Avon Technologies (AVON) investor relations material

Performance and improvement system

• Prior Capital Markets Day targets were met or exceeded one year early; revenue rose by >$100m, while adjusted EBIT, adjusted EPS and ROIC each at least tripled.

• From FY23 to FY26, revenue rose from $244m to ~$350m, adjusted EBIT from $21.1m to $40.3m, adjusted EPS from 40.3c to 91.2c and ROIC from 8.7% to 18.6%.

• The Business Improvement System combines sequenced transformation projects, daily management, coaching and continuous improvement to release cash, capacity and leadership bandwidth; 1,000 employees have learned the methodology.

• Transformation investment totaled $30m over three years and has ended; inventory turns and operational improvements are expected to support cash generation.

• Avon Protection inventory turns improved from 2.9 to 4.2 and on-time delivery from 96% to 97% between HY23 and FY26; Team Wendy capacity rose from 20,000 to 165,000 units.

Markets and Avon Protection growth

• Mission-critical protection markets total $20bn–$30bn, comprising $5bn–$10bn in core markets and $15bn–$20bn in close adjacencies; certification, performance and customer trust create barriers.

• Respiratory protection has >4m active users across >75 countries and #1 global CBRN respiratory market share; European sales grew >90% since 2023, with >0.5m respirators in service.

• US SOCOM selected the full MITR system for Tier One users; the US military installed base includes 1.8m M50 respirators, with 150k reaching 20 years of service annually.

• Growth opportunities include a US CBRN suit advancing to phase 3 trials, US rebreather evaluation, NATO combination systems and next-generation US CBRN development.

• Adjacent opportunities include an integrated CBRN market >$800m and underwater respiratory protection with >$40m accessible market; growth plans also target boots, gloves and EXOSKIN.

Team Wendy growth

• FY26 consensus revenue is $154m versus $67m in HY23; adjusted EBIT is $14m at a 9% margin, compared with HY23 adjusted EBIT of -$11m and a -17% margin.

• Monthly helmet output rose from ~13,000 in Q1 to >20,000 in the latest quarter, reaching almost 22,000 in September; production stabilised at target levels and improved H2 margins.

• Growth priorities include extending US Department of War programmes, expanding across military services, growing international sales and broadening North American commercial and federal markets.

• International ballistic helmet demand reached 2.6m units in 2026, while Team Wendy held 0.6% share outside North America; plans use tailored products, market-specific pricing and local partners.

• North American opportunities include 26,700 US fire departments, 2% of which are current customers, and 96k annual Search & Rescue helmet requirements; Headstrong product shoots generated $3m sales in 18 months.