Exhibit 99.1
Welcome Investors March 2022 Welcome Investors November 2023
Forward Looking Statements 2 Certain statements in this presentation may be considered “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward - looking statements generally relate to future events or the Company’ s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “be lie ve,” “predict,” or similar words. These forward - looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward - looking statements. These forward - looking statements include, among other things, statements regarding: the Company’s prospects, anticipated advantages the Company expects to rea liz e from its acquisition strategies, the Company’s financial performance, targets, goals, and metrics, the Company’s revenue, gross margin and operati ng margin targets, participation in multiple markets, its engineering and product development resources, the benefits of the Company’s product development busin ess (including its margin and customer relationship), the Company’s business opportunities and competitive advantages, the Company’s growth potential and s tra tegies for growth, and statements about customer and industry demand. Investors are cautioned that such forward - looking statements are not guarantees of future performance and involve risks and unce rtainties, including without limitation risks associated with the identification of suitable acquisition candidates and the successful, efficient executio n o f acquisition transactions and integration of any such acquisition candidates, economic conditions that affect sales of the products of the Company’s custom ers , adverse changes in general economic and geopolitical conditions, including, without limitation, global supply chain disruptions, labor cost increases an d i nflation, the ongoing conflict between Russia and Ukraine and the adverse effect such conflict has or may have on our business and results of operations, the ability of the Company to obtain new customers, the ability of the Company to fulfill its obligations on long - term contracts and to retain current customers, particu larly our customer who accounted for more than 25% of our revenue for the nine month period ending September 30, 2023, the ability of the Company to maintain and gro w its current margins, the ability of the Company to achieve its revenue, gross margin and operating margin targets, the Company’s ability to adapt to c han ging market needs and other factors as well as other risks and uncertainties that are detailed in the documents filed by the Company with the Securities and Exchange Commission (“SEC”). Accordingly, actual results may differ materially. The risks and uncertainties included above are not exhaustive. Readers are re ferred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10 - K and 10 - Q. The Company expressly disclaims any obligation or un dertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, condi tio ns or circumstances on which any such statement is based. Use of Non - GAAP Financial Measures This presentation includes non - generally accepted accounting principles (“GAAP”) performance measures. The Company uses these no n - GAAP financial measures to facilitate management's financial and operational decision - making, including evaluation of the Company’s historical operating results. The Company’s management believes these non - GAAP measures are useful in evaluating the Company’s operating performance and are similar measure s reported by publicly listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in ana lyzing operating performance and prospects. These non - GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends af fecting the Company’s business. By providing these non - GAAP measures, the Company’s management intends to provide investors with a meaningful, consist ent comparison of the Company’s performance for the periods presented. These non - GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company's definition of these non - GAAP measures may differ from similarly titl ed measures of performance used by other companies in other industries or within the same industry .
Who We Are UFP Technologies is an innovative designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. 3 Ticker: UFPT Headquarters: Newburyport, MA Annual Revenue: ~$390 million 3,000+ Employees/ Temps Established: 1963 13 Manufacturing Facilities Key Stats: 5 Design R&D Centers Market Cap: ~$1.1 Billion 1 Share Count: ~7.6 million 1 1. As of 11/3/2023
We help our customers develop, improve, manufacture, or protect their products through: 4 Design & engineering capabilities Materials expertise Strategic locations Precision manufacturing Shaping Innovation
Our Process Innovative process from design and engineering to manufacturing and delivery 5
Product Development Business 6 We bring deep experience in flexible material - based device manufacturing, from components and packaging, to final device assembly High Margin Added Expertise Stronger Customer Relationships Long Term Manufacturing 1 2 3 4 BENEFITS
Primary Focus Areas 86% 14% • Automotive • Aerospace & Defense • Industrial / Other Single use and single patient, polymer based medical devices and sterile packaging. Custom engineered components and protective solutions incorporating highly specialized materials for: 7
MedTech 8 1. Fortune Business Insights - $489 billion as of 2021. 5.5% CAGR for a forecast period of 2022 - 2029. 2. Medical Design & Outsourcing 3. YTD Sales Through September 30, 2023 MedTech Revenue Breakdown By Segment 3 $489 billion, 5.5% CAGR 1 Global Medical Device Market Customers include 25 of the top 30 largest medical device manufacturers in the world 2 Applications Expertise • Robotic Surgery Drapes • Orthopedic Sterile Packaging • Catheter & Guidewire Sterile Packaging • IV Port Cleaners • Surgical Site Preparation • Minimally Invasive Surgery Ports • Negative Pressure Wound Therapy • MedSurg Beds ϭϴ й ϭϱ й ϭϭ й /ŶĨĞĐƟŽŶWƌĞǀĞŶƟŽŶ WƌŽĚƵĐƚƐ ƚŽƉƌĞǀĞŶƚĂŶĚ ĐŽŶƚƌŽůŚŽƐƉŝƚĂůĂĐƋƵŝƌĞĚ ŝŶĨĞĐƟŽŶƐ ; ,/ Ϳ /ŶƚĞƌǀĞŶƟŽŶĂů Θ ^ƵƌŐŝĐĂů ĞǀŝĐĞƐ ͕ ƐƵď Ͳ ĂƐƐĞŵďůŝĞƐ ͕ ĐŽŵƉŽŶĞŶƚƐ Θ ƉĂĐŬĂŐŝŶŐƵƐĞĚ ĚƵƌŝŶŐƐƵƌŐŝĐĂůƉƌŽĐĞĚƵƌĞƐ KƌƚŚŽƉĞĚŝĐƐ ^ƚĞƌŝůĞ ďĂƌƌŝĞƌ ƉƌŽƚĞĐƟǀĞƉĂĐŬĂŐŝŶŐ ĨŽƌŝŵƉůĂŶƚƐ dŚĞƌĂƉĞƵƟĐƐ WƌŽĚƵĐƚƐĨŽƌĨĂƐƚĞƌ ƌĞĐŽǀĞƌLJŽƌĂƐƐŝƐŝƟŶŐŝŶ ĂĐƟǀŝƟĞƐŽĨĚĂŝůLJůŝǀŝŶŐ ^ƵƌĨĂĐĞƐ Θ ^ƵƉƉŽƌƚ ĞĚƐ ͕ ƉŽƐŝƟŽŶŝŶŐ ĚĞǀŝĐĞƐ ͕Θ ƚĞŵƉĞƌĂƚƵƌĞ ĐŽŶƚƌŽůƉĂĚƐ ŝĂŐŶŽƐƟĐƐ ŽŵƉŽŶĞŶƚƐĨŽƌŝŵĂŐŝŶŐ ĂŶĚƚĞƐƚĞƋƵŝƉŵĞŶƚ tŽƵŶĚĂƌĞ EĞŐĂƟǀĞWƌĞƐƐƵƌĞtŽƵŶĚ ĂƌĞĐŽŵƉŽŶĞŶƚƐƚŽ ƉƌŽŵŽƚĞĨĂƐƚĞƌŚĞĂůŝŶŐ ϭϬ й ϴ й ϴ й ϯ й KƚŚĞƌ ZŽďŽƟĐ^ƵƌŐĞƌLJ ^ƚĞƌŝůĞďĂƌƌŝĞƌĚƌĂƉĞƐƚŽ ŵŝƟŐĂƚĞŝŶĨĞĐƟŽŶƐ ͕ ƉƌŽƚĞĐƚ ŚĞĂůƚŚĐĂƌĞǁŽƌŬĞƌƐ ͕ ĂŶĚ ŝŵƉƌŽǀĞƉĂƟĞŶƚŽƵƚĐŽŵĞƐ
MedTech Portfolio Robotic Drapes Revascularization Device Needleless Injection Port Cleaner MedSurg Bed Negative Pressure Wound Therapy Compression Device 9
Advanced Components 10 INDUSTRIAL AUTOMOTIVE AEROSPACE & DEFENSE Highly engineered components and packaging used in targeted large and growing niches Our products are present on many of the world’s leading brands including GM, Ford, Mercedes, Tesla, Boeing and Lockheed Martin UFP Differentiation Precision molding Innovative design engineering Material expertise Complex laminated composites Dedicated in house tooling & equipment manufacturing AS9100 certified Strategic manufacturing locations 1 2 3 4 5 6 7
Advanced Components Product Portfolio Military Gear Protective Helmets Law Enforcement Protective Cases Automotive Interior Trim 11
Growth Strategy 12 Internal Growth: Market To Our Sweet Spot Strategic Acquisitions TWO - PRONGED
13 Organic Growth Opportunity Focus on high growth niche segments (MedTech – approximately 86% of revenue and growing) » Single - use, single - patient » Customer funded development Market to our sweet spot and differentiated capabilities » Leverage technology differentiation » Engineering resources » Exclusive access to specialty materials » Scale (footprint, clean room manufacturing) Expand business with existing customers » Offer complementary products and services » Additional value - add services
14 Acquisition Growth Opportunity Continue to Focus on Higher - Growth, Higher - Margin MedTech Opportunities that Create Value » Become more valuable to our customers » Strategic focus – new capability, geography, market penetration, materials, products » Add scale » Look for synergistic opportunities » Cultural fit Goal is for acquisitions to be accretive within the first year. Experienced and disciplined management team with 14 acquisitions completed
International Footprint 15 Galway, Ireland » Cleanroom manufacturing » Catheter & guidewire dispensers » Finished devices Tijuana, Mexico » Cleanroom manufacturing » MedSurg mattresses » Catheter & guidewire dispensers Costa Rica » Cleanroom manufacturing » Catheter & guidewire dispensers » Finished devices Dominican Republic » Robotic surgery drapes » Equipment drapes » Fluid warming basins International Locations
Why Invest? 16 Significant market growth opportunities Barriers to entry Strong customer relationships Experienced management team Proven growth strategy Attractive financial metrics
17 Significant Market Growth Opportunities Market Focused On » Better Patient Outcomes » Infection Prevention » Reducing Healthcare Costs Addressable market is growing International Footprint » Bringing New Opportunities
Barriers To Entry » Advanced systems (extensive quality certifications) » In addition to existing equipment, engineers will design product specific innovations in order to meet customer needs Systems » In - house custom equipment manufacturing capabilities Custom Equipment » 20 patents relating to foam, packaging, tool control, radio frequency welding, automotive super - forming processes, and other products Intellectual Property » Global footprint – competition is generally smaller companies that have limited resources and access to materials Scale » Veteran engineering team for product design and development; more than 90 members of the engineering group Engineering Resources » Offers broad array of materials to meet customer needs » Almost 60 years in business and strong supplier relationships » Exclusive access to several specialty medical grade materials Greater Access to Materials 18
Management Team 19 Chris Litterio SVP, Human Resources & General Counsel Former Managing Partner and head of employment law at a major Boston law firm; 6 - years at the company Steve Cardin VP & COO, MedTech 28 years in the medical device industry; 4 - years at the company Jason Holt CCO, MedTech / VP & GM, Advanced Components Former VP & GM at ITW; 5 - years at the company R. Jeffrey Bailly Chairman, CEO & President 35 - year history at the company Ronald Lataille CFO, Sr. VP & Treasurer 26 - year history at the company Mitchell Rock President, MedTech 30 - year history at the company.
Proven Growth Strategy 20 Creating Shareholder Value
Financial Targets 21
Financial Targets 22 3 to 5 Year Financial Targets 12 - 18% Revenue Growth 28 - 31% Gross Margin 15 - 18% Operating Margin
12% to 18 % Targeted Revenue Growth Internal Growth + Acquisitions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2018 2019 2020 2021 2022 Sept 2023 TTM 23 Revenue 1. TTM = The 12 month period ended September 30, 2023 1
Gross Margin Target – 28% to 31% Operating Leverage from Mix Shift + Acquisition synergies + Efficiencies 24 Gross Profit Margin Target: 28 - 31% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2018 2019 2020 2021 2022 Q3 2023 YTD
Operating Margin Target - 15% to 18% Operating leverage from mix shift + acquisition synergies + efficiencies 25 Adjusted* Operating Margin Target: 15 - 18% *See non - GAAP reconciliation on slide 29 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2018 2019 2020 2021 2022 Q3 2023 YTD
Growing Book Value 26 $1.26 $1.93 $2.63 $1.77 $2.09 $5.45 $5.43 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 2017 2018 2019 2020 2021 2022 Sept 2023 TTM * EPS Book Value / Share Book Value EPS 1 1. TTM = The 12 month period ended September 30, 2023
UFP Historical Stock Performance 20 Years 27 *Measured as the percent increase from November 21, 2003 through November 21, 2023. Ϭ й ϭϬϬϬ й ϮϬϬϬ й ϯϬϬϬ й ϰϬϬϬ й ϱϬϬϬ й ϲϬϬϬ й ϳϬϬϬ й ϴϬϬϬ й ϵϬϬϬ й EŽǀ Ͳ Ϭϯ EŽǀ Ͳ Ϭϱ EŽǀ Ͳ Ϭϳ EŽǀ Ͳ Ϭϵ EŽǀ Ͳ ϭϭ EŽǀ Ͳ ϭϯ EŽǀ Ͳ ϭϱ EŽǀ Ͳ ϭϳ EŽǀ Ͳ ϭϵ EŽǀ Ͳ Ϯϭ EŽǀ Ͳ Ϯϯ h&WdĞĐŚŶŽůŽŐŝĞƐ/ŶĐ ; h&Wd Ϳ WƌŝĐĞ й ŚĂŶŐĞ ZƵƐƐĞůů ϮϬϬϬ ; Δ Zhd Ϳ >ĞǀĞů й ŚĂŶŐĞ ^ Θ W ϱϬϬ ; Δ ^Wy Ϳ >ĞǀĞů й ŚĂŶŐĞ ϮϮϲ й ϯϯϭ й ϴ ͕ ϱϰϮ й
R. Jeffrey Bailly Chairman, CEO & President Newburyport, Massachusetts Ronald Lataille CFO, Sr. VP & Treasurer Newburyport, Massachusetts UFP Technologies 100 Hale St. Newburyport, MA 01950 978 - 352 - 2200 investorinfo@ufpt.com www.ufpt.com
Appendix Reconciliation of Non - GAAP Results (in Millions) 2018 2019 2020 2021 2022 Q3 2023 Revenue, As Reported $ 190.5 $ 198.4 $ 179.4 $ 206.3 $ 354.0 $ 298.6 Operating Income, as reported 19.6 24.7 16.7 21.2 55.4 44.9 Add: Acquisition/ Restructuring related Costs 1.1 - - 0.4 1.0 - Add earnout fair value adjustment - - - - 9.8 3.3 Less: Material overcharge Settlement (0.1) - - - - - Less: Gain or Add: Loss on Sale of fixed assets - - 0.5 - (6.1) 0.10 Less: Sale of MFT - - - - (15.6) - Adjusted Operating Income $ 20.6 $ 24.7 $ 17.2 $ 21.6 $ 44.5 $ 48.3 Adjusted Operating Margin 10.8% 12.4% 9.6% 10.5% 12.6% 16.2% 29