Heroux Devtek : Q1. JUNE 30, 2023

CONSOLIDATED FINANCIAL STATEMENTS / MANAGEMENT'S DISCUSSION AND ANALYSIS

First quarter ended June 30, 2023

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

First quarter ended June 30, 2023

TABLE OF CONTENTS
Interim condensed consolidated financial statements	5
Notes to the interim condensed consolidated financial statements	10
Note 1	Nature of activities and corporate information	10
Note 2	Basis of preparation	10
Note 3	Revenue from contracts with customers	10
Note 4	Government assistance	11
Note 5	Cost of sales, selling and administrative expenses	11
Note 6	Net financial expenses	11
Note 7	Earnings per share	12
Note 8	Derivative financial instruments	12
Note 9	Long-termdebt	12
Note 10	Issued capital	13
Note 11	Accumulated other comprehensive income	14
Note 12	Net change in non-cashitems	15

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DISCLOSURE OF NON-REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTERS ENDED JUNE 30, 2023 AND 2022

Pursuant to National Instrument 51-102, Part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if the external auditors have not performed a review of the financial statements, the financial statements must be accompanied by a notice indicating that they have not been reviewed by the external auditors.

The accompanying unaudited interim condensed consolidated financial statements of the Corporation for the quarters ended June 30, 2023 and 2022 have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, and are the responsibility of the Corporation's management.

The Corporation's external auditors, Ernst & Young LLP, have not performed a review of these interim condensed consolidated financial statements in accordance with the standards established by Chartered Professional Accountants Canada for a review of financial statements by the external auditors of an entity.

August 7, 2023

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CONSOLIDATED BALANCE SHEETS

(In thousands of Canadian dollars) (Unaudited)

As at	Notes	June 30,		March 31,
2023		2023
ASSETS	9
Current assets
Cash	$	2,046	$	15,020
Accounts receivable		114,897		126,721
Income tax receivable		2,434		2,176
Inventories		286,909		262,995
Derivative financial instruments	8	2,787		386
Other current assets		23,430		22,215
		432,503		429,513
Property, plant and equipment, net		201,453		205,490
Finite-life intangible assets, net		55,577		53,654
Derivative financial instruments	8	1,956		468
Deferred income tax assets		6,181		9,308
Goodwill		111,800		112,384
Other long-term assets		10,358		10,520
Total assets	$	819,828	$	821,337
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities		119,086		131,019
Provisions		16,332		16,632
Customer advances and progress billings		60,653		58,904
Income tax payable		77		466
Derivative financial instruments	8	3,194		5,493
Current portion of long-term debt	9	12,567		11,425
		211,909		223,939
Long-term debt	9	175,013		166,483
Provisions		14,837		15,576
Derivative financial instruments	8	3,201		4,895
Deferred income tax liabilities		11,895		11,377
Other liabilities		9,501		8,148
		426,356		430,418
Shareholders' equity
Issued capital	10	82,214		82,459
Contributed surplus		7,089		6,739
Accumulated other comprehensive income	11	11,611		12,072
Retained earnings		292,558		289,649
		393,472		390,919
Total liabilities and shareholders' equity	$	819,828	$	821,337

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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