Investor presentation

December 2021

Introduction to discoverIE

    • International specialist electronic engineering firm
    • Designing and manufacturing customised electronic components
      • Highly differentiated products
    • Supplying Original Equipment Manufacturers (OEMs)
      • Essential products, repeating revenue
    • Sustainable growth markets
      • Renewable energy, transportation, medical, industrial & connectivity
    • Continuing revenue of £303m, operating profit(1) of £30.9m
      • Operating in 24 countries
    • Acquisitive
      • Fragmented market - 19 D&M acquisitions in last 11 yrs
  1. Underlying profit for y/e 31 Mar 21 (continuing business)

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December 2021

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Sustainable growth Company, resilient in tough conditions

We aim to provide investors with

Returns of 15 - 20% pa +23% CAGR(1)

  • A progressive dividend +6% CAGR(1)

Since FY18 our aim has been to double underlying EPS in 5 years again

  • FY19 + FY20 op profits up 78%
  • FY19 + FY20 EPS up 62%
  • Covid actions + effective supply chain management minimise impacts

In 5yrs to FY18:

Sales

up > 2x

Underlying EPS

up > 2x

Operating profits

up > 4x

  1. Share price and dividend growth from Apr 12 to Sep 21
  2. All historical figures have been restated to exclude Custom Supply distribution business
  3. Consensus estimates at 22 Nov 2021 of 6 analysts. The estimates have factored in the discontinuation of the Custom Supply division

discoverIE Group plc

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December 2021

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Our business

Business fundamentals

Attractive rewards

Growth markets

Designed-in products, difficult to replace

Distinct business, competitive advantage

Low customer concentration

Design, not price led

Low capital requirements

Multiple manufacturing sites & technologies

Acquisitions at the right price

GDP++ organic growth

High levels of repeating revenue

Sustainable margins

Reduced risk

Increasing margins

Cash generative

Reduced risk

Earnings accretion

Underpinned with high standards of Environmental, Social & Governance for a better world

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Consistent, proven strategy

  • Sales growth well ahead of GDP over the economic cycle
  • Move up the value chain into higher margin products
  • Acquire businesses with attractive growth prospects and strong operating margins
  • Further internationalise the business
  • Generate strong cash flows and long term sustainable returns while reducing impact on the environment

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December 2021

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discoverIE Group plc published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 09:10:06 UTC.