Slide 1: Investor Presentation June 7, 2016
INVESTOR PRESENTATION JUNE 7, 2016 k Industries, Inc. NASDAQ: PATK
Slide 2: Forward-Looking Statements
Forward-Looking Statements 5 es iad contains certain statements related to future results or states tentions, beliefs and expectations or predictions for the future which are are coke statements figation Refo) 1S that term is defined in the Private Securities tion rm Act of 1995. These forward-looki
Slide 3: Company Overview
Company Overview
Slide 4: Company history and milestones
=the largest acquisition in the Company Company's history (5/07) Tounded strategic growth and sition plans (3/11) Company taken public (NASDAQ) 1959 1961 1 Refinances Cred SMM (14/44), fo Completes $1 104M Leverage Based CreditFacity in an bank syndication sdb JPMorgan (5107), Te Organizational Stra
Slide 5: Patrick at a Glance
Patrick at a Glance v ‘ounded in 1959 and incorporated in Indiana in 1961 adquartered in Elkhart, Indiana— the “RV Capital of the World” eading national manufacturer and supplier of building and component products to the RV, MH and Industrial markets Operates over 60 facilities in 14 states Approxim
Slide 6: Brands
g Brands Gg PATRICK INDUSTRIES. INC.
Slide 7: Patrick Industries Overview
Patrick Industries Overview DR _ industrial © 76% of 1 2016 Net Sales > 11% of @1 2016 Net Sales > 11% of @1 2016 Net Sales © Ineltdes walliceiting panels, > Includes walliceiling panels, pressed > includes retail and commercial {oUntertops, fabricated aluminum & and hardwood doors, fixtures, kitche
Slide 8: Facility Profile
‘ick Facility Profile ‘ePATRICK
Slide 9: Sales & Earnings Growth
Sales & Earnings Growth Sales Growth Earnings Growth 7 i ue ie 2 oh c Sa la “ ' \ I. z / ia sales mmmtiet income —-—Dituted EPS > Sales tinue to grow and outpace their respective markets, driven by. acquisitions, new products and extension growth, and market share naine > NetIncome and EPS growth co
Slide 10: Margin Expansion
Margin Expansion Our gross and operating margins have continued to expand driven by increased sales volume, leveraging our fixed costs and strategic acquisitions » PATRICK
Slide 11: The RV Market
The RV Market
Slide 12: RV Industry Conditions & Consumer Trends
RV Industry Conditions & Consumer Trends Economy Industry Strength “Retall shipments have outpaced wholesale shipments in 2015 allowing for healthy dealer inventories + 2015 wraps up 6 consecutive year of wholesale unit shipment growth with 2016 projected to have growth of 6%, Q1 2016 wholesale unit
Slide 13: RV Industry Annual Shipment Trends
RV Industry Annual Shipment Trends Expbensnes fs ousancs) RV Wholesale Unit Shipments Residentat Housing Crisis uttwar Consumer Confidence —o—RV Annual Shipments ‘The RV industry has experienced steady growth over the last five years following a 8% decline in unit ‘shipments during the period of 200
Slide 14: RV Shipments
RV Shipments ‘milions) nts thousands) sa Sr sve lustry Stats Towable RVs Motorized RVs > 89% of industry unit sales (on avg. since 2010) > 11% of industry unit sales (on avg. since 2010) > 61% of retail dollar sales, or $9.4 billion > 39% of retail dollar sales, or $6.0 billion > Retail cost $5,000
Slide 15: RV Towable Shipments
RV Towable shipments (JR olessiotowablashiomenss in mousands) ‘Travel Trailers Travel Trailers — Fifth Wheel > 71% of towable unit sales (on avg. since 2010) > 24% of towable unit sales (on avg. since 2010) > 57% of towable retail dollar sales, or $5.4 billion > 41% of towable retail dollar sales, o
Slide 16: RV Motorized Shipments
RV Motorized Shipments (L_JiRiittotesale motorized snipments (in thousands) ‘a Conventional (Class A) Van Campers (Class B) > 49% of motorized unit sales (on avg. since 2010) > 7% of motorized unit sales (on avg. since 2010) > 66% of motorized retail dollar sales, or $3.9 billion > 6% of motorized r
Slide 17: Wholesale - '15 vs. '14
Wholesale - ‘15 vs. ‘14 Towables Teva Ter Toyabios. Fah Whee TBhofaoistoncue memens BNey2biStoncwe memes — SNe s nee esniomenes SPB Rath ed Samens > Growth of retail outpaced that of wholesale in both Towables and Motorized for 2015 = Towable retail increased 14% in 2015 compared to wholesale shipme
Slide 18: RV Content per Unit
,ontent per Unit $5600 s1906 sian $1984 ml | Tl HM sr girgcr gory od at eitottg ys + Driven by new products, extension growth, acquisitions, and market share gain. > RV unit content increased 17% in Q1 ‘46 vs. prior year > Total potential RV content available estimated at $5,600 | ‘Caleulatedon TMba
Slide 19: Patrick Product Lines — RV Interior
Patrick Product Lines — RV Interior Fiberglass Gath Fixtures Cabinet Doors & ShowerDoors ——_itenen & Bath Microwaves Faucets & Sinks Laminated Par Vanity Mirrors Printed Vinyl Fronts & Laminate & loser Closet & Passage boars Mattresses Countertops Backsplashes Furniture Additional Supplied Product:
Slide 20: Patrick Product Lines — RV Exterior
Patrick Product Lines — RV Exterior or SI
Slide 21: Patrick RV Products Growth Potential
Slide 22: The MH Market
The MH Market
Slide 23: MH Market Quick Facts
larket Quick Facts ture cost per sq. ft. (2014): $45 (MH) vs. $97 (single erage MH retail price (2014): $65,300 for 1,440 sq. ft. Multiple exterior options and interior floor plans available; customized to meet consumer needs > Engineered for wind safety and energy efficiency based on geographic reg
Slide 24: MH Market Indicators
MH Market Indicators rivers of Consumer Demand Market Growth Dealer and manufacturer tory Consumer Demand Quality it standards Number of aging > Opportunity for moderate year-over-year growth; limited downside risk in near-term if volumes maintain historical relationship with new housing starts. Uni
Slide 25: MH Annual Shipment Trends
MH Annual Shipment Trends (Ghipments ia thousands) MH Wholesale Unit Shipments 193 ur Restricted and Residential Housing Credit Lending Condisone > 118 3 ng ie so 2 ra S SF FSF SL FS SF SK 8 eee ‘The MH industry continues to perform at historical lows reflecting the residual impacts from the residen
Slide 26: MH Shipments
MH Shipments (Sin mitions) 10% ‘en housands) we ate we wz 12 2 15% - as , » i ws sx ” & i mR 7 oo» & 8 3 2 T | i ‘ i , mVnolesae Units Patrick MH Sales > Wholesale unit shipments continue to increase YoY — up 24% in Q1 2016 > Patrick MH segment sales are up 23% in Q1 2016 led by acquisitions and str
Slide 27: MH Content per Unit
MH Content per Unit Content per Unit 26 per years CAGR 6% _zar2 = 2016 avg. content — 109 “e180 $1599 i | Il ll ll ll > MH unit content increased 4% in Q1 ‘16 vs. prior year = _ Driven by new products, extension growth, acquisitions, and market share gain > Total potential MH content available estim
Slide 28: Patrick Product Lines — MH
Patrick Product Lines — MH WitchenSfoth Fiberglass bath Fotures shower Faucets Sinks Doors Gypsum (nya Drywall Fini Plumbing Products Products) Celing Fans age InteriorPassage Doors Medicine Printed Vinyt Fluorescent Lighting Wiringttectricat Laminate Ceramic Flooring Products CabinetDoors. Componen
Slide 29: Patrick MH Products Growth Potential
Patrick MH Products Growth Potential Aiternative Additional Supplied Products: Carpet Pad + TolletsiPiumbing BracketsiBraces & Bling Hardware
Slide 30: The Industrial Market
The Industrial Market
Slide 31: Industrial Market Indicators
Industrial Market Indicators Market Growth New ‘onstruction Government > 48% of the Company's industrial revenue base is tied directly to the residential housing market (new construction and remodel) > Our sales to the industrial market generally lag new residential housing starts by six to nine mon
Slide 32: Residential & Non-Residential Trends
Residential & Non-Residential Trends Tein mons a S = © > Our products have applicability in both new construction and remodel markets > We estimate that approximately 48% of our industrial revenue base is directly tied to the residential housing market which appears to have begunits recovery while t
Slide 33: Housing Starts Trends
ousing Starts Trends ee FF KP KF HF FX KF SK HS SF SH Hw Source: 1990-2016: U.S. Census Bureau; 2016F: NAHB (as of May 14,2016)
Slide 34: Industrial Organic Growth
Industrial Organic Growth Markets residential housing tail, commercial, hospitality and institutional Product Types er and vinyl laminated panels igh pressure laminate (HPL’) + Fatvicated and contour banded parts Industrial Market Advantages + Higher margins relative to Patrick consolidated margin p
Slide 35: Strategy Execution
Strategy Execution
Slide 36: Capital Allocation
Capital Allocation Acquisitions > Geographic and product expansion v Stock buyback program + At prices and volumes deemed appropriate by the Board and management > Investments in infrastructure and capital expenditures > Debt reduction and leverage position + We expect to utilize availability under
Slide 37: Strong growth potential
Strong growth potential Strategic value proposition to our business model Patrick provides the acquired businesses with: + Opportunity to allow the creative entrepreneurial spirit of each to continue to thrive + Capital and administrative support, and operational support where needed > Our goals are
Slide 38: Acquisition Summary by Year
Acquisition Summary by Year marily RV market-based 2010 Acquisition Highlights ®) gx ADORN 2014 Acquisition Highlights + 7 companies ap @ + $724M aggregate purchase price |. $126MM annualized sales + ‘@PolyDyn’ [Primarily RV market-based 2011 Acquisition Highlights 3. companies + $26MM annualized sa
Slide 39: Geographical & Product Expansion
Geographical & Product Expansion Hardwood Products | Presses Products nutri | mteror Doors Southern California Sonwoods| ae + Pott sia + Soi Suetsoe F sonwoods | Harewood Products ardwood Products Pressed Pratcts naustra Focus on expansion opportunities with $160M potential, while minimizing any pot
Slide 40: Stock Buyback
Stock Buyback = to ze s0r ‘10 aaa “so me ine ase 1308 in ie E1200 428 : ie 5 = a70 be = 2, is : = a ‘ to [J ine no Pp o 4 $0.00 > Repurchased 1.8 million shares since February 2013 through January 2016 = Average costper share of $25.04 --- total cost $46 million >» New stock repurchase program annou
Slide 41: Capital Expenditures
Capital Expenditures (Sin thousands) 10900 $6,669 $7295 $7988 set 4218 tec . 453 $2436 il 356 200 We will continue to invest in our infrastructure to drive enterprise wide efficiency and flex our capital spend when necessary to align with our demand levels
Slide 42: Funding Growth with Cash Flows
Funding Growth with Cash Flows 2011-2012 —«2013——=—2014 «2018 Qi 2015 Qt 2016 ym Operating Activities: $ 8,470 | $28,095 | $24,040 | $30,674] $ 42,219] [$ 9,150]$ 12,033 n & amortization 4916] 5586] 7,297] 10,433) 16,75 3550) 5212 financing amortization 995] 543] 430 365 490 101 145 ‘Stock compensat
Slide 43: Capital Allocation
Capital Allocation (Sin milionsy $204 (s180) $36 2010 Total Acquisitions _Capital Stock Debt 2016 Total Debt Spending Buybacks Payments Debt Debt increased only $168MM from 2010 to 2015 with $348MM invested in capital allocation strategy over that time period » PATRICK
Slide 44: Balance Sheet Strength
Balance Sheet Strength Leverage Position Trend We expect and continue to utilize our leverage for strategic acquisitions, followed shortly thereafter by an accelerated deleverage cycle based on strong operating cash flows. We are confident in our ability to size the business model according to the r
Slide 45: Stock Performance
Stock Performance Split Adjusted Stock Performance $30.00 $25.00 | $20.00 | $15.00 | sto.o0 “ raetna 1215 53116 =~ Pre-Stock Spit Close Price = -#= Post Stock Split Close Price As of May 31, 2016, our split-adjusted closing stock price was $53.43, approximately 121% of our pre-split closing stock pr
Slide 46: Why Patrick Industries
Why Patrick Industries + Approximately $17 billion addressable expanding RV & MH markets + Emerging industrial and housing market . * Continuously expanding product and company portfolio Business through organic growth and growth through acquisitions + Execution of strategic plan and balanced capita
Slide 47: Appendix
Appendix
Slide 48: Shareholder Value
Shareholder Value a an wi ; Patrick had approximately 15.3 million shares outstanding and a market capitalization of approximately $818 million as of May 31, 2016 PATRICK
Slide 49: Acquisition Summary
Acquisition Summary SEE ea ee Bo ovaonlqunrteriouis Sans! S20 || seu | wants | rv caa Doo @ ing. decal purbing and orm permiintierGay _S10uM SUM piston evans Ser hace cue Co Fated cote eam oon | TafemGop | sos || stam || ostimien | rv pean nator *s a Solid surface countertops, rt AACR IO 'ssstal: sa
Slide 50: Acquisition Summary
Acquisition Summary Business =< we] tamatet T sg Industry Products FV.UHA Fowl an tues retang sztt3 Fontes ne. SE2HM SIGH Manactsng ea! bean showes rua csztt3 prom Cmcets he S26 STON Mansactrng ‘ead Se sutaecourteons ee Lerraracry cozts_wes'Sibfuntse_sa7u—_sr7u__svouten mtu poses vous S150uM S04 atc
Slide 51: Acquisition Summary
Acquisition Summary c2R01S Sever Way Parnes, LLC S40.SUM —_SSDMM—ManuBeturng ——_—RV._—_—Fberaass components g Flbergass Fort and rear caps and ‘Stuctral Compostes of RY, Marne 8. root and otter specayfberglass osro1s Indana, i. S20smM —S18KM——Manueetring industrial components Profi wrap, custom mout
Slide 52: Patrick Industries, Inc.
PATRICK INDUSTRIES, INC.