Polyester Fiber Overview and Polyester Fiber Overview and DynamicsDynamics

May 2011May 2011

Bill Jasper, Chairman and CEO, Unifi

Unifi Global OperationsUnifi Global Operations

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Unifi Manufacturing ProcessesUnifi Manufacturing Processes

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Innovation – PVA Brands & Innovation – PVA Brands & PartnershipsPartnerships

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Touch & Texture…

Performance…

Sustainability…

Retail / Brand PartnershipsPVA Brands

PVA portfolio represent 15% of consolidated sales in fiscal 2010 Products utilized in apparel, contract, home furnishings, military, socks and hospitality Steady investment in R&D and commercialization of PVA products remains a strategic

priority

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SustainabilitySustainability

Unifi believes in working hard to minimize its environmental impact by doing

everything possible to achieve the highest standards for sustainable textiles.

Create environmentally friendly products

Conserve & Reclaim Water

Reduce Energy Consumption

Use of Returnable Packaging

Operate fuel efficient transportation fleet

Backward Integration

Chip Extrusion and Yarn Spinning

Flake to ChipBottle to FlakeBottle Washing

PET Bottles Polyester DTY

Recycling CenterRecycling Center

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Global Production by RegionGlobal Production by Region

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Polyester Fiber: 33 Million Tons Nylon Fiber (Type 6 & 66): 3.3 Million Tons

Polyester production is ten times as much as nylon

Annual Growth: 4.0 to 5.0% (2010 to 2015) Annual Growth: 1.0 to 1.5% (2010 to 2015)

Unifi Polyester Supply Chain Unifi Polyester Supply Chain OverviewOverview

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Polyester Raw Material ChainPolyester Raw Material Chain

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GASOLINE

CRUDE OIL MIXED XYLENES PARAXYLENE PTA BOTTLES

POLYESTERFILAMENT &

STAPLE

NATURAL GAS ETHYLENE ETHYLENE OXIDE MEG FILM

(0.86 X PTA) + (0.34 X MEG) = 1 Polymer

PX (Para-xylene) – Feedstock to PX (Para-xylene) – Feedstock to PTAPTA

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Supply/demand became tighter in 2010 and 2011 due to unplanned production outages and robust demand from PTA sector.

New projects are scarce for 2011/2012 supporting progressive tightening of global operating rates above mid-80’s.

High energy cost set the floor for PX prices

Top 5 Global PX Producers

Company Locations Capaciity % of World

million tons Capacity

ExxonMobile Americas, Europe, Asia 3.7 10%

Sinopec China 3.7 10%

BP Americas, Europe 3.1 9%

Reliance India 1.9 5%

Nippon Oil Japan 1.7 5%

PTA PTA

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Strong operating rates is driven by robust global polyester demand PTA supply tightness expected to last for the rest of the year, due to

delays in new projects in Asia/China.

Top 5 Global PTA Producers

Company Locations Capaciity % of World

million tons Capacity

BP Americas, Europe, Asia 8.1 17%

Formosa Taiwan 3.0 6%

Reliance India 2.2 4%

Yuandong China 1.9 4%

Samsung Korea 1.8 4%

MEG MEG

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A combination of planned, unplanned outages and closures plus feedstock limitations (EO), and speculation in 2010/YTD 2011 kept supply just slightly ahead of demand.

No new MEG plants until 2013.

Top 5 Global MEG Producers

Company Locations Capaciity % of World

million tons Capacity

SABIC Saudi Arabia 5.8 21%

MEGlobal Americas, Europe, Asia 2.8 10%

Nanya Asia, Americas 2.5 9%

Shell Americas, Europe, Asia 2.3 8%

Honam Korea 1.2 4%

Polyester Raw Material DriversPolyester Raw Material Drivers

Global supply/demand of key ingredients New plant start-ups or expansions, plant shut-downs (planned and

unplanned), Inventory levels, trade flows, regional demand patterns

Energy cost Crude oil Natural gas

Multiple product effect Variety of products compete for the same molecules used by the

textile polyester industry – PET bottle, anti-freeze, fertilizers, gasoline, and chemicals

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Polyester Raw Material Trends Polyester Raw Material Trends

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1. Tight PX & MEG (90% OR)2. Hurricane Katrina

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3. Replace MSTDB in gasoline blend resulting in surge in MX / PX demand4. World-scale MEG plant explosion in Middle East

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5. Crude oil surge ($140/bbl)

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6. Significant demand and crude drop due to global economic fallout

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7. Global demand recovery

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8. World-scale MEG plant shutdown in Middle East 9. Multiple factors despite manageable crude range a. Robust global demand b. Tight PX, PTA, & MEG supply (90+% OR) c. No major RM plant coming on line in 2011/12 d. Cotton impact

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Polyester Raw Material OutlookPolyester Raw Material Outlook

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Though pricing stabilization is projected to return during April-June quarter, pricing volatility will continue….

THANK YOU!THANK YOU!