AeroVironment : 2022 Annual Report

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2022 OVERVIEW

OUTAHEAD

NEW PLATFORMS, NEW CATEGORIES AND

NEW CLASSES OF TECHNOLOGY

SOME ORGANIZATIONS TRY TO ENVISION THE FUTURE. AEROVIRONMENT IS ALREADY THERE.

For more than 50 years, AeroVironment has been OUTAHEAD,developing new platforms, new categories and new classes of technology that set the stage for paradigm shifts decades away.

This commitment to far-reaching innovation is built into AeroVironment's DNA. When the U.S. government needed a new way to counter Russian aggression in Ukraine, AeroVironment was primed with the technology needed. In 1986, we had begun work on the small unmanned aircraft system (SUAS) platform that evolved into the Switchblade®, Puma™ 3 AE and Quantix™ Recon, all relevant technologies suited for Ukraine's defense.

And when NASA's Jet Propulsion Laboratory needed the expertise to help develop a helicopter capable of flying in the rarefied Martian atmosphere, AeroVironment was the ideal partner. Twenty years before the Ingenuity Mars Helicopter made its maiden voyage in 2021, we sent Helios, our solar-powered unmanned aircraft, to the record-breaking altitude of almost 97,000 feet, gaining the insight needed to fly directly above the Martian surface.

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THROUGHOUT OUR HISTORY, ORGANIZATIONS HAVE TURNED TO AEROVIRONMENT FOR ONE SIMPLE REASON:

WE'VE ALREADY BEEN WHERE THEY WANT TO GO!

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AEROVIRONMENT, INC.

2022 CORPORATE OVERVIEW

A NEW APPROACH TO FORCE OVERMATCH

Our SUAS and Tactical Missile Systems Help Even the Odds in Ukraine

The Russian invasion of Ukraine was an inflection point in modern warfare. Since World War II, the major powers achieved force overmatch by deploying large, highly complex and extremely expensive assets, from fighter jets, to tanks, to aircraft carriers, satellites and submarines.

The aggressive Ukrainian response to the Russian invasion was a game- changer. Equipped with portable, inexpensive smart weapons systems, the smaller, more nimble Ukrainian forces have outmaneuvered and out- fought its much larger adversary on multiple occasions. In the process, the Ukrainians have destroyed thousands of Russian tanks and armored vehicles and hundreds of aircraft.

SUAS and tactical missiles systems (TMS) epitomize this counterintuitive, smaller-is-better approach to force overmatch. In March 2022, the U.S. government sent approximately 700 Switchblade loitering missiles to Ukraine. With its 40 kilometer range and 40-minute flight time, the Switchblade 600 is designed to destroy tanks and other armored vehicles

and neutralize artillery. The smaller Switchblade 300, weighing less than six pounds, is meant for soft targets and is being successfully used for this purpose.

Switchblade was not the only AeroVironment product in the U.S. aid pack- age. The Puma SUAS was also included and can loiter for hours above a battlefield to help soldiers locate and track enemy threats and help direct Switchblades toward their targets.

AeroVironment also went above and beyond, making its own direct contribution to the Ukrainian war effort. After consultation with the Ukrainian Embassy in Washington, D.C. and the Ministry of Defense of Ukraine, the Company donated over 100 Quantix Recon UAS, providing additional force protection and situational awareness for Ukrainian troops. With its unique hybrid vertical takeoff and landing (VTOL) design, Quantix Recon combines the VTOL advantages of a multirotor drone with the range, speed and efficiency of a fixed-wing UAS.

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AT AEROVIRONMENT, WE ARE DOING OUR PART TO SUPPORT THE PEOPLE OF UKRAINE IN THEIR FIGHT FOR FREEDOM.