Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Investor Presentation (December 2024)
39 slides from Unifi, Inc. New's investor presentation, December 2024
Slide 1: UNIFI, Inc. Investor Presentation December 2024
UNIFI UNIFI, INC. Investor Presentation December 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions, and expec
Slide 3: UNIFI at a Glance (NYSE: UFI)
UNIFI at a Glance (NYSE: UFI) UNIFI is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post- industrial and post-consumer waste into sustainable products. Key Facts 1971 Greensboro, NC ~2
Slide 4: UNIFI Investment Highlights
UNIFI Investment Highlights Industry Leader: Leading global textile manufacturer trusted by top brands to bring sustainable and innovative solutions to their products Accelerating Demand for Recycled Fibers: Provider of premier sustainability brand, REPREVE®, which remains the industry’s most techno
Slide 5: Globally Competitive Footprint
Globally Competitive Footprint UNIFI produces and distributes products across the Americas, Europe and Asia. Europe Turkey USA China Pakistan Americas Asia Segment India Segment El Salvador Vietnam Colombia Indonesia Brazil Brazil Segment 5
Slide 6: Business Segments
Business Segments Americas Brazil Asia • Manufactures and sells • Manufactures and sells • Sources recycled and recycled and synthetic recycled and synthetic synthetic products from products to customers products to customers third party suppliers and that produce yarn and that produce fabric sells
Slide 7: Product Flow
Product Flow Material Inputs Finished Good Recycled plastics, Resin Base yarn Textured Value-added Finished yarn petroleum, or derivatives (POY) yarn processes sale (Virgin or REPREVE) North Carolina, USA Asset Driven Asia Asset Light Alfenas, Brazil Asset Driven El Salvador, Central America Asset D
Slide 8: Primary End Markets
Primary End Markets MEDICAL MILITARY MOBILITY PACKAGING
Slide 9: Non-Apparel Sales Offer Margin Upside
Non-Apparel Sales Offer Margin Upside Industrial Apparel, Hosiery, 13% Footwear Furnishings Net 12% Sales by End 59% Market 11% Other available in all end markets – currently most 5% prominent in apparel Automotive 9 Revenue data is presented for fiscal 2024, for which consolidated net sales was $58
Slide 10: REPREVE and Innovation
~ o REPQ@EVE and Innovation
Slide 11: The REPREVE Advantage
The REPREVE® Advantage FiberPrint™ Technology U-Trust® Verification Third-Party Certified Sustainably Indexed FiberPrint technology helps The U-Trust verification program is Products made with REPREVE REPREVE’s Higg Materials customers avoid false a comprehensive certification recycled materials, in
Slide 12: UNIFI's REPREVE Journey
UNIFI’s REPREVE® Journey 40 50 Billion Billion Bottles Recycled ® Goal 40 Billion Bottles First Commercial REPREVE REPREVE Bottle Recycled Customers Recycling Center Processing Center Trademark Grand Opening Registered TM Technical Development Trademark Application 2001 2002 2003 2004 2005 2006 2007
Slide 13: REPREVE Powered by Textile Takeback
REPREVE® Powered by Textile Takeback™ REPREVE ® powered by Textile TakebackTM is the premiere, globally available, commercial-scale product platform leveraging textile waste into the most critical filament, fiber, and insulation products. We are pleased to introduce our new, white offering in filame
Slide 14: ThermaLoop Insulation
ThermaLoop™ Insulation Features & Benefits ● ThermaLoopTM down-like fiber and fiberball are made with 100%* recycled materials, including at least 50% fabric waste. ● ThermaLoopTM padding is made with 100%* recycled materials, including at least 50% fabric waste (exclusive of REPREVE® low melt polym
Slide 15: REPREVE Production Process
REPREVE® Production Process Post-consumer waste is transformed into REPREVE ®. REPREVE RECYCLED RECYCLED BOTTLES FLAKE REPREVE RESIN FIBER Post-consumer bottles are Bottles are washed and chopped Bottle flake is melted and formed Resin is melted and made into recycled into flake into resin polyester
Slide 16: REPREVE Applications
REPREVE® Applications FILAMENT SOCKS/ APPAREL AUTOMOTIVE FOOTWEAR HOSIERY STAPLE PADDING BEDDING INSULATION CHIP PACKAGING BOTTLES FLOORING 16
Slide 17: Apparel Brands Using REPREVE
Apparel Brands Using REPREVE Major Retailers Outdoor Socks/Hosiery Luxury Fashion Uniform/Workwear Swim 17
Slide 18: Beyond Apparel Brands Using REPREVE
Beyond Apparel Brands Using REPREVE® Home and Contract Footwear Accessories Transportation 18
Slide 19: Corporate Sustainability Goals
Corporate Sustainability Goals Many leading global retailers and apparel companies have announced targets committing them to switch to recycled materials. 100% recycled polyester by 50% recycled polyester by 100% recycled polyester by 50% recycled polyester by 2030 2025 2030 2025 100% recycled polye
Slide 20: REPREVE Fiber Sales
REPREVE® Fiber Sales As a % of Net Sales Quarterly Annual 37% 36% 33% 34% 31% 32% 31% 31% 31% 32% 29% 30% 30% 27% $53.6 $44.7 $49.2 $42.9 $49.6 $44.5 $42.5 $45.7 $46.8 $180 $186 $186 $186 $246 $246 $293 $293 $293 $186 $186 $186 $189 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 FY 2023 FY 2024
Slide 21: Product Innovation Portfolio
Product Innovation Portfolio UNIFI offers a comprehensive selection of innovative technologies A.M.Y.® INHIBIT® RESIST2O™ TRUEFFECTS® XS® CROSS-SECTION CHILLSENSE™ MYNX® SMARTDYE™ TRUTEMP365® THERMALOOPTM RECOMFORT™ REFLEXX® SORBTEK® WATERWISE™ 21
Slide 22: Sustainability
Sustainability 22 22
Slide 23: Sustainability Pillars
Sustainability Pillars Our sustainability vision will be accomplished through industry collaboration and transparency along with the expansion of REPREVE ®. PLANET PRODUCT PEOPLE Strategic investments to reduce carbon footprint Transform 50 billion bottles by Dec. 2025 Commitment to a culture of saf
Slide 24: Fiscal 2030 Sustainability Targets
Fiscal 2030 Sustainability Targets A pioneering textile-to-textile recycling target, and two manufacturing objectives tackling greenhouse gas emissions and water discharge. 1. Transform the equivalent of 2. 30% reduction in 3. Zero non-compliant water 1.5 billion T-shirts worth of Scopes 1 & 2 green
Slide 25: Recent Financials & Outlook
Recent Financials & Outlook 25 25
Slide 26: Q1 2025 Consolidated Highlights
Q1 2025 Consolidated Highlights Q1 Q1 YoY FY25 FY24 Change Net Sales $147.4 $138.8 6.1% Gross Profit (Loss) $9.5 ($0.6) 1,745% Gross Margin 6.4% (0.4)% 680 bps Highlights/Drivers • Net sales and gross profit increased vs. prior year, primarily due to higher sales volumes in all segments, favorable p
Slide 27: Profitability Improvement Plan Progress
Profitability Improvement Plan Progress Fiscal 2024 Fiscal 2025 & Beyond Announced Profitability Enhanced Financial & Operational Invested in New Innovation to Help Supports Pivot to Growth and Improvement Plan in January 2024 Performance during Q2 – Q4 Support Growth Enhanced Profitability • Stream
Slide 28: Balance Sheet
Balance Sheet $4 Recent Steps to Strengthen Balance Sheet FCF ($4) ($1) ($8) ($15) • Sold a warehouse ($8M) to reduce net debt in Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 October 2024 (post quarter-end). $40 $36 • Entered into a $25.0 million revolving credit $11 < $12 facility agreement with favorab
Slide 29: Fiscal 2025 Outlook
Fiscal 2025 Outlook Well Positioned to Realize Profitable Growth Opportunities in Fiscal 2025 Net sales expected to increase 10% over fiscal 2024, as underlying portfolio and REPREVE® Fiber momentum continues while macroeconomic and inflationary uncertainties remain pronounced in the second half o
Slide 30: Fiscal 2025 Priorities
Fiscal 2025 Priorities Prepared to Pivot to Growth Transforming the sales process, including pricing, to streamline 1. operational efficiencies and drive margin improvement. Scrutinizing working capital to reduce interest expense and improve 2. cash flows. Leveraging the realignment of resources and
Slide 31: Appendix
APPENDIX 31 31
Slide 32: Q1 2025 Americas Highlights
Q1 2025 Americas Highlights Q1 Q1 YoY FY25 FY24 Change Net Sales $86.3 $81.6 5.8% Gross Profit (Loss) ($1.4) ($7.4) 81.3% Gross Margin (1.6)% (9.0)% 740 bps Highlights/Drivers • Net sales and gross profit increased vs. prior year, primarily due to higher sales and production levels. 32 Note: Q1 FY25
Slide 33: Q1 2025 Brazil Highlights
Q1 2025 Brazil Highlights Q1 Q1 YoY FY25 FY24 Change Net Sales $34.3 $29.9 14.7% Gross Profit $7.9 $2.2 266.3% Gross Margin 23.1% 7.2% NM Highlights/Drivers • Net sales and gross profit increased vs. prior year, primarily due to higher volumes due to market share gains together with favorable pricin
Slide 34: Q1 2025 Asia Highlights
Q1 2025 Asia Highlights Q1 Q1 YoY FY25 FY24 Change Net Sales $26.8 $27.4 (2.1)% Gross Profit $2.9 $4.6 (37.5)% Gross Margin 10.8% 17.0% (620) bps Highlights/Drivers • Net sales and gross profit decreased vs. prior year, primarily due to unfavorable economic conditions and pricing dynamics in the reg
Slide 35: Net (Loss) Income & EPS
Net (Loss) Income & EPS (dollars in thousands, except per share amounts) Note: No adjustments were necessary to calculate Adjusted Net (Loss) Income or Adjusted EPS. 35
Slide 36: Adj. EBITDA
Adj. EBITDA (dollars in thousands) 36
Slide 37: Adj. Working Capital
Adj. Working Capital (dollars in thousands) 37
Slide 38: Net Debt
Net Debt (dollars in thousands) 38
Slide 39: Contact Investor Relations
Contact Investor Relations: UFI@alpha-ir.com 39 39