ENABLING
ENVIRONMENTAL & SOCIETAL BENEFITS
VICTREX PLC
INVESTOR OVERVIEW: US & CANADA ROADSHOW MARCH 2024
OUR PURPOSE: WE BRING TRANSFORMATIONAL & SUSTAINABLE SOLUTIONS THAT ADDRESS WORLD MATERIAL CHALLENGESEVERY DAY
Targeting core revenue CAGR
5-7% by 2028
(upside to 8-10% as mega- programmes commercialise)
5Volume-6% of salesCAGR investedc6% sinceR&D2015pa
(ex CE contract)
1000+ employees serving over 40 countries
Sustainable products enabling environmental & societal benefit
STRONG MEGATRENDS SUPPORT LONG-TERM GROWTH RUNWAY
#1 PEEK polymer experts - 5 key end-markets
Innovative growth pipeline - increasing commercialisation Highly cash generative business model
Well invested global assets (Polymer in UK & China) Strong & growing ESG agenda
Forward-looking statements
Sections of this Presentation may contain forward-looking statements, including
statements relating to: certain of the Group's plans and expectations relating to its
future performance, results, strategic initiatives and objectives, future demand and
markets for the Group's products and services; research and development relating to
new products and services; and financial position, including its liquidity and capital resources.
These forward-looking statements are not guarantees of future performance. By their nature, all forward looking statements involve risks and uncertainties because they
relate to events that may or may not occur in the future, and are or may be beyond the
Group's control, including: changes in interest and exchange rates; changes in global,
political, economic, business, competitive and market forces; changes in raw material pricing and availability; changes to legislation and tax rates; future business
combinations or disposals; relations with customers and customer credit risk; events affecting international security, including global health issues and terrorism; the impact
of, and changes in, legislation or the regulatory environment (including tax); and the outcome of litigation.
Accordingly, the Group's actual results and financial condition may differ materially from
those expressed or implied in any forward-looking statements. Forward-looking statements in this Presentation are current only as of the date on which such statements
are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation.
Nothing in this Presentation shall be construed as a profit forecast.
INVESTMENT
CASE
2
OUR STRATEGY
POLYMER & PARTS
PRODUCT FORMS
POLYMER
Compounds | ||
and | Pipe | |
PEEK & PAEK | …. | |
UD Tape | ||
Polymers | ||
APTIV Film
Coatings & Fibres
PARTS
Gears | |
Aerospace | Composites |
Composites | |
Magma pipe | |
Trauma plates
Knee
3
FURTHER GROW THE MARKET FOR PEEK POLYMER & CAPTURE NEW REVENUE STREAMS
VICTREX PEEK POLYMERS
A unique combination of properties
HIGH
PBI PERFORMANCE
PI LCP POLYMERS
PAI PPS
PEI PPA
PES PTFE
PSU
PA POM
PC PPE PBT
ENGINEERING POLYMERS
PE PVC PP PS ABS
PMMA PVA PVDC PET etc…
Wear
Property
Mechanical
Strengths
Easy
Processing
Recyclable
Extreme Temperature
Chemical
Resistance
VICTREX PEEK | Hydrolysis |
A UNIQUE COMBINATION
OF PROPERTIES
High Purity
Bio inert
Electrical Property
COMMODITY POLYMERS
END-MARKETS & APPLICATIONS
MEDICAL | INDUSTRIAL AND VAR | |
Every 30 seconds a patient is treated using | ||
100+ million | ||
Invibio PEEK OPTIMA solutions | ||
AEROSPACE | 15 million+ | machines using |
implanted devices | Victrex solutions | |
20,000+ | ||
aircraft have VICTREX | ||
solutions on-board |
ELECTRONICS | ||
ENERGY | Over 4 billion | |
AUTOMOTIVE | mobile devices use | |
75+ million | APTIV Film technology | |
500 million | seals in use today | |
VICTREXTM PEEK | ||
VICTREXTM PEEK based applications | ||
on the road today |
PEEK was developed by ICI in 1978, with Victrex being formed from ICI in 1993 and listed in 1995. | 5 |
PEEK has a unique combination of properties and is typically used as a metal replacement | |
VICTREX DIFFERENTIATION
Victrex makes Type 1, Type 2 and an intermediate type of PEEK
Victrex PEEK recipe | Victrex PEEK recipe |
Victrex BDF | Other BDF |
Victrex | Victrex |
polymerisation | polymerisation |
process | process |
Competitor-type
PEEK recipe
Other BDF
Competitor-type polymerisation process
Type 1IntermediateType 2
Victrex is unique being integrated into BDF monomer & in being able to make all types of PEEK
OUR PRODUCTS:
ENABLING ENVIRONMENTAL
& SOCIETAL BENEFITS
55%
OF REVENUE FROM SUSTAINABLE PRODUCTS#
AEROSPACE
CO2 savings
-
each year, our sales to
Aerospace help save three times more CO2 annually than Victrex produces in its own operations*
(annual scope 1 & 2 CO2 emissions)
AUTOMOTIVE | ELECTRONICS | ||||
80,000 tonnes | 100,000 rpm | ||||
… annual CO2 saving in Europe | Supporting energy efficiency, | ||||
for selected applications** | durability & reliability at high | ||||
rotation speeds in vacuum | |||||
cleaners & hairdryers |
MEDICAL
25% improved brain function
… using PEEK-OPTIMA
Natural in CMF skull plates*** vs metal plates
Better union rate
- using carbon fibre PEEK trauma plate vs. steel plates****
ENERGY & INDUSTRIAL
Up to 80%
… weight saving vs metal using
VICTREX PEEK helps reduce stress on mechanical systems in renewable energy applications
* | Based on 10kg of PEEK replacement for metal, IATA carbon reduction & climate change 2018 | |
** | Based on European annual mileage for passenger cars using vacuum pumps | 7 |
*** | 25% improved brain function vs Titanium plates, based on paper by Zhang Q, Yuan Y, Li X, et al, World Neurosurgeon 2018 | |
**** | Data on file refers to Trauma outcomes in high-risk patients. |
- Sustainable products are defined as those which offer a quantifiable environmental or societal benefit. These are primarily in Automotive and Aerospace (supporting CO2 reduction) but also specific applications in Energy & Industrial and Electronics (e.g. wind energy applications, or those which support energy efficiency) and Medical, supporting better patient outcomes. Volumes into Oil & Gas (Energy & Industrial) and Value Added Resellers are currently excluded.
WELL-PLACED FOR THE
NEXT PHASE OF GROWTH
• | China manufacturing | • | Volume growth & macro recovery | • Volume step-up & expansion | |
• | UK asset upgrade | • Improved efficiency & returns | • | Mega-programme inflection | |
• | Medical acceleration | • | Mega-programme contribution | • | Increase shareholder returns |
INVESTMENT | DELIVERY | GROWTH & |
RETURNS | ||
FY20-23 | FY24-25 | FY25+ | 8 |
NEW MID-TERM GROWTH TARGETS:
MACRO-DRIVERS, DIFFERENTIATED PRODUCTS &
MEGA-PROGRAMMES
GROUP CORE | GROWTH INC MEGA- | MEGA-PROGRAMME | ||||
BUSINESS GROWTH | PROGRAMMES | PORTFOLIO | ||||
5-7% CAGR | 8-10% CAGR | c£25m-£35m of | ||||
(revenue 5-year period - | (revenue 5-year period - | Group revenues | ||||
PBT ahead of revenue growth with | PBT ahead of revenue growth with | |||||
improving operating leverage) | improving operating leverage) | (in FY 2025) | ||||
MID-TERM CONFIDENCE UNDERPINS NEW STRATEGIC GROWTH TARGETS
(communicated December 2023) | 9 |
DELIVERING THE UNTAPPED POTENTIAL OF PEEK POLYMER
CONFIDENTIAL
CURRENT LANDSCAPE
Up to 500kg/plane
10g/car average
- 5000 Medical parts sold
15bn connected devices
Renewable & new energy
applications <1% of volumes
MACRO-DRIVER
CO2 reduction & faster processing
CO2 reduction & higher performance
Metal alternatives, Patient outcomes
Higher durability & performance
New energy, higher performance
FUTURE POTENTIAL
Over 5 tonnes/plane
>200g of PEEK in
an EV*
>100,000 Medical parts
sold in 5 years
>25bn connected
devices**
c8 tonnes of PEEK per km for PEEK composite pipe
(Oil & Gas & hydrogen/new energy
opportunities)
*Based on 800V long-term opportunity **Statista forecast by 2030
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Disclaimer
Victrex plc published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 April 2024 14:35:06 UTC.