Velocity Composites Plc · LSE:VEL
Velocity Composites — Investor Presentation (January 2020)
26 slides from Velocity Composites's investor presentation, January 2020
Slide 1: Investor Presentation January 2020
Investor Presentation January 2020 © Velocity Composites Plc - JAN 2020
Slide 2: A year of change and platform for growth established
A year of change and platform for growth established A year of change © Velocity Composites Plc - JAN 2020 Platform for growth • Leadership stabilised and the • Improved efficiencies delivering Board strengthened higher margins • Focussed growth through • Strategic supply chain alliances expanding s
Slide 3: Management
Management © Velocity Composites Plc - JAN 2020 Board Management • Highly experienced industrial • Composite aerospace and commercial board background • Jon Bridges CEO • New bottom-up integrated business plan to deliver • Andy Beaden appointed profitable growth Chairman and Rob Soen Andy Beaden Rob
Slide 4: Growth drivers for the aerospace composites market
Growth drivers for the aerospace composites market © Velocity Composites Plc - JAN 2020 Air Traffic Growth Is Decoupled from CO2 Emissions Growth • The use of composites in structural and non-structural airframe parts achieves a 20% weight reduction as compared 200% with aluminium (source: Boeing Gr
Slide 5: Highlights
Highlights FY19 Post year end • Board issue resolved • Boeing audit approval for Fareham • Strengthened blue chip customer • Production of structural FAI kits for base with strong pipeline of new 737 Max programme commenced opportunities (Safran/GKN/GE/BAE) • Additional independent NED • USA busines
Slide 6: Financial Highlights
Financial Highlights © Velocity Composites Plc - JAN 2020 FY 2019 FY 2018 • Revenue stable £000 £000 • Reduction in A320/A330 CEO and A380 Revenue 24,316 24,478 • Increase in A320/A330 NEO platforms & 737 MAX consumables Cost of sales (19,047) (19,991) • GM improvement 21.7% (FY18: 18.3%) Gross prof
Slide 7: Balance Sheet
Balance Sheet © Velocity Composites Plc - JAN 2020 FY 2019 FY 2018 • Debtor days reduced from 72 days to 52 £000 £000 days with less than £0.1m of overdue debt Non current assets 1,379 1,442 (FY18: £0.9m) Current assets • Creditor days reduced from 64 days to 46 days as we deliver on paying our supp
Slide 8: Cash Flow
Cash Flow FY 2019 FY 2018 © Velocity Composites Plc - JAN 2020 £000 £000 • Inventories higher due to stock build for Brexit Operating loss (636) (994) • Debtors – significant improvement due to Depreciation & Amortisation 449 413 focus on cash collection and reduction in Other Operating Cash flows 9
Slide 9: Market Overview
Market Overview © Velocity Composites Plc - JAN 2020 Mainland Europe North America Asia • Supported from UK • Working with Wesco • Distribution model explored Entry Strategy • Leverage current customer • Developing onsite customer with partners relationships solutions • Large customer opportunities
Slide 10: North American Opportunities
North American Opportunities © Velocity Composites Plc - JAN 2020 • Wesco Strategic partnership - c.$600m identified addressable market • Atlanta region identified for first manufacturing facility • Major opportunity being progressed with one customer who we currently work with in Europe • Showroom
Slide 11: Europe Opportunities
Europe Opportunities © Velocity Composites Plc - JAN 2020 • Working with Airbus and our supply chain partners • Seek to further develop mainland European team • New business opportunities are an extension of UK customer business • Increased focus on reducing material waste is helping raising value o
Slide 12: Future Events
Future Events © Velocity Composites Plc - JAN 2020 • Cenkos Growth & Innovation Forum 11 February 2020 • AGM at Burnley site 25 February 2020 • Advanced Technology Centre opening June 12
Slide 13: Summary & Outlook
Summary & Outlook • New Board with strong industrial and aerospace experience • New NED and CFO to be added in 2020 • Current revenue visibility 85% with strong pipeline of further opportunities • Investment in US operation underway • UK Advanced Technology centre to open H1 2020 • Further investmen
Slide 14: Appendices
Appendices © Velocity Composites Plc - JAN 2020 14
Slide 15: Velocity - What do we do?
Velocity - What do we do? © Velocity Composites Plc - JAN 2020 • 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 16: Velocity Process
Velocity Process Raw Material Structural Product Vacuum Bag Product Finished Part (1m diameter) Saving > 10% material and > 20% time © Velocity Composites Plc - JAN 2020 16
Slide 17: 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 18: How Velocity Adds Value
How Velocity Adds Value © Velocity Composites Plc - JAN 2020 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 19: Customer Engagement Lifecycle
Customer Engagement Lifecycle Customer Engagement Lifecycle * © Velocity Composites Plc - JAN 2020 © 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 20: Global Demand Update
Global Global Demand Demand Update Update Global Demand Update The Macro Aircraft Market Growth © Velocity Composites Plc - JAN 2020 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 21: Revenue by Customer
© Velocity Composites Plc - JAN 2020 21 Revenue by Customer
Slide 22: Revenue by Aircraft Type
© Velocity Composites Plc - JAN 2020 22 Revenue by Aircraft Type
Slide 23: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As at 31 October 2019 © Velocity Composites Plc - JAN 2020 FY 2019 FY 2018 £000 £000 Non-current assets - Intangible assets 318 362 - Property, plant and equipment 1,061 1,080 Current assets - Inventories 3,177 2,744 - Trade & other receivables 4,149 5,72
Slide 24: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As at 31 October 2019 © Velocity Composites Plc - JAN 2020 FY 2019 FY 2018 £000 £000 Non current liabilities - Deferred tax - - - Net obligations under finance leases 169 171 Net assets 8,691 9,261 Equity attributable to equity holders - Share capital 90
Slide 25: 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 26: revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - JAN 2020
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