JAMES FISHER AND SONS PUBLIC LIMITED COMPANY (FSJ) June 2026 Investor Update Transcript

Well, good afternoon, everyone, and a very warm welcome to James Fisher & Sons PLC Investor Day. It's good to have so many of you with us in the room today. My name is Kay Marshall, and I'm the Head of Communications and Marketing. And before we get started, I'd just like to walk through some of the housekeeping and logistics for the day. So, as a reminder, exceptional safety is our number one priority. So, if you do hear a fire alarm today, there are no planned tests. so please make your way back out the way you came in through the archway and to your right and there you will see a grassy area where you'll muster and the team here at the venue will be able to support us from there. We are filming and photographing the event today as you will see so we operate an opt-out policy. If you would like to opt out please speak to a member of the team including Amy Cox who you'll see there at the back of the room and of course as you've heard from Richard, we will be taking questions. We actually have three sessions today and we will have roving mics that will be taken around the room. Please do wait for the roving mic please and remember to give your name before you ask your question and the teams would be grateful if you could answer these one by one. And of course you'll see from walking in the room today we have a fantastic showcase which we'll be hosting at the end of today. So there are four different stations and this is a fantastic opportunity for you to meet the team to really get to know the products so please do take the time to stay for drinks and hear more about the incredible mission critical products that we provide here and a final note can you please put your phones to silent or off through the duration of today and with that i'm very pleased to invite our chief executive officer mr jean venet to the stage all right good afternoon everyone ladies and gentlemen.

Thank you for braving the inclement weather and the tube strike to be with us this afternoon. I'm Jean Vernet, CEO of James Fisher and delighted to welcome you to our first Capital Market Day in many years, actually the first one since I joined the company in September 22. But today we will talk about James Fisher defense. I can't think of a better location than the National Maritime Museum next to the old Naval Royal College with its glorious and rich history to hold this event. This place is so connected to the maritime history, full of valor, sacrifice, but also strategic significance, quite appropriate for the business we are in. You are moving the slides. So before we start, please take notice of the disclaimer note. And today, the intent is for us to go through our markets, the markets we are in for James Fisher Defense the customer needs that are evolving and how we respond to those needs so you can make your own view of the opportunity which lies ahead of us I'm joined by several members of our executive teams Karen Hazen Smith our group CFO, Richard Devlin, our head of our defense division, Heather Nisbet, our financial and commercial director for GFD. We also have Jimmy Richards here in the front who is head of submarine rescue, Peter Lawton, head of military Diving, Andrew Lang, Head of Commercial Deep Diving, but also of course Kay Marshall who just introduced us, and at the back of the room our Chief Technology Officer, Cyril Levesque, and our CDO Chief Disruptive Officer in charge of Digital and Corporate CVC, Sean Hough, and, of course, a few other members of the team, Jonathan Conrad from our Treasury, and a few others. So, James Fisher has been through three and a half years of turnarounds, and we are now gradually pivoting to an area of growth, a phase of growth. And during this period, we refocused the group into activities that we do best, This means that what remains in the portfolio is a vibrant service technology company which is powered by entrepreneurship and innovation. I like to think of James Fisher as one of the oldest English startups, getting ready to scale up. and the way we do this is by combining technology with service delivery every day thousands of our employees are deployed overseas over the ocean in a harshest of environment to deliver specific services they are gifted with a keen talent for observation of our customers problem that can only be observed if you are in the field which in turn we turn into providing solution that solves those customers problem and we've demonstrated through our history as Richard mentioned earlier that we typically are fresh to market but also So we invent new businesses, new activities. So we believe we can grow and our ambition rests on a few rational. The first one is the deep critical market verticals we are in are actually increasing and accelerating supported by very powerful tailwinds within these markets we continue to compete by being original and inventing new things just as a quick reminder we are in three divisions three markets defense where we rescue and we We support life underwater through submarine rescue, commercial diving, saturation diving, and the mobility of underwater special forces. In energy, we provision services, bespoke services, for the oil field upstream industry as well as the construction and the generation of offshore wind power. Across oil and gas and offshore wind, we focus on making our customer meet increasing energy demands so that they are more efficient, safe, and more sustainable. And then maritime transport, which I like to think as midstream energy, where we provide, we supply critical petroleum products for our coastal shipping around the UK and the Caribbean but we also provide global services as a leader of ship-to-ship transfer of crude oil and LNG cargos around the world for third parties. Overall we employ a little bit over 2,000 employees across 23 countries but these employees expertise act as the voice of authority in many domains. You'll hear a few of them today. Submarine rescue, commercial diving, saturation diving, as well as the management of sound and sound abatement through our bubble curtain in offshore wind, and many others, to name a few. We see across our division, especially energy and defense, most of the future growth coming from many regions across the world and to prepare for this we are organizing the company to be more global to be closer to the customers in those faraway territories so that we can provide consistent reliable repeatable quality service to our global customers now well you know one of the component of our growth is fueled by powerful markets across the three division some of these mega trends have to do with a long-term increase in global energy demand across fossil fuel and renewable but these demands will be more and more shaped by energy security and the ability to protect supply line and consistency of delivery. The second impacting megatrend for our markets is growing geopolitical tensions alongside rapid technological change which actually change the way our customers behave and compete with an increasing layer of localization which is more and more required. And thirdly climate change which It remains a stark reality. I know it's not too popular today to talk about this, but I think climate change will actually deeply affect how we adapt as a society, but also we operate as a service company to those in our hospital environment and also how we contribute through our actions and activities to a more sustainable economy. So together, these trends are providing stronger and faster demand for our services, and especially at a time where resilience, experience, credibility, and readiness are required. If I look at particular defense, the defense spending sector is incredibly impacted by higher spending, but also a need for acceleration of supplies more and more forces procurements from very large countries are asking for commercial ready products that can be delivered quickly safely and at scale finally what we have observed is the society reliance on underwater critical infrastructure whether it's energy, cables, or otherwise, combined with increased underwater threats makes protecting those assets an imperative. And for us, this means an emerging, pretty massive opportunity to align our capabilities and experience across both energy and defense. How are we going to translate to essentially execute this growth? This is a slide you've seen at our earnings call. In practice, it is around three vectors. The first one is increase our customer intimacy. You'll hear some examples of that today, so that we can sell more value to our Tier 1 customers by methodically deepening our relationships in our home markets, giving us a strong base from which we can leverage value through our credibility and our track records in the domains we know best. The second, for example, in defense, longstanding relationship with NATO, with partner navies, such as the UK, Australia. Our examples were our track records and what we have acquired over decades of delivery makes a real difference. Now we have been codifying those relationships through the creation and the appointment of global key account managers complemented by product managers who are together the voice of authority in their domains. Both roles help drive the quality and the repeat of sales with focusing on the value chain of those large Tier 1 customers. Second, by expanding our geographical reach, we will grow sales by selling our existing portfolio of products and services to new customers, mostly in new geographies. And to give you some example of our focus, it's right now the U.S., continental Europe, and Northeast Asia, which together provide massive market opportunities for us and where we are committed and determined to approach with the one James Fisher philosophy. Finally, through innovation, this is our trademark, how we differentiate in the market, especially relevant in defense, where our competitive edge really provides critical differentiation to our customers in their ability to compete. We are talking about enhancing deployed systems, so our legacy fleets, but also being first at developing next generation of product and services. And we will show a few examples of that today. The latest example being the Stealth Multi-Role, which is our next generation combat diving It's combat and MCM diving set. So together these three engines provide vectors of growth for us and as a background to what you will hear today. Now if we talk about content as at our last earnings call we identified eight priority sub-segments which we see as potential high growth vector for us across energy and defense which will fuel our aggregate growth. Each of those sub-segments vary in maturity, some of them are well-established, like submarine rescue or diving, commercial and military diving, and where we are market leaders, where others are much more disruptive and innovative. And an example of that would be a TV platform but across those segments our ability to invest our commitment to invest in our people expertise and development as well as our technology and innovation lead will be critical ingredients of our path forward and will be the style with which we scale our position and convert the market tailwinds I talked about into revenue growth. Now zooming into defense we have four segments that we'll talk about today which are a perfect illustration where we can see an opportunity to innovate and scale at pace. So I will hand over to Richard who will go into this at more depth. Thank you.

Thank you Jean. Hi my name is Richard Devlin and I'm the managing director of James Fisher of Defence. In terms of background I have worked in the defence industry now for over 18 years. Prior to JFD I worked at BA Systems on some of the UK's most strategically important air military programs including the Eurofighter Typhoon and the F-35 projects. In seven days time on the 11th of June I will celebrate my 15 year anniversary with JFD. Throughout my time in the company I have held various positions including leading our project execution teams around the world and also leading up heading up sorry our international sales teams. I have served on our senior leadership team now for seven years and I was recently appointed as managing director on the 1st of April this year. As employee 42 all those years ago with only a footprint in the UK and Australia. I now find myself leading a fantastic international team of over 550 people who are passionate about serving our customers. In my tenure with JFD we have established home markets in Sweden, India, Singapore and now the United States. As you will hear throughout this afternoon our ambition is to grow beyond these markets into further regions around the globe and as we stand here today in Greenwich, the original home of the Royal Navy Staff Training College, it gives me an immense sense of pride to present our business to you. So James Fisher of Defence, what do we do? Well put simply we are a business that develops technology that keeps people alive under the water, and we do this in three different ways. Firstly, at one atmosphere, which is the environment that we're all living in today. In this context, we enable people to operate under the water in a controlled environment, usually in a hyperbaric chamber, so that there's no change in pressure as they go deep. In In effect, this is the inverse of sitting in an aircraft at altitude. The opposite to this is managing people at pressure. In other words, as divers go deeper, they're exposed to the changes in pressure, meaning their bodies need time to decompress as they surface. This is what we call saturation diving. And finally, we keep people alive in an open water, shallow environment where they are not subject to extreme pressure differentials and hence they can operate under the water, for example, in a tactical diving vehicle using an underwater life support system like a rebreather. In doing all this, we support the defence and commercial diving markets, delivering mission success to our customers in the harshest operating environment on the planet. Our product innovation, close customer intimacy and expert international teams allow us to provide technology leadership to enable life subsea and we've been doing this for over 40 years. We are the only company in the world within our market segments that offer a full turnkey solution from design, to manufacture, to testing, to in-water operations and a full through-life support package and we do this across five product lines or business verticals which I and the team will take you through this afternoon. This is an interesting slide. So this slide depicts our capabilities within the modern underwater battle space. The key theme across this slide is one of interoperability. In other words, the ability of equipment to operate in conjunction with each other at depth. Taking each of our products in turn, if a submarine gets into trouble when submerged, the crew will need rescued. As the number of submarines increase, so too does the need for more submarine rescue systems. Furthermore, as submarine numbers grow, so too does the requirement for ocean interface systems, which are the exit and re-entry points on the submarine for underwater vehicles and or divers to be launched and recovered from. In our submarine platforms product line, JFDE manufactures ocean interface systems which are really the link between the submarine and the outside world. For tactical diving vehicles these are usually used to project force and or protect littorial waters which submarines find hard to reach. Over and above building these vehicles, JFDE manages the safe integration of these crafts onto the submarine. And when it comes to divers, there are three main segments that we serve. Firstly, Navy divers who generally want to go deep, most likely for main countermeasures missions. Secondly, Special Forces divers who generally travel for long distances at shallow depths, usually in a tactical diving vehicle, which I'm going to now refer to as TDVs because it's a bit of a mouthful, which can be launched and recovered by a submarine as I have already mentioned. And thirdly, commercial divers who operate in saturation usually up to about 300 metres seawater, weeks at a time working to maintain and secure the energy pathways that connect modern society. On this slide, I'm going to quickly talk you through each of our five product lines. Submarine Rescue, JFD's forefather, Roger Chapman, pioneered this market following his successful rescue in 1973. As world leaders in this market, JFD have built five out of the world's six flyaway systems and developed a business model that is able to respond to a disabled submarine anywhere in the world without hesitation 24 7 365 days a year. In submarine platforms we operate across three pillars of capability. We currently have product on four classes of International Submarine. And we have been working as the design partner to BE Systems on the trilateral AUKUS Future Submarine Programme. In commercial diving, JFD designs and manufactures deep saturation dive systems, which are integrated into diving support vessels to enable complex diving operations to take place across the world's oceans in support of the energy market demands. At present, JFD has diving products and systems on board two-thirds of the world's dive support vessels. Military diving. We are the world leader in the provision and support of deep and shallow long and short endurance life support systems and services. To help bring this product line to life a little bit more you will be aware of the tactics that the Iranians have used in the Strait of Hormuz which is to lay sea mines in the water column to prevent the safe passage of commercial vessels. When it is safe to do so, it is likely that JFD's rebreathers will be used by international navies to remove the sea mines, eliminate the threat and hence allow commercial sea lanes to reopen. TDVs, we manufacture the only hybrid craft on the market that delivers a long endurance and subsurface capability providing a disruptive offering to the market. So what makes us different? For me there are four key points that I believe truly make us different. We keep equipment available at exceptionally high levels of operational readiness all the way up to 98% per annum. In the 18 years I have worked in the defence industry, I have never come across another company who can continually achieve this. Keeping equipment available is one of the main challenges that all navies face throughout the world, and for JFD this is business as usual. Secondly, we are the voice of authority in the eyes of our customers. Our customers rely on JFD's knowledge. deep technical expertise to keep their people safe and hence they are dependent on us to advise, guide and steer them as part of a collaborative working relationship via a globally deployed workforce. Thirdly, and as I mentioned earlier, we provide a full end-to-end service from design and test all the way through to manufacture, training, operations at sea and support. We are the one-stop shop with a huge amount of in-house capability. And finally, all of this is underpinned by an unrivalled pedigree, heritage and track records of delivering safe and innovative products and services to customers to ensure their mission success. And we don't do this alone. From an industry partnership point of view, we work with known defence primes and national champions. So for example, Saab in Sweden, who we have worked with for over 15 years and recently signed a memorandum of understanding with, to collaborate across the Swedish market. In Singapore, we established a joint venture company almost 15 years ago with ST Engineering to provide the world's first contractor-owned, contractor-operated submarine rescue system. In September last year we signed an MOU with Larson and Tubro with the intent to work together across India to explore opportunities in the underwater battlespace domain. And in Australia we've worked with ASC for over 20 years and more recently we signed a significant contract with PGZ in Poland in December last year who are the national shipbuilders to provide an integrated dive system on what will be the largest naval vessel in the Baltic. From a government point of view we work with the world's leading navies such as the US Navy who we've worked with for over three decades supplying submarine rescue and military diving equipment. The Indian Navy, who is the fifth largest Navy in the world, for whom we have a long-term support contract for submarine rescue services. And the Australian Navy, who we have worked with for over 20 years, supplying a variety of subsea equipment across all of our product lines. There are many more customers on the slide, but in the interest of time, I'd be very happy to take further questions on our customer landscape at the break. In the next few slides I'm going to talk through what's happening in our markets, why they are attractive and hence why we can be excited about our future. From a market dynamics perspective there is no denying that the defence market has changed even in the past 12 months. Defence is now a dining table topic. So why? In short, the threat profile has changed, leading to fragility in the rules-based order system that we have all become so accustomed to over recent decades. This has changed the behaviours of the international heavyweights, China, Russia and the US, leaving the rest of the world feeling more exposed. This has instigated long-term structural changes in defence spending globally, replacing short-term spikes with most nations now driving economic policy and hence budgets towards 3% of GDP for defence. A few enabling examples of these structural reforms are the creation of the Security Action for Europe fund, in other words the SAFE fund. EU member states are borrowing up to 150 billion euros to help increase their expenditure on common defence procurement and this fund is expected to increase to 800 billion in time. In the US the presidential budget request for financial year 27 would, if approved by Congress, implement the largest ever increase in the country's defence spending, taking the US up to 4.67% of GDP. And in the Indo-Pacific region, all mature economies such as Australia, South Korea, Japan, Taiwan and Singapore are aiming for 3% of GDP to be spent on defence by 2030. So what does this mean for JFD? As validated by our independent market advisors, Jaynes and Cognitive, the cumulative five-year TAM, SAM and SOMs show that the markets that we are in are attractive and growing. So as you can see on the screen they're indicating a TAM of $13.2 billion, a SAM of $9.2 billion, and within that they have size or SOM at $6.1 billion when assessing our capabilities, market position, and expertise in our home and growth markets. These figures demonstrate that our market segments are mature, growing and that JFD is well positioned to capture the opportunities that the global defence and commercial diving markets are creating. As further evidence to what I presented on the last slide, these graphs which have been produced by Jaynes demonstrate the increase in global defence budgets. The graph on the left shows a significant increase in defence spending globally, forecasting a 23% increase in financial years 26 and 27 with spending on naval forces to be one of the highest annual growth rates at 25%. The graph on the right shows a regional breakdown with all these regions increasing defence spending but in particular the US spiking between 26 and 27 and then remaining significantly higher in 2028 and beyond when compared to 2025 numbers. Also, if you look at Europe, genes are predicting a constant year-on-year increase as it becomes a more self-sustaining defence region. So over the next few slides I'm going to focus on how we are positioned for growth. As I have described, our markets are buoyant, our customers are spending in the areas that we serve. So why are we ready to capitalise on growth? Well, we've refocused our commercial efforts to be systematic, calculated, selective, and targeted such that we focus on higher probability conversions and quality margin growth. Our turnaround in our commercial sales teams has started to reap benefits. having increased their order book by over 40 percent in the past two years, creating momentum towards achieving the group's medium-term objectives of 10 percent margin and 15 percent rocky. We will continue to win by investing in our future with each product line now producing innovative new products and by deliberately creating a business as usual new product development culture that will ensure that we stay ahead of the competition. As we recognise the mega trends are now creating favourable tailwinds. I have talked about underwater battle space where increased funding is prolonged and structural. In energy security there is an immediate need to enhance the protection of the underwater pathways that modern societies rely on to secure the current and future energy supplies. The geopolitics of today are defined by multi-polar tensions, regional conflicts and economic competition which will continue to risk escalation into future broader military confrontations. And in response to all of this, JFD are extremely well positioned to offer disruptive technologies as part of future hybrid navies via our globally distributed centres of excellence. In other words, we have the right people in the right places around the world with the right technology to capture the market. So the markets are attractive and the megatrends are favourable. But how are we actually going to grow and scale the business? Firstly, as you will see in orange on the slide, we already have five home markets situated globally. In each of these home markets we have people, infrastructure, established supply chains and existing contract frameworks with customers. In green are the markets where we expect to accelerate growth with a distinct and targeted focus on the Indo-Pak region where we have strong relationships with growing economies like South Korea, Japan and India. In Europe we have not done historically a lot of business, however we predict strong demand for our products and services in the near term. And lastly the US, the biggest defence market by far which I'm going to touch on in two slides time. So to grow on scale we recognise that we need to invest in people, technology and capacity. From a facility perspective we have recently completed three major upgrade projects. One in Singapore where we have invested in a new military diving service hub to support the Republic of Singapore Navy and wider regional customers. And two upgrade projects in Australia where we have invested in their advanced pressure vessel manufacturing site in Newcastle and in Sydney where we have established a new military diving and hyperbaric centre of excellence. Looking forward we have plans to invest in our Swedish facility to increase the manufacturing capacity of our TDV product line. We are also investing in transformative digital and fly-by-wire technologies as we will explain later in the product line sections. And finally we are creating a reliable and robust supply chain like in India as an example where we have established a supply chain from scratch in support of our service contracts which both diversifies our supply chain and provides products quicker to our customers. And just before I hand over to Heather to talk us through the financials, we should talk about the US. The US is not only the biggest defence market in the world, but it's predicted to be one of the fastest growing. An interesting fact is that the US total defence budget is more than 10 times the combined budgets of the next 10 countries. But one of the real attractions for JFD in the US is that, interestingly, the US does not have an indigenous builder of free-swimming submarine rescue vehicles, or an indigenous builder of high-end mine countermeasures rebreathers, or an indigenous builder of tactical diving vehicles. This presents a significant opportunity for JFD. So despite its size and industrial landscape, It lacks local capability in the areas that we operate, which is why we see so much potential in this market. Having established our business in the US in the past 12 months and employed some fantastic people, some of whom are on the screen, I am pleased to say that three of our product lines have already secured contracts in the US. Those contracts are across military diving, submarine rescue, and TDVs, where we recently have completed a foreign comparative testing program with our carrier seal product, which was selected by SOCOM, so Special Forces US, as their first choice capability to test and evaluate. In addition to this, we have established our U.S. board, where we have appointed highly respected board members with distinguished defence backgrounds. Looking forward, our plans are to keep winning contracts. There are many more in the pipeline. Increase the size and capabilities of our team and establish local production capacity for our military diving and TDV products so that we can build these at scale locally in the U.S. And it now gives me great pleasure to hand over to Heather our finance and commercial director to talk you through the numbers.

Thank you Richard and good afternoon everyone. I'm Heather Nisbet and I've been at James Fisher for two years and I'm currently the Finance and Commercial Director for the Defence Division, having stepped into my new role in August last year. Before that, I was at Group Treasury and Investor Relations as well, where I led the refinancing in 24. So it's so great to see so many familiar faces in the room today. So let me start with the financials headlines. So the Defence Division's financial performance reflects a business that's not only growing but scaling with increasing discipline to improve profitability. We have started to see good growth momentum with revenue increasing to around 90 million, that's a 23% increase over a two-year period. This has mainly been driven by a TDV contract and good momentum in defense diving and the submarine platforms. The increase in revenue has now started to flow through to operating profit and with margins increasing from two percent to six percent over the last two years. In 25 we've increased our investment and innovation including the soft launch of this new multi-role rebreather and we have ensured disciplined cost control with clear milestone gatings through our investment committees. This has really been designed to validate our business case and to ensure a low risk payback profile. This is to really secure a sustainable growth for the division. So cash remains a key focus for the division as well. Our cash and working capital management is structured in a way to be working capital positive or neutral through our bids process whereby we have upfront payments and clear milestones for our contracts. This is increasingly more efficient as we look to invest for growth. So as part of our commercial strategy we have started to see good growth in our order book. This has increased to 317 million in 25. This is a 42% increase in two years. We've seen strong momentum in wards across all of our product lines. This includes strategic contracts, awards in the US, a sub-rescue and sat dive system for the Polish Navy, and a significant TDV award. Alongside this, increasing orders for defense diving sets. So this is building a more sustainable and predictable revenue base. These are not just one-off wins. They are multiple phase and repeatable opportunities that continue to expand over time. We also have sight of around 50 million programme awards under existing framework agreements. And our commercial diving product line is operating at a healthy, consistent run rate of 15 million per annum. This in turn provides a reliable revenue base. Crucially, beyond the current order book, we have strong sight of future growths. Our pipeline is strengthening and we're increasingly positioned as a preferred bidder on a number of strategic opportunities. This gives us an increase in confidence and provides us clear line of sight into sustained growth. As you can see on the slide we're targeting 30% OEM and 70% service revenue in the medium term. The combination of both OEM and service is important to a sustainable growth strategy. So let me walk you through the timeline of this. So historically during a restructuring phase the business was heavily weighted towards service revenue and while this provided short-term stability it wasn't sustainable and so the division was under invested and as a result we were not securing major OEM wins that dynamic is now fundamentally changing and in 25 we're seeing we've seen a meaningful shift with significant OEM contract wins coming through this has rebalanced the business and as we move into the next phase we expect a revenue mix to stabilize around 60% OEM and 40% service across 26 to 28. Importantly we continue to see strong OEM opportunities which we expect to grow further over this period. Revenue visibility is also improving, our total order book and program award stands at 367 million, of this around 220 million is scheduled within the next three years and if you include the commercial run rate of 15 million per annum which does exclude the growth element this equates to around 265 million of orders over that period providing strong near-term certainty. Looking to the medium term higher OEM revenues will naturally pull through additional service revenue and as a result our revenue mix evolves to our target 30% OEM and 70% service, not by reducing the OEM but by growing our service base of the back end of those OEM wins. In summary, we've moved from an unsustainable underinvested service heavy model to a balanced self-reinforcing revenue structure that supports long-term growth and stability. Moving on to margin growth. So looking forward, we can see a clear path to achieving an operating margin of 10% and then above 10%. So let's look at the steps to get there. So in 25, we were around 90 million on revenue, where we were operating at subscale. So as revenue volume increases, this will flow down into profit at higher margins. So we're estimating we could increase revenue by about 20 to 30 million without significantly increasing our cost base. We also have disciplined in our investment and capability and product development over the last two years, ensuring we focus only on the areas that generate strong returns and support long-term growth. That focus enables us to deliver premium products and services, which in turn support improved pricing and higher margin expansion. On customer excellence, we continue to stay close to our customers and develop strong global account management. Through this, we're driving order book momentum, which will translate to higher volumes and stronger revenue visibility. And lastly, we are maintaining strong commercial discipline and being selective in the opportunities that we pursue to ensure they are scalable and margin accretive. Taken together these levers give us a clear line of sight and a credible path to achieve 10% and above. So this is about building the Defence Division that is consistently delivering long-term value and so we are confident in our continued momentum to reach the group's medium term targets of 10% margin and 15% Rokey. This has really been supported by a strong order book, pipeline visibility and investing for tomorrow. So three key takeaways. We have high quality revenue coming through that's increasingly predictable and visible. Second, financial discipline is strengthening and with clear line of sight on sustainable margin progression and third we're focused on converting profit into cash managing working capital tightly and ensuring the business remains financially resilient these together gives us confidence that the defense division is not just growing but doing so in a really sustainable way thank you next up we're We're going to talk about the heartbeats of our organisation, what really makes it tick, and that is our people.

So in GFD, we have an abundance of talent in the organisation. We really do. Some of our people have the coolest jobs on the planet, whether they're diving a submarine rescue vehicle to 600 metres off the western coast of Australia, or test diving a new rebreather in sunny Wales, and that's coming from a Scotsman, or test piloting a special four C's TDV in the Swedish archipelago. If you're interested in this type of equipment then it really doesn't get much better. From a senior leadership perspective we have restructured the top team by investing in commercial experienced leaders both at the product line level and within our support functions. Later you will hear from some fine military specimens in the form of Pete and James, who have joined JFD bringing a wealth of domain knowledge, customer insight, and proven leadership skills. To grow, we recognise that our people need to grow with us, and I am particularly passionate about investing in our people by creating academic and on-the-job opportunities just like James Fisher has done for me over the years. and we are doing this cohesively under a one James Fisher approach where all three divisions can benefit from aligned well-being, talent and employee engagement initiatives that are already starting to increase retention and employee connection with the business. Switching from people to technology, over the past 24 months we have deliberately increased our investment and spend on new technology across all product lines. All product lines have active product and technology roadmaps that are managed and assessed against customer behaviours and future market trends. We have implemented product vitality KPIs across all product lines as part of a new gated new product development governance framework which provides more discipline and control whilst identifying opportunities for investment. We're also working with our corporate venture capital team to identify complementary technologies that supports James Fisher's long-term strategic direction especially in the areas of autonomy and AI. And before I hand over to the product to take you through their exciting areas here are some of the examples of technology that we have been investing in so there's already been a question on that stealth multi-role Pete is going to sweep you off your feet in the next session and so I'm certainly as I mentioned not going to steal any of his thunder but what I will say about this product is that we think it's quite special. The next generation carrier seal. I will talk about about this later but in summary we're investing in our next generation vehicle which will be a full digital variant. Biomedical monitoring. This is a really exciting area for us and this is when we're looking at the performance of the human under the water across all product lines. We have already been awarded a contract by the UK Ministry of Defence and are busily developing new technology that will monitor the health of some mariners during a real-life rescue. We do have some example equipment, medical monitoring equipment at the back that during the break James can talk you through. And last but not least, our fourth generation submarine rescue vehicle which unlocks a key market constraint and been able to transport such a vehicle via commercial aircraft, again which James will take you through later when we get to the submarine rescue product line. So that's enough from me and now it's time to start the really exciting sections and take a deep dive, excuse the pun, into each of our product lines. So without further ado it gives me great pleasure to introduce retired Royal Navy Commander James Richards who heads up submarine rescue.

Good afternoon, everyone. My name is James Richards. I'm the Head of Submarine Rescue here at JFD. By way of introduction, as Richards mentioned, I'm a Royal Naval Officer by trade. And whilst it's great to be back here in Greenwich, it slightly blows my mind that I'm allowed in here with no tie. I'm a submariner specifically with a broad range of submarine operational, technical and assurance experience. I do have the slightly dubious honor of knowing firsthand what it's like to be involved in a major submarine accident. And whilst I'm pleased to say that this experience didn't require my team to call on the services of rescue personnel, I do know what it feels like to be involved in an emergency underwater in a black tin can a long, long way from home. There are sobering examples of where my team's capabilities have been proven. Notably, it was JFD teams who located the ill-fated Indonesian submarine Nangala in 2021, the downed Air Asia flight in 2015, and more happily, it was a JFD submarine rescue team which successfully cut free the PRIS class submersible in 2005 which had become entangled in cables on the seabed. As a result, seven sailors were saved. Against that backdrop, what I can say hand on heart is that what we deliver in terms of submarine rescue is assured response to this critically important capability to the safety of life at sea. I'm proud to report that in the delivery of submarine escape and rescue services and products, we're the world's first choice supplier. Now, I appreciate that's a pretty bold statement, and I'll substantiate it by pointing out three things. Firstly, right now, we're delivering long-term service contracts with strategically significant submarine operating nations, including Norway, France, the UK, Australia, Singapore, and India. Secondly, in 2015, we were the only industry partner invited to participate in Exercise Pacific Reach, a multinational submarine escape and rescue exercise hosted by Singapore and showcased to the world's submarine operators. And thirdly, JFD is the voice of authority on operational, technical and training matters for a number of our customers, including the governments which contract JFD to operate the NATO Submarine Rescue Service. In product terms, it's worth noting that JFD built eight of the 13 untethered free-swimming submarine rescue vehicles which are in service around the world. And in fact, two of the three vehicles which were exercised to that global audience I mentioned during last year's Exercise Pacific Reach were built by JFD. So what's driving the market? In 2026, we find ourselves living in interesting times. As has already been described, the world is increasingly uncertain. And the geopolitics of the day are such that submarine operating nations are doing so in an increasingly aggressive manner and they are operating in an underwater battle space which is becoming increasingly congested. Put simply, the likelihood of a submarine incident requiring the need for rescue is increasing. increasing. We're also seeing navies and governments reducing their appetite to be left without credible solutions to submarine rescue capability requirements. In fact, that is manifesting itself in a requirement for eight new rescue systems to be tendered over the next five years. The market size is as shown on the left of this slide. It's significant for the reasons I've already mentioned and the serviceable obtainable market is indicative of JFD's alignment with strategically significant allies as our customers we make money in this market by providing highly reliable interoperable and innovative submarine rescue products and then backing those up with long-term service contracts to ensure rescue readiness is maintained whenever and wherever it's required. So what do we actually do? How do we deliver it? Why is JFD any good at it? What I really want you to take away from this slide is that it's all about assured readiness of response. Time is of the essence. What we know is that our customers, whether they are blue water or expeditionary navies with a fly-away capability for global reach, or greenwater navies with a more localized, ship-based approach, all need speed of response. Without a credible, fast response, people die. We're there to save lives at sea. So why JFD? What differentiates us from the market? Here I point firstly to our in-depth operational experience. We've been doing this for 40 years and we've used that time wisely to ensure that our customer intimacy feeds intelligent-led innovation. In JFD, our technicians understand operations and our operators know how the kit works. Secondly, if you join JFD, you join a rescue club with a breadth of resources to back up the in-depth competence I've spoken about. Our customers are able to call upon JFD to provide 24-7 assurance that on their darkest day, we can and will deliver. We believe it's this trait which has led to us out-competing defense primes for submarine rescue services. And thirdly, I draw your attention to the fact that we're the only supplier on the market it with an end-to-end capability. Sure, you can find someone else to build kit for you, but we're the only supplier of goods and services in the submarine rescue market who will design, build, test, maintain, operate, and train the capability for the customer. I'd suggest this is a tangible example of JFD practically working the engines of targeted growth that Jean and Richard outlined earlier, using the intelligence we gain from our customer intimacy to lead our innovation efforts. And here's an example of what I'm talking about. A specific example of this customer intimacy leading to intelligent innovation. Agile is our fourth generation submarine rescue system with a philosophy of no delay, no compromise, rescue ready. I talked about the need for speed of response globally via air transport. What you're looking at over on the left-hand side of the slide is essentially an underwater ambulance, a submarine rescue vehicle being loaded into a commercial aircraft. What we're hearing from our customers is that they find it hard to dedicate military aircraft to training and delivery of anything, let alone submarine rescue jfd is designing agile as a fully modular containerized system to mitigate this issue by opening up commercial aircraft as a mobility option another design driver being employed for agile is that of interoperability to ensure our customers have the peace of mind of knowing that other allied nations will be operating equipment and systems that they can operate and support a multinational collaborative submarine rescue system of systems if you like offering the maximum assurance they're looking for let me conclude by saying that james fisher defense doesn't just walk the talk the talk we walk the walk in terms of delivering on our customer intimacy and ensuring that we ensure and sorry and using that to ensure that we develop innovative products to meet the challenges of the future and if a picture paints a thousand words a video of our team down under must paint millions. I'm now going to hand back to Richard who's going to talk about submarine platforms.

Thank you James. Okay next up is the work we do on submarine platforms so we actually supply a variety of equipment on submarines around the world and we work with the big international submarine builders like BE Systems here in the UK, Hanwha Ocean in South Korea, and ASC in Australia. Our products are formed around three pillars of capability. Firstly, entry and exit of divers and or machines from the submarine, in other words, ocean interface systems. The second area is in habitat management, or in other words, the living conditions on board the submarine that ensures the crew can remain fit and healthy by breathing good quality air alongside monitoring the atmosphere for any harmful gases or toxins. And then the third area is providing the assets and equipment that the submariners need to safely escape from the submarine should they be required to do so. At present, like I mentioned earlier, we have product on board four classes of submarine and we are supporting the design of the future AUKUS submarine which is a tripartite agreement between the US, Australia and the UK. The market drivers are such that as the number of submarines increase then as James has pointed out on the slide these numbers are looking to increase by 50 in the next five years. In addition, for those submarines that are in service, they are getting older and in need of obsolescence upgrades, which creates further opportunities for JFD. Finally, once you have product on board a submarine, you can expect support revenues for the next 20 years plus. So Jaynes as our independent market advisors have described a SAM of 2.9 billion, sorry a TAM of 2.9 billion, a SAM of 2.8 billion and a SOM of 1.9 billion. In this product line we are really looking to expand our real estate on board submarines around the world. More specifically, our work on submarines is where we see real alignment between our product lines. The technology across our product lines in some way, shape or form, interacts and operates with a submarine. When this happens, submarine builders and navies look to JFD to manage these interfaces. As an example, when a submarine rescue vehicle comes to mate onto a large submarine, there are over 1,000 tonnes of downward hydrostatic pressure applied through the submersible and into the submarine's pressure hull. It is therefore vitally important that the interfaces between the bottom of the submersible and the submarine is firstly watertight and that both interfaces are strong enough to withstand the huge forces that are at play. One interesting fact that often amazes people is that when we mate onto a submarine. There are no mechanical connections. The submersible is literally stuck onto the big submarine by suction. It's a bit like when you suck the air out of a plastic bottle using your mouth and it sticks to your tongue. That's the way I describe it to my kids. And to further demonstrate the linkages between our product lines when it comes to submarines, JFD are experts in manufacturing hyperbaric chambers. These are chambers that allow humans to either operate at depth or be decompressed in following a submarine rescue mission or a saturation dive operation. When designing these chambers we have to make sure that the integrity of the chamber is safe to withstand the differences in pressure from inside to out. So why is this relevant for a submarine platform, product line? Well, GFD uses these skills to validate the integrity of a submarine's pressure hull, as a resident submariner, James, has already described it as the black tin can. Dreadnought is the UK's next generation nuclear-powered ballistic missile submarine, which will provide a continuous at-sea nuclear deterrent for the United Kingdom. And interestingly, it was JFD who performed, using your skills from across other product lines, the hull analysis work to validate the collapsed depth of the submarine by designing in deliberate blemishes to a replica hull module and then literally testing that hull module to destruction to ensure it would implode at a depth only beyond that of its design intent. Furthermore for those submarines that carry TDVs they do so with dry deck shelters. A dry deck shelter is a removable hyperbaric chamber that sits on the back of a submarine to allow divers and TDVs to easily exit and enter the submarine while it is submerged. Using our skills from other product lines, GFD can manufacture these dry deck shelters, allowing us to manage the interface between the diver, the TDV and the submarine. So in a way this product line amalgamates, unites and consolidates our technology and expertise into one area and that is onboard the submarine platform. We believe that we will be successful in growing this product line because a lot of the dual-use technology that we have already described and developed is far more advanced compared to what is already onboard submarines today. So our aim is to cross-pollinate this technology into the submarine market across both new builds and upgrade projects. And just before we finish on submarine platforms, a major opportunity for this product line is in the US, who currently has 69 active submarines, with a plan to build three per year from 2028, which at the moment is a market that we currently don't serve.

Now this is the only product line that doesn't have a video, so we're going to move swiftly on to talk about commercial diving and I'll introduce Andrew Lang Thank You Richard and good afternoon everyone I'm Andrew Lang commercial diving director at James Fisher Defence and it's my pleasure to be here today for the past 13 years I've worked across businesses that design manufacture and deploy the mission-critical systems that keep people safe at depth and today I will outline our commercial diving portfolio and how we're positioning it for growth. Central to that is our position within defense. Whether it's a commercial diver, a defense diver, or a submariner, the fundamental requirement is the same, to stay alive in the harshest environment on earth. And because that need is universal, our dual-use life support technology allows us to develop once and deploy across both commercial and defense markets, ensuring safety, improving reliability, and ultimately strengthening our competitive position. So let's take a look at the dynamics influencing the commercial diving market. As you've heard and what we're seeing globally is energy security is driving sustained offshore activity as operators look to diversify and secure new supply. And in turn this is driving increased subsea infrastructure investment across Africa, South America and Asia Pacific with a focus on developing new production capacity. Laid on top of this is an aging subsea asset base which is driving demand for inspection, maintenance, repair and decommissioning. And supporting these subsea operations is a fleet of around 58 highly specialized diving support vessels or DSVs. And this fleet is already operating at over 80% utilization added to which it's aging with around half expected to reach mid-service life by 2030. And so it's against this backdrop that the demand for our products and services is growing. Over the next five years, we forecast a TAM of 3.4 billion and a SAM of 1.5 billion. Of that, we are targeting a sum of 400 million, and we're well positioned to achieve this. As a global leader with over 40 years of experience in the design and manufacture of diving and hyperbaric systems and with our equipment operational across two-thirds of the global DSV fleet, we are firmly established as a trusted partner to our customers. Our install base is already generating 15 million pounds in annual recurring revenue and with midlife vessel upgrades and new builds ahead, we see a clear opportunity to further expand both our install base and our long-term service revenue. This growth is further supported by our portfolio of proprietary field-proven technology including complete saturation diving systems, our market-leading gas-mizer helium recovery equipment, Fathom digital communications and gas analysis systems, and of course Cobra, our compact bailout rebreather apparatus, which is the only CE-marked EN-approved deep-diving commercial bailout rebreather on the market. Importantly, these safety-critical, highly engineered systems with long qualification cycles and high-cost barriers to entry make it difficult for competitors to displace our already established position. So when we combine our 40-year history, installed base, and long-standing customer relationships, we have a strong platform for both new and recurring revenue across the full equipment lifecycle, from design through to delivery, upgrade, and support. So, as I've outlined, we operate as a global OEM and lifecycle partner to our customers, and this is enabled by our fully integrated end-to-end capability. Our testing center of excellence at the JFD-owned National Hyperbaric Center provides a unique environment to de-risk and validate our new technologies at scale. The center houses a 24-man land-based saturation diving system, which gives us the capability to simulate conditions down to 1,000 meters and altitudes of up to 55,000 feet. Also installed at the NHC is a full worker breathing test laboratory which allows us to simulate human breathing performance to depths of up to 200 meters. Together, these capabilities enable us to design, optimize, and validate our equipment to the highest regulatory and operational standards in a controlled environment before deployment. And with our technical track record and proprietary technology position, we are a trusted partner to Tier 1 contractors and emerging regional operators in a market where barriers to entry remain high. And lastly, through our targeted new product development, expansion into new markets, and supported by our capability and proprietary technology, we have a clear pathway to outgrow the market. But where we see real opportunity for major revenue growth is from the platform that supports almost all deep water diving activity, and that is the DSV. So let me briefly explain what a diving support vessel or DSV is. On the left is the Technip FMC-owned Deep Explorer. Delivered in 2016, this vessel is equipped with a JFT-built, fully automated, 24-man, DNV-certified, NORSOC-compliant saturation diving system shown on the right. The silver cylindrical chambers are installed below the deck and provide a pressurized environment where up to 24 divers live for up to 28 days. From these chambers, the divers are transferred under pressure into the diving bell, which is deployed to the seabed. And this allows them to carry out subsea operations safely before returning, still under pressure, to the chambers. Supporting the system is a fully integrated suite of life support equipment, which continuously manages and maintains the environment in which they live. So when you consider the complexity of the dive system and the critical role these vessels play offshore, it's clear why they're in such high demand and as I've mentioned with DSV utilization already above 80% chartered air rates have steadily increased as operators capitalize on the demand and with an aging fleet and the expected scrapping of several vessels the supply will only tighten further given this backdrop we expect a DSV new-build cycle to begin within the next 24 months and this is where we see the high value opportunity for some context a modern DSV takes around three to five years to build and costs around 110 to 230 million pounds with 30 to 60 million of that being the dive system. These pricing ranges ranges are heavily dependent on the specification of both the vessel and the diving system but just as important as the dive system itself it's the opportunity that exists beyond delivery. With the increased demand and aging fleet operators are extending asset life and working equipment harder which directly increases the demand for sparing, overhaul and lifecycle upgrades. And this demand plays directly into our end-to-end capability. By leveraging our installed base, proprietary technology and training capability, we're able to drive repeat high margin revenue across the full lifecycle of a DSV. So for commercial diving, our growth is driven by winning the new builds and supported by the long-term value of our installed base. And on that note, I'd like to leave you with a short video that brings to life our end-to-end commercial diving capability.

Okay, next I am going to introduce retired Commodore Mr Peter Lawton.

Good afternoon everyone. Well I was just thinking that the journey to this podium actually started 32 years ago as a midshipman on an in-service degree course here at Royal Navy College Greenwich and back then I could never have imagined that I would return to this historic and magnificent venue to brief you today. I also never imagined that I would spend 32 years in the Royal Navy at the forefront of military diving and commanding global maritime operations. In fact I can vividly remember that first operational dive on live ordnance in the pitch black, 60 metres depth, freezing cold, zero visibility, arduous and extreme. And in 2003, during the Gulf War, on board a mine hunter, HMS Grimsby in the Arabian Gulf, I remember the call from the UK Prime Minister, Tony Blair, before conducting multiple very challenging dives to locate and recover the bodies of seven of my colleagues following the horrific mid-air collision between two Royal Navy seeking helicopters. And on each of those occasions I remember the diving set I wore, a life support system that I had to trust with my life and which was critical to mission success. And while I left the military two years ago to join James Fisher Defence, I am still incredibly proud to be enabling mission success in the harshest operating environment imaginable. So it will not surprise you that I genuinely believe in what I do now. And today I want to firstly demonstrate the strength of the market opportunity. Secondly, to explain what we deliver and what differentiates us from our competitors and thirdly to introduce stealth multi-role as a significant long-term growth platform for the business. Now Richard has already told you about the increasing defence opportunities and what I can tell you is that beneath the sea surface the often unseen silent and covert military diver is increasingly playing a critical role. Clearing mines, intelligence collection, protecting critical underwater infrastructure, enabling freedom of manoeuvre for entire naval fleets, and we just think of the Strait of Hormuz now. Keeping nations safe, tactical actions with strategic impact. And to support this, we are witnessing a global and accelerating recapitalisation of military diving capability, including in our home markets. So customers are replacing their legacy platforms that deliver greater operational flexibility, improve safety and enhanced mission effectiveness, such as wanting to go deeper and stay submerged longer. And importantly for us, this trend is not short-term. It is structural and it is enduring. We have sold more than 1,800 rebreathers globally of a market share of upwards of 6,000. And over the last 40 years, we have established a reputation for our exemplary safety record, our high quality and our mission-critical products, and our integrated dive support contracts. And never forgetting that quality is our customers' safety. And this presents a significant global growth opportunity. As we look ahead, our latest market analysis identifies a serviceable, obtainable market of 700 million over the next five years. That's thousands of rebreathers globally to service the full spectrum of military diving capability, from deep mine countermeasure diving through to more shallow operations by special forces. And every diving set we sell will require some degree of support from spares, servicing, repairs and capability enhancements, plus also diver training packages and support ancillaries such as recompression chambers. And we have proudly sold more transportable recompression chambers than anyone else. And in the last two years, thanks to our expanding global service offer and continuing rebreather sales, military diving revenue has risen sharply as we ramp up for sustained global growth. So this is not simply a strong product story. It is a scalable global defence opportunity positioned in a highly specialised market with significant barriers to entry. So what do we do? Let me give you a flavour of what is happening right now across the James Fisher Defence global enterprise. In Australia, Singapore and the United Kingdom, dive technicians are building and servicing JFD diving sets. In Scotland and in Chinon, our engineers have designed and are now building a prototype air control breathing system for up to 20 Royal Navy recompression chambers. The same chambers I used as a mine clearance and bomb disposal officer. This was a contract we won last year against very stiff competition. In West Hill, Aberdeen, our technicians are building the first batch of shadow excursion combat rebreathers following a significant contract award from an overseas special forces community. This is upwards of 500 plus rebreathers. And in Wales, six trainee military divers are now into week nine of a 12-week arduous JFD-delivered diving course. As we go home this evening, they will be waiting for dark to descend before they conduct night diving to 39 metres on their own for simulated mine clearance operations. So what differentiates us? Why JFD? We don't just sell diving equipment. We provide the full spectrum of support, from training through to in-country logistics solutions, providing the highest level of availability. that's 90% and above with a scalable and in-country service if required and with JFD you get a trusted partner and provider delivering integrated military diving capability with exceptional safety standards, proven quality, operational credibility and delivery and really importantly, pride in our customer intimacy and trust. And this matters because customers are not just buying a consumer product. They are procuring mission-critical life support capability where reliability, trust and long-term support are non-negotiable. And that creates long customer relationships, recurring service revenue and high barriers to competitive displacement. And the engine behind our sustained growth is product vitality and ambition with stealth multi-role leading the charge. And while the image on the left may suggest that this rebreather gives you the ability to walk on water, that was in fact a JFD diver ahead of an externally certified dive to 30 metres. Stealth Multi-Role has been built for the world we face today and for the world we know is coming. It has leveraged more than 40 years of hard-earned expertise in military diving life support systems. It is a stealthy, compact, streamlined, lightweight, modular and adaptable system. And stealth is everything. So no telltale bubbles to reveal your position in enemy waters, and a magnetic signature 30 times lower than that of a standard paperclip to cope with the most extreme threats. It is a rebreather capable of supporting multi-mission operations, with an endurance up to 12 hours and depths exceeding 100 metres. a rebreather that can be fully electronic and software driven for the most complex missions or equally mechanically driven for more routine diving with a lower training burden and of course it has to be rugged reliable and engineered for the harshest operational environments and from a business perspective this creates long-term product vitality rather than just a short-lived equipment cycle and what our customers want and what differentiates our offering is a future proof system that is rapidly configurable and adaptable to whatever environment they face that is simple to operate and exceptionally easy to breathe from it sounds really obvious but is actually very difficult to achieve for a multi-mission set where you may be swimming in all orientations we want one system for multiple mission sets with extended durations that is lighter more streamlined and more hydrodynamic so it integrates seamlessly with diver propulsion devices and tdvs for missions up to 12 hours stealth multi-role is now certified and is ready to operate in the most extreme scenarios imaginable and in those moments the diver needs complete confidence confidence that their equipment will not fail confidence that they can complete the mission and confidence that James Fisher defense has their back and this presents huge opportunity to scale by capitalizing on aftermarket sales through multi-year contracts and by integrating diver communications telemetry systems and biomedical monitoring so stealth multi-role is not simply a remarkable capability it is one of a significant long-term growth opportunity we are already engaging with customers globally And there is considerable interest with increasing demand for demonstrations and end-user testing and validation. And we are targeting the delivery of thousands of systems into the market, supported by our broader range, offering of integrated logistics support and training. So this is about enduring customer relationships and long-term recurring revenue streams. And now to a short video to illustrate the incredible journey from concept to market ready.

Admittedly, that's a bit of a tough act to follow. This is our last product line, our tactical delivery vehicles. So, TDVs, what are they? These are the James Bond type craft that zip across the surface at 35 to 40 knots, which is very fast, and then submerge to depth such that they can carry special forces troops, so think Navy SEALs, covertly under the water. The carrier SEAL is the only craft on the market that provides a long-endurance surface and subsurface capability, and it does this by operating on a diesel engine on the surface and then converting to battery power subsurface. It is designed to carry a crew of eight special forces operatives to execute what will generally be classified missions. They are productionized, they are in service with allied nations and customers around the world, hence they are a proven capability. these products are in high demand and what is driving that demand is geopolitics meaning that countries are looking to project force with these types of vehicles and also use them to protect their litorials their shorelines and or their shore-based infrastructure as the world becomes a more uncertain place. The cumulative five-year TAM, SAM and SOM, again provided by our independent market advisors Jane's, shows that there is a significant demand in the market for this type of craft. So as you can see we have a TAM of 4.8 billion, a SAM of 3.1 billion and within that they have sized our SOM at 2.5 billion validating that TDVs will be a strategic growth driver for GFD. To date we have signed multiple contracts to supply these types of craft to allied nations around the world and this year we also signed our first 12-year support contract which to the best of my knowledge, is the first support contract to be signed by a commercial organisation for a craft of this type. Looking at the product line in a little bit more detail, you can see just how capable the craft is. It is able to deliver different types of payloads, whether that be people, stores or small to medium-sized autonomous underwater or aerial vehicles and it has a significant over-the-horizon range, meaning it can reach places covertly much faster than traditional military assets such as submarines. The platform is different because it's the only craft in the world that operates in three modes of operation. As I mentioned, surface, James Bond style. Periscope modes, where it can manage its buoyancy and trim just below the surface of the water to take pictures and or images of bad actors and feed them back to naval headquarters just like a submarine or in fully submerged mode where it is almost undetectable by modern sonars. Special forces teams use TDVs to close the littorial gap. That is the gap between blue water navy operations and the shore. This is the gap that large submarines and surface warships cannot safely operate in as they will be detected in the coastal approaches, i.e. the immediate waters that stand between them and their target. In addition, the TDV also allows the special forces divers to conserve energy rather than trying to swim these final approaches. And because the TDV contains its own built-in breathing system, the divers can safely breathe from the vehicle safeguarding the oxygen contained on the rebreather for when they pop out of the TDV to execute their mission. And on this point when JFD sells TDVs it creates an opportunity to also sell military diving rebreathers as one is needed to operate the other. In this regard we are packaging together these products to offer value to the customer and also drive more sales. Another significant advantage of a TDV is that it can operate in denied environments. For those who are perhaps not familiar with this terminology, a denied environment is an area where you can't operate freely because a hostile actor is actively trying to stop you. Think of it as enemy controlled or heavily defended territory. communications may be jammed, surveillance is everywhere, and any presence risks detection or attack. Getting in, doing something useful, whatever that may be, and getting out safely, all become difficult and dangerous. So it demands highly engineered, stealthy equipment to execute the mission and this is exactly what JFD's Carrier Seal product is designed to do. In terms of how we grow and scale this product line, we have a deliberate focus on developing technology upgrades, whether that be hardware or software, to unlock further mission profiles to defeat and outsmart the enemy. So for example, these upgrades could be additional battery payloads to allow the customer to execute extended missions. Or increase sensor packages for sophisticated intelligence gathering missions, all of which can be sold via menu-based pricing. In addition, we're exploring autonomy and AI technology such that we can develop the world's first optionally crewed vessel where the on-site command team can decide whether or not to operate the craft with the human in the loop or out of the loop in full autonomous mode which as I'm sure you'll agree is rather exciting. And just before I show you a video of the capability as this is what really brings it to life rather than me talking. As you can see Jaynes has predicted a market demand across 12 select countries of at least 200 craft. If we look beyond these countries we predict further growth over the medium term. For JFD, TDBs are one of our real strategic disruptive growth horses. They fit a sweet spot in the market between crude assets and autonomous vehicles that is currently not populated but most definitely required in future military force mixes. So to conclude, a TDV's value lies in its stealth, in its controlled signature and in its ability to deliver a fighting team precisely where they are needed. It enables clandestine insertion and extraction missions and a safe way of approaching mission targets that would compromise surface, air or large underwater assets. By extending the reach of the host platform and reducing the operators exposure during a long physically demanding transit, the TDV expands the range of feasible missions in waters that are too shallow, too monitored or too politically sensitive for conventional assets. Thank you. And I will now hand over to Zhang for the summary.

You have learned a few things or understand better what we do after this afternoon. And you'll have more opportunity to engage with the team and see some show and tells we have in the back of the room. In summary, before we go to Q&A, I'd like to recap a little bit of the equity story illustrated by GFD today. We are in large markets which experience powerful megatrends that are increasing even more and accelerating the size and the depth of those markets. We have identified in the case of GFD four sub-segments where our either market leadership and unique ability to compete through our service knowledge and technology give us a one-in-a-lifetime opportunity to raise to this incredible period we are in. Whether these are established market in transformation, such as submarine rescue or commercial diving or military diving, or whether these are emerging markets that are being created, such as TDVs, we believe that the combination of these activities we are in will allow us to leverage our credibility in the market, our voice of authority in those domains, with our appetite to invest in our people and innovate and invest in our technology in order to not only perpetuate our franchise but enhance it in this current world ahead of us. Our growing other books are early indication that we are on the right path but also points to a really promising outlook. Now, I'd like to close just with the latest illustration of what drives James Fisher. An example where our ability to combine our observation with our ability to innovate make us first to market, which is really what has been the profile of James Fisher over 180 years. In the context of underwater warfare and recent drone technology expansion that we have observed in live conflict, many offshore assets have become much more vulnerable, whether we talk about oil and gas infrastructure, merchant vessels, Navy assets, or literal critical infrastructure. Our bubble curtain team from Energy has combined our leading edge expertise in underwater noise abatement alongside our knowledge of monitoring of underwater cable for offshore wind with our expertise in underwater combat, underwater diving, underwater monitoring from JFD to come up with a solution which is tailored in combination with some long-term partners of ours, flexible but also scalable in providing a sonic shield which is quite effective in the deflection of incoming threats. We will continue we will update you actually in this emerging market as the latest example of James Fisher's at work combining our ocean presence our intelligence and ingenuity the intelligence and intuitive of a team which will continue to drive our future so thank you very much we can turn back to the back of the room and engage with our team and hear what they had to say. Thank you.