NASDAQ GS: UEIC. Investor Presentation

Transcription

1 NASDAQ GS: UEIC Investor Presentation February 2011

2 Safe Harbor Statement Certain statements made over the course of this presentation may be forwardlooking made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance and achievements of the company to be materially different from any future results, performance or achievements implied by such forward-looking statements, including our ability to successfully integrate the operations of Enson and its subsidiaries (including the CG companies) into our operations, the failure of Enson to perform in accordance with our expectations; the continued development of innovative control solutions and technologies that are accepted by our customers and consumers; the growth of the worldwide home entertainment and TV markets; the continued strength of our balance sheet; general economic conditions; and other factors described in the Company s filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this presentation. Confidential 2011 Universal Electronics Inc. 2

3 Who We Are Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control technology for the connected home. UEI designs, develops, and delivers innovative solutions that enable consumers to control entertainment devices, digital media, and home systems. Confidential 2011 Universal Electronics Inc. 3

4 Our Mission Turning technology into solutions to make it easy for users to connect, control, and interact with entertainment, information, and other emerging services. Confidential 2011 Universal Electronics Inc. 4

5 Global Leadership Global Leader in Wireless Control Software and Technology Globally diverse customer base Products/Services available in OEM, Subscription Broadcasting and Consumer channels Technology expertise in all areas of AV device control Innovator with 25 years in developing first-to-market solutions Most widely deployed and world renowned device code database Largest patent portfolio in our industry Complete end-to-end supplier in remote control solutions Confidential 2011 Universal Electronics Inc. 5

6 Investment Rationale Expanding Market Opportunity Global market trends continue to drive our business (HD, DVR, connected TVs and 3D) Growth in home entertainment outside U.S. provides significant opportunity (Latin America and Asia) #1 market share in the global remote control market Acquisition of Zilog s universal remote control business solidifies our position as technology leader within the industry Acquisition of Hong Kong-based Enson Assets Limited, which is the leading remote control provider in the growing Asian market, enhances our position in the strategically important global TV market Strong Financial Position and Operating Model Positioned for Growth Strong track record of sales and earnings performance. That, with sound balance sheet, produces above average return on capital Confidential 2011 Universal Electronics Inc. 6

7 Turning Technology into Solutions CONTROL CONNECTIVITY INTERACTIVITY SUSTAINABILITY Intelligence Inside Connecting Home Ecosystems Advanced UI Navigation and Interaction Energy Efficient Solutions Optimizing entertainment by integrating control of AV devices In the Home Wireless solutions to connect multimedia in the Home Extending the User Interface from the screen to the hand Innovation in low energy systems and applications Confidential 2011 Universal Electronics Inc. 7

8 C.G. Development Acquisition In Nov. 2010, UEI acquired CG Development Limited CG is a leader in the design, development, and manufacture of remote controls and has been our top performing supplier for over 6 years. CG is a major supplier of remotes to Sony, Panasonic, Toshiba, Daikin, Mitsubishi, Yamaha, and Sharp Benefits of the acquisition: Strong market share in Asian OEM remote market with long-standing customer relationships Two manufacturing facilities located in Panyu (1992) and Yangzhou (2004) 150+ China-based engineering organization focused on remote controls offering fast, flexible and cost effective development and manufacture Production capacity to support over 135M remote control units per year The combined company has an estimated global market share of 30% of the world s remote control market We announced in November that transaction will add approximately $140M to 2011 sales and will be $1/share accretive to EPS Confidential 2011 Universal Electronics Inc. 8

9 Global Locations NASDAQ GS: UEIC Enschede Retail and International Headquarters San Mateo Advanced Engineering Cypress Corporate Headquarters Design and Development Twinsburg North American Call Center Manaus Operations and Manufacturing Site Yangzhou CG Manufacturing Panyu CG Manufacturing Bangalore Software Development Center Tokyo Regional Sales Office Shenzhen Engineering Lab Hong Kong Operations and Manufacturing Hub Singapore Asia Pacific Regional Office Confidential 2011 Universal Electronics Inc. 9

10 Market Trends Almost 100 million connected TVs will ship in 2013, up 546% from nearly 15 million in 2009 DisplaySearch, April D TVs sales will reach over 6.2 million units worldwide in 2010 growing to 83 million by 2014, 31% of the TV market Displaybank, May 2010 Global IPTV subscribers will increase to more than 123 million by 2014, up from about 33 million at the end of 2009 a CAGR of almost 30% - isuppli,, March 2010 At the end of 2009 only 5.8% of global TV homes watched high definition (HD) programming, representing 71 million households. By 2014 the number is expected to surge to 276 million Informa Telecoms and Media, April 2010 Worldwide DVR shipments are projected to rise from 25 million units in 2009 to over 41 million units by ABI Research, Connected Home Devices, 2010 The installed base of web-enabled consumer electronic video devices will grow from 70 million in 2009 to 237 million in 2014 InStat, August 2010 Confidential 2011 Universal Electronics Inc. 10

11 Powering Global Leaders BUSINESS CATEGORY Subscription Broadcasting Consumer Electronics CONSUMER CATEGORY Confidential 2011 Universal Electronics Inc. 11

12 Consistent Growth In Millions Net Sales $331.3 to $337.3 EPS $1.33 $1.24 to $1.30 $317.6 $287.1 $272.7 $1.09 $1.05 $235.8 $0.94 $158.4 $181.3 $0.65 $0.69 $120.5 $103.9 $0.42 $ P P Confidential 2011 Universal Electronics Inc. 12

13 Investment Rationale Expanding Market Opportunity Global market trends continue to drive our business (HD, DVR, connected TVs and 3D) Growth in home entertainment outside U.S. provides significant opportunity (Latin America and Asia) #1 market share in the global remote control market Acquisition of Zilog s universal remote control business solidifies our position as technology leader within the industry Acquisition of Hong Kong-based Enson Assets Limited, which is the leading remote control provider in the growing Asian market, enhances our position in the strategically important global TV market Strong Financial Position and Operating Model Positioned for Growth Strong track record of sales and earnings performance. That, with sound balance sheet, produces above average return on capital Confidential 2011 Universal Electronics Inc. 13

14 NASDAQ GS: UEIC