Slide 1: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE. Simpson Manufacturing Co., Inc. Investor Presentation August 2024 Exhibit 99.1
Slide 2: Safe Harbor
2 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements genera
Slide 3: Investment Highlights
3 Investment Highlights Industry leader with strong business model, accelerating above market top-line growth(1), high brand recognition and trusted reputation Diversified product offerings and geographies with ~50% exposure to the U.S. housing market Leadership position in structural solutions for
Slide 4: 30-Year Trading History
4 30-Year Trading History 5/25/1994 Initial public offering at $11.50 (or $2.875 adjusted for two stock splits in August 2002 & November 2004) 3/24/2020 COVID-19 pandemic declared 10/30/2017 Announced 2020 Plan to improve operational performance and enhance stockholder value 3/23/2021 Announced 5 Ye
Slide 5: Simpson's Brand and Culture
5 Simpson’s Brand and Culture At Simpson, we describe the unique culture of our organization as our “Secret Sauce.” To provide solutions that help people design and build safer, stronger structures. OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Quality Produc
Slide 6: Our Strong Business Model
6 Our Strong Business Model Why Simpson? Our Customer-Centric Approach Broad portfolio of structural solutions Unparalleled availability & deliveryLongstanding relationships Comprehensive service Innovation leader Impactful industry outreach An increasingly broad portfolio of products and software,
Slide 7: Innovation Leader
7 Innovation Leader 1956 1970 1984 1996 1997 1999 2005 Simpson is a pioneer of construction solutions and the industry standard for structural connectors. 1994 NYSE LISTING (SSD) OUR FOUNDER BARC SIMPSON EXPANSION INTO CONCRETE EXPANSION INTO FASTENERS FIRST CONNECTOR CONNECTOR MARKET LEADER EXPANSI
Slide 8: Innovation Leader (Continued)
8 Innovation Leader (Continued) Simpson is an innovation leader in fasteners, concrete repair, lateral systems, construction software and structural steel solutions. 2011 2016 20192012 2017 FURTHER EXPANSION INTO COLD-FORMED STEEL EXPANSION INTO CARBON FIBER SOLUTIONS EXPANSION INTO BUILDER & LBM SO
Slide 9: Innovation Leader (Continued)
9 Innovation Leader (Continued) 484 Engineers 1,653 Trademarks Worldwide 7 Accredited Test Labs 499 Patents Worldwide 202 Patents Pending 92 Code Reports A dedication to innovation through extensive research and development, academic partnerships and state-of-the-art structural testing. Testing is i
Slide 10: Broad Portfolio of Solutions
Broad Portfolio of Solutions Wood Connection Products Fastening Systems Concrete Connection Products Integrated Component Systems Wood connectors, shearwalls, connectors for cold-formed steel and structural steel Fasteners for connectors, structural screws, decking screws, and productivity solutions
Slide 11: Serving Our Customers and Industry
Serving Our Customers and Industry Longstanding relationships Unparalleled availability and delivery Impactful industry outreach • ~98% product fill rate • 24-48 hour typical delivery • 48-hour turnaround on specials • Same-day shipping availability Comprehensive service • ~740 field sales reps • Th
Slide 12: Core Addressable Market
12 Core Addressable Market(1) Wood Connectors & Truss Concrete Connections Market Size $15.0 B Addressable Market $1.3 B (9%) SSD Share $0.3 B (25%) Market Size $10.1 B Addressable Market SSD Share $0.5 B (31%) Market Size/ Addressable Market $2.5 B SSD Share $1.4 B (56%) Fasteners $1.7 B (17%) (1)
Slide 13: Key End Use Markets in North America
13 5 Key End Use Markets in North America Our market focused approach enables us to better serve current customers and identify opportunities to reach new customers and product opportunities.
Slide 14: Residential
14 Residential KEY PRODUCT LINES KEY MARKET FOCUS AREAS STRATEGY • Single family construction • Multifamily construction • Outdoor living (e.g. decks, pergolas, fences) • Repair, remodel and retrofit applications • National home builder relationships • Lumber and building materials (LBM) relationshi
Slide 15: Commercial
15 Commercial KEY MARKET FOCUS AREAS STRATEGY • Retail and office buildings • Institutional (education, healthcare) • Public and utilities (water supply, pipelines, ports) • Transportation (bridges, tunnels, airports) • Manufacturing (factories, warehouses, data centers) • Structural steel buildings
Slide 16: OEM
16 OEM KEY MARKET FOCUS AREAS STRATEGY • Aligned with our business model; identify opportunity for existing connectors, fasteners, anchors and truss plates products into this market • Engineer and launch value-added OEM-specific structural solutions • Leverage Simpson Strong-Tie engineering testing
Slide 17: National Retail
17 National Retail KEY MARKET FOCUS AREAS STRATEGY • Improve retail execution through merchandising, product development, and marketing • Continue expanding availability of all product lines, and increase in-store training • Enable consumers to customize, design and create bill-of-materials with sof
Slide 18: Component Manufacturers
18 Component Manufacturers KEY MARKET FOCUS AREAS STRATEGY • Component manufactures who build roof and floor trusses, offer EWP solutions and/or wall panel solutions • Equipment solutions • Large LBMs • Offsite construction – i.e., fully integrated builders Wall Panels 18 Roof Truss Floor Truss I-Jo
Slide 19: Digital Solutions
19 Digital Solutions Specifiers Builders Building Material Partners Component Manufacturing, Lumber Yards Home Improvement Framers Our goal is to leverage and offer a suite of integrated, technology solutions across our value chain to connect building industry stakeholders, improve construction proc
Slide 20: Digital Solutions (Continued)
20 Digital Solutions (Continued) Building out our digital offerings to serve customers across the building industry ~30 specification tools (apps/selectors) Design/visualization, estimating Option management, estimating Project management and design Free design software and plans
Slide 21: Europe Strategy
21 Europe Strategy • Continue ETANCO(1) integration and realize synergies: Offensive Synergies ▪ Expand market share ▪ Enhance portfolio of solutions ▪ Cross-selling opportunities ▪ Entrance into new commercial building markets ▪ Grow direct sales model Defensive Synergies ▪ Procurement optimization
Slide 22: Strong Business Drives Stockholder Value
22 Strong Business Drives Stockholder Value Our 2023 Sales by Product… ($ USD Millions) and Across Operating Segments ($ USD Millions) EPS Dividends Per Share(1) (1) Chart represents annual dividends declared. Part of the 2013 dividend was accelerated due to uncertainty of changes to tax code in 201
Slide 23: Historical Market and Financial Performance
23 Historical Market and Financial Performance 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 H o u s in g S ta rts (M ) ($ M ) North America
Slide 24: Accelerating Above Market Growth
24 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 - 50 100 150 200 250 300 350 400 450 2015 2016 2017 2018 2019 2020 2021 2022 2023 H o u s in g S ta rts (M ) S a le s V o lu m e s North America Volume US Housing Starts Accelerating Above Market Growth Our North America operations continue to outperfor
Slide 25: Investments to Accelerate Above Market Growth
25 Investments to Accelerate Above Market Growth ▪ Productivity ▪ Columbus ▪ Expanded capacity ▪ Gallatin ▪ Highly automated production ▪ Insourcing production of imported materials Capital Investment Recent and future strategic investments in both OPEX and CAPEX are crucial to achieving our company
Slide 26: Operating Income Margin Outperformance
26 (1) (1) Proxy peer average includes: AOS, AAON, WMS, ALLE, AMWD, APOG, AWI, ATKR, AZEK, EXP, ROCK, JHX, LPX, DOOR, PATK, PGTI, NX, SUM, TREX. (2) Fiscal 2024 operating margin outlook as of July 22, 2024. Please refer to the second quarter 2024 earnings press release issued on July 22, 2024 for ad
Slide 27: ROIC Relative to Proxy Peers
27 ROIC(1) Relative to Proxy Peers(2) Source: Company filings as of February 26, 2024. (1) Return on Invested Capital (ROIC) reflects latest fiscal year reported. See slide 35 for ROIC definition. (2) Proxy peer average includes: AAON, AOS, ALLE, AMWD, APOG, ATKR, AWI, AZEK, DOOR, EXP, JHX, LPX, NX,
Slide 28: Well-Positioned to Drive Growth
28 $160 $206 $208 $151 $400 $427 $29 $33 $33 $44 $62 $89$2 $7 $8 $6 $811 $23 $40 $40 $40 $42 $44 $45$111 $61 $76 $24 $79 $50 $182 $141 $158 $116 2018 2019 2020 2021 2022 2023 Cash Generated by Operations Capital Expenditures Acquisitions & Purchases of Intangible Assets Dividends Share Repurchases W
Slide 29: Capital Return History
29 Quarterly Cash Dividends Capital Return History $822.7 Million 2021 – 2024 YTD(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($1,097.2 M) less Capital expenditures ($274.5 M) 24.6% 18.7% Repurchases of Common Stock(2) (1) Time frame represents January 1, 2021 to June 30, 2024
Slide 30: Use of Cash Priorities
30 Use of Cash Priorities Cash Flow From Operations Share Repurchases • Evaluating potential M&A in the markets we operate (support key growth initiatives) • Integrating ETANCO remains the priority • Maintain quarterly cash dividends(1) • Consistently and moderately raise dividends • Capital return
Slide 31: Acquisition Strategy
31 Acquisition Strategy • Focused on strengthening our business model by expanding our product lines to develop complete solutions for the markets in which we operate • Improve our manufacturing capabilities and supply chain efficiencies to reduce lead-times and bring production closer to the end cu
Slide 32: Housing Market Projections
32 Housing Market Projections(1) There is a sizable shortage of new homes after more than a decade of under-building relative to population growth. (1) Source: www.macrotrends.net. Monthly housing starts data. New home construction dropped steeply after the recession and has yet to fully recover. Co
Slide 33: Social Responsibility
Social Responsibility Diversity, Equity and Inclusion Leadership & Development Human Capital Management Health and Safety Striving to ensure everyone at our Company feels included and empowered, and equipping our employees with the tools and confidence to nurture themselves and their careers • GOAL:
Slide 34: Company Ambitions
34 Company Ambitions Strengthening our values-based culture Being the business partner of choice Striving to be an innovative leader in the markets we operate Continuing above market growth relative to U.S. housing starts Returning to the top quartile of our proxy peers for operating income margin L
Slide 35: Return on Invested Capital (ROIC) Definition
35 Return on Invested Capital (“ROIC”) Definition When referred to in this presentation, return on invested capital (“ROIC”) for a fiscal year is calculated based on (i) the net income of that year as presented in the Company’s consolidated statements of operations prepared pursuant to generally acc
Slide 36: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE.