Velocity Composites Plc · LSE:VEL
Velocity Composites — Investor Day (May 2023)
22 slides from Velocity Composites's investor day presentation, May 24, 2023
Slide 1: Mello Presentation
Mello Presentation 24 May 2023 © Velocity Composites Plc - JAN 2022
Slide 2: Executive Summary
Executive Summary © Velocity Composites Plc - MAY 2023 FINANCIALS CLIENTS MARKET OPPORTUNITY THE FUTURE • Trading in line with • Customers include GKN • Contracted business should • Growth will increasingly come expectations for H1 FY 2023 Aerospace, Safran, BAE deliver a three-fold increase from ne
Slide 3: Experienced Board
Experienced Board © Velocity Composites Plc - MAY 2023 © Velocity Composites Plc - FEB 2023 Andy Beadon Jon Bridges Adam Holden Annette Rothwell David Bailey Non-Executive Chairman CEO Group Finance Director Non-Executive Director Non-Executive Director Andy has over 30 Jon has over 25 years’ Adam h
Slide 4: The Demand for Velocity Composites' Services
The Demand for Velocity Composites’ Services © Velocity Composites Plc - MAY 2023 Market Growth opportunities continue to arise in both the aerospace (civil and defence) and non- aerospace sectors. The Industrial material composite sectors are a high growth markets, with the use of these advanced ma
Slide 5: Composite Materials
Composite Materials • A combination of a matrix and a reinforcement, which when combined gives properties superior to the COMPOSITE USE IN PLANES properties of the individual components • In the case of an aerospace composite, the reinforcement is the fibres and the matrix is the thermosetting resin
Slide 6: The Velocity Process
The Velocity Process Raw Material Structural Product Vacuum Bag Product Finished Part (1m diameter) Saving > 10% material and > 20% time 6 © Velocity Composites Plc - MAY 2023
Slide 7: Sustainability Driving Growth
Sustainability Driving Growth • Composites play an important role in light • Contracted business should deliver a • The aerospace sector has a clear weighting all new aircraft platforms, civil three-fold increase in sales from 2022-24 strategy to achieve net zero by 2050 and and defence demand for c
Slide 8: Where Velocity Sits in the Global Composites Industry
Where Velocity Sits in the Global Composites Industry VELOCITY TOTAL KIT PROVISION • Inventory Finance • Inventory Management Global Material Suppliers / Distributors • Demand Aggregation • Goods In • Quality Inspection • Kit Manufacturing • Warehousing • Goods Out / Transportation Global Primes / T
Slide 9: Value Proposition to Customers
Value Proposition to Customers Velocity’s main competitor is customers performing the work in-house © Velocity Composites Plc - MAY 2023 PROBLEM FOR CUSTOMERS THE VELOCITY SOLUTION • Materials are expensive and on long, fixed • Velocity has invested in advanced, real-time lead times (3-6 months) pro
Slide 10: European Sites and Customers
European Sites and Customers © Velocity Composites Plc - MAY 2023 Aerospace Composites 10 Aerospace Composites
Slide 11: Velocity's North American Site: Current & Potential Customers
Velocity’s North American Site: Current & Potential Customers © Velocity Composites Plc - MAY 2023 NC TN AR SC GA AL MS LA FL 11
Slide 12: Case Study: Alabama
Case Study: Alabama • Built to support the five-year Work Package Agreement that was announced in December 2022 with GKN Aerospace in the United States • Expected to be worth in excess of US$100 million in revenue over five years • Site successfully achieved AS9100, Rev. D approval in November 2022
Slide 13: Market and Growth Opportunities
Market and Growth Opportunities © Velocity Composites Plc - MAY 2023 Customer Annual Opportunity ($m) As shown on Maps in prior Qarbon $25m + slides: key customers each Velocity has identified Safran $25m + range from $25m to over $50m the following long term GKN $25m + pa of additional new business
Slide 14: Why invest in Velocity?
Why invest in Velocity? • Highly experienced Senior Team (Board and Execs) • Long term expanding end markets with $1b market opportunity in Western markets • Proven business model and first mover status • Ability to expand capabilities with High ROI • Proprietary and innovative technology • Long-ter
Slide 15: Questions?
© Velocity Composites Plc - MAY 2023 15 Questions?
Slide 16: Appendices
© Velocity Composites Plc - MAY 2023 16 Appendices
Slide 17: FY2022 Results - Summary Income Statement
FY2022 Results - Summary Income Statement © Velocity Composites Plc - MAY 2023 • Sales increase of 22.4% as the market begins to recover from the pandemic FY 2022 FY 2021 £000 £000 • The additional volume has generated a gross profit of Revenue 11,959 9,767 £2.7m, £0.2m ahead of the £2.5m achieved i
Slide 18: FY2022 Results - Summary Statement of Financial Position
FY2022 Results - Summary Statement of Financial Position © Velocity Composites Plc - MAY 2023 FY 2022 FY 2021 £000 £000 Non-current assets 3,541 2,830 • Increase in non-current assets of £0.7m driven by investment in technology and the Inventories 1407 877 development of the US manufacturing facilit
Slide 19: FY2022 Results - Summary Statement of Cash Flows
FY2022 Results - Summary Statement of Cash Flows © Velocity Composites Plc - MAY 2023 • A positive working capital movement and tax FY 2022 FY 2021 receipt have generated a cash inflow from £000 £000 operating activities of £0.3m Operating cash flows (490) (562) • £0.4m invested in technology and US
Slide 20: Outlook
Outlook • Focus on using the US Facility to • Wider adoption of composite target the US composite materials material technologies will market, it can double again in continue, with lightweighting and capacity. composite strength being critical • Remain significant opportunities for to all electrific
Slide 21: Revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - MAY 2023
Slide 22: 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