Uniroyal Global Engineered Products, Inc. · OTC:UNIR
Uniroyal Global Engineered Products — Investor Presentation (March 2017)
39 slides from Uniroyal Global Engineered Products's investor presentation, March 2017
Slide 1: Uniroyal Global Engineered Products, Inc.
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. OTCQB: “UNIR” March 2017
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 many markets. Demanded without compromise by today's discriminating customer, high quality, highly engineered product to many
Slide 4: Current Revenue
Current Revenue Our Products and Markets are uniquely diversified and provide us with an enviable balanced portfolio. Automotive and Light truck interiors 65% Heavy Truck, RV’s and Industrial Equipment 14% Commercial Seating and Medical Equipment 21%
Slide 5: 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 6: Global Manufacturing Operations
Global Manufacturing Operations Uniroyal Engineered Products Stoughton, WI, Uniroyal Global U.S.A Limited Earby, Lancashire, England Sales & Distribution Manufacturing : 2 Office Design & Sales offices : 5 Global Distributors : 65 (Asia / Europe & Americas) Sales and R&D Teams : 25 People
Slide 7: 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: 193 Employees: 227 Capacity: 13 Million Linear Yards Capacity: 15 Million Linear Yards Availa
Slide 8: 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 $
Slide 9: Design & Product Development
DESIGN, & PRODUCT DEVELOPMENT
Slide 10: World Class Designers and Development Team
Design and Development World Class Designers and Development Team. New color developments. Extensive effects library (print/grain) Pilot plant samples up to (600mm) Full scale trials within 6-8 weeks
Slide 11: Research & Product Development
Research & Product Development UK & US Comprehensive Testing Labs Lower VOC emissions Technical Products developed in house Water based coatings development Experience technical team of 20 staff Anti-squeak Proprietary product development Anti-soil Computer color match systems Fl
Slide 12: 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 16949 certification Compliance with REACH regulations VDA 6.3 compliant A member of Vinyl Plus Foundation OEKO-TEX s
Slide 13: Markets
UNIROYAL GLOBAL ENGINEERED PRODUCTS MARKETS
Slide 14: Serving our Global OEM's
Serving our Global OEM's pal ala edla ENGINEERED PRODUCTS Mercedes-Benz 0 RENAULT IVECO tTEREx we ra eo x3 \ZooON’ CHRYSLER
Slide 15: Automotive
Automotive • Strong & successful presence in US, UK & Italy • We are seeing positive developments in Germany – Particularly as Germany will remain the volume producer of European automotive 5.6-5.8m vehicles produced there from 2016. • Spain & Sweden remain positive targets for us. • OEM & VM Design
Slide 16: 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 17: Recreational and Hospitality
Recreational and Hospitality 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 growth opportunities Continual innovation in product deve
Slide 18: Markets – Naugahyde Applications
Markets – NAUGAHYDE Applications
Slide 19: Indoor and Outdoor Contract Seating
Indoor and Outdoor Contract Seating Hospitality Residential Care Stadium Seating
Slide 20: Indoor and Outdoor Contract Seating
Indoor and Outdoor Contract Seating Medical Residential Leisure Mass Transportation
Slide 21: 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 22: 2017 Company Objectives
UNIROYAL GLOBAL ENGINEERED PRODUCTS 2017 COMPANY OBJECTIVES
Slide 23: 2017/8 Revenue Objectives
2017/8 Revenue Objectives Deeper penetration into current automotive OEMs and expanding our customer base – Automotive OEM’s demand Global suppliers across multiple applications & regions – Focused on Design and technical advancements to lead growth in Global Auto markets Entrance into new German OE
Slide 24: Strategic Performance Objectives
Strategic Performance Objectives Continued Margin Expansion – Productivity investments • Expanded capacity in Europe with technology upgrades (water based print) • Continued synergy from Acquisition integration – Driving lean manufacturing and continuous improvement across both manufacturing facilit
Slide 25: 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 to expand product offerings & increase
Slide 26: Potential Strategic Growth Opportunities: Asia (China)
Potential Strategic Growth Opportunities Geographic Expansion to complete the Global Footprint Asia (China) • 50% of Global Coated Fabrics Market • 42.3% of Auto production • Growing economy • Mass Transportation opportunity • Construction and Agricultural Market - Large • Hospitality and medical fa
Slide 27: Strategic Growth Opportunities: 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 Management estimates that with geographic expansion, new technology and product devel
Slide 28: Public Market
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. PUBLIC MARKET
Slide 29: Recent History
Recent History • April of 2013 - Acquired Wardle Storeys and renamed to Uniroyal Global Limited late 2016 • 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” • Q1 2017
Slide 30: Stock Position, Trend and Growth
- 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 7/1/14 8/1/14 9/1/14 10/1/14 11/1/14 12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 Stock Position, Trend and Growth 11/1/15 12/1/15 1/1/16 Daily Close Stock Price 2/1/16 3/1/16 4/1/16 5/1/16 UNIR Uniroyal Global Engineer
Slide 31: Investment Rationale
Investment Rationale • Technologically advanced Company in an established industry • Superior cash generation • Above average revenue growth • Continued margin expansion • Deal integration synergies continue • Diversified platform offers cyclical defense • Has outperformed in declining markets • Add
Slide 32: Financial Information
UNIROYAL GLOBAL ENGINEERED PRODUCTS, Inc. FINANCIAL INFORMATION
Slide 33: Financials (Unaudited)
Financials (Unaudited) ($ in thousands) Income Statement Summary: 9 MO 9 MO 2015 2015 2016 Net Revenue $ 99,762 $ 76,486 $ 76,977 Gross Profit $ 21,949 $ 16,595 $ 17,736 22.0% 21.7% 23.0% Income * $ 5,561 $ 4,364 $ 4,844 5.6% 5.7% 6.3% EBITDA $ 8,629 $ 6,633 $ 7,372 8.6% 8.7% 9.6% * Income is before
Slide 34: Financials (Unaudited)
Financials (Unaudited) Revenue: • Net sales for the nine months 2016 increased $490,797 compared to 2015. • 2015 period was a 40-week period compared to a 39-week period in 2016. The extra week contributed approximately $500,000 to the decrease. • Net currency effect had a negative $1.7 million impa
Slide 35: Financial Outlook
Financial Outlook • Positive growth in automotive sector in both the U.S. and Europe • Increasing penetration at existing customers • Expanding customer base • Introduced a new linen-textured vinyl-coated fabric called Casablanca • Negative currency translation effect from British Pound on income of
Slide 36: Balance Sheets
Balance Sheets ($ in thousands) Balance Sheet Summary: 01/3/16 10/2/16 Cash $ 1,910 $ 1,558 Accounts receivable 14,209 15,452 Inventory 17,528 17,064 Other current assets 2,914 2,309 Fixed assets, net 14,003 13,609 Other assets 7,710 7,751 Total Assets $58,274 $57,743 Accounts payable and other curr
Slide 37: Equity Detail
Equity Detail ($ in thousands) Stockholders’ Equity: 1/3/16 10/2/16 Preferred Shares, UEP Holdings, 5.0% dividend ($20,000,000 liquidation value) $ 618 $ 618 Preferred Shares, UEP Holdings 6.0% dividend ($15,000,000 liquidation value) 463 463 Preferred Shares, Engineered Products Acquisition Ltd, 5.
Slide 38: Cash Flow
Cash Flow ($ in thousands) Cash Flow Summary: 10/4/15 10/2/16 Net income $ 3,904 $ 4,360 Adjustments to reconcile to cash flow from operating activities Depreciation and amortization 1,160 1,310 Stock-based compensation 39 278 Changes in current assets and liabilities, net (2,370) (821) Other (44) 6
Slide 39: 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
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