Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO AUGUST 2, 2023 Footnote
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other s
Slide 3: Our Strategic Priorities Fuel Long-term Profitable Growth
Our Strategic Priorities Fuel Long -ter m Profitable Growth Organic Growth Drive Continue to Pursue of Value-Added Operational Build Our Strategic Products and Excellence High-Performing Tuck-In Services Culture Acquisitions Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L
Slide 4: Resilient Q2 2023 Performance
Resilient Q2 2023 Perfor mance $4.5B $1.6B $769M $3.89 Net Sales Gross Profit Adjusted EBITDA1 Adjusted EPS1 34.6% Decrease2 33.9% Decrease2 49.0% Decrease2 37.9% Decrease2 Gross Margin up Adj. EBITDA1 40bps2 to 35.2% Margin of 17.0% Q2 2023 Total Capital Deployed: ~$0.8B (M&A of $12M, Share Repurch
Slide 5: Executing Against Our Strategy
Executing Against Our Strategy ▪ ▪ ▪ ▪ 38% ▪ ▪ Continuing to Drive Long-Term Shareholder Value Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 5 5
Slide 6: Disciplined M&A Approach Continues
Disciplined M&A Approach Continues Acquisition Date Rationale Before After (Q4 2021) (Q2 2023) ▪ Expands presence in Detroit and provides capacity for Value-Added Q3 2023 the addition of value-added operations Value-Added Product Mix: 45% Product Mix: 19% 53% Q2 2023 ▪ Enhances millwork capabilities
Slide 7: Progress Against Deployable Capital Goal
Progress Against Deployable Capital Goal ~$5.3B Deployed ~$5.3B since 12/31/21: ✓ $3.9B deployed to repurchase 2021 Investor common shares $3.9B Day Goal ✓ $0.8B deployed on 10 acquisitions to expand our footprint into high- growth geographies and enhance our value-added offerings $7B - $10B ✓ $0.6B
Slide 8: Digital Adoption is Beginning to Take Hold
Digital Adoption is Beginning to Taking Hold ▪ Direct access to the myBLDR.com customer portal established in Q2; enhances ability to sell our digital services to more customers ▪ Serves as an entry point to our collaborative project management platform ▪ Combines Paradigm's next generation estimati
Slide 9: Digital Solutions: myBLDR.com
Digital Solutions: myBLDR.com ✓ A collaborative project management platform for homebuilders ✓ Ongoing release of new features and enhancements to the user experience ✓ Increased investment in BFS adoption and external marketing as our path to customer acquisition ✓ Technology development milestones
Slide 10: Q2 2023 Financial Update
Q2 2023 Financial Update Core Organic Sales Highlights Net Sales ($M) Bridge (Q2 2022 vs. Q2 2023) ▪ Single-Family: -31.0% as Single-Family housing demand has slowed ($1,278) ▪ Multi-Family: +29.6% driven by a strong rental -22.3% Core Organic ($1,119) market and resulting backlog $6,926 +3.9% Acqui
Slide 11: Broad Resiliency Across Value-Added Portfolio
Broad Resiliency Across Value-Added Por tfolio Net Sales ($M) by Product Category (Q2 2022 vs. Q2 2023) Value-Added Products Specialty Building Lumber & Lumber Products & Services Sheet Goods Manufactured Products Windows, Doors & Millwork $2,836 $1,679 $1,218 $1,193 $1,105 $1,077 -9% -10% -23% $1,2
Slide 12: Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Balanced Capital Allocation Priorities Low Net Leverage Profile 4.2x 1 3.1x 1.6x 2 2.5x Base Business Leverage 3 1.3x 1.0x 0.7x 1.1x 4 1 2017 2018 2019 2020 2021 2022 Q2 2023 Strong Free Cash Flow Weighted Average Debt Maturity o
Slide 13: Base Business Performance Aligned with Long Term Plan
Base Business 1 Perfor mance Aligned with Long Ter m Plan 70% of BFS’s Base Business1 Majority of EBITDA Growth is Driven by Value-Added Products is Non-Commodity and Sustainable Operations Improvement / Synergies Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base Business Commodity <>$400mb
Slide 14: 2023 Outlook
2023 Outlook 2023 Full Year Financial Expectations Metrics Current Guidance 2022 Actual Base Business Sales1 $16.6 billion $17.7 billion Base Business Adjusted EBITDA1 $2.2 billion $2.3 billion Base Business Adjusted EBITDA margin1 13.3% 13.1% Total Net Sales2 3 $16.8 to $17.8 billion $22.7 billion
Slide 15: 2023 Full Year Assumptions
2023 Full Year Assumptions 2023 Full Year Assumptions Metrics Current Assumptions Prior Assumptions Single-Family Starts Growth (BLDR geographies) Down High Single-Digits to Low Double-Digits N/A Multi-Family Starts Growth (BLDR geographies) Up Low Double-Digits N/A Repair & Remodel Growth (BLDR geo
Slide 16: Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability Market leader in a highly fragmented industry Growing portfolio of value-added products and solutions Strategic investment in value-added capacity, driving growth and margin expansion Exceptional geographic, cu
Slide 17: Appendix
Appendix Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D .
Slide 18: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 18 18
Slide 19: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 19 19
Slide 20: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 20 20
Slide 21: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 21 21
Slide 22: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 22 22
Slide 23: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 23 23
Slide 24: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 24 24