Velocity Composites Plc · LSE:VEL
Velocity Composites — Investor Presentation (November 2019)
19 slides from Velocity Composites's investor presentation, November 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019 © Velocity Composites Plc - NOV 2019
Slide 2: Contents
Contents • Highlights 3 • Management 4 • Current Trading Update 5 • Strategy & Business Model 6 • Market Overview 7 • North American Opportunities 8 • Summary & Outlook 9 © Velocity Composites Plc - Nov 2019 1
Slide 3: Company at a glance
• Composite Aerospace kitting • £24m revenue • 150 employees • Experienced management team • Based in Lancashire, UK • UK manufacturing sites in Burnley & Fareham • Global customer base • Long term contracts • Major new Tier 1 partnerships • £1 billion market © Velocity Composites Plc - NOV 2019 2
Slide 4: Highlights
Highlights © Velocity Composites Plc - NOV 2019 Operational Corporate • Fastest growing sub-sector of • New board structure global aerospace market • Experienced management • Major Blue Chip customers: team GKN, GE, BAE, Safran • Net cash (before finance • US Partnership agreement leases) at 31 Oct
Slide 5: Management
Management © Velocity Composites Plc - NOV 2019 Board Management • Highly experienced industrial • Composite aerospace and commercial board background • Jon Bridges CEO • New integrated business plan to deliver profitable • Andy Beaden and Rob Soen growth appointed NEDs: • Refocused on revenue Andy
Slide 6: Current Trading Update
Current Trading Update © Velocity Composites Plc - NOV 2019 • Revenue >£24m • Growing pipeline of global opportunities • Renewed focus on operational • H2 margins ahead of those achieved in excellence, improving margins, capital H1 (H1:20.9%) utilisation and ROCE • Improved working capital managemen
Slide 7: Strategy and Business Model
© Velocity Composites Plc - NOV 2019 Strategy and Business Model • Developing new investment model • Expansion of European customer to increase ROCE base with planned new production • UK growth opportunities with facility existing customers, fully utilising • Focus upon larger, strategic capacity cu
Slide 8: Market Overview
Market Overview Mainland Europe North America Asia • Supported from UK • Advanced plans with Wesco to • Bid on 1-2 key projects Entry Strategy • Leverage current customer open a production unit in SE • Distribution model explored relationships USA with partners • Developing sales team • Local team i
Slide 9: North American Opportunities
North American Opportunities © Velocity Composites Plc - JUNE 2018 • Wesco strategic partnership • Region identified for first manufacturing facility in Atlanta • Site expected to be operational in 2020 • Three pilot customers at bidstage (aggregate estimate of current spend $100m per annum) • Furth
Slide 10: Summary and Outlook
Summary and Outlook • New board with strong industrial experience • Strengthened relationships with key customers across major markets • Strong pipeline of further opportunities • FY19 results in line with market forecasts • Investor day in April 2020 in Burnley (to be confirmed) 9 © Velocity Compos
Slide 11: Appendices
Appendices 1. What does Velocity do? 2. Global demand update 3. Velocity process 4. Composites manufacturing process 5. How Velocity adds value © Velocity Composites Plc - NOV 2019 10
Slide 12: Customer Engagement Lifecycle
Customer Engagement Lifecycle Customer Engagement Lifecycle * © Velocity Composites Plc - NOV 2019 © Velocity Composites Plc - JUNE 2019 INITIAL CUSTOMER BID RESPONSE ENGAGEMENT plc GATE 1 GATE 2 GATE 3 • Visits Preliminary Bid Bid / No Bid Solution Submission • Presentations Development • Obtain RF
Slide 13: Velocity - What do we do?
Velocity - What do we do? © Velocity Composites Plc - NOV 2019 • Mission: To revolutionise aerospace and high value composites manufacturing by enabling our customers to reduce waste/costs whilst meeting increased global demand by creating a lean and scalable supply chain in a more-for-less era • Ve
Slide 14: Global Demand Update
Global Global Demand Demand Update Update Global Demand Update The Macro Aircraft Market Growth © Velocity Composites Plc - NOV 2019 The Macro Aircraft Market Growth • Over 41,000 aircraft to be delivered in next two decades • Over 41,000 aircraft to be delivered •inAircraft fleet next two growth >9
Slide 15: Velocity Process
Velocity Process Raw Material Structural Product Vacuum Bag Product Finished Part (1m diameter) Saving > 10% material and > 20% time © Velocity Composites Plc - NOV 2019 14
Slide 16: The Composites Manufacturing Process
The Composites Manufacturing Process The Traditional Supply Chain For Manufacturers NON-CORE BUSINESS TO MANUFACTURER Supply Material Clean Room Material Material Material Material Procurement Storage Cutting and Delivery Manufacturing Curing Machining NDT Assembly Collation MULTIPLE SUPPLIERS MANUF
Slide 17: How Velocity adds value
How Velocity adds value © Velocity Composites Plc - NOV 2019 Savings made by customers using Velocity • Material spend reduced by 10 - 53% due to smarter nesting • Material increase in productivity due to reduced production times • Increase in productive cleanroom floorspace by removing associated e
Slide 18: Velocity Disclaimer
Velocity Disclaimer IMPORTANT NOTICE This presentation and any verbal information given (together, the “Presentation”), has been prepared by the Nothing in the Presentation is, or should be relied on as, a promise or representation as to the future. The directors of Velocity Composites plc (the “Com
Slide 19: Revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - NOV 2019
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