Qinetiq Regulatory News (QQ.)

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International successes - Through the first quarter we have seen strong progress in our international markets. In Australia we achieved a first order for SPUR robots demonstrating global leverage of our capabilities from the US into Australia, in Germany we saw strong recovery in training flying hours, in Canada we signed a framework agreement to support the Canadian navy and other forces in future maritime operations development and in Belgium we won a contract with the European Space Agency to deliver and operate a new satellite to support technological innovation, de-risking and concept testing for public agencies and commercial enterprises in Europe.

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SPECTRE contract in the US - Building on the successful delivery and trials of our ISR prototype system on a Program of Record, we have won a $24m contract from the US Army to build three additional SPECTRE next generation full spectrum hyperspectral prototype sensors. SPECTRE is an ISR (intelligence, surveillance and reconnaissance) sensor system that enables multi-mission Uncrewed Aircraft Systems (UAS) and crewed aircraft to operate in parallel to other critical sensor payloads and weapons, with improved performance at a fraction of the size and weight of the sensors currently in use by the US Government. This is exciting progress for our US business, with opportunity for greater exploitation in the future.

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Formidable Shield 21 - We supported Formidable Shield, the largest live-fire Integrated Air and Missile Defence exercise in 2021 led by US Sixth Fleet and conducted by Naval Striking and Support Forces NATO. In total, 16 ships, 31 aircraft, and approximately 3,300 personnel from ten NATO nations participated in the live training event at the Hebrides range. We provided the safe environment, logistics and range control to facilitate this trial, across the maritime and air domains. A range of targets were used to test defences, including subsonic, supersonic and ballistic targets. This is an excellent example of our investment in the LTPA contract driving enhanced operational outcomes for our customers, increasing the demand for our ranges and QinetiQ being at the leading edge of safe delivery of complex events to ensure our NATO allies can defend against future threats.

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Strike Warrior 21 - We supported the Royal Navy Carrier Strike Group Strike Warrior exercise at MOD Aberporth and Hebrides ranges, with our operational training and missions system business Inzpire, supporting the overall training activity using its God's Eye View (GEV) capability. Exercise Strike Warrior involved more than 20 warships, three submarines and 150 aircraft from 11 nations and was the final test for the Carrier Strike Group before its first operational deployment. The GEV system developed by QinetiQ enabled the Royal Navy and Royal Air Force to enhance the training value from the exercise with a near real time picture of the overall exercise tracking each asset across waters off north-west Scotland by connecting sensors across the Hebrides range and RAF bases through a digital backbone.

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BATCIS contract extension - In 2018 we won a significant competitive programme to provide Private Sector client side Support to the Battlefield Tactical Communication and Information Systems (BATCIS) Delivery Team within Defence Digital (within MOD). The contract is a critical enabler to deliver the next generation of Tactical Communication and Information Systems as part of a Single Information Environment for UK armed forces. Following the strong delivery in the first three years of the programme by both QinetiQ and in collaboration with our partners (Roke, ATOS and BMT) and suppliers, we have been awarded a one year extension.

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Pension bulk annuity insurance buy-in - As reported in our 2021 Annual Report and Accounts, the Scheme completed a further bulk annuity insurance buy-in at a cost of £132m, to remove longevity risk, interest rate risk and inflation risk. This follows the buy-in in 2019, taking the de-risked element to over £800m (or more than 40% of the Scheme's £1.86bn present value liabilities, as at 31 March 2021).

John Haworth, Group Head of Investor Relations:

+44 (0) 7920 545841

Chris Barrie, Citigate Dewe Rogerson (Media enquiries):

+44 (0) 7968 727289