Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Investor Presentation (September 2017)
17 slides from Siteone Landscape Supply's investor presentation, September 2017
Slide 1: Investor Presentation | September 2017
Investor Presentation | September 2017
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2017 Adjusted EBITDA outlook. S
Slide 3: Today's presenters
Today’s presenters ▪ Joined SiteOne in April 2014 ▪ Previously spent 18 years at CRH plc most recently as President and COO of Oldcastle Inc. ▪ Held a variety of roles including CEO and COO of Oldcastle Materials Doug Black ▪ Previously a consultant with McKinsey Chairman & CEO ▪ M.B.A. from Duke an
Slide 4: Company overview
SiteOne LANDSCAPE SUPPLY Stronger Together Section 1 Company overview
Slide 5: SiteOne: transforming the landscape distribution industry
SiteOne: transforming the landscape distribution industry Company highlights 2016 net sales mix ■ Largest and only national By product category By end market By construction sector wholesale distributor of Outdoor Hardscapes Lighting Recreational Repair & landscape supplies 6% 4% Upgrade & Other Lan
Slide 6: SiteOne plays a critical role in the professional landscape supply value chain
SiteOne plays a critical role in the professional landscape supply value chain Thousands Hundreds of thousands of suppliers of customers Critical business partner Small: ~18% of 2016 net sales ■ <$10K in avg. annual purchases SiteOne provides: SiteOne provides: Coast-to-coast Broadest national netwo
Slide 7: We are the Only National One-stop Shop Provider in the Industry
We are the Only National One-stop Shop Provider in the Industry Fertilizer Control Landscape Outdoor Irrigation & Other Products Nursery Accessories Hardscapes Lighting % of 2016 Sales 33% 17% 17% 12% 11% 6% 4% Key Products Key Suppliers Market Position #1 #1 #1 #1 #1 #1 #1 Source: Management estima
Slide 8: SiteOne is poised for long-term growth and margin enhancement
SiteOne is poised for long-term growth and margin enhancement Current strategy ✓ Leverage strengths of both large and local company ■ Fully exploit our scale, resources and capabilities ■ Execute local market growth strategies ■ Deliver superior value to our customers and suppliers ■ Close and integ
Slide 9: Proven management team driving performance and growth
Proven management team driving performance and growth Local leadership team Senior leadership team Functional excellence Avg yrs % former Name Experience ■ Recently added top industry contractors / industry talent from best- Position #1 expertise golf super’int Doug Black Chairman & CEO in-class com
Slide 10: Significant room to grow across geographies and products
Significant room to grow across geographies and products Number of MSAs ■ Well positioned in large, fragmented and growing SiteOne #1 or #2 SiteOne All product MSAs Total MSAs presence market position lines offered – #1 or #2 local market 381 position in ~80% of MSAs where SiteOne has a presence ■ S
Slide 11: Acquisitions are a key part of the value creation strategy
Acquisitions are a key part of the value creation strategy ■ Strengthens our business ✓ Geographic footprint Growth, margin ✓ Product expansion & cash flow ✓ Market consolidation improvement ✓ Talent / capabilities ■ Significant synergies ✓ Purchasing scale ✓ Overhead leverage ✓ Cross-selling ✓ Bran
Slide 12: Robust track record of acquisitions
Robust track record of acquisitions 2014 2015 2016 2017 YTD # Acquisitions 4 4 6 6 Annualized sales1 ~$40M ~$230M ~$150M ~$105M # branches added 18 50 29 22 Target Locations Strategic rationale Bissett 3 locations in NY Led to #1 nursery position in Long Island & NYC Glen Allen 1 location in VA #1 n
Slide 13: Market example: Acquisitions made us a full-line supplier in Chicago
Market example: Acquisitions made us a full-line supplier in Chicago SiteOne Chicago market pre-acquisitions (FY14) SiteOne Chicago market post-acquisitions (FY16) Irrigation Irrigation Hardscapes 17% 37% 19% Nursery Lighting 12% 5% Landscape Nursery Accessories Lighting 2% 20% 5% Agronomics Landsca
Slide 14: Robust pipeline of acquisition opportunities
Robust pipeline of acquisition opportunities 10% ✓ SiteOne is the leading industry consolidator ✓ Significant sourcing advantage with 60+ associates scouting 90% ~$15bn(1) ✓ Our pipeline is deep and rapidly expanding opportunity ✓ M&A team in place to execute larger pipeline ✓ Acquisitions are highl
Slide 15: SiteOne's 2017 outlook
SiteOne’s 2017 outlook ✓ Underlying market trends remain positive ✓ Sales & marketing initiatives expected to accelerate market share gains ✓ Gross margin expansion expected to continue ✓ SG&A as % of net sales expected to decline slightly ✓ M&A activity continues to gain momentum from a robust pipe
Slide 16: Appendix
Appendix Non-GAAP Reconciliations
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) FY2016 FY2015 FY2014 FY2013 Reported net income $30.6 $28.9 $21.7 $24.2 Income tax expense 21.3 19.5 14.4 20.4 Interest expense, net 22.1 11.4 9.1 0.5 Depreciation & amortization 37.0 31.2 20.3 10.4 EBITDA $111.0 $91.0 $65.5 $55.5 A Stock-based compensa
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