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Energizing our world. Accelerating Our Power Quality Platform Hammond Power Solutions strategic rationale for the proposed acquisition of AEG Power Solutions
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Accelerating Hammond’s Power Quality Platform Product Expansion Expands integrated electrical solutions capability End-Market Expansion Broadens exposure to industrial, infrastructure markets Geographic Expansion Broadens global footprint Customer Base Expansion Installed base, services and recurring revenue Accelerating HPS’s Global Growth
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AEG at a Glance Power Electronics Expertise Over 75 years of experience in power electronics drive innovation in industrial UPS and advanced power conversion technologies. Global Operations and Workforce A team of approximately 780 employees enables worldwide manufacturing and research operations, fostering technological advancement. Technology-Led Portfolio Innovative solutions ensure power resiliency and support electrification, energy transition, and energy security megatrends. Aftermarket Platform Strength A robust aftermarket platform efficiently supports a large installed base, maximizing reliability and customer satisfaction.
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Global Industrial UPS Leader Specialist UPS provider with a comprehensive portfolio focused on high reliability and critical loads Geographical coverage Global LargeSmall Customer size Regional Global engineering players International Long tail of local and niche providers International specialists Regional players Creating a dominant position in a highly fragmented and accelerating sector
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Industrial UPS End-Market Groups Aftermarket and Services PCS Hydrogen (PCS) Offshore wind Oil and GasData & IT General industry Transportation (Rail) Nuclear T&D Emerging Markets Traditional Sectors Installation & commissioning Maintenance Replacement systems & batteriesSpare parts Refurbishments & retrofits Training & repair Deliver high-reliability and instantaneous backup and conditioned power to critical loads, protecting processes and equipment from outages and power disturbances in harsh industrial environments Convert AC power into tightly controlled DC power Product End- Market Facility management Diversified Platforms Supporting Resilient Growth End market expansion, customer base expansion and recurring revenue
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6 Note: All figures in CAD; Shows regions where Hammond Power Solutions and AEG Power Solutions report sales; Shows proforma 20 25E sales ROW ~$80mm APAC ~$120mmNORTH AMERICA ~$850mm EUROPE ~$150mm Combined Presence Hammond Power Solutions AEG Power Solutions Overlap Ability to deliver fully integrated electrical powertrain solutions Commercial opportunities to sell Hammond portfolio internationally Commercial opportunities to sell AEG portfolio into North America Geographic Expansion Broad combined global commercial footprint
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Source: Company information and website Portfolio Expansion Complementary power infrastructure offerings Solar Duty Transformer Emergency UPS for Pitch Control Medium Voltage Distribution Transformer Cast Resin Medium Voltage Distribution Transformer UPS & Power Conversion for Distribution Automation Medium Voltage Distribution Transformer Industrial UPS & Rectifiers for Substation Controls Encapsulated Transformer UPS & Power Conversion for Distribution Automation HPS AEG 7 General Purpose Transformer Encapsulated Transformer UPS, Inverters, Battery Storage for Critical Loads Consumption Generation Transmission Distribution
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Revenue $853 (Q3 TTM) $326 (2025 est) $1,179 (est) Product Mix End Markets Geography North America 96% APAC 4% General Industry3 29% Traditional segments 1 43% Emerging segments 2 28%Commercial & Industrial (Distribution) 61% Traditional segments 20% Emerging segments 19% 8 Diversified Electrification Portfolio Pro Forma RoW 5% APAC 27% Europe 47% MEA 20% Transformers 100% UPS & PCS 59% Services & Aftermarket 41% Transformers 73% UPS & PCS 16% Services & Aftermarket 11% Note: All figures in CAD; 1 Traditional segments includes Oil & Gas and Transmission & distribution; 2 Emerging segments includes Data & IT, Wind offshore, Green hydrogen and Nuclear; 3 Includes General industries, Transportation and Other power generation; Hammond sales breakdown by end market is for 2024A; Electron product mix is for 2024A Commercial & Industrial 52% Traditional segments 26% Emerging segments 22% North America 71% APAC 10% Europe 13% Rest of World 7%
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Valuation ⚫ $365 million enterprise value ⚫ All-cash transaction Financing ⚫ Transaction not subject to any financing conditions ⚫ HPS will maintain a prudent capital structure with net leverage of 2.7x expected at closing ⚫ Robust FCF generation of combined entity enables deleveraging or further investments in the next three years. ⚫ Transaction funded through a new committed syndicated debt arrangement, consisting of a term loan and a revolving debt facility Financial Impact ⚫ Expected to be accretive to adjusted EPS in the first year ⚫ Maintains acquisition capacity ⚫ Invested capital exceeding HPS’s cost of capital Timeline ⚫ Transaction expected to close in Q2 2026 ⚫ Subject to the completion of customary closing conditions, including regulatory approvals Transaction Highlights 9 Highly strategic transaction delivering significant value creation Note: All figures in CAD
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Integration Approach • Preserve both HPS and AEGPS’s engineering and quality culture • Retain management and technical talent • Focus on customer continuity and project execution • Phased integration where value is clear We will prioritize disciplined integration and sustainable growth while staying true to our core values and identity. Experienced Executive Team Franck Audrain: Chief Executive Officer (CEO) Marco Krommendijk: Chief Financial Officer (CFO) Frédéric Salon: VP Sales Dr. Peter Wallmeier: Chief Technology Officer
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Positioning HPS for the Next Phase of Growth This transaction will: ✓ Bring scale to our power quality platform ✓ Expand our global reach ✓ Provide greater exposure to secular growth ✓ Strengthen our service and aftermarket profile
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Building the Next Phase of Growth Around Our Vision and Mission Our Vision To be a transformative force that electrifies the world Our Mission To simplify electrification by shaping power solutions with our customers