Exponent (EXPO) investor relations material

Leadership and organizational strategy

• Leadership team emphasizes continuity, internal promotion, and multidisciplinary expertise as key differentiators.

• Over 70% of consultants hold doctoral degrees, fostering a collaborative, high-caliber environment.

• The company’s DNA is rooted in solving complex, unstructured problems across engineering and science.

• Talent acquisition focuses on top PhD graduates, offering real-world impact and career development.

• International expansion and selective M&A are considered for strategic growth and talent access.

Core services, industry focus, and business model

• Services span failure analysis, regulatory consulting, and proactive risk management across sectors like consumer electronics, automotive, chemicals, energy, and construction.

• About 60% of business is reactive (disputes, failure analysis), while 40% is proactive (risk avoidance, product development).

• High-profile cases include investigations into major product failures and accidents, such as the Cruise automated vehicle incident.

• The company’s multidisciplinary teams deliver integrated solutions, complementing client capabilities.

• AI and technological innovation are driving new opportunities, especially in regulated and safety-critical applications.

Market trends, growth drivers, and resilience

• Growth is fueled by increasing complexity in technology, infrastructure, and regulatory demands.

• Secular drivers include aging infrastructure, energy demand, and rapid innovation in consumer and medical devices.

• The business model is resilient to macroeconomic cycles due to the essential nature of dispute and regulatory work.

• Proactive and reactive work cycles reinforce each other, with incidents often leading to new consulting opportunities.

• International projects and geographic expansion, particularly in Europe and the UK, are strategic priorities.