Ufp Technologies, Inc. · NASDAQ:UFPT
Ufp Technologies — Investor Presentation (June 2024)
29 slides from Ufp Technologies's investor presentation, Jun 11, 2024
Slide 1: Welcome Investors June 2024
Welcome Investors March 2022 Welcome Investors June 2024
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements in this presentation may be considered “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward - looking statements generally relate to future events
Slide 3: Who We Are
Who We Are UFP Technologies is an innovative designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. 3 Ticker: UFPT Headquarters: Newburyport, MA Annual Revenue: ~$425 million 3,000+ Employees/ Temps Established
Slide 4: We help our customers develop, improve, manufacture, or protect their products
We help our customers develop, improve, manufacture, or protect their products through: 4 Design & engineering capabilities Materials expertise Strategic locations Precision manufacturing Shaping Innovation
Slide 5: Our Process
Our Process Innovative process from design and engineering to manufacturing and delivery 5
Slide 6: Product Development Business
Product Development Business 6 We bring deep experience in flexible material - based device manufacturing, from components and packaging, to final device assembly High Margin Added Expertise Stronger Customer Relationships Long Term Manufacturing 1 2 3 4 BENEFITS
Slide 7: Primary Focus Areas
Primary Focus Areas 87% 13% • Automotive • Aerospace & Defense • Industrial / Other Single use and single patient, polymer based medical devices and sterile packaging. Custom engineered components and protective solutions incorporating highly specialized materials for: 7 * As of December 31, 2023
Slide 8: MedTech
MedTech 8 1. Fortune Business Insights - $518 billion as of 2023. 6.3% CAGR for a forecast period of 2024 - 2032. 2. Medical Design & Outsourcing 2023 MedTech Big 100. 3. As of December 31, 2023 MedTech Revenue By Segment 3 $518 billion, 6.3% CAGR 1 Global Medical Device Market Customers include 25
Slide 9: MedTech Portfolio
MedTech Portfolio Robotic Drapes Revascularization Device Needleless Injection Port Cleaner MedSurg Bed Negative Pressure Wound Therapy Compression Device 9
Slide 10: Advanced Components
Advanced Components 10 INDUSTRIAL AUTOMOTIVE AEROSPACE & DEFENSE Highly engineered components and packaging used in targeted large and growing niches Our products are present on many of the world’s leading brands including GM, Ford, Mercedes, Tesla, Boeing and Lockheed Martin UFP Differentiation Pre
Slide 11: Advanced Components Product Portfolio
Advanced Components Product Portfolio Military Gear Protective Helmets Law Enforcement Military Protective Case Systems Automotive Interior Trim 11
Slide 12: Growth Strategy
Growth Strategy 12 Internal Growth: Market To Our Sweet Spot Strategic Acquisitions TWO - PRONGED
Slide 13: Organic Growth Opportunity
13 Organic Growth Opportunity Focus on high growth niche segments (MedTech – approximately 87% of revenue and growing) » Single - use, single - patient » Customer funded development Market to our sweet spot and differentiated capabilities » Leverage technology differentiation » Engineering resources
Slide 14: Acquisition Growth Opportunity
14 Acquisition Growth Opportunity Continue to Focus on Higher - Growth, Higher - Margin MedTech Opportunities that Create Value » Become more valuable to our customers » Strategic focus – new capability, geography, growing market segment, materials » Add scale » Look for synergistic opportunities »
Slide 15: International Footprint
International Footprint 15 Galway, Ireland » Cleanroom manufacturing » Catheter & guidewire dispensers » Finished devices Tijuana, Mexico » Cleanroom manufacturing » MedSurg mattresses » Catheter & guidewire dispensers Costa Rica » Cleanroom manufacturing » Catheter & guidewire dispensers » Finished
Slide 16: Why Invest?
Why Invest? 16 Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive financial metrics
Slide 17: Significant Market Growth Opportunities
17 Significant Market Growth Opportunities Market Focused On » Better Patient Outcomes » Infection Prevention » Reducing Healthcare Costs Addressable market is growing International Footprint » Bringing New Opportunities
Slide 18: Barriers To Entry
Barriers To Entry » Advanced systems (extensive quality certifications) » In addition to existing equipment, engineers will design product specific innovations in order to meet customer needs Systems » In - house custom equipment manufacturing capabilities Custom Equipment » 20 patents relating to f
Slide 19: Management Team
Management Team 19 Chris Litterio SVP, Human Resources & General Counsel Former Managing Partner and head of employment law at a major Boston law firm; 7 - years at the company Steve Cardin VP & COO, MedTech 28 years in the medical device industry; 5 - years at the company Jason Holt CCO Former VP &
Slide 20: Proven Growth Strategy Creating Shareholder Value
Proven Growth Strategy 20 Creating Shareholder Value
Slide 21: Financial Targets
Financial Targets 21
Slide 22: Financial Targets
Financial Targets 22 3 to 5 Year Financial Targets 12 - 18% Revenue Growth 28 - 31% Gross Margin 15 - 18% Operating Margin
Slide 23: Targeted Revenue Growth
12% to 18 % Targeted Revenue Growth Internal Growth + Acquisitions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2019 2020 2021 2022 2023 March 2024 TTM 23 Revenue TTM = 12 - month period ended March 31, 2024
Slide 24: Gross Margin Target – 28% to 31%
Gross Margin Target – 28% to 31% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 24 Gross Profit Margin Target: 28 - 31% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2018 2019 2020 2021 2022 2023 Q1 2024
Slide 25: Operating Margin Target - 15% to 18%
Operating Margin Target - 15% to 18% Operating leverage from mix shift + acquisition synergies + efficiencies 25 Adjusted* Operating Margin Target: 15 - 18% *See non - GAAP reconciliation on slide 29 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2018 2019 2020 2021 2022 2023 Q1 2024
Slide 26: Growing Book Value
Growing Book Value 26 $1.93 $2.63 $1.77 $2.09 $5.45 $5.83 $6.20 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 2018 2019 2020 2021 2022 2023 Mar 2024 TTM * EPS Book Value / Share Book Value EPS 1 1. TTM = The 12 - month period ended March 31, 2024
Slide 27: UFP Historical Stock Performance
UFP Historical Stock Performance 20 Years 27 *Measured as the percent increase from May 20, 2004 through May 20, 2024. Ϭ й ϭϬϬϬ й ϮϬϬϬ й ϯϬϬϬ й ϰϬϬϬ й ϱϬϬϬ й ϲϬϬϬ й ϳϬϬϬ й ϴϬϬϬ й ϵϬϬϬ й ϭϬϬϬϬ й ϭϭϬϬϬ й ϭϮϬϬϬ й ϭϯϬϬϬ й ϭϰϬϬϬ й DĂLJ Ͳ Ϭϰ DĂLJ Ͳ Ϭϲ DĂLJ Ͳ Ϭϴ DĂLJ Ͳ ϭϬ DĂLJ Ͳ ϭϮ DĂLJ Ͳ ϭϰ DĂLJ Ͳ ϭϲ DĂLJ Ͳ ϭϴ DĂ
Slide 28: R. Jeffrey Bailly Chairman, CEO & President Newburyport, Massachusetts Ronald Lataille CFO, Sr. VP
R. Jeffrey Bailly Chairman, CEO & President Newburyport, Massachusetts Ronald Lataille CFO, Sr. VP & Treasurer Newburyport, Massachusetts UFP Technologies 100 Hale St. Newburyport, MA 01950 978 - 352 - 2200 investorinfo@ufpt.com www.ufpt.com
Slide 29: Appendix Reconciliation of Non-GAAP Results
Appendix Reconciliation of Non - GAAP Results 29 (in Millions) 2019 2020 2021 2022 2023 Q1 2024 Revenue, As Reported $ 198.4 $ 179.4 $ 206.3 $ 354.0 $ 400.1 $ 105.0 Operating Income, as reported 24.7 16.7 21.2 55.4 57.7 15.9 Add: Acquisition/ Restructuring related Costs - - 0.4 1.0 - - Add earnout f