Ufp Technologies, Inc. · NASDAQ:UFPT
Ufp Technologies — Investor Presentation (August 2024)
32 slides from Ufp Technologies's investor presentation, Aug 26, 2024
Slide 1: Welcome Investors August 2024
Welcome Investors March 2022 Welcome Investors August 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: ~$565 million ~4,000 Associates/ Temps Establishe
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 90% 10% • 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 * Proforma revenue as of Aug
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. Proforma revenue as of 8/21/2024 MedTech Revenue By Segment 3 $518 billion, 6.3% CAGR 1 Global Medical Device Market Customers in
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 Portfolio
Advanced Components 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 90% 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: Business Profile: Thin Film Molding for Implantable Medical Devices
Business Profile • Location: o Dover, NH • Associates: 83 Products & Services • Micro thermoforming of thin gauge specialty films • EMI shielding and insulations for implantable devices • High temperature films (+500) • Low temperature films ( - 400) Technologies • Thermoforming (small parts) • Heat
Slide 16: Business Profile: Single use safe patient handling systems
Business Profile • Locations: o St. Charles, Illinois o Santiago, Dom Rep • Associates: 700 Key Market Served • Safe patient handling • Patient transfer • Patient Comfort Key Materials • Engineered textiles o 2 directional Products & Services • Single patient medical solutions • Low - cost manufactu
Slide 17: Business Profile: Tallahassee, FL adhesive converter
Business Profile • Location: o Tallahassee, FL • Associates: 25 Key Markets Served • Stick to skin applications • Biocompatible tapes and adhesives • RAS drapes Key Materials • Medical grade tapes • Positioning labels • Specialty adhesives 3M Healthcare adhesive converter with high - speed die - cut
Slide 18: Business Profile: Foam & flexible TPU solutions
Business Profile • Locations: o Navan, Ireland o Singapore • Associates: 50 Key Markets Served • Orthopedics • Wound care • Infection Prevention Key Materials • Medical foams • High performance films Products & Services • Sterile packaging components • Die cut medical parts • Cleanroom assembly Tech
Slide 19: Locations
Locations 19 1.3 Million SF Manufacturing Space 39 Cleanrooms & CERs New Locations: + Dover, NH + St. Charles, IL + Tallahassee, FL + Santiago, DO + Navan, IE + Singapore
Slide 20: Why Invest?
Why Invest? 20 Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive financial metrics
Slide 21: Significant Market Growth Opportunities
21 Significant Market Growth Opportunities Market Focused On » Better Patient Outcomes » Infection Prevention » Reducing Healthcare Costs Focused on fast growing segments Global Footprint » Bringing New Opportunities
Slide 22: 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 » Numerous patents relatin
Slide 23: Management Team
Management Team 23 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 24: Proven Growth Strategy Creating Shareholder Value
Proven Growth Strategy 24 Creating Shareholder Value
Slide 25: Financial Targets
Financial Targets 25
Slide 26: Financial Targets
Financial Targets 26 3 to 5 Year Financial Targets 12 - 18% Revenue Growth 28 - 31% Gross Margin 15 - 18% Operating Margin
Slide 27: Targeted Revenue Growth
12% to 18 % Targeted Revenue Growth Internal Growth + Acquisitions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2020 2021 2022 2023 June 2024 TTM 27 Revenue TTM = 12 - month period ended June 30, 2024
Slide 28: Gross Margin Target – 28% to 31%
Gross Margin Target – 28% to 31% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 28 Gross Profit Margin Target: 28 - 31% 24.9% 24.8% 25.5% 28.1% 29.3% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 2020 2021 2022 2023 Q2 2024 YTD
Slide 29: Operating Margin Target - 15% to 18%
Operating Margin Target - 15% to 18% Operating leverage from mix shift + acquisition synergies + efficiencies 29 Adjusted* Operating Margin Target: 15 - 18% *See non - GAAP reconciliation on slide 31 9.6% 10.50% 12.6% 14.8% 16.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2020 2021 2022 2023 Q
Slide 30: UFP Historical Stock Performance
UFP Historical Stock Performance 20 Years 30 *Measured as the percent increase from August 9, 2004 through August 9, 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 ƵŐ Ͳ Ϭϰ ƵŐ Ͳ Ϭϲ ƵŐ Ͳ Ϭϴ ƵŐ Ͳ ϭϬ ƵŐ Ͳ ϭϮ ƵŐ Ͳ ϭϰ ƵŐ Ͳ ϭϲ ƵŐ Ͳ ϭϴ ƵŐ Ͳ ϮϬ ƵŐ Ͳ
Slide 31: Contact
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 32: Appendix: Reconciliation of Non-GAAP Results
Appendix Reconciliation of Non - GAAP Results 32 (in Millions) 2019 2020 2021 2022 2023 Q2 2024 YTD Revenue, As Reported $ 198.4 $ 179.4 $ 206.3 $ 354.0 $ 400.1 $ 215.2 Operating Income, as reported 24.7 16.7 21.2 55.4 55.7 33.9 Add: Acquisition/ Restructuring related Costs - - 0.4 1.0 - 0.9 Add ear
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