Universal Electronics Inc. · NASDAQ:UEIC
Universal Electronics — 20th Annual Imperial Capital Security Investor Conference (December 2023)
22 slides from Universal Electronics's conference presentation, Dec 14, 2023
Slide 1: Imperial Capital Security Investor Conference
Universal Electronics Inc. Imperial Capital Security Investor Conference as of September 30, 2023 reported on December 14, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains "forward-looking statements” within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipa
Slide 3: Our Mission: Create smarter living
OUR MISSION Create smarter living To create products and technologies that help everyday people easily discover and interact with the devices and services in their home. 3
Slide 4: UEI is the global leader in wireless universal control solutions
UEI is the global leader in wireless universal control solutions for home entertainment and smart home devices Our employees worldwide design, develop, manufacture, ship and support over 100 millions of innovative consumer products each year offered by the world’s leading brands in the consumer elec
Slide 5: We do ctrl
we do ctrl Entertainment HVAC Whole Home 5
Slide 6: We do ctrl: Embedded Technology, Finished Goods, Software & Services
we do ctrl Embedded Finished Software & Technology Goods Services 6
Slide 7: UEI at a glance
Market Share Leader in Connected Home Control • More than three decades of experience designing and developing wireless entertainment and home control solutions • Worldwide leader in growing market for entertainment (voice) remote controls • Broad portfolio of connected sensing and control technolog
Slide 8: Connected Home Business Strategy
BUSINESS STRATEGY Leadership position in intelligent A/V device discovery, setup and control has enabled us to develop core values and expertise that can be leveraged into new markets. CONNECTED HOME Attractive, growing markets worth $3.5B Home Entertainment Climate Control Home Automation & Securit
Slide 9: Entertainment Control Market
Entertainment Control Market Overall connected TV demand continues to be strong • Primarily driven by Smart TV, Streaming and Advanced Set-Top-Boxes Traditional pay TV market demand remains flat • North America down, other markets up • Still only 30% of pay TV market has advanced system Move to more
Slide 10: Climate Control Opportunity
Climate Control Opportunity From basic to smart Climate control systems are growing and getting smarter Addressable HVAC market for residential climate control estimated at $1B and to be growing at 10%, driven by: • Thermostats: upgrading from programable to smart thermostats • Wall controllers: add
Slide 11: Climate Control Value Proposition
CLIMATE CONTROL VALUE PROPOSITION • Modular platform – potential application across multiple markets and channels • Complete smart thermostat line-up – cloud native architecture with full suite of connectivity, interoperability, and AI support • Built-in end user and installer support - easy onboard
Slide 12: Re-imagine Intelligent Climate Control
RE-IMAGINE INTELLIGENT CLIMATE CONTROL ▪ Opportunity to penetrate high growth, HVAC OEM Climate Control market. ▪ Invest in developing thermostat solutions, sensors and software optimized for HVAC OEMs. ▪ Creating innovative use cases to re-define the role of Climate Control in the home. Universal E
Slide 13: Bringing Connectivity, Interoperability & Smarter Living to the Smart Home
BRINGING CONNECTIVITY, INTEROPERABILITY & “SMARTER LIVING” TO THE SMART HOME UEI has the expertise to bring seamless interoperability and deliver a derived value proposition. SMARTER LIVING Comfort and Convenience Safety and Security Customer CLOUD BUSINESS LOGIC PLUG/SWITCH AIR QUALITY LOCKS DOOR &
Slide 14: Embedded and Cloud Software: QuickSet
QuickSet ® delivers Smart Home Interoperability • Launched in 2008, QuickSet ® has been deployed in over 600 million devices and is providing the worlds' most comprehensive solution for smart home device discovery and control. • QuickSet ® Cloud has scaled across industry application to manages over
Slide 15: Partnering with scalable channel leaders
Partnering with scalable channel leaders Video Service Providers Consumer Electronics Consumer Accessories Security Climate Control Home Security Home Automation 15
Slide 16: Business Highlights
BUSINESS HIGHLIGHTS • Design wins represent nearly 70% of HVAC market • Announced METUS SDW Thermostat (Tide Dial) now shipping • Recent awards also include LG, Daikin, Toshiba-Carrier, METUS SRW, and several others • More than 10 customer-initiated development projects kicked-off based on the UEI T
Slide 17: Q3 2023 Results and Q4 Guidance
AUTHORIZED 1 MILLION SHARE STOCK REPURCHASE PROGRAM FOCUSING ON HIGHER GROWTH CONNECTED HOME CHANNEL Adjusted Non-GAAP* • Winning new business that is expected to build revenues ($ M, except EPS) Q3 2023 Q3 2022 throughout 2024 and 2025 Net Sales $107.1 $148.5 OPTIMIZING MANUFACTURING FOOTPRINT Gros
Slide 18: Thank you! Questions?
Thank you! Questions? 18
Slide 19: Financial Appendix
(UNIVERSAL (ELECTRONICS.
Slide 20: Use of Non-GAAP Financial Metrics
USE OF NON-GAAP FINANCIAL METRICS In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GA
Slide 21: Reconciliation of GAAP to Adjusted Non-GAAP Financial Results
Three Months Ended September 30, Nine Months Ended September 30, RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL RESULTS 2023 2022 2023 2022 (In thousands, except per share amounts, unaudited) Net income (loss): Three Months Ended September 30, Nine Months Ended September 30, Net income (loss)
Slide 22: Reconciliation of GAAP to Adjusted Non-GAAP Outlook and Financial Results
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP OUTLOOK AND FINANCIAL RESULTS (In thousands, except per share amounts, unaudited) Three Months Ended December 31, 2023 2022 Low Range High Range Actual Net sales: Net sales - GAAP $ 95,000 $ 105,000 $ 122,758 Total adjustments (1) — — — Adjusted Non-GAAP n