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APOLLO MICRO SYSTEMS LTD We Commit, We Deliver EARNINGS PRESENTATION – Q2 & H1 FY27 LAND WATER AIR SPACE 1 A LANDMARK QUARTER AND RECORD BREAKING HALF- YEAR PERFORMANCE
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 2 INDEX EARNINGS PRESENTATION · Q2 & H1 FY27 01 Financial Performance Slides 3–14 02 Ownership & Leadership Slides 15–17 03 Company Overview Slides 18–26 04 Acquisition: Backward & Forward Integration Slides 27–29 05 OEM Weapons Supplier Slides 30–40 06 Indigenized Missile Programmes Slides 41–48 07 Naval Programmes Slides 49–51 08 Other Programmes Slides 52–53 09 Arms & Ammunition Slides 54–56 10 Global Defence Landscape Slides 57–65 11 India Defence Sector & Market Tailwinds Slides 66–76 12 Disclaimer & Investor Contact Slides 77–78
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED Q 2 & H 1 F Y 2 7 FINANCIAL PERFORMANCE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 3
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HALF YEARLY RESULT · CONSOLIDATED RECORD-BREAKING HALF YEARLY RESULT E X T E N D I N G O U R S T R E A K O F S T R O N G H A L F Y E A R LY P E R F O R M A N C E H1FY27 (All figures in millions) | * Excluding Other Income R E V E N U E F R O M O P E R A T I O N S ₹ 6,394.4 + 78.2 % YoY E B I T D A * ₹ 1,649.1 + 64.7 % YoY P A T ₹ 713.7 + 49.6 % YoY E X H I B I T 1 : Y E A R - O N - Y E A R G R O W T H Revenue EBITDA* PAT 78.2% 64.7% 49.6% M A R G I N P R O F I L E EBITDA Margin 25.8% PAT Margin 11.2% Highest Ever Half Year Revenue Registered Highest Ever Half Year EBITDA Achieved Highest Ever Half Year PBT Registered Highest Ever Half Year PAT clocked 4Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED C A S H F L O W F R O M O P E R A T I O N S ₹ 224.4 W O R K I N G C A P I T A L D A Y S 353 DAYS vs 359 DAYS in FY26
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H1FY27 HALF YEARLY RESULT · STANDALONE RECORD- BREAKING HALF YEARLY RESULT E X T E N D I N G O U R S T R E A K O F S T R O N G H A L F Y E A R P E R F O R M A N C E (All figures in millions) | * Excluding Other Income Y E A R - O N - Y E A R G R O W T H Revenue EBITDA* PAT 28.8% 55.6% 44.0% R E V E N U E F R O M O P E R AT I O N S ₹ 4,621.8 + 28.8 % YoY E B I T D A * ₹ 1,559.3 + 55.6 % YoY PAT ₹ 755.6 + 44.0 % YoY M A R G I N P R O F I L E EBITDA Margin 33.7% PAT Margin 16.3% Highest Ever Half Year Revenue Registered Highest Ever Half Year EBITDA (ex OI) Achieved Highest Ever Half Year PBT and PAT Registered Highest Ever Half Year EBITDA and PAT Margins clocked 5Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED C A S H F L O W F R O M O P E R A T I O N S ₹ 124.3 H I G H L I G H T S
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QUARTERLY RESULT · CONSOLIDATED EXTENDING OUR STREAK OF STRONG QUARTERL Y PERFORMANCE R E V E N U E F R O M O P E R AT I O N S 3,881.5₹ Mn +72.3% YoY E B I T D A * 1,111.8₹ Mn +87.8% YoY P AT +53.7% YoY Y E A R - O N - Y E A R G R O W T H ( % ) Revenue EBITDA* PAT 72.3 87.8 53.7 M A R G I N P R O F I L E · O R D E R B O O K ( a s o n 3 0 t h S e p t e m b e r 2 0 2 6 ) 28.6% EBITDA M A RGIN 11.9% PAT M ARGIN ORD ER BOO K All figures in millions | * Excluding Other Income 6Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED Revenue Reached All- Time High Across All Quarters EBITDA* Reached All- Time High Across All Quarters PAT Reached All- Time High Across All Quarters 461.5₹ Mn 17650₹ as on 30th Sep 2026
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QUARTERLY RESULT · STANDALONE RECORD-BREAKING QUARTER 2 E X T E N D I N G O U R S T R E A K O F S T R O N G Q UA R T E R LY P E R F O R M A N C E (All fi gures in millions) | * Excluding Other Income Q2FY27 R E V E N U E F R O M O P E R A T I O N S ₹ 3,062.9 + 36.0 % YoY E B I T D A * ₹ 1,075.6 + 81.6 % YoY P A T ₹ 477.3 + 44.4 % YoY Y E A R - O N - Y E A R G R O W T H Revenue EBITDA* PAT 36.0% 81.6% 44.4% M A R G I N P R O F I L E EBITDA Margin 35.1% PAT Margin 15.6% 01 Highest Ever Revenue across all Quarters registered. 02 Highest Ever EBITDA* Achieved 03 Highest Ever PAT recorded across all Quarters. 04 Highest Ever EBITDA Margin clocked across all Quarters. 7Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED
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Q 2 F Y 2 7 & H 1 F Y 2 7 · C O N S O L I D A T E D Revenue from Operations ₹ 3,881.5 +72.3% YoY EBITDA (ex Other Income) ₹ 1,111.8 +87.8% YoY PAT ₹ 461.5 +53.7% YoY EBITDA excludes other income CONSOLIDATED INCOME STATEMENT Particulars (Rs in Mn) Q2FY27 Q1FY27 QoQ Q2FY26 YoY H1FY27 H1FY26 YoY Revenue from Operations 3881.5 2512.9 54.5% 2252.6 72.3% 6394.4 3588.5 78.2% Other Income 35.4 22.5 13.0 57.9 21.7 Total Revenue 3916.9 2535.4 54.5% 2265.7 72.9% 6452.3 3610.2 78.7% Total Expenses except Depreciation, Amortization and Finance Cost 2769.7 1975.6 1660.8 4745.4 2587.2 EBITDA (ex Other Income) 1111.8 537.3 106.9% 591.9 87.8% 1649.1 1001.3 64.7% EBITDA Margin 28.6% 21.4% 26.3% 25.8% 27.9% Finance Cost 146.3 107.2 126.0 253.5 246.2 Depreciation 76.0 75.9 47.5 152.0 92.4 PBT 924.8 376.7 145.5% 431.5 114.3% 1301.4 684.4 90.2% Tax 463.2 124.5 131.2 587.7 207.3 PAT 461.5 252.2 83% 300.3 53.7% 713.7 477.1 49.6% PAT Margin 11.9% 10.0% 13.3% 11.2% 13.3% Diluted EPS 1.3 0.7 0.9 2.1 1.5 8Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED F I N A N C I A L R E S U LT S RECORD-BREAKING PERFORMANCE
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F I N A N C I A L R E S U LT S Revenue from Operations ₹ 3,062.9 +36.0% YoY PAT ₹ 477.3 +44.4% YoY EBITDA Margin 35.1% Q2FY26: 26.3% PAT Margin 15.6% Q2FY26: 14.7% 9Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED STANDALONE INCOME STATEMENT EBITDA excludes other income Particulars (Rs in Mn) Q2FY27 Q1FY27 QoQ Q2FY26 YoY H1FY27 H1FY26 YoY Revenue from Operations 3062.9 1558.9 96.5% 2252.6 36.0% 4621.8 3588.5 28.8% Other Income 87.6 73.6 31.7 161.1 45.1 Total Revenue 3150.4 1632.5 93.0% 2284.3 37.9% 4783.0 3633.6 31.6% Total Expenses except Depreciation, Amortization and Finance Cost 1987.3 1075.3 1660.4 3062.5 2586.4 EBITDA (ex Other Income) 1075.6 483.7 122.4% 592.2 81.6% 1559.3 1002.1 55.6% EBITDA Margin 35.1% 31.0% 26.3% 33.74% 27.9% Finance Cost 130.1 93.2 101.2 223.3 201.5 Depreciation 57.5 57.0 47.4 114.5 92.3 PBT 975.6 407.0 139.7% 475.2 105.3% 1382.7 753.4 83.5% Tax 498.3 128.7 144.7 627.0 228.7 PAT 477.3 278.3 71.5% 330.5 44.4% 755.6 524.7 44.0% PAT Margin 15.6% 17.9% 14.7% 16.3% 14.6% Diluted EPS 1.3 0.8 1.0 2.1 1.5 RECORD-BREAKING PERFORMANCE
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED FINANCIAL HIGHLIGHTS- HISTORICAL (CONSOLIDATED FIGURES) (All Figures in Millions) Revenue from Operations 3.67x FY20 FY21 FY22 FY23 FY24 FY25 FY26 2,459 2,031 2,432 2,975 3,716 5,621 9,043 EBITDA (ex Other Income) & PAT 4.48x FY20 FY21 FY22 FY23 FY24 FY25 FY26 EBITDA (ex Other Income) PAT EBITDA & PAT margin FY20 FY21 FY22 FY23 FY24 FY25 FY26 20% 19% 19% 22% 23% 23% 24% 6% 5% 6% 6% 8% 10% 12% EBITDA Margin* PAT Margin ROCE & ROE FY21 FY22 FY23 FY24 FY25 FY26 10% 11% 12% 13% 18% 18% 3% 5% 5% 7% 10% 11% ROCE ROE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 10
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED FINANCIAL HIGHLIGHTS- HISTORICAL (All Figures in Millions, otherwise stated) R&D (% of revenue in labels) FY21 (6.6%) FY22 (6.1%) FY23 (8.9%) FY24 (8.0%) FY25 (6.0%) FY26 (8.0%) 134 147 266 298 335 725 Interest Coverage Ratio FY21 FY22 FY23 FY24 FY25 FY26 1.9 2.1 2.4 2.4 3.3 4.1 Inventory, Receivable & Payable Days FY21 FY22 FY23 FY24 FY25 FY26 517 519 547 540 469 413 270 226 171 185 152 143 161 205 206 198 208 198 Inventory Days Receivable Days Payable Days Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 11 FY21 FY22 FY23 FY24 FY25 FY26 626 540 512 527 413 359 Working Capital Days
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED CONSOLIDATED INCOME STATEMENT – HISTORICAL Particulars (Rs in Mn) FY20 FY21 FY22 FY23 FY24 FY25 FY26 Revenue from Operations 2459.0 2030.7 2431.9 2975.3 3716.3 5620.7 9043.2 Other Income 16.0 6.4 7.6 8.2 18.3 28.9 62.7 Total Revenue 2475.0 2037.1 2439.5 2983.5 3734.6 5649.5 9106.0 Total Expenses except Depreciation, Amortization and Finance Cost 1972.4 1645.5 1976.7 2334.3 2877.7 4328.6 6861.6 EBITDA (ex Other Income) 486.7 385.3 455.2 640.9 838.7 1292.1 2181.6 EBITDA Margin 19.8% 19.0% 18.7% 21.5% 22.6% 23.0% 24.1% Finance Cost 151.0 160.2 170.5 223.7 303.0 342.2 473.2 Depreciation 99.0 86.9 89.8 103.7 113.0 153.3 223.2 PBT 252.6 144.6 202.5 289.6 440.9 825.5 1548.0 Tax 112.5 42.1 56.4 102.2 129.9 261.9 474.2 PAT 140.1 102.5 146.2 187.4 311.1 563.6 1073.8 PAT Margin 5.7% 5.0% 6.0% 6.3% 8.4% 10.0% 11.9% Diluted EPS 0.7 0.5 0.7 0.6 1.2 1.9 3.2 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 12
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED CONSOLIDATED BALANCE STATEMENT – HISTORICAL F Y 2 6 T O T A L A S S E T S ₹ 23,685.1 Key Balance Sheet Items(Rs in Mn) FY20 FY21 FY22 FY23 FY24 FY25 FY26 Equity Share Capital 207.6 207.6 207.6 207.6 282.4 306.5 357.3 Reserves 2751.6 2851.7 2992.7 3634.4 4909.8 5769.2 12724.9 Borrowings 132.0 162.2 1157.8 1436.5 2080.4 3353.5 5432.6 Other Liabilities 990.7 1313.2 353.4 524.9 632.4 793.9 1350.1 Trade Payables 569.4 783.0 1280.6 1122.9 1657.4 2771.9 3820.1 Total Liabilities 4651.2 5317.7 5992.1 6926.3 9562.4 12994.9 23685.1 Net Block 502.6 490.8 858.8 1048.1 1407.0 1722.7 3152.6 Capital Work In Progress 365.2 522.1 296.2 316.4 348.4 722.8 1962.9 Other Assets 224.3 218.9 349.0 539.8 911.3 1534.9 4242.3 Trade Receivables 1354.8 1695.0 1364.1 1466.0 2352.7 2383.3 4813.2 Inventory 2079.5 2256.9 2961.6 3415.3 4335.6 6006.4 7952.9 Cash and Cash Equivalents 124.8 134.0 162.3 140.8 207.4 624.8 1561.1 Total Assets 4651.2 5317.7 5992.1 6926.3 9562.4 12994.9 23685.1 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 13
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED CONSOLIDATED CASHFLOW STATEMENT – HISTORICAL Particulars (Rs in Mn) FY20 FY21 FY22 FY23 FY24 FY25 FY26 Cash Flow From Operating Activities 469.1 73.8 431.8 -162.9 -784.9 102.4 -1297.6 Cash Flow From Investing Activities -186.9 -238.6 -243.0 -347.6 -587.9 -912.9 -3569.0 Cash Flow From Financing Activities -360.3 165.1 -186.7 509.5 1372.3 1211.3 5358.9 Net Change in Cash and Cash Equivalents -78.1 0.4 2.2 -0.9 -0.5 400.7 492.3 Cash Flow Statement (Rs in Mn) - Graphical Representation FY20 FY21 FY22 FY23 FY24 FY25 FY26 Cash Flow From Operating Activities Cash Flow From Investing Activities Cash Flow From Financing Activities Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 14
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED OWNERSHIP & LEADERSHIP Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 15 Q2 & H1 FY27
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Shareholding Pattern Half promoter-held. Strong promoter skin in the game, with growing institutional participation alongside a broad public float. Institutional Investors * As of the quarter ending Sep 2026 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED SHAREHOLDING STRUCTURE AND INSTITUTIONAL INVESTORS Shareholding Pattern 49.98% Promoter 7.45% Institutions 42.58% Public Half promoter-held. Strong promoter skin in the game, with growing institutional participation alongside a broad public float. 01 Vanguard Total International Stock Index Fund 02 State Street SPDR Portfolio Emerging Market ETF 03 Motilal Oswal Nifty India Defence Index Fund 04 Millingtonia Capital India Opportunity Fund 05 Morgan Stanley Asia 06 Axis Mutual Fund Nifty India Defence Index Fund 07 SPDR Portfolio Emerging Market ETF 08 Aditya Birla Sun Life Trustee Pvt Ltd 09 Red Bay 10 Chimera S&P India Shariah ETF 11 Vaneck India Growth Leaders ETF and many more Institutional Investors O W N E R S H I P 16
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SKIN IN THE GAME/ LEADERSHIP- LED WITH LONG TERM COMMITMENT Mr. Baddam Karunakar Reddy (Managing Director) He founded Apollo Micro Systems in 1985 and has been instrumental in driving innovation in defence electronics. Renowned for his expertise in engineering and miniaturization techniques, he has significantly enhanced the performance of various weapon systems. Under his visionary leadership, the company has emerged as a key supplier of weapon system electronics in India. His long-term vision is to establish Apollo as a world-class defence systems provider. Mr. Addepalli Krishna Sai Kumar (Whole Time Director- Operations) He is an Engineer with 25 years of experience in Sales & Marketing, Administration & Finance, serving Apollo Micro Systems Ltd for past 23 years. He has strong expertise in financial engineering and cash flow optimization, contributing to the company’s financial robustness and strategic initiatives. As Director (Operations), he manages day-to-day operations, business acquisition, new vertical development, and investor relations, driving the company’s growth and market leadership. Mr. Chandrapati Venkata Siva Prasad (Whole Time Director- Technical) He is a Post Graduate in Electronics. He handles Design & Development with 28 years of experience working on variety of technologies. He is serving AMS for past 24 years. His Design expertise, and product development capabilities are the best available in the industry. He is a core design architect for complex weapon system electronics of major Indigenous Defence programmes. LEADERSHIP WITH LONG TERM COMMITMENT Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 17
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED COMPANY OVERVIEW Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 18 Q2 & H1 FY27
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VISION 2036 A GLOBAL OEM, MADE IN INDIA O U R V I S I O N To grow as a Global Original Equipment Manufacturer over the next ten years with recognizable revenue streams across the Land, Air and Sea domains; increasing our presence in Indian markets and continuing to grow in global markets; delivering valued products built with conviction; and strengthening our Research & Development with the latest and most futuristic technologies. 1 A Global OEM, Made in India Move from being a Tier-1 supplier of critical electronics to a recognized Global Original Equipment Manufacturer of defence platforms. Apollo's brand will be visible on the platform itself, not just within its systems. 2 Revenue across Land, Air & Sea Recognizable, diversified revenue streams across all three operational domains so that no single platform, no single programme, and no single customer defines the Apollo story. 3 Indian Deepening and Global Pie Continue to deepen our presence in Indian defence procurement while growing meaningfully in global markets, converting this year's first export order into a sustained international revenue stream. 4 Conviction and Futuristic R&D Valued products built with conviction, backed by a research base continually strengthened with the latest and most futuristic technologies in RF, AI, Autonomy and Inertial Navigation. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 19
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Revenue CAGR 2021-2026 30% EBITDA (ex Other Income) CAGR 2021-2026 41% PAT CAGR 2021-2026 64% EBITDA Margin (ex Other Income) Average 5 Years 2022-2026 23% D/E Average 5 years 2022-2026 0.4 Standalone Performance over the years Diversified Portfolio Participation in 150+ Indigenous programmes The only company with Highest Participation in Indigenous Missile Programmes of DRDO. Expansion in margins Operating Margin- from 19% (FY20) to 28% (FY26) PAT Margin- from 6% (FY20) to 16% (FY26). demonstrated growth in both topline and bottom line, with bottom line growth (64%) outpacing that of the topline (30%). The only company in India working for weapon system platforms of DRDO for a period spanning over 41 years enriched with rich legacy of technical know how of development and manufacturing curve of Weapon System Platform. Working Capital Cycle days reduced from 626 days in FY21 to 359 days in FY26. ROCE substantially Increased to 18.23% in FY26 from 10% in FY21. Participation in 60+ programmes of DcPP as a sub-system partner Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED FULLY INTEGRATED DEFENCE COMPANY P U R E P L AY D E F E N C E The only private public listed company in Indian defense sector having largest infrastructure including R&D capabilities. The only company in India with a proven track record of supplying from an individual systems to complete platforms, including explosives. End-to-End Capabilities 1 Explosives 2 Critical Sub-systems / Systems 3 Platforms 4 Weapons 5 Weapon Integration Diversified Portfolio Missiles Drones Rockets Underwater Weapons VMCDS Aerial Bombs Direct Energy Weapons Explosives Ammunitions 700+ Onboard Technologies Awarded License by GOI to manufacture, assemble, integrate, proof-test high strategic value weapons systems and ammunitions namely Missiles, ATGMs, Torpedoes, Underwater Mines, SAM, Chaffs, Flares, Decoys, Aerial Bombs, Rockets, Loitering Munitions. Participation in Multiple Programmes KUSHA QRSAM AGNI RUDRAM RUSTOM MAREECH PRALAY BRAHMOS NG Please refer to slides 41 onward for more information. 20
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A P O L L O M I C R O S Y S T E M S L I M I T E D E A R N I N G S P R E S E N T A T I O N — S E P Q U A R T E R 2 0 2 6 Earnings Presentation Sep Quarter 2026 | Apollo Micro Systems Limited ACROSS THE ENTIRE MISSILE VALUE CHAIN 01 Design Engineering Services 02 Build-to-Specification (BTS) 03 Weapon Manufacturing 04 Weapon System Integration 05 Global OEM H E A D I N G T O WA R D S T H E V I S I O N 2 0 3 6 We began our journey with design Engineering Services, progressed to Build-to-Specification (BTS) capabilities, expanded into weapon manufacturing, and are now advancing into weapon system integration as we evolve toward becoming a globally recognized Original Equipment Manufacturer (OEM). E N T I R E M I S S I L E VA L U E C H A I N I Warheads II Missile Electronics III Propulsion IV Explosives ▼ GUI DE D W EAP ON With entire span of value chain we have every block of the Guided Weapon. A Rare Combination A rare combination of proprietary weapon development capabilities and active participation in national weapon development programmes led by DRDO. A Different Starting Point Unlike many peers that began by serving the Indian Air Force, we started in partnership with DRDO and the Indian Navy expanding since into multiple defence platforms and a broad weapon systems portfolio. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 21
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Earnings Presentation Sep Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED O U R U N I Q U E N E S S DEEPLY ENTRENCHED IN in UNDERWATER WARFARE O U R P R E S E N C E A C R O S S 01 Decoys 02 Torpedoes 03 Rockets 04 Mines 05 Kamikaze Boat 06 ASW Surveillance O N L Y C O M P A N Y I N I N D I A COMPLETE UNDER WATER MINE OFFERINGS MIGM Moored Limpet Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 22
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To fight an intensive war , India needs a resilient domestic supply chain, greater capacity and deeper inventories. Capacity Supply chain THE RESPONSE · DRDO missile tech transfer opens new opportunities for Apollo IN P L ACE Critical electronic elements Precision Machining Testing facility Reliable network of suppliers IN P R O GR E S S Seeker Development work started Infrastructure (greenfield) Expansion underway VIA ACQUISITION Propulsion Via Premier Explosives Ltd Specialized explosive handling Via IDL Explosives and Premier Explosives W H Y I T M AT T E R S The most critical and most sensitive parts of a missile. 01 P R O P U L S I ON 02 A D V A N C E D E L E C T R O N I C S 03 S E E K E R Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 23 RESILIENCE IS THE NEW FIREPOWER
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READY TO SERVE THE COUNTRY We anticipate a sharp increase in our internal demand for explosives and propellants as several of our matured munition platforms will be entering large- scale production, including: Underwater Mines Short and Medium Range Rockets Other Critical Munition and Armament Systems Anti Submarine Warfare Rockets READY TO SERVE THE COUNTRY Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 24
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WE ARE MAKING A SUSTAINABLE BUSINESS 1 D i v e r s i fi e d m i x A well-diversified business mix across domains (Water, Air and Land), clients (DPSUs and Private Players), geographies (Domestic and Overseas), and solution offerings (Weapons, Systems/ subsystems and explosives) underpins sustainable revenue growth. 2 Pro p r i e ta r y m o a t Exclusively developed proprietary systems create a competitive moat, eliminating direct competition through unmatched integration and control. 3 N i ch e se g m e n t s Strong presence in niche defense segments with high technological barriers and limited competitive intensity. Participation across all indigenized missile programme provides a protected and resilient revenue stream, supported by long term procurement orders. 4 T i e r -1 p ar t n e r Tier-1 suppliers often become strategic partners to OEMs, increasing the likelihood of repeat business and follow- on orders. Once qualified for a platform or programme, suppliers typically continue supplying components throughout the product's lifecycle, which can span several years or even decades in defence and aerospace. 5 In o rg a n i c g row th Driving inorganic growth through targeted acquisitions for backward and forward integration, enhancing value chain capabilities, expanding market reach, and supporting long-term revenue sustainability. 6 Va l u e + Vo l u me By balancing high-value solutions with high-volume products, we are building a more resilient business with stronger growth potential and improved cost efficiency. 7 A u to n o mo u s pl at f o r m s Our strategic entry into autonomous weapons and platforms, enabled by sustained investment in R&D, positions us to capitalize on long-term industry tailwinds. W ATER • AIR • LAND • SPACE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 25
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25 01 High switching costs High switching costs, reinforced by long-term partners early in a programme by OEM. Since Switching supplier later is costly OEM rarely change them making it hard for new suppliers to enter, scale up or reduce unit cost. Moreover long development cycle increases switching cost making it more cost effective to continue with existing contractors for modifications than scouting for new vendor. 02 Regulatory approvals Extensive approvals, security clearances, and compliance obligations significantly extend the time required to establish operations and obtain licences. The resulting delays in commercialization and higher compliance costs create a high entry barrier for new players. 03 Technology via ToT New companies may lack the technical expertise and resources to independently develop advanced defence technologies. Without access to established technologies through ToT, they face longer development cycles, higher R&D costs, and greater uncertainty in competing with established defence players. 04 Capital intensity Defence manufacturing requires significant investment in facilities, specialized equipment, testing infrastructure, and continuous product development. The resulting high initial cash burn deter new entrants. 05 Hyderabad ecosystem Hyderabad’s established defence ecosystem, proximity to key defence research institutions, skilled talent pool, and presence of major defence organizations create a strong operational advantage. New entrants may face challenges in replicating these established networks, supply chains, and institutional linkages. 06 Steep learning curve The industry’s demanding learning curve functions as a structural entry barrier, requiring significant time and expertise in complex sub-systems/ systems/ platforms/ weapons before achieving operational competence. WE ARE IN AN INDUSTRY WITH SIGNIFICANT ENTRY BARRIERS Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 26
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED A C Q U I S I T I O N BACKW ARD AND FORW ARD INTEGRATION Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 27
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Earnings Presentation Sep Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED D E F E N C E E X P L O S I V E S POWERING INDIA’S STRATEGIC MISSILES P R E M I E R E X P L O S I V E S LT D Premier Explosives Limited, headquartered in Hyderabad and listed on the NSE and BSE (est. 1980), manufactures high-energy materials, including solid propellants, explosives and pyrotechnic devices, for defence, space and mining applications, and contributes to several of India’s strategic missile and space programmes. C A P A B I L I T I E S 1 The only domestic manufacturer of counter- measures (chaffs & flares) for Indian defence, and an exporter of fully-assembled rocket motors. 2 The first private Indian maker of missile solid propellants and the world’s first commercial NHN-detonator producer. 3 1st in India to manufacture Explosives and Detonating fuse with indigenous technology. 4 Undertake operation and maintenance (O&M) services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur under the umbrella of DRDO. 5 Developed Solid Propellants for various missiles including combustion-stable Propellants for LRSAM, MRSAM, ASTRA etc. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 28
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IDL EXPLOSIVES LTD NEAR TERM STRATEGY 2 Adding Defence explosives as another revenue stream. 3 Backward integration into key chemicals and energetics for Defence explosives. Strategic Outcomes 01 Expanding the commercial explosives business while building a defence explosive portfolio to create a sustainable revenue stream. 02 03 Backward integration of critical chemicals reduces input cost volatility. 1 Unlocking incremental growth through renewed CIL eligibility. 2 Changing the Product Mix will improve the margins. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 29
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Earnings Presentation Sep Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED WE ARE MORE THAN MISSILES OEM WEAPONS SUPPLIER Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 30
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MULTI INFLUENCE GROUND MINES FIRST INDIGENIZED MINE A B O U T M I G M We are the approved production agency for Multi-Influence Ground Mine (MIGM) – Vighana, under DcPP by DRDO. Earlier only United States, Russia, China, and Italy were present — now with this achievement, India joins the league of technologically advanced nations in undersea warfare capabilities. Naval mines are an invisible enemy which allows any maritime nation to defend itself, regardless of its naval capability. They deter and push underwater and surface navies to move away from the shoreline towards the open sea. MIGM is designed to enhance the Indian Navy's capabilities against modern stealth ships and submarines. DAC APPROV AL HAS BEEN ACCORDED FOR MIGM ON 3rd JUL Y 2026 ✓ We are the DcPP Partner of MIGM. ✓ Programme is entering production phase. ✓ From fibers to electronics and explosives, every aspect is executed in-house, enabling complete supply chain independence. FIRST INDIGENIZED MINE “A mine is a terrible thing that waits. It waits and waits till it destroys/damages a naval vessel or is destroyed by the naval mine hunters.” Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 31
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MOORED MINES FIRST INDIGENIZED MINE W H AT I S A M O O R E D M I N E The Moored Mine is deployed where water is too deep for bottom mines and normally uses a combination of acoustic, magnetic and pressure sensors or even more sophisticated optical shadows or electro potential sensors. The Moored Mines have a weight attached to them which keep them anchored to a certain point. Moored mines remain at a particular depth and thus can target different types of vessels such as submarines and surface ships. AoN HAS ALREADY BEEN ACCORDED FOR MOORED MINES ✓ Programme is entering Production Phase. ✓ We are the only company in this category of Mine. ✓ From fibers to electronics and explosives, every aspect is executed in-house, enabling complete supply chain independence. “A mine is a terrible thing that waits. It waits and waits till it destroys/damages a naval vessel or is destroyed by the naval mine hunters.” Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 32
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FIRST INDIGENIZED LIMPET MINES GOI HAS IMPOSED AN EMBARGO ON LIMPET MINES ✓ Only we have demonstrated successful Trials in the industry. ✓ Mines of different weights have successfully completed all the trials. Entire Mine will be produced in-house, making us independent of the supply chain. ✓ Limpet Mines are entering the Production Phase. W H AT I S A L I M P E T M I N E A Limpet Mine is a type of naval mine that is usually manually placed by a diver on the underside of a ship's hull. These mines are manually attached to the target by magnets. These man-portable mines and multiple variations are developed for different missions by us. We have successfully completed the Combat Trials for the Indian Navy. ✓ Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 33
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AUTONOMOUS NAVAL WARFARE From unmanned surface boats to semi-submersible autonomous vehicles Our Expanding Autonomous Naval Portfolio AUTONOMOUS BOAT Unmanned surface vessels high-speed autonomous boats developed as part of our unmanned systems roadmap. SEMI-SUBMERSIBLE AUTONOMOUS UNDERWATER VEHICLE SAVIOR-ASW the Semi-Submersible Autonomous Vessel for Intelligence, Operations and Reconnaissance. How Autonomous Vessels Change the Fight 1 Autonomous boats pop up from the surface to ram into targets. 2 These small vessels are launched from multiple directions at high speed, saturating surveillance and defensive systems. 3 The purpose of the submersible is area denial and deterrence. Milestone Achieved MAKE-II PROTOTYPE SANCTION ORDER (PSO) AWARDED By the Indian Navy, for the development of SAVIOR-ASW , the Semi-Submersible Autonomous Vessel for Intelligence, Operations and Reconnaissance. An advanced class of Kamikaze boat is currently under development. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 34
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1 There is a critical need to advance the development of Anti-Submarine Warfare (ASW) rockets to effectively counter emerging and increasingly sophisticated underwater threats. 2 Because of the specialized nature of submarines, a distinct military strategy called anti-submarine warfare, or ASW , was created to counter them. Its primary objective is to defend ships and allied assets by identifying, locating, and eliminating enemy submarines, using sonar, aircraft, dedicated submarines, and formidable weaponry. 3 One of the most effective armaments used are anti-submarine rockets, which is known as a “Standoff” weapon. A Stand Off weapon is built to hit targets from a distance, allowing the launch platform the ability to evade the targets' defenses. 4 Because of the threat submarines pose, several of the most powerful navy destroyers in the world are armed with anti-submarine rockets. ANTI SUBMARINE WARFARE ROCKETS Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 35
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AERIAL BOMBS 1 These Aerial Bombs are fitted onto Unmanned Areal Vehicles (Loitering Munitions) that are designed to provide unprecedented levels of flexibility and precision in modern warfare and will be delivered to inflict damage to the targets. 2 The Aerial Bombs can be used as Anti-personal / Anti – tank / Anti- Bunker. 3 Nine Variants of Aerial Drop Bombs developed for dropping from aerial platforms like drones. E N T E R I N G T H E F U T U R E Entered into SMART BOMBS The Indian Air Force has sanctioned AMS a Make-II prototype sanction order for a 500 Kg Smart Bomb (July 2026), establishing us as a Prime OEM candidate in the Precision Guided Munition segment with an assured procurement pathway on successful trials. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 36
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED MEDIUM RANGE ROCKETS C O M P A C T F O R M F A C T O R Its compact form factor ensures compatibility with vehicle- mounted launch systems while maintaining the required aerodynamic stability, structural integrity, and operational effectiveness for counter-drone missions. G R O U N D T O A I R L A U N C H Ground to Air Launch developed for attacking Drones/ Swarm of Drones. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 37
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21 S H O O T & M O V E GRAD ROCKETS The BM-21 Grad Rockets (122 mm Global Standard) remain among the most widely demanded unguided rockets in the global defence market. It is considered the last line of defence for a warship against the enemy. 1 Successfully developed the 122mm rocket warhead inhouse. 2 Integrate warheads and rocket motors that are indigenously developed by us. 3 Remains in Service across dozens of countries, valued for its simplicity, reliability and overwhelming firepower. 4 The rocket motor is the primary propulsion system of a rocket and comprises the propellant, casing, nozzle, and ignition system. It is the most critical subsystem in determining the range, stability, thrust, and accuracy of artillery rockets. The image shown is for illustrative purposes only, as the project is currently under development. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 38
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The image shown is for illustrative purposes only, as the project is currently under development. VEHICLE MOUNTED COUNTER DRONE SYSTEMS (VMCDS) 1 Can be deployed and used while moving rather than fixed at one location 2 Detects, tracks and or defeats hostile or unauthorized drones. 3 The trials will be initiated in this Financial Year. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 39
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As the name suggests, they use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEW uses directed energy to heat up and destroy or damage the target. It has diverse military applications, offering rapid and precision strikes against threats such as UAVs, missiles, and small vehicles. The most important aspect of DEW is that it can be used in all warfighting environments. These technologies will enable us to design, manufacture, and support critical DEW subsystems for defence applications, enhancing indigenous capability in advanced weapon systems. 01 02 Transfer of Technology for Multi- Channel 10 kW Laser Directed Energy Weapon System from DRDO- CHESS, Hyderabad, subject to execution of a Licensed Agreement for Transfer of Technology (LAToT) and fulfillment of regulatory requirements. Transfer of Technology for EO Tracking System with EO Sensors for DEW from DRDO-IRDE, Dehradun. DIRECT ENERGY WEAPON (DEW) Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED The image shown is for illustrative purposes only, as the project is currently under development. 40
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED PRESENCE IN ALL THE INDIGENIZED MISSILE PROGRAMMES The requirement of missile systems is envisaged to grow significantly in the upcoming years with the induction of a large number of ships, submarines and aircrafts. Q2 & H1 FY27 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 41
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Apollo electronics and subsystems across nine missile categories Air to Surface Missile (ASM) RUDRAM Surface to Air Missile (SAM) VLSRAM (ASTRA Variant), AKASH / NGRAM, QRSAM, SANT, KUSHA Anti Radiation Missile RUDRAM, STAR, NGRAM Anti Tank Missile NAG, AMOGHA 2, HELINA, MPATGM Anti Ship Missile LRAHSM, NASM Cruise Missiles NIRBHAY , SLCM, BRAHMOS NG Ballistic Missile K4, PRALAY Anti Submarine Missile SMART Nuclear Missile AGNI BUILT INTO EVERY INDIGENIZED MISSILE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 42
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Nuclear Submarine Arihant Aridhaman Torpedo TAL Varunastra Submarine Launched Torpedo ALWT EHWT Underwater Mine MIGM Moored Mines Expendable Decoys MAREECH MOHINI Naval programmes — from nuclear submarines to expendable decoys BUILT FOR EVERY INDIGENIZED PROGRAMME Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 43
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Bombs TARA GARUTHMA GARUDA LRGB Artillery PINAKA GUIDED PINAKA ATAGS Others RUSTOM UAV VSHORAD AIR DEFENCE SYSTEM HYPERSONIC TECHNOLOGY DEMONSTRATOR VEHICLE Bombs, artillery and advanced programmes BUILT FOR EVERY INDIGENIZED PROGRAMME Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 44
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED I N D I G E N I Z E D M I S S I L E BALLISTIC, NUCLEAR, ANTI-SUBMARINE & AIR-TO-SURFACE Ballistic, nuclear, anti-submarine and air-to-surface programmes 1 PRALAY BALLISTIC MISSILE 2K4 BALLISTIC MISSILE 3 SMART ANTI SUBMARINE MISSILE 4AGNI NUCLEAR MISSILE 5 RUDRAM AIR TO SURFACE MISSILE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 45
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NIRBHAY C R U I S E M I S S I L E SLCM C R U I S E M I S S I L E NASM A N T I S H I P M I S S I L E LRAHSM A N T I S H I P M I S S I L E CRUISE AND ANTI –SHIP PROGRAMMES 1 2 34 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED I N D I G E N I Z E D M I S S I L E 46
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SURFACE-TO-AIR PROGRAMMES 1 AKASH SURFACE TO AIR MISSILE 2 VLSRAM SURFACE TO AIR MISSILE 3 NGRAM SURFACE TO AIR MISSILE 4 QRSAM SURFACE TO AIR MISSILE 5 SANT SURFACE TO AIR MISSILE Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED I N D I G E N I Z E D M I S S I L E 47
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED ANTI-TANK AND ANTI-RADIATION Anti-tank and anti-radiation programmes ANTI TANK ANTI RADIATION HELINA ANTI TANK MISSILE AMOGHA 2 ANTI TANK MISSILE NAG ANTI TANK MISSILE MPATGM ANTI TANK MISSILE STAR ANTI RADIATION MISSILE NGRAM ANTI RADIATION MISSILE RUDRAM ANTI RADIATION MISSILE I N D I G E N I Z E D M I S S I L E Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 48
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NAV AL PROGRAMMES Q2 & H1 FY27 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 49
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Earnings Presentation Sep Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED DENIAL & DETERRENCE Denial and deterrence. Expendable decoys protect fleet assets by attracting incoming torpedoes away from their targets. MIGM U N D E R W AT E R M I N E S MOORED MINES U N D E R W A T E R M I N E ARIHANT N U C L E A R S U B M A R I N E N U C L E A R S U B M A R I N E ARIDHAMAN N U C L E A R S U B M A R I N E MAREECH E X P E N D A B L E D E C O Y S MOHINI E X P E N D A B L E D E C O Y N A V A L P R O G R A M M E S E X P E N D A B L E D E C O Y MIGM MIGM U N D E R W A T E R M I N E Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 50
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N A V A L P R O G R A M M E S TORPEDOES Torpedo electronics heritage. Sensor, homing and onboard electronics for India's indigenous torpedo family, built on decades of DRDO underwater programme partnership. TAL TORPEDO ALWT TORPEDO V ARUNASTRA TORPEDO Development of Torpedo which can be launched from small boats is under process. EHWT S U B M A R I N E L A U N C H E D T O R P E D O Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 51
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OTHERS Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 52 Q2 & H1 FY27
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O T H E R S OTHER PROGRAMMES RUSTOM UAV UNMANNED AERIAL VEHICLE VSHORAD AIR DEFENCE SYSTEM HYPERSONIC TECHNOLOGY DEMONSTRATOR VEHICLE ADVANCED PROGRAMME Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 53
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED ARMS AND AMMO Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 54 Q2 & H1 FY27
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED 01 GARUTHMA-1000KG BOMB 02 LRGB BOMB 03 GARUDA-500KG BOMB 04 TARA BOMB A R M S A N D A M M U N I T I O N S BOMBS Aerial bomb family- From the 1000kg Garuthma and 500kg Garuda class to long range glide bombs and TARA, the aerial bomb portfolio spans conventional and precision guided delivery. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 55
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A R M S A N D A M M U N I T I O N S ARTILLERY PINAKA ARTILLERY GUIDED PINAKA ARTILLERY ATAGS ARTILLERY Rocket and gun artillery- Electronics and subsystems for the Pinaka multi-barrel rocket family including its guided variant and the Advanced Towed Artillery Gun System. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 56
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED CHANGE IN THE WORLD ORDER I N D I A 2027 ERA OF TRANSITION 2027–2037 ERA OF CONSOLIDATION 2037–2047 ERA OF EXCELLENCE Q2 & H1 FY27 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 57
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R E V E N U E D R I V E R - I N C R E A S I N G D E F E N C E B U D G E T N A T I O N S A R E G E A R I N G U P NATIONS ARE GEARING UP 01 World military expenditure rose by $2887 billion in 2025. (2.9 % YoY Spike) 2.5 % of GDP in 2025. 02 Europe total military spending reached $864 billion (2025) (14% YoY Increase) 03 The five biggest spenders in 2025 were the United States, China, Russia, Germany and India, accounted for 58% of world military spending. 04 The military expenditure of the 32 NATO members amounted $1581 billion (2025), 55 % of spending globally 05 Total Military Spending by NATO member reached $ 1506 Billion 55% of Global Military Spending Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 58
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R E V E N U E D R I V E R - I N C R E A S I N G D E F E N C E B U D G E T NATIONS ARE GEARING UP Biggest Spender – The USA • Accounting 33.33% of all military spending (2025) • The USA spent 2.8 times as much on the military as China (2025) World’s 2nd Largest Military Spender- China • China maintained 12% of global spending • Accounted 1.7% of China GDP • Military spent increased each year for 31 consecutive years Russia’s military expenditure reached an estimated $190 billion (2025) • 5.9% YoY spurt • 7.5% of GDP in 2025. Germany 4th biggest spender globally • Military expenditure reached $114 billion (24% YoY) • 2.3% of Germany GDP (2025) Taiwan’s military expenditure reached $18.2 billion in 2025 • 14% YoY • 2.1% of GDP Poland Military spending reached $ 38 Billion (2024) • 4.2% of GDP Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED Global military expenditure distribution and share as a % of GDP 59
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U S A S T R A T E G Y USA APPROACH AND PRIORITIES The Department of War is addressing challenges in ordering thousands of additional missile interceptors and long-range strike missiles. 2014 QDR (Obama II) 2018 NDS (Trump I) 2022 NDS (Biden) 2026 NDS (Trump II) Approach End wars in the Middle East, rebalance to Pacific Compete, deter, win Integrated deterrence America First Priority Operating under fiscal constraint Great power competition Pacing challenge of China Homeland and hemispheric security 2014 QDR (Obama II) 2018 NDS (Trump I) 2022 NDS (Biden) 2026 NDS (Trump II) Industrial base “National asset that the Department of Defense is committed to supporting.” “Harness and protect the national security innovation base.” “Build enduring advantages across the defense ecosystem.” “Require nothing short of a national mobilization—a call to industrial arms” Nuclear modernization Baseline, no new nuclear weapons Baseline, plus options to “counter competitors’ coercive strategies” Baseline, cancel SLCM-N Baseline National missile defense Baseline Baseline Baseline Baseline, plus “Golden Dome” Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 60
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E U D E F E N C E P R O C U R E M E N T SPEED FOR SOVEREIGNTY Defence procurement contracts in the EU (US$ million), 2018-2021 vs. 2022 – June 2025 2018 - 2021 LAND AEROSPACE MARITIME SPACE 13.0 26.0 29.0 2.0 8.0 25.2 6.0 2.8 2.5 EU MEMBER STATES USA OTHERS 2022 - June 2025 LAND AEROSPACE MARITIME SPACE 45.0 30.0 25.5 3.5 24.0 56.8 46.0 8.2 EU MEMBER STATES USA OTHERS Totals (US$ M): 2018-2021 — Land 27.0, Aerospace 54.0, Maritime 31.5, Space 2.0 | 2022-June 2025 — Land 115.0, Aerospace 95.0, Maritime 25.5, Space 3.5 Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 61
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G L O B A L S U P P L Y C H A I N SUPPLY CHAIN WEAPONIZATION Globalization brought with it complex international supply chains and cheaper critical materials- components. 1 Chokepoint vulnerabilities While concentrated global supply chains can maximize cost effectiveness, they can also create chokepoint vulnerabilities. 2 Tightening export controls Since 2020, China has steadily tightened exports of critical materials and several of the world’s largest arms companies have cited such restrictions as a major risk to their operations. 3 Diversification and its cost To minimize their reliance on current sources, states and companies have opted to diversify their suppliers, focusing on strategies to reconfigure global supply chains to increase resilience, reduce risks and align with political or economic allies. But shifting towards greater autarky is a long-term endeavour and not being able to leverage economies of scale means more expensive weapons and reduced purchasing power for military procurement budgets. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 62
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W O R L D N U C L E A R F O R C E S CHANGING GEOPOLITICS World Nuclear Forces Deployed Warheads Stored Warheads Total Inventory 2026 2026 2026 USA 1770 3700 5042 Russia 1796 4400 5420 United Kingdom 120 225 225 France 280 290 370 China 34 620 620 India 12 190 190 Pakistan 170 170 North Korea 60 60 Israel 90 90 Total 4012 9745 12187 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED • Russia and the USA together possess around 83 per cent of all stockpiled nuclear warheads (i.e. useable warheads). This combined share is shrinking somewhat due to the growth in the world’s other nuclear arsenals. With the expiry of the bilateral 2010 Treaty on Measures for the Further Reduction and Limitation of Strategic Offensive Arms (New START) in February this year, uncertainty is increasing about the future direction of US and Russian strategic nuclear force levels. • China is expanding its nuclear arsenal faster than any other country and showcased several new nuclear systems during its 2025 military parade. By January 2026, China had loaded hundreds of missiles into three large missile silo fields in the north of the country, while working to complete 30 silos in three mountainous areas in the east. • The 2025 Strategic Defence Review reiterated the UK’s 2021 policy change of no longer publicizing the size of its nuclear arsenal, reducing transparency concerning the UK’s arsenal. Also in 2025 the UK announced its intention to buy 12 nuclear-capable F-35A combat aircraft from the USA, and equip them with US nuclear bombs, in order to join NATO’s nuclear sharing arrangements. India is believed to have once again slightly expanded its nuclear arsenal in 2025 and continued development of new types of nuclear delivery systems. The modernization programme is increasingly focused on developing long-range weapons capable of reaching targets throughout China, although planning also continues to be focused on India’s long- standing rivalry with Pakistan. 63
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W A R S · A R S E N A L S · D E M A N D INCREASING PROLIFERATION AND USE OF MISSILES Owning to ongoing conflicts, inventory replenishment, operational readiness, changing geopolitical scenarios, as nations seek to safeguard sovereignty through enhanced defence capabilities and self-reliance in critical weapon systems. Also, It has opened new revenue streams via exports. Wars Russia- Ukraine and Israel- Hamas War Continued and extensive use of weapons in conflict—especially in the Russia–Ukraine war and in Iran’s missile attacks on Israel linked to the Israel– Hamas war—and by the underlying and explicit use of missiles for signaling and leverage in these conflicts and elsewhere. Russia continued to use conventionally armed ballistic missiles, cruise missiles and one- way attack UAVs in large numbers against Ukrainian forces, critical infrastructure and civilians in 2024. Between January and September 2024, Ukraine reported that almost 5500 such systems were launched at Ukraine, averaging more than 20 day launches every day. USA/ Israel- Iran Prior to the strikes against Iran, the USA has also secured deals with companies with the goal of significantly increasing annual production rates for a range of systems, including Patriot, Tomahawk, SM-3, SM-6, and AIM-120 AMRAAM. As part of this effort, the Pentagon’s FY26 request sought multiyear procurement authority for 13 missile types, with lawmakers ultimately signing for eight out of 13 munitions requested. USA at risk of missile shortage after depleting stockpiles in Iran war. Change in policy has disrupted supply dynamics and raised concerns across Europe regarding its defense preparedness against potential Russian aggression. The concern stems from the United States’ decision to cancel the deployment of long-range missiles to Germany Together with the need to replenish stockpiles, states’ perceptions of the military value and utility of missiles, air and missile defence systems contributing to growing demand for current missile. Missiles are a critical part of any Arsenals To threaten strategic infrastructure and deter the enemy from launching an attack To retaliate against aggressive actions without resorting to large scale conflict To hit key enemy targets far beyond the frontline Approximately 35 countries currently possess operational ballistic missiles of various ranges and approximately 25 countries have operational. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 64
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W A R S · A R S E N A L S · D E M A N D INCREASING PROLIFERATION AND USE OF MISSILES The demand for and proliferation of both conventional and dual capable missile systems have increased. Missiles were used in armed conflicts during 2025 in a wide variety of strike roles. These included long range precision strike missions against adversaries’ infrastructure and strategic targets deep inside their territory; saturation salvo attacks seeking to overwhelm air and missile defences. The systems are being produced and exported at much higher rates than previously, driven by ongoing conflicts and by states seeking to replenish or expand their arsenals. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 65
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED INDIA DEFENCE SECTOR Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 66 Q2 & H1 FY27
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I N D I A D E F E N C E S E C T O R KEY TRENDS Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 67
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I N D I A D E F E N C E S E C T O R KEY TRENDS All Figures in INR Crores Capital Acquisition Outlay 3.05x FY18 BE FY20 BE FY21 BE FY22 BE FY23 BE FY24 BE FY25 BE FY26 BE FY27 BE 0 50,000 1,00,000 1,50,000 2,00,000 2,50,000 0% 10% 20% 30% 40% 50% 60% 71,674 1,11,093 1,34,306 1,37,986 1,42,939 1,54,256 1,59,501 1,80,001 2,19,306 Total on Capital Outlay BE YoY Capital Outlay as a % of Defence Budget 2020- 21 2021- 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27 20% 22% 24% 26% 28% 30% 32% 29% 29% 27% 26% 26% 26% 28% Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 68
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I N D I A D E F E N C E S E C T O R KEY TRENDS All Figures in INR Crores Breakup of Total Capital Acquisition Outlay FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Domestic Capital Procurement RE Foreign Capital Procurement RE Composition of Capital Acquisition Outlay 2015-16 BE 2019-20 BE 2020-21 BE 2021-22 BE 2022-23 BE 2023-24 BE 2024-25 BE 2025-26 BE 2026-27 BE 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Others Land Special Projects Technology Joint Staff Heavy and Medium Vehicles Naval Dockyard/projects Construction Works Research and Development Naval Fleet Aircrafts and Aeroengines Other equipment Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 69
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I N D I A D E F E N C E S E C T O R KEY TRENDS Breakup of Total Capital Outlay in Modernization FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 * upto sep2024 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 53% 51% 60% 63% 53% 65% 84% 67% 64% 71% 89% 35% 30% 39% 42% 50% 47% 48% 36% 31% 27% 11% % Domestic Contribution % Foreign Contribution Defence Service Estimates on capital outlay FY21 FY22 FY23 FY24 FY25 FY26 15% 20% 25% 30% 35% 40% 45% 50% % Defence Service Estimates on Navy capital outlay % Defence Service Estimates on airforce capital outlay % Defence Service Estimates on army capital outlay Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 70
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I N D I A D E F E N C E S E C T O R KEY TRENDS Composition of Defence Production FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 0% 10% 20% 30% 40% 50% 60% 70% 80% DPSUs Contri in Total Defence Production Other PSUs/JV Contri in Total Defence Production Pvt Companies Contri in Total Defence Production Composition of Export Production FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Pvt Cos SCOMET Issued by DGFT Contract Value and Another Export by DPSU Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 71
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I N D I A D E F E N C E S E C T O R KEY TRENDS Composition of Capital Acquisition Outlay among Services* *excludes other than Capital Acquisition , DRDO, DGQA etc Army 23% Navy 36% Joint Staff 0% Air Force 41% Army 19% Navy 41% Joint Staff 1% Air Force 39% FY24 FY25 Army, 17% Navy, 43% Air Force, 39% FY26 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 72
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Earnings Presentation Sep Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED M A R K E T S W I T H M A C R O T A I L W I N D S P R O V I D E C O N S I D E R A B L E G R O W T H O P P O R T U N I T I E S A 7 .8 LAKH ₹ CRO RE TAI LW I N DI N D I A In pursuance of Prime Minister Shri Narendra Modi- led Government’s vision of ‘Viksit Bharat @ 2047’ with technologically-advanced and ‘Aatmanirbhar’ Armed Forces, Union Budget of India has made a provision of Rs 7.8 Lacs crore for Financial Year (FY) 2026-27 for the Ministry of Defence (MoD), accounting or 14.28% of the Total National Budget. O u t o f t h i s , R s 2 , 1 9 , 3 0 6 c r o r e i . e . 2 8 % o f t o t a l a l l o c a ti o n w i l l b e s p e n t o n C a p i t a l O u t l a y u n d e r D e f e n c e S e r v i c e s . The Budget gives a strong thrust to Aatmanirbhar Bharat (Self-reliant India) by promoting indigenous manufacturing and reducing import dependence. 75% Domestic defence industries, including private sector players, are key beneficiaries. Around 75% of the Capital Acquisition budget is reserved for domestic defence industries in FY 2026-27. Prominent sector Defence sector is prominent among the 25 sectors of industry covered under the ‘Make in India’ initiative. The provision of ‘Make’ category of capital acquisition is a vital pillar for realizing the vision behind the ‘Make in India’ initiative. Rs 6.73 lakh crore In the Financial Year 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore in the current fiscal year. Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year. Rs 1.86 lakh crore The Ministry of Defence, with the joint efforts of MoD(Finance), Acquisition Wing, Defence Services and Defence Accounts Department, has fully utilized its capital outlay of Rs 1.86 Lakh crore for Defence Services provided for the FY 2025-26 at Revised Estimates stage. “ India’s Defence Ministry is seeking a 35% hike in the FY28 military modernization capital budget, Defence Secretary Rajesh Kumar Singh announced.” Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 73
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED M A R K E T S W I T H M A C R O TA I L W I N D S Provide Considerable Growth Opportunities Multiple instances of armed conflict and rising tensions Amid the ongoing Operation Sindoor against Pakistan, the defense forces set to get big boost of around INR 40,000 crores to buy arms and ammunition. The approval for the acquisitions under emergency powers was granted recently by the Defence Acquisition Council in its meeting attended by top defence ministry and military brass, defence officials told ANI India Opens Missile And Ammunition Manufacturing To Private Sector for Long- Term Firepower Readiness 2/3 India’s two-third military equipment is classified as vintage India ranks approximately 4th to 7th globally in missile technology, excelling in ICBMs, cruise missiles, and ABM systems, with hypersonic advancements closing gaps with leaders. Its indigenous focus and strategic deployments make it a regional powerhouse, though scaling production and mastering hypersonic systems are critical for climbing higher. Positive Indigenization Lists: The Ministry of Defence has released its fifth Positive Indigenization List (PIL), comprising 98 high complexity systems, sensors, weapons, and ammunition. These items will be procured exclusively from domestic sources under the Defence Acquisition Procedure (DAP) 2020 within a defined timeline. Dedicated Budget Allocation for Domestic Industry: In FY 2023–24, a record 75% (approximately 1 ₹ lakh crore) of the defence capital procurement budget has been allocated for domestic industry, up from 68% in the previous fiscal year. Enhanced Foreign Direct Investment (FDI) Limits: FDI in the defence sector has been liberalized, up to 74% is permitted under the automatic route, and up to 100% under the government route. Establishment of Defence Corridors: Two dedicated Defence Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu, with the objective of minimizing imports and boosting defence exports. Government has notified the ‘Strategic Partnership (SP)’ Model in May 2017, which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains. GST removed on missiles launched from ship-launched missiles, underwater vessels, >100 mm calibre rockets etc. GST on UAVs has been sharply cut to 5 per cent from 28–18 per cent. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 74
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Earnings Presentation June Quarter 2026 | APOLLO MICRO SYSTEMS LIMITED M A R K E T S W I T H M A C R O TA I L W I N D S Provide Considerable Growth Opportunities $9.37 billion B Y 2 0 2 9 C A G R 8 . 8 % The explosive market size is expected to see strong growth in the next few years. It will grow to $9.37 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The surge in government spending on the defense sectors in various countries including The USA, China, India, Russia, The UK and France is projected to be a major driver for the growth of the explosive market during the period. The growth in the forecast period can be attributed to an increase in territorial and political conflict, global population growth and urbanization, increasing infrastructure development expenditure by governments and increasing construction activities. 01 Geopolitical tensions and global trade restrictions have intensified supply chain disruptions, resulting in delayed production timelines and critical shortages of explosives. 02 A surge in global demand for explosives and ammunition, fed by ongoing conflicts in Europe and West Asia, has resulted in record Indian defence exports, with the figure crossing ₹23,622 crore in 2024-25. 03 State-owned defence public sector units have recorded a 42.8% surge in exports, reaching a high of ₹8,389 crore in the financial year. A large part of these too are for explosives and parts for ammunition, particularly for artillery which is in big demand in Europe. S O U R C E S 01 thebusinessresearchcompany.com 02 pib.gov.in 03 aninews.in 04 globalgrowthinsights.com 05 bloomberg.com 06 economictimes.indiatimes.com 07 pib.gov.in 08 idrw.org 09 pib.gov.in 10 sipri.org 11 sipri.org 12 ASPI – The Cost of Defence 13 sipri.org 14 sipri.org 15 pib.gov.in 16 ft.com 17 sipri.org 18 swarajyamag.com 19 pib.gov.in 20 newindianexpress.com 21 theprint.in 22 forecastinternational.com 23 pib.gov.in Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 75
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T E L A N G A N A HYDERABAD, INDIA’S DEFENCE FORTRESS BECAUSE OF Conducive Ecosystem supported by deep domain expertise, strong institutional backing and globally competitive manufacturing capabilities • World class infrastructure • Network of over 1500 MSMEs • Presence of DRDO, DPSUs and global OEM › RESULTING IN DEFENCE OVERTAKES PHARMA • At over Rs 32,000 crore in FY 26, defence and aerospace account for over a third of the Telangana’s exports, beating pharma for the first time since 2014. • Aerospace and Defence exports accounted for 33.4% of the state’s total exports in FY2026, according to data shared by Telangana’s Directorate of Economics and Statistics. › NOW COMES 2047 TELANGANA GOAL BECOMING GLOBAL BUILD TO DESIGN INNOVATION Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 76
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D I S C L A I M E R SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apollo Micro Systems Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities of the Company in any jurisdiction, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. Except for the historical information contained herein, statements in this Presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'intend', 'plan', 'contemplate', 'seek to', 'future', 'objective', 'goal', 'likely', 'project', 'on- course', 'should', 'potential', 'pipeline', 'guidance', 'will pursue' 'trend line' and similar expressions or variations of such expressions may constitute 'forward-looking statements'. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to Company’s ability to successfully implement its strategy, the Company’s growth and expansion plans, the performance of the Indian economy and of the economies of various international markets, obtain regulatory approvals, provisioning policies, technological changes, investment and business income, income or cash flow projections, the performance of the industry in India and world-wide, exposure to market risks as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially from results expressed in or implied by this Presentation. Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. Given these uncertainties and other factors, viewers of this Presentation are cautioned not to place undue reliance on these forward-looking statements. The information in this Presentation does not constitute financial advice (nor investment, tax, accounting or legal advice) and does not take into account an investor’s individual investment objectives, including the merits and risks involved in an investment in the Company or its securities, or an investor’s financial situation, tax position or particular needs. Past performance information in this Presentation should not be relied upon as an indication of (and is not an indicator of) future performance. This Presentation is not a prospectus, disclosure document, a statement in lieu of a prospectus, an offering circular, an invitation or an advertisement or an offer document under the Companies Act, 2013, together with the rules and regulations made thereunder, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation, and nothing in this Presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. The Presentation has not been independently verified and any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to current period. For the ease of presentation, certain financial information herein has been rounded off to one decimal place or two decimal places or whole numbers, as the case may be. Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 77
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I N V E S T O R R E L A T I O N A N D M E D I A C O N T A C T THANK YOU Email: investors.relations@apollo-micro.com Contact Number: +91 72888 92228 Earnings Presentation Q2 & H1 FY27 | APOLLO MICRO SYSTEMS LIMITED 78