Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — FY2016 Earnings Presentation
20 slides from Jeld-wen's earnings presentation, Feb 22, 2017
Slide 1: Q4 & FY 2016 Results Presentation
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Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains certain "forward-looking statements" regarding business strategies, market potential, future financial performance, the potential of our categories and brands, and our expectations, beliefs, plans, objectives, prospects, assumptions,
Slide 3: Introduction
Introduction Mark Beck, President & CEO 3
Slide 4: JELD-WEN at a Glance
JELD-WEN at a Glance Business Highlights Net Revenues Mix (1) Global market leader in windows and doors Product Geography Application Australasia 2016 Net Revenues of $3.7 billion and Adj. Other 9% 14% Non-Resi. 10% Resi. New Construction EBITDA of $394 million (~10.7% margin) 45% W indows Doors
Slide 5: An Extraordinary Transformation Underway
An Extraordinary Transformation Underway Where We Are Today Where We Are Going Early stages of a multi-year turnaround Adjusted EBITDA Margin % A global platform with scale, iconic brands and leading market positions 15%+ A team of accomplished leaders assembled from the best Industrials (Dana
Slide 6: Proven Operating Model
Proven Operating Model WORLD-CLASS PERFORMANCE AND RETURNS Operational Excellence Profitable Organic Growth Strategic M&A Safety & Compliance New Products & Innovation Target Identification Quality System Brand Strategy Target Cultivation Customer Experience Channel Management Stage Gate Process Pro
Slide 7: Historical Financial Performance
Historical Financial Performance USD in millions Net Revenues Adjusted EBITDA Free Cash Flow (1) Core Growth (2) of ~3% Margins expanded Free Cash Flow accelerating per annum over last 2 years ~630 bps in 3 years $394 $3,667 $122 $95 $311 $49 $3,507 $230 $3,457 8.5% 10.7% $153 9.1% $3,381 9.2% 6.6%
Slide 8: Financial Review
Financial Review Brooks Mallard, EVP and Chief Financial Officer 8
Slide 9: Q4 and FY 2016 Financial Summary
Q4 and FY 2016 Financial Summary USD in millions Q4 FY 2016 YoY Change 2016 YoY Change Net Revenues $973 9.2% $3,667 8.5% Gross Margin $219 28.0% $800 20.1% Gross Margin Percent 22.5% 330 bps 21.8% 210 bps Net Income $233 N/M $358 N/M Adjusted EBITDA $103 31.9% $394 26.7% Adjusted EBITDA Margin 10.6
Slide 10: Q4 and FY 2016 Net Revenues Walk
Q4 and FY 2016 Net Revenues Walk Q4 2016 JELD-WEN North America Europe Australasia Pricing 2% 2% 2% 2% Volume/Mix 3% 6% (2%) 0% Core Growth 5% 8% 0% 2% Acquisitions 5% 0% 0% 47% FX (1%) 0% (4%) 5% Total 9.2% 8.0% (4.3%) 54.1% FY 2016 Pricing 2% 2% 2% 2% Volume/Mix 1% 3% (1%) 0% Core Growth 3% 5% 1%
Slide 11: North America Segment Performance
North America Segment Performance USD in millions Q4 FY 2016 YoY Change 2016 YoY Change Net Revenues $569 8.0% $2,149 6.6% Adjusted EBITDA $66 54.2% $252 24.9% Adjusted EBITDA Margin 11.6% 350 bps 11.7% 170 bps Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems CORE GROWTH DRIVING
Slide 12: Europe Segment Performance
Europe Segment Performance USD in millions Q4 FY 2016 YoY Change 2016 YoY Change Net Revenues $257 (4.3%) $1,009 1.3% Adjusted EBITDA $32 15.2% $123 23.1% Adjusted EBITDA Margin 12.5% 210 bps 12.2% 220 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors SIGNIFICANT M
Slide 13: Australasia Segment Performance
Australasia Segment Performance USD in millions Q4 FY 2016 YoY Change 2016 YoY Change Net Revenues $147 54.1% $509 37.8% Adjusted EBITDA $19 83.5% $60 47.1% Adjusted EBITDA Margin 13.1% 210 bps 11.7% 70 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows RECENT ACQUISITIONS DRIVING
Slide 14: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow USD in millions Balance Sheet & Liquidity December 31, 2016 (1) December 31, 2015 Total Debt $1,620.0 $1,260.3 Cash $102.7 $113.6 Total Net Debt $1,517.3 $1,146.7 Net Debt / Adjusted EBITDA 3.85x 3.69x Liquidity (2) $381.9 $352.9 Cash Flow FY 2016 FY 2015 Cash Flow From Ope
Slide 15: Summary and 2017 Outlook
Summary and 2017 Outlook Mark Beck, President and Chief Executive Officer 15
Slide 16: Balanced Approach to Revenue Growth
Balanced Approach to Revenue Growth JELD-WEN Revenue Grow th Future Acquisitions Target* Core Grow th 4-5% Share Brand & channel Innovation investments Sales force effectiveness tools New products Pricing Emerging technologies Analytics in place Disciplined approach Markets Strategic f
Slide 17: Balanced Approach to Margin Expansion
Balanced Approach to Margin Expansion JELD-WEN Adj. EBITDA Margin Target* Acquisitions 15%+ Drive margin accretive M&A through: Profitable Organic Growth • Target cultivation Operating leverage • Disciplined valuations Operational Excellence • Effective integration Innovative new products • Hi
Slide 18: 2017 Outlook
2017 Outlook USD in millions 2017 Financial Outlook Net Revenue Growth 1.5% – 3.5% Adjusted EBITDA $435 – $455 Capital Expenditures $90 – $100 OUTLOOK BASED ON CONTINUED MARGIN IMPROVEMENT IN 2017 18
Slide 19: Appendix
Appendix 19
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation USD in millions Three months ending December 31, Twelve months ending December 31, 2016 2015 2016 2015 Net Income (loss) $233 $20 $358 $91 Adjustments: Loss (income) from discontinued operations, net of tax $1 $1 $4 $3 Gain (loss) on sale of discontinued operations, ne