Victrex - Investor Day Presentation 2013


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Victrex - Investor Day Presentation 2013

  1. 1. Welcome to Victrex’s Investor Day ‘Spotlight on Growth’ Thursday 10 October 2013
  2. 2. 20 years of Victrex: much more to come… Celebrating the past – building for the future Victrex celebrates its 20th anniversary this month!
  3. 3. Executive Management Team (EMT) David Hummel CEO Steve Barrow Group Finance Director Tim Cooper Managing Director VPS Martin Court Managing Director Invibio John Devine Emerging Businesses Director Kenny Gilmour Operations Director Suzana Koncarevic General Counsel & Company Secretary Carolyn Macnab Group HR Director
  4. 4. Spotlight on Growth: Agenda 11.00 Welcome and introductions 11.05 A strategy for growth: David Hummel 11.15 Delivering growth in VPS: Tim Cooper 11.40 Delivering growth in Invibio: Martin Court 12.10 Summary and scale of our growth opportunities: David Hummel 12.20 Q&A: All 12.45 Lunch with Victrex Management team
  5. 5. A strategy for growth World leader in value creation through high performance polymer solutions Focused Market-Led Innovation PASSION Application & Technology Leadership INNOVATION PERFORMANCE
  6. 6. Driving growth through differentiation Victrex: a clear point of difference Drive product solutions that deliver more benefits for our customers
  7. 7. Driving growth through differentiation Victrex: a clear point of difference Drive product solutions that deliver more benefits for our customers
  8. 8. Victrex Polymer Solutions – Tim Cooper Automotive Aerospace Electronics Energy Strategic Focus Focus on PEEK in Auto, Aero, Electronics and Energy Exploit downstream integration opportunities (eg Speciality Products) and extend into other proven markets
  9. 9. A clear focus on growth…and value  Identify highest growth opportunities  Target meaningful applications  Serve unmet market needs Strategic Marketing Application Focussed Technology Application Market Focussed Focussed Technology Technology  Establish performance benefits  Technology excellence Market Orientated Commercial  Customer targeting  Local & global presence  Secure Victrex specification
  10. 10. Geographical growth opportunities Existing geographies and new geographies 10 Automotive Electronics Aerospace Energy
  11. 11. Megatrends support growth opportunities Industry Trend & apparent need ‘A Road to no wear’ Automotive Aerospace Fuel efficiency, safety and reliability improvements resulting from consumer and regulatory trends ‘Fly lighter’ Weight reduction to reduce fuel cost – a strategic imperative for the aerospace industry ‘No heavy metal’ Electronics High quality sound in small spaces is a must for portable communications & entertainment devices ‘Pump up the volume’ Energy Reliability, yield and safety in increasingly extreme environments: deeper, hotter, higher pressure, harsh environments and processes
  12. 12. Automotive: driving growth Mature vs. emerging markets Powertrain technology shift Longer service lifetime Regulation: safety and emissions Lower manufacturing costs TRENDS ‘A Road to no wear’ Applications where PEEK provides durability APPLICATIONS Clutch Transmission Braking systems TIMESCALE Fuel systems Horizon 2 (2-5 years) Horizon 1 (today to 2 years) Gears Horizon 3 (5 years +)
  13. 13. Aerospace: driving growth Fuel cost / lighter weight Longer service lifetime Order backlog Regulatory barriers Lower manufacturing costs TRENDS ‘Fly lighter’ Applications where PEEK provides lighter weight APPLICATIONS Thermal acoustic blanket Brackets Fasteners TIMESCALE Honeycomb Horizon 2 (2-5 years) Horizon 1 (today to 2 years) Pipe Horizon 3 (5 years +)
  14. 14. Consumer Electronics: driving growth Mobile connectivity Short product lifecycles Thinner, smaller, smarter Energy management Portability TRENDS ‘No heavy metal’ – PEEK delivers light and durable components APPLICATIONS Semi conductors Small space acoustics Office machines TIMESCALE Flex display Horizon 2 (2-5 years) Horizon 1 (today to 2 years) Battery laminate Horizon 3 (5 years +)
  15. 15. Energy: driving growth Increasing energy consumption Dwindling energy reserves Energy self sufficiency High oil price Extreme environments TRENDS ‘Pump up the volume’ Solutions for extreme environments durability and increased yield APPLICATIONS Seals Connectors Compressor plates Bearings & bushings TIMESCALE Separation systems Horizon 2 (2-5 years) Horizon 1 (today to 2 years) Magma Horizon 3 (5 years +)
  16. 16. A game changer in Oil & Gas? FLEXIBLE RISERS: A POTENTIAL GAME-CHANGER… Oil & gas production at a fraction of the cost: • 1/10th the weight of steel in water • Corrosion resistance: sea water, H2S, CO2 • Low thermal conductivity Strategic Strategic Marketing Marketing Compliance Control Market Focussed Reporting Technology Application Accounting Focussed Technology Technology • Oil & Gas majors • Oil & Gas service companies Market Orientated Commercial Commercial
  17. 17. Summary: VPS actively driving growth • Growing demand for new solutions and proven technology • Strong and diverse pipeline • Moving downstream (eg Speciality Products) • Investment opportunities New capacity to support future growth On plan: completion 2015
  18. 18. Invibio Biomaterial Solutions – Martin Court Strategic Focus Deliver value-creating solutions, based on PEEK and other enabling polymers in: Spine, Arthroscopy, Trauma, Dental and Orthopedics
  19. 19. A clear focus on growth…and value  Medical talent to drive growth  Strong customer relationships  Identify unmet needs Strategic Marketing Application Focussed Technology  Establish performance benefits  Accelerate adoption Market Orientated Commercial  Clinical benefits and costs  Manufacturing capability: move up value chain
  20. 20. Geographical growth opportunities • Stable market • Increased regulation expected • Stable market • Performance driven reward • ‘Obama’ care 20 • High growth market • Tiered healthcare system • No established regulatory / insurance system Ageing global population Rising healthcare costs • Advanced regulatory system • Major growth opportunities
  21. 21. Invibio growth overview Performance driven reward Price pressure (existing devices) New solutions demanded Regulatory barriers Emerging market demand TRENDS PEEK provides clear clinical benefits and superior performance APPLICATIONS Spine Arthroscopy Horizon 1 (today to 2 years) Dental Trauma Horizon 2 (2-5 years) TIMESCALE Knee Horizon 3 (5 years +)
  22. 22. Delivering growth and value: Trauma TRENDS OPPORTUNITIES Increasing: • Faster healing rates • Ageing & Obese population • Increased durability • Lifestyle demand • Failure rates • Patient awareness Strategic Marketing Market Orientated Commercial Application Focussed Technology • • Accelerated healing Enhanced fatigue performance Compliance Control Reporting Accounting • Major manufacturers engaged in commercial programmes
  23. 23. Delivering growth and value: Dental TRENDS OPPORTUNITIES Increasing: • • Lifestyle demand • comfort and fit Edentulous population • Personalisation for Willingness to pay • • Strategic Marketing Digital dentistry Application Focussed Technology • • • Flexible / durable Non-stress shielding Easy machining Metal free Market Orientated Commercial • • • CE marked dental discs Dental lab certified Patient success
  24. 24. Delivering growth and value: Knee TRENDS OPPORTUNITIES Increasing: Patient dissatisfaction: • Ageing & Obese population • Painful • Lifestyle demand • Loose & unstable • Emerging market demand • Wear and infection Strategic Marketing Market Orientated Commercial Application Focussed Technology • • Reduced bone loss Improved manufacturing effectiveness Compliance Control Reporting Accounting • Pre-clinical testing with development partner
  25. 25. Delivering growth and value: Arthroscopy TRENDS OPPORTUNITIES Increasing: Combined: • Active ageing population • High strength • Lifestyle demand • Radiolucent • Revision rates • Bone forming Strategic Marketing Application Focussed Technology • • • Smaller anchors High strength anchors Manufacturing flexibility Market Orientated Commercial • Unique solution deployed by all major players
  26. 26. Delivering growth and value: Spine TRENDS OPPORTUNITIES • US and Europe stable • Improved bone apposition • Limited innovation • Supply chain efficiency • China key focus for growth • Geographic expansion Strategic Marketing Application Focussed Technology • • • Focus on fusion PEEK-OPTIMA® HA Enhanced Eliminates need for coating Market Orientated Commercial • • Enhanced product launched for Europe & US Chinese domestic approvals increasing
  27. 27. Summary: Invibio actively driving growth • Proven clinical benefit in high incidence procedures • Delivery of higher patient satisfaction • Application development • Leverage PEEK-OPTIMA proven performance • Invibio regulatory expertise / market access
  28. 28. A strategy for growth World leader in value creation through high performance polymer solutions Focused Market-Led Innovation PASSION Application & Technology Leadership INNOVATION PERFORMANCE
  29. 29. Scale of our growth opportunities Victrex 2010 Victrex 2013 Victrex + development pipeline Horizon 1 (today to 2 years) Note: Chart not to scale Victrex + horizon 2 eg Juvora, Magma Horizon 2 (2-5 years) Victrex + Victrex + horizons 2+3 2+3 Horizon eg Knee, eg Knee, Honeycomb Honeycomb Horizon 3 (5 years +)
  30. 30. Well placed for growth Further market penetration New applications M&A GROWTH New geographies New forms New materials Multiple and diverse growth opportunities
  31. 31. Q&A Thank you for listening