UFP Technologies (UFPT) investor relations material

Company overview and business model

• Specializes in innovative medical devices that improve patient outcomes, partnering with 26 of the top 30 global med device companies.

• Operates 22 locations, employs about 4,000 people, and runs six development labs focused on contract development and manufacturing.

• Focuses on early engagement with clients to develop custom manufacturing processes for high-margin, differentiated products.

• Business is segmented into medical devices, robotic surgical drapes, and specialty packaging, serving eight major medical segments.

• Maintains strong supplier relationships, providing exclusive access and competitive advantages.

Growth strategy and market opportunity

• Pursues a two-pronged growth strategy: organic growth in high-potential segments and strategic, accretive acquisitions.

• Has completed 22 deals, including nine in medtech since 2021, with recent acquisitions expanding capabilities and reducing client concentration risk.

• Medical revenue grew from $132M in 2021 to $540M trailing 12 months, a 40% CAGR driven by acquisitions.

• Targets the $100B medtech outsourcing market, which is growing at 10-11%, focusing on single-use, plastic-based devices with high reliability requirements.

• Holds less than 1% market share, indicating significant room for expansion.

Competitive landscape and client relationships

• Operates in a highly fragmented, regulated market with about 900 private equity-backed CDMOs.

• Major clients include Intuitive Surgical and Stryker, each contributing about $150M in revenue.

• Manages client competition and confidentiality through NDAs and, when necessary, separate facilities.

• Diversifies client portfolio through targeted acquisitions to mitigate concentration risk.

• Leverages technical expertise and reputation to attract development work from leading medtech firms.