AeroVironment : Investor Overview March 2024

AEROVIRONMENT, INC .

M a r c h 2 0 2 4

Safe Harbor Statement

1. Certain words in this presentation may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward- looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "believe," "anticipate," "expect," "estimate," "intend," "project," "plan," or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements.

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1. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business, including the acquisition of Tomahawk Robotics; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairments in the future and any realization of such impairments; any actual or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government, including uncertainties in classification, pricing or potentially burdensome imposed terms for certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending, including due to continuing resolutions; adverse impacts of a U.S. government shutdown; our reliance on limited relationships to fund our development of HAPS UAS; our ability to perform under existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; the extensive and increasing regulatory requirements governing our contracts with the U.S. government and international customers;
   the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to and resulting misuse of our, our customers' and/or our suppliers' information and systems; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions; our ability to respond and adapt to legal, regulatory and government budgetary changes, including those resulting from the impact of pandemics and similar outbreaks; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward- looking statements, whether as a result of new information, future events or otherwise.

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| © 2024 AeroVironment, Inc.

Growing Need for

Unmanned Systems

Future of warfare and US military's force structure will include more distributed intelligent and affordable unmanned systems & loitering munitions deployed at the edge of the battlefield. AV develops and delivers these types of disruptive capabilities to our military and global allies

Shift from conventional missiles to Loitering Munitions like the Switchblade 300 & 600 with greater range, precise targeting and wave-off capability

Proven that small nations can successfully defend themselves and deter larger adversaries using unmanned systems in the air, ground and sea - i.e. asymmetrical warfare

Trend towards more autonomous solutions utilizing machine learning and AI capabilities that operate in contested environments

"Ukraine is building an advanced army of drones"

"Army orders loitering munition for testing

as soldier-bornetank-killer"

"Pentagon to build unmanned systems to compete with China"

"Ukrainian minister vows more drones for strikes on Russian warships"

"Inside Ukraine's drone war against Putin"

"Ukraine's war of Drones Runs Into an Obstacle: China"

1. AV's unique solutions are valued by our customers and trusted to meet their growing needs

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| © 2024 AeroVironment, Inc.

AV At-A-Glance

Honored to support our global customers as the leading pureplay unmanned systems company, providing solutions primarily to U.S. DoD and allies around the world

Global footprint with sales to

55+ allied nations

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| © 2024 AeroVironment, Inc.

NASDAQ: AVAV

Market Cap: $4.2B+

HQ: Arlington, VA

Employees: ~1,300

At Inflection Point and Poised for Long-Term Value Creation

Unmatched portfolio	Innovation leader	Well-positioned to
of unmanned systems	deploying AI/ML tech	benefit from key
with strong global	to the battlefield for	trends and strong
franchises	autonomous missions	global tailwinds

Proven track record of more than 20 years serving defense and

gov't customers

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| © 2024 AeroVironment, Inc.

Evolving Global Security Threats Are Driving Defense Spending

United States:

FY24 PBR driving defense spending to growth; Russian invasion of Ukraine factored in, future budgets to focus also on countering Chinese threat in APAC

Latin America:

Limited threat profile, populist politics and commodity-based economies focus key prospects into more limited range of opportunity - current economic woes limiting large-scale program evolution

Sources: SIPRI, RSAdvisors Defense Budget Forecasts

	Eastern Europe & Nordics:
Western Europe:	Increased Russian activity in former Soviet states and conflict in Ukraine
will likely drive increased spending in Eastern Europe & Nordics

Russian invasion of Ukraine driving additional spending through

the period, particularly in air defense, land systems, and some naval recap

	Asia/Pacific:
	Chinese power projection is
	driving investment by its
	neighbors, particularly Japan,
	Australia, S. Korea, Malaysia,
MENA:	Indonesia and Singapore
Growing involvement in
defense manufacturing
and in the conduct of
operations is driving
increasing sophistication
of requirements; air defense a core priority N. Africa increasingly
modernizing and seeking to develop better surveillance capabilities -
Tunisia, Algeria and Morocco increasing spend
Historical and projected defense and security spending	Defense Spend CAGR '17-'27:
-5%	5%
patterns largely mirror geographic threat areas

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| © 2024 AeroVironment, Inc.

Uniquely Positioned to Capitalize on Expanding Defense Budgets

GLOBAL DEFENSE1 BUDGET BY REGION

2021 - 2027 ($B, Current)

		Pre-Ukraine Forecast	February 2023 Forecast
$3,000
FY21-27 CAGR	1.5%	5.4%

• U.S. budget growth re-ignited to fast-track

recapitalization of key platforms fleets, increase

readiness and expand stockpiles.

$2,500

$2,000

$1,500

$1,000

$500

$0

$1,617

$179

$281

$342

$744

7.0% CAGR

$1,722

$193

$300

$347

$803

$1,770

$196

$373

$350

$777

$2,217

$229

$444

$452

$994

• European defense spending is likely to increase by

~$20B FY21-23, with further increases likely to drive

spending above $400B by 2025.

• Germany's commitment to a €100B defense spend

boost and continued investment above the 2% NATO

target, particularly in 'frontier' nations such as Poland.

• Significant uplift in APAC budgets to account for

heightened awareness of peer conflict and growing

tension in both East and South China Seas.

2021		2023	2027 Pre-Ukraine	2027 Apr. 2023
	North America	Europe	Asia Pacific	MENA	South America	Other Africa

(1) Excludes embargoed nations; Afghanistan, Belarus, China, CAR, DRC, Iran, Libya, Myanmar, Russia, Syria, Venezuela, Yemen, Zimbabwe; | Sources: RSAdvisors Defense Budget Forecasts; National Defense Spending Announcements

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| © 2024 AeroVironment, Inc.

OUR UNMATCHED PORTFOLIO: Accomplishing Missions in the Most Demanding Environments

Our Five Business Units

$4B+

Disrupting

TAM
Global		$2B+
	Growing

$5B+

Rapidly Growing

Segment

UMS

LMS

MW

$.7B+

Adapting

UGV	SUAS	MUAS	LMS
Unmanned	Small Unmanned	Medium Unmanned	Loitering
Aircraft Systems	Aircraft Systems	Munition Systems
Ground Vehicles

N/A

Innovating & Incubating

MW

MacCready

Works

Unmanned Systems

Loitering Munitions

MacCready Works

Business Units

Sources: SUAS and MUAS figures from "World Military Unmanned Aerial System Report by Teal Group". LMS, UGV Source "Renaissance Strategic Advisors"

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| © 2023 AeroVironment, Inc.

Unmanned Systems

Group 1-3 UAVs for multiple missions and UGVs for EOD and CBRNE missions

Global Leader in Group 1 UAS with shipments to more

than 55 allied countries

Strong international UGV franchise with domestic growth opportunities

Disruptor in larger Group 2-3 UAS market with many domestic and international growth opportunities

Multiple $1B programs of records on the horizon

Incorporate leading edge autonomy and AI/ML capabilities to reduce cognitive load while enabling operations in contested environments

Slide 10 | © 2023 AeroVironment, Inc.