Unifi, Inc. New · NYSE:UFI
Unifi, Inc. New — Unifi — Investor Presentation (June 2005)
33 slides from Unifi, Inc. New's investor presentation, Jun 7, 2005
Slide 1: Investor Presentations June 2005
Investor Presentations June 2005 UNIFI, INC.
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: Agenda
Agenda Industry Dynamics Strategy Financial Performance
Slide 4: Who We Are
....................................................................................................................................... RAW FIBER PRODUCERS YARN PRODUCER FABRIC PRODUCERS PRODUCT MANUFACTURERS BRANDS & RETAILERS Who We Are Unifi, Inc. (NYSE: UFI) is a diversified producer and process
Slide 5: Not All Segments Impacted Equally By Imports
Not All Segments Impacted Equally By Imports Apparel segment is the most impacted by imports. Within the home textiles segment, sheeting and bedding is most impacted by imports; whereas, home upholstery is less impacted by imports (imports share of 17%). Automotive and industrial end-uses, like medi
Slide 6: What We Do
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Slide 7: Polyester... The World's Fiber Of Choice
Polyester... The World's Fiber Of Choice In 2002, polyester replaced cotton to become world's number one choice of fiber. Polyester fiber share of the world consumption in 2004 is estimated at 40%. Global polyester demand growth is projected at 6 to 7% annually. Global polyester demand growth is pro
Slide 8: Our Supply Chain
Our Supply Chain synthetic yarn fabric garment il producer producer manufacturer ‘brand retailer + Product innovation + Technical expertise + Market intelligence + Merchandising assistance + Trend analysis unimatrix * Full-package sourcing
Slide 9: Unifi Market Position - Polyester Textured Yarn Supply Lost Overseas
Unifi Market Position - Polyester Textured Yarn Supply Lost Overseas Unifi rode a strong growth curve with the lowest costs, highest quality. October 1997 "Asian Crisis" set stage for cheap Asian downstream imports. As a result, U.S. domestic fabrics and apparel production declined significantly. Un
Slide 10: U.S.A. Nylon Textile Filament Yarn Market
U.S.A. nylon market impacted by change in consumer preferences / attitudes. (e.g. casual workplace led to decline in demand for pantyhose) During the last 5 years, nylon textile filament consumption declined by 31%. Consumption pattern in 2003 and 2004 shows that market decline could possibly stabil
Slide 11: Our North America Market Segments
Our North America Market Segments Our North America Market Segments Our North America Market Segments
Slide 12: Percentage Change in Imports of MMF Apparel Q1-2005 versus Q1-2004
Percentage Change in Imports of MMF Apparel Q1-2005 versus Q1-2004 Total MMF apparel imports into the U.S. grew by 9% in Q1-2005 compared to same period last year. China has taken share from other countries, which supply MMF apparel to the U.S. China has taken share from other countries, which suppl
Slide 13: China's Impact on the U.S. Apparel Supply
China's Impact on the U.S. Apparel Supply Greater China is taking share from U.S. domestic suppliers, Mexico, and Canada. This region (U.S. + Canada + Mexico + CBI + Andean) is estimated to account for close to 36% of the total U.S. apparel consumption in 2005.
Slide 14: Importance of CBI, Mexico, and Canada To The U.S. Domestic Textile Industry
Importance of CBI, Mexico, and Canada To The U.S. Domestic Textile Industry Close to 60% of all knit fabrics produced in the U.S. are exported to CBI, Mexico, and Canada. Knit fabric exports to CBI has been growing at an annual rate of 87% for the last 5 years. Close to 25% of all cotton woven fabri
Slide 15: China Safeguards Are Necessary to Counter the Unbalanced Level Playing Field
China Safeguards Are Necessary to Counter the "Unbalanced" Level Playing Field Currency Manipulation: China's unfair currency control policy makes them competitive compared to others in the global trade. Non-Performing Loans: Chinese industry, especially the "weak players" are operating due mostly t
Slide 16: Strategy
Strategy
Slide 17: Long-Term Strategy
Long-Term Strategy First, we believe that contrary to everything you read, there will be a market for textiles in North America. Our plan is to stabilize the U.S. business and return it to profitability, while recognizing that it will be a smaller market than in the past. Obtain a footprint in China
Slide 18: Adapting to Market Conditions - Our Changing Strategy
Adapting to Market Conditions - Our Changing Strategy Exit products that do not "At Least Cover" the cost to produce. Vertical integration (Kinston Acquisition). Relocate production to the most efficient operation. Downstream marketing. Turn non-productive assets to cash (i.e. corporate plane, vacan
Slide 19: Kinston Plant Acquisition
Kinston Plant Acquisition The acquisition resulted in a more vertically integrated base of operations through the addition of polymer spinning. Streamline the product mix and lines between Kinston and Yadkinville to optimize capacity to fit the market and better position to compete with imports. Rat
Slide 20: Sara Lee Acquisition
Sara Lee Acquisition Additional revenue of approximately $55 million Production increase of approximately 10 million pounds of textured yarn and 2.5 million pounds of covered yarn Increased Plant 1 utilization from 60% to 88% and Plant 3 from 50% to 92% Provides a short-term solution allowing us to
Slide 21: Commercial / Marketing Efforts
Commercial / Marketing Efforts Recently combined product development, marketing and Unimatrix to lower overhead and maximize coordination. Our downstream efforts including marketing, retail pull-through, product development, and Unimatrix are continuing to show positive results. Our Sorbtek brand wi
Slide 22: PVA Gross Margin and Sales Revenue Trend
PVA Gross Margin and Sales Revenue Trend PVA Gross Margin and Sales Revenue Trend PVA Gross Margin and Sales Revenue Trend
Slide 23: China Joint Venture Overview
China Joint Venture Overview China consumes around 42% of global polyester DTY and its domestic demand is growing at an annual rate of 8%. China's specialty DTY market next year will be almost as large as the entire US market. China's specialty DTY market is growing at an annual rate of 12% and curr
Slide 24: Financial Performance
Financial Performance
Slide 25: Consolidated Sales
Consolidated Sales 250 208 208 192 180 177 164, 166 173) £ a 100 8 $ 50 a+ June September December March 2003 m2004 =2005
Slide 26: EBITDA
EBITDA EBITDA - Defined as net income before interest, taxes, depreciation and amortization, excluding equity affiliate income or loss, restructuring expenses and other special items Reflects continuing operations only
Slide 27: EBITDA Reconciliation to Pre-Tax Income
EBITDA Reconciliation to Pre-Tax Income (in thousands $) 1 - Continuing operations only
Slide 28: Operating Results - Profit (Loss)
Operating Results - Profit (Loss)
Slide 29: CAPEX (USD In Millions)
USD In Millions 25.0 20.0 16.0 10.0 5.0 oo CAPEX 23.6 12.4 | | Fy 2003 Fy 2004 FY 2005 Est. ul
Slide 30: Cash Position
Cash Position March 2005 includes restricted cash of $2.8 million
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights (in thousands)
Slide 32: Our Brands
Our Brands yam story sustainable JE mélange <Micevia> Myriad eclypse” mypx Poa fiutiad augue ACABX Gielo Textra (Gutta?
Slide 33: UNIFI, INC.
UNIFI, INC.