Chemring Regulatory News (CHG)

FOR IMMEDIATE RELEASE 15 MARCH 2023

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

AGM Update

Chemring issues the following update announcement ahead of the Company's Annual General Meeting taking place later today.

Current trading and outlook

Both sectors have performed in line with the Board's expectations since the beginning of the current financial year and the Board's expectations for 2023 performance are unchanged. As previously highlighted the Group's trading performance and cash generation in 2023 is expected to have a heavier weighting towards the second half due to order intake delays in 2022 as a result of the US Government's extended Continuing Resolution.

The Group continues to manage delays in customer procurements, labour availability, and other inflationary pressures including energy costs and wage inflation. Where appropriate the Group is mitigating the impact of these pressures by passing through costs and generating additional operational efficiencies where possible.

The Group remains well positioned for growth with end-markets in both sectors aligned to areas of increased customer activity. The Group continues to develop and deliver mission-critical technologies, products, and services, which our customers deploy to meet the challenges of an increasingly contested and volatile world. The international security environment is driving strong demand in areas of active cyber-defence, operational mission support and open-source intelligence ("OSINT") services, and space launch systems. Demand also continues to grow for propellant and energetic materials, and high-integrity missile sub-components.

Orders

Having started the financial year with order cover of 86% our expected 2023 revenue is now 90% (25 February 2022: 89%) covered by revenue in the period to date and the current order book, split 99% (25 February 2022: 99%) in Countermeasures & Energetics and 76% (25 February 2022: 73%) in Sensors & Information. The order book at 26 February 2023 stood at £677m (25 February 2022: £476m).

In our Sensors & Information sector, Roke has continued its positive momentum into 2023 with strong order intake across all business areas with a notable highlight being the progress made in the Roke Futures business area which has seen order intake of £24m in the last twelve months. Roke Futures delivers technology solutions to clients outside of National Security and Defence markets and is growing accounts with customers including Rolls Royce, Waygate Technologies, and Vodafone. It is also developing accounts in adjacent markets such as digital healthcare.

In the US, our sensors business received a third option quantity exercised under the sole source $99m Indefinite Delivery / Indefinite Quantity contract for the Enhanced Maritime Biological Detector program. The option value was $15.3m and will see deliveries being made in 2023 and 2024.

In the Countermeasures & Energetics sector we are seeing increasing levels of activity and demand in the propellants and energetic materials markets as customers re-evaluate their operational usage and stockpile requirements associated with traditional defence capabilities. This is particularly evident at our Scottish and Norwegian businesses, both of which have record order books, where customers are signalling a significant increase in demand in the coming years in response to the conflict in Ukraine and the evolving threat environment.

Elsewhere in the Energetics sector, our Chicago business continues to make good progress in securing new orders with commercial space launch providers, furthering our position as a leading supplier of mission critical components into the strategically important space launch and space exploration markets.

Interim results date

The Group will report its interim results for the six months ended 30 April 2023 on 6 June 2023.

- ENDS -

For further information:

Rupert Pittman Group Director of Corporate Affairs, 01794 463401

Chemring Group PLC

James McFarlane MHP Communications 020 3128 8100

Ollie Hoare

Cautionary statement

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects. Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

Notes to editors

· Chemring is a FTSE-250 global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets

· Employing approximately 2,500 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries

· Chemring is organised under two strategic product segments: Sensors & Information and Countermeasures & Energetics

· Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats

· Operating in niche markets and with strong investment in research and development ("R&D"), Chemring has the agility to rapidly react to urgent customer needs

www.chemring.com