Beacon Roofing Supply : June 2024 Investor Presentation

Published: 2024-06-24 18:30:07 ET BECN

BEACON

Investor Presentation

June 2024

Disclosure Notice

This presentation contains information about management's view of the Company's future expectations, plans and prospects that constitute forward- looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate," "estimate," "expect," "believe," "will likely result," "outlook," "project," "targets" and other words and expressions of similar meaning. Investors are cautioned not to place undue reliance on forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of the Company's Form 10-K for the fiscal year ended December 31, 2023 and subsequent filings with the U.S. Securities and Exchange Commission. The Company may not succeed in addressing these and other risks. Consequently, all forward-looking statements in this presentation are qualified by the factors, risks and uncertainties contained therein. In addition, the forward-looking statements included in this presentation represent the Company's views as of the date of this presentation and these views could change. However, while the Company may elect to update these forward- looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this presentation.

This presentation contains references to certain financial measures that are not presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Expense, Adjusted Operating Expense margin, Free Cash Flow, Free Cash Flow Conversion and Net Debt Leverage. The Company uses non-GAAP financial measures to evaluate financial performance, analyze underlying business trends and establish operational goals and forecasts that are used when allocating resources. The Company believes these non-GAAP financial measures permit investors to better understand changes over comparative periods by providing financial results that are unaffected by certain items that are not indicative of ongoing operating performance. While the Company believes these measures are useful to investors when evaluating performance, they are not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. The Company's non-GAAP financial measures should not be considered in isolation or as a substitute for other financial performance measures presented in accordance with GAAP. These non-GAAP financial measures may have material limitations including, but not limited to, the exclusion of certain costs without a corresponding reduction of net income for the income generated by the assets to which the excluded costs relate. In addition, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.

Unless otherwise specifically noted, references in this presentation to years refer to calendar years and, accordingly, historical financial information has been recast on a calendar year basis. Unless otherwise specifically noted, financial information contained in this presentation reflects continuing operations only.

Our North America Footprint

~100,000

Customers

542

8,000+

Branch locations

Team members

US States

Canadian Provinces

National scale | Broad geographic reach | Diverse customer channels

$9.3 billion

TTM Net Sales

$920 million

TTM Adj. EBITDA*

9.9%

TTM Adj. EBITDA Margin*

Note: Figures and map as of March 31, 2024

* Non-GAAP measure, see Appendix for definition and reconciliation.

Revitalized Leadership Team

>75%

O F E X E C U T I V E

C O M M I T T E E S I N C E

A P P O I N T E D 2 0 1 9

Stuart Randle

Julian Francis

Prith Gandhi

Carmelo Carrubba

Christine Reddy

Munroe Best

Birte von Schwarzenfeld

Chair

President & Chief Executive

Chief Financial Officer

Vice President, Strategy

Executive Vice President,

President,

Senior Vice President,

Officer

and Transformation

General Counsel &

South Division

Commercial Solutions

Corporate Secretary

Jake Gosa

Jason Taylor

Jonathan Bennett

Jennifer Lewis

Sean McDevitt

Chris Nelson

Martin S. Harrell

President,

Executive Vice President &

Vice President,

Executive Vice President &

President,

North Division

West Division

Chief Commercial Officer

Communications & Corporate

Chief Human

Chief Technology Officer

Waterproofing Division

Social Responsibility

Resources Officer

Core Values & ESG Anchor Beacon's Ambition 2025

E S

ENVIRONMENTAL

Optimizing our footprint to achieve profitable, sustainable growth

SOCIAL

OUR CORE VALUES

Investing in our people to achieve the best business outcomes

GOVERNANCE

Doing the right thing, engaging with stakeholders to grow responsibly

Note: From Beacon Investor Day - February 2022

Strategically Focused on Two Core Markets

Residential Roofing

Asphalt Shingles

Slate & Shake

Tile

Architectural Metals

Accessories

Siding

Gutters & Fascia

Commercial Roofing

Single-Ply Roofing

Modified Roofing

Roof Insulation

Custom Metals

Coatings

Specialty Fasteners,

Adhesives & Other

Accessories

Air & Vapor Barriers

Waterproofing

Windows & Doors

Roofing Products

Complementary Products Note: From Beacon Investor Day - February 2022

Favorable Macro & Market Fundamentals

Net Sales Mix*

23%

51%

26%

End Market Mix

20%

80%

Residential Roofing

Commercial Roofing

Complementary

Repair & Remodel

New Construction

RESIDENTIAL CONSTRUCTION TRENDS**

Higher

Undersupply of

Favorable

Relatively

single-household

housing; aging

de-urbanization

low interest rates;

formation

housing stock

trends

favorable home

equity values

COMMERCIAL CONSTRUCTION TRENDS**

Improving

Strong

Post-COVID

New building

commercial

warehouse

rebound

code standards

sentiment

development

7 * Full year net sales 2023; Commercial Roofing is reported as Non-Residential in financials statements.

7 ** Complementary line of business is ~70% Residential & 30% Commercial, impacted by the same trends. Note: Construction Trends From Beacon Investor Day - February 2022

Well Positioned in Large and Fragmented Market

ADDRESSABLE MARKETS

ROOFING AND COMPLEMENTARY PRODUCTS

DISTRIBUTION MARKET ~$54B*

Roofing

Commercial

~$10B*

~$30B

Residential

~$20B*

Residential

Complementary

~$24B

~$20B*

Commercial

~$4B*

INDUSTRY STRUCTURE

ROOFING PRODUCTS DISTRIBUTION MARKET ~$30B*

Fragmented

~45% of Market**

Regional /

Local / Retail

Large National

Beacon

Consolidated

~55% of Market*

Beacon's position in a large addressable market provides multiple paths to growth

* Management's estimate of 2021 Addressable Markets

** Retail within fragmented portion is less than 10%

Note: From Beacon Investor Day - February 2022

Roofing Market Stability Through the Cycle

U.S. Asphalt Shingle Market*

180

173

160

154

161

155

159

148

157

143

144

151

144

139

140

129

135

133

136

120

122

118

120

111

112

108

107

Drivers of Re-Roofing Demand

Squares)

100

(Millions

27%

40%

New Construction

Remodeling

Weather Events

Major Storms

Residential roofing demand remains below prior cycle peaks

25%

Leaks

Old

Weather Damage

Deteriorating

Upgrade Appearance

Other

>90% of re-roofing demand

is non-discretionary

*All years shown are calendar Sources: Owens Corning, ARMA, 3M

Strong Value Proposition to Both Customers & Suppliers

SUPPLIERS

BEACON

Value to Suppliers

Value to Customers

•

Coast to coast presence

•

Value-added capabilities

•

Scale advantages

•

Order assembly, kitting

•

Last mile logistics

and packaging

•

Short cycle channel

•

Leading digital platform

management

•

Highly knowledgeable

•

Inventory partner

sales & support

•

Customer credit

CUSTOMERS

~100,000

National, regional and

local contractors

across the U.S. and

Canada

Driving to be #1 choice for customers and suppliers

Disclaimer

Beacon Roofing Supply Inc. published this content on 24 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2024 22:29:05 UTC.