Ufp Technologies, Inc. · NASDAQ:UFPT
Ufp Technologies — Investor Presentation (2018)
36 slides from Ufp Technologies's investor presentation, 2018
Slide 1: Welcome Investors
UFP TECHNOLOGIES Welcome Investors
Slide 2: Safe Harbor Statement
Safe Harbor Statement Nasdaq: (UFPT) This presentation contains forward-looking information that involves risks and uncertainties, including statements about the Company’s prospects, financial performance targets and goals, anticipated advantages the Company expects to realize from its acquisition s
Slide 3: Who We Are
Who We Are Nasdaq: (UFPT) UFP Technologies is an innovative designer and custom converter of foams, plastics, and natural fiber materials. Headquarters: Newburyport, MA Ticker: UFPT Market Cap: $237 Million Share Count: 7.3 Million Annual Revenue: $148 Million Proforma* Annual Revenue: $191 Million
Slide 4: What We Do
What We Do Nasdaq: (UFPT) We combine our: • Materials expertise • Design engineering capabilities • Precision manufacturing capabilities to help our customers develop, improve, manufacture, or safely transport their products.
Slide 5: Materials Expertise
Materials Expertise Nasdaq: (UFPT)
Slide 6: Our Value Proposition
Our Value Proposition Nasdaq: (UFPT) ➢ Design engineering • 90+ members of the Engineering group • Culture of innovation • History of innovation
Slide 7: Our Value Proposition
Our Value Proposition Nasdaq: (UFPT) ➢ Precision manufacturing • 9 factories • 14 clean rooms • 2 design centers • Certified quality systems
Slide 8: Systems and Certifications
Systems and Certifications Nasdaq: (UFPT) ISO 9001 Quality Management ISO 13485 Medical Device FDA Registration ISO 14001 Environmental ISO/TS 16949 Automotive AS9100D Aerospace DDTC & ITAR registered ERP/CRM
Slide 9: Growth Strategy
Growth Strategy Nasdaq: (UFPT) Two-pronged growth strategy: 1) Internal growth: market to our sweet spot 2) Strategic acquisitions
Slide 10: Internal Growth Strategy
Internal Growth Strategy Nasdaq: (UFPT) Six Target Markets 2017 Proforma Revenue Mix* Automotive 12% 12% • Interior trim & structural • Acoustic/thermal insulation Medical 60%* • Weight reduction 11% • Infection prevention • Orthopedic implant packaging Consumer 11%* • Orthopedic soft braces 6% • Fo
Slide 11: Medical
Medical Nasdaq: (UFPT) $371 Billion Global Medical Device Market with a 5.2% CAGR1 UFP expertise in component solutions for orthopedics, infection prevention, wound care, and minimally invasive surgery Customers include 24 of the top 28 largest medical device manufacturers in the world2 UFP Differen
Slide 12: Medical Product Examples
Medical Nasdaq: (UFPT) Medical Product Examples:
Slide 13: Automotive
Automotive Nasdaq: (UFPT) 17 Million Light Vehicles Manufactured in the US1 UFP innovation in safety, comfort, noise control, and weight reduction leads to solutions that are lighter, stronger, and better able to manage heat, moisture, and sound. Our components are present on many of the world’s lea
Slide 14: Automotive Product Examples
Automotive Nasdaq: (UFPT) Automotive Product Examples:
Slide 15: Aerospace & Defense
Aerospace & Defense Nasdaq: (UFPT) Aircraft Volumes Expected to Double by 20371 While Defense Opportunities Lie in Long-term R&D UFP expertise in comfort & safety components, acoustic insulation, thermal insulation, engine components, uniforms & tactical gear, cases and inserts. UFP Differentiation
Slide 16: Aerospace & Defense Product Examples
Aerospace & Defense Nasdaq: (UFPT) Aerospace & Defense Product Examples:
Slide 17: Aerospace Components
Aerospace & Defense Nasdaq: (UFPT) Aerospace Components
Slide 18: Molded Fiber
Molded Fiber Nasdaq: (UFPT) Sustainable Packaging Has Grown to $210B Worldwide Market with Annual Growth Rate of 7.7% for the Next Decade1 Molded fiber widely accepted as the go-to environmentally friendly alternative to polymer-based materials. Customers include a wide range of well-known consumer
Slide 19: Molded Fiber Product Examples
Molded Fiber Nasdaq: (UFPT) Molded Fiber Product Examples:
Slide 20: Why Invest?
Why Invest? Nasdaq: (UFPT) Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive financial metrics
Slide 21: Why is UFP an exciting investment?
Why is UFP an exciting investment? Nasdaq: (UFPT) Significant market growth opportunities ➢ Addressable market is growing • Medical – aging population • Aerospace – safer, lighter aircraft ➢ Universe of specialty materials growing
Slide 22: Barriers to Entry
Barriers to Entry Nasdaq: (UFPT) Engineering Resources • Veteran engineering team for product design and development; more than 90 members of the engineering group Greater Access to Materials • Offers broad array of materials to meet customer needs • 50+ years in business and strong supplier relatio
Slide 23: National Footprint
National Footprint Nasdaq: (UFPT) 9 Manufacturing Facilities - Over 1 million Square Feet of Space Gain Efficiencies Asset utilization Shared best practices Shared resources
Slide 24: Management Team
Management Team Nasdaq: (UFPT) R. Jeffrey Bailly – Chairman, CEO & President 30-year history at the company. MBA, CPA. Ronald Lataille – CFO, SVP & Treasurer 20-year history at the company. CPA. Mitchell Rock – SVP Sales & Marketing 20-year history at the company. Chris Litterio – SVP Human Resource
Slide 25: Proven Growth Strategy
Creating Shareholder Value Proven Growth Strategy
Slide 26: Organic Growth Opportunity
Organic Growth Opportunity Nasdaq: (UFPT) Organic Growth (Target of 5% to 7%) ➢ Focus on higher growth markets (medical – approx. 60% of revenue and growing) ➢ Expand business with existing customers • Offer complementary products and services • Additional value-add services ➢ Gain market share with
Slide 27: Acquisition Growth Opportunity
Acquisition Growth Opportunity Nasdaq: (UFPT) Acquisition Growth (Target of 5% to 7%) ➢ Very fragmented market • No single company controls a large percentage of the market (UFP is one of the largest players) • 500+ companies (potential targets) • Many owner operators at or near retirement age • Rep
Slide 28: Acquisitive Growth Strategy
Acquisitive Growth Strategy Nasdaq: (UFPT) Continue to Focus on Higher Growth, Higher Margin Medical Opportunities that Create Value ➢ Become more valuable to our customers ➢ Strategic focus – new capability, geography, market penetration, materials, products ➢ Add scale / market share ➢ Look for sy
Slide 29: Financial Review
Revenue Growth, Margin Expansion & Strong Financial Profile FINANCIAL REVIEW
Slide 30: Financial Targets
Financial Targets Nasdaq: (UFPT) 3 to 5 Year Financial Targets 10% - 14% 27% - 28% 11% - 13% Revenue Growth Gross Margin Operating Margin
Slide 31: Sales
Sales Nasdaq: (UFPT) 10% to 14% Targeted Revenue Growth Internal Growth + Acquisitions In Millions $ 200 180 Dielectrics 43 2017 Revenue 160 $43 million 140 23% YTD 148 120 Growth 100 GAAP 80 2017 Revenue $148 million 60 40 20 0 2014 2015 2016 2017* YTD '17 YTD '18 * Proforma revenue includes $43 mi
Slide 32: Revenue Mix Shift
Revenue Mix Shift Nasdaq: (UFPT) Pro-forma Revenue Mix Shift 2014 to 2017 Medical Mix Increased from 36% to 60% 120,000 Dielectrics 2017 Revenue 100,000 $43 million 80,000 60,000 40,000 20,000 0 Medical* Consumer Automotive Electronics Industrial Aerospace & Defense 2014 2015 2016 2017* * Proforma r
Slide 33: Gross Profit/Margin
Gross Profit/Margin Nasdaq: (UFPT) Gross Margin Target: 27% to 28% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 30.0% 27-28%Target 25.0% 20.0% 15.0% 10.0% 2014 2015 2016 2017 Q217 2Q18
Slide 34: Adjusted Operating Income
Adjusted* Operating Income Nasdaq: (UFPT) Operating Income Margin Target: 11% to 13% Operating Leverage from Mix Shift + Acquisition Synergies + Efficiencies 14.0% 11-13% 12.0% Target 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2014 2015 2016 2017 2Q17 2Q18 * Adjusted Operating Income * Adjusted Operating Income
Slide 35: Growing Book Value
Growing Book Value Nasdaq: (UFPT) $18.00 $0.78 $17.00 $1.26 $16.00 $15.00 $1.10 $14.00 EPS $1.05 Book Value $13.00 $1.05 $12.00 $11.00 $10.00 2014 2015 2016 2017 YTD 2Q18 BV/ Share EPS
Slide 36: Thank you
UFP TECHNOLOGIES Thank you