Victrex Plc · LSE:VCT
Victrex — Non-Deal Roadshow (March 2025)
24 slides from Victrex's roadshow presentation, March 2025
Slide 1: Enabling Environmental & Societal Benefits
VICTREX PLC US & CANADA ROADSHOW MARCH 2025 ENABLING ENVIRONMENTAL & SOCIETAL BENEFITS
Slide 2: Victrex Team
VICTREX TEAM Jakob Sigurdsson Chief Executive Officer Ian Melling Chief Financial Officer Andrew Hanson IR Director CONFIDENTIAL
Slide 3: Our Purpose
OUR PURPOSE: Bringing Transformational & Sustainable Solutions That Address World Material Challenges Every Day Victrex Confidential
Slide 4: State of the Nation: 2025
STATE OF THE NATION: 2025 MACRO CHALLENGES Mixed Chemical industry Capacity utilisation Global inflation Competition end-market demand (customer inventories) ‘CONTROL THE CONTROLLABLES’: SELF-HELP White spaces & Project VISTA Cost of manufacture & Drive mega- Digitalisation complementary (Sales exce
Slide 5: End Market Outlook
END MARKET OUTLOOK FY 2025* AEROSPACE OUTLOOK SUMMARY VAR - FOCUSED ON AT LEAST MID-SINGLE DIGIT VOLUME GROWTH - DEMAND & MEDICAL IMPROVEMENT A KEY FACTOR ELECTRONICS - DRIVE YEAR-ON-YEAR PROGRESS IN PBT - FX HEADWIND ~£7-8M AT PBT MEDICAL KEY ENERGY & INDUSTRIAL OPTIMISTIC NEUTRAL AUTOMOTIVE CAUTIO
Slide 6: Strong Long-Term Growth Runway
STRONG LONG-TERM GROWTH RUNWAY Attractive & differentiated portfolio CURRENT MACRO-DRIVER MID-TERM LANDSCAPE CO2 reduction & POTENTIAL Up to 500kg/plane >5 tonnes/plane faster processing 11g/car average CO2 reduction & >200g of PEEK >5X higher performance in an EV ADDRESSABLE < 5000 Medical parts so
Slide 7: Mid-Term Growth Targets
MID-TERM GROWTH TARGETS GROUP CORE GROWTH INC MEGA- MEGA-PROGRAMME BUSINESS GROWTH PROGRAMMES PORTFOLIO 5-7% CAGR 8-10% CAGR Step up in FY 2025 (revenue 5-year period – (revenue 5-year period – (vs ~£10m revenue in FY 2024) PBT ahead of revenue growth with PBT ahead of revenue growth with improving
Slide 8: Strong Commercial Pipeline & White Space Opportunities
STRONG COMMERCIAL PIPELINE & WHITE SPACE OPPORTUNITIES Sustainable Solutions: Medical: PFAS replacement(eg cookware) Increasing opportunities in Non-implantable CONTINUING TO BUILD NEW USE CASES FOR PEEK & PAEK POLYMERS 8 CONFIDENTIAL
Slide 9: Mega-Programmes
FY 2024 revenue: £10.2m Magma: advanced qualification stage, supporting TechnipFMC/Petrobras E-mobility: new platforms Trauma: further revenue build for FY25 (800v platforms) with product portfolio Aerospace Composites: Knee: 1st commercial PEEK Closing on deployment for Knee opportunity*; closing o
Slide 10: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES (Post conclusion of major investment phase) Capex £m FY24 50 £32.6m 40 30 20 10 0 FY20 FY21 FY22 FY23 FY24 CAPITAL INVESTMENT FY20-24 WELL INVESTED ASSETS (UK & CHINA) CASH GENERATIVE BUSINESS MODEL: OPPORTUNITY FOR FURTHER CASHFLOW IMPROVEMENT 10
Slide 11: Key Messages: Focused on Delivery
3 3 KEY MESSAGES: STRONG SELF-HELP ATTRACTIVE FOUNDATIONS ACTIONS GROWTH RUNWAY FOCUSED ON DELIVERY 1. Strong pipeline 1. Sales excellence 1. Aligned to megatrends 2. Well invested assets 2. Cost of manufacture & 2. Differentiated strategy 3. Mega-programme procurement savings 3. Significant upside
Slide 12: Appendix
™ = APPENDIX
Slide 13: Victrex PEEK Polymers
VICTREX PEEK POLYMERS Extreme Temperature A unique combination of properties Wear Chemical Property Resistance Mechanical Hydrolysis Strengths VICTREX PEEK HIGH PERFORMANCE PBI PI LCP POLYMERS A UNIQUE COMBINATION OF PROPERTIES PAI PPS PEI PPA PTFE PES PSU Easy High Purity Processing PA POM PC PPE P
Slide 14: End-Markets & Applications
END-MARKETS MEDICAL INDUSTRIAL AND VAR & APPLICATIONS Every 27 seconds a patient is treated using Invibio PEEK OPTIMA solutions 100+ million AEROSPACE 15 million+ machines using Victrex solutions implanted devices 20,000+ aircraft have VICTREX solutions on-board ELECTRONICS Over 4 billion ENERGY mob
Slide 15: How We Differentiate
VICTREX CONFIDENTIAL HOW WE DIFFERENTIATE Victrex makes Type 1, Type 2 and an intermediate type of PEEK Competitor-type Victrex PEEK recipe Victrex PEEK recipe PEEK recipe Victrex BDF Other BDF Other BDF Victrex Victrex Competitor-type polymerisation polymerisation polymerisation process process pro
Slide 16: Further Differentiation
VICTREX CONFIDENTIAL FURTHER DIFFERENTIATION From Polymer to Forms and Parts BDF Monomer KEY: Polymer PAEK Polymer Powder Grinding Fine Powder Laser Process Compounding Melt Filtration Sintering Parts Dispersion Forms Compounds Compounding Granules Parts Extrusion Injection Moulding Coatings Film Fi
Slide 17: Medical Goals
MEDICAL GOALS 1. >30% OF GROUP REVENUES FROM MEDICAL BY 2032 (FROM 18% IN FY 2024) SPINE ARTHROSCOPY CMF Maintain and grow core 1 3. FURTHER GROW NON-SPINE REVENUES (NON- applications SPINE 60% OF MEDICAL REVENUES IN FY24) CARDIO DRUG DELIVERY ACTIVE IMPLANTABLES Develop non-Spine 2 segments TRAUMA
Slide 18: Group End Markets
GROUP END MARKETS FY 2024: 3,731 tonnes (+4% vs FY 2023) FY 2023: 3,598 tonnes (-24% vs FY 2022) Volume by Region Volume by Industry Medical* -15% Transport +8% Asia-Pacific +1% 1,057t 28% EMEA +8% VAR +14% 2,062t 55% 612t Electronics 17% -12% Americas -6% Energy & Industrial -6% * Medical volume re
Slide 19: Medical: Key Markets
MEDICAL: KEY MARKETS FY 2024: £53.0m (-19% vs FY 2023) FY 2023: £65.2m (+12% vs FY 2022) Revenue by Region Revenue by Market Asia-Pacific -27% £13.7m Non-Spine 26% -11% £24.6m Americas £21.4m 46% -18% 40% £31.6m 60% Spine -28% £14.7m EMEA 28% -10% 19 CONFIDENTIAL
Slide 20: Gross Margin Aspirations
GROSS MARGIN ASPIRATIONS RETURNING OUR GROSS MARGIN TO MID-HIGH 50s FY 2024 FY 2025 MID-TERM (FY2027-28) GM 46.2% GM IMPROVEMENT GM mid-high 50s (vs FY 2024) Lower asset utilisation Improved asset utilisation (UK) Further improved asset utilisation Cost impact from inventory Greater % Medical mix &
Slide 21: Balance Sheet
BALANCE SHEET FY 2024 FY 2023 £m £m PPE and intangible assets 369.2 369.9 Investment in associated undertakings - 9.1 Financial assets held at fair value through profit and loss 3.5 13.2 Financial assets held at amortised cost 1.0 0.6 Retirement benefit asset (net) 8.2 7.2 Inventories 115.1 134.5 Tr
Slide 22: Our ESG Pillars
OUR ESG PILLARS Further inspire our Decarbonisation and Supporting CO2 reduction employees and minimising resources & clinical benefit in communities to positively (energy, water & waste); Medical impact sustainability SBTI validated targets (STEM & Biodiversity focused) 22 Victrex Confidential
Slide 23: Our Products Enable Environmental & Societal Benefits
OUR PRODUCTS ENABLE ENVIRONMENTAL & SOCIETAL BENEFITS 52% OF REVENUE FROM SUSTAINABLE PRODUCTS# AEROSPACE AUTOMOTIVE ELECTRONICS MEDICAL ENERGY & INDUSTRIAL CO2 savings 80,000 tonnes 100,000 rpm 25% improved Up to 80% brain function … each year, our sales to … annual CO2 saving in Europe Supporting
Slide 24: IR Contacts
IR CONTACTS AEROSPACE PEEK Andrew Hanson EXPERTS Director of IR, Corporate Communications First to commercialise PEEK, with & ESG AEROSPACE unmatched knowledge and experience +44 (0) 7809 595831 ELECTRONICS [email protected] www.victrexplc.com MEDICAL DRIVE CORE BUSINESS Delivering the key PEEK & PAEK