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DELIVERING OUR GROWTH PLAN Results presentation Year ended 31 August 2025 AB Dynamics plc
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AB Dynamics plc Agenda Results presentation – 11 November 20251 Ed Haycock, Director of Financial Reporting Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate Highlights Financial results Update on our growth strategy • Organic growth drivers • Margin expansion • M&A Wrap up
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AB Dynamics plc Highlights Results presentation – 11 November 20252 Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate AB Dynamics plc
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AB Dynamics plc A strong start to delivering our growth plan with 15% increase in operating profit Results presentation – 11 November 20253 • Double-digit revenue growth in H1 followed by a more challenging H2 driven by macroeconomic disruption • Customer activity improved towards the end of the year, closing order book £32m • Product development and new product launches completed in line with technology roadmap • Simulator contract win for recently launched S3 Spin • Operating profit and EPS slightly ahead of expectations for FY 2025: – 15% growth in operating profit – Operating margin up 210 bps to 20.3% • Achieved through operational improvements and revenue mix – Operational improvements embedded, mix not expected to recur in FY 2026 • Supports medium-term sustainable margin target of greater than 20% • Bolab acquisition completed, integration progressing as planned and performance in line with expectations • Strong in-year cash generation leaves net cash of £41.4m supporting further organic and inorganic investment Revenue growth Margin expansion Acquisitions
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AB Dynamics plc Financial results Results presentation – 11 November 20254 Ed Haycock, Director of Financial Reporting AB Dynamics plc
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AB Dynamics plc Results presentation – 11 November 2025 • Revenue up 3% with strong growth in Testing Products offset by timing difference in simulator orders • Operating profit up 15% to £23.3m • Operating margin expansion, up 210 bps to 20.3%, as a result of operational improvements and revenue mix • Effective tax rate of 18% (2024: 19%) • Diluted EPS up 15% to 80.3p • Final dividend up 20% to 6.36p • Cash conversion of 106% with a three-year average of 112% • Closing order book of £32m provides good visibility into 2026 Strong financial performance 5 2025 2024 Change Revenue £114.7m £111.3m ↑ 3% Adjusted* operating profit £23.3m £20.3m ↑15% Adjusted* operating margin 20.3% 18.2% ↑ 210 bps Adjusted* diluted EPS 80.3p 70.0p ↑ 15% Cash conversion 106% 115% Order book £32.0m £30.3m ↑ 6% Operating profit Revenue * Before amortisation of acquired intangibles, acquisition related charges and exceptional items. 0 20 40 60 80 100 120 2022 2023 2024 2025 £m H1 H2 10% 12% 14% 16% 18% 20% 22% 0 5 10 15 20 25 2022 2023 2024 2025 £m H1 H2 Operating margin
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AB Dynamics plc Adjusted operating profit 6 Results presentation – 11 November 2025 2.0 1.2 20.3 1.1 (1.3) 23.3 2024 Sales volume Sales mix Operational improvements Overheads 2025 £m +15%
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AB Dynamics plc Net cash 7 Operating cash generation Investing (2.9) (2.4) (4.2) (1.3) (1.9) 28.6 29.4 (3.9) 41.4 2024 Adjusted operating cash flow Tax paid Other Capex Acquisitions Leases Dividend paid 2025 £m Returns to shareholders * Adjusting items have been reclassified into the appropriate cash flow categories. Results presentation – 11 November 2025
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AB Dynamics plc 2025 2024 Change Revenue £74.3m £69.4m ↑ 7% EBITDA £19.4m £15.5m ↑ 25% EBITDA margin 26.1% 22.3% ↑ 380 bps Adjusted operating profit £16.9m £13.2m ↑ 28% Adjusted operating margin 22.7% 19.0% ↑ 370 bps Testing Products 8 Highlights • Strong growth in driving robots offset by lower SPMM revenue • Market drivers continue to support track testing activity levels • Margin improvement driven by operational efficiencies, together with mix Results presentation – 11 November 2025
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AB Dynamics plc 2025 2024 Change Revenue £18.0m £16.7m ↑ 8% EBITDA £5.8m £5.3m ↑ 9% EBITDA margin 32.2% 31.7% ↑ 50 bps Adjusted operating profit £4.4m £4.2m ↑ 5% Adjusted operating margin 24.4% 25.1% ↓ 70 bps Testing Services 9 Highlights • US testing services growth in both mileage accumulation and track testing • New customer wins including established US OEMs and new entrants • Renewal of long-term testing services contract in China, for delivery in FY 2026 and beyond Results presentation – 11 November 2025
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AB Dynamics plc 2025 2024 Change Revenue £22.4m £25.2m ↓ 11% EBITDA £5.5m £7.5m ↓ 27% EBITDA margin 24.6% 29.8% ↓ 520 bps Adjusted operating profit £5.0m £7.0m ↓ 29% Adjusted operating margin 22.3% 27.8% ↓ 550 bps Simulation 10 Highlights • Revenue decrease driven by timing of simulator order intake in the final quarter of the year • Market launch of Delta S3 Spin simulator product, with first order received late in the year • High value simulator sales are individually material and timing of order intake impacts reported results Results presentation – 11 November 2025
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AB Dynamics plc Key financial enablers Results presentation – 11 November 202511 Cash conversion 112% Last three-year average 100% Aim to continue at this level through the cycle Strong balance sheet c£40m Cash positive £20m RCF extended to February 2028 c£55m Debt capacity of 2x EBITDA Capital allocation Organic R&D and capex M&A Dividends Great people 553 Global employees 200+ Qualified engineers and technicians c90% Retention rate
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AB Dynamics plc Capital allocation Results presentation – 11 November 202512 1. Organic R&D and capex • New product development • Capacity and production growth • ERP system investment driving margin improvement 2. M&A • Targeted acquisitions • EPS accretive 3. Dividends • Progressive dividend policy • Share buybacks only considered if holding surplus cash and acquisition multiples become unattractive 10% 12% 14% 16% 18% 20% 22% 24% 0% 20% 40% 60% 80% 100% 120% 2022 2023 2024 2025 ROCE Capital deployed (% of EBITDA) Capital deployed Capex M&A Dividends ROCE
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AB Dynamics plc Update on our growth strategy Results presentation – 11 November 202513 Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate AB Dynamics plc
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AB Dynamics plc Medium-term growth ambition Results presentation – 11 November 202514 Medium-term ambition H1 2025 FY 2025 Our ambition is to double revenue and triple operating profit over the medium term 10% revenue growth +11% +3% Targeting >20% operating margin Up 160 bps to 18.6% Up 210 bps to 20.3% Investment in acquisitions Bolab acquired Pipeline continues to progress M&AFY 2024 Adjusted operating profit Organic revenue growth Margin expansion Medium-term ambition
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AB Dynamics plc Organic growth drivers Results presentation – 11 November 202515 AB Dynamics plc
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AB Dynamics plc Organic growth drivers Results presentation – 11 November 202516 New vehicle models New powertrains Consumer ratings Regulation • Increasing number of models requiring development and certification • Increasing drive for cost efficiency and speed to market • Increasing number of powertrains • New EV model launches expected to increase significantly in the long term • Growing complexity and number of tests • Expansion of NCAPs in non-mature markets and into new vehicle categories • Improving safety technology • Increasing regulation globally FY 2025 MARKET UPDATE • Impact of tariffs causing disruption, but OEMs remain committed to R&D • Traditional OEMs focusing on reducing speed to market to counter Chinese new entrants, via simulation • More moderate growth for EVs means ICE and hybrid vehicles are expected to be available for longer • New US regulation and Euro NCAP protocols require significant development work by OEMs KEY TAKEAWAY: OUR MARKET DRIVERS SUPPORT DOUBLE-DIGIT REVENUE GROWTH IN THE MEDIUM TERM • We are: –OEM agnostic, with over 150 different customers –Geographically diverse –Powertrain agnostic • We sell into R&D functions therefore production volumes are not directly relevant to us • Adoption of simulation by OEMs will continue to grow
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AB Dynamics plc Margin expansion Results presentation – 11 November 202517 AB Dynamics plc
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AB Dynamics plc Improved supply chain Efficiency and effectiveness Simplify Standardise Operational gearing How was this achieved? • Supplier Quality Management System implemented • Reduction in direct labour input times through planning and layout improvements • Product configuration options and components rationalised Impact: • Reduced rework and wastage • Contributed to operating margin improvement Scale ERP platform Culture Three opportunities . . . Across three core focus areas Margin expansion A programme of incremental improvements underpinned by our new ERP 18 Operational improvements of £1.1m delivered Results presentation – 11 November 2025
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AB Dynamics plc M&A Results presentation – 11 November 202519 AB Dynamics plc
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AB Dynamics plc Inorganic growth driver – M&A A strong financial framework delivering value enhancing M&A 20 • Strong track record of delivering and integrating value-enhancing acquisitions • Our M&A pipeline is healthy and based on clear criteria • We have the resources in place to execute • We target profitable, cash generative businesses capable of achieving strong ROI, which are EPS accretive • Typically targets will offer new product or service capabilities that can be cross- sold through our existing sales channels and relationships • Highly disciplined approach to deal execution and post-acquisition integration 25 focused relationships 50 opportunities Results presentation – 11 November 2025 Acquisition of Bolab completed Integrated into our Testing Products segment Withdrew from further transaction as a result of due diligence findings, while continuing to build relationships with a number of targets 2025 update Up to 4 active discussions Preferred approach: transact off-market
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AB Dynamics plc Wrap up Results presentation – 11 November 202521 Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate AB Dynamics plc
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AB Dynamics plc Summary and outlook 2025 summary • Double-digit revenue growth in H1 • H2 growth impacted by tariffs, FX and macroeconomic market challenges • Strong profit growth driven by margin expansion from a combination of operational improvements and revenue mix • Diluted EPS growth of 15% and dividend growth of 20% • Strong cash conversion 2026 outlook • OEM agnostic, powertrain agnostic and sells into automotive R&D, providing resilience • The Group is geographically diversified and supplies market-leading products which are critical to our customers’ future success • Order book of £32m (FY 2024: £30m) • Whilst mindful that short-term macroeconomic disruption may continue into the first half of FY 2026, the Board expects adjusted operating profit for FY 2026 to be in line with current expectations 1, with an expected bias towards H2 • Future growth prospects remain supported by long-term structural and regulatory growth drivers, underpinning our medium-term financial objectives2 22 Results presentation – 11 November 2025 Operating profit growth 15% Operating margin 20.3% Cash conversion 106% 1 See appendix 7 for current expectations. 2 See appendix 1 for medium-term financial objectives.
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AB Dynamics plc Summary of growth strategy and value creation plan Our ambition is to double revenue and triple operating profit against FY 2024 baseline Good pipeline of acquisition opportunities which could be funded from c£40m year end cash Long-term structural and regulatory market drivers remain supportive of continued growth Free cash flow provides strategic optionality Operational improvement initiatives support margin expansion 23 Results presentation – 11 November 2025
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AB Dynamics plc Appendices Results presentation – 11 November 202524 AB Dynamics plc
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AB Dynamics plc Appendix 1: Medium-term financial assumptions and objectives 25 Revenue (CAGR) Adjusted operating margin 10% organic >20% Operating cash Net debt to EBITDA conversion 100% through cycle Up to 1.0x Capex % of revenue R&D % of revenue Circa 5% (partly 5% – 6% customer funded) FX Group underlying effective tax rate 10% stronger GBP = -5% revenue and profit 21% – 23% Medium-term targets: Other financial guidance: This information was first published in our FY 2024 results presentation in November 2024 and is repeated for reference. Results presentation – 11 November 2025
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AB Dynamics plc Appendix 2: Income statement 26 2025 2024 Change Revenue £114.7m £111.3m ↑ 3% Gross margin 62.0% 59.6% ↑ 240 bps Adjusted* EBITDA £27.8m £24.2m ↑ 15% Adjusted* operating profit £23.3m £20.3m ↑ 15% Adjusted* operating margin 20.3% 18.2% ↑ 210 bps Adjusted* tax rate 18.3% 18.5% ↓ 20 bps Adjusted* diluted earnings per share 80.3p 70.0p ↑ 15% Total dividend per share 9.16p 7.63p ↑ 20% Adjusted* cash flow from operations £29.4m £27.9m ↑ 5% Cash conversion* 106% 115% * Before amortisation of acquired intangibles, acquisition related charges and exceptional items. Results presentation – 11 November 2025
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AB Dynamics plc Appendix 3: Revenue detail 27 Revenue by segment Testing Products Testing Services Simulation Revenue by geography Europe North America Asia Pacific Rest of World Revenue by customer category Automotive OEMs Service providers Tier 1 suppliers and technology Revenue (£m) % of revenue Testing Products 74.3 65 Testing Services 18.0 16 Simulation 22.4 19 Revenue (£m) % of revenue Europe 31.8 28 North America 29.4 26 Asia Pacific 53.3 46 Rest of World 0.2 0 Revenue (£m) % of revenue Automotive OEMs 86.7 76 Service providers 24.0 21 Tier 1 suppliers and technology 4.0 3 Results presentation – 11 November 2025
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AB Dynamics plc Appendix 4: Constant currency 28 Constant currency analysis 2025 as reported £m 2025 restated at 2024 rates £m 2024 £m Change % Revenue 114.7 116.1 111.3 +4% Adjusted operating profit 23.3 23.5 20.3 +16% Average exchange rate 2025 2024 US dollar 1.30 1.26 Euro 1.19 1.17 Japanese yen 193 191 Sensitivity analysis % of revenue Impact of GBP strengthening by 10% on: Revenue £m Operating profit £m US dollar 21% 2.2 0.5 Euro 21% 2.2 0.5 Japanese yen 11% 1.2 0.2 Total 53% 5.6 1.2 • Future guidance based on $1.30, €1.19, ¥193 Results presentation – 11 November 2025
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AB Dynamics plc Appendix 5: Alternative performance measures 29 Profit impact Cash flow impact 2025 £m 2024 £m 2025 £m 2024 £m Amortisation of acquired intangibles 6.2 6.4 — — Acquisition related costs 0.5 0.2 0.5 0.2 ERP development costs 1.1 1.0 1.1 1.0 Acquisition related finance costs 0.5 0.4 — — Total adjustments 8.3 8.0 1.6 1.2 Results presentation – 11 November 2025
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AB Dynamics plc Appendix 6: Balance sheet 30 2025 £m 2024 £m Goodwill and intangibles 77.5 78.4 Property, plant and equipment 32.0 32.5 Fixed assets 109.5 110.9 Working capital 4.0 3.6 Assets held for sale 1.9 1.9 Net cash 41.4 28.6 Net current assets 47.3 34.1 Deferred tax liabilities (9.7) (7.5) Contingent consideration (7.2) (6.2) Net assets 139.9 131.3 • Balance sheet remains robust demonstrating the Group’s resilience to macroeconomic pressures • Net cash position allows the Group to focus on its strategy for long-term sustainable growth • Revolving credit facility increased to £20m during the period. Runs to February 2028, with options to extend for up to a further two years Results presentation – 11 November 2025
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AB Dynamics plc Appendix 7: Market consensus 31 FY 2026 FY 2027 Adjusted operating profit (£m) 24.5 26.9 Adjusted earnings per share (diluted) (pence) 80.0 87.4 Gross cash (£m) 39.8 49.4 • The Group is aware of eight analysts publishing independent research on the Group • The Group has compiled consensus data* from the research it has been made aware of. The mean is set out below: * Compilation of data only, does not represent the Group’s views of projections. Results presentation – 11 November 2025
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AB Dynamics plc Appendix 8: Organic growth drivers – high quality long-term customer relationships Customer experience with ABD throughout the development cycle from concept design to launch 32 Concept design Sub-system design Sub-system testing Prototype ADAS testing Durability testing Type approval On-road testing NCAP testing Customer type OEM Tier 1 supplier OEM Tier 1 supplier OEM OEM Service provider Tier 1 supplier OEM Service provider Ratings body/ regulator OEM Ratings body What we do • Simulation • Human factors • SPMM benchmark • SPMM data • Simulation • Testing Products • Testing Services • Testing Products • Testing Services • Testing Products • Testing Services • Testing Products • Testing Services • Testing Products Teams involved 1 2 3 4 5 6 7 8 This information was first published in our FY 2024 results presentation in November 2024 and is repeated for reference. Results presentation – 11 November 2025
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AB Dynamics plc Appendix 9: Acquisition timeline The team is experienced in successfully executing and integrating transactions Results presentation – 11 November 202533 Simulation software and digital twins, used to accelerate vehicle development including testing and validation of assistance systems, autonomy and vehicle dynamics Full-scale track testing services plus R&D services and consultancy in the areas of dynamics, human-machine interaction, ergonomics, driver assistance and autonomy Pre-production and production quality assurance testing including comprehensive vehicle, component and function testing on public roads and closed test tracks Driver-in-loop motion platforms for motorsport and vehicle development and research Provider of vehicle testing services for powertrain development through mileage accumulation and environmental testing of vehicles for product durability, performance and compliance 2019 2020 2021 2022 2023 2024 A B C D E A B C D E 2025 F F Supplier of automotive power electronics testing systems, for testing automotive sub- systems and components for conventional, hybrid and electric vehicles This information was first published in our FY 2024 results presentation in November 2024 and is repeated for reference.
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AB Dynamics plc Appendix 10: Summary of growth strategy and value creation Our ambition is to double revenue and triple operating profit against FY 2024 baseline 34 ~£30-50m 10% >20% Organic growth Adjusted operating marginCash conversion Acquisition spend per year self-funded This information was first published in our FY 2024 results presentation in November 2024 and is repeated for reference. Results presentation – 11 November 2025 ~100%
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AB Dynamics plc Disclaimer 35 No representation or warranty, express or implied, is made or given by or on behalf of AB Dynamics plc (the “Company” and, together with its subsidiaries and subsidiary undertakings, the “Group”) or any of its directors or any other person as to the accuracy, completeness or fairness of the information contained in this presentation and no responsibility or liability is accepted for any such information. This presentation does not constitute an offer of securities by the Company and no investment decision or transaction in the securities of the Company should be made on the basis of the information contained in this presentation. This presentation contains certain information which the Company’s management believes is required to understand the performance of the Group. However, not all of the information in this presentation has been audited. Further, this presentation includes or implies statements or information that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may use forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should". By their nature, forward-looking statements involve risks and uncertainties and recipients are cautioned that any such forward-looking statements are not guarantees of future performance. The Company's or the Group’s actual results and performance may differ materially from the impression created by the forward-looking statements or any other information in this presentation. The Company undertakes no obligation to update or revise any information contained in this presentation, except as may be required by applicable law and regulation. Nothing in this presentation is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financial or otherwise, of the Company or the Group whether in the current or any future financial year. This presentation and its contents should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. Certain information in this presentation has been extracted from the announcement of FY25 full year results made by the Company on 11 November 2025 and this presentation is not a substitute for reading that announcement in full. Results presentation – 11 November 2025
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Thank you AB Dynamics plc Middleton Drive Bradford on Avon Wiltshire BA15 1GB Email: investors@abdplc.com Tel: +44 (0)1225 860 200 www.abdplc.com