Uniroyal Global Engineered Products, Inc. · OTC:UNIR
Uniroyal Global Engineered Products — Investor Presentation (June 2018)
39 slides from Uniroyal Global Engineered Products's investor presentation, June 2018
Slide 1: Uniroyal Global Engineered Products, Inc.
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. OTCQB: “UNIR” June 2018
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on management's
Slide 3: Company Overview: Vinyl Coated Fabrics
Company Overview: Vinyl Coated Fabrics Delivering Superior Performance, Color & Beauty Our Naugahyde® & Ambla® brands are known through the world as the premier choice within numerous markets. Demanded without compromise by today's discriminating customer needing, high quality, highly engineered, ro
Slide 4: Global Manufacturing Operations & Sales
Global Manufacturing Operations & Sales Uniroyal Engineered Products Stoughton, WI, U.S.A Uniroyal Global Limited Earby, Lancashire, UK Uniroyal Global (Shanghai) Shanghai. Sales and Technical ▪ Manufacturing : 2 Office. ▪ Global Sales & Design Offices : 6 ▪ Global Distributors : 65 (Asia / Europe &
Slide 5: North American and UK & European Manufacturing Facilities
North American UK & European Manufacturing Facility Manufacturing Facility Stoughton, Wisconsin. Earby, Lancashire. ▪ Plant size: 230,000 Sq. Ft. ▪ Plant size: 250,000 Sq. Ft & 15 acres ▪ Employees: 160 ▪ Employees: 242 ▪ Capacity: 13 Million Linear Yards ▪ Capacity: 15 Million Linear Yards ▪ Availa
Slide 6: Timeline
Timeline Uniroyal Global Engineered Products 2014 Uniroyal 1892 1920 1941 1964 1986 2003 Global U.S Rubber Naugahyde A synthetic rubber U.S. Rubber becomes Uniroyal, Inc. sells Engineered Uniroyal Engineered Company founded artificial leather substitute Uniroyal Inc. Uniroyal Plastics. Products – Pr
Slide 7: Public Market
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. PUBLIC MARKET
Slide 8: History
History • April of 2013 - Acquired Wardle Storeys and renamed to Uniroyal Global Limited Jan 2017 • November of 2014 - Uniroyal acquired by Invisa, Inc. (OTCQB:INSA) • April of 2015 - Changed company name to Uniroyal Global Engineered Products, Inc. and changed Stock symbol “UNIR” • May 2018 Officia
Slide 9: Stock Position, Trend and Growth
Stock Position, Trend and Growth
Slide 10: Investment Rationale
Investment Rationale • Technologically advanced Company in an established industry • Operate in highly engineered, high margin sector • Significant barriers to entry • Solid cash generator • Completed substantial investment into facility to enhance productivity • In excess of $4mm on productivity en
Slide 11: Markets
UNIROYAL GLOBAL ENGINEERED PRODUCTS MARKETS
Slide 12: Current Revenue
Current Revenue Our Products and Markets are uniquely diversified and as a result provide us with an enviable balanced portfolio. Automotive and Light truck interiors 65% Heavy Truck, Transportation & Industrial Equipment 14% Commercial Seating and Medical Equipment 21%
Slide 13: Serving our Global OEM's
Serving our Global OEM’s padi aaa ENGINEERED PRODUCTS | MASERATI Mercedes-Benz Y RENAULT [IVECO TEREx we rhe eo x3 RON! CHRYSLER
Slide 14: Automotive
Automotive • Strong & Successful Presence and continuing to build Globally. • OEM & VM Design & Styling Studios see us as their go to company for new product specification, designs, grain, color and harmony solutions.
Slide 15: Automotive and Light Truck Interiors Components & Modules
Automotive and Light Truck Interiors Components & Modules Seating Cut and sew, pour in place & low pressure molding. Instrument Panels Compression molding & vacuum forming. Door Casings Compression molding, vacuum forming & low pressure molding. Gear /Handbrake Cut and sew. Sun Visors HF welding. He
Slide 16: Markets – Naugahyde Applications
Markets – NAUGAHYDE Applications
Slide 17: Hotels, Recreational and Hospitality
Hotels, Recreational and Hospitality Commercial Seating and Coverings supplied Globally ◼ Niche markets driven by specific customer specifications. ◼ Naugahyde – Strongest brand name in North America for high end robust applications. ◼ European integration with Ambla and Naugahyde brands leading to
Slide 18: Indoor and Outdoor Contract Seating
Indoor and Outdoor Contract Seating Restaurant, Hospitality and Commercial Seating ▪ Commercial Seating ▪ Hospitality ▪ Residential Care ▪ Stadium Seating
Slide 19: Thin Film Calendered Sheet
Thin Film Calendered Sheet Medical ▪ Mattress Covers ▪ Sticking plasters Nuclear protection ▪ Contamination suits ▪ Disposable products Lamination ▪ Caravan interiors ▪ Shop fitting FR Products ▪ Cinema screens ▪ Upholstery Strollers & Nursery ▪ Changing mats ▪ Furniture
Slide 20: Design & Product Development
DESIGN, & PRODUCT DEVELOPMENT
Slide 21: World Class Styling, Design and Development Team
Design and Development World Class Styling, Design and Development Team. ▪ New base and print color developments. ▪ Extensive embossed effects library (grain) ▪ Pilot plant samples up to (600mm) ▪ Full scale trials within 6-8 weeks
Slide 22: Research & Product Development
Research & Product Development In-house Developments:- ▪ Lower VOC emissions ▪ Water-based coatings ▪ UK /US Comprehensive Testing Labs ▪ Anti-squeak ▪ Technical Products developed in house ▪ Anti-soil ▪ Experience technical team of 20 staff ▪ Flame Retardant/Low Smoke ▪ Proprietary product developm
Slide 23: Quality, Environmental and Safety Standards
Quality, Environmental and Safety Standards We take an absolute no compromise approach to quality ▪ ISO9001/2008 ▪ Environmental Management Systems certified to IS0 14001 ▪ TS & IATF 16949 certification ▪ Compliance with REACH regulations ▪ VDA 6.3 compliant ▪ A member of Vinyl Plus Foundation ▪ OEK
Slide 24: Financial Information
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. FINANCIAL INFORMATION
Slide 25: Financials ($ in thousands)
Financials ($ in thousands) Income Statement Summary: Year Ended Three Months Ended 2016 2017 2017 2018 Net Revenue $100,377 $ 98,138 $ 25,758 $ 26,430 Gross Profit $ 22,862 $ 18,412 $ 5,376 $ 4,617 22.8% 18.8% 20.9% 17.5% Income * $ 6,181 $ 2,809 $ 1,445 $ 475 6.2% 2.9% 5.6% 1.8% EBITDA $ 9,504 $ 6
Slide 26: Financials: Three Months Revenue and Gross Profit
Financials Three Months Revenue: • Net sales for 2018 were $26.4 million compared to $25.8 million for 2017. • Net currency effect had a positive $1.8 million impact on 2018 sales. • Automotive sector decreased approximately 1.1% due to a decline in the U.S. market as automotive manufacturers ration
Slide 27: Recent Financial Results
Recent Financial Results • 2017 - Perfect Storm • Our largest two OEM’s reduced production time to reset inventories • Raw materials spiked in both the US and Europe • Suffered some operational inefficiencies due to the reduction of production volume in the US and start up issues on the rollout of n
Slide 28: 2018/19 Financial Outlook
2018/19 Financial Outlook • Significant growth in Industrial sector in 2018 • Selective growth in automotive sector in the U.S. and Europe • Expanding customer base across all sectors including China • Improving operations will drive margin expansion
Slide 29: Balance Sheets ($ in thousands)
Balance Sheets ($ in thousands) Balance Sheet Summary: 12/31/17 4/1/18 Cash $ 1,267 $ 821 Accounts receivable 15,167 16,600 Inventory 19,770 19,973 Other current assets 884 817 Fixed assets, net 17,289 17,733 Other assets 8,277 8,432 Total Assets $62,654 $64,376 Accounts payable and other current li
Slide 30: Equity Detail ($ in thousands)
Equity Detail ($ in thousands) Stockholders’ Equity: 12/31/17 4/1/18 Preferred Units, UEP Holdings, 5.0% dividend ($20,000,000 liquidation value) $ 618 $ 618 Preferred Units, UEP Holdings, 7.0% dividend ($15,000,000 liquidation value) 463 463 Preferred Shares, Uniroyal Global (Europe) Limited, 5.0%
Slide 31: Company Objectives
UNIROYAL GLOBAL ENGINEERED PRODUCTS COMPANY OBJECTIVES
Slide 32: 2018/19 Revenue Objectives
2018/19 Revenue Objectives • Further penetration into current Automotive OEMs and expanding our global customer base – Automotive OEM’s need a Global Supplier across multiple applications & regions. – Focused on Design and Technical advancements that lead our growth in our Global Auto Markets • Entr
Slide 33: Strategic Performance Objectives
Strategic Performance Objectives Continued Margin Expansion – Productivity investments • Expanded capacity in Europe with technology upgrades (coater & water based technologies) • Continued synergy from Acquisition integration – Driving lean manufacturing and continuous improvement across both manuf
Slide 34: Strategic Growth Opportunities
Strategic Growth Opportunities Additional accretive earnings through M&A activity Add-on acquisitions for existing markets • Rationalization of production capacity in the industry Complimentary Market Opportunities increase content on existing and new business and expand product offerings to increas
Slide 35: Potential Strategic Growth Opportunities: Asia (China)
Potential Strategic Growth Opportunities Geographic Expansion completes our Global Footprint Asia (China) • Status • Office officially opened in Shanghai • Currently receiving Request For Quotes OEM’s producing in China • Market • 50% of Global Coated Fabrics Market • 42.3% of Auto production • Mass
Slide 36: Positioned for Growth
Strategic Growth Opportunities Positioned for Growth • Infrastructure investment in place to accelerate synergies with future acquisitions • Flexible capital structure provides financing capability for acquisitions • Potential investment opportunities identified
Slide 37: Questions
Thank you for your interest in:- Uniroyal Global Engineered Products. Questions Request copy of our presentation or for additional material email to :- info@uniroyalglobal.com
Slide 38: Appendices
UNIROYAL GLOBAL ENGINEERED PRODUCTS Q&A APPENDICES
Slide 39: Market Overview
Market Overview Global Coated Fabrics Market estimated Polymer Coated Fabrics by Market Sector at $16.5 billion • Transportation 35% Polymer Coatings represents 85% • Protective Clothing 15% • Industrial 12% Coated Fabrics by Region • Furniture 10% • Other 28% • Asia Pacific $6.9 B • North America $
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