Victrex (VCT) Investor presentation summary

Strategic growth and market positioning

• Targeting 5-7% core revenue CAGR by 2028, with potential upside to 8-10% as mega-programmes commercialise.

• Over 1,100 employees serve more than 40 countries, leveraging strong megatrends for long-term growth.

• Focused on expanding the market for PEEK polymer and capturing new revenue streams through innovation.

• Major investment phase is concluding, underpinning future growth with expanded global manufacturing assets.

• New China manufacturing facility with 1,500-tonne capacity to support portfolio extension and commercial ramp-up in FY25.

Product innovation and differentiation

• PEEK and PAEK polymers offer a unique combination of mechanical, chemical, and thermal properties.

• Integrated production enables manufacturing of all PEEK types, differentiating from competitors.

• Product forms include polymers, parts, gears, composites, films, and medical devices.

• 92% of R&D investment supports sustainable products, with new grades for additive manufacturing.

• Manufacturing capabilities span the UK, China, and the Netherlands, supporting innovation in composites and 3D printing.

Financial performance and capital allocation

• FY24 profit before tax impacted by trading, medical destocking, and asset utilisation, but cost control remains strong.

• Balance sheet shows net assets of £501.0m in FY23, with increased inventories and borrowings.

• Capital allocation prioritises growth investment, with options for special dividends, share buybacks, and progressive regular dividends.

• Normalised capex is 8-10% of sales, with flexibility for excess capital distribution.