Welcome to Victrex s Investor Day Spotlight on Growth. Thursday 10 October 2013

Transcription

1 Welcome to Victrex s Investor Day Spotlight on Growth Thursday 10 October 2013

2 20 years of Victrex: much more to come Celebrating the past building for the future Victrex celebrates its 20 th anniversary this month!

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 Spotlight on Growth: Agenda Welcome and introductions A strategy for growth: David Hummel Delivering growth in VPS: Tim Cooper Delivering growth in Invibio: Martin Court Summary and scale of our growth opportunities: David Hummel Q&A: All Lunch with Victrex Management team

5 A strategy for growth World leader in value creation through high performance polymer solutions Focused Market-Led Innovation Application & Technology Leadership PASSION INNOVATION PERFORMANCE

6 Driving growth through differentiation Victrex: a clear point of difference Drive product solutions that deliver more benefits for our customers

7 Driving growth through differentiation Victrex: a clear point of difference Drive product solutions that deliver more benefits for our customers

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 A clear focus on growth and value Strategic Marketing Identify highest growth opportunities Target meaningful applications Serve unmet market needs Application Focussed Technology Application Market Focussed Focussed Technology Establish performance benefits Technology excellence Market Orientated Commercial Customer targeting Local & global presence Secure Victrex specification

10 Geographical growth opportunities Existing geographies and new geographies 10 Automotive Aerospace Electronics Energy

11 Megatrends support growth opportunities Industry Trend & apparent need Automotive A Road to no wear Fuel efficiency, safety and reliability improvements resulting from consumer and regulatory trends Aerospace Electronics Fly lighter Weight reduction to reduce fuel cost a strategic imperative for the aerospace industry No heavy metal High quality sound in small spaces is a must for portable communications & entertainment devices Energy Pump up the volume Reliability, yield and safety in increasingly extreme environments: deeper, hotter, higher pressure, harsh environments and processes

12 Automotive: driving growth Mature vs. emerging markets Longer service lifetime Powertrain technology shift Regulation: safety and emissions Lower manufacturing costs TRENDS A Road to no wear Applications where PEEK provides durability APPLICATIONS Braking Clutch Transmission Gears systems Fuel systems Horizon 1 (today to 2 years) Horizon 2 (2-5 years) Horizon 3 (5 years +) TIMESCALE

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 Pipe Honeycomb Horizon 1 (today to 2 years) Horizon 2 (2-5 years) Horizon 3 (5 years +) TIMESCALE

14 Consumer Electronics: driving growth Mobile connectivity Short product lifecycles Energy management Thinner, smaller, smarter Portability TRENDS No heavy metal PEEK delivers light and durable components APPLICATIONS Semi conductors Small space acoustics Horizon 1 (today to 2 years) Office machines TIMESCALE Battery laminate Horizon 2 (2-5 years) Flex display Horizon 3 (5 years +)

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 Magma Separation systems Horizon 1 (today to 2 years) Horizon 2 (2-5 years) Horizon 3 (5 years +) TIMESCALE

16 A game changer in Oil & Gas? FLEXIBLE RISERS: A POTENTIAL GAME-CHANGER Oil & gas production at a fraction of the cost: 1/10 th the weight of steel in water Corrosion resistance: sea water, H2S, CO2 Low thermal conductivity Strategic Marketing Strategic Marketing Market Focussed Application Technology Focussed Technology Technology Compliance Control Reporting Accounting Market Orientated Commercial Commercial Oil & Gas majors Oil & Gas service companies

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 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 A clear focus on growth and value Medical talent to drive growth Strong customer relationships Identify unmet needs Strategic Marketing Application Focussed Technology Market Orientated Commercial Establish performance benefits Accelerate adoption Clinical benefits and costs Manufacturing capability: move up value chain

20 Geographical growth opportunities Stable market Increased regulation expected High growth market Stable market Performance driven reward Obama care Tiered healthcare system No established regulatory / insurance system Advanced regulatory system Major growth opportunities 20 Ageing global population Rising healthcare costs

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 Dental Trauma Knee Horizon 1 (today to 2 years) TIMESCALE Horizon 2 (2-5 years) Horizon 3 (5 years +)

22 Delivering growth and value: Trauma TRENDS Increasing: Ageing & Obese population OPPORTUNITIES Faster healing rates Increased durability Lifestyle demand Failure rates Patient awareness Strategic Marketing Application Focussed Technology Market Orientated Commercial Accelerated healing Enhanced fatigue performance Compliance Control Reporting Accounting Major manufacturers engaged in commercial programmes

23 Delivering growth and value: Dental TRENDS Increasing: Edentulous population Lifestyle demand OPPORTUNITIES Personalisation for comfort and fit Metal free Willingness to pay Digital dentistry Strategic Marketing Application Focussed Technology Market Orientated Commercial Flexible / durable Non-stress shielding Easy machining CE marked dental discs Dental lab certified Patient success

24 Delivering growth and value: Knee TRENDS Increasing: Ageing & Obese population Lifestyle demand Emerging market demand Strategic Marketing OPPORTUNITIES Patient dissatisfaction: Painful Loose & unstable Wear and infection Reduced bone loss Improved manufacturing effectiveness Application Focussed Technology Compliance Control Reporting Accounting Market Orientated Commercial Pre-clinical testing with development partner

25 Delivering growth and value: Arthroscopy TRENDS Increasing: Active ageing population Lifestyle demand Revision rates Strategic Marketing OPPORTUNITIES Combined: High strength Radiolucent Bone forming Smaller anchors High strength anchors Manufacturing flexibility Application Focussed Technology Market Orientated Commercial Unique solution deployed by all major players

26 Delivering growth and value: Spine TRENDS US and Europe stable Limited innovation China key focus for growth OPPORTUNITIES Improved bone apposition Supply chain efficiency 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 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 A strategy for growth World leader in value creation through high performance polymer solutions Focused Market-Led Innovation Application & Technology Leadership PASSION INNOVATION PERFORMANCE

29 Scale of our growth opportunities Victrex 2010 Victrex 2013 Victrex + development pipeline Victrex + horizon 2 eg Juvora, Magma Victrex + Horizon 2+3 eg Knee, Honeycomb Victrex + horizons 2+3 eg Knee, Honeycomb Horizon 1 (today to 2 years) Horizon 2 (2-5 years) Horizon 3 (5 years +) Note: Chart not to scale

30 Well placed for growth Further market penetration M&A GROWTH New applications Multiple and diverse growth opportunities New geographies New forms New materials

31 Q&A Thank you for listening