Summary of Diploma (DPLM.F) Trading Update - July 17, 2025 Company Overview - **Company**: Diploma (DPLM.F) - **Industry**: Aerospace, Defense, Energy, Life Sciences, Data Centers Key Performance Highlights - **Quarterly Performance**: Strong performance in Q3, contributing to a long-term track record of sustainable quality compounding [3][4] - **Organic Growth**: Upgraded organic growth forecast from 8% to 10% for the full year; year-to-date organic growth at 10% [3][4] - **Reported Revenue**: Year-to-date reported revenue growth of 12%, with 4% attributed to acquisitions, partially offset by foreign exchange effects [4] - **Operating Margins**: Operating margins remain strong, in line with full-year guidance of 22% [4] Acquisitions - **Recent Acquisitions**: - Acquired Parkinson for £11 million, a sealing solutions business to enhance existing operations in Denmark [5] - Acquired Alpha Laboratories for £28 million, entering high-growth IVD markets in the UK [5][6] - **Growth Expectations**: Expected high single-digit growth rates for both acquired businesses, contributing positively to future organic growth [11] - **Synergies**: Anticipated revenue synergies and cost efficiencies from the integration of acquired businesses into existing operations [12] Market Dynamics - **End Market Support**: Strong support in key markets such as aerospace, defense, and energy; positive trends observed in data centers [3][25] - **Industrial Market Trends**: Improvement noted in the US industrial markets, particularly in aftermarket sales; ongoing recovery in North American steel sector [20][34] - **Challenges in UK Market**: The UK industrial market remains challenging, particularly for seals, with ongoing efforts to improve the RNG business [34] Specific Business Performance - **Windy City Wire**: Performing well, particularly in data centers and digital antenna systems; consistent growth observed [24] - **Peerless**: Strong performance in aerospace, with continued revenue growth and high margins [36] - **Diksa**: Transitioning to professional management, with growth rates improving to mid-single digits [15] Additional Insights - **Acquisition Pipeline**: Long-term acquisition pipeline remains robust, with recent improvements in deal flow observed [20] - **Copper Price Volatility**: Current volatility in copper prices is being managed through pricing models, with expectations of pass-through costs [38][39] Conclusion - **Outlook**: Confidence in delivering sustainable quality compounding for the long term, with a positive view on future growth opportunities and market conditions [6][20]

Core Points - The new factory of DKM in Shanghai's Jiading District officially opened, significantly enhancing supply chain efficiency and better meeting local market demands [2][5] - The factory covers an area of 5,260 square meters and will provide innovative sealing solutions under both the Kordsa and DKM brands for various industries including agriculture, energy, food and beverage, medical chemicals, and mobile machinery [2][5] - The facility is equipped with a rooftop photovoltaic system to reduce carbon footprint, aligning with Kordsa's sustainability goals [5] - The opening of the new factory is a strategic move to upgrade infrastructure and improve operational efficiency, ensuring timely delivery of products and services, which is expected to enhance customer satisfaction and brand loyalty [5][6] - The factory's advanced infrastructure and technical capabilities will enable Kordsa to better meet the evolving needs of customers and attract more business opportunities [5] - The opening ceremony included a ribbon-cutting event, site tours, and a corporate history exhibition, attended by government officials, media, customers, and partners [6] - The general manager of DKM China emphasized that the new factory is a significant step in the localization strategy, greatly enhancing supply chain capabilities to better serve customers in China [6]