Uniroyal Global Engineered Products, Inc. · OTC:UNIR

Uniroyal Global Engineered Products — Investor Presentation (December 2016)

40 slides from Uniroyal Global Engineered Products's investor presentation, December 2016

1. Slide 1: Uniroyal Global Engineered Products, Inc.

   UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. OTCQB: “UNIR” December 2016

2. Slide 2: Disclaimer

   Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on management's

3. Slide 3: Company Overview: Leading manufacturer of vinyl coated fabrics

   Company Overview The leading manufacturer for vinyl coated fabrics Tough and Soft to Touch Vinyl coated fabrics are an attractive economic and at times better performing alternative to leather and other synthetic materials Naugahyde® often known as Synthetic Leather or “Vegan” Leather • Durability •

4. Slide 4: Company Overview: Superior Performance, Color & Beauty

   Company Overview Delivering: Superior Performance, Color & Beauty Demanded without compromise by today's discriminating customer. We provide high quality, highly engineered products to many market sectors. Often providing customized solutions for individual customers requiring specific branded color

5. Slide 5: Current Revenue

   Current Revenue Our Products and Markets are uniquely diversified and provide us with an enviable balanced portfolio. Automotive and Light truck interiors 64% Heavy Truck, RV’s and Industrial Equipment 11% Commercial Seating and Medical Equipment 25%

6. Slide 6: Timeline

   Timeline Uniroyal Global Engineered Products 1930 1966 Industries started 1941 2003 The Nauga® using rubber- based Naugahyde. A synthetic was Introduced. Uniroyal Engineered 2016 1892 1920 rubber 1964 Products, Inc. substitute UNIROYAL U.S. Rubber U.S Rubber Naugahyde developed becomes Uniroyal 1986

7. Slide 7: North American and UK & European Manufacturing Facilities

   North American UK & European Manufacturing Facility Manufacturing Facility Stoughton, Wisconsin. Earby, Lancashire.  Plant size: 230,000 Sq. Ft.  Plant size: 250,000 Sq. Ft & 15 acres  Employees: 193  Employees: 227  Capacity: 13 Million Linear Yards  15 Million Linear Yards  Available capaci

8. Slide 8: Global Manufacturing Operations

   Global Manufacturing Operations Uniroyal Engineered Products Stoughton, WI, Uniroyal Global U.S.A Limited Earby, Lancashire, England Uniroyal Global  Manufacturing : 2 Shanghai  Design & Sales offices : 5 Planned Engineering  Global Distributors : 65 (Asia / Europe & Americas) and Sales Office 

9. Slide 9: Market Overview: Global Coated Fabrics Market

   Market Overview Global Coated Fabrics Market estimated at $16.5 billion Primary Market Sectors Polymer Coatings 85% $13.7 billion Rubber Coatings Fabric Backed Wall Coverings Polymer Coated Fabrics by Region Asia Pacific 50% $6.9 billion ~$5.0 North America 17% $2.3 billion billion Europe 19% $2.6 b

10. Slide 10: Market Overview: Polymer Coated Fabrics by Market Sector

    Market Overview Polymer Coated Fabrics by Market Sector Transportation 35% Protective Clothing 15% Industrial 12% Furniture 10% Other 28% Uniroyal's target market is the highly engineered, high margin segments across each market sector • Highly focused on seating applications • We avoid low margin c

11. Slide 11: Products

    UNIROYAL GLOBAL ENGINEERED PRODUCTS PRODUCTS

12. Slide 12: Design and Development

    Design and Development World Class Designers and Development team.  New color developments.  Extensive effects library (print/grain)  Pilot plant samples up to (600mm)  Full scale trials in 6-8 weeks

13. Slide 13: Research & Product Development

    Research & Product Development  UK & US Comprehensive Testing Labs  Lower VOC emissions  Technical Products developed in house  Anti-squeak  Experience technical team of 20 staff  Anti-soil  Proprietary product development  Flame Retardant/Low Smoke  Computer color match systems  Dye ingre

14. Slide 14: Quality and Environmental and Safety

    Quality and Environmental and Safety We take an absolute no compromise approach to quality.  ISO9001/2008  Environmental Management Systems certified to IS0 14001  TS 16949 certification  Compliance with REACH regulations  VDA 6.3 compliant  A member of Vinyl Plus Foundation  OEKO-TEX certifi

15. Slide 15: Markets

    UNIROYAL GLOBAL ENGINEERED PRODUCTS MARKETS

16. Slide 16: Serving our Global OEM's

    UNIROYAL GLOBAL — =a Serving our Global OEM’s ENGINEERED PRODUCTS @ <7 RENAULT IVECO Terex we rat SoS DEERE x3 OSX! CHRYSLER Mercedes-Benz S S

17. Slide 17: Automotive and Light Truck Interiors

    Automotive and Light Truck Interiors Seating Cut and sew, pour in place & low pressure molding. Instrument Panels Compression molding & vacuum forming. Door Casings Compression molding, vacuum forming & low pressure molding. Gear /Handbrake Cut and sew. Sun Visors HF welding. Headliners Compression

18. Slide 18: Automotive

    Automotive • Strong & successful presence in US, UK & Italy • We are seeing positive developments in Germany – Particularly as Germany will remain the volume producer of European automotive 5.6-5.8m vehicles produced there from 2016. • Spain & Sweden are certainly future targets for us. • OEM & VM D

19. Slide 19: Recreational and Hospitality

    Recreational and Hospitality  Niche markets driven by specific customer specifications.  Naugahyde – Strongest brand name in North America for high end robust applications.  European integration with Ambla and Naugahyde brands leading to growth opportunities  Continual innovation in product deve

20. Slide 20: Markets – Naugahyde Applications

    Markets – NAUGAHYDE Applications

21. Slide 21: Indoor and Outdoor Contract Seating

    Indoor and Outdoor Contract Seating  Hospitality  Residential Care  Stadium Seating

22. Slide 22: Indoor and Outdoor Contract Seating

    Indoor and Outdoor Contract Seating  Medical  Residential  Leisure  Mass Transportation

23. Slide 23: Thin Film Calendered Sheet

    Thin Film Calendered Sheet Medical  Mattress Covers  Sticking plasters Nuclear protection  Contamination suits  Disposable products Lamination  Caravan interiors  Shop fitting FR Products  Cinema screens  Upholstery Strollers & Nursery  Changing mats  Furniture

24. Slide 24: 2016 Company Objectives

    UNIROYAL GLOBAL ENGINEERED PRODUCTS 2016 COMPANY OBJECTIVES

25. Slide 25: 2017 Revenue Objectives

    2017 Revenue Objectives Deeper penetration into current automotive OEMs and expanding our customer base – Automotive OEM’s demand Global suppliers across multiple applications & regions – Focused on Design and technical advancements to lead growth in Auto markets Entrance into new German OEM’s – Tec

26. Slide 26: Strategic Performance Objectives

    Strategic Performance Objectives Continued Margin Expansion – Productivity investments • Expanded capacity in Europe with technology upgrades • Continued synergy from Acquisition integration – Driving lean manufacturing and continuous improvement across both manufacturing facilities – Ramp up unused

27. Slide 27: Strategic Growth Opportunities: Add-on acquisitions

    Strategic Growth Opportunities Additional accretive earnings through M&A activity Add-on acquisitions for existing markets • Rationalization of production capacity in the industry Complimentary Market Opportunities increase content on existing and new business to expand product offerings & increase

28. Slide 28: Geographic Expansion: Asia (China)

    Potential Strategic Growth Opportunities Geographic Expansion to complete the Global Footprint Asia (China) • 50% of Global Coated Fabrics Market • 42.3% of Auto production • Growing economy • Mass Transportation opportunity • Construction and Agricultural Market - Large • Hospitality and medical fa

29. Slide 29: Strategic Growth Opportunities: Positioned for Growth

    Strategic Growth Opportunities Positioned for Growth • Infrastructure investment in place to accelerate synergies with future acquisitions • Flexible capital structure provides financing capability for acquisitions Management estimates that with geographic expansion, new technology and product devel

30. Slide 30: Public Market

    UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. PUBLIC MARKET

31. Slide 31: Recent History

    Recent History • April of 2013 - Uniroyal Engineered products acquired Wardle Storeys • November of 2014 - Uniroyal merged into Invisa, Inc. (OTCQB:INSA) • April of 2015 - Changed company name to Uniroyal Global Engineered Products, Inc. and Changed Stock symbol “UNIR” • August 2016 – Preparing to f

32. Slide 32: Stock Position, Trend and Growth

    - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 7/1/14 8/1/14 9/1/14 10/1/14 11/1/14 12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 Stock Position, Trend and Growth 9/1/15 10/1/15 Daily Close Stock Price 11/1/15 12/1/15 1/1/16 2/1/16 3/1/16 UNIR Uniroyal Global Engineered Products, I

33. Slide 33: Investment Rationale

    Investment Rationale • Technologically advanced Company in an established industry • Superior cash generation • Above average revenue growth • Continued margin expansion • Deal integration synergies continue • Diversified platform offers cyclical defense • Has outperformed in declining markets • Add

34. Slide 34: Financial Information

    UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. FINANCIAL INFORMATION

35. Slide 35: Financials

    Financials (Unaudited) ($ in thousands) Income Statement Summary: 9 MO 9 MO 2015 2015 2016 Net Revenue $ 99,762 $ 76,486 $ 76,977 Gross Profit $ 21,949 $ 16,595 $ 17,736 22.0% 21.7% 23.0% Income * $ 5,561 $ 4,364 $ 4,844 5.6% 5.7% 6.3% EBITDA $ 8,629 $ 6,633 $ 7,372 8.6% 8.7% 9.6% * Income is before

36. Slide 36: Financials

    Financials (Unaudited) Revenue: • Net sales for the nine months 2016 increased $490,797 compared to 2015. • 2015 period was a 40-week period compared to a 39-week period in 2016. The extra week contributed approximately $500,000 to the decrease. • Net currency effect had a negative $1.7 million impa

37. Slide 37: Financial Outlook

    Financial Outlook • Positive growth in automotive sector in both the U.S. and Europe • Increasing penetration at existing customers • Expanding customer base • Introduced a new linen-textured vinyl-coated fabric called Casablanca • Negative currency translation effect from British Pound on income of

38. Slide 38: Balance Sheets

    Balance Sheets ($ in thousands) Balance Sheet Summary: 01/3/16 10/2/16 Cash $ 1,910 $ 1,558 Accounts receivable 14,209 15,452 Inventory 17,528 17,064 Other current assets 2,914 2,309 Fixed assets, net 14,003 13,609 Other assets 7,710 7,751 Total Assets $58,274 $57,743 Accounts payable and other curr

39. Slide 39: Equity Detail

    Equity Detail ($ in thousands) Stockholders’ Equity: 1/3/16 10/2/16 Preferred Shares, UEP Holdings, 5.0% dividend ($20,000,000 liquidation value) $ 618 $ 618 Preferred Shares, UEP Holdings 6.0% dividend ($15,000,000 liquidation value) 463 463 Preferred Shares, Engineered Products Acquisition Ltd, 5.

40. Slide 40: Questions

    Thank you for your interest in Uniroyal Global Engineered Products. Questions Request copy of our presentation or for additional material email to :- [email protected]

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