Investor presentation June 2021

discoverIE Group plc June 2021 Introduction to discoverIE

◼ Design, Manufacture & Supply customised electronic components ◼ Highly differentiated products

◼ Customers: Original Equipment Manufacturers (OEMs) ◼ Essential products, repeating revenue

◼ Sustainable growth markets ◼ Renewable energy, transportation, medical, industrial & connectivity

◼ Revenue of £454m, operating profit(1) of £35.2m ◼ Operating across 24 countries

◼ Acquisitive ◼ Fragmented market – 17 acquisitions in last 11 yrs

(1) Underlying profit for y/e 31 Mar 21 .

discoverIE Group plc June 2021 2 Sustainable growth Company, resilient in tough conditions SALES(1) We aim to provide investors with ◼ Returns of 15 – 20% pa +19% CAGR(1) ◼ A progressive dividend +6% CAGR(1)

In 5yrs to FY18:

◼ Sales(2) up > 2x COVID COVID year ◼ Underlying EPS up > 2x FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 ◼ Operating profits up > 4x UNDERLYING OPERATING PROFIT & EPS

Since FY19 our aim has been to double underlying EPS in 5 years ◼ FY19 + FY20 op profits up 51% ◼ FY19 + FY20 EPS up 35% ◼ Covid actions minimise impact to

only 5% & 14% lower respectively COVID year COVID

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Underlying Operating Profit EPS (1) Share price and dividend growth from FY13 to FY21 (2) Group revenue, excluding disposed businesses

discoverIEdiscoverIEGroupGroup plcplc June 2021 3 Our business

Business fundamentals Attractive rewards

▪ Growth markets ▪ GDP++ organic growth

▪ Designed-in products, difficult to replace ▪ High levels of repeating revenue

▪ Distinct business, competitive advantage ▪ Sustainable margins

▪ Low customer concentration ▪ Reduced risk

▪ Design, not price led ▪ Increasing margins

▪ Low capital requirements ▪ Cash generative

▪ Multiple manufacturing sites & technologies ▪ Reduced risk

▪ Acquisitions at the right price ▪ Earnings accretion

Underpinned with high standards of Environmental, Social & Governance for a better world

discoverIE Group plc June 2021 4 Consistent, proven strategy

◼ Sales growth well ahead of GDP over the economic cycle

◼ Move up the value chain into higher margin products

◼ Acquire businesses with attractive growth prospects and strong operating margins

◼ Further internationalise the business

◼ Generate strong cash flows and long term sustainable returns while reducing impact on the environment

discoverIE Group plc June 2021 5 Focused on delivering key targets

Key Strategic Indicators FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY25 Targets 1. Increase share of Group revenue from D&M(1) 18% 37% 48% 52% 57% 61% 64% 65% >75%

2. Increase underlying operating margin 3.4% 4.9% 5.7% 5.9% 6.3% 7.0% 8.0% 7.7% 12.5%

3. Build sales beyond (1) 5% 12% 17% 19% 19% 21% 27% 28% 40%

4. Target Market Sales(1) n/d n/d n/d 56% 62% 66% 68% 70% 85%

Key Performance Indicators FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Targets

1. Sales growth CER 17% 36% 14% 6% 11% 14% 8% (4%) Well ahead D&M Organic 3% 9% 3% (1%) 11% 10% 5% (4%) of GDP Group Organic 2% 3% 3% (1%) 6% 8% 2% (6%)

2. Underlying EPS growth 20% 31% 10% 13% 16% 22% 11% (14%) >10%

3. Dividend growth 10% 11% 6% 6% 6% 6% 6%(2) 6%(3) Progressive

4. ROCE 15.2% 12.0% 11.6% 13.0% 13.7% 15.4% 16.0% 14.5% >15%

5. Operating profit conversion 100% 104% 100% 136% 85% 93% 106% 141% >85% of Op profit

6. Free cash conversion n/d n/d n/d n/d n/d 94% 104% 157% >85% of PAT

7. Carbon emissions (6%)(4) 50% reduction by CY25

(1) As a percentage of Group revenue (2) Increase in the interim dividend, a final dividend was not proposed due to COVID-19 (3) Increase over FY 2018/19, the last full dividend (4) Carbon emissions reduced by 19% including the effects of Covid, 6% reduction on an underlying basis n/d – not previously disclosed

discoverIE Group plc June 2021 6 ▪ Global trends driving structural growth FOCUSED ON ▪ Product development driven by technology SUSTAINABLE ▪ Increasing electronic content GROWTH MARKETS ▪ Essential products ▪ Markets aligned with UN SDG(1)

Renewable Transportation Medical Industrial & Energy Connectivity

Artificial Connectivity, Mega Decarbonisation Electrification intelligence, automation & Trends & Diversification & Autonomous sensing and Industrial vehicles analytics Internet of Things

(1)UN SDG United Nations Sustainable Development Goals

discoverIE Group plc June 2021 7 Our planet, Our people, Our products

Environmental, Social & Governance (ESG) priorities for a better world

Environment Health & Safety Diversity Governance

Tonnes CO2/£m turnover Accidents per employee Gender split Internal audit covers 80% Head office staff Group EBIT & 67% Group 22.91 -19% 64% 61% 62% Stock over two years 0.022 18.52 Employee engagement 0.020 36% 39% 38% programs focused on 0.019 communication, health & well being

FY19 FY20 FY21 Community outreach Male Female 2019 2020 FY19 FY20 FY21 Community Foundation Surrey Manufacturing for the disabled • 19% fall in CO2 emissions • >6500 hours of H&S training • Focused on increasing our • 6% underlying fall ex-covid • >90 H&S reps Group wide diversity • Targeting 50% reduction by • Targeting >80% of global • 38% Head Office staff gender CY25, with c.£3m investment workforce to be under diversity • ISO14001 accreditation ISO45001 by 2025 • 13% Head Office staff ethnic program underway for 80% diversity target by 2025, currently 31% • Targeting 33% board gender diversity

discoverIE Group plc June 2021 8 Design & Manufacturing division

REVENUE FROM TARGET MARKETS ▪ 65% of Group Revenue (% of total revenue) REVENUEREVENUE BY REGIONREGION ▪ 6% Organic CAGR over last 5 years (pre FY21)

▪ 75% in faster growing target markets UK UK ▪ Generating 87% of FY21 Group profit contribution Asia 10% Asia23% 10%Germany Other ▪ 13% operating margin 23% Germany12% Industrial & 12% Connectivity ▪ 16 acquisitions completed since 2011 N. America ▪ Increasing specialist capability and international reach 13% Nordic N. America 24% Transport 13% R.O.E. Nordic Medical 18% 24% Renewable ▪ Capital light model with capex c.2%of revenue R.O.E. energy 18% 75% ▪ R&D investment c. 2%/rev

▪ 29 manufacturing sites / 18 countries

HALF YEARLY ORGANIC SALES GROWTH

12% 11% 10% 10% 9%

7%

5%

3%

(2%)

(7%)

Q4 17 H1 18 H2 18 H1 19 H2 19 H1 20 H2 20 H1 21 H2 21 Without COVID-19 With COVID-19 discoverIE Group plc June 2021 9 Strong cash flow and returns ◼ Operating cash flow Strong growth in operating & free cash flows Operating & Free cash flow £49.7m free cash flow ◼ Consistently high conversion rate £39.3m £37.6m ◼ Aiming to be self sufficient in funding over time £28.6m £27.1m £27.3m £22.1m £19.2m ◼ £16.3m High quality acquisitions over 11 £13.9m £13.2m £9.6m years £7.1m £7.2m ◼ £280m invested in 17 D&M Operating cash flow % acquisitions, £135m new equity FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Target ◼ 100% 104% 100% 136% 90% 93% 106% 141% 85% Generating strong returns ◼ Well ahead of cost of capital 66% ◼ Higher margin, capital-lite, cash Average EBIT ROI generative

43% ◼ Average EBIT ROI(1) of acquisitions of 16%

25% 25% ◼ Targeting EBIT ROI > 15% 22% 17% 17% 15% 15% 16% Target 12% 10% 10% ◼ Clear approach to acquisitions 3% ◼ Must have discoverIE DNA

A B C D E F G H I J K L M TOTAL ◼ Group ROCE for FY21 of 14.5% (1) Average ROI defined as average operating profit attributable to the business since acquisition over acquisition cost (comprising up-front consideration, acquisition expenses, earn-out (once earned), and integration costs) ◼ H2 15.6% (2) All D&M businesses included which were acquired more than 2yrs ago. Excludes recent acquisitions: Sens-Tech, Limitor, Phoenix and CPI

discoverIE Group plc June 2021 10 Acquisition case study – Noratel Group

Noratel FY15-21 ◼ Acquired July 2014 Noratel FY15-21 Revenue growth 7% CAGR ◼ Products – Power Transformers

OperatingRevenue growth margin 10%7% CAGR→ 14% ◼ Developments since acquisition: Operating margin 12%10% →→ 24%14% ROCE ◼ Developed long term strategic plan ROCEROI 12%14% →→ 24%21% ◼ Organic growth in target markets ◼ Upscaled production facilities to support WorkingROI capital % 29%14% →→ 21%14% growth including new Indian facility WorkingTarget market capital % % 62%29% → 75%14% ◼ Manufacturing rationalisation ◼ 2 bolt on acquisitions in InternationalTarget market sales % % 28%62% → 47%75% (Plitron and Hobart) InternationalBolt on acquisitions sales % 28% →2 47% ◼ Working capital optimisation

Bolt on acquisitions 2 ◼ Upscaled finance team ◼ Integrated Group risk, control & ESG policies ◼ Transitioned to new CEO

discoverIE Group plc June 2021 11 Outlook, financing & dividends

Latest recommendations (1)

Latest Rec Date

Peel Hunt 835p Buy Apr-21 ◼ Berenberg 850p Buy Apr-21 Outlook FinnCap 833p Buy Apr-21 ◼ Fundamentals in place for long term growth to resume: strong order growth, good levels of Jefferies 800p Buy Feb-21 design wins, pipeline of acquisitions Numis 740p Hold Apr-21 Panmure 850p Buy Apr-21 ◼ Financing 2 Shore 845p Buy Apr-21 10.15p ◼ Net debt of £47m at 31 Mar 21 with gearing of 1.1x 9.55p Average 822p 9.00p ◼ £180m committed facility (to Jun 24) plus a £60m 8.50p 8.05p accordion. 7.60p 6.80p 6.18p 7.00p 5.81p 6.75p ◼ Dividend 5.43p 6.35p 5.09p 6.05p 5.72p ◼ Progressive dividend policy. 5.40p 4.98p ◼ 100% dividend increase in 11yrs to FY21 (7% CAGR) 4.36p 3.99p 3.40p 3.74p Covid cash protection action protection cash Covid ◼ Long term: >3x cover (underlying basis); FY21 2.5x

3.15p 2.65p 2.80p 2.97p 2.20p 2.33p 2.45p 1.69p 1.69p 1.82p 1.82p 1.82p

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

(1) Recommendations as at 31 May 2021 (2) Shore recommendation within the paper

discoverIE Group plc June 2021 12 APPENDIX Board, GEC & History Board of Directors

M M Diamond MBE - Chairman B M Thompson – Senior Non-Executive Director Malcolm was appointed a Non-Executive Director in November 2015 and Bruce joined the Board as a Non-Executive Director in February 2018. He became Chairman in April 2017. Malcolm was previously Chief Executive of is also Chairman of plc. He retired in 2018 as Chief Executive Trifast plc and then Non Executive Chairman for a combined period of 30 Officer of Diploma plc after 22 years. Bruce brings a wide range of years. Other previous roles include Non-Executive Chairman of Flowtech strategic and leadership expertise to the Board with proven experience of Fluidpower plc and Senior Non-Executive Director of Dechra growing international industrial businesses. Pharmaceuticals plc.

N J Jefferies – Group Chief Executive T Graham - Non-Executive Director Nick was appointed Group Chief Executive in January 2009. His experience of electronics and the components industry comes from Tracey joined the Board as a Non-Executive Director in November 2015. holding senior positions for over 15 years with leading international She is also a Non-Executive Director at , Royal distributors of electronic components and computer products, such as Mutual Building Society and Link Scheme Limited. Among other plc and Arrow Electronics. Nick originally trained as previous appointments, she was a non-Executive Director at RPS Group an Electronics Design Engineer with Racal Defence (now part of Thales plc. During her executive career, she was Chief Executive of Talaris plc). Limited and Managing Director of De La Rue Cash Systems.

S M Gibbins – Group Finance Director C Watson - Non-Executive Director Simon was appointed as Group Finance Director in July 2010. A Chartered Clive, a Chartered Accountant, became a Non-Executive Director and Accountant, he was previously Global Head of Finance and Deputy CFO at Chair of the Audit & Risk Committee in September 2019. He is a also a Shire plc. Prior to joining Shire in 2000, he spent 6 years with ICI plc in Non-Executive Director at Breedon Group plc, Kier Group plc and Trifast various senior finance roles, both in the UK and overseas. His earlier career plc and was Non-Executive Director and Chair of the Audit Committee at was spent with Coopers & Lybrand in London Spirax-Sarco Engineering plc for 9 years. During his executive career he was Group Finance Director of plc for 13 years until 2019.

discoverIEdiscoverIEGroupGroup plcplc June 2021 14 Group Executive Management

N J Jefferies – Group Chief Executive* S M Gibbins – Group Finance Director* Nick was appointed Group Chief Executive in January 2009. His Simon was appointed as Group Finance Director in July 2010. A Chartered experience of electronics and the components industry comes from Accountant, he was previously Global Head of Finance and Deputy CFO at holding senior positions for over 15 years with leading international Shire plc. Prior to joining Shire in 2000, he spent 6 years with ICI plc in distributors of electronic components and computer products, such as various senior finance roles, both in the UK and overseas. His earlier career Electrocomponents plc and Arrow Electronics. Nick originally trained as was spent with Coopers & Lybrand in London an Electronics Design Engineer with Racal Defence (now part of Thales plc)

P H Neville - Group Commercial Director M F Pangels - Group Development Director

Paul was appointed Group Commercial Director in March 2009. A Martin is Group Strategy and Development Director. He joined discoverIE Chartered Accountant, he has over 15 years experience of working in senior in July 2010 after working as an advisor to the business. Prior to joining management positions for listed public companies, including Wincanton discoverIE, Martin spent 9 years at Electrocomponents plc, where he was plc and Uniq plc. Prior to joining discoverIE he was Group Chief Executive of Regional General Manager for Europe, and 6 years with Bain & Company an AIM listed software development company. as a strategy consultant.

J J Morcom – Group Head of Corporate P G Webster - Group Director – Acal BFi and Cross Development Selling

Jeremy was appointed Group Head of Corporate Development in March Paul joined discoverIE in June 2010 as Managing Director, Acal BFi UK. He 2017. A physicist by background, he has extensive experience in mergers has many years experience in senior management roles, including Head of and acquisitions, having held M&A leadership roles at Spectris plc and Product Management for Electronics globally at Electrocomponents plc. Invensys plc preceded by over a decade spent in investment banking. He began his career as a design engineer for Plessey Avionics (now part of BAE Systems).

G D Davidson – Group General Counsel & Company Secretary

Greg joined discoverIE in November 2019 and is responsible for legal and company secretarial affairs. He is a qualified lawyer with extensive experience of technology, corporate and commercial matters. His experience includes 5 years at Wiggin & Co LLP, with clients focused predominantly in the technology sector and, prior to joining discoverIE, 16 years at RM plc, with 7 years as General Counsel & Company Secretary * Denotes membership of the Board

discoverIE Group plc 15 History since incorporation

BFi Optilas Compotron, Myrra, YEG & Variohm Cursor Incorporation Noratel Flux Hobart Sens-Tech Limitor SAS Hectronic & RSG Holdings Controls MTC (£71m) (£3m) (£12m) (£58m) (£13m) (£13m) (total £9m) (total £13m) (£12m) (£19m) Admission to the official list Sale of AES Foss Contour Santon Positek Phoenix CPI of the London Sale of ATM Sale of UK (completes exit Stock (£17m) and Parts Parts from IT Supply (£8m) (£24m) (£4m) (£9m) (£8m) Exchange Chain £12m total) Plitron (£2m)

New £55m rights management: £6m placing £14m placing £28m placing £32m placing issue NJ joins as CEO SG as CFO

(Jul 10) Sale of EAF Parts

Jan Jan Jun Jul Jan Nov Jan/Feb Jan Jan Oct Apr Oct Oct Feb May 1986 1994 2009 2009 2010 2011 2013 2013 2014 2014 2015 2015 2016 2017 2018 2018 2019 2019 2020 2021 2021

Acquisitions Disposals Fundraising

◼ High Quality Shareholders ◼ Top 5 (34%) –Standard Life Aberdeen, Black Rock, Kempen, Montanaro, Canaccord ◼ Next 15 (38%) – Amati, Axa, Charles Stanley, Colombia Threadneedle, Danske, Franklin Templeton, Herald, Invesco, Kabouter, L&G, Rathbones, Royal London, Royce, Schroders, Swedbank ◼ Directors/management: 4%

discoverIE Group plc June 2021 16 APPENDIX Sales model and customers Our engineering led sales model

▪ Customer needs ▪ Helping customers solve their technical challenges to create more efficient, productive and sustainable equipment and comply with increasingly stringent environmental, health, safety and performance requirements. ▪ Enduring customer relationships ▪ Our model gains a unique understanding of customers’ needs and builds long term relationships that last for many years. ▪ Engineering led solutions ▪ By applying our extensive technical knowledge of applications and design our engineers create unique products for customers’ specific needs ▪ Recurring revenues ▪ Our designs are specified into our customers’ system designs for production, leading to multiple years of repeated monthly demand, creating stable, recurring revenue streams ▪ Regional manufacturing ▪ Manufacturing locations in Europe, Asia and the Americas provides regional supply for customers, reducing transit times, costs and environmental impact as well as reducing risk of disruption

discoverIE Group plc June 2021 18 Our customers

& the European ‘Mittelstand’

discoverIE Group plc June 2021 19 APPENDIX Target Markets Essential products into growth markets

Technology discoverIE Mega trends Market drivers integration solutions

Decarbonisation ◼ Geopolitical consensus ◼ Increasing scale of wind ◼ Power inductors & Diversification ◼ Growing public awareness turbines ◼ Turbine blade pitch ◼ Legislative and regulatory ◼ Diversification of solar control regimes systems ◼ Airflow measurement Renewable Energy ◼ Cost of energy

Electrification ◼ Decarbonisation ◼ Electric vehicles ◼ Charging & Autonomous ◼ ‘Safety-centric’ agenda ◼ Mass transit & route ◼ Sensing systems vehicles ◼ Mass transit & route vehicles ◼ Power control vehicles ◼ Autonomous vehicles ◼ Cabin monitoring & ◼ High speed rail control Transportation

Artificial intelligence, ◼ Proactive & preventative ◼ Monitoring & control ◼ Embedded diagnostics sensing & analytics medicine ◼ Automation & robotics ◼ Interface device & cabling ◼ Technological & biological ◼ Advanced surgery ◼ Power systems fusion ◼ Predictive analytics Medical

Connectivity & ◼ Operational efficiency and ◼ Automation & robotics ◼ Wireless telematics Industrial flexibility ◼ ‘Smart factories’ ◼ Fibre optic connectivity ◼ Quality control ◼ Artificial intelligence ◼ AI communication Internet of Things ◼ Competition from ◼ Wireless robotics control Technology companies Industrial & Connectivity

discoverIE Group plc June 2021 21 Renewable Energy

Applications

Airflow, temperature and pressure switches

Wind measurement and pitch controller

Turbine power converters and inductors

High voltage, high current DC and AC switches

Power supply for pitch controller

discoverIE Group plc June 2021 22 Medical

Applications

Embedded computers and displays

Foot switches to control the height and position of the operating table

Cabling and connectors for medical equipment

Toroidal isolation transformers used in C-Arm X-ray machines and X-ray generators

Power isolator and protection for operating theatres

discoverIE Group plc June 2021 23 Transportation

Applications

Rail carriage door controls and connectors

Driver desk indicators and controls, speedometer and monitors

Vehicle electrification charging infrastructure

Drum switches and connectors

Transformers and inductors, smaller battery solutions for in-train power

discoverIE Group plc June 2021 24 Industrial & Connectivity

Applications

Power unit for satellite propulsion

Wireless communications for industrial metering

Telematics for remote control of industrial equipment

Power & signal electronics for industrial drive unit

Position sensor for extensometers

Fibre optic switching module for testing fibre optic cables

discoverIE Group plc June 2021 25 Refining our industrial market focus

Growth areas where electronics will drive efficiency, intelligence and sustainability ▪ Industrial applications that support & enable sustainability Industrial & ▪ Energy efficiency, Connectivity automation & communication ▪ Focus on improvement

▪ Enablers of new sustainable capabilities Industrial & ▪ Smart agriculture Connectivity Example: ▪ Efficient food Resource manufacturing systems Optimisation ▪ Efficient water use/management ▪ Water quality improvement

discoverIE Group plc June 2021 26 Case study: Our unique solutions for Renewable energy

▪ Strong and trusted customer relationships across supply chain ▪ Providing innovation-led, bespoke solutions to essential customer requirements ▪ Multi-year design cycles provide strong visibility & recurring revenues ▪ Complementary technologies create cross-selling opportunities

Airflow measurement Pitch controller

Power inductors

discoverIE Group plc June 2021 27 APPENDIX Sustainability in action Sustainability in action Advancing the Electrification of Transportation

discoverIE Group plc June 2021 29 Sustainability in action Enhancing the Quality of life and care for people

discoverIE Group plc June 2021 30 END