REG - QinetiQ Group plc - Investor Seminar

QinetiqAnnouncement

25/10/2023 07:30

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RNS Number : 1762R  QinetiQ Group plc  25 October 2023

News release

QinetiQ Group plc

Investor Seminar: Drivers of our sustainable growth

25 October 2023 - QinetiQ Group plc ("QinetiQ" or "the Group") today is
hosting a seminar where we will outline our overall strategy and drivers of
our sustainable growth.

 1.  UK Intelligence - a high growth £400m revenue business that has delivered 28%
     CAGR 1  (#_ftn1) over the last 4 years, well positioned as a critical partner
     to our UK defence and intelligence customers;
 2.  United States - a $600m revenue disruptive mid-tier defence and intelligence
     business following our successful acquisition of Avantus last year, with
     significant growth momentum and a qualified pipeline of opportunities of over
     $2bn; and
 3.  Australia including global threat representation - an A$400m revenue
     specialist advisory, engineering and threat representation products and
     services business with significant global growth opportunities.

The defence and security context worldwide has heightened the need for our six
distinctive offerings giving significant growth potential within our
>£30bn addressable market. We have delivered 9% organic revenue growth
over the last four years, over twice the rate of growth in the defence budgets
of our three home countries: the UK, US and Australia. Defence budgets are
increasing around the world and we expect to continue delivering growth
outpacing those budgets, driven by our structural alignment to high priority
market segments that are increasing at faster rates.

Based upon our clear strategy and unique set of distinctive offerings, we have
a robust plan to grow our company organically to £2.4bn revenue 2  (#_ftn2)
at stable margins, with optionality for strategic acquisitions to reach our
£3bn revenue(2) ambition at 11-12% underlying operating profit margin and
ROCE 3  (#_ftn3) at the upper end of the 15-20% range. We have a clear and
robust capital allocation policy and are targeting to maintain a prudent
balance sheet with leverage 4  (#_ftn4) under 1.5x. With capital intensity
reducing we expect to see cash flow yields improve over the next few years.

The seminar will be presented at 101 Park Avenue in New York. You are invited
to join us from 08:15 EDT to see a selection of our capabilities and products,
as well as meet our leadership team. The presentation will start at 09:00 EDT
(14:00 BST) and there will be an option to view online if you cannot join us
in person. Access to the event is via registration on our website:

https://www.qinetiq.com/en/investors/investor-seminars/key-drivers-of-our-global-growth
(https://www.qinetiq.com/en/investors/investor-seminars/key-drivers-of-our-global-growth)

A recording of the seminar will be available at www.QinetiQ.com/investors
(http://www.QinetiQ.com/investors) after the event. There will be no new
material information disclosed on current trading.

About QinetiQ

QinetiQ is an integrated global defence and security company focused on
mission-led innovation. QinetiQ employs more than 8,500 highly-skilled people,
committed to creating new ways of protecting what matters most; testing
technologies, systems, and processes to make sure they meet operational needs;
and enabling customers to deploy new and enhanced capabilities with the
assurance they will deliver the performance required. Visit our website
www.QinetiQ.com (http://www.QinetiQ.com) . Follow us on LinkedIn and Twitter
@QinetiQ.  Visit our blog www.QinetiQ-blogs.com
(http://www.QinetiQ-blogs.com) .

For further information please contact:

 John Haworth, Group Director Investor Relations:                 +44 (0) 7920 545841
 Lindsay Walls, Group Director Communications (Media enquiries):  +44 (0) 7793 427582

 

 1  (https://core-prod.911912160865.ew2.aws.prod.r53/#_ftnref1) Compound
Annual Growth Rate (excluding disposals)

 2  (#_ftnref2) In FY27

 3  (https://core-prod.911912160865.ew2.aws.prod.r53/#_ftnref3) Return on
Capital Employed

 4  (https://core-prod.911912160865.ew2.aws.prod.r53/#_ftnref4) Net debt to
EBITDA

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