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In total, we invested about $6.5 million to optimize our footprint in 2014, and another $7.7 million to purchase new capital equipment. We believe it’s an excellent use of a portion of the cash reserves we’ve built up over the years, and we estimate that these investments will pay for themselves in three years or less. 

And we’re not done yet. In January 2015, we purchased a 137,000-square-foot factory in newburyport, Massachusetts, in which we plan to combine our northeast operations. As with all our regional consolidations, we expect to gain major operating efficiencies once this effort is complete. At that point, we will have greatly improved our facilities in four regions—Midwest, West Coast, southwest, and northeast. 

## progress on other key initiAtives In some of the year’s other 

main accomplishments: 

• We converted four more plants to our new enterprise Resource planning system. 

• We invested in a new Customer Relationship Management system to help us forecast, analyze trends, and serve customers better. 

• We enhanced production capabilities and quality systems for our medical customers in several plants. REVENUE 

• We added new talent across the organization, including senior leadership in engineering and sales. 

We will discuss each of these important initiatives in the following pages. 

in short, your coMpAny is strong And getting stronger While certain target markets such as defense remain challenging, we anticipate double- digit growth in our medical business, coupled with strong demand for our molded fiber packaging products. We also expect steadily improving results in our new texas operation as we quickly ramp up sales. 2010 2011 2012 2013 2014 $120,766 $127,244 $130,962 $139,223 $139,307 

Looking ahead, we will continue to invest in market opportunities that best fit our industry-leading engineering and materials expertise. For customers with complex needs, no one offers greater problem-solving skills or a longer track record of success. We will also continue to explore strategic acquisitions that can increase the value we bring to customers. As we identify opportunities, our experienced management team and strong balance sheet will enable us to act quickly. NET INCOME REVENUE 

For all of the changes in 2014, our most important attributes remain the same. Our commitment to customers’ success. Our culture of integrity, innovation, and excellent customer service. these traits have served us well for decades, and I believe our best years are yet to come. I hope you agree, and I thank you for your support of UFp technologies. 2010 2011 2012 2013 2014 $120,766 $127,244 $130,962 $139,223 $139,307 2010 2011 2012 2013 2014 $9,247 $10,346 $10,895 $11,276 $7,559 

 sincerely, 

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