Chemring Group PLC (CHG:LN)

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Business Description and Key Statistics

Chemring Group is engaged in developing solutions to protect Current YTY % Chg defense and security markets. Co. operates two segments including Sensors and Information segment which develops and Revenue LFY (M) 403 20.1 manufactures Explosive Hazard Detection equipment, chemical EPS Diluted LFY 0.12 55.8 and biological threat detection equipment, electronic countermeasures and network protection technologies; and Market Value (M) 906 Countermeasures and Energetics which develops and manufactures countermeasures for air, sea and land platforms, Shares Outstanding LFY (000) 282,174 cartridge/propellant actuated devices, pyrotechnic devices for Book Value Per Share 1.17 satellite launch and deployment, missile components, propellants, separation sub-systems, actuators and energetic materials. EBITDA Margin % 18.90 Net Margin % 8.6 Website: www.chemring.co.uk Long-Term Debt / Capital % 14.9 ICB Industry: Industrials Dividends and Yield TTM 0.04 - 1.21% ICB Subsector: Defense Payout Ratio TTM % 30.8 Address: Roke Manor;Old Salisbury Lane Romsey 60-Day Average Volume (000) 436 GBR 52-Week High & Low 338.00 - 228.00 Employees: 2,384 Price / 52-Week High & Low 0.95 - 1.41

Price, Moving Averages & Volume

343.2 343.2 Chemring Group PLC is currently trading at 321.00 which is 1.0% above its 50 day 328.9 328.9 moving average price of 317.87 and 9.2% above its 314.5 314.5 200 day moving average price of 293.87.

300.1 300.1 CHG:LN is currently 5.0% below its 52-week high price of 338.00 and is 40.8% above its 285.7 285.7 52-week low price of 228.00. Over the past 52-weeks, 271.4 271.4 CHG:LN is up 40.8% while on a calendar year-to-date basis it is up 12.4%. 257.0 257.0 The Relative Strength Index (RSI) indicator for CHG:LN is 242.6 242.6 currently 50.9. An RSI value of 70 and above is considered 228.3 228.3 overbought and 30 and below 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 oversold. Volume (000) 12,104 12,104

9,078 9,078

6,052 6,052

3,026 3,026

Mean (658.84) 0 0 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21

Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average)

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Price Performance, Technical Indicators & Risk Metrics

Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % 0.00 0.48 50-Day Average Price 317.87 1-Week % 3.88 3.62 Price / 50-Day Average 1.01 4-Week % -2.13 -0.71 200-Day Average Price 293.87 52-Week % 40.79 16.44 Price / 200-Day Average 1.09 RSI - Relative Strength Index 50.90 Quarter-to-Date % 11.65 10.52

Year-to-Date % 12.43 2.21 Risk Metrics Last Month % 8.13 6.21 Price Volatility 10.63 Last Quarter % 8.08 3.41 Sharpe Ratio 0.20 Last Calendar Year % 18.71 31.70 Sortino Ratio 0.39

5-Year Price Performance vs. FTSE 350

Chemring Group PLC Current: 2.28 CAGR: 18.0% Over the past five years, FTSE 350 Index Current: 1.18 CAGR: 3.4% Chemring Group PLC's stock price is up 128.1% which is 2.5 2.5 109.7% above the FTSE 350 Index performance of 18.4% over the same period. 2.3 2.3 Chemring Group PLC's CHG:LN cumulative annualized growth 2.2 2.2 rate (CAGR) over the five year period has been 18.0% while that of the FTSE 350 Index 2.0 2.0 has been 3.4%.

Over the past year, Chemring 1.9 1.9 Group PLC's stock price performance of 40.8% has 1.8 1.8 outperformed that of the FTSE 350 Index by 16.4%. On a year-to-date basis, Chemring 1.6 1.6 Group PLC's stock price performance of 12.4% has 1.5 1.5 outperformed the FTSE 350 Index by 2.2%.

1.3 1.3 Over the past week, Chemring Group PLC's stock price performance of 3.9% has 1.2 ^NMX:LN 1.2 outperformed that of the FTSE 350 Index by 3.6%. 1.0 1.0

0.9 0.9

0.8 0.8 2017 2018 2019 2020 2021 2022

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Growth and Profitability Metrics

5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % -9.7 1.3 -3.9 Gross Margin % 25.9 Revenues Per Share % -11.5 -6.0 -8.3 EBITDA Margin % 18.9 13.2 EBITDA % -1.5 -0.4 -7.4 Pre-Tax Margin % 99.2 20.1 9.0 EPS Diluted % 73.4 999.9 -10.7 Net Margin % 8.6 -4.1 -3.2 Free Cash Flow % 24.8 9.7 -6.4 Return on Equity % 10.8 -2.7 -2.6 Cash from Operations % 33.1 24.2 -1.6 Return on Capital % 10.4 -2.2 -1.9 Book Value % -6.6 -4.9 -4.4 Return on Assets % 6.8 -1.5 -1.3

Revenue (M) Chemring Group PLC's cumulative annualized revenue Current: 402.50 Median: 402.50 High: 547.50 Low: 297.40 CAGR: -4.2% growth rate over the charted 597.5 597.5 547.5 period is -4.2%. This compares to cumulatative 493.3 477.1 493.3 annualized growth of -9.7% 402.5 over the past 3 years. 389.1 389.1 335.2 297.4 284.9 284.9 2016 2017 2018 2019 2020 2021 Chemring Group PLC's EPS Diluted cumulative annualized EPS Current: 0.12 Median: 0.04 High: 0.12 Low: -0.43 CAGR: 31.6% growth rate over the charted 0.23 0.23 period is 31.6%. This 0.12 0.08 compares to cumulatative 0.04 0.02 0.00 0.00 annualized growth of 73.4% over the past 3 years. -0.23 -0.23 -0.38 -0.46 -0.46 2016 2017 2018 2019 2020 2021

Net Profit Margin % Chemring Group PLC's net profit margin of 8.6% is 12.7% Current: 8.55 Median: 1.39 High: 8.55 Low: -36.26 CAGR: 46.4% above the period's mean net 10.8 10.8 margin of -4.1%. During the Mean (-4.12) charted period, the observed -5.6 -5.6 net profit margin high and low were 8.6% and -36.3% -22.1 -22.1 respectively.

-38.5 -38.5 2016 2017 2018 2019 2020 2021 Chemring Group PLC's return Return on Equity % on equity of 10.8% is 13.5% Current: 10.80 Median: 1.90 High: 10.80 Low: -28.20 CAGR: 40.1% above the period's mean 12.7 12.7 return on equity of -2.7%. During the charted period, the -1.6 Mean (-2.74) -1.6 observed ROE high and low were 10.8% and -28.2% respectively. -15.8 -15.8

-30.1 -30.1 2016 2017 2018 2019 2020 2021

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Valuation Metrics

5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median

Price / EPS TTM 26.8 53.8 91.7 Earnings Yield % 4.57 1.71 0.22

Price / Sales 2.3 1.6 1.0 Free Cash Flow Yield % 4.38 4.41 6.16

Price / Operating Cash Flow 14.6 13.0 13.2 Dividend Yield % 1.21 1.37 1.83

Price / Book Value 2.8 1.6 1.4 Enterprise Value / EBITDA 15.0 9.7 10.2

Price / EPS TTM Chemring Group PLC is trading at 26.75 times its EPS Current: 26.75 Median: 53.83 High: 99.90 Low: 20.00 CAGR: -10.1% generated during the latest 103.9 103.9 fiscal year. This multiple is below the historically observed 74.6 74.6 median of 53.83, while high and low observations have Median (53.83) been 99.90 and 20.00. 45.3 45.3

16.0 16.0 2016 2017 2018 2019 2020 2021 Price / Sales Chemring Group PLC is trading at a Price to Sales ratio Current: 2.29 Median: 1.55 High: 2.44 Low: 0.62 CAGR: 30.0% of 2.29 based on sales 2.53 2.53 generated during the latest fiscal year. This ratio is above 1.86 1.86 the historically observed Median (1.55) median ratio of 1.55, while high and low observations 1.20 1.20 have been 2.44 and 0.62.

0.53 0.53 2016 2017 2018 2019 2020 2021 Chemring Group PLC is Price / Book Value trading at a Price to Book ratio Current: 2.75 Median: 1.55 High: 2.88 Low: 0.94 CAGR: 24.0% of 2.75 based on book value at 3.0 3.0 the latest fiscal year end. This ratio is above the historically observed median of 1.55, 2.3 2.3 while high and low observations have been 2.88 1.6 Median (1.55) 1.6 and 0.94.

0.8 0.8 2016 2017 2018 2019 2020 2021 Chemring Group PLC has a Free Cash Flow Yield % Free Cash Flow Yield of 4.38% Current: 4.38 Median: 4.41 High: 17.63 Low: 2.55 CAGR: -23.2% based on free cash flow 18.4 18.4 generated during the latest fiscal year. This value is below the historically observed 12.9 12.9 median yield of 4.41%, while high and low observations 7.3 7.3 have been 17.63 and 2.55. Median (4.41)

1.8 1.8 2016 2017 2018 2019 2020 2021

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Dividends Data

Dividends Per Share TTM 0.04 Payout Ratio TTM % 30.83% Dividend Yield TTM % 1.21%

Rate Ex Date Record Date Payment Date Currency Note 0.026 01-04-2021 06-04-2021 23-04-2021 GBP FINAL GROSS 0.013 20-08-2020 21-08-2020 11-09-2020 GBP INTERIM GROSS 0.024 02-04-2020 03-04-2020 24-04-2020 GBP FINAL GROSS 0.012 29-08-2019 30-08-2019 13-09-2019 GBP INTERIM GROSS 0.022 04-04-2019 05-04-2019 18-04-2019 GBP FINAL GROSS 0.011 30-08-2018 31-08-2018 14-09-2018 GBP INTERIM GROSS 0.020 05-04-2018 06-04-2018 20-04-2018 GBP FINAL GROSS 0.010 31-08-2017 01-09-2017 15-09-2017 GBP INTERIM GROSS 0.013 27-04-2017 28-04-2017 18-05-2017 GBP FINAL GROSS

Dividend Growth and Yield

Dividends Per Share TTM Chemring Group PLC's trailing 12-month dividend per share Current: 0.04 Median: 0.03 High: 0.04 Low: 0.00 CAGR: 0.0% is 0.04 and its dividend has 0.042 0.042 grown at a cumulative annualized rate of 0.0% over 0.035 0.035 the charted period. This compares to dividend growth 0.027 0.027 of 8.30% over the past year and cumulative annualized growth of 9.10% over the past 0.020 0.020 3 years.

0.013 0.013

0.005 0.005

-0.002 -0.002 2016 2017 2018 2019 2020 2021

Dividend Yield TTM % Chemring Group PLC's current dividend yield is 1.21% based Current: 1.21 Median: 1.37 High: 2.23 Low: 0.00 CAGR: -6.7% on trailing 12 month 2.34 2.34 dividends. The current yield is below the historically observed 1.93 1.93 median of 1.37% and, over the charted time period, the 1.52 1.52 observed high yield has been 2.23% and the observed low yield has been 0.00%. 1.12 1.12

0.71 0.71

0.30 0.30

-0.11 -0.11 2016 2017 2018 2019 2020 2021

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 ICB Subsector Peer Comparisons

Price Change Year to Date % Price Change Last Calendar Year % -50.4 -17.3 15.7 48.8 81.8 -82.7 -47.6 -12.4 22.7 57.8

MS International PLC 75.8 Avon Protection PLC 51.4 Ultra Electronics Holdings Plc 56.5 Chemring Group PLC 18.7 Babcock International Group PLC 35.8 TP Group PLC 3.2 Westminster Group Plc, Banbury 25.3 Ultra Electronics Holdings Plc -2.0 Peer Group Average 15.7 Qinetiq Group Plc, London -10.6 BAE Systems Plc 14.9 Peer Group Average -11.9 Chemring Group PLC 12.4 Cohort PLC -12.5 Qinetiq Group Plc, London 2.8 BAE Systems Plc -13.5 Cohort PLC -12.2 MS International PLC -33.7 TP Group PLC -20.9 Babcock International Group PLC -55.5 Avon Protection PLC -33.5 Westminster Group Plc, Banbury -64.7

-50.4 -17.3 15.7 48.8 81.8 -82.7 -47.6 -12.4 22.7 57.8

Price / EPS TTM Price / Book Value 0.0 26.2 52.3 78.5 104.7 0.0 1.4 2.8 4.2 5.6

Babcock International Group PLC 99.9 Ultra Electronics Holdings Plc 5.3 Westminster Group Plc, Banbury 99.9 BAE Systems Plc 3.9 TP Group PLC 99.9 Avon Protection PLC 3.6 Peer Group Average 44.5 Westminster Group Plc, Banbury 3.3 Ultra Electronics Holdings Plc 30.9 Cohort PLC 3.0 MS International PLC 30.1 Chemring Group PLC 2.8 Chemring Group PLC 26.8 Peer Group Average 2.7 Cohort PLC 23.9 Qinetiq Group Plc, London 2.1 Qinetiq Group Plc, London 15.2 TP Group PLC 1.5 BAE Systems Plc 13.9 MS International PLC 1.1 Avon Protection PLC 4.8 Babcock International Group PLC 0.8

0.0 26.2 52.3 78.5 104.7 0.0 1.4 2.8 4.2 5.6

EPS 5-Year Growth Rate % Revenue 5-Year Growth Rate % -270.5 62.2 395.0 727.7 1,060.4 0.0 6.7 13.4 20.1 26.8

Chemring Group PLC 999.9 Westminster Group Plc, Banbury 25.6 Peer Group Average 104.6 TP Group PLC 23.6 Westminster Group Plc, Banbury 72.9 Qinetiq Group Plc, London 11.1 Avon Protection PLC 51.9 Peer Group Average 8.4 Ultra Electronics Holdings Plc 28.7 Cohort PLC 5.6 Cohort PLC 11.1 Avon Protection PLC 4.6 BAE Systems Plc 7.0 MS International PLC 4.5 Qinetiq Group Plc, London 3.7 Ultra Electronics Holdings Plc 2.9 MS International PLC -6.1 BAE Systems Plc 2.8 TP Group PLC -23.3 Babcock International Group PLC 2.2 Babcock International Group PLC -100.0 Chemring Group PLC 1.3

-270.5 62.2 395.0 727.7 1,060.4 0.0 6.7 13.4 20.1 26.8

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021 Abbreviations: CAGR - Cumulative annual growth rate. EBIT - Earnings before interest and taxes. EBITDA - Earnings before interest, taxes, depreciation & amortization. LFY - Last fiscal year M - Million LON - London Stock Exchange

Definitions: Market Value - Weekly Price times latest Shares Outstanding times any applicable ADR factor. Revenue - Sum of the last four quarters of Revenues. Revenue Per Share - Sum of the last four quarters of Total Revenue divided by Weighted Average Shares Outstanding. Operating EPS LFY - EPS excluding non-recurring, non-operating items, fiscal year aligned TTM value. 60-Day Average Volume (000) - The average of the last 60 daily volume values in thousands of shares. Price 52-Week High - The high closing price from the last 52 weeks of daily closing prices. Price 52-Week Low - The low closing price from the last 52 weeks of daily closing prices. Price / 52-Week High - Latest price divided by the high price from the past 52 weeks of daily closing prices. Price / 52-Week Low - Latest price divided by the low price from the past 52 weeks of daily closing prices. 50-Day Average Price - Mean of last 50 daily closing prices. 200-Day Average Price - Mean of last 200 daily closing prices. Price / 50-Day Average Price - Latest closing price divided by mean of last 50 daily closing prices, as a percentage. Price / 200-Day Average Price - Latest closing price divided by mean of last 200 daily closing prices, as a percentage. Relative Strength Index - Relative Strength Index or RSI measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 - 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods. In this item, 14 days is used and one year of daily prices are considered. A value of 30 or below may imply oversold and 70 or above may imply overbought. Price Volatility - The standard deviation of the last 20 days of daily closing prices. Sharpe Ratio - The 5 year average of the excess monthly return over the risk - free rate(1 - month T - bill) over the 5 year standard deviation of the same series. Sortino Ratio - The same calculation as the Sharpe Ratio but with positive excess returns set to zero for the standard deviation denominator, so only negative volatility weighs in. Dividends Per Share TTM - Sum of the last four quarters of Dividends Per Share. Payout Ratio - Dividends Per Share TTM divided by Operating EPS TTM. Dividend Yield TTM % - Sum of the last four quarter of Dividends Per Share divided by Weekly Price. EBITDA - Sum of the last four quarters of EBITDA (Operating Income + Depreciation & Amortization). Free Cash Flow - Sum of the last four quarters Net Cash from Operations minus Capital Expenditures (Purchase of Property, Plant & Equipment), from the Cash Flow Statement. Book Value Per Share - Total Common Equity last quarter divided by Shares Outstanding last quarter. Gross Margin % - Sum of the last four quarters Gross Profit divided by the sum of the last four quarters Revenues. EBITDA Margin % - Sum of the last four quarters EBITDA divided by the sum of the last four quarters Revenues. Pre-Tax Margin % - Sum of the last four quarters of Earnings Before Taxes divided by sum of the last four quarters Revenues. Net Profit Margin % - Sum of the last four quarters of Operating EPS divided by sum of the last four quarters Revenues Per Share. Return on Equity % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Book Value. Return on Capital % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Capital Per Share. Return on Assets % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Assets Per Share. Price / EPS TTM - Weekly Price divided by the sum of the last four quarters of Operating EPS (capped at 99.9). Price / Sales - Weekly Price divided by Revenues Per Share TTM. Price / Book Value - Weekly Price divided by Book Value Per Share last quarter. Book Value Per Share is Total Common Equity last quarter divided by Shares Outstanding last quarter (capped at 49.9). Free Cash Flow Yield % - Free Cash Flow Per Share TTM divided by Weekly Price. Enterprise Value - Market Value plus Total Debt last year plus Preferred Equity last year minus Cash & Cash Equivalents last year. Enterprise Value / Sales - Enterprise Value divided by the sum of the last four quarters of Revenue. Enterprise Value / EBITDA - Enterprise Value divided by EBITDA TTM. Enterprise Value / EBIT - Enterprise Value divided by trailing four quarters of Operating Income. Enterprise Value / Free Cash Flow- Enterprise Value divided by the sum of the last four quarters of Free Cash Flow. Russell 1000 Index - The largest 1,000 stocks by market cap, the index comprehensively covers the US large cap universe. EPS 5-Year Growth Rate % is capped at 999.9%. Revenue 5-Year Growth Rate % is capped at 999.9%.

Industrials/Defense Price: 321.00 GBX Report Date: September 24, 2021

Disclaimer:

© 2021 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE Canada”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed Income LLC (“FTSE FI”) and (7) The Yield Book Inc (“YB”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB. “FTSE®”, “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®”, “The Yield Book®” and all other trademarks and service marks used herein (whether registered or unregistered) are trademarks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, FTSE Canada, Mergent, FTSE FI, YB. FTSE International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.

All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided "as is" without warranty of any kind. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of FTSE Russell indexes or data or the fitness or suitability of the FTSE Russell indexes or data for any particular purpose to which they might be put. Any representation of historical data accessible through FTSE Russell indexes or data is provided for information purposes only and is not a reliable indicator of future performance.

No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, such information.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing contained in this document or accessible through FTSE Russell indexes or data, including statistical data and industry reports, should be taken as constituting financial or investment advice or a financial promotion.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB, and/or their respective licensors.