Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Investor Presentation (January 2025)
21 slides from Varex Imaging's investor presentation, January 2025
Slide 1: Making the Invisible Visible
Making the Invisible Visible Investor Presentation January 2025 1/13/2025 1
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning the number of products we produce annually; estimated market growth for our products, addres
Slide 3: Company Overview
Company Overview 1/13/2025 3
Slide 4: Varex Imaging At-a-glance
Varex Imaging At-a-glance • Spun-off from Varian Medical Systems in 2017. Varian was formed in 1948 FY24* Revenue Breakdown ($M) Segment Geography • Key products: X-ray tubes, flat panel and photon counting detectors and accessories, linear accelerators, image software processing solutions $229 $264
Slide 5: Medical Segment Overview
Medical Segment Overview FY2024 Revenue by Modality FY24 Revenue: $582M Mammography Other 72% of Varex Revenue Dental CT Current Addressable Market: ~$3B Oncology $582M Market Growth: ~2 – 3% Large, Stable & Growing Fluoroscopy Key products: X-ray tubes, connect & control Radiography systems, detect
Slide 6: Medical Imaging Technologies
Medical Imaging Technologies Varex Domain Other Imaging Mediums X-ray Computed MRI Ultrasound PET Scan Tomography (CT) Uses a series of X-rays Uses magnetic fields Uses radioactive drugs Uses X-ray to quickly Uses high-frequency to create cross- and radio waves to (tracers) and a produce images of s
Slide 7: Medical X-ray Imaging System
Medical X-ray Imaging System X-Ray tube Collimator Interconnect Sources (Tubes) Software& Services Bucky system Console Connect & Control Automatic Exposure Generator Control (AEC) Detectors Flat panel detector (Panels)
Slide 8: Medical – Growth Initiatives
Medical – Growth Initiatives Potential TAM Photon Counting Detectors • Release PC-CT detectors to production ~$500M • Expand applications/customer base in Industrial FY2029 High Volume Radiographic Components • Reinvigorate radiographic market penetration ~$600M • Cost reduction across products Curr
Slide 9: Industrial Segment Overview
Industrial Segment Overview FY2024 Revenue by Vertical FY24 Revenue: $228M Automotive Power Gen Sterilization 28% of Varex Revenue Def. / Nat'l Labs Aerospace Current Addressable Market: ~$1.3B Oil & Gas Security $228M Market Growth: ~5 – 7% Greenfield & Evolving Gen. Mfg./ Key products: X-ray linea
Slide 10: Industrial Growth Drivers
Industrial Growth Drivers Evolving verticals driving growth for Industrial markets Security Energy Food Quality Electronics Consumer Safety Periodic X-ray inspection Foreign object Increased utilization of in- X-ray irradiation is a Improved border security for weld and structural identification and
Slide 11: Industrial – Growth Initiatives
Industrial – Growth Initiatives Potential TAM Industrial Scanning Systems • Vertically integrated cargo scanning systems >$1B • Portal, gantry, mobile scanner and car scanner Current • Leverage core imaging component expertise • Provide differentiated value directly to end customers Industrial Flat
Slide 12: Key Investment Highlights
Key Investment Highlights 1/13/2025 12
Slide 13: Key Investment Highlights
Key Investment Highlights Market leader with a comprehensive product portfolio and roots dating back to 1948, a sizeable global installed base 1 which drives replacement & services demand High barriers to entry given intellectual property portfolio, strong track record of innovation, need for 2 sign
Slide 14: Market Leader with a Comprehensive Product Portfolio
1 Market Leader with a Comprehensive Product Portfolio Varex is a market leader with a comprehensive product portfolio and a history of market defining innovation Company Company Company Company Company Company A B C D E F 75+ years of innovation X-ray Tubes ✓ ✓ ✓ X-ray Detectors ✓ ✓ ✓ ✓ ✓ ~10% of s
Slide 15: Roots Dating Back to 1948
1 Roots Dating Back to 1948 1948 Varian 1970 Start of 1999 Start of 2012 Infimed 2015 Claymount 2015 MeVis 2017 2017 PerkinElmer 2019 Direct 2024 Launch Founded X-ray Tube Flat Panel Acquisition Acquisition Acquisition Varex Acquisition Conversion Cargo Production Detector Imaging Acquisition Screen
Slide 16: Sizable Global Installed Base Driving Replacement & Services Demand
1 Sizable Global Installed Base Driving Replacement & Services Demand Hardware Software X-Ray X-Ray Connect Image Acquisition Diagnostic, Sources Detectors & Control and Processing Workflow, and AI Platforms • Complete Range of • Full Spectrum of • Exposure Control • Processing • Development X-ray T
Slide 17: High Barriers to Entry Given Innovation Track Record and Regulatory Requirements
2 High Barriers to Entry Given Innovation Track Record and Regulatory Requirements 25+ Years of Innovation AI/CAD Anode End Dynamic Industrial Mammo 3D Next Gen Photon Nanotube Artifact Grounded Digital Linear Tomosynthesis Rad & Dynamic Counting Multi-emitter Detection CT Tubes Detectors Accelerato
Slide 18: Deep Customer Relationships with Multi-year Contracts
3 Deep Customer Relationships with Multi-year Contracts Customer Engagement Cycle Strong Customer Relationships (Many Are 25+ Years) Top 5 Customers #of Years • Early engagement in customer Product Development Cycles Customer #1 45+ • Continuous Product Replacement / Refresh Cycles Customer #2 7+ •
Slide 19: Diversified & Scaled Global Manufacturing & Sales Footprint
4 Diversified & Scaled Global Manufacturing & Sales Footprint • Global sales, R&D, and manufacturing footprint with over 30 facilities spanning Doetinchem, ~1.4 million square feet with Netherlands ability to originate sales worldwide Espoo, Finland • Manufacturing of certain sub-assemblies is outso
Slide 20: Proven Operating Track Record with Long-Term History of Revenue Growth
5 Proven Operating Track Record with Long-Term History of Revenue Growth • Strong historical performance highlighting the Company’s growing sales profile across cycles • FY24 softness due to destocking and regulatory headwinds in China which are abating $893 $859 +8% $818 $811 $773 $781 CAGR $738 $6
Slide 21: Making the Invisible Visible
Making the Invisible Visible