QinetiQ : Financial Document

Delivering enduring value for our customers and shareholders

QinetiQ Group plc

Preliminary results for year ended 31 March 2024

23 May 2024

Agenda

1	Year in review	Steve Wadey - Group CEO
2	Financial results	Heather Cashin - Interim Group CFO
3	Strategic outlook	Steve Wadey - Group CEO
4	Q&A

3 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

Year in review

Steve Wadey

Group Chief Executive Officer

Headlines

1

2

3

Delivered a further year of strong overall Group operational and financial performance in FY24

Strong momentum entering FY25 and on-track to deliver c.£2.4bn organic revenue at c.12% margin by FY27

Enhanced focus on capital allocation with optionality for investment in growth and further shareholder returns

Well positioned for sustainable shareholder value creation

5 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

Financial highlights

• Record order intake at £1.74bn, with a book-to-bill1 of 1.1x
• Revenue up 21%, up 14% on an organic basis
• Profit up 20% with stable margin at 11.3%, up 16% organically
• High cash conversion at 104%, reducing leverage to 0.5x
• Strong earnings growth with underlying EPS up 11% to 29.4p
• ROCE maintained above upper end of guidance at 21%
• Dividend growth up from 5% to 7%; £100m buyback on-track

FY24 performance

Orders		Revenue
£1,740.4m +1%		£1,912.1m +21%
FY23: £1,724.1m		FY23: £1,580.7m
Profit2		Cash
£215.2m +20%		104% conversion
11.3% margin		0.5x leverage
FY23: £178.9m		FY23: 106%

A further year of strong Group financial results

1 B2B ratio is orders won divided by revenue recognised, excluding LTPA revenue of £266m (FY23: £225m) 2 Operating profit from segments

6 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

EMEA Services

Excellent growth at stable margin

• Early delivery of mission data transformation for RAF
• First Laser Directed Energy Weapon (LDEW) firing in UK
• Air Affairs integrated with 20% increase in JATTS1 flying

Successful delivery of long-term contracts

• MSP2 contract extended by 3 years with $87m new orders
• On-trackto secure LTPA4 5-year extension to 2033
• EDP3 delivering customer benefits with £472m new orders

Strong programme execution

Pipeline of significant opportunities

Delivering critical capabilities for enduring national defence and security priorities

1 Joint Adversarial Training and Testing Services (for Australia DOD) 2 Major Service Provider (for Australian DOD) 3 Engineering Delivery Partner (for UK MOD) 4 Long Term Partnering Agreement (for UK MOD)

7 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

Global Solutions

Lower growth at stable margin

• Record production of Targets; planned CRS-I1 ramp-down
• Successful Targets certification enabling US market entry
• Modest Avantus growth in H2; funded book-to-bill of 1.2x

US platform built with Avantus integrated

• Secured $1.3bn2 of total contract awards, inc. re-competes
• $224m SDA3, $126m SCO4 & $170m TARS5 5-yr contracts
• Strategy focused on opportunities aligned to US NDS6

Delivered against background of difficult US market

US well positioned to drive synergies and future growth

Delivering high-valuetechnology-based solutions globally

1 Common Robotic System-Individual2 Of which $571m recognised in FY24 3 Space Development Agency 4 Strategic Capabilities Office 5 Tethered Aerostat Radar System 6 National Defence Strategy

8 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

Financial results

Heather Cashin

Interim Group Chief Financial Officer

FY24 Financial Highlights

Orders+1%1

£1,740.4m

FY23: £1,724.1m

Cash conversion & leverage

104%	0.5x
FY23: 106%	0.8x

Revenue+21%

£1,912.1m

FY23: £1,580.7m

EPS+11%

29.4p

FY23: 26.5p

Operating profit

+20%

£215.2m 11.3%2

FY23: £178.9m 11.3%

ROCE

-2% pt

21%

FY23: 23%

All measures on this page are underlying. Operating profit is the total from the operating segments. Definitions of APMs can be found in the Appendix

1. 19% growth excluding 10 year £260m Maritime Strategic Capability Agreement (MSCA) contract in FY23
2. Operating profit margin refers to operating profit from segments divided by revenue

10 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©

Record order intake with book-to-bill of 1.1x1 supporting future growth

Orders (£m)

	7% growth excl. MSCA2			19% growth excl. MSCA
	10% organic decline			1% total growth
1,724.1	(187.3)	23.1	(23.5)	204.0	1,740.4
MSCA
£260m

FY23	EMEA Services Global Solutions Foreign exchange	Acquisition &	FY24
		Disposals

1. Book-to-billratio is orders won divided by revenue recognised, excluding LTPA revenue of £266m (FY23: £225m)
2. Maritime Strategic Capability Agreement 10 year £260m contract in FY23
3. US unfunded orders represents the value of contract awards for which funding has not yet been appropriated or authorised

					Orders won (£m)	2,318
1,724			5783
1,227					260			MSCA	675
				559
		419
										1,065
									905
		808
		FY22	FY23		FY24
				Orders less than £5m			Orders greater than £5m
					Order backlog (£bn)
														3.7
2.8					3.1
					0.8
									1.3
		1.5								1.1
									1.8				1.8
		1.3
		FY22	FY23		FY24
							Non LTPA		LTPA

11 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©