Investor Presentation
January 2022
Headlines
Strategic Realignment
- Renewal of top customers
- Improved cost-base
- Strengthened operations
- Invested in technology
- Positive outlook
2022 JAN - Plc Composites Velocity ©
2
Business Development and Outlook
FY21
- Contract renewals from all major UK customers
- New business wins
- Investment in technology and people
- Diversification into defence and non-aerospace applications
OUTLOOK
- Global air travel starting to recover, particularly in North America
- Airbus and Boeing issuing positive forecasts
- Company well positioned for growth with improved operational gearing
- Longer term sustainability trends in our favour
© Velocity Composites Plc - JAN 2022 | 3 |
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 |
Air Traffic compared to equivalent month in 2019 (RPKs* base 100)
140
120 RPKs = Revenue Passenger Kilometers
100
80
60
40 IATA Actuals
20
corrider: | expected | timeline | |
Recovery | level | ||
to reach 2019 traffic | |||
2019 level
depending on aircraft | |
platform | |
• | Airlines recapitalised |
and older fleet retired | |
• | Airlines investing |
in newer fleets | |
for efficiency and | |
sustainability whilst | |
credit costs are low |
2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
Source: Airbus (www.airbus.com/en/products-services/commercial-aircraft/mar-ket/global-market-forecast) OAG, FR24, SABRE, IATA, IHS, Markit, OWID
© Velocity Composites Plc - JAN 2022
4
Sustainability key to future aircraft demand
Passenger Aircraft Fleet Renewal - Transition to 'Net Zero'
New Generation Aircraft - 25% lower carbon footprint *
• Velocity well represented |
on the platforms leading |
the move to sustainable |
No of passenger aircraft in service**
50,000
45,000 | History Outlook | |
40,000 | ||||||||
35,000 | Only 13% of 2019 fleet | |||||||
30,000 | 13% | |||||||
in service were new | ||||||||
25,000 | generation aircraft | |||||||
20,000 | ||||||||
15,000 | ||||||||
10,000 | ||||||||
5,000 | ||||||||
2000 | 2005 | 2010 | 2015 | 2019 | 2025 | 2030 | 2035 | 2040 |
1st GENERATION AIRCRAFT | 2nd GENERATION AIRCRAFT | PREVIOUS GENERATION AIRCRAFT |
Airbus: A300, DC9, DC10, 707, | A310, MD11, MD80, MD90, | A320 Fam., A330, A340, 717, |
727, 737, 747 | 737, 747, 757, 767, F100 | 737NG, 747, 777 |
1ST + 2ND + PREVIOUS GENERATION** AIRCRAFT
NEW GENERATION** AIRCRAFT
AIRBUS: A220, A320neo, A330neo, A350, A380,
BOEING: 737max,777x, 787,& other new programmes
CURRENT VELOCITY PROGRAMMES
aviation | |
• | Composites key to reduce |
weight and maintenance | |
costs of aircraft | |
• | Aerostructure |
manufacturing costs must | |
be controlled - supported | |
by Velocity's waste | |
reduction |
Source: Cirium, Airbus (www.airbus.com/en/products-services/commercial-aircraft/market/global-mar- | 5 | |
© Velocity Composites Plc - JAN 2022 | ket-forecast - * page 13 & 21) ** Western built passenger aircraft above 100 seats - pax aircraft only. | |
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