discoverIE Annual Report 2026

discoverIE Group plc Annual Report and Accounts for the year ended 31 March 2026

ENABLING TECHNOLOGY FOR CRITICAL APPLICATIONS

discoverIE Group plc Annual Report and Accounts for the year ended 31 March 2026

Strategic Report Highlights Chairman’s Statement Our Value Proposition

Enabling technology for critical applications – greener, more connected and secure.

02 06 07 08

Highlights Financials

Key strategic indicators

Our Investment Proposition

Group at a Glance

Group revenue

Adjusted operating margin 1

Our Strategy

Key Strategic Indicators Our Strategy in Action Our Business Model Market Overview

£443.3m £422.9m £437.0m

13.8%

FY25 FY24 FY26 FY23

14 16 18

Technology is reshaping how we generate power, move, communicate and protect critical infrastructure. As these systems become more electrified, intelligent and interconnected, the demand for highly specialised, performance-critical electronics continues to grow. At the heart of this transformation are components that are small in scale but critical in function – engineered into systems at an early stage and relied upon for their full lifecycle. This is where discoverIE operates We design and manufacture highly customised, application-specific electronics for industrial markets. Our solutions are embedded within renewable energy systems, electrified transport, medical devices and secure communications infrastructure – applications where reliability, performance and long-term continuity are essential.

We are the partner of choice for our markets, designing and building customised, niche solutions to empower global industry.

14.3%

13.1%

Strategic and Operational Review

24 34 38 40 42 57 74 79 85

£448.9m

11.5%

Financial Review

£379.2m

10.9%

FY22

Our value proposition

Our Engagement with Stakeholders

Section 172 Statement Sustainability Report Climate Analysis Report

Adjusted operating profit 1

Adjusted operating cash flow 1

▶ Read more on page 6

Risk Management

£55.5m

£61.0m £60.5m

FY25 FY24 FY26 FY23

Principal Risks and Uncertainties

£62.3m

Viability Statement

£59.2m

£57.2m

Non-financial and Sustainability Information Statement Corporate Governance Board of Directors Corporate Governance Report Audit and Risk Committee Report Nomination Committee Report

£48.6m

£51.8m

How we grow enduring value

£33.1m

£41.4m

FY22

88 90

▶ Read more on page 10

Adjusted EPS 1

Free cash flow 1

104

110 112 116

40.3p 38.7p

£36.6m

FY25 FY24 FY26 FY23

Directors’ Report

£40.4m

Directors’ Remuneration Report

36.8p

£37.0m

Statement of Directors’ Responsibilities in Respect of the Financial Statements 138 Financial Statements Independent Auditor’s Report to the Members of discoverIE Group plc 140 Consolidated Statement of Profit or Loss 150 Supplementary Statement of Profit or Loss Information 150 Consolidated Statement of Comprehensive Income 151 Consolidated Statement of Financial Position 152 Consolidated Statement of Changes in Equity 153 Consolidated Statement of Cash Flows 154 Notes to the Group Consolidated Financial Statements 155 Company Statement of Financial Position 206 Company Statement of Changes in Equity 207

35.2p

£33.0m

Aligned to structural growth markets

29.4p

£21.8m

FY22

Our purpose: To create innovative electronics that help improve the world and people’s lives. Our vision: Our vision is to be a leading innovator in electronics, internationally. Our mission: To design and manufacture innovative electronics that help our customers create ever better technical solutions around the world. We aim to achieve this through a motivated, entrepreneurial and empowered workforce that adheres to the highest ethical and quality standards.

▶ Read more on page 18

Reported operating profit

Return on capital employed 1

15.2%

£45.2m

FY25 FY24 FY26 FY23 FY22

FY25 FY24 FY26 FY23

15.9% 15.8% 15.7%

£42.4m

£31.2m

Delivering a strong strategic performance

£34.6m

14.7%

£20.9m

FY22

▶ Read more on page 24

Full year dividend per share

Carbon emission reductions 2

13.0p

68%

FY25 FY24 FY26 FY23

CY24 CY23 CY25 CY22

12.5p

59%

12.0p

47%

Shaped through sustainability ambition

11.45p

35%

10.8p

FY22

▶ Read more on page 42

Notes to the Company Financial Statements Additional Information Five-Year Record Principal Locations Financial Calendar Corporate Information

208

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▶ Scan the QR code to read our 2026 Net-Zero Report

1 “Adjusted operating profit”, “Adjusted earnings per share (“EPS”)”, “Adjusted operating margin”, “Adjusted operating cash flow”, “Free cash flow” and “Return on capital employed” are non-IFRS financial measures defined in note 6 of the Group consolidated Financial Statements. 2 Carbon emissions are measured on a calendar year basis, e.g. CY2022 shown under FY2022/23. Our target is for an absolute Scope 1 & 2 carbon emissions reduction of 65% by CY2025 from a CY2021 base, a 90% Scope 1 & 2 reduction by CY2030 and net-zero across the value chain by CY2040.

210 211 212 212

Annual Report and Accounts for the year ended 31 March 2026

CHAIRMAN’S STATEMENT

The Group continues to demonstrate the resilience and quality of its business model, underpinned by a clear strategy, consistent capital allocation, and strong execution. This provides a strong foundation for delivering sustainable long-term value for shareholders.”

Bruce Thompson Chairman

This year’s results reflect a robust performance despite market challenges. A return to organic sales growth together with acquisition contributions have helped deliver further growth in operating profits and earnings per share. Once again, the high quality, resilient nature of the Group’s earnings, along with its capital-light model, has delivered excellent cash flow.

equipment manufacturers (“OEMs”). Last year, security and defence markets, where demand is accelerating globally, were added to the Group’s target markets. This has increased the Group’s total addressable market to over $30bn, providing significant opportunities for growth. Acquisitions are a key element of the Group’s compounding growth strategy. Since 2011, the Group has acquired 30 specialised electronic design and manufacturing businesses which have enhanced value and operating margins and have been integrated to achieve efficiencies and drive growth. discoverIE has a disciplined approach to acquisitions and has many opportunities to grow inorganically in a highly fragmented market. The Group’s capital-light model generates strong cash flows which management reinvests into accelerating the strategy and delivering further value creation for Shareholders. Acquisitions In the last six months, the Group completed two acquisitions and announced a third, for a total consideration of £95m, all of which are accretive to both adjusted earnings and operating margins. Trival Antene d.o.o. (“Trival”), a Slovenian-based designer and manufacturer of communication antennae and masts for defence applications was acquired in April 2026 and Keymat Technology Ltd trading under the name Storm Interface (“Storm”), was acquired in December 2025. The businesses and ongoing management teams are settling into the Group operating clusters as integration takes place and we expect to generate new commercial opportunities for growth as part of the larger Group. We welcome the employees of these businesses into the Group and look forward to working with them.

Additionally, in May we announced the acquisition, subject to regulatory approval, of 3Gmetalworx (“3G”), a North American designer and manufacturer of electromagnetic shielding and thermal management products, further strengthening the Group’s presence in the region and the aerospace & defence market. Dividend and capital allocation The Board is recommending a 4% (0.35 pence) increase in the final dividend to 8.95 pence per share, giving a 4% increase in the full year dividend per share to 13.0 pence (FY 2024/25: 12.5 pence) and an adjusted earnings cover of 3.1 times (FY 2024/25: 3.1 times). The final dividend is payable on 31 July 2026 to Shareholders registered on 26 June 2026 and the final date for Dividend Reinvestment Plan (“DRIP”) elections will be 10 July 2026. The Board believes in maintaining a progressive dividend policy along with a long-term dividend cover of over three times earnings on an adjusted basis. This approach, along with the continued development of the Group, will enable funding of both dividend growth and a higher level of investment in acquisitions from internally generated resources. Share buybacks will be considered if the Group has surplus cash. Currently, the fragmented international market, in which we operate, provides ample opportunity for accretive acquisitions with excellent growth prospects and the potential for high returns, as our recent acquisitions illustrate. As such, our capital is currently deployed in this direction. It is reviewed periodically.

The Group has seen a return to organic sales and orders growth with an improving trend through the year. In response to this positive momentum, the Group has invested in additional operating, sales and engineering capacity, building additional agility and supporting future growth. The Group continued to make excellent progress operationally, generating efficiencies that partly come from organising the businesses into clusters, thereby sharing resources and know-how. These productivity gains have been supplemented with further good progress on the acquisition front. Strategy The Group’s strategy remains consistent and underpins a track record of delivering compounding growth for more than fifteen years. The strategy delivers very resilient and growing profitability, avoiding sharp cyclical movements and maintaining earnings growth by virtue of its flexible production cost base. The Group designs and manufactures high-quality components, created to meet customers’ unique requirements, which generate secure, long-term revenues. Our international, decentralised business model retains an entrepreneurial mindset close to its customers, reacting quickly to their needs with an efficient supply chain. Manufacturing is localised in response to opportunities and trading conditions. To deliver consistent, long-term growth, the Group focuses on structurally growing markets where there is an essential need for our products from major international original

Group revenue £443.3m (FY 2024/25: £422.9m)

Adjusted operating profit £61.0m (FY 2024/25: £60.5m)

Adjusted EPS 40.3p (FY 2024/25: 38.7p)

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

CHAIRMAN’S STATEMENT CONTINUED

Full-year dividend per share 13.0p (FY 2024/25: 12.5p)

The Group continues to make good progress on implementing its net-zero plan. Over the past four years, it has reduced Scope 1 and 2 carbon emissions by 68% versus the CY2021 baseline, exceeding its CY2025 target of 65% and paving the way to achieve net-zero Scope 1 and 2 emissions by 2030. The Group also advanced towards its CY 2030 goal of 100% clean electricity, sourcing 85% of electricity from zero-emission sources in CY2025. A summary on our progress to date, and future carbon emission reduction plans, can be found in our updated ‘Road to Net-Zero Emissions 2026’ publication, which can be found on our website at www.discoverieplc.com/sustainability. During the year, the Group reviewed its ESG strategy to ensure continued alignment with evolving regulatory requirements and the Group’s strategic priorities. Following this review, the Group reaffirmed its focus on Planet, People, and Products. Please see this year’s Sustainability Report on pages 42 to 73 for more details. The Group remains committed to being a socially responsible employer, upholding the highest ethical standards, maintaining strong employee relations, and increasing diversity at all levels of the business. Building on the adoption of a revised Group Health and Safety Policy, and an increased focus on safety over the last two years, the reported number of lost time incidents fell by 35% year-on- year, and the lost time incident frequency rate reduced by one third compared to FY 2024/25. Summary The Group is building a high quality electronics compounding business that continues to deliver good results through all stages of the economic cycle. Confidence in the Group’s ability to sustain this is supported by a strong pipeline of organic and inorganic opportunities in attractive markets, further supporting our compounding growth profile. The market remains highly fragmented, with significant scope to build further capability and extend geographic reach through disciplined, accretive acquisitions. The Board is excited by the opportunities and retains a high- quality workforce, delivering essential products for our customers, growing long-term profits and earnings for our Shareholders, and contributing to the creation of a sustainable environment. The Group is well positioned for the future.

Total shareholder return 267% (FY 2015/16 - FY 2025/26)

Board effectiveness A regular external review of effectiveness is helpful in maintaining a high-performing Board. This year, a review confirmed that the Board and its Committees operate effectively, with Directors demonstrating strong commitment and constructive challenge. Whilst all Directors viewed the Board as continuing to function well and to a high level, there are always opportunities for us to improve. The actions identified through this review inform the way we shape the Board agendas, ensuring it remains responsive to the needs of the Group and its stakeholders. Employees and culture On behalf of the Board, I would like to thank everybody at discoverIE for their sustained dedication, hard work, initiative and support. The Group comprises approximately 4,600 employees in 21 countries delivering essential components around the world. By adopting an entrepreneurial and decentralised operating environment, together with rigorous planning, controls and investment, the Group has created an ambitious and successful culture. We aim to maintain a culture across the Group that: ■ is entrepreneurial ■ is performance driven ■ enables decision-making close to the customer through a decentralised structure ■ enables open, constructive communication with a willingness to listen ■ treats everybody equally and recognises the importance of diversity ■ is honest, reliable, trusting and non-political Sustainability and positive impact In May 2025, the Group’s greenhouse gas (“GHG”) emissions reduction targets were validated and approved by the Science Based Targets initiative (“SBTi”). The Group is committed to achieving net-zero GHG emissions across its value chain by 2040, supported by a clear transition plan.

Bruce Thompson Chairman

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

OUR VALUE PROPOSITION

OUR INVESTMENT PROPOSITION

The trusted technical partner for our customers

Quality compounding growth for our investors

Structural growth markets Increasing electronics content and the electrification of products and processes continue to drive long-term demand for electronic components. We focus on five structurally attractive end markets that are aligned to global megatrends and the UN Sustainable Development Goals. Further detail on these megatrends is set out on pages 18 to 23. High barriers to entry and substitution Our products are highly customised, application- specific and designed into customers’ systems at an early stage. These mission-critical components are technically complex and regulated, and whilst a small part of total system cost, replacing them would require costly redesign, re-testing and re- certification, which introduce cost, risk and delay. This is why we are often the single source for the majority of the products we provide. Combined with long product lifecycles, deep engineering expertise and long-standing customer relationships, this results in very low substitution risk and strong customer retention. Strong financials discoverIE has a proven track record of delivering sustainable, profitable growth and continuous margin improvement. A robust balance sheet, with gearing broadly in line with the Group’s stated range of 1.5x – 2.0x, together with excellent cash generation, underpins financial flexibility and supports further value-enhancing acquisitions. Learn more about our financial performance on pages 34 to 37. Proven strategy for growth Our strategy is to deliver organic growth well ahead of GDP through the economic cycle by focusing on structural growth markets and an expanding, differentiated product offering. This is complemented by earnings- and margin-enhancing acquisitions, underpinned by a disciplined capital allocation framework. We have a proven track record of delivering against our strategic and financial objectives. Learn more about our Strategy on pages 10 to 15. Disciplined capital allocation We apply a disciplined and consistent capital allocation framework focused on maximising long-term Shareholder value. Capital is allocated to support organic investment, complemented by value-enhancing acquisitions that strengthen our technical capabilities and market positions. A strong balance sheet underpins this approach, whilst progressive dividends reflect confidence in the Group’s cash generation and long-term outlook.

Projected growth of industrial electronics market 1 5.6% p.a. Target markets: Renewable energy, Transportation, Medical, Security and Industrial & Connectivity represent 79% of Group sales in FY 2025/26

An electronics compounder – why invest in discoverIE discoverIE is an electronics compounder, creating long-term shareholder value by owning and developing highly differentiated, engineering-led businesses with strong market positions and repeat revenues. Our customised, application- specific components are designed into customers’

discoverIE’s competitive advantage is rooted in deep engineering expertise, application knowledge and the ability to co-develop specialised solutions for highly demanding environments. We operate in the custom industrial electronics market, which is highly fragmented, with many small and subscale local operators focused on narrow technology niches. What differentiates discoverIE is our breadth and depth of engineering capability, which enables us to engage with customers at the earliest stages of their product development. By working closely with customers during the design phase, we develop critical components optimised for performance, reliability, regulatory requirements and specific operating environments.

Once designed in, our products become an integral part of customers’ systems. Replacing them would require redesign, re-testing and re-certification, introducing cost, delay and operational risk that customers seek to avoid. Just as importantly, customers operating in regulated and mission-critical markets particularly value our technical capability, compliance expertise, and long- term supply commitment. Combined with consistent quality and long product lifecycles, this reinforces discoverIE’s position as a trusted technical partner and supports high customer retention, repeat revenues and pricing resilience. Our business model benefits from several structural barriers that limit substitution and support long-term customer relationships.

Longest customer relationship

30+ years Long-standing customer relationships and stable, repeat revenue

systems, resulting in high barriers to entry,

1 Cognitive Market Research: Industrial Electronics Market Report 2025. 2 Continuing operations only, i.e. excluding the disposals of Acal BFi and Vertec SA in 2022 and the Santon solar business in 2024. 3 Compound Annual Growth Rate. 4 Free cash flow conversion is defined as net cash flow before dividend payments, net proceeds from equity fund raising, acquisition costs and business disposal proceeds divided by adjusted profit after tax. 5 Return on capital employed and return on tangible capital employed are defined in note 6 of the Group consolidated Financial Statements. low substitution risk and strong customer retention. Strong cash generation, disciplined capital allocation, and reinvestment in organic growth and value- enhancing acquisitions enable the Group to compound earnings and returns over time.

Niche, high-performance solutions: limited availability of equivalent alternatives

Adjusted operating profit growth 2 of 15% CAGR 3 from FY2021–FY2026 Free cash flow conversion 4 of 101% on average from FY2021-FY2026

High switching costs: redesign, re-testing, and re-certification introduce cost, risk and delay

Mission-critical applications: prioritising reliability and performance

THE

Early design engagement: embedded in

Long-term supply assurance: products designed for long lifecycles and continuity

Revenue growth of 8% CAGR from FY2021–FY2026

MOAT

customers’ product development cycles

Strong engineering relationships: technical support and application expertise

Application-led design: we engineer solutions around customer requirements

Return on capital employed 5 of 15.3% on average from FY2021–FY2026 Return on tangible capital employed 5 of 50.6% on average from FY2024–FY2026

r e

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

GROUP AT A GLANCE

discoverIE is an international specialist electronics group, designing and manufacturing customised, application-specific components for industrial use.

1 Sensing and Connectivity (“S&C”)

UK – 18% Nordics – 12% Rest of Europe – 42%

■ Electronics for wireless transmission, fibre optic and cable connection, electromagnetic shielding, and sensing components for measuring movement, temperature, pressure, position, force and load ■ Consists of two operating units, which are divided into four technology clusters and four standalone businesses ■ Operates across ten countries with 18 manufacturing sites Sensing ■ Variohm Eurosensor ■ Burster ■ CPI ■ Limitor ■ Magnasphere ■ Phoenix America ■ Positek Optical filter & Connectors ■ Foss ■ IKN Enclosures & Cabling ■ CDT ■ Contour Stortech RF & Wireless ■ 2J Antennas ■ Antenova ■ Trival Antene Standalone ■ Hivolt Capacitors ■ MTC ■ Electronics for power conversion and switching, X-ray detection, signal conditioning, monitoring, human-machine interface (“HMI”) controls and embedded computing ■ Consists of two operating units, which are divided into three technology clusters and two standalone businesses ■ Operates across 16 countries with 23 manufacturing sites Magnetics ■ Santon ■ Silvertel

Revenue by geography

N. America – 20% Asia & ROW – 8%

Through a global network of engineering‑led businesses, we deliver differentiated, mission‑critical solutions to original equipment manufacturer (“OEM”) customers worldwide. Deep technical expertise, close customer collaboration and a global manufacturing footprint enable us to deliver ever better, reliable solutions that meet customers’ specific needs.

Adjusted operating profit

Revenue growth 1

Revenue

£176.3m

FY22 FY23 FY24 FY25 FY26

£162.1m

£155.9m £156.4m

M&C £267.0m S&C £176.3m

M&C £41.7m S&C £31.4m

£134.4m

1 Silvertel was transferred from M&C to S&C and Sens-Tech was transferred from S&C to M&C in FY26. Figures for all years have been restated.

Revenue by geography (%)

UK 10%

Nordics 17%

Asia & Rest of World 15%

M&C sales representative S&C sales representative M&C manufacturing site S&C manufacturing site

2 Magnetics and Controls (“M&C”)

UK – 5% Nordics – 20% Rest of Europe – 30% N. America – 25% Asia & ROW – 20%

Revenue by geography

Revenue growth 1

Embedded computing ■ Hectronic ■ Beacon

£000.0m £267.0m £260.8m

FY22 FY23 FY24 FY25 FY26

■ Noratel ■ Shape ■ Myrra ■ Flux

£281.1m £292.5m

EmbeddedWorks ■ Diamond Technology

£244.8m

HMI ■ Cursor Controls ■ Storm Interface

Standalone ■ Sens-Tech ■ Vertec

1 Silvertel was transferred from M&C to S&C and Sens-Tech was transferred from S&C to M&C in FY26. Figures for all years have been restated.

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Rest of Europe 35%

North America 23%

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

OUR STRATEGY

KEY STRATEGIC INDICATORS

A Sales growth

B Adjusted operating margin

C Adjusted earnings per share growth

The strength of our decentralised, engineering-led model lies in its ability to combine local agility with Group scale, enabling our businesses to deliver differentiated solutions and respond to customers’ needs quickly while driving operational efficiencies. It positions us well to deliver sustained organic and acquisition-led growth in structurally attractive markets.”

Target 17%

Target >10%

Target Well ahead of GDP

CER

13.8%

FY25 FY24 FY26 FY23

5% 5%

(2%)

14.3%

13.1%

20%

15%

11.5%

31%

28%

10.9%

FY22

Organic

Commentary Adjusted operating margin was 0.5 ppts lower than last year due to increased investment in engineering and sales capacity and additional manufacturing capacity to support future growth. Since FY14, adjusted operating margin has increased by 10 ppts with approximately half coming from organic improvement and half from higher margin acquisitions.

Commentary Following a return to organic sales growth and with operational investment to support future growth, adjusted operating profit for the year increased by 1% at constant exchange rates (“CER”), with adjusted EPS increasing by 4%. In total, the Group has grown its adjusted EPS by 14% CAGR over the past 10 years.

FY25 FY24 FY26 FY23

Nick Jefferies Group Chief Executive

(7%)

(1%)

10%

Our strategic context The global market for non-semiconductor-related electronic components is valued at approximately $300 billion 1 . Within this, we operate in a niche segment: custom-designed industrial electronics. The total serviceable available market of industrial electronic components is estimated at around $30 billion 1 and is growing steadily at 5–6% per year 1 . This market is dominated by custom-made components. The low-volume, high-mix nature of these products offers limited advantage to companies focused on standard components. As a result, the market remains highly fragmented, with many small, subscale local operators and relatively few large-scale players. This fragmentation represents significant opportunities for discoverIE to grow, both organically and through acquisitions. Non-semiconductor-related electronic components market estimated at $300bn

Our strategic aim Our goal is to grow our presence in custom electronics by focusing on markets with sustained, long-term growth. These markets are underpinned by megatrends, such as digitalisation, decarbonisation, heightened security requirements, and the increasing electronic content of industrial systems. These are the sectors where our products are essential and demand is rising. Our strategy aligns our portfolio of businesses with these market dynamics. By leveraging efficiencies and synergies across our business clusters, we unlock greater value and accelerate growth. We will deliver this strategy through a motivated, entrepreneurial and empowered workforce, operating to the highest ethical and quality standards. Our strategic priorities Our strategy centres on growing organically and through acquisitions, whilst generating efficiencies and reducing environmental impact. This approach has remained more or less the same and has proven to be effective over the years. We remain committed to it, with a clear focus on the four core strategic priorities:

18%

FY22

Commentary Sales growth resumed as customers’ order patterns and inventory levels normalised. Over the last decade, sales have grown by c.5% CAGR organically. D Cash conversion

E Return on capital employed

F Carbon emissions reduction

Target >85%

Target >15%

Target 65%

Adjusted operating cash flow conversion

15.2%

91%

68%

FY25 FY24 FY26 FY23 FY22

CY24 CY23 CY25 CY22

15.9% 15.8% 15.7%

103% 103%

59%

47%

Total serviceable available market for industrial electronic components: c.$30bn p.a. ▪ Highly fragmented ▪ Many small, subscale operators ▪ Differentiated, application-specific products ▪ Typically custom-designed

94%

35%

14.7%

80%

Free cash flow conversion

Commentary ROCE for the year was slightly below last year but above our target. The rate of Group ROCE improvement is tempered by acquisitions in the short term, but is expected to benefit from their contribution over the longer term as their additional growth compounds. We acquire businesses with long-term growth prospects that are expected to generate high returns over time. For example, the businesses acquired up to FY 2017/18 generated 28% ROCE this year. We expect this to continue and for acquisitions made more recently to grow similarly.

Commentary Our medium-term target was a 65% absolute reduction in Scope 1 and 2 emissions in CY2025 versus the CY2021 baseline. In CY2025, we exceeded this target, reducing Scope 1 and 2 emissions by 68%, paving the way to net-zero Scope 1 and 2 emissions by CY2030. This reduction was achieved primarily by switching to clean or renewable electricity. 85% of our electricity consumption now comes from renewable or clean sources.

▪ Quality and performance over price ▪ Typically ordered in small batches

Company’s estimates

92%

FY25 FY24 FY26 FY23

106%

Grow sales well ahead of GDP

102%

95%

Acquire highly differentiated businesses

77%

FY22

Commentary In the past 10 years, both adjusted

Generate efficiencies

Standard components

operating cash and free cash conversions have been consistently strong, averaging around 100% through-cycle, reflecting low capital expenditure requirements and efficient working capital.

Reduce environmental impact

▶ Read more about our strategic pillars on pages 12 to 13

Volume

High

Low

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

OUR STRATEGY CONTINUED

Key strategic indicators A Sales growth B

Risks 1

Adjusted operating margin Return on capital employed

C Adjusted EPS growth

6 Supply chain resilience

7 Technology,

Market, geopolitical and trade environment

2 Business

3 Climate-

4 Cyber security and digital resilience

5 Customer

innovation and product relevance

acquisition under- performance

related risks

demand, key customer and end-market risk

F Carbon emissions reduction

D Cash conversion

11 Financial

8 Major business disruption

9 Loss of key personnel

10 Product

12 Liquidity and financing

13 Foreign currency

14 Legal, regulatory, and compliance

quality and liability

Controls and Reporting

Grow sales well ahead of GDP

Acquire high-quality businesses

Generate efficiencies

Reduce environmental impact

We aim to grow sales well ahead of GDP through the economic cycle by focusing on sustainable, structural growth markets, namely renewable energy, transportation, medical, security, and industrial & connectivity – each of which is projected to grow faster than global GDP. Learn more about the growth drivers for these markets on pages 22 to 23. Being in the right markets is only part of the equation. We drive sales growth by focusing on two areas: product innovation and commercial discipline. On the innovation front, we direct our engineering time towards developing differentiated products built on commercially proven technologies to maximise return on investment. Our commercial discipline is reflected in how we manage our design pipeline. We are selective, focusing on design opportunities that demand unique, value-added solutions and that offer long-term profitable revenue potential. These quality design wins translate into consistent, high-margin growth over time. Progress to date The industrial sector experienced a prolonged and steep destocking period between 2023 and 2025 as the pandemic-induced inventory surpluses unwound. Although destocking in most of the end markets ended in the second half of 2025, demand recovery has been slow due to the uncertainty around the US tariffs introduced in April 2025. In FY 2025/26, Group sales increased by 5% CER and 2% organically. Despite the temporary headwinds, our through-cycle organic growth in the past ten years, averaging 4% per annum, remains well ahead of the GDP growth rate in our core markets of developed economies.

Acquisition is an essential part of our growth strategy. The niche, customised electronic components market is highly fragmented, offering opportunities for consolidation and value creation. We target businesses that embody the core characteristics we define as the discoverIE DNA. These include: ■ Design & manufacture of electronic components, modules or systems ■ Differentiated, value-added products and solutions ■ Supplying original equipment manufacturers ■ Long-life products with repeat revenues ■ Operating in markets with excellent growth prospects ■ Strong cash generation and capital-light business models ■ Ambitious, capable management with entrepreneurial spirit We have a well-established approach to acquisitions and portfolio management. By taking a long-term approach to creating compounding organic growth in acquired businesses, as well as actively managing the overall portfolio, the Group consistently generates substantial value. Progress to date Since our first design and manufacture acquisition in 2011, we have invested over £550m in 30 acquisitions, over a quarter of which have taken place in the past three years alone. Group sales have grown from £10m in FY 2009/10 to £443m today. Our strong track record in acquisitions stems both from identifying the right businesses and our ability to enhance their performance over time. This is evident in the consistent return on capital employed. Between FY 2020/21 and FY 2025/26, the Group delivered on average 15.3% ROCE.

We achieve efficiencies in three areas: pricing, manufacturing and operating leverage.

We received approval for our near and long-term science- based emissions reduction targets from the SBTi in May 2025: ■ discoverIE Group plc commits to reduce absolute Scope 1 and 2 GHG emissions by 90% by 2030 from a 2021 base year. ■ discoverIE Group plc commits to reach net-zero greenhouse gas emissions across the value chain by 2040. Our Scope 1 and 2 net-zero strategy focuses on four primary sources of emissions within the Group: electricity, natural gas, company vehicles, and refrigerants. We had a medium- term target to reduce absolute emissions by 65% by the end of CY2025 compared to the CY2021 baseline. An updated transition plan has been published for our emissions across the value chain for Scopes 1, 2 and 3. Progress to date Five years into our net-zero plan, we exceeded our medium- term target by reducing Scope 1 and 2 emissions by 68% in CY2025 versus the CY2021 baseline. This reduction was driven primarily by switching to clean or renewable electricity, including installing solar panels at sites where economically feasible, implementing energy-efficiency measures, and deploying heat pumps where appropriate. 85% of our electricity consumption now comes from renewable or clean sources. We are also accelerating the transition of our vehicle fleet away from fossil fuels. Over half (58%) of our company cars are now electric or hybrid. Natural gas is now our largest emissions source, representing 35% of total CY2025 emissions. In March 2025, we approved a plan to replace gas heating in Poland, one of our largest natural gas-consuming sites. We are also evaluating further measures to reduce emissions from natural gas and refrigerants.

Pricing for value – Our value-based pricing strategy is built on the product differentiation and substantial value we provide. Whether developing bespoke solutions for unique applications or improving existing ones for broader use, our technical expertise and know-how enable customers to achieve their desired outcomes. This value add is increasingly reflected in our rising contribution margins. Manufacturing efficiencies – Many of our acquisitions bring manufacturing capabilities into the Group. With over 40 production facilities worldwide, we continuously optimise our manufacturing footprint. This includes consolidating sites and sharing capacity in similar locations, relocating production to achieve cost or volume efficiencies, or to position manufacturing closer to customers to improve responsiveness and cost-effectiveness. Operating leverage – As the Group grows, we maintain a disciplined approach to cost management through phased investment and strategic resource allocation. Our clustering model also makes it easier to identify synergies. Learn more about clustering on pages 16 and 17. As scale increases, our drop-through rate will continue to rise, reflecting strong operating leverage. Progress to date In FY 2025/26, following two years of no growth amidst industrial destocking, we resumed investment to support anticipated growth following the end of destocking, leading to higher operational costs. Adjusted operating margin was 0.5ppts lower compared to the previous year. Prior to that, we delivered 15 years of consecutive growth in our operating margin, increasing from break-even in FY 2009/10 to 14.3% in FY 2024/25. These gains were driven primarily by organic improvement. In the past ten years, we have consistently met or exceeded our adjusted operating margin targets, which have been raised five times during the same period. Adjusted operating margin

Organic sales growth

Acquisition geography

Scope 1 and 2 emissions reduction

Target 17%

10000

-26%

Target 13.5%

8,756

14.3

18%

13.8

13.1

8000

-18%

Target 12.5%

11.5

10.9

11%

Target 8.5%

10.2

10%

(2,296)

6000

-14%

Target 7%

8.0

-10%

(1,575)

7.0

4000

6.3

5.9

5.7

2,804

(1,199)

4.9

(1%)

(882)

(4%)

2000

-5

(7%)

-10

CY25

CY21

CY22

CY23

CY24

CY25

FY26 FY25

FY15

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

FY26 FY21 FY22 FY23 FY24 FY25 FY17 FY18 FY19 FY20

FY16

Link to Risk 1

Link to Risk 1 4 5 7 8

Link to Risk 2 5 8 10 11 13

Link to Risk 1

Link to KSI A B E F

Link to KSI A

Link to KSI B C D E F

Link to KSI F

2 10 12

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

STRATEGY IN ACTION

Case Study

Driving organic growth through technology collaboration

A marine electronics customer was looking to upgrade its fish finder module. It required a compact, saltwater-proof and vibration-resistant design. Additionally, the new module needed to be software- compatible with the company’s existing system.

Storm Interface

Trival Antene

Our key competencies complement each other very well. We are also pleased that Hectronic and Cursor Controls operate similarly and share the same type of mindset. Communication between the two companies has been almost like between two departments.” meet the requirements. This approach created development inefficiencies and integration risk. By leveraging capabilities across the Group, Cursor Controls and Hectronic combined their expertise to deliver an integrated solution. Cursor Controls provided the rugged human–machine interface hardware, whilst Hectronic developed a customised embedded computing sub-system. The customer managed multiple vendors for each of the hardware and software separately because there was no supplier that had both the hardware and software capabilities to

The result was a robust joystick controller module meeting global certification requirements, simplifying development and improving system reliability. This project demonstrates our strategy of driving organic growth through cross-business collaboration, increasing customer value by combining specialist technologies and strengthening long-term customer relationships.

Strengthening specialist human–machine interface capability in regulated and industrial markets Acquired in December 2025, Storm Interface (“Storm”), also known as “Keymat Technology”, is a specialist designer and manufacturer of secure, rugged human–machine interface (“HMI”) devices for use in demanding and often unattended environments. The acquisition is aligned with our strategy to grow our presence in regulated and industrial applications. Storm’s products are typically designed into long- life systems such as self-service kiosks, access control and industrial control panels, where reliability, durability and compliance are critical. A key differentiator of Storm is its portfolio of assistive technology products, designed to support inclusive access for users with visual or mobility impairments. Selected products are recognised under the Royal National Institute of Blind People’s “RNIB Tried and Tested” programme. Increasing regulatory requirements, including the European Accessibility Act (“EAA”) and the Americans with Disabilities Act (“ADA”), are driving sustained demand for compliant input devices across public and commercial infrastructure, underpinning long-term growth. Storm now forms part of the Human–Machine Interface (“HMI”) cluster, alongside Cursor Controls, within the Controls operating unit. The acquisition demonstrates our disciplined approach to M&A, acquiring a niche, value-added business with strong differentiation, long product lifecycles and clear opportunities for organic growth.

Increasing exposure to the security and defence market

Trival Antene (“Trival”) is the Group’s first defence-related acquisition since announcing our entry into the security market in September 2024 and represents an initial step in increasing the Group’s exposure to the security and defence markets against a backdrop of rising geopolitical tensions. Founded in 1965 and headquartered in Mengeš, Slovenia, Trival designs and manufactures communications antennas and portable mast solutions for defence and professional communications applications. Its products are primarily used in land-based defence applications including handheld, manpack, mobile and fixed radio communication systems. The acquisition aligns with our strategy as it: ■ Supports the Group’s expansion into the security and defence market ■ Increases exposure to structural growth driven by defence modernisation and geopolitical uncertainty ■ Builds on existing RF and wireless capabilities within the Group ■ Supplies mission-critical components with high technical barriers to entry Trival sells into over 70 countries, with an established international customer base and proven sales channels, from which other Group businesses can also benefit. Completed on 1 April 2026, Trival is being integrated into the RF & Wireless cluster within the Connectivity operating unit, which enhances the Group’s antenna and RF offering across industrial, security and defence applications.

Jason Roberts Head of Engineering Cursor Controls

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

OUR BUSINESS MODEL: HOW WE CREATE ENDURING VALUE

Our business model is simple. We design and manufacture niche, customised electronic components for industrial original equipment manufacturers (“OEMs”) operating in growth markets.

We add value by providing our customers with an end-to-end solution for critical components. By acting as an extension of our customers’ engineering teams, we help them create ever-better solutions and guarantee a reliable, long-term supply of the components. This business model is resilient, proven by the Group’s robust and consistent financial track record.

Our resources and key enablers

Our core activities

Sustainable approach

How we do it differently

The value we create

Our people Many of our c.4,600 colleagues 1 worldwide are long‑serving, providing continuity, deep technical expertise and trusted customer relationships. This stability underpins long‑term relationships and repeat business. We encourage local employment and talent development so teams have a deep understanding of the markets and customers they serve. Our expertise For over three decades, we have built deep expertise and technical know‑how in specialist electronics. Teams of electronic, mechanical and software engineers have strong knowledge of core technologies and experience across a wide range of applications and end markets. This breadth and depth enable close customer collaboration and the development of innovative, reliable solutions. Our intellectual property We retain intellectual property rights for products designed and developed for customers. In addition, we have proprietary technologies applied across many customised products, creating barriers to entry and enhancing customer value. Our manufacturing capability We operate 41 manufacturing facilities in 18 countries, including China, Hungary, India, Mexico, Poland, Slovakia, Slovenia, Sri Lanka, Thailand, the UK and the USA. This global footprint enables consistent, reliable production close to customers. Our financial strength Our robust balance sheet and strong cash generation provide financial flexibility and resilience. It enables us to continue investing in our people, technologies and operational capabilities, whilst supporting expansion into new geographies and markets.

A decentralised model We operate a decentralised operating model. Our portfolio of over 30 operating businesses, each specialising in distinct technologies, is grouped into two divisions – Magnetics & Controls and Sensing & Connectivity – each with two operating units. Supported by Group central resources, each business operates independently under its own brand and management team within a clearly defined control framework aligned with discoverIE’s shared vision and strategic goals. This decentralised approach empowers local leadership teams, fostering a strong sense of ownership, accountability and entrepreneurial decision-making close to customers and markets. Collaboration through clustering

Customers Quality, reliability and efficiency. 100% on-time, in-full delivery target Suppliers Reliable partnerships and shared knowledge Employees Empowering and collaborative culture, and a healthy and safe environment 12% Voluntary employee turnover Shareholders Attractive returns and growth opportunities 267% Ten-year total shareholder return Communities Contribution to local employment, tax revenue, community engagement and decarbonisation £25.8m tax and social security contributions in FY 2025/26 68% reduction in Scope 1 and 2 carbon emissions since CY2021

The demand for energy-efficient, sustainable technologies continues to rise, and we are well positioned to capitalise on the value creation opportunities this shift presents. However, growth is not our only goal. As a company, we recognise our broader responsibility to help shape not just a more connected and intelligent world, but a more sustainable one. Sustainability is embedded throughout discoverIE. We focus on markets that align with the UN Sustainable Development Goals, and we design durable, energy-efficient products that minimise servicing or replacement needs. We understand that sustainability is a collective effort. By collaborating with our customers on their sustainability journeys, we help them meet their sustainability goals, whilst working to achieve our own.

Our core activity is the design and manufacture of specialist electronic components for industrial applications. Our strength lies in the deep understanding of our customers’ design and system challenges, which enables us to engineer customised solutions tailored to specific requirements. We also provide a reliable and consistent supply of products throughout the lifecycle of the end system. Design and customise Our engineers work closely with our customers, primarily OEMs, to develop

Common purpose and strategic goals

Shared knowledge and expertise

better solutions to solve complex technical challenges. This often

requires adapting standard products or designing new, bespoke solutions that are optimised for the customer’s application, performance requirements and operating environment. Manufacture and testing Manufacturing bespoke and low- volume, high-complexity products requires a flexible and technically capable production model. Our technical know-how and in-house manufacturing capabilities give us control over the production process, ensuring both quality and reliability. Products are subject to rigorous testing, often exceeding standard requirements, to meet demanding industrial and

Financial support

ESG guidance and support

Strategic guidance

M&A support

Our Planet Creating a positive

impact on our environment

Economies of scale

Risk management

Our People Keeping our people safe and happy Our Products Ensuring product

To encourage collaboration and knowledge-sharing, businesses with complementary or related technologies within each operating unit are grouped into clusters. These clusters are led by the leadership teams of the largest operating businesses, minimising layers of management and avoiding unnecessary bureaucracy. This flat structure supports faster decision-making and greater agility, enabling businesses to respond effectively to changing customer needs and market conditions. Together, decentralisation and clustering allow our operating businesses to combine the benefits of autonomy and agility with the advantages of scale, collaboration and shared expertise across the Group. Group support and governance Group head office functions, including finance, legal, M&A, IT, HR, communications and sustainability, provide support to enable our businesses to grow and operate efficiently. The Group’s Risk and Internal Audit function ensures compliance and effective controls, as well as robust risk management across the Group.

regulatory standards. Deliver globally

With manufacturing facilities in the Americas, Europe and Asia, we are able to manufacture close to our customers, reducing logistics risk and shortening delivery lead times. This global footprint supports resilient supply chains and enables us to provide customers with a dependable supply of products throughout the lifetime of the end system design.

reliability and sustainability

▶ Read more about our Sustainability priorities and progress on pages 42 to 73

1 Including all full-time and part-time employees, contractors and agency labour.

Empowerment We inspire growth and

Collaboration We work together, trust and respect each other

Positive impact We care about the environment and societies we live in and commit to making a positive impact

Guided by our values These are the fundamental beliefs and principles that guide our decision making:

Integrity We act with honesty and openness, treating our partners and stakeholders fairly

Quality We strive for excellence and make continuous improvements that deliver superior value to our customers

innovation by providing an entrepreneurial environment

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

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