Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Investor Day (November 2014)
53 slides from Unifi, Inc. New's investor day presentation, Nov 5, 2014
Slide 1: Annual Investor Update Meeting November 6, 2014
Annual Investor Update Meeting November 6, 2014
Slide 2: Cautionary Statement
Cautionary Statement For use in the US - ”Unifi and REPREVE are registered trademarks of Unifi, Inc.” For International use - “Unifi and REPREVE are registered trademarks of Unifi, Inc. in the US and other countries” Certain statements included herein contain forward-looking statements within the me
Slide 3: Overview
Overview Diversified Manufacturer of Polyester and Nylon Textile Filament Yarns Founded in 1971 Sales Revenue $688 million (FY2014) Over 2,500 employees globally Well Established Downstream Customer Base
Slide 4: Global Network
Global Network Source: Unifi FY 2014 Form 10-K Manufacturing / Office Sales / Marketing Office Joint Venture / Equity Affiliate
Slide 5: Operations
Operations *rPET Chip: Recycled Polyester Chip PET and rPET* Chip POY Manufacturing Yarn Texturing Value-Added Processes Dyeing, Covering, Twisting, Beaming, Solution and Package Dyed
Slide 6: Business Strategy
Business Strategy Control costs through rigorous and disciplined improvement process Rigorous price management Grow REPREVE Polyester and Nylon sales Corporate-wide commitment to sustainability Repreve Renewables Increase yarn sales in growing regional market Increase yarn sales in Brazil and China
Slide 7: Stock Performance
Stock Performance $0.57/sh. $0.84/sh. $1.52/sh. Basic EPS for FY 18.9MM Shares (Per the Unifi FY 2014 Proxy Statement) Source: Unifi FY 2014 Form 10-K
Slide 8: Diverse and Growing Markets
Diverse and Growing Markets
Slide 9: Diverse Market Segments
Diverse Market Segments Source: Unifi Internal Estimates
Slide 10: Global Textile Fibers Market
Global Textile Fibers Market 13% Source: PCI Fibers
Slide 11: US Synthetic Apparel Supply
US Synthetic Apparel Supply * Region includes NAFTA, CAFTA, Colombia FTA, and Peru FTA Regional supply share stabilized, volume in units growing at the rate of 5 to 6% per year …. Source: OTEXA, Census Bureau, DOC, Federal Reserve, and Internal Estimates
Slide 12: Regional Markets
Regional Markets Regionally compliant yarn required in free trade agreements like NAFTA, CAFTA, Colombia FTA, Peru FTA, and Berry Amendment…. Source: Unifi Internal Estimates
Slide 13: Regional Growth = DTY Investment
Regional Growth = DTY Investment Polyester textured yarn (DTY) capacity expansion to support the regional growth in specialty products…
Slide 14: Develop New PVA Products and Technologies
Develop New PVA Products and Technologies
Slide 15: Global PVA Growth to 15% AAGR
Global PVA Growth 12 to 15% AAGR Source: Unifi Internal Estimates
Slide 16: PVA Brands and Technologies
PVA Brands and Technologies Sorbtek more raya rb : fe AUQUSEE = dle RE P@E VE’ rent et cad “4 oa waterwise- = COLOR TECHNOLOSY re Ee xx — srdchyans yu
Slide 17: Investment For Mix Enrichment
Investment For Mix Enrichment Small lot POY spinning capacity to support PVA yarn growth… Specialty Yarns Water Repellant Cat Disperse Thermal Regulation Odor Control Flame Retardant
Slide 18: Recycling and Sustainability
Recycling and Sustainability
Slide 19: REPREVE. It's What's in It.
19 REPREVE. Its What’s in It.. Consistent Quality, Drop-in replacement Bottle and Fiber Waste Bottle Flakes PCR Chips REPREVE Fiber Made from recycled materials; including post-consumer plastic bottles and post-industrial fiber waste Available Globally
Slide 20: Recycling Plastic Bottles
20 Recycling Plastic Bottles
Slide 21: REPREVE brand partners
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Slide 22: REPREVE Helps Other Brands Tell a Great Eco-Story
REPREVE HELPS OTHER BRANDS REP@EVE TELL A GREAT ECO-STORY. IT's WHAT'S INIT
Slide 23: REPREVE Recycling Center
23 REPREVE Recycling Center 42 MILLION POUNDS/YEAR 72 MILLION POUNDS/YEAR 100 MILLION POUNDS/YEAR Future Investment FY 2016 (est. December 2015) 23 REPREVE Recycling Center 42 MILLION POUNDS/YEAR 72 MILLION POUNDS/YEAR 100 MILLION POUNDS/YEAR Future Investment FY 2016 (est. December 2015)
Slide 24: Marketing Partnerships
Marketing Partnerships PROUD RECYCLING PARTNER
Slide 25: REPREVE #TurnitGreen Week
25 REPREVE #TurnitGreen Week UNC Game: December 3, 2014
Slide 26: Game Day December 7th
26 Game Day December 7th, Turn the Detroit Lions game Green against the Tampa Bay Bucs 65,000 fans waving REPREVE Towels; each made with 3 recycled bottles Engaging consumers to show how they can Make The Smart Throw Winner will meet and compete against Matthew Stafford
Slide 27: 27
27
Slide 28: Consumer Marketing
28 Consumer Marketing In-Store P.O.P. Hand Tags Bottle Count Indicator
Slide 29: Commitment to Sustainability
29 Commitment to Sustainability Actively engaged in eliminating waste and reducing consumption across all our facilities Energy Labor Packaging Transportation It has become part of our culture All our US operations are landfill-free Committed to recycling Post Consumer and Post Industrial materials.
Slide 30: How'd we do it?
30 How'd we do it?
Slide 31: Joint Ventures and Equity Affiliates
31 Joint Ventures and Equity Affiliates
Slide 32: Unifi Nilit Fibers (UNF)
32 Unifi Nilit Fibers (UNF) UNF provides a stable, quality supply of type 6.6 POY, which is the raw yarn for Unifi to produce nylon textured and covered yarns… Martinsville, VA Migdal HaEmek, Israel
Slide 33: Parkdale America LLC
33 Parkdale America LLC 34% investment in Parkdale America LLC A US$ 800 million cotton yarn spinning company Source: PAL’s Audited Financials included within Unifi’s FY 2014 10K-A
Slide 34: Repreve Renewables
34 Repreve Renewables A long-term development business venture Success with trials in the poultry bedding market Commercial scale trials with leading poultry integrators First supply contract signed
Slide 35: Key Financial Trends
35 Key Financial Trends
Slide 36: Profitability Trends
36 Profitability Trends Source: Unifi FY 2014 Form 10-K
Slide 37: Profitability By Segment
37 Profitability By Segment Source: Unifi FY 2014 Form 10-K
Slide 38: Cash Flow, Balance Sheet Highlights
38 Cash Flow, Balance Sheet Highlights Source: Unifi FY 2014 Form 10-K and FY 2015 1st Quarter 10-Q
Slide 39: Operational Excellence and Future Focus
39 Operational Excellence and Future Focus
Slide 40: Operational Excellence
40 Operational Excellence Culture of process improvement success leading to measurable annualized cost savings…
Slide 41: Business Strategy
41 Business Strategy
Slide 42: Future Focus
42 Future Focus Recent Accomplishments: Future Focus:
Slide 43: Capital Projects
43 Capital Projects $6.4 $8.8 Source: Unifi FY 2014 Form 10-K and Internal Estimates
Slide 44: FY 2015 FY 2017 targets
44 FY 2015 FY 2017 1.7x 1.7x 8.4% 9.7% ~10.0% Source: Unifi FY 2014 Form 10-K and Internal Estimates
Slide 45: Thank You! Questions…
45 Thank You! Questions…
Slide 46: About Unifi
46 About Unifi: Unifi, Inc. is a multi-national manufacturing company that produces and sells textured and other processed yarns designed to meet customer specifications, and premier value-added (“PVA”) yarns with enhanced performance characteristics. Unifi maintains one of the textile industry’s mo
Slide 47: Appendix
47 Appendix
Slide 48: Unifi Supply Chain
48 Unifi Supply Chain Polyester Raw Material Chain Nylon Raw Material Chain
Slide 49: Polyester Raw Material Trends
49 Polyester Raw Material Trends New PX (feedstock to PTA) global capacity additions between 2014 and 2017 expected to ease supply tightness.. Polyester raw materials’ costs impacted by supply/demand of key ingredients like PX/PTA and MEG; and crude oil prices… Source: PCI X&P and PCI Fibers
Slide 50: The Trans-Pacific Partnership (TPP)
THE. TRANS-PAGIFIC PARTERNSHIP (TPP) a |
Slide 51: Non-GAAP financial measures
51 Certain non-GAAP financial measures included herein are designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") because management believes such measures are useful to investors. These non-GAAP
Slide 52: Limitations of EBITDA measures
52 In evaluating EBITDA, Adjusted EBITDA Including Equity Affiliates, and Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments included herein. Our presentation of EBITDA, Adjusted EBITDA Including Equity Affiliates and Adjusted EBITDA should not
Slide 53: Unifi. The Makers of REPREVE
UNIFI. THE MAKERS OF REPREVE®