Pressure Technologies : Full year results presentation 2020

This presentation has been prepared by Pressure Technologies plc (the "Company" or "Pressure Technologies") solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom.

This presentation does not constitute or form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in the Company nor shall this presentation or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. No reliance may be placed, for any purposes whatsoever, on the information contained in this presentation or on its completeness and this presentation should not be considered a recommendation by the Company or N+1 Singer or any of their respective affiliates in relation to any purchase of or subscription for securities of the Company. The content of this Presentation has not been verified and has not been approved by an authorised person. Reliance on this document for the purpose of engaging in any investment activity may expose you to a significant risk of losing all of the property invested or of incurring additional liability. If you are in any doubt about this document, you should consult an appropriate independent advisor.

Neither this presentation nor any copy of it may be (i) taken or transmitted into the United States of America, (ii) distributed, directly or indirectly, in the United States of America or to any US person (within the meaning of regulations made under the Securities Act 1933, as amended), (iii) taken or transmitted into or distributed in Canada, Australia, the Republic of Ireland or the Republic of South Africa or to any resident thereof, or (iv) taken or transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such jurisdiction. The distribution of this document in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and observe, any such restrictions or other applicable legal requirements.

This presentation includes statements that are, or may be deemed to be, "forward-looking statements". Such forward-looking statements are based on assumptions and estimates and involve risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of the Company, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements. No representation or warranty express or implied is made as to the fairness, accuracy, completeness or correctness of the presentation or opinions contained therein and each recipient of the presentation must make its own investigation and assessment of the matters contained therein. In particular, but without prejudice to the generally of the foregoing, no representation or warranty is given, and no responsibility of liability is accepted, as to the achievement or reasonableness of any future projections or the assumptions underlying them, forecasts estimates or statements as to loss howsoever arising from any use of, or in connection with the presentation. No responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with the presentation or its contents or otherwise arising in connection therewith. In issuing the presentation, the Company does not undertake any obligation to update or to correct any inaccuracies which may become apparent in the presentation.

IF YOU ARE NOT A RELEVANT PERSON OR DO NOT AGREE WITH THE FOREGOING, PLEASE IDENTIFY YOURSELF IMMEDIATELY

Full Year Results to 3 October 2020

■	Group Highlights	4
■	Group Financial Results	5
	■ Profit & Loss	6
	■ Balance Sheet	7
	■ Cash Flow	8
	■ Post Year End Events	9
	■ Chesterfield Special Cylinders	10
	■ Precision Machined Components	11
■ Strategic Progress & Priorities	12
■	Summary & Outlook	19
■ Background on Hydrogen & Integrity Management Investment	21
■	Supplementary Information	26

Full Year Results to 3 October 2020

RESULTS

• Group revenue reflects challenging trading conditions, Covid-19 disruption and the deferral of a major defence contract from Q4 FY20 into Q1 FY21
• Adjusted operating loss driven by lower than expected gross margins, the deferral of major defence contract revenue in Chesterfield Special Cylinders (CSC) and poor operational performance in Precision Machined Components (PMC)
• PMC restructuring, site consolidation and other cost-saving measures were taken promptly in the second half of the year to address the impact of worsening oil and gas market conditions
• Impairment of PMC goodwill and other intangibles driven by challenging oil and gas market conditions, which are expected to continue throughout 2021

STRATEGIC PROGRESS

• Board strengthened with new Chairman and two new NEDs
• Further strategic progress made in diversifying the PMC customer base and securing long-term strategic supply agreements with major OEMs for a wider range of specialised components
• Diversification of end markets in CSC continues to reduce the historical dependence on the oil and gas sector, resulting in a strong order book for defence and nuclear power customers
• Growth continues for CSC in the fast-developing hydrogen energy market, with five refuelling station contracts secured in December 2020 for existing and new customers with a total value of around £0.5 million
• Fifth consecutive year of strong growth in CSC's Integrity Management services, with positive outlook in defence, nuclear power, offshore services and hydrogen energy markets
• Fundraising of £7.5 million before expenses in December 2020 provides a stronger balance sheet and the resources to capitalise on opportunities in the hydrogen energy market and to accelerate growth in Integrity Management services

Full Year Results to 3 October 2020