Unifi Inc 8-K, filed Feb 16, 2022
Unifi Inc (UFI)
About this 8-K
Unifi Inc filed this 8-K on February 16, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
|
|
|
|
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
|
|
|
|
|
|
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Registrant’s telephone number, including area code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b‑2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01.Regulation FD Disclosure.
Unifi, Inc. (the “Company”) issued a press release announcing an Investor Day event on February 16, 2022, a copy of which is attached hereto as Exhibit 99.1. Members of the Company’s senior management team responsible for commercialization, technology, innovation, and sustainability will join Albert P. Carey, Executive Chairman; Edmund M. Ingle, Chief Executive Officer; and Craig A. Creaturo, Executive Vice President & Chief Financial Officer, to provide an overview of the Company. The program will focus on the Company’s long-term strategic plan and will include discussions of the Company’s commercial capabilities, operations, financials, and growth strategy. A live audio webcast and replay of the program will be available on the “Investor Relations” section of the Company’s website at www.unifi.com. A copy of the materials prepared for use by management is attached hereto as Exhibit 99.2 and will also be available on the “Investor Relations” section of the Company’s website at www.unifi.com.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit No. |
|
Description |
|
|
|
|
|
99.1 |
|
|
|
|
|
|
|
99.2 |
|
|
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
UNIFI, INC. |
|
|
|
|
|
|
|
Date: February 16, 2022 |
|
By: |
/s/ CRAIG A. CREATURO |
|
|
|
|
Craig A. Creaturo |
|
|
|
|
Executive Vice President & Chief Financial Officer |
Exhibit 99.1
UNIFI, Inc., Makers of REPREVE®, Hosts Investor Event Today
Leadership team will outline plan to reach $1.1 billion of revenue in fiscal 2025 and set long-term margin targets
Greensboro, North Carolina -- Unifi, Inc., (NYSE: UFI), makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, is hosting an investor event today to provide long-term revenue and margin targets and outline strategic plans for growing market share, expanding the REPREVE brand and further developing the Company’s existing innovative and sustainable portfolio.
Investor Day Presentation Highlights
|
• |
Fiscal 2022 revenues are expected to surpass $800 million, and the Company has set a goal of achieving $1.1 billion or more of revenues in fiscal 2025. |
|
• |
Strategic execution is expected to generate gross margin of 14% to 15% and Adjusted EBITDA of $110 million or more in fiscal 2025. |
|
• |
REPREVE Fiber products comprised 37% of consolidated revenues in fiscal 2021, and management expects to achieve a 50% or more composition by fiscal 2025. |
|
• |
Management will discuss: the initial, positive results from the installation of eAFK EvoCooler texturing machinery in its U.S. manufacturing facilities, the installation expansion that will cover the remaining Americas facilities in El Salvador and Brazil, and the increase of machines to be installed in the U.S. |
|
• |
The Company has set a goal of transforming a total of 50 billion plastic bottles by December 2025 after recently surpassing 30 billion plastic bottles transformed. |
|
• |
Representatives from WM (formerly Waste Management), L2 Brands and Haggar will discuss the benefits of utilizing the REPREVE brand, process and products. |
Eddie Ingle, Chief Executive Officer of Unifi, commented, “As we celebrate 50 years of resilience and dedicated service to our customers, we are also marking our transformation for the future and outlining plans to achieve some significant financial milestones. We look forward to generating further long-term value and engaging with shareholders throughout this event.”
Financial Targets
2025 Revenue $1.1 billion or more
2025 Gross Margin 14% to 15%
2025 Adjusted EBITDA $110 million or more
A webcast of the event and the associated materials will be available on the Investor Relations section of the Company’s website and will be accessible for approximately 90 days.
About Unifi
Unifi, Inc. (NYSE: UFI) is a global textile solutions provider and one of the world's leading innovators in manufacturing synthetic and recycled performance fibers. Through REPREVE®, one of Unifi's proprietary technologies and the global leader in branded recycled performance fibers, Unifi has transformed more than 30 billion plastic bottles into recycled fiber for new apparel, footwear, home goods and other consumer products. Unifi continually innovates technologies to meet consumer needs in moisture management, thermal regulation, antimicrobial protection, UV protection, stretch, water resistance and enhanced softness. Unifi collaborates with many of the world's most influential brands in the sports apparel, fashion, home, automotive and other industries. For more information about Unifi, visit www.Unifi.com.
Contact
Alpha IR Group
Davis Snyder
312-445-2870
UFI@alpha-ir.com
February 16, 2022 INVESTOR DAY 2022 Exhibit 99.2
Cautionary Statement on Forward-Looking Statements Certain statements included herein contain “forward-looking statements” within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management’s beliefs, assumptions and expectations about our future economic performance, considering the information currently available to management. An example of such forward-looking statements include, among others, guidance pertaining to our financial outlook. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “intend,” “seek,” “strive” and words of similar import, or the negative of such words, identify or signal the presence of forward-looking statements. These statements are not statements of historical fact, and they involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that we express or imply in any forward-looking statement. Factors that could contribute to such differences include, but are not limited to: the competitive nature of the textile industry and the impact of global competition; changes in the trade regulatory environment and governmental policies and legislation; the availability, sourcing and pricing of raw materials; general domestic and international economic and industry conditions in markets where the Company competes, including economic and political factors over which the Company has no control; changes in consumer spending, customer preferences, fashion trends and end uses for products; the financial condition of the Company’s customers; the loss of a significant customer or brand partner; natural disasters, industrial accidents, power or water shortages, extreme weather conditions and other disruptions at one of our facilities; the disruption of operations, global demand, or financial performance as a result of catastrophic or extraordinary events, including epidemics or pandemics such as the recent strain of coronavirus; the success of the Company’s strategic business initiatives; the volatility of financial and credit markets; the ability to service indebtedness and fund capital expenditures and strategic business initiatives; the availability of and access to credit on reasonable terms; changes in foreign currency exchange, interest and inflation rates; fluctuations in production costs; the ability to protect intellectual property; the strength and reputation of our brands; employee relations; the ability to attract, retain and motivate key employees; the impact of climate change or environmental, health and safety regulations; and the impact of tax laws, the judicial or administrative interpretations of tax laws and/or changes in such laws or interpretations. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, except as may be required by federal securities laws. The above and other risks and uncertainties are described in the Company’s most recent Annual Report on Form 10-K, and additional risks or uncertainties may be described from time to time in other reports filed by the Company with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. 2
Non-GAAP Financial Measures Certain non-GAAP financial measures are designed to complement the financial information presented in accordance with GAAP. These non-GAAP financial measures include Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Adjusted Working Capital and Net Debt (collectively, the “non-GAAP financial measures”). • EBITDA represents Net income before net interest expense, income tax expense, and depreciation and amortization expense. • Adjusted EBITDA represents EBITDA adjusted to exclude (any) equity in loss of Parkdale America, LLC (“PAL”) and, from time to time, certain other adjustments necessary to understand and compare the underlying results of the Company. • Adjusted Net Income represents net income calculated under GAAP, adjusted to exclude certain amounts which management believes do not reflect the ongoing operations and performance of UNIFI and/or for which exclusion may be necessary to understand and compare the underlying results of UNIFI; • Adjusted EPS represents Adjusted Net Income divided by UNIFI’s diluted weighted average common shares outstanding; • Adjusted Working Capital represents receivables plus inventory and other current assets, less accounts payable and accrued expenses, which is an indicator of the Company’s production efficiency and ability to manage its inventory and receivables. • Net Debt represents debt principal less cash and cash equivalents. The non-GAAP financial measures are not determined in accordance with GAAP and should not be considered a substitute for performance measures determined in accordance with GAAP. The calculations of the non-GAAP financial measures are subjective, based on management’s belief as to which items should be included or excluded in order to provide the most reasonable and comparable view of the underlying operating performance of the business. The Company may, from time to time, modify the amounts used to determine its non-GAAP financial measures. We believe that these non-GAAP financial measures better reflect the Company’s underlying operations and performance and that their use, as operating performance measures, provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets, among otherwise comparable companies. Management uses Adjusted EBITDA (i) as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of (a) items directly related to our asset base (primarily depreciation and amortization) and (b) items that we would not expect to occur as a part of our normal business on a regular basis; (ii) for planning purposes, including the preparation of our annual operating budget; (iii) as a valuation measure for evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures and expand our business; and (iv) as one measure in determining the value of other acquisitions and dispositions. Adjusted EBITDA is a key performance metric utilized in the determination of variable compensation. We also believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because it serves as a high-level proxy for cash generated from operations. Equity in loss of PAL is excluded from Adjusted EBITDA because such results do not reflect our operating performance. Management uses Adjusted Working Capital as an indicator of the Company’s production efficiency and ability to manage inventory and receivables. Adjusted Working Capital is a metric used in the determination of variable compensation. Management uses Net Debt as a liquidity and leverage metric to determine how much debt would remain if all cash and cash equivalents were used to pay down debt principal. Management uses Adjusted Net Income and Adjusted EPS (i) as measurements of net operating performance because they assist us in comparing such performance on a consistent basis, as they remove the impact of (a) items that we would not expect to occur as a part of our normal business on a regular basis and (b) components of the provision for income taxes that we would not expect to occur as a part of our underlying taxable operations; (ii) for planning purposes, including the preparation of our annual operating budget; and (iii) as measures in determining the value of other acquisitions and dispositions. In evaluating non-GAAP financial measures, investors should be aware that, in the future, we may incur expenses similar to the adjustments included herein. Our presentation of non-GAAP financial measures should not be construed as indicating that our future results will be unaffected by unusual or non-recurring items. Each of our non-GAAP financial measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results or liquidity measures as reported under GAAP. Some of these limitations are (i) it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; (ii) it does not reflect the impact of earnings or charges resulting from matters we consider not indicative of our ongoing operations; (iii) it does not reflect changes in, or cash requirements for, our working capital needs; (iv) it does not reflect the cash requirements necessary to make payments on our debt; (v) it does not reflect our future requirements for capital expenditures or contractual commitments; (vi) it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and (vii) other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, these non-GAAP financial measures should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations, including those under our outstanding debt obligations. You should compensate for these limitations by relying primarily on our GAAP results and using these measures only as supplemental information. 3
4 Agenda
5
Index Memberships: S&P 600 Russell 2000 Fiscal Year: Sunday nearest June 30 Market Cap: Approx. $400 million Sales: FY22 Estimate $800 million Overview A global textile solutions provider and one of the world’s leading innovators in manufacturing synthetic and recycled yarn. Global Employees: ~2,900 Headquarters: Greensboro, NC NYSE: UFI 6 Since: 1971
7 Product Flow
8 REPREVE® Process RECYCLED BOTTLES RECYCLED FLAKE REPREVE RESIN REPREVE RECYCLED FIBER Post-consumer bottles are recycled Bottles are washed and chopped into flake Bottle flake is melted and formed into resin Resin is melted and made into yarn
9 REPREVE Fiber
10 Agenda TOUR / WEBCAST BREAK
11
12 2025 Revenue Target
13 Geographic Sales * This data omits All Other category revenue. FY2017 through FY2021 amounts are as reported, FY 2022 and FY 2025 amounts are estimated. Percentages listed are for total sales for that fiscal year. NACA = North America and Central America.
14 Non-Apparel REPREVE Sales Offer Margin Upside Revenue data is presented for fiscal 2021, for which consolidated net sales was $668 million.
15 Innovation Provides Competitive Advantage
16 Agenda TOUR / WEBCAST BREAK
17
18
19 Unifi’s REPREVE Journey 2001 Trademark Application ™ 2025 2025 Target - 50 Billion Bottles Recycled - $550+ Million REPREVE Revenue
20 REPREVE: Positive Impact on Future Growth and Profitability Over 80% of total revenue growth between FY22 and FY25 will be REPREVE fiber
21 Continued Sales Growth for REPREVE 50% RECYCLED POLYESTER BY 2025 100% RECYCLED POLYESTER BY 2025 50% RECYCLED POLYESTER & NYLON BY 2025 50% RECYCLED POLYESTER BY 2025 100% RECYCLED POLYESTER BY 2024 100% KEY MATERIALS 175 Million Recycled Bottles by 2025 100% RECYCLED POLYESTER BY 2025 60% RECYCLED POLYESTER BY 2025 Percentages represent declared sustainability goals from each brand.
22 Maintaining Sustainable Competitive Advantage
Summary of Strategies Designed to Grow Revenue and EBITDA 23
Summary of Strategies Designed to Grow Revenue and EBITDA 24
25 Grow Market Share by Leveraging Competitive Advantages Market share data is derived from internal estimates using multiple non-public sources. “From” market share reflects estimates for calendar 2019. “To” market share reflects estimates for calendar 2025. For each of the United States, Central America and Brazil, market share is expressed regarding polyester textured yarn. For Asia, market share is expressed regarding recycled polyester staple and filament fiber.
eAFK EvoCooler Texturing Technology Exclusive to Unifi in the Americas 26 Lower Carbon Footprint (~20% reduction in energy) Higher Productivity (~30% – 35% increase) Less Labor Intensive (~25% – 30% reduction direct labor) Lower Maintenance (~35% – 40% reduction) Increased Flexibility Product Innovation Capabilities 26 Preliminary data based on initial machine installations in US
27 Drivers to Unifi’s Growth in US, Central America and Brazil Consumer Demand for Sustainable Products
28 US and Central America: Key Growth Market Regional Competitive Advantages
29 Forecast Revenue Growth in US and Central America *Our revenue generated from our operations in North America and Central America, generally comprising the net sales of the Polyester and Nylon segments.
30 Brazil: Key Growth Market Regional Competitive Advantages
31 Forecast Revenue Growth in Brazil *Our revenue generated from our operations in South America, comprising the net sales of the Brazil segment.
32 Drivers to Unifi’s Growth in Asia
33 Asia: Key Growth Market Regional Competitive Advantages in Asia
34 Forecast Revenue Growth in Asia *Our revenue generated from our operations in Asia, comprising the net sales of the Asia segment.
Summary of Strategies Designed to Grow Revenue and EBITDA 35
36 Build Sustainable Markets Beyond Apparel
37 Automotive Poly / Cotton Scrim The emergence of electric vehicles has the industry focused on producing environmentally-friendly vehicles/interiors into the foreseeable future. Electrification of cars and trucks is driving manufacturers to think differently about their interiors The fabric market for headliners and seating is approximately $250 million in the U.S.1 1Based on Unifi’s estimates for the addressable market for polyester fibers in automotive industry.
38 Medical / PPE New US government legislation requires stockpile of US-made PPE PPE and medical demand is expected to remain strong with heightened awareness of personal safety and government-led investments. The synthetic fiber market for the medical industry is approximately $800 million in the U.S.1 1Based on Unifi’s estimates for the addressable market for synthetic fibers used for the medical industry in gowns and face masks. Mask box image source: sovereignamerica.com
39 Packaging, Nonwoven, Hygiene & Film REPREVE moves into consumer packaging, industrial wipes and hygiene goods Packaging and nonwoven markets utilize our recycled flake and resin to enhance their composition of sustainable components and these markets exhibit strong demand. The recycled polyester flake and resin market for the nonwoven, packaging and film industries is approximately $1.1 billion in the U.S.1 1Based on Unifi’s estimates of the addressable market for recycled polyester flake and resin used for the nonwoven, packaging and film industries.
40 Footwear Consumer trend to wearing shoes with fabric uppers opens new markets beyond traditional sneaker market Footwear with synthetic fibers remains a compelling market as consumers seek out more sustainable, lighter-weight and customizable options. 1Based on Unifi’s estimates for the addressable market for polyester fibers used for the footwear industry in fabric for knit uppers. The fabric market for the footwear industry is approximately $2.5 billion globally1
Summary of Strategies Designed to Grow Revenue and EBITDA 41
42 Textile Takeback Many of our customers are currently participating in takeback programs 1: https://ellenmacarthurfoundation.org/topics/climate/overview 2: The State Of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail, First Insight, January 2020 3: https://purpose.nike.com/planet
43 Closing the Loop Driven by brands Supported by consumers Made possible by Unifi Going beyond the bottle
44 Capabilities Textile Takeback
Poly / Cotton Scrim 45 45
Poly / Cotton Scrim 46 Source: Silentnight
Summary of Strategies Designed to Grow Revenue and EBITDA 47
48 Unifi Hangtag Shipments Fiscal Year Shipments in Millions
49 REPREVE Awareness Bottle Tag And Logo Source: REPREVE Receptivity Index Study, June 2021, n=850
50 Drive Unifi’s Position as the Gold Standard in Global Sustainable Synthetic Textiles
51 Drive Mass Awareness of REPREVE Cement REPREVE as the #1 global branded synthetic Mass global advertising with circular storytelling Sponsor WM Phoenix Open Brand/Retailer Co-marketing toolkit Enhanced social media promotion to build consumer following
52 Olympics Source: ralphlauren.com/ 2020 Summer Olympics 2022 Winter Olympics
53 Pac-12
Disney BOTTLE COLLECTION 54 Source: https://disneyworld.disney.go.com/guest-services/guest-experience-team/
55 Drive REPREVE Growth Beyond Apparel Building effective and efficient digital capabilities Expand presence in new markets Join key influential industry associations to enhance awareness Industry-specific account-based marketing
56 Unifi is proud to celebrate our brand, retailer and textile partners that exemplify leadership in sustainability and go above and beyond to protect our planet. REPREVE Champions of Sustainability
Summary of Strategies Designed to Grow Revenue and EBITDA 57
58 Agenda
59
60 Historical Financials Net Sales Operating Income (Loss) Adjusted Net Income (Loss) * Adjusted EBITDA * (dollars in millions, except Adj. EPS) * Non-GAAP financial measures are detailed in the appendix.
61 Historical Financials (cont.) Cash Provided by Operating Activities Capital Expenditures Adjusted Working Capital * Net Debt * (dollars in millions) *Non-GAAP financial measures are detailed in the appendix.
62 REPREVE Fiber as a % of Revenue Target * FY18, FY19, FY20 and FY21 amounts are as reported; FY22 and FY25 amounts are estimated.
63 Current Recycled vs. Virgin Composition Percent of Recycled Sales NYLON BRAZIL POLYESTER
64 Fiscal 2025 Gross Margin % Target
65 Fiscal 2025 Revenue Target (Dollars in millions)
66 Fiscal 2025 Adjusted EBITDA Target * Non-GAAP financial measures are detailed in the appendix. Adjusted EBITDA* Growth Components (Dollars in millions)
67 Depreciation and amortization expense of $35 to $40 Effective tax rate of 35% to 40% Capital expenditures of $20 to $25 Additional Fiscal 2025 Expectations (Dollars in millions)
Capital Allocation Priorities 68 Acquisitions Share Repurchases Balanced Leverage Drive Organic Growth
69 Acquisition Opportunities
70 Agenda
71 This event is on break. Unifi will return at approximately 12:00 noon Eastern Time to conduct the remaining sessions of this 2022 Investor Day event. Thank you for joining us today. Intermission
72 Agenda
73
74 Push – Pull Principle Fabric Producer Product Manufacturer Brand / Retailers Consumer Petrochemical Inputs (Direct Sales/Brand Sales/Marketing)
75 REPREVE Brand Growth – Apparel
76 REPREVE Brand Growth – Beyond Apparel
77 VP of Recycling BRENT BELL
78
79
WM commercial – featuring Repreve WM ad featuring Repreve 4M+ impressions Aired on CNBC, NBC Sports and the Golf Channel 80
WM uniforms made from Repreve “Our drivers will ride their routes collecting plastic bottles, milk jugs and other materials that will eventually be turned into the uniforms that they wear every day. This is the circular economy in action," said CEO Jim Fish during a video announcement. 81
WM/UNIFI partnership WM largest residential recycler in North America Experienced movement issues of recycled materials with past customers switching from recycled to virgin based on price WM Policy not to export any residential plastics WM desire for sustainable partner to handle recycled materials (PET) WM and WM customers wanting circularity stories around their material streams – what happens to my plastics? UNIFI/Repreve brand fit that need to ensure our customers that their materials have a sustainable home 82
83 President PETE WALDRON
84 84
85
86
87
88
89
90 Chief Sourcing & Merchandising Officer TONY ANZOVINO
91
Haggar Product Line featuring Unifi Fibers eClo Stria Dress Pants Life Khaki Cotton Casual Pants Premium Comfort Khaki Sustainable Stretch Chino Premium Stretch H26 Premium Stretch Pant (8.2%) H26 Bronx 5 Pocket (8.0%) H26 Manhattan Casual Pant (13.6%) H26 Weekend Jogger (7.5%) Premium Comfort Dress Pants (7.0%) Cool Right Casual Pants (7.6%) Cool 18 Pro Casual pants (7.6%) Active Series Casual & Dress (5.4%) Active Series Suit Separates (5.8%) Active Flex (9.2%) Smart Wash Repreve Suit (9.0%) 92
Sustainable Partnership Since 2009 Cool 18 Pro since 2016: 20.2 million yds. = 5.9 million lbs. Sorbtek eClo/PCDP since 2009: 31.4 million yds. = 4.1 million lbs. Repreve Others since 2009: 3.1 million yds. = 800k lbs. Unifi fiber Champions of Sustainability Award 2017 93
Total Measured Market – Units – Full Year 2021 Total Measured Marketing Data Includes: Premium Mid Tier (Kohl's, Macy’s, JCPenney, Belk, Nordstrom, Dillard’s, & Amazon) + Target and Walmart, Club Stores, Athletic/Sporting Goods Stores 94
Dress/Suit Pants Brand Market Share – Units Total Measured Market, Full Year 2021 Source: NPD Retail Tracking Service, Total Measured Market, Full Year 2021, Unit Rank Total Measured Market Data is Point of Sale Data that Includes: Kohl's, Macy’s, JC Penney, Belk, Boscov’s, Nordstrom, Dillard’s, Amazon, Target and Walmart, Club Stores, Athletic/Sporting Goods Stores 95
Dress/Suit Pant Items Market Share - Units Total Measured Market, Full Year 2021 Source: NPD Retail Tracking Service, Total Measured Market, Full Year 2021, Unit Rank Total Measured Market Data is Point of Sale Data that Includes: Kohl's, Macy’s, JC Penney, Belk, Boscov’s, Nordstrom, Dillard’s, Amazon, Target and Walmart, Club Stores, Athletic/Sporting Goods Stores 96
Suit Jacket/Sportscoat Brand Market Share - Units Total Measured Market, Full Year 2021 Source: NPD Retail Tracking Service, Total Measured Market, Full Year 2021, Unit Rank Total Measured Market Data is Point of Sale Data that Includes: Kohl's, Macy’s, JC Penney, Belk, Boscov’s, Nordstrom, Dillard’s, Amazon, Target and Walmart, Club Stores, Athletic/Sporting Goods Stores 97
Spring & Fall 2023 98
The Future of Circular Sustainability 99
100
101 Agenda
SUSTAINABILITY 102
103
104 Climate Cannot Wait Source: livescience.com Source: reuters.com Source: bbc.com Source: washingtonpost.com Source: nytimes.com
105 Sustainability at Unifi Inspired by: The Shared Value Opportunity - Harvard Business School Online DO GOOD DO WELL BUSINESS GROWTH POSITIVE IMPACT ON PEOPLE & PLANET
A History of Sustainable Action 106
107 REPREVE Growth FY21
108 Customer Sustainability Goals 50% RECYCLED POLYESTER BY 2025 100% RECYCLED POLYESTER BY 2025 50% RECYCLED POLYESTER & NYLON BY 2025 50% RECYCLED POLYESTER BY 2025 100% RECYCLED POLYESTER BY 2024 100% KEY MATERIALS 175 Million Recycled Bottles by 2025 100% RECYCLED POLYESTER BY 2025 60% RECYCLED POLYESTER BY 2025 Percentages represent declared sustainability goals from each brand.
109 REPREVE Environmental Impact REPREVE’s Higg Materials Sustainability Index (MSI) Scores Based on REPREVE manufactured in the US
110 Unifi Sustainability Story 30 Billion Bottles Recycled 2021 Sustainability Report
111 Unifi Sustainability Story
112 Vertical Integration in North Carolina Zero waste-to-landfill Solar farm
eAFK EvoCooler Texturing Technology 113 Lower Carbon Emissions Estimated 20% energy and emissions reduction Higher Efficiency A Better Environment More comfortable and quieter working environment Process design creates less waste and produces more pounds per hour Sustainability in Action
114 Beyond the Bottle Expanding textile takeback and recycling technologies Collaboration in designing for circularity According to the 2021 Circularity Gap Report, circular economy strategies can cut global greenhouse gas emissions by 39% A Pathway to Circularity REPREVE Textile Takeback, Yadkinville, NC
Circularity in Action 115 Source: designtex.com Source: girlfriend.com Source: thenorthface.com
116
117 Source: Chantal Anderson for the New York Times Source: hm.com Jennifer Lopez wearing H&M’s oversize puffer jacket
REPREVE SmartDye™ 118
Transparent. Traceable. Trusted. 119
Confidential & Proprietary Existing: Fabric New: Product 120 REPREVE U Trust Certification Expansion The U Trust verification program is a comprehensive certification program designed to provide REPREVE customers with a higher level of transparency and validate the authenticity of REPREVE products Enhanced value chain transparency and mapping capability Link to finished articles for e-commerce tracking and tagging Confidence and credibility
121 REPREVE “PLUS” – Margin Accretion Higher margins for multifaceted products Enhanced defensibility from competitors Maximization of sustainable benefits
122 Working Together for the Good of Tomorrow
123
124
125
126 WORKING TODAY FOR THE GOOD OF TOMORROW
127 Agenda
APPENDIX 128
129 Appendix - Historical Financials and Non-GAAP Reconciliations (dollars in thousands, except per share amounts) * * * * * * Non-GAAP financial measures; reconciliations follow.
Adjusted Net Income (Loss) & Adjusted EPS Footnote explanations are provided on the next slide. (dollars in thousands, except per share amounts) 130
Adjusted Net Income (Loss) & Adjusted EPS (cont.) Footnote explanations for previous slide detailing Adjusted Net Income (Loss) & Adjusted EPS reconciliations: (dollars in thousands, except per share amounts) 131
Adjusted EBITDA (dollars in thousands) 132
Adjusted Working Capital (dollars in thousands) 133
Net Debt (dollars in thousands) 134
135 Geographic Sales * This data omits All Other category revenue. FY 2020 and FY 2021 amounts are as reported, FY 2022 and FY 2025 amounts are estimated. NACA = North America and Central America.