Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Non-Deal Roadshow (September 2009)
35 slides from Unifi, Inc. New's roadshow presentation, Sep 21, 2009
Slide 1: Investor Meetings September 2009
INVESTOR MEETINGS September 2009
Slide 2: Forward-looking statements
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 about the markets in whic
Slide 3: Participants
Participants Bill Jasper Chief Executive Officer Ron Smith Chief Financial Officer Ron Smith Chief Financial Officer 3
Slide 4: Business Overview
UNIrI. Business Overview
Slide 5: Growing Global Textile Market
Growing Global Textile Market Global Textile Markets Approximately 160 billion pounds of textile fibers sold annually 4% annual growth in global textile fibers from 2000 to 2008 Annual growth 2% to 3% expected from 2009 and 2012 Polyester fibers grown from 29% of the market in mid 1990's Cost effici
Slide 6: Texturing process and value-added processes
Texturing Machines Texturing Units Value-added Processes POY Manufacture Textured Yarns After the POY is processed, the resulting textured yarn has bulk, crimp, strength and consistent dyeability It is now ready to be processed into fabric or used in other processes Package Dyeing Covering Twisting
Slide 7: Recent Results Impacted by Our Position in the Supply Chain
Retailer Product Manufacturer Fabric Producer Synthetic Fiber Manufacturer POY Manufacturer Petrochemical Raw Material Consumer Weak consumer spending resulted in significant buildup of inventories at retail, product manufacturers and fabric producers Resulted in lower levels of demand in every end
Slide 8: Focused Business Strategy
ONIFI. Focused Business Strategy
Slide 9: Experienced Management Team
Experienced Management Team Leadership Team Dedicated to customer relationships Reputation for quality and innovation Proven ability to integrate acquisitions Committed to continuous improvement Board of Directors 150+ years of valuable industry experience Almost 30% stock ownership in the Company M
Slide 10: Our On-Going Focus
Our On-Going Focus Invest in the development and commercialization of Premier Value Added ("PVA") yarns Unifi is global leader of value-added yarns in textile filament Innovation, product attributes and customer service are key differentiators Downstream marketing - key to understanding what is next
Slide 11: Premier Value Added Yarns
ONIFI. Premier Value Added Yarns wn
Slide 12: PVA Sales Revenue and Development Expenditure
Sales Revenue - U.S. PVA Gross Profit versus PVA Development Expenditure PVA portfolio represents 11% of U.S. sales and 13% of consolidated sales in fiscal 2009 Products utilized in apparel, contract, home furnishings, military, socks and hospitality Adoption cycle for PVA programs slowed as custome
Slide 13: Our PVA Brands
Our PVA Brands Touch & Texture... Performance... Sustainability... MAX 13
Slide 14: U Trust Verification Program and Fiberprint Technology
U TRUSTTM Verification Program FIBERPRINTTM Technology Fabric Certification Global Availability Featured on Travel Channel's "Extreme Factories" and Discovery Channel's "How It's Made" 14
Slide 15: Environmental partnerships and memberships
- - Freedom to Roam - - American Rivers - - Keep America Beautiful - -Rocky Mountain Institute - - Conservation Alliance - - Conservation Alliance - - Conservation Alliance - - Conservation Alliance - - Conservation Alliance - - Conservation Alliance - - Conservation Alliance - - Conservation Allian
Slide 16: Looking Ahead
Looking Ahead... Polartec Patagonia, The North Face, REI, LL Bean Reebok/Adidas Wal-Mart Starter, Fishman Tobin, Wrangler U.S. Military Contract/Hospitality/Healthcare Allsteel, Hon, Steelcase (Nurtur) Transportation Mass Transit (NYC Transit Authority), Ford Other Reusable bags, flags, banners 16
Slide 17: Traditional Business
ONIFI. Traditional Business 7
Slide 18: Leading Market Position
Regional leader in the processing of multi-filament polyester and nylon yarns U.S. Nylon Covered Yarn Production Share U.S. Nylon Textured Yarn Consumption Share U.S. Polyester Textured Yarn Consumption Share ___________________________ Source: Unifi internal estimates U.S. Dyed Yarn Production Shar
Slide 19: Customer & Channel Segmentation
Customer & Channel Segmentation Fibers demanded by a wide variety of customers Approximately 700 polyester customers and 200 nylon customers from the U.S. Top 5 U.S. customers include Polyester - American & Efird, International Textile Group, Milliken, Polartec and Specialty Textile Interiors Nylon
Slide 20: Product Segmentation
Product Segmentation Diverse product offering sells into the apparel, hosiery, furnishings, automotive, and industrial markets Large majority of U.S. customers are domestic weavers and knitters Most free trade benefits come indirectly through shipments of fabric into region Compliant sales account f
Slide 21: Importance of Regional Trade
Import competition primarily focused at the supply chain level Regional Trade U.S. and region trading partners provide competitive advantages High-quality for critical end-uses Product innovation Compressed supply chain / quick turns Competitive pricing Duty-free movement among participants Requires
Slide 22: Diverse product segmentation = diverse customer base
Diverse product segmentation = diverse customer base Various segments more or less susceptible to import competition Regional trade key to volume stability for apparel and hosiery segments Continued growth opportunity for PVA products US Sales Revenue by Product Segment Unifi Sales Segmentation 22 _
Slide 23: Demand Across the Supply Chain
Demand Across the Supply Chain June 2009 quarter vs. June 2008 quarter Economic crises of last year negatively impacted all Unifi markets and segments Severity of declines intensified by the inventory build across the supply chain and subsequent de-stocking Year-over-year - regional share retained I
Slide 24: Polyester Raw Material Price Trends
Raw materials represent 60% of total costs Profitability highly dependant on managing costs or transferring increases FY08 raw material volatility - crude oil pricing and MEG capacity curtailment FY09 raw materials - Crude oil decline, weak demand and price rationalization Polyester Raw Material Pri
Slide 25: International Strategy
ONIFI. International Strategy 25
Slide 26: Targeted Approach to the Chinese Market
Targeted Approach to the Chinese Market Chinese Fiber Market Chinese textile filament represents 66% of global market in 2008 Year-over-year growth rates of 10% to 12% from 2000 to 2008 Calendar 2009 growth estimated at flat Projected growth rates for 2010 to 2012 of 6% to 8% Specialty and PVA yarn
Slide 27: Brazil Market Dynamics
Brazil Market Dynamics Polyester Textile Filament Market Trends Polyester Textile Filament Consumption Share Market Segmentation by Fiber Type Skilled and experienced local management team Improved demand at retail from economic recovery driving return to growth in fiber markets Market serviced by d
Slide 28: Financial Overview
ONIFi. Financial Overview 28
Slide 29: Stable Capital Structure
Stable Capital Structure No on-going maintenance covenants Limited ability to make restricted payments Restrictions on use of proceeds from asset sales Restricted Cash Excess Proceeds Offer at par requirement for more than $10 mm of Restricted Excess Cash > 360 days old Incurrence of additional inde
Slide 30: Summary of Selected Financial Data
Summary of Selected Financial Data ___________________________ Management's publicly disclosed guidance on the July 29th, 2009 Earnings Conference call. Management transformed operations and de-leverage the balance sheet Historical Financial Summary 30
Slide 31: Components of Value
Components of Value Adjusted EBITDA guidance - $40 to $50 million (based on economic recovery and raw pricing) Capital spending - $8 to $9 million Working capital - neutral to slight improvement Cash interest - $187 million of debt at June 2009 $179 million of 11.5% senior secured $0 million under r
Slide 32: Questions
ONIFI. UNIFT. Questions
Slide 33: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 33
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America because management believes such measures are usefu
Slide 35: Adjusted EBITDA limitations (continued)
Continued Our Adjusted EBITDA measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: • it does not reflect our cash expenditures, future requirements for capital