Uniroyal Global Engineered Products, Inc. · OTC:UNIR
Uniroyal Global Engineered Products — Investor Presentation (December 2017)
40 slides from Uniroyal Global Engineered Products's investor presentation, December 2017
Slide 1: Uniroyal Global Engineered Products, Inc.
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. OTCQB: “UNIR” December 2017
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on management's
Slide 3: Company Overview: Vinyl Coated Fabrics
Company Overview: Vinyl Coated Fabrics Delivering Superior Performance, Color & Beauty Our Naugahyde® & Ambla® brands are known through the world as the premier choice within many markets. Demanded without compromise by today's discriminating customer, high quality, highly engineered product to many
Slide 4: Global Manufacturing Operations & Sales
Global Manufacturing Operations & Sales Uniroyal Engineered Products Stoughton, WI, U.S.A Uniroyal Global Limited Earby, Lancashire, UK Uniroyal Global (AP) Ltd. Shanghai. Sales, Technical Manufacturing : 2 & Distribution. Design & Sales offices : 5 Global Distributors : 65 (Asia / Europe & Am
Slide 5: North American and UK & European Manufacturing Facilities
North American UK & European Manufacturing Facility Manufacturing Facility Stoughton, Wisconsin. Earby, Lancashire. Plant size: 230,000 Sq. Ft. Plant size: 250,000 Sq. Ft & 15 acres Employees: 193 Employees: 227 Capacity: 13 Million Linear Yards Capacity: 15 Million Linear Yards Availa
Slide 6: Timeline
Timeline Uniroyal Global Engineered Products 2014 Uniroyal 1892 1920 1941 1964 1986 2003 Global U.S Rubber Naugahyde A synthetic rubber U.S. Rubber becomes Uniroyal, Inc. sells Engineered Uniroyal Engineered Company founded artificial leather substitute Uniroyal Inc. Uniroyal Plastics. Products – Pr
Slide 7: Design & Product Development
DESIGN, & PRODUCT DEVELOPMENT
Slide 8: World Class Designers and Development Team
Design and Development World Class Designers and Development Team. New color developments. Extensive effects library (print/grain) Pilot plant samples up to (600mm) Full scale trials within 6-8 weeks
Slide 9: Research & Product Development
Research & Product Development UK & US Comprehensive Testing Labs Lower VOC emissions Technical Products developed in house Water based coatings development Experience technical team of 20 staff Anti-squeak Proprietary product development Anti-soil Computer color match systems Fl
Slide 10: Quality, Environmental and Safety Standards
Quality, Environmental and Safety Standards We take an absolute no compromise approach to quality ISO9001/2008 Environmental Management Systems certified to IS0 14001 TS 16949 certification Compliance with REACH regulations VDA 6.3 compliant A member of Vinyl Plus Foundation OEKO-TEX s
Slide 11: Markets
UNIROYAL GLOBAL ENGINEERED PRODUCTS MARKETS
Slide 12: Current Revenue
Current Revenue Our Products and Markets are uniquely diversified and provide us with an enviable balanced portfolio. Automotive and Light truck interiors 65% Heavy Truck, Transportation & Industrial Equipment 14% Commercial Seating and Medical Equipment 21%
Slide 13: Serving our Global OEM's
Serving our Global OEM’s pal ala edla ENGINEERED PRODUCTS | MASERATI Mercedes-Benz ” RENAULT IVECO TEREx we rhe eo x3 RON! CHRYSLER
Slide 14: Automotive
Automotive • Strong & Successful Presence Building Globally • OEM & VM Design & Styling Studios see us as their go to company for new product specification, designs, color and harmony solutions.
Slide 15: Automotive and Light Truck Interiors Components & Modules
Automotive and Light Truck Interiors Components & Modules Seating Cut and sew, pour in place & low pressure molding. Instrument Panels Compression molding & vacuum forming. Door Casings Compression molding, vacuum forming & low pressure molding. Gear /Handbrake Cut and sew. Sun Visors HF welding. He
Slide 16: Markets – Naugahyde Applications
Markets – NAUGAHYDE Applications
Slide 17: Hotels, Recreational and Hospitality Commercial Seating and Coverings
Hotels, Recreational and Hospitality Commercial Seating and Coverings Niche markets driven by specific customer specifications. Naugahyde – Strongest brand name in North America for high end robust applications. European integration with Ambla and Naugahyde brands leading to growth opportuniti
Slide 18: Indoor and Outdoor Contract Seating
Indoor and Outdoor Contract Seating Restaurant, Hospitality and Commercial Seating Commercial Seating Hospitality Residential Care Stadium Seating
Slide 19: Indoor and Outdoor Contract Seating
Indoor and Outdoor Contract Seating Medical Residential Leisure Mass Transportation
Slide 20: Thin Film Calendered Sheet
Thin Film Calendered Sheet Medical Mattress Covers Sticking plasters Nuclear protection Contamination suits Disposable products Lamination Caravan interiors Shop fitting FR Products Cinema screens Upholstery Strollers & Nursery Changing mats Furniture
Slide 21: Company Objectives
UNIROYAL GLOBAL ENGINEERED PRODUCTS COMPANY OBJECTIVES
Slide 22: 2018/19 Revenue Objectives
2018/19 Revenue Objectives • Deeper penetration into current automotive OEMs and expanding our customer base – Automotive OEM’s demand Global a Supplier across multiple applications & regions. – Focused on Design and Technical advancements to lead growth in Global Auto Markets • Entrance into new Te
Slide 23: Strategic Performance Objectives
Strategic Performance Objectives Continued Margin Expansion – Productivity investments • Expanded capacity in Europe with technology upgrades (water based print) • Continued synergy from Acquisition integration – Driving lean manufacturing and continuous improvement across both manufacturing facilit
Slide 24: Strategic Growth Opportunities
Strategic Growth Opportunities Additional accretive earnings through M&A activity Add-on acquisitions for existing markets • Rationalization of production capacity in the industry Complimentary Market Opportunities increase content on existing and new business to expand product offerings & increase
Slide 25: Potential Strategic Growth Opportunities: Asia (China)
Potential Strategic Growth Opportunities Geographic Expansion completes our Global Footprint Asia (China) • 50% of Global Coated Fabrics Market • 42.3% of Auto production • Growing economy • Mass Transportation opportunity • Hospitality and Medical facility expansion • Residential and Commercial Fur
Slide 26: Strategic Growth Opportunities: Positioned for Growth
Strategic Growth Opportunities Positioned for Growth • Infrastructure investment in place to accelerate synergies with future acquisitions • Flexible capital structure provides financing capability for acquisitions Management estimates that with geographic expansion, new technology and product devel
Slide 27: Public Market
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. PUBLIC MARKET
Slide 28: Recent History
Recent History • April of 2013 - Acquired Wardle Storeys and renamed to Uniroyal Global Limited late 2016 • November of 2014 - Uniroyal acquired by Invisa, Inc. (OTCQB:INSA) • April of 2015 - Changed company name to Uniroyal Global Engineered Products, Inc. and changed Stock symbol “UNIR” • 2018 – P
Slide 29: Stock Position, Trend and Growth
0 1 2 3 4 0.5 1.5 2.5 3.5 4.5 1/2/2015 2/2/2015 3/2/2015 4/2/2015 5/2/2015 6/2/2015 7/2/2015 8/2/2015 9/2/2015 10/2/2015 11/2/2015 12/2/2015 1/2/2016 2/2/2016 3/2/2016 4/2/2016 5/2/2016 6/2/2016 Stock Position, Trend and Growth 7/2/2016 8/2/2016 9/2/2016 10/2/2016 11/2/2016 12/2/2016 Daily Close Sto
Slide 30: Investment Rationale
Investment Rationale • Technologically advanced Company in an established industry • Superior cash generation • Above average revenue growth • Deal integration synergies continue • Diversified platform offers cyclical defense • Additional accretive M&A objective
Slide 31: Financial Information
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. FINANCIAL INFORMATION
Slide 32: Financials ($ in thousands)
Financials ($ in thousands) Income Statement Summary: Year Ended Nine Months Ended 2015 2016 2016 2017 Net Revenue $ 99,762 $ 100,377 $ 76,977 $ 74,334 Gross Profit $ 21,949 $ 22,862 $ 17,736 $ 14,900 22.0% 22.8% 23.0% 20.0% Income * $ 5,561 $ 6,181 $ 4,844 $ 2,929 5.6% 6.2% 6.3% 3.9% EBITDA $ 8,629
Slide 33: Financials
Financials Nine Months Revenue: • Net sales for 2017 were $74.3 million compared to $77.0 million for 2016. • Net currency effect had a negative $1.6 million impact on 2017 sales. • Automotive sector decreased approximately 1.8% as the increase in sales of several new programs in the European market
Slide 34: 2018 Financial Outlook
2018 Financial Outlook • Selective growth in automotive sector in the U.S. and Europe • Increasing penetration at existing customers • Expanding customer base • Introduced a new linen-textured vinyl-coated fabric called Casablanca
Slide 35: Balance Sheets ($ in thousands)
Balance Sheets ($ in thousands) Balance Sheet Summary: 1/1/17 10/1/17 Cash $ 1,322 $ 1,751 Accounts receivable 14,555 15,216 Inventory 17,046 21,289 Other current assets 1,210 752 Fixed assets, net 13,611 15,295 Other assets 10,878 11,385 Total Assets $58,622 $65,688 Accounts payable and other curre
Slide 36: Equity Detail ($ in thousands)
Equity Detail ($ in thousands) Stockholders’ Equity: 1/1/17 10/1/17 Preferred Units, UEP Holdings, 5.0% dividend ($20,000,000 liquidation value) $ 618 $ 618 Preferred Units, UEP Holdings, 6.5% dividend ($15,000,000 liquidation value) 463 463 Preferred Shares, Uniroyal Global (Europe) Limited, 5.0% d
Slide 37: Cash Flow ($ in thousands)
Cash Flow ($ in thousands) Cash Flow Summary: YE Ended Nine Months Ended 2015 2016 2016 2017 Net income $ 7,754 $ 7,379 $ 4,360 $ 2,438 Adjustments to reconcile to cash flow from operating activities Deferred tax benefit (2,511) (1,925) - - Depreciation and amortization 1,571 1,727 1,310 1,346 Stock
Slide 38: Questions
Thank you for your interest in:- Uniroyal Global Engineered Products. Questions Request copy of our presentation or for additional material email to :- info@uniroyalglobal.com
Slide 39: Appendices
UNIROYAL GLOBAL ENGINEERED PRODUCTS Q&A APPENDICES
Slide 40: Market Overview
Market Overview Global Coated Fabrics Market estimated Polymer Coated Fabrics by Market Sector at $16.5 billion • Transportation 35% Polymer Coatings represents 85% • Protective Clothing 15% • Industrial 12% Coated Fabrics by Region • Furniture 10% • Other 28% • Asia Pacific $6.9 B • North America $
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