SLIDE 1
Unique Fabricating, Inc. Safe Harbor Investment Highlights 16.9% - - PowerPoint PPT Presentation
Unique Fabricating, Inc. Safe Harbor Investment Highlights 16.9% - - PowerPoint PPT Presentation
Unique Fabricating, Inc. Safe Harbor Investment Highlights 16.9% six-year revenue CAGR 1 Strong free cash flow Blue chip customer base of top-tier Consistent track record of manufacturers and OEMs profitability Significant barriers to
SLIDE 2
SLIDE 3
Investment Highlights
Strong free cash flow 16.9% six-year revenue CAGR1 Blue chip customer base of top-tier manufacturers and OEM’s Significant barriers to entry in most product lines Seasoned management team Consistent track record of profitability Favorable industry tail winds Proven ability to identify, acquire and integrate businesses
SLIDE 4
Stable Financial Profile
Adjusted EBITDA Revenue
SLIDE 5
Consumer demand has been shifting from traditional passenger cars to SUVs and light trucks
UFAB has a growing presence in the light truck segment Forecasted sales mix for 2019 highlights increase in sales for SUV/Light Truck
This shift has caused disruption in the North American auto market as manufacturers adjust production schedules to adapt inventories
UFAB took action during 2018 to enhance operating efficiency to better respond to changing market conditions by closing 2 plants and reducing annualized expenses by approximately $800,000
The shift from combustion engines to battery electric vehicles is accelerating
This is a positive trend for UFAB that drives demand for many of our products
New vehicle platform launches are expected to increase over the next 2 years
UFAB well positioned to capitalize on incremental revenue opportunities
Current Automotive Market Trends
SLIDE 6
- Unique’s Q1 2019 sales are expected to decline 15% YoY to approx $39.7M
- Lower industry production, unfavorable vehicle production mix, appliance business
reduction due to closing a facility in 2018, and the announced GM plant closures
- Adjusted diluted EPS expected to be in $0.01 – $0.03 range 1
- Adjusted EBITDA is expected to be in the range of $2.8M - $3.2M 1
- Anticipate violating the leverage ratio covenant of credit agreement
- Lead bank has proposed a waiver of the covenant violation for Q1 2019
- Subject to approval of the other banks in the syndicate
- The proposed bank waiver would prohibit dividends
- Initiatives to further reduce fixed costs are currently in process
North American automotive production volumes during the first quarter
- f 2019 were down 4.2% from Q1 2018
Q1 Business Update
SLIDE 7
North American Vehicle Production
SLIDE 8
CAGR
Exceeding Market Growth
Predecessor Successor NA Vehicle Production Volumes $175.3
$174.9
$170.5
SLIDE 9
- Fuel efficiency and
vehicle light-weighting
- Interior Comfort
- Localization
- f Production
Telematics and Infotainment Rapid pace of new vehicle launches
- Favorable Automotive Industry Trends
SLIDE 10
Increasing Noise, Vibration, and Harshness (NVH) Content Per Vehicle
- 1
- 2
After Before Before After
- 2010 Compact Car
2013 Version of Same Car
After Before
- 3
SLIDE 11
17 43 20 20 26 25 29 33 31 29 25
10.3 10.4 10.5 10.8 11.1 11.3 11.4 11.4 11.5 11.6 11.7 11.7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
U.S. Fleet Average Age has Reached Record High North American New Vehicle Platform Launches
North American New Vehicle Platform Launches
SLIDE 12
Market Opportunity
Automotive Industrial ~$0.7B Total Addressable Market 1 ~$1.1B Total Addressable Market
Market Characteristics:
- 1
1
Market Characteristics:
SLIDE 13
Growth Opportunities
Growth from Existing Customers Growth from New Customers Growth through Acquisitions & New Markets Growth from New Products
SLIDE 14
Investment Highlights
Strong free cash flow 16.9% six-year revenue CAGR1 Blue chip customer base of top-tier manufacturers and OEM’s Significant barriers to entry in most product lines Seasoned management team Consistent track record of profitability Favorable industry tail winds Proven ability to identify, acquire and integrate businesses
SLIDE 15
CONTACTS