Ufp Technologies, Inc. · NASDAQ:UFPT
Ufp Technologies — Investor Presentation (August 2018)
37 slides from Ufp Technologies's investor presentation, Aug 28, 2018
Slide 1: Welcome Investors August 29, 2018
Welcome Investors August 29, 2018
Slide 2: Safe Harbor Statement
Nasdaq: (UFPT) This presentation contains forward - looking information that involves risks and uncertainties, including statements about the Company’s prospects, financial performance targets and goals, anticipated advantages the Company expects to realize from its acquisition strategies, the Compa
Slide 3: Who We Are
Nasdaq: (UFPT) Who We Are UFP Technologies is an innovative designer and custom converter of foams, plastics, and natural fiber materials . Headquarters : Newburyport, MA Ticker: UFPT Market Cap: $237 Million Share Count: 7.3 Million Annual Revenue: $148 Million Proforma* Annual Revenue: $191 Millio
Slide 4: What We Do
Nasdaq: (UFPT) What We Do We combine our: • Materials expertise • Design engineering capabilities • Precision manufacturing capabilities to help our customers develop, improve, manufacture, or safely transport their products.
Slide 5: Materials Expertise
Nasdaq: (UFPT) Materials Expertise
Slide 6: Our Value Proposition: Design engineering
Nasdaq: (UFPT) Our Value Proposition » Design engineering • 90 + members of the Engineering group • Culture of innovation • History of innovation
Slide 7: Our Value Proposition: Precision manufacturing
Nasdaq: (UFPT) Our Value Proposition » Precision manufacturing • 9 factories • 14 clean rooms • 2 design centers • Certified quality systems
Slide 8: Systems and Certifications
Nasdaq: (UFPT) Systems and Certifications ISO 9001 Quality Management ISO 13485 Medical Device FDA Registration ISO 14001 Environmental ISO/TS 16949 Automotive AS9100D Aerospace DDTC & ITAR registered ERP/CRM
Slide 9: Growth Strategy
Nasdaq: (UFPT) Growth Strategy Two - pronged growth strategy: 1) Internal growth: market to our sweet spot 2) Strategic acquisitions
Slide 10: Internal Growth Strategy
Nasdaq: (UFPT) Internal Growth Strategy • Infection prevention • Orthopedic implant packaging • Orthopedic soft braces • Advanced wound care • Sterile packaging • Surgical instrument protection • Biopharma Industrial 5%* Automotive 12% • Interior trim & structural • Acoustic/thermal insulation • Wei
Slide 11: Medical
Nasdaq: (UFPT) Medical $371 Billion Global Medical Device Market with a 5.2% 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 Differ
Slide 12: Medical Product Examples
Nasdaq: (UFPT) Medical Medical Product Examples:
Slide 13: Automotive
Nasdaq: (UFPT) Automotive 17 Million Light Vehicles Manufactured in the US 1 UFP innovation in safety, comfort, noise control, and weight reduction leads to solutions that are lighter, stronger, and better able to manage heat, moisture, and sound. Our components are present on many of the world’s le
Slide 14: Automotive Product Examples
Nasdaq: (UFPT) Automotive Automotive Product Examples:
Slide 15: Aerospace & Defense
Nasdaq: (UFPT) Aerospace & Defense Aircraft Volumes Expected to Double by 2037 1 While Defense Opportunities Lie in Long - term R&D UFP expertise in comfort & safety components, acoustic insulation, thermal insulation, engine components, uniforms & tactical gear, cases and inserts. UFP Differentiati
Slide 16: Aerospace & Defense Product Examples
Nasdaq: (UFPT) Aerospace & Defense Aerospace & Defense Product Examples:
Slide 17: Aerospace Components
Nasdaq: (UFPT) Aerospace & Defense Aerospace Components
Slide 18: Molded Fiber
Nasdaq: (UFPT) Molded Fiber Sustainable Packaging Has Grown to $210B Worldwide Market with Annual Growth Rate of 7.7% for the Next Decade 1 Molded fiber widely accepted as the go - to environmentally friendly alternative to polymer - based materials. Customers include a wide range of well - known co
Slide 19: Molded Fiber Product Examples
Nasdaq: (UFPT) Molded Fiber Molded Fiber Product Examples:
Slide 20: Why Invest?
Nasdaq: (UFPT) Why Invest? Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive f inancial metrics
Slide 21: Significant market growth opportunities
Nasdaq: (UFPT) Why is UFP an exciting investment? Significant market growth opportunities » Addressable market is growing • Medical – aging population • Aerospace – safer, lighter aircraft » Universe of specialty materials growing
Slide 22: Barriers to Entry
Nasdaq: (UFPT) 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 relati
Slide 23: National Footprint
Nasdaq: (UFPT) National Footprint Gain Efficiencies Asset utilization Shared best practices Shared resources 9 Manufacturing Facilities - Over 1 million Square Feet of Space
Slide 24: Management Team
Nasdaq: (UFPT) Management Team R. Jeffrey Bailly – Chairman, CEO & President 30 - year history at the company. MBA, CPA. Ronald Lataille – CFO, SVP & Treasurer 20 - year history at the company. CPA. Mitchell Rock – SVP Sales & Marketing 20 - year history at the company. Chris Litterio – SVP Human Re
Slide 25: Creating Shareholder Value: Proven Growth Strategy
Creating Shareholder Value Proven Growth Strategy
Slide 26: Organic Growth Opportunity
Nasdaq: (UFPT) Organic Growth Opportunity Organic Growth (Target of 5% to 7%) » Focus on higher growth markets (medical – approx. 60% of rev enue and growing) » Expand business with existing customers • Offer complementary pr oducts and services • Additional value - add services » Gain market share
Slide 27: Acquisition Growth Opportunity
Nasdaq: (UFPT) Acquisition Growth Opportunity Acquisition Growth (Target of 5% to 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 • Re
Slide 28: Acquisitive Growth Strategy
Nasdaq: (UFPT) Acquisitive Growth Strategy 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 s
Slide 29: Revenue Growth, Margin Expansion & Strong Financial Profile
Revenue Growth, Margin Expansion & Strong Financial Profile FINANCIAL REVIEW
Slide 30: Financial Targets
Nasdaq: (UFPT) Financial Targets 10% - 14% Revenue Growth 11% - 13% Operating Margin 27% - 28% Gross Margin 3 to 5 Year Financial Targets
Slide 31: Sales Growth 2014-2018
Nasdaq: (UFPT) 0 20 40 60 80 100 120 140 160 180 200 2014 2015 2016 2017* YTD '17 YTD '18 Sales In Millions $ 148 Dielectrics 2017 Revenue $43 million 43 GAAP 2017 Revenue $148 million 23% YTD Growth 10% to 14% Targeted Revenue Growth Internal Growth + Acquisitions * Proforma revenue includes $43 mi
Slide 32: Revenue Mix Shift
Nasdaq: (UFPT) 0 20,000 40,000 60,000 80,000 100,000 120,000 Medical* Consumer Automotive Electronics Industrial Aerospace & Defense 2014 2015 2016 2017* Revenue Mix Shift Pro - forma Revenue Mix Shift 2014 to 2017 Medical Mix Increased from 36% to 60% * Proforma revenue includes $43 million of reve
Slide 33: Gross Profit/Margin
Nasdaq: (UFPT) Gross Profit/Margin Gross Margin Target: 27% to 28% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 27 - 28%Target 10.0% 15.0% 20.0% 25.0% 30.0% 2014 2015 2016 2017 Q217 2Q18
Slide 34: Adjusted Operating Income
Nasdaq: (UFPT) Adjusted* Operating Income Operating Income Margin Target: 11% to 13 % Operating Leverage from Mix Shift + Acquisition Synergies + Efficiencies 11 - 13% Target * Adjusted Operating Income is a non - GAAP term. A reconciliation to GAAP is provided in the Appendix 0.0% 2.0% 4.0% 6.0% 8.
Slide 35: Growing Book Value
Nasdaq: (UFPT) Growing Book Value Book Value EPS $1.05 $1.05 $1.10 $1.26 $0.78 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 2014 2015 2016 2017 YTD 2Q18 BV/ Share EPS
Slide 36: Thank you
UFP TECHNOLOGIES Thank you
Slide 37: Adjusted Operating Income Non-GAAP to GAAP Reconciliation
Nasdaq: (UFPT) Adjusted Operating Income Non - GAAP to GAAP Operating Income Reconciliation
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