Universal Electronics Inc. · NASDAQ:UEIC
Universal Electronics — Sidoti Virtual Small Cap Conference 2024
24 slides from Universal Electronics's conference presentation, Sep 18, 2024
Slide 1: Universal Electronics Inc. Sidoti Virtual Small Cap Conference
Universal Electronics Inc. Sidoti Virtual Small Cap Conference Sept. 18 – 19, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains “forward-looking statements" within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipa
Slide 3: Our Mission: Create smarter living
OUR MISSION Create smarter living To create products and technologies that help everyday people easily discover and interact with the devices and services in their home. Universal Electronics Inc. 2024 3
Slide 4: UEI is the global leader in universal control solutions for the home
UEI is the global leader in universal control solutions for the home Our 600+ engineering and R&D team members worldwide design, develop, manufacture, ship and support millions of innovative consumer control products each year offered by the world’s leading brands in the consumer electronics, video
Slide 5: Universal Electronics Inc. 2024
Universal Electronics Inc. 2024 5
Slide 6: Universal Electronics Inc. 2024
Universal Electronics Inc. 2024 6
Slide 7: UEI at a glance
Expansion in Growing Climate Control & Home Automation Markets • Launched UEI TIDE family of Climate Control products including complete line of wired and wireless thermostats – as well as new product extensions • Introduced Butler family of white-label smart home hubs with the latest wireless RF UE
Slide 8: Attractive, growing markets worth $4.3B
Leadership position in entertainment device and services (app) discovery, setup and control has enabled us to develop core technology building blocks and interoperability expertise that is applicable in new, high-growth markets. Attractive, growing markets worth $4.3B Home Entertainment Climate Cont
Slide 9: Entertainment Control
Entertainment Control Overall home entertainment is still a growth channel • Primarily driven by SmartTV penetration, growth in streaming services and evolution into hybrid set-top boxes Traditional pay TV market decline shows signs of stabilizing • OS and TV platform syndication opportunities Move
Slide 10: Climate Control Opportunity
Climate Control Opportunity Climate control systems are growing and getting smarter Addressable HVAC market for residential climate control estimated at $1.8B and to be growing at 10.6% • North America registered the highest growth rate, followed by APAC and Europe. Market growth is driven by: • Mor
Slide 11: Climate Control Value Proposition
CLIMATE CONTROL VALUE PROPOSITION • Modular platform – potential application across multiple markets and channels • Complete smart thermostat line-up – cloud-native architecture with full suite of connectivity, interoperability, and AI support • Built-in end user and installer support - easy onboard
Slide 12: Smart Control Re-Imagined
INTELLIGENT CLIMATE CONTROL Smart Control Opportunity to penetrate high growth, HVAC OEM Re-Imagined Climate Control market Invest in developing thermostat solutions, sensors and software optimized for HVAC OEMs Creating innovative use cases to re-define the role of Climate Control in the home
Slide 13: Bringing Connectivity, Interoperability & Smarter Living to the Smart Home
BRINGING CONNECTIVITY, INTEROPERABILITY & “SMARTER LIVING” TO THE SMART HOME UEI has the expertise to bring seamless interoperability and deliver a derived value proposition. SMARTER LIVING Comfort and Convenience Safety and Security Customer CLOUD BUSINESS LOGIC PLUG/SWITCH AIR QUALITY LOCKS DOOR &
Slide 14: QuickSet delivers Smart Home interoperability
QuickSet ® delivers Smart Home • Launched in 2008, QuickSet ® has been deployed in over 600 million devices and is providing the world’s interoperability & increased user most comprehensive solution for smart home device engagement through personalized discovery and control. experiences • QuickSet ®
Slide 15: Partnering with global channel leaders
Partnering with global channel leaders Video Service Providers Consumer Electronics Consumer Accessories Climate Control Home Security Home Automation Universal Electronics Inc. 2024 15
Slide 16: Business Highlights
Business Climate Control Market Penetration • Secured design wins at major HVAC OEMs, including Daikin, Carrier, LG, Highlights Fujitsu, Toshiba-Carrier, Mitsubishi-Trane US (METUS) and Panasonic. • Engaged with 13 of the top 14 HVAC OEM brands in Europe that collectively represent over 80% of that
Slide 17: Expects profitability in the second half of 2024
EXPECTS PROFITABILITY IN THE SECOND HALF OF 2024 DRIVING LONG-TERM SALES & PROFITABILITY GROWTH • Winning additional business in higher growth connected home channel Adjusted Non-GAAP* ($M, except EPS) Q2 2024 Q2 2023 • Seeding net sales growth in latter half of 2024, 2025 and on Net Sales $90.5 $10
Slide 18: UEI Investment Rationale
UEI • Targeting attractive, growing connected home markets worth $4.3B Investment • Attracting top-tier customer base in new markets Rationale • Expanding product portfolio in growing climate control and home automation markets • Leveraging global scale and reach • Focusing on technology, product in
Slide 19: Financial Appendix
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Slide 20: Use of Non-GAAP Financial Metrics
USE OF NON-GAAP FINANCIAL METRICS In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GA
Slide 21: Reconciliation of GAAP to Adjusted Non-GAAP Financial Results
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts, unaudited) Universal Electronics Inc. 2024 21
Slide 22: Reconciliation of GAAP to Adjusted Non-GAAP Financial Results
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts, unaudited) Universal Electronics Inc. 2024 22
Slide 23: Reconciliation of GAAP to Adjusted Non-GAAP Financial Results
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts, unaudited) 23 Universal Electronics Inc. 2024
Slide 24: Reconciliation of GAAP to Adjusted Non-GAAP Outlook and Financial Results
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP OUTLOOK AND FINANCIAL RESULTS (In thousands, except per share amounts, unaudited) Universal Electronics Inc. 2024 24
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