Velocity Composites Plc · LSE:VEL
Velocity Composites — Investor Presentation (January 2022)
12 slides from Velocity Composites's investor presentation, January 2022
Slide 1: Investor Presentation January 2022
Investor Presentation January 2022 © Velocity Composites Plc - JAN 2022
Slide 2: Headlines
Headlines © Velocity Composites Plc - JAN 2022 Strategic Realignment • Renewal of top customers • Improved cost-base • Strengthened operations • Invested in technology • Positive outlook 2
Slide 3: Business Development and Outlook
Business Development and Outlook FY21 OUTLOOK • Contract renewals from all major UK • Global air travel starting to recover, customers particularly in North America • New business wins • Airbus and Boeing issuing positive • Investment in technology and people forecasts • Diversification into defence
Slide 4: Market Outlook - Driven by Global Air Traffic
Market Outlook - Driven by Global Air Traffic Air Traffic Recovery Airbus expects a full recovery of air traffic between 2023 & 2025 • Recovery to 2019 levels by 2023/2024 140 depending on aircraft RPKs = Revenue Passenger Kilometers platform 120 meline er: expected ti Air Traffic compared to equiva
Slide 5: Sustainability key to future aircraft demand
Sustainability key to future aircraft demand Passenger Aircraft Fleet Renewal - Transition to ‘Net Zero’ • Velocity well represented New Generation Aircraft - 25% lower carbon footprint * on the platforms leading the move to sustainable 50,000 1ST + 2ND + PREVIOUS aviation GENERATION** AIRCRAFT 45,0
Slide 6: Operational Improvements
Operational Improvements © Velocity Composites Plc - JAN 2022 • Cost-base stabilised with EBITDA breakeven H2 2021 • Technology investment improved internal efficiency and supporting new business bids • Gross margin improved • Management team strengthened for operational growth • Net cash positive 6
Slide 7: Financial Overview
Financial Overview © Velocity Composites Plc - JAN 2022 FY 2021 FY 2020 • Demand levels continue to be suppressed by £000 £000 Covid but stabilised Revenue 9,767 13,561 • Despite Covid impact, have improved gross profit through: Cost of sales (7,228) (11,237) • Relentless focus on data driven cost c
Slide 8: Balance Sheet
Balance Sheet © Velocity Composites Plc - JAN 2022 FY 2021 FY 2020 £000 £000 • Continued focus on cash management through working capital - £1.0m successful Non current assets 2,830 3,017 stock reduction, improved stock turns Current assets - Inventories 877 1,908 • Robust controls remain to support
Slide 9: Liquidity
Liquidity © Velocity Composites Plc - JAN 2022 FY 2021 FY 2020 • EIS funds fully utilised during period to Net Cash / (Debt) £000 £000 support R&D technology development EIS cash 0 745 and geographical expansion Operating cash 844 523 preparation CBIL cash 2,632 2000 • Total cash position improved f
Slide 10: Summary
Summary • Re-contracted with all major customers in challenging market conditions • Investments in digital technology and people driving efficiency and enhancing offering • Positive market outlook and customer demand • Composites increasingly critical to deliver Green targets across multiple market
Slide 11: Revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - JAN 2022
Slide 12: 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
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