&H's US Life Sciences 'centre of excellence'

Artemis Optical - Total consideration up to £8.9m

  • Specialist in advanced thin film optics coating
  • Customised system enabling optical filters and mirrors
  • A&D (70%), Life Sciences and Industrial markets
  • As part of G&H provides technology enabling systems
  • Deep technical and product management know-how

People

Self-Help

Technology

Investment

THE CAVENDISH CONFERENCE - 15th MAY 2024

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Gooch & Housego plc published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 12:21:55 UTC.