Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Piper Jaffray 27th Annual Consumer Conference 2007
20 slides from Unifi, Inc. New's conference presentation, Jun 7, 2007
Slide 1: The 27th Annual Consumer Conference
Consumer The 27th Annual Consumer Conference June 6-7, 2007, New York, New York UNIFI, INC. Gures ror sareinee | PiperJaffray.
Slide 2: Cautionary Statement
Cautionary Statement Certain statements included herein contain forward-looking statements within the meaning of federal security laws about Unifi, Inc.'s (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections abou
Slide 3: Unifi Overview
Unifi Overview Business Overview Unifi's yarns are found in: Apparel Home furnishings Hosiery Automotive Industrial, sewing thread, military and medical applications Some key Unifi brands include: For the twelve months ended December 24, 2006 ("TTM"), Unifi had net sales and adjusted EBITDA of $692
Slide 4: Our Manufacturing Process
Our Manufacturing Process Texturing machines process POY multi- filament yarns Texturing is a combination of heating and stretching of the POY as it passes through the texturing unit Texturing Machines The friction disc unit is the heart of the texturing machine POY enters the top of the unit, passe
Slide 5: Business Overview: Value Chain
Business Overview POY Manufacturer Synthetic Fiber Manufacturer Fabric Producer Product Manufacturer Retailer Consumer Petrochemical Raw Material Trade-protected market environment Growing global market Increasing focus upon specialty yarns Strong sourcing power by retailers Strong North American pr
Slide 6: Importance of the US Textile Industry
Importance of the US Textile Industry Industry / Market Overview USA Textile Industry Shipments (2006): $68.6 Billion Capital Investment During Last 10 Years: $33 Billion Textile Sector Employment: 900,000 people (One of the largest US manufacturing employers) Textile Exports (Annualized 2006): $16.
Slide 7: Leading Market Position
Leading Market Position Unifi 0.62 Other Domestic 0.35 Regional Imports 0.03 Unifi (1) 0.49 Other Domestic 0.25 Regional Imports 0.1 Other Imports 0.15 Unifi 0.42 Other Domestic 0.4 Regional Imports 0.01 Other Imports 0.17 Unifi is the leading North American producer and processor of multi-filament
Slide 8: Sales Segmentation by Product, End-Market and Geography
Domestic 0.6 Regional Free-Trade(1) 0.4 Export 0.12 Automotive 0.12 Industrial 0.07 Other 0.02 Sales Segmentation Poly POY 0.22 Poly DTY 0.28 Nylon 0.27 Other 0.22 Sales by Product Sales by End-Market Apparel 0.375 Hosiery 0.24 Home Furnishings 0.1725 Automotive 0.1 Industrial 0.09 Other 0.025 Unifi
Slide 9: Regional Free-Trade Markets
Regional Free-Trade Markets Yarn Subject to Duties and / or Quotas Yarn U.S. Textile End Market Yarn Protected Market under CAFTA / CBI / NAFTA / Andean Agreements Canada ? Mexico ? Caribbean Basin ? Central America (2) ? Andean Region (3) Rest of World U.S.A. ___________________________ Regional fr
Slide 10: Sustainability of Regional Trade
Sustainability of Regional Trade Synthetic Performance T-Shirt Import competition primarily focused at the supply chain level Industry / Market Overview Domestic US Fabric Regional Fabric Imported Garment 5.09 4.88 4.73 3.97 Import Duty (32%) 0.98 $4.88 $4.73 $4.95 $5.09 Regional Trade US and region
Slide 11: "Region" Still Significant to Apparel Supply
"Region" Still Significant to Apparel Supply Sources of Apparel Consumed in the USA Industry / Market Overview ___________________________ Source: Unifi Internal Estimates, OTEXA, American Apparel & Footwear Association, and Census Bureau CAFTA region projected to grow in 2007 / 2008 In 2006, over 4
Slide 12: China Joint Venture Overview
China Joint Venture Overview Unifi and Sinopec Yizheng Chemical Fibre Co., Ltd. ("YCFC") formed a 50/50 joint venture in August 2005 with $30 million invested Located in Jiangsu Province, China YCFC is a long-established and highly respected fiber industry leader Immediately leverageable customer ba
Slide 13: Commercialization of Specialty Yarns
Synthetic Yarn Producer Fabric Producer Garment Manufacturer Brand Retailer Product innovation Technical expertise Market intelligence Merchandising assistance Trend analysis Commercialization of Specialty Yarns Dick's Sporting Goods Duofold Majestic Athletic Marmot Costco Champion Athletic Key Down
Slide 14: Branded Product Success
Branded Product Success Branded Product Sales and Gross Margins Unifi continues to provide what is Next in the market Unifi Brands Unifi has grown premium value-added ("PVA") product sales from ~ $7 million in 2001 to over $50 million annually PVA products generate margins 5x - 10x higher than commo
Slide 15: The Repreve Story
The Repreve Story Business Overview
Slide 16: Market Opportunities
Market Opportunities Fragmented North American polyester and nylon markets Competition primarily consists of small privately-held companies which serve only limited markets Characterized by utilization rates of 75 - 95% Innovation, product quality and customer service are key differentiators Unifi i
Slide 17: Capital Structure
Capital Structure Covenants $190 million of 11.5% 2014 Senior Secured Notes Unifi has a covenant-light stable capital structure Amended Revolving Credit Agreement No on-going maintenance covenants Limited ability to make restricted payments, such as dividends, stock repurchases, permitted investment
Slide 18: Recent Developments
Recent Developments Announced the "put exercise" of our interest in Unifi-SANS J.V. Expected to generate $13-15 million in cash first calendar quarter 2008 Announced consolidation of texturing operations into Yadkinville, N.C. plant Announced new Board appointments: William Sams Anthony Loo Stephen
Slide 19: Investment Highlights
Diverse Customer Base Leading Supplier in Regional Free- Trade Markets Strong Liquidity and Stable Capitalization Experienced Management Team Leading Market Positions Attractive Industry Dynamics Expertise in Value- Added Products UNIFI
Slide 20: The 27th Annual Consumer Conference
Consumer The 27th Annual Consumer Conference June 6-7, 2007, New York, New York UNIFI, INC. Gures ror sareinee | PiperJaffray.
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