Velocity Composites PLC · LSE:VEL
Velocity Composites — FY2020 Earnings Presentation
22 slides from Velocity Composites's earnings presentation, January 2021
Slide 1: Investor Presentation: Full Year Results to 31 October 2020
Investor Presentation Full Year Results to 31 October 2020 © Velocity Composites Plc - JAN 2021
Slide 2: Chairman's Summary
Chairman’s Summary © Velocity Composites Plc - JAN 2021 FY20 FY21 • Understanding the impact • Expect to be EBITDA of Covid-19 and stabilising breakeven by second half of the business 2021 • Right-sizing cost-base • Crystalise forecasts and accordingly visibility in a post-vaccine • New NED & CFO wo
Slide 3: CEO Summary
CEO Summary FY20 FY21 • Cost-base right-sized after initially utilising • Enhanced proposition confirmed two key furlough scheme customers intent to renew contracts • Headcount reduced from 132 to 70 • Key customer to sign up a new site as • Reorganisation of senior management part of continued roll
Slide 4: Financial Overview
Financial Overview © Velocity Composites Plc - JAN 2021 FY 2020 FY 2019 £000 £000 Revenue 13,561 24,316 • Sales decline -44% from underlying Cost of sales (11,237) (19,047) demand Gross profit 2,324 5,269 • Decrease in gross profit driving profit Admin Costs (5,132) (5,177) performance Exceptional a
Slide 5: Balance Sheet
Balance Sheet © Velocity Composites Plc - JAN 2021 FY 2020 FY 2019 £000 £000 • Cash management and control has Non current assets 3,017 1,379 been key Current assets • £3m movement in Net Assets - Inventories 1,908 3,177 - Trade & other receivables 2,464 4,224 • Non-current assets/liabilities - Cash
Slide 6: Liquidity
Liquidity © Velocity Composites Plc - JAN 2021 FY 2020 FY 2019 Net Cash / (Debt) £000 £000 EIS cash 745 1613 • Maintained net cash position Operating cash 523 1811 • Supported by strong cash control, CBIL cash 2000 - CBIL & Furlough Total Cash 3,268 3,424 • Still have headroom - IDF, Stock, Trade cr
Slide 7: Underlying Demand for Velocity Remains Strong
Underlying Demand for Velocity Remains Strong © Velocity Composites Plc - JAN 2021 • Strong and growing underlying need for composites - in both civil and military applications • A large proportion of older aircraft have been retired early - capacity lost that will need to be replaced • Velocity ser
Slide 8: Underlying Demand for Velocity is Still There
Underlying Demand for Velocity is Still There © Velocity Composites Plc - JAN 2021 Aviation has proven resiliant over and over again 12 COVID-19 Pandemic 10 Global Financial Crisis Revenue Passenger Kilometers (trillions) Trend 8 9/11 and SARS Scenario (RPKs) 6 Actual Traffic (RPKs) 4 ICAO scheduled
Slide 9: Top Aviation Programmes
Top 10 Aviation Programes $0 $50 $100 $150 $200 $250 $300 $350 © Velocity Composites Plc - JAN 2021 Airbus A320/Neo Boeing 737NG/MAX Top 5 are Lockheed Martin F-35 54% of total (next 15 are Boeing 787 22%) Airbus A350XWB Boeing 777/X 2020-2029 Airbus A220 Boeing 767/KC-46 2010 - 2019 Gulfstream 650/
Slide 10: Strategy Going Forward
Strategy Going Forward © Velocity Composites Plc - JAN 2021 • Continued focus around composite air platforms, both civil and military • Continue to develop bespoke advanced technology and industry 4.0 manufacturing capability • Strategy validated during Covid-19 disruption • Increased pressure on OE
Slide 11: Summary & Outlook
Summary & Outlook FY20 • Realign around the reduced customer demand, stabilise the business and its cost base. • Strengthened relationships with suppliers and customers to manage disruption • UK focussed business development did resume when permitted FY21 • Tough H1 but expected greater clarity and
Slide 12: Appendices
Appendices © Velocity Composites Plc - JAN 2021 12
Slide 13: Velocity - What Do We Do?
Velocity - What Do We Do? © Velocity Composites Plc - JAN 2021 • 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: 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 2021 14
Slide 15: The Composites Manufacturing Process
The Composites Manufacturing Process The Traditional Supply Chain For Manufacturers NON-CORE BUSINESS TO MANUFACTURER Supply Material Material Material Material Clean Room Material Procurement Storage Cutting and Delivery Manufacturing Curing Machining NDT Assembly Collation MULTIPLE SUPPLIERS MANUF
Slide 16: How Velocity Adds Value
How Velocity Adds Value © Velocity Composites Plc - JAN 2021 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 17: Customer Engagement Lifecycle
Customer Engagement Lifecycle Customer Engagement Lifecycle * © Velocity Composites Plc - JAN 2021 © 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 18: Velocity FY20 Revenue by Aircraft Type
Velocity FY20 Revenue by Aircraft Type © Velocity Composites Plc - JAN 2021 18
Slide 19: Full Balance Sheet (1 of 2)
Full Balance Sheet (1 of 2) © Velocity Composites Plc - JAN 2021 FY 2020 FY 2019 £000 £000 Non-current assets - Intangible assets 167 318 - Property, plant and equipment 1,723 1,061 - Right-of-use assets 1,127 - Current assets - Inventories 1,908 3,177 - Trade & other receivables 2,464 4,149 - Corpo
Slide 20: Full Balance Sheet (2 of 2)
Full Balance Sheet (2 of 2) © Velocity Composites Plc - JAN 2021 FY 2020 FY 2019 £000 £000 Non current liabilities - Loans 1,500 - - Net obligations under finance leases 1,060 169 Net assets 5,682 8,691 Equity attributable to equity holders - Share capital 91 90 - Share premium 9,727 9,727 - Share-b
Slide 21: 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 22: Revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - JAN 2021