Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Non-Deal Roadshow (November 2007)
31 slides from Unifi, Inc. New's roadshow presentation, Nov 9, 2007
Slide 1: Investor Meetings November 2007
INVESTOR MEETINGS November 2007
Slide 2: Cautionary Statement
Cautionary Statement Certain statements included herein contain forward-looking statements within the meaning of federal security laws about Unifi, Inc.'s (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections abou
Slide 3: Participants
Participants Bill Jasper Chief Executive Officer Ron Smith Chief Financial Officer
Slide 4: Business Overview
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Slide 5: Significance to Value Chain
POY Manufacturer Synthetic Fiber Manufacturer Fabric Producer Product Manufacturer Retailer Consumer Petrochemical Raw Material Trade-protected market environment Growing global market Increasing focus upon specialty yarns Strong sourcing power by retailers Strong North American production base Vert
Slide 6: Our Manufacturing Processes
Our Manufacturing Processes Texturing machines process POY multi- filament yarns Texturing is a combination of heating and stretching of the POY as it passes through the texturing unit Texturing Machines The friction disc unit is the heart of the texturing machine POY enters the top of the unit, pas
Slide 7: Attractive Industry Dynamics
Attractive Industry Dynamics In 2002, polyester replaced cotton to become world's number one fiber choice Polyester accounted for ~ 40% of world fiber consumption in 2006 Global polyester demand growth is projected at 6% to 7% annually Global Textile Fiber Demand by Type of Fiber Polyester is the wo
Slide 8: Sales Segmentation: Product, Geography and Market Diversity
Commodity 0.55 Specialty 0.35 PVA 0.1 No Origin Requirement 0.6 Origin compliant 0.4 Export 0.12 Automotive 0.12 Industrial 0.07 Other 0.02 Sales Segmentation Poly POY 0.14 Poly DTY 0.42 Nylon 0.27 Other 0.18 Sales by Product Sales by Product Type Unifi benefits from strong product, geographic and m
Slide 9: Sustainability of Regional Trade
Sustainability of Regional Trade Synthetic Performance T-Shirt Import competition primarily focused at the supply chain level Domestic US Fabric Regional Fabric Imported Garment 5.09 4.88 4.73 3.97 Import Duty (32%) 0.98 $4.88 $4.73 $4.95 $5.09 Regional Trade US and region trading partners provides
Slide 10: Product Segmentation
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Slide 11: Unifi Sales Segmentation
Unifi Sales Segmentation ___________________________ Source: Unifi internal estimates, OTEXA, Census, and FEB (Note: Automotive imports share is based on imports of actual automobiles) Sales by End-Use Segment Outlook Diverse product segmentation Various segments more or less susceptible to import c
Slide 12: Apparel Segment Trends
Apparel Segment Trends Sources of Apparel Consumed in the USA ___________________________ Source: Unifi Internal Estimates, OTEXA, American Apparel & Footwear Association, Mary O'Rourke and Census Bureau CAFTA region projected to grow during 2007-10 CAFTA trade legislation expected to stabilize due
Slide 13: Hosiery Segment Trends
Hosiery Segment Trends Sources of Socks Consumed in the USA ___________________________ Source: Unifi Internal Estimates, OTEXA, Mary O'Rourke, and Census Bureau Socks: US sock production expected to decline - CAFTA region production expected grow Significant opportunity for branded / performance pr
Slide 14: Furnishings Segment Trends
Furnishings Segment Trends Furnishings Segment Trends Upholstery Fabric Imports ___________________________ Source: Unifi Internal Estimates, OTEXA, Mary O'Rourke, and Census Bureau Upholstery: Cyclical based on consumer trends and housing market slow down Approximately 60% of upholstery fabrics con
Slide 15: Automotive Fabric Segment Trends
Automotive Fabric Segment Trends North American Light Vehicle Production Estimates ___________________________ Source: Unifi Internal Estimates, Autonews, PWC Auto Institute North American auto production projected to decline in 2007 and thereafter projected to grow at a very low rate of 1%. Growth
Slide 16: Industrial Fabric Segment Trends
Industrial Fabric Segment Trends Industrial Segment Categories ___________________________ Source: Unifi Internal Estimates, FEB. Source: Unifi Internal Estimates, FEB. Source: Unifi Internal Estimates, FEB. Broad Woven category includes end-uses like protective fabrics, tents, substrate fabrics, st
Slide 17: Unifi Sales and Outlook by Segment
Unifi Sales and Outlook by Segment ___________________________ Source: Unifi internal estimates Sales by End-Use Segment Outlook Apparel - stable volume over next 3 years Finished product import competition US contraction / regional growth Twisting legislation potential Hosiery - slight contraction,
Slide 18: Focused Business Strategy
EO Focused Business Strategy b UNIri.
Slide 19: Experienced Management Team
Experienced Management Team Management Team Unifi's leadership team and Board has significant experience Leadership Team Dedicated to customer relationships Reputation for quality and innovation Proven ability to integrate acquisitions Committed to implementing business plan Board of Directors Valua
Slide 20: Our Current Focus
Our Current Focus Return to profitability for domestic operations Improved utilization through focus on excellence in customer service Leveraging sourcing flexibility Relentless elimination of non-value added costs Development of our Chinese growth platform Chinese textile filament production growin
Slide 21: Oniiri.
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Slide 22: Branded Product Success
Branded Product Success Branded Product Sales and Gross Margins Unifi continues to provide what is next in the market Unifi Brands Unifi has grown premier value-added ("PVA") product sales from ~ $7 million in 2001 to over $50 million annually PVA products generate higher margins and re-investment e
Slide 23: The Unifi Sustainability Story
The Unifi Sustainability Story
Slide 24: The Repreve Story
The Repreve Story The Repreve Story
Slide 25: The Repreve Launch
The Repreve Launch The Repreve Launch
Slide 26: “LMM 9z
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Slide 27: Repreve's impact on our environment
Repreve's impact on our environment
Slide 28: Financial Overview
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Slide 29: Stable Liquidity & Capitalization
Stable Liquidity & Capitalization Continued positive cash flow generation; $1.3 billion of capex since 1992 - low future maintenance capex requirements ($10 to $12 million per year) Continued focus on working capital Cash usage in September 2007 quarter due to Kinston transition Significant savings
Slide 30: Capital Structure Covenants
Capital Structure Covenants $190 million of 11.5% 2014 Senior Secured Notes Unifi has a covenant-light stable capital structure Amended Revolving Credit Agreement No on-going maintenance covenants Limited ability to make restricted payments, such as dividends, stock repurchases, permitted investment
Slide 31: Questions
UNIFT . Questions