Ufp Technologies, Inc. · NASDAQ:UFPT
Ufp Technologies — Investor Presentation (September 2021)
30 slides from Ufp Technologies's investor presentation, Sep 21, 2021
Slide 1: Welcome Investors September 2021
Welcome Investors September 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward - looking information that involves risks and uncertainties, including statements about the Company’s prospects, anticipated advantages the Company expects to realize from its acquisition strategies, the Company’s financial performance, target
Slide 3: Who We Are
Who We Are UFP Technologies is an innovative designer and custom manufacturer of components, subassemblies, products and packaging primarily for the medical market. Key Stats: Headquarters: Newburyport, MA Ticker : UFPT Market Cap: $480 million 1 Share Count: 7.5 million 2020 Annual Revenue: $1 79.4
Slide 4: Shaping Innovation
Shaping Innovation We help our customers develop, improve, manufacture, or safely transport their products through: Materials expertise Design engineering capabilities Precision manufacturing capabilities
Slide 5: Our Process
Our Process Innovative process from design and engineering to manufacturing and delivery Customer Challenge Design & Development Prototype Tooling Custom Equipment Quality Systems Commercial Production Pilot Manufacturing Proprietary and Tested Technology Integration
Slide 6: Product Development Business
Product Development Business High Margin Added Expertise Stronger Customer Relationships Long Term Manufacturing Benefits
Slide 7: Growth Strategy Two-Pronged
Growth Strategy Two - Pronged 1. Internal Growth: Market To Our Sweet Spot 2. Strategic Acquisitions
Slide 8: Primary Focus Areas
67% 8% 10% 4% 4% 7% Primary Focus Areas Medical • Infection Prevention • Minimally Invasive Surgery • Fluid & Air Management • Protective Packaging • Patient Comfort • Wound Care • Wearables Automotive • Interior Trim & Structural • Acoustic/Thermal Insulation Consumer • Foam and Fiber Packaging • P
Slide 9: MedTech
MedTech $455 billion Global Medical Device Market with a 5.4% CAGR 1 • UFP expertise in component solutions for orthopedics, infection prevention, wound care, and minimally invasive surgery • Customers include 24 of the top 28 largest medical device manufacturers in the world 2 UFP Differentiation •
Slide 10: MedTech Product Portfolio
MedTech Product Portfolio Implant Packaging Radial Compression Device Equipment Drapes MedSurg Bed Compression Device Negative Pressure Wound Therapy (NPWT) Needleless Injection Cap Cleaners Surgical Site Prep
Slide 11: Advanced Components
Advanced Components • 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, Boeing, Lockheed Martin, Bath & Body Works, Philips, Dell, Coke UFP Differentiation • Design engin
Slide 12: Advanced Components Product Portfolio
Advanced Components Product Portfolio Military Uniform Gear Protective Cases SUV Load Floors Automotive Interior Trim Lacrosse Helmet Comfort Padding Candle Protective Packaging
Slide 13: Why Invest?
Why Invest? • 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?
Why is UFP an Exciting Investment? Significant market growth opportunities • Addressable market is growing ▪ Medical device development ▪ Medical device manufacturing ▪ Medical components ▪ Medical packaging • Universe of specialty materials growing
Slide 15: Barriers To Entry
Barriers To Entry Engineering Resources • Veteran engineering team for product design and development; more than 90 members of the engineering group Greater Access to Materials • Offers broad array of materials to meet customer needs • 50 + years in business and strong supplier relationships • Exclu
Slide 16: National Footprint
National Footprint Gain Efficiencies Asset utilization Sharing best practices Sharing resources 9 Manufacturing Facilities Over 1 million square feet of space Tijuana, MX (Coming Soon)
Slide 17: Management Team
R. Jeffrey Bailly – Chairman, CEO & President 33 - year history at the company, beginning as an operations manager in 1988; MBA, CPA. Ronald Lataille – CFO, Sr. VP & Treasurer 23 - year history at the company; CPA. Mitchell Rock – President, MedTech 28 - year history at the company. Chris Litterio –
Slide 18: Proven Growth Strategy Creating Shareholder Value
Proven Growth Strategy Creating Shareholder Value
Slide 19: Organic Growth Opportunity
Organic Growth (Target of 5% - 7%) • Focus on higher growth markets (Medical – approximately 67% of revenue and growing) • Expand business with existing customers o Offer complementary products and services o Additional value - add services • Gain market share with competitive advantage o Engineerin
Slide 20: Acquisition Growth Opportunity
Acquisition Growth (Target of 5% - 7%) Very fragmented market • No single company controls a large percentage of the market (UFP is one of the largest players) • 500 + companies (potential targets) • Many owner / operators at or near retirement age • Reputation for seamless integration Experienced a
Slide 21: Acquisitive Growth Opportunity
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 scale / market share • Look for synergistic opportunities Goal is for acq
Slide 22: Dielectrics Acquisition
• Revenue $43 million • 100% medical • Single location in Chicopee, Massachusetts • Great cultural and strategic fit • Instantly accretive to earnings • Makes UFP more valuable to medical customers Dielectrics Acquisition
Slide 23: Financial Review
Financial Review Revenue Growth, Margin Expansion & Strong Financial Profile
Slide 24: Financial Targets
10% - 14% Revenue Growth 12% - 14% Operating Margin 27% - 29% Gross Margin 3 to 5 Year Financial Targets Financial Targets
Slide 25: Targeted Revenue Growth
10% to 14% Targeted Revenue Growth Internal Growth + Acquisitions 0 20 40 60 80 100 120 140 160 180 200 2016 2017 2018 2019 2020 *2021 Annualized $ Millions Revenue *Based on revenue of $99.3M through June 30, 2021
Slide 26: Gross Margin Target
Gross Margin Target – 27% to 29% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 27 - 29%Target 10.0% 15.0% 20.0% 25.0% 30.0% 2016 2017 2018 2019 2020 YTD 2Q21 Gross Profit Margin
Slide 27: Adjusted Operating Margin
Target: 12 - 14% Operating leverage from mix shift + acquisition synergies + efficiencies 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2016 2017 2018 2019 2020 YTD 2Q21 * Adjusted Operating Income is a non - GAAP term. A reconciliation to GAAP is provided in the Appendix Adjusted* Operating Margin *Se
Slide 28: Growing Book Value
Book Value EPS $1.10 $1.26 $1.93 $2.63 $1.77 $1.17 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 2016 2017 2018 2019 2020 YTD 2Q21 BV/ Share EPS Growing Book Value
Slide 29: 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 30: Reconciliation of Non-GAAP Results
Reconciliation of Non - GAAP Results (in Millions) 2016 2017 2018 2019 2020 Revenue, As Reported $ 146.1 $ 147.8 $ 190.5 $ 198.4 $ 179.4 Operating Income, as reported 12.2 11.7 19.6 24.7 16.7 Add: Acquisition/ Restructuring related Costs 0.4 0.1 1.1 - - Less: Material overcharge Settlement (2.1) (0.
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