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1 Investor Presentation November 2025 SECURITY , OPTOELECTRONICS AND HEALTHCARE SOLUTIONS FOR A SAFER & HEALTHIER WORLD
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2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company’s current expectations, beliefs, and projections concerning matters that are not historical facts and are not guarantees of future performance. Forward-looking statements involve uncertainties, risks, assumptions and contingencies, many of which are outside the Company’s control and which may cause actual results to differ materially from those described in or implied by any forward-looking statement. Such statements include, but are not limited to, information provided regarding expected revenues, earnings, growth, and operational performance for fiscal 2026 and thereafter. For a further discussion of factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and other risks described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company assumes no obligation to update any forward-looking statement made in this investor presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under federal securities laws. This presentation includes certain non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of the underlying performance of the Company, net of impairment, restructuring, and other charges (including certain legal costs), amortization of intangible assets acquired through business acquisitions, gain on sale of property in fiscal 2022, and non- cash interest expense primarily related to convertible debt, and their associated tax effects, and the impact of discrete income tax items including charges resulting from the Tax Cuts and Jobs Act (the “Tax Act”). Although we exclude amortization of acquired intangible assets from our non-GAAP figures, revenue generated from such intangibles is included within revenue in determining non-GAAP financial performance of the Company. Management believes that these non-GAAP financial measures provide (i) enhanced insight into the ongoing operations of the Company, (ii) meaningful information regarding the Company's financial results (excluding amounts management does not view as reflective of ongoing operating results) for purposes of planning, forecasting, and assessing the performance of the Company’s businesses, (iii) a meaningful comparison of financial results of the current period against results of past periods, and (iv) financial results that are more comparable to financial results of peer companies than are GAAP figures. Non-GAAP financial measures should not be assessed in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. These non-GAAP measures may not be the same as measures used by other companies due to possible differences in methods and in the items or events for which adjustments are made. Reconciliations of GAAP to non-GAAP financial information are included within this presentation. Safe Harbor 2
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3 A Leading Provider of Advanced, High-Reliability Electronics Solutions for Critical Applications in Diversified Essential Markets HEALTHCAREOPTOELECTRONCSSECURITY Designer, manufacturer and distributor of connected care solutions that are advancing patient monitoring, cardiology & remote monitoring in hospitals and clinics Provider of advanced custom photodetectors, laser diodes, flex circuits, and components for the assembly of advanced electronics in diverse end markets Global provider of security screening systems, solutions and services for critical government & civil infrastructure, border & port security, aviation, public facilities and events Opto 20% Healthcare 10% Security 70% BY DIVISION* $1.7B REVENUE (Fiscal Year Ended June 30, 2025*) Other Americas 25% EMEA 25% APAC 17% U.S. 33% BY GEOGRAPHY* * Third party net sales
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4 3 Top player in global screening and detection market with 100,000+ installed systems and a robust R&D pipeline 4 5 2 1 Broad-based organic growth with a record year-end backlog and growing market opportunities Strong business model with high recurring and reoccurring sales across diverse domestic and international end markets which have significant macro tailwinds driving heightened demand Large and diverse blue-chip customer base reflects the strength of our technology, products, and brand reputation Disciplined and experienced management team with a proven track record in creating shareholder value A Highly Compelling Investment Opportunity
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5 $10.20 - $10.48 (9.0% - 12.0% growth) FY26 Non-GAAP Adj EPS Guidance >$1.8 Billion Q1 FY26 Backlog $1.825 - $1.867 Billion (6.5% - 9.0% growth) FY26 Revenue Guidance Well-Positioned to Address Growing Market Opportunities Strong global demand for airport, port, border, critical infrastructure and event security systems, solutions and services Accelerated defense procurements expected with the July 2025 One Big Beautiful Bill Act Broad-based uptick in OEM demand for advanced electronics Highly Favorable Market Dynamics FY24 & FY25 growth delivered step-change in scale Strategic investment in acquisitions, cap ex and R&D expanded portfolio breadth and capacity Launch of multiple higher-margin service-based revenue models expanded offerings Momentum and Scale Well-Positioned Technology leadership, portfolio breadth, turnkey solutions experience, vertically-integrated, low-cost manufacturing, installed-base and brand reputation provide competitive advantages >$1.8B backlog + growing opportunity pipeline across portfolio Strong balance sheet, cash flow and available credit provide financial flexibility for continued expansion 5
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6 Diversified Revenue Model With Significant Recurring Service Revenues and Record Year-End Backlog Provide Visibility Service, supplies and accessories, SafeNSound , Rothman Index Service, turnkey operations, consumables Newer SaaS model (CertScan®) being rolled out provides strong, profitable top-line growth opportunity Majority of products sold to OEMs resulting in repeat orders throughout a product’s lifecycle Recurring Revenue ~30% Recurring Revenue >45% Repeat Revenue >80% * Based upon FY25 Revenues; June 30 fiscal year end SYSTEMS SERVICE TURNKEY (SECURITY AS A SERVICE) SaaS (SOFTWARE AS A SERVICE) Mexico Mexico Mexico ▲25% ▲15% ▲46% ▲8% ▼6% $861 $1,076 $1,232 $1,801 $1,698 $1,826 FY20 FY21 FY22 FY23 FY24 FY25 $ IN MILLIONSSecurity Healthcare Optoelectronics SIGNIFICANT RECURRING / REPEAT SERVICE REVENUE (% OF TOTAL REVENUE)* RECORD YEAR-END BACKLOG*DIVERSIFIED REVENUE MODEL FYE20 – FYE25 16% CAGR Large Mexico security projects replaced by new, broad- based orders reflecting rapid growth across core business and backlog diversification. Excluding Mexico projects, the FY23 – FY25 backlog grew at a 24% CAGR.
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7 REVENUES Non-GAAP EPS* Momentum and Disciplined Execution Driving Value Creation $961 $1,089 $1,182 $1,166 $1,147 $1,183 $1,278 $1,539 $1,713 ▲13% ▲9% ▲3% ▲8% ▲20% ▲11% ▼1% ▼2% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E $2.99 $3.61 $4.32 $4.60 $5.32 $5.81 $6.21 $8.13 $9.36 ▲21% ▲20% ▲6% ▲16% ▲9% ▲7% ▲31% ▲15% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E * Excludes impairment, restructuring, and other charges (including certain legal costs), amortization of intangible assets acquired through business acquisitions, gain on sale of property in FY22, non-cash interest expense, gain from the disposition of a business in FY17, and their associated tax effects, and the impact from discrete income tax items including charges resulting from the Tax Act. See reconciliation of GAAP to Non-GAAP EPS on page 34. June 30 fiscal year end $ IN MILLIONS FY26 Guidance ▲6.5% - 9.0% FY26 Guidance ▲9.0% - 12.0% Impacted by COVID-19 7
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8 1.3 1.4 1.0 1.5 1.3 1.6 1.8 1.8 1.8 1.4 1.8 1.7 2.0 2.2 FY19 FY20 FY21 FY22 FY23 FY24 FY25 $67 $81 $56 $139 $57 $31 $181 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Stock Repurchases Acquisitions Capex Strong Cash Flow and Liquidity Provide Flexibility for Continued Investment STRONG OPERATING CASH FLOW DISCIPLINED CASH MANAGEMENT & INVESTMENT LOW LEVERAGE POSITION Net Leverage Gross Leverage Recent cash flow reflects working capital investments to support the strong backlog $119 $129 $139 $64 $95 -$88 $98 FY19 FY20 FY21 FY22 FY23 FY24 FY25FY24 FY19 - FY23: >$500 million in operating cash flow FY24: Significant investment in working capital to support OSI’s growth and strong backlog $ IN MILLIONS $ IN MILLIONS June 30 fiscal year end *Net leverage and gross leverage are calculated in accordance with the Company’s credit agreement
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9 Markets with Macro Tailwinds Provide Considerable Growth Opportunities Strong demand for specialized optoelectronics resulting from electrification and digitization in a broad range of products and solutions SECURITY Increasing demand for efficient solutions that will improve patient care and population health, reduce cost and improve provider well being Heightened global demand for high- performance threat detection screening solutions spurred by public and private sector mandates HEALTHCAREOPTOELECTRONICS Market Tailwinds Competitive Strengths / Growth Opportunities Global leader in innovative, affordable, and flexible end-to-end offerings in security screening solutions market High demand for radio frequency (RF) technology solutions acquired in FY25 Products and services well-suited to 2025 Big Beautiful Bill security earmarks Superior track record and global presence in large-scale integrated, turnkey solutions Large and growing customer base actively seeking versatile partners offers higher- margin opportunities across multiple industries Competitive manufacturing cost structure with strategic global site locations New technologies / new products (e.g., high density flex circuits and hi-rel semiconductors) Multi-year contracts with major Group Purchasing Organizations (GPOs) New product introductions Clinical Decision Support analytics and Clinical Workflow Positioning for emerging hospital-to- home health continuum patient monitoring
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10 Technology Leadership Is a Primary Competitive Advantage BROAD, LEADING TECHNOLOGY PLATFORMS AND PRODUCT LINES PROVIDE A HIGHLY ATTRACTIVE ONE- STOP-SHOP ADVANTAGE Deep expertise in critical technologies and a track record of delivering break-through solutions Security division acquisitions complemented pre-existing technology suite and significantly expanded platform and pipeline New product introductions and acquisitions with strong revenue potential Significant ongoing investment in R&D to grow product pipelines and continuously improve performance “…the best equipment we have out there.” - U.S. Customs and Border Protection Advisor to U.S. Department of Homeland Security on advanced technology development initiatives
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11 Strategic Global Vertically-Integrated Footprint Global engineering and manufacturing expertise, vertical integration, efficient cost structure, global sales channel, and service excellence provide on- and off-shoring optionality and competitive advantage EMEA 2 R&D 4 Manufacturing 11 Sales/Service AMERICAS 9 R&D 15 Manufacturing 17 Sales/Service APAC 2 R&D 4 Manufacturing 7 Sales/Service NUMBER OF SITES 11
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SECURITY GLOBAL LEADER IN SECURITY SCREENING SOLUTIONS
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13 A leading global provider of security inspection solutions, equipment, and services for aviation, ports, rail, customs and border protection, event security, critical infrastructure, public facilities, and law enforcement Extensive size, breadth of offering, and competitive position Leadership in large turnkey projects Leadership in integrated screening solutions A leader of hardware, software, and algorithm technology OSI Security Division: A Global Leader in Security Screening Market DIVISION SALES AS A % OF OSI* Rapiscan l S2 Global Security 70% BUSINESS OVERVIEW * Based on FY25 third-party net sales PORTFOLIO POSITION BRANDS GLOBAL SECURITY SCREENING LEADERSHIP 100,000+ Systems Installed 26 Global Service Centers 170+ Countries Supplied 34M+ Integrated Data + Scans Processed 1,900+ Employees
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14 Integrated Solutions: Leadership in Breadth of Applications Provides Advantage in a Fast-Growing Market ADVANCED SECURITY SCREENING SYSTEMS CARGO & VEHICLE INSPECTION SYSTEMS SCREENING SOLUTIONS Baggage, Parcel & Freight Hold Baggage Fast Parcel People Screening Explosives, Narcotics & Contraband Trace Detection Radiation Detection Portal Gantry Mobile Trailer Rail Under Vehicle Pallet Handheld S2 Global Turnkey Security as a Service Solution S2 Global Software as a Service CertScan ® Integration Platform S2 Compass Data Services S2 University End-to-end screening solutions leveraging advanced and next-gen technologies for maximum threat detection, flexibility, ease in procurement and operational success across ports, aviation, checkpoints, government and commercial facilities, and events
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15 Global demand for large, state-of-the-art, integrated screening solutions in cargo inspection segment Expanding beyond cargo segment over long-term, including expansion into air freight, passengers and events Deploying solutions for integration and training as a SaaS model with recurring revenue Significant opportunity pipeline GROWTH OPPORTUNITIES CHARACTERISTICS Flexible, service-based revenue model – scanning industry first Large-scale, high-margin, multi-year projects with recurring revenue Represents a meaningful portion of division revenues Capex requirement in initial build-out phase with solid return on investment Longer sales cycle Demonstrated ability to develop, integrate, and operate comprehensive large- scope solutions with cutting-edge screening systems, staffing, and training support Large-Scale Turnkey Screening Solutions: Market Leader
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16 Field Service Security as a Service Fast Growth in Higher Margin Recurring Security Service Revenue Streams 24/7 global service team provides expert support to customers from pre-installationoperationsanalysis to operator training Installation,repair, and maintenanceof equipmentin the field Largest contributor to recurring revenue Global public and private mandatesfor always-on, effective, advanced technologies and highly-trained operators, delivering high-speed inspectionsat a large scale, and efficient operating cost Moving into adjacent markets by providing operational expertise, CertScan® integration software services, and algorithms Growing installed base requiring ongoing maintenance driving renewals of expiring product warranties Selectivelyshifting from certain distributors to a direct service and support model in key growth regions Servicing and maintainingthird-party equipment Software as a Service Rising demand for innovative information management for scanning and manifest data for border, trade, transport and large event real-time decision making Global public and private sector opportunities Inter-agency, cross-country, and commercialdata sharing Multi-year comprehensive follow-on service and on-site maintenance support contracts and training programs Global operations Higher margin sales A key factor in large $200M+ and $500M+ contract awards Growth DriversGrowth Drivers Growth Drivers Leading inspection integration platform, CertScan®, automates inspection operations and provides remote monitoring with real- time insights AI-based algorithmic insights and agile decision flows Increases inspection speed, quality, and enables asset tracking and data point audit Seamlessly integrates data from multiple sources, including third-party hardware Large and growing global installed base
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17 Cargo and Vehicle Inspection Systems: Significant Global Penetration Opportunity with New Portfolio Additions INDUSTRY LEADERSHIP GROWTH OPPORTUNITIES Eagle® P60 Cargo and Vehicle Scanning System Strong market share in a wide range of scanning technologies enhanced with Z Backscatter® cargo and vehicle scanning systems Significant contract wins in the U.S., Middle East, and Latin America High image quality with flexible configurations Mobile, portal, gantry, ruggedized Integration of transmission and backscatter technologies Proven screening services business model (industry-first): low upfront cost to outsource service; full benefit without cost of ownership Demand in U.S. and international markets for increased customs inspections, border and force protection, and narcotics interdiction Government and private port, border, facility security, and law enforcement applications Customs agencies today scan only a low percentage of inbound trade ZBV® Mobile Cargo and Vehicle Scanning System CarView® Multi-view Cargo and Vehicle Scanning System Eagle® M60 ZBx Multi- Technology Mobile Cargo and Vehicle Scanning Systems
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18 GLOBAL HOLD (CHECKED) BAGGAGE SCREENING MARKET OVERVIEW RAPISCAN RTT Hold Baggage Screening Systems: Significant Replacement Opportunity with Patented High-Performance Next-Gen CT Technology – RTT® 110 EU mandatory transition from conventional multi-view X-ray (EDS Standard 2) to CT (EDS Standard 3) Air cargo market upgrading to ACSTL and EDS Standard 3 New markets developing outside of aviation RTT110 is ECAC, TSA, ACSTL and CAAC approved Leading capability in aviation and parcel screening driven by efficient and reliable integration and detection platforms Large and fast-growing installed base including Dubai, Vietnam, Brisbane and Lima airports together with DHL, FedEx, UPS and other parcel forwarders Detection and imaging utilizing patented Real Time Tomography (RTT) technology Low life-cycle cost – proving highly attractive to customers Recent algorithm development of the RTT110 has enabled branching into bio-security
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19 GROWTH OPPORTUNITIES INDUSTRY LEADERSHIP High-Performance Baggage and Parcel Inspection Systems: Well-Positioned in Expanding Government and Commercial Markets Checkpoint X-ray system – strong worldwide market share Significant installed base Single and dual-view technology, superior imaging, and high efficiency Pipeline of competitive products with industry-leading image quality Ergonomic industrial design to suit contemporary airport concourse architectures Global regulatory approvals Wide set of aviation and cargo certifications support U.S. and international deployment Approved air cargo screening systems Replacement life cycle business Emerging market opportunities Latest ORION® suite of products Non-aviation (sports / public venues, government, critical infrastructure) Integrated checkpoint solutions CT at the checkpoint (initial focus on international opportunities) Aviation employee screening
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20 Trace Detection: Opportunity to Capitalize with Leading Products GROWTH OPPORTUNITIES International aviation market opportunity Additional opportunities beyond aviation for critical infrastructure, events, transportation hubs, first responders and borders Narcotics (including opioids) detection market for prisons Profitable recurring service and consumable revenue streams, as well as replacement market opportunities New certifications unlock access to additional markets EntryScan® 4e Hardened Mobile Trace® INDUSTRY LEADERSHIP Suite of industry-leading, patented technologies with high sensitivity and low false alarm rates Itemiser ® 5X – Added to TSA Air Cargo Screening Technology List in 2023. Certified by the Civil Aviation Administration of China (CAAC) in 2022. Desktop, handheld, and walk-through portal products Trusted partner to international governments for critical infrastructure protection Global service and training organization Itemiser® 5X Hardened Mass Spectrometer
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21 High-Powered Radio Frequency (RF) Solutions: Critical Secure Communications & Surveillance with Significant Growth Opportunity GROWTH OPPORTUNITIES Long range radar – wide area over-the-horizon radar with cutting edge performance for enhanced global security (well-suited to the 2025 Big Beautiful Bill’s Golden Dome objectives) Growing space exploration market requiring high-powered interplanetary communications and object tracking Resilient position navigation timing systems Secure digital long-range communications Upgrade and refresh cycles for global secure communications High reliability – high availability critical infrastructure INDUSTRY LEADERSHIP Leading technology for secure, reliable communications and detecting potential threats that might impact secure borders Strong market share of naval and defense communications, homeland security, and interstellar communications High-power, solid-state multi-function digital RF systems provide long distance surveillance and reliable communications in challenging environments Patented signal processing lowers antenna and real estate costs Deep-Space Comms, Navigation and Radar Long-Range Radar & Digital Communications Submarine Communications Resilient-Position Navigation Timing
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22 A Top Provider of Certified Compliant Technologies with Large and Growing U.S. Installed Base (Partial List) DEPT OF DEFENSE Pentagon / Defense Agencies Air Force Army Navy Marines DEPT OF AGRICULTURE DEPT OF COMMERCE U.S. Census Bureau DEPT OF ENERGY DEPT OF HEALTH & HUMAN SERVICES DEPT OF HOMELAND SECURITY Customs and Border Protection (CBP) Transportation Security Administration (TSA) Federal Protective Service (FPS) FEMA Secret Service CIA DEPT OF JUSTICE ATF DEA FBI U.S. Marshall Service U.S. Attorney’s Office SPORTING VENUES INDEPENDENT AGENCIES Federal Reserve FDIC National Archives NASA Smithsonian U.S. Postal Service FORTUNE 500 COMPANIES NUCLEAR FACILITIES LAW ENFORCEMENT AGENCIES DEPT OF LABOR DEPT OF STATE Diplomat Security International Narcotics and Law Enforcement (INL) Non-Proliferation and Disarmament Fund (NDF) International Security & Non- Proliferation (ISN) DEPT OF TRANSPORTATION DEPT OF TREASURY U.S. Mint IRS DEPT OF VETERANS AFFAIRS
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23 Large and Growing International Customer Base (Partial List) AMERICAS (EXCLUDING U.S.) Secretary of the Mexican Ministry of National Defense (SEDENA) Mexico City International Airport Puerto Rico Ports Authority Canada Border Services Agency (CBSA) Canadian Air Transport Security Authority (CATSA) Brazil Federal Police Chilean Customs Colombian Customs Peru Ministry of Interior Guatemala Port of Santo Tomás de Castilla Dominican Customs (Port of Caucedo) Panama Customs MIDDLE EAST AND AFRICA Abu Dhabi Customs Dubai International Airport Dubai Police Saudi Arabia Customs Qatar Petroleum Qatar Hamad International Airport UAE Government Iraqi Government Egyptian Customs Tunisian Customs Israel Airports Authority Ghana Port Authority South Africa Customs ASIA PACIFIC Civil Aviation Administration of China Airport Authority Hong Kong Hong Kong SAR Customs Taiwan Aviation Police Royal Thai Police Singapore (Changi Airport) Australian Customs Service New Zealand Japan Customs Korea Customs Service Airport Authority of India India Customs Vietnam Customs EUROPEAN UNION / UK North Atlantic Treaty Organization (NATO) European Civil Aviation Conference (ECAC) Albania Bulgaria Rome International Airport Vatican Buckingham Palace UK Department for Transport (DfT) UK Border Agency Dutch Customs
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OPTOELECTRONICS AND MANUFACTURING SENSORS, DETECTORS, AND ELECTRONICS
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25 BUSINESS OVERVIEW PORTFOLIO POSITION BRANDS PRODUCTS & SERVICES Highly sought-after, trusted provider of leading, innovative sensors, detectors, and electronics for global OEMs that demand high-reliability, high-performance engineered electronics solutions Efficient, low-cost global manufacturing footprint that enhances our ability to respond to an evolving trade landscape Portfolio targets high-margin opportunities in high tech industries and value-added services including engineering support, sub-assembly, and electronic device manufacturing Top-tier customers in aerospace & defense, homeland security, medical, clinical diagnostics, communications, automotive, automation, gaming, consumer products, and industrial markets Intercompany sales to Security and Healthcare divisions enhance consolidated margin OSI Optoelectronics Division: A Leading Provider of Advanced, Custom, High-Precision Optoelectronic and Electronic Assembly Systems DIVISION SALES AS A % OF OSI* * Based on FY25 third-party net sales Opto 20%
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26 Global Electronics Design, Manufacturing Services and Support Focused on Intricate, High-Value Add Applications DEFENSE MEDICAL TECH & INDUSTRIAL Recognized as a leader in higher-value custom engineering solutions with leading technologies for use in a broad range of applications Complete semiconductor fabrication, PCB electronics, flexible circuits, and manufacturing services with ample flexibility to handle varying process demands Diversified customer-base across broad industry spectrum Long-term leading customer relationships drive account growth Supporting market trend towards innovative flex circuit technology solutions Driving innovation in photonic modules and instruments providing premium photodetectors, laser diodes, imaging and medical sensors, photonic modules and instruments World-class and cost-efficient global manufacturing footprint SELECTED CUSTOMERS & RELATIONSHIPSCUSTOM SOLUTIONS Focus on customer-centric solutions Vertical integration enables tremendous flexibility to meet evolving customer demands VALUE & STRENGTHS
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27 Capitalizing on High Growth Opportunities Through Our Broad Offering of World-Class Solutions GROWTH OPPORTUNITIES High-growth applications: Analytics Imaging Monitoring Test & Measurement Tracking Next-gen technologies: Device miniaturization and wearables Critical space missions High-reliability defense electronics Free-space optics (FSO) Autonomous vehicles Augmented reality Growth with attractive existing customer base (high repeat order rate) Growth opportunities with new customers AEROSPACE MEDICAL AND BIOTECH INDUSTRIAL AND AUTOMATION CONSUMER PRODUCTS TRANSPORTATION DEFENSE AND HOMELAND SECURITY GAMING AND VIRTUAL REALITY OPTICAL COMMUNICATIONSTECHNOLOGY AND IoT
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HEALTHCARE MEDICAL MONITORING SYSTEMS AND DEVICES
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29 Broad portfolio of connected care solutions for patient monitoring, cardiology, and remote monitoring Expanding addressable market with strategic investments in digital health solutions Multi-year contracts with major healthcare GPOs, IDNs, and ACOs Large installed base of products providing recurring revenue through SaaS, services and supplies FDA-cleared predictive analytics platform enhances value proposition of patient monitoring solutions New product introductions in the pipeline for patient monitoring and diagnostic cardiology Strong reputation with ~65 years of experience providing enterprise solutions to major healthcare systems Positioned for growth with new leadership and new products/business models Highest gross margin OSI division DIVISION SALES AS A % OF OSI* OSI Healthcare Division: Global Supplier of Medical Monitoring Systems & Devices 10% SELECTED CUSTOMERS & RELATIONSHIPS * Based on FY25 third-party net sales BUSINESS OVERVIEW PORTFOLIO POSITION BRAND Healthcare
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30 Market Penetration Opportunity with Expanding Portfolios in Patient Monitoring & Connectivity and Cardiology Systems & Accessories INDUSTRY LEADERSHIP Rising demand for patient monitoring technology that can improve care for those with multiple, complex conditions while still driving down costs Increasing demand for ECG carts and ambulatory cardiology monitoring with data management solutions and connectivity Growing adoption of consumer wellness wearables driving growth in physician prescribed long-term ambulatory cardiac monitoring Growing focus on subscription-based revenue with rollout of “monitoring as a service” model Continued investment in cloud and digital health expanding connected care capabilities to assist clinicians in coordination across the care continuum Large system opportunities with new business models focused on complete solutions Large installed base provides service, supplies and accessories sales opportunities GROWTH OPPORTUNITIES A leading supplier with expanding product lines and strategic alliances Technology innovator Solutions that improve monitoring, data management, and clinical efficacy with improved analytics, workflow, and communications Unique open architecture platform allows easy integration, faster deployment, and increased connectivity
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SUMMARY
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32 OSI Systems – A Technology Leader Well-Positioned for Continued Growth Scale, momentum in large contract awards, significant backlog, and high-performance culture to deliver continued profitable growth with increased visibility Attractive and growing markets Diversified revenue model: turnkey, systems, software, services and components Competitive strengths in technology leadership, integrated operations experience, SaaS and vertically-integrated, low-cost manufacturing Acquisitions enhance competitive position in security business Expanding, attractive global footprint and customer base Solid business development pipeline with strong cash flow and liquidity for continued investment Global terrorism threats Security – large government contracts Security – turnkey & SaaS models Macro tailwinds New markets for existing technologies CATALYSTS FOR CONTINUED GROWTH IN PLACE Security – RTT® new product sales Healthcare – monitoring as a service Optoelectronics – diverse customer base New product launches Delivering next-gen solutions Robust Product Pipeline Scale and efficiency Operating Margin Improvement Provide financial flexibility Strong Balance Sheet & Cash Flow $10.20 - $10.48 (9.0% - 12.0% growth) FY26 Non-GAAP Adj EPS Guidance $1.825 - $1.867 Billion (6.5% - 9.0% growth) FY26 Revenue Guidance Contract wins continue to expand global reach Increasing Competitive Position
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CREATING SOLUTIONS FOR A SAFER AND HEALTHIER WORLD
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34 Reconciliation of GAAP to Non-GAAP Diluted EPS * For fiscal year ended June 30, 2018, the weighted average diluted shares used to calculate EPS on a GAAP basis excluded potential common shares (stock options and restricted stock units) due to their antidilutive effect resulting from the Company’s reported net loss. For the fiscal year ended June 30, 2018, the weighted average diluted shares used to calculate EPS on a non- GAAP basis were approximately 19,274,000 shares. DILUTED EPS FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 G AAP basis* 1.07$ (1.57)$ 3.46$ 4.05$ 4.03$ 6.45$ 5.34$ 7.38$ 8.71$ Impairment, restructuring, and other charges 2.37 1.88 0.20 0.35 0.55 0.42 0.44 0.37 0.31 Amortization of acquired intangible assets 0.43 0.85 0.84 0.88 0.85 0.75 0.87 0.97 1.05 Non-cash interest expense 0.13 0.40 0.42 0.47 0.48 0.03 0.03 - - Gain from sale of business / property (0.11) - - - - (1.53) - - - Tax benefit of above adjustments (0.78) (0.84) (0.41) (0.47) (0.50) 0.08 (0.30) (0.32) (0.32) Discrete income tax items (0.12) 3.02 (0.19) (0.68) (0.09) (0.39) (0.17) (0.27) (0.39) Impact of diluted shares - (0.13) - - - - - - - Non-GAAP basis 2.99$ 3.61$ 4.32$ 4.60$ 5.32$ 5.81$ 6.21$ 8.13$ 9.36$