#1Investor Introduction 2020 XP XP Power POWERING THE WORLD'S CRITICAL SYSTEMS#2o WHAT WE DO? We power: XP XP Power Electronic systems with our low voltage products; and Processes with our high voltage or radio frequency (RF) power converters. We power mission critical systems in: . • Healthcare Semiconductor Manufacturing Equipment Industrial Technology No direct exposure to consumer electronics or high-volume low margin applications POWERING THE WORLD'S CRITICAL SYSTEMS#3PRODUCT XP XP Power . o PRODUCT PORTFOLIO SIGNIFICANT GROWTH OPPORTUNITY Acquisitions in high voltage (EMCO and Glassman) and Radio Frequency (RF) power expand our addressable market from $2.7Bn to $4.7Bn One of few companies in the world who can provide solutions right across the power and voltage spectrum High power Market size - $2.7Bn 50KW 10KW XP - $210m XP XP Power 5KW 3KW T 1.5KW T 500W 1 1 Market size - $1.2Bn XP - $20m XP COMDEL RF POWER TECHNOLOGY Market size $0.5Bn XP - $18m XP GLASSMAN HIGH VOLTAGE 140W 1 Can use our engineering services 1 75W capabilities to combine different products to give the customer a complete solution Presents significant long-term growth. opportunity Low power 30W 10W 1 XPIEMCO Market size - $250m XP $13m L 5V 24V 60V 400V 800V 6KV 10KV 30KV 60KV 100KV+ Low voltage POWERING THE WORLD'S CRITICAL High voltage SYSTEMS 3#4STRATEGY IN ACTION XP XP Power OUR STRATEGY IS DELIVERING Develop a market leading range of competitive products Target accounts where we can add value Vertical penetration of target accounts Build a Global Supply Chain which balances high efficiency with market leading customer responsiveness Lead our industry on sustainability matters Make selective acquisitions in identified strategic markets to expand our product offering SAMBUNG Consistent application of a winning strategy has meant that XP has been able to continue to invest in product development, hiring talent and expanding manufacturing capacity during the COVID-19 pandemic XP Power Interim Results 2020 POWERING THE WORLD'S CRITICAL SYSTEMS#5COVID-19 O KEY GROUP CHARACTERISTICS XP XP Power • • Strong customer relationships - Preferred or approved suppliers at numerous blue-chip companies Significant barriers to entry - Product is designed in, safety critical, regulatory approvals, traceability of components Exposed to high growth markets - Semifab, Healthcare and high growth niches in industrial technology (smart grid, robotics, analytical instruments, 3D printing, test and measurement) Revenue Annuity - Once designed in programme lifecycles are 7 to 8 years on average Global Footprint - Engineering close to customers' design teams but multisite (China and Vietnam) low cost manufacturing - resilient supply chain Green Products - ultra high efficiency and low stand-by power over much of the portfolio POWERING THE WORLD'S CRITICAL SYSTEMS 5#6INVESTMENT CASE XP XP Power o FINANCIAL INVESTMENT CASE • • Organic revenue growth - Consistent growth over the cycle delivering market share gains. Aiming for high single digit growth. Attractive margins - Aiming to consistently deliver >20% operating margins on high 40's gross margin Cash generation – high conversion of profit to cash due to high margins and low capital intensity Dividends - Cash generation funds a growing and impressive track record Acquisitions - On top of organic growth funded by cash generation Mid to high single digit revenue growth possible with faster bottom line given margin accretion POWERING THE WORLD'S CRITICAL SYSTEMS 6#7Investor Introduction 2020 - Appendices XP XP Power POWERING THE WORLD'S CRITICAL SYSTEMS#8XP Power Interim Results 2020 Revenue (£ Millions) 56.8 70.2 Industrial Electronics Note: 2020 is annualised H1 2020 performance STRATEGY IN ACTION O REVENUE BY SECTOR CAGR +4.9% 78.6 83.6 89.2 73.8 CAGR +42.1% 10.0 15.1 28.3 37.4 47.5 56.4 CAGR +14.6% CAGR +10.6% 28.4 30.7 41.4 43.6 45.9 55.8 Semi Fab Healthcare Technology 2015 2016 2017 2018 2019 2020 14.5 13.7 18.4 20.4 27.4 24.2 XP XP Power High level Trends • Increased connectivity of the power converter to the customer's equipment Higher power Higher engineering services content (customisation) Industrial revolution 4.0 Increased legislation POWERING THE WORLD'S CRITICAL SYSTEMS 8#9o SELECTED CUSTOMERS TOP 30 APPLIED MATERIALSⓇ BD 拓荆科技 PIOTECH CO.,LTD MASIMO™ Lam RESEARCH stryker ViasatM NAURA Ⓡ axcelis XP XP Power Medtronic Instrumentation Laboratory A Werfen Company CHRISTIE GEGE imagination at work Johnson & Johnson SIEMENS INTUITIVE ® 北方华创 KLA Tencor SURGICAL HOLOGIC® ResMed Top 30 customers account for 57% (1H 2019: 49%) of revenue (largest customer <14%) XP Power Interim Results 2020 Carestream POWERING THE WORLD'S CRITICAL SYSTEMS 6#10STRATEGY IN ACTION o XP POWER CONVERTERS EVERYHERE Trends Technology • High end computing Broadcast Displays Communications ⚫ Security Higher power Higher engineering services content Increased connectivity of the power converter to the customer's equipment • Semifab Deposition Etch Wafer handling lon implantation Semiconductor test оос #! H HOSPITAL 卡掉 XP XP Power Healthcare ⚫ Imaging Patient monitoring Life science Surgical tools Home healthcare Industrial • 3D printing Process control Test and measurement • Smart grid • Transport POWERING THE WORLD'S CRITICAL SYSTEMS 10 10#11not typical Design in cycle typically 18 months (longer in healthcare) 2009 and 2012 dips due to market downturn and 0.2 0.9 COMPANY OPERATIONS o TYPICAL PRODUCT LIFE CYCLE Substantial revenue annuity REVENUE HISTORY ECM40/60 SERIES (£ MILLIONS) 7.4 7.1 2 3.7 4.6 4.1 6.2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 POWERING THE WORLD'S CRITICAL *2020 annualised SYSTEMS 11 6.1 6.7 5.4 བ 4.8 5.4 5.2 4.1 4.7 XP XP Power#12POWERING THE WORLD'S CRITICAL SYSTEMS XP XP Power