Victrex (VCT) investor relations material

Market Positioning and Growth Outlook

• Holds over 45% global PEEK market share, leveraging proprietary technology, vertical integration, and a premium brand to serve high-value, regulated sectors such as aerospace, medical, automotive, electronics, and energy.

• PEEK market forecasted to grow at 5% CAGR by volume from 2025–2031, with market value rising faster due to higher-value applications in medical and aerospace.

• 90% of portfolio/revenue is protected from Asian competition by technical, regulatory, and supply chain barriers, supporting resilience and premium pricing.

• Focused on applications where PEEK’s unique properties—high strength, chemical resistance, biocompatibility—are critical and hard to substitute, with deep engineering and customer relationships.

• Pursues growth in China via UK supply, targeting premium segments and leveraging a 17% CAGR over the past decade.

Strategic Transformation and Execution

• Leadership overhaul and decentralized, performance-focused operating model with clear P&L accountability to sharpen commercial focus and drive financial outcomes.

• Rationalized project portfolio, eliminated non-core/loss-making sites, and divested non-core businesses, achieving a 10% global headcount reduction and targeting at least £10m annualized cost savings by FY27.

• Introduced 70/20/10 resource allocation rule: 70% on near-term, 20% on mid-term, 10% on long-term opportunities.

• Relentless cost discipline, operational excellence, and digitalization to improve efficiency and margins, including enhanced asset utilization and manufacturing flexibility.

• Outsourced refining in China to match demand without additional capex, supporting profitability as volumes grow.

Commercial and Operational Initiatives

• Performance Materials targets growth in aerospace, automotive (especially EVs), electronics, and energy, with regional focus on North America and Asia-Pacific.

• Medical segment shifting focus to core materials and forms, away from finished device manufacturing, with growth expected from non-spine applications and new platforms.

• Both segments emphasize commercial excellence, pricing discipline, and tighter linkage between R&D and customer demand.

• Operational transformation program aims for high single-digit reduction in manufacturing costs and 300–400bps margin improvement, leveraging digital tools and process optimization.

• CapEx-light approach, focusing on extracting value from existing assets, reducing inventory, and no significant capacity investments planned.