Slide 1: Welcome Investors
Welcome Investors June 16, 2022
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, Inc. is an innovative designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market. 3 Ticker: UFPT Headquarters: Newburyport, MA Annual Revenue: ~$300 million 2,800 Employees/ Temps Established: 1963 14 Manufactu
Slide 4: We help our customers develop, improve, manufacture, or safely transport their products
We help our customers develop, improve, manufacture, or safely transport their products through: 4 Design & engineering capabilities Materials Expertise Multiple locations Precision manufacturing Shaping Innovation
Slide 5: Our Process
Our Process Innovative process from design and engineering to manufacturing and delivery
Slide 6: Product Development Business
Product Development Business 6 We bring deep experience in all aspects of 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: Growth Strategy
Growth Strategy Internal Growth: Market To Our Sweet Spot Strategic Acquisitions 7 TWO - PRONGED
Slide 8: Primary Focus Areas
Primary Focus Areas 8 Medical » Infection Prevention » Minimally Invasive Surgery » Fluid & Air Management » Protective Packaging » Patient Comfort » Wound Care » Wearables 79% 5% 3% 13% Automotive » Interior Trim & Structural » Acoustic/Thermal Insulation Industrial / Other » Filtration » Acoustic
Slide 9: MedTech
MedTech 9 UFP expertise in component solutions for surgical robotics, orthopedics, infection prevention, wound care, and minimally invasive surgery Customers include 26 of the top 30 largest medical device manufacturers in the world 2 1. Fortune Business Insights 2. Medical Design & Outsourcing $455
Slide 10: MedTech Portfolio
MedTech Portfolio 10 Robotic Drapes Revascularization Device Needleless Injection Port Cleaner MedSurg Bed Negative Pressure Wound Therapy Compression Device
Slide 11: Advanced Components
Advanced Components 11 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 12: Advanced Components Product Portfolio
Advanced Components Product Portfolio 12 Military Gear Tactical Equipment Law Enforcement Protective Cases Automotive Interior Trim
Slide 13: Why Invest?
Why Invest? 13 Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive financial metrics
Slide 14: Why is UFP an Exciting Investment?
14 Why is UFP an Exciting Investment? Significant market growth opportunities » Medical device development » Medical device manufacturing » Medical components » Medical packaging Addressable market is growing Universe of specialty materials growing
Slide 15: Barriers To Entry
Barriers To Entry 15 » 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 t
Slide 16: Locations - International Expansion
Locations - International Expansion 16
Slide 17: Management Team
Management Team 17 Chris Litterio SVP, Human Resources & General Counsel Former Managing Partner and head of employment law at a major Boston law firm; 5 - years at the company. Steve Cardin VP & COO, MedTech 27 years in the medical device industry; 3 - years at the company. Jason Holt VP & GM, Adva
Slide 18: Proven Growth Strategy Creating Shareholder Value
Proven Growth Strategy 18 Creating Shareholder Value
Slide 19: Organic Growth Opportunity
19 Organic Growth Opportunity Organic Growth (Target of 5% - 7%) Focus on high growth segments (MedTech – approximately 80 - % of revenue and growing) Market to our sweet spot and differentiated capabilities » Engineering resources » Access to materials » Scale (footprint, clean room manufacturing)
Slide 20: Acquisition Growth Opportunity
20 Acquisition Growth Opportunity Acquisition Growth (Target of 5% - 7%) Continue to Focus on Higher - Growth, Higher - Margin Medical Opportunities that Create Value » Become more valuable to our customers » Strategic focus – new capability, geography, market penetration, materials, products » Add
Slide 21: Strategic Investments
Strategic Investments 21
Slide 22: DAS Medical Acquisition
22 Surgical Robots MIS Instruments Microscopes Fluid Warming www.das - medical.com Founded: 2010 | 1200 Employees HQ: Cartersville, GA | Manufacturing: Dom Rep DAS Medical Acquisition Contract manufacturer specializing in the design, development and manufacturing of single use surgical equipment cov
Slide 23: Advant Medical Acquisition
23 Dispenser Coils Catheter Protection Molded Components Device Assembly www.advantmedical.com Founded: 1993 Locations: Galway, Ireland | Costa Rica Advant Medical Acquisition Developer and manufacturer of Class I, II, and III medical devices and packaging.
Slide 24: Contech Medical Acquisition
24 Dispenser Coils Kitting Clips Assembly www.contechmedical.com Founded: 1987 Locations: Providence, RI | Costa Rica Contech Medical Acquisition Global partner for medical contract manufacturing and medical packaging solutions
Slide 25: Tijuana, MX – New Facility
Tijuana, MX – New Facility PARQUE SUR INDUSTRIAL PARK FAST FACTS » 36 min from US border » 83,546 ft 2 » Production: Q2 2022 » Corredor Tijuana - Rosarito 2000, » El Realito, 22250 Tijuana, B.C., México 25 Single - Use Medical Device Production » FDA Registration – Q4 2022 » ISO 13685 - Q4 2022 » 5,
Slide 26: Financial Targets
Financial Targets 26
Slide 27: Financial Targets
Financial Targets 27 3 to 5 Year Financial Targets 10 - 14% Revenue Growth 27 - 29% Gross Margin 12 - 14% Operating Margin
Slide 28: 10% to 14% Targeted Revenue Growth
10% to 14% Targeted Revenue Growth Internal Growth + Acquisitions $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2017 2018 2019 2020 2021 28 Revenue
Slide 29: Gross Margin Target – 27% to 29%
Gross Margin Target – 27% to 29% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 29 Gross Profit Margin 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2017 2018 2019 2020 2021 Target: 27 - 29%
Slide 30: Adjusted Operating Margin Target 12-14%
Operating leverage from mix shift + acquisition synergies + efficiencies 30 Adjusted* Operating Margin 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2017 2018 2019 2020 2021 Target: 12 - 14% *See non GAAP reconciliation on slide 33
Slide 31: Growing Book Value
Growing Book Value 31 $1.10 $1.26 $1.93 $2.63 $1.77 $2.09 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00 2016 2017 2018 2019 2020 2021 * EPS Book Value / Share Book Value EPS
Slide 32: 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 www.ufpt.com
Slide 33: Reconciliation of Non-GAAP Results
Reconciliation of Non - GAAP Results Appendix 33 (in Millions) 2017 2018 2019 2020 2021 Revenue, As Reported $ 147.8 $ 190.5 $ 198.4 $ 179.4 $ 206.3 Operating Income, as reported 11.7 19.6 24.7 16.7 21.2 Add: Acquisition/ Restructuring related Costs 0.1 1.1 - - 0.4 Less: Material overcharge Settleme