Avio — Investor Presentation 2025

Mar 13, 2025

MARCH 13, 2025

Avio FY 2024 Results

This document has been prepared by Avio S.p.A. ("Avio" or the "Company"). This document might contain certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Avio's current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Avio to control or estimate. You are cautioned not to place undue reliance on the forwardlooking statements contained herein, which are made only as of the date of this presentation. Avio does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Any reference to past performance or trends or activities of Avio shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. This document does not constitute an offer to sell or the solicitation of an offer to buy Avio's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarding the securities of Avio.

Agenda

Highlights 1.

Giulio Ranzo, Chief Executive Officer

FY 2024 Financials Alessandro Agosti, Chief Financial Officer

Outlook and opportunities Giulio Ranzo, Chief Executive Officer

Record-high revenues and backlog boost growth in 2024

• FY 2024 results in line with guidance, net revenues and order backlog exceeding expectations
• Success of Vega C VV25 in December, ready for VV26 mission in Q2
• New contracts signed with ESA:
  • ✓ Completion of development of Vega E
  • ✓ First Launch Service sold as Avio (FORUM)
• Ariane 6 maiden flight and 1st commercial flight successfully completed
• New technological development programs on track
• Substantial growth of orders in the defense propulsion business
• Proposal of dividends for 2025

Summary of 2024 results

Figures in €m

	2023 Actual	2024 Actual	2024 Guidance
Backlog	1.359	1.724	1.500 - 1.600
Revenues	338,7	441,6	370 - 390
EBITDA Reported	20,5	25,8	21 - 26
EBITDA Adjusted	28,0	31,3	(1) 28 - 33
Net Income	6,6	6,4	6 - 10
Net Financial Position	76,1	90,1	(2) 25 - 34

(1) EBITDA Reported Guidance plus the indication of €7m of Non-recurring costs given in March 2024 (2) Min & Max values of consensus

Avio's 2024 in brief

Success for Vega C VV25 mission

• On December 6th Vega C successfully launched and deployed into a sun-synchronous orbit ("SSO") the Sentinel-1C Earth Observation Satellite, a dedicated mission for the European Commission Copernicus Program
• Vega C is capable to deliver up to 2,350 kilograms in SSO. The launcher can deliver its payloads on three different orbits on the same mission thanks to the AVUM+ engine, which allows for seven reignitions

Ariane 6 first commercial flight successfully completed

• On March 6 th , Ariane 6 launcher successfully put in orbit the CSO-3 satellite for DGA(1) and CNES on behalf of the French Air and Space Force's Space Command. This was the 1 st commercial launch following the maiden flight completed on July 9th , 2024
• Avio is partner of the Ariane 6 program providing the solid rocket boosters P120C and the liquid oxygen turbopumps for the core stage Vulcain 2.1 engine and the upper stage Vinci engine
• In the future, both Ariane 6 and Vega C will be equipped with a more powerful version of the booster (P160), which will increase the thrust of the launchers and their payload capacity

Ariane 6 VA263 lift-off

P120 booster separation

New contracts with ESA pave the way for improving Vega future operations and development …

• On December 18th ESA signed two contracts with Avio amounting to approximately €350m and covering a threeyear time horizon
• In particular, the contracts relate to:
  • ➢ Development of the new Vega E launch system: the contract covers all aspects of the launch system such as rocket assembly, launch pad building, fuelling, launch pad systems and logistics followed by integrated and combined tests of the complete Vega E launch system
  • ➢ Vega C cadence upgrade at the space port: the contract will enhance ground operations to increase the number of flights per year up to six launches per year

Photo credits: ESA

… also marking the role of Avio as a new European Launch Service provider

• On December 18th ESA signed with Avio a launch service contract for the upcoming FORUM earth observation mission. The agreement marks the first implementation under the new Frame Contract for Procurement of Launch Services between ESA and Avio
• FORUM short for Far-infrared Outgoing Radiation Understanding and Monitoring – is a 900kg satellite which will be launched to a Sun-Synchronous Orbit around 830 km, and it will fly in tandem with the MetOp-SG A1 satellite developed by ESA for EUMETSAT, the European Meteorological Satellites Organization
• ESA's FORUM mission will be launched by Avio as launch service provider on board of a Vega C rocket in 2027

Photo credits: ESA

OPERATIONAL

CAPABILITY

DEMONSTRATION

FULL

P160C booster ready for qualification test

PROGRESS STATUS

PRELIMINARY DESIGN REVIEW CRITICAL DESIGN REVIEW QUALIFICATION TEST ON QM3 GROUND QUALIFICATION REVIEW IMC SHIPMENT LMC CASTING LMC DELIVERY

Customer: European Space Agency

Objective: P160C Solid Rocket Motor (SRM) is the evolution of Qualified P120C SRM. P160C will be devoted to Ariane 6 Block 2, Vega C and Vega E launcher

Status update:

Insulated Motor Case (IMC) manufacturing completed in May 2024

IMC shipment in June, with casting activity completed in October

Qualification Model #3 (QM3) firing test scheduled in Q2 2025

1 st P160 (QM3) delivered to Kourou

Vega E program ongoing

PROGRESS STATUS

PRELIMINARY DESIGN REVIEW SUB-SYSTEMS PRELIMINARY DESIGN REVIEW

CRITICAL

DESIGN REVIEW GROUND QUALIFICATION REVIEW QUALIFICATION FLIGHT FLIGHT QUALIFICATION

Customer: European Space Agency

Objective: Vega E launcher aims to increase the payload launch capability by 25% with respect to Vega C, leveraging the MR10 Liquid Oxygen and Liquid Methane engine for the upper stage

Status update:

Launcher system PDR completed Launch complex PDR completed Sub-systems PDR ongoing Chill-down test for cryogenic stage functional model validation completed

1 st regenerative cooled nozzle extension for next MR10 test completed

Cryogenic stage chill-down test

MR10 regenerative-cooled nozzle extension

REVIEW

Customer: European Space Agency

Objective: Development of a reusable orbital and re-entry system aimed to manage multiple commercial and institutional applications (e.g. microgravity, IOV/IOD, Earth and Space Observation applications, etc.)

Status update:

ALEK (AVUM Life Extension Kit) shipped to Netherlands for UCMEC tests

Expected duration of test campaign: three months

ALEK UCMEC tests ongoing

NextGen EU: next-gen launchers and applications progressing

Launcher Products acceleration LOX-CH technology

Space Transportation Systems Multi-Purpose Green Engine In-Orbit Servicing module

Objective: Accelerate development and know-how with 2 small Flight Demonstrators (design, manufacturing & launch)

Demonstrator integration ongoing

Firing test expected in Q3

Objective: Achieve full-scale hot firing demonstration of a 60ton LOX-

High Trust Engine

Manufacturing and integration of DM3

Methane engine by 2026

expected in 2025

Applications and services acceleration Orbital propulsion technology

Objective: Create a highly versatile "Green" engine for orbital propulsion and in-orbit services and logistics

1 st bipropellant ignition tests of the engine's prototype successfully completed in feb-25

New firing test expected in 2025

Objective: Develop enabling technologies to fulfil in-orbitservicing mission objectives

New configuration defined

New Preliminary Design Review ongoing

ALL IP Rights Reserved by ASI. For the purpose of publication, we thank ASI, in its capacity as exclusive owner of the Intellectual Property rights of the MPGE and IOS Programs, for the kind granting of the license

Defense activities growing with European and US customers

Avio signed a contract with MBDA Italia for the supply by Avio of rocket motors for CAMM-ER missiles manufactured by MBDA. This contract, amounting close to EUR 150 million, together with the supply of the motors, also provides for some

technological transfer activities related to part of manufacturing and integration processes of such motors

MBDA Raytheon US Army

Avio signed a contract with Raytheon, an RTX (NYSE: RTX) business, leaders in defense solutions for the U.S. Government and Allied Demand, to initiate and progress the development of critical solid rocket motors for defense applications. The contract furthers the systems engineering work required to mature these solid rocket motors into a production-ready state

AVIO S.p.A. and U.S. Army Combat Capabilities Development Command Aviation & Missile Center partner for the development and fast-prototyping of a solid rocket motor for surfaceto-air applications. The project leverages on both Parties' expertise to qualify the propulsion system in a design-to-manufacturing approach, offering possibility for a future rapid transition to Production

Highlights Giulio Ranzo, Chief Executive Officer

FY 2024 Financials 2.Alessandro Agosti, Chief Financial Officer

Outlook and opportunities Giulio Ranzo, Chief Executive Officer

2024 record in terms of orders intakes and backlog

Figures in €m

Vega accounts for ~50% of 2024 backlog and Defense propulsion ~25%. Production accounts for ~60% of 2024 backlog, Development ~40%

Main comments

• Record backlog level of €1.7bn (+27% vs. 2023)
• Order intakes in 2024 for ~€0.8bn including:
  • ➢ Vega ~€450m: mainly for Vega E development and Vega C cadence improvement
  • ➢ Defense ~€260m: mainly for CAMM-ER and Aster missiles propulsion
  • ➢ Ariane ~€90m: P160 motor for long lead items procurement

Revenues increased by 30% compared to previous year

Figures in €m

Significant increase in revenues mainly driven by Defense propulsion, Technology Development Projects as well as Vega production and development

FY 2024 results vs 2023

	AVIO Group Main financials
	FY2023 Actual (€m)	FY2024 Actual (€m)	Delta (€m)	1.
NET REVENUES	338,7	441,6 1.	102,9
EBITDA REPORTED % on net revenues	20,5 6,1%	25,8 5,8%	5,3	2.
EBITDA ADJUSTED % on net revenues	N/R N/R 7 5 5 5 , , 28,0 8,3%	31,3 2. 7,1%	3,3	3.
EBIT REPORTED	5,2	8,4	3,2
% on net revenues EBIT ADJUSTED	1,5% 12,7	1,9% 13,8 4.	1,1	4.
% on net revenues PROFIT BEFORE TAX	3,8% 6,6	3,1% 6,8 5.	0,2
% on net revenues	1,9%	1,5%
NET INCOME % on net revenues	6,6 2,0%	6,4 1,4%	(0,2)

Main comments

• 1. Significant increase in revenues (+30%) mainly for defense propulsion production, Vega and technology development projects (NextGen EU)
• 2. EBITDA adjusted increase (+12%) driven by higher revenues and lower energy costs
• 3. 3. Reduction of non-recurring costs (mainly related to the return to flight of the Vega C) contributed to a significantly higher EBITDA Reported vs. 2023 (+26%)
  • EBIT increase despite higher depreciations mainly for Vega Cadence increase and IT improvement projects
  • 5. Lower interest income for lower cash available during the year invested in short-term deposits, as well as higher financial expenses and negative foreign exchange rates

19

Cash from new contracts contributes to a structurally negative working capital

Figures in €m

AVIO Group Sources and uses
	31 DEC 2023	31 DEC 2024
	Actual	Actual
	(€m)	(€m)
WORKING CAPITAL	(171)	(213) 1.
DEFERRED TAX ASSETS	81,2	87,5
PROVISIONS	(52,8)	(51,8)
GOODWILL AND OTHER INTANGIBLE	89,2	86,1
FIXED ASSETS	285,6	2. 311,8
FINANCIAL RECEIVABLES	2,0	2,0
NET INVESTED CAPITAL	234,2	222,8
NET CASH POSITION	76,1	90,1 3.
EQUITY	(310,4)	(312,9)
TOTAL SOURCES	(234,2)	(222,8)

Main comments

• Working capital structurally negative thanks to cash advances from order intakes 1.
• Mainly for capex for Vega cadence increase, IT improvement projects/A.I., net of depreciation 2.
• Net cash position improved vs previous year 2023 for collection of cash advances mainly from order intakes of Vega E and defense propulsion 3.

20

2023 – 2024 Net Cash Position bridge

Figures in €m

EBITDA generation heavily concentrated in Q4

Figures in €m

3M 6M 9M FY

2022 2023 2024

Proposed dividend distribution for 2025

• Shareholders return in 2024 benefited from dividends of €6m as well as of the increase in share price
• 2024 Net Income drives proposal to the Shareholders' Meeting of April 30, 2025 for dividend distribution of €3.75m

(1) Calculated as ordinary dividends out of consolidated net income (2) Incorporates €2,250m of extraordinary dividend from distributable reserves (3) Avio share price as of March 12, 2025

Highlights Giulio Ranzo, Chief Executive Officer

3.

FY 2024 Financials Alessandro Agosti, Chief Financial Officer

Giulio Ranzo, Chief Executive Officer

2015-2024 review: flights, SRM deliveries and backlog evolution

Ariane and Vega current view of flight manifest

32 flights currently in backlog Future launches:

• ➢ Project Kuiper (Amazon)
• ➢ Galileo (EU)
• ➢ Military sats

IRIS² major upside

15 flights currently in backlog

Future launches:

• ➢ Copernicus (EU)
• ➢ IRIDE (EU)
• ➢ PLATiNO

Increased responsibilities from Launch service activities

Improving launch cadence up to 6 flights per year

ESA Ministerial Council in Nov '25 to secure future space activities

25th ESA Ministerial Council Nov 26th-27th, Bremen (DE)

• Key objectives and pursuits for funding:
• ✓ Vega C consolidation (full-rate increase to 6/year and further product improvements)
• ✓ Vega E development completion and optimization
• ✓ New LOX-CH4 propulsion further evolutions towards next-gen launchers
• ✓ Ariane 6 (P160) and Vega C support for exploitation

Defense backlog almost doubled: high visibility of future production with significant prospects ahead

Defense propulsion backlog (€m) Defense propulsion production (volumes eq.)

▪ Defense propulsion orders more than doubled vs. 2023 (~€260m in 2024 vs. ~€120m in 2023)

We stand ready to capture upside from EU ReArm Plan

According to announced ReArm Plan, EU is targeting €800bn¹ Total Defense Expenditure

Financial Times, March 4 th

The Guardian, March 4 th

[…]

Avio is ready to rapidly double the Defense production capacity in Italy in case of demand surge:

▪ Leveraging our existing asset base on core solid propulsion technologies

▪ Expanding our equipment thanks to three investment sources:

• ✓ Grants through government funds already applied for
• ✓ Support from customers to rapidly boost capacity on existing platforms
• ✓ Self-funded investment for infrastructure future optimization

These actions untap opportunities to reach up to >4x current production levels

New orders from defense propulsion business

Growth in defense propulsion and Vega activities

AVIO USA accounted in general expenses

Higher taxation vs. previous year

▪ Increasing responsibilities from Launch service activities

• Consolidating Vega C flight cadence, keeping strategic position in Europe
• Boost of P120/P160 production to sustain both Ariane 6/Vega C launch schedule
• Development of liquid propulsion-based solutions to expand future product range
• Margins improvement thanks to economies of scale and growth of defense business contribution
• Enhancement of financial profile, driving remuneration for shareholders
• Capitalize on SRM market opportunities in a globally changing environment
• Further expansion opportunity in US:
  • ➢ Potential investment in a new SRM facility
  • ➢ New customers for additional production activities

THANK YOU FOR YOUR ATTENTION

CONTACTS Investor.relations@avio.com

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