Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Investor Presentation (March 2025)
23 slides from Varex Imaging's investor presentation, March 2025
Slide 1: Making the Invisible Visible
Making the Invisible Visible Investor Presentation March 2025 3/19/2025 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 3/19/2025 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 Security Oil & Gas $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: Varex’s Portfolio of Cargo and Vehicle Inspection Systems
Varex’s Portfolio of Cargo and Vehicle Inspection Systems Solid interest and adoption in newly launched security screening systems business Mobile System Gantry System VXM-6 VXG-6 Mobile Cargo and Gantry Cargo and Vehicle Inspection Vehicle Inspection System System Portal System Car Scanner VXP-6 VX
Slide 13: Total Addressable Market Size
Security and Cargo Inspection Systems Update Varex’s Entry into Large Established and Growing Global Security Systems Market • >$1B TAM expected to grow at 7% CAGR • Leveraging imaging component over next 5 years expertise as a global leader in linear accelerator and high • Demand driven by global s
Slide 14: Key Investment Highlights
Key Investment Highlights 3/19/2025 14
Slide 15: 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 16: 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% Soft
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Making the Invisible Visible
Making the Invisible Visible