Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Investor Presentation (November 2022)
24 slides from Advanced Drainage Systems's investor presentation, Nov 9, 2022
Slide 1: Advanced Drainage Systems Investor Presentation November 2022
/IBDS Advanced Drainage Systems Investor Presentation November 2022
Slide 2: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non-GAAP Financial Metrics Forward Looking Statements Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company's current expectations, estimates and projection
Slide 3: Key Discussion Topics: FY23 Guidance Updates and Destocking Impact
Key Discussion Topics Destocking Impact + Distributor destocking risk predominantly limited to Infiltrator onsite septic business and ADS retail FY23 Guidance Updates” Revenue — reduced midpoint 5% business. + Weakness in housing starts driven by significant interest rate * Channel checks indicate i
Slide 4: Demonstrated Ability to Outperform End Markets
Demonstrated Ability to Outperform End Markets Non-Residential Growth 1 O% Median Above- re © Market Growth 50% 40% 30% 20% 16% 10% F L Lj Ls 8% 8% om I i li kk ki l oe 10% 8% 12% 12% -20% FY FYI2 FYIS FYI4 FYI FYIG FYIT FYI8 FYI9 FY20 FY2I FY22 |= ADS' Non-Residential Growth Non-Residential Market
Slide 5: 0% 20% 40% 60% 80% 100% 120% 140% 160%
0% 20% 40% 60% 80% 100% 120% 140% 160% 1 2 3
Slide 6: Consolidated End Market Mix: Residential Details
Consolidated End Market Mix: Residential Details Total Residential 3 4% ADS Residential - 15% wf International ADS Residential Products sold on front-end of subdivision and multi-family developments Agriculture , 7% Large opportunity for continued share gains 6% \ Expanding partnerships with homebui
Slide 7: Company Overview
Company Overview JIBDS.
Slide 8: Put Simply / Our Promise
PUT SIMPLY /// OUR PROMISE To protect and manage water, the world’s most precious resource, safeguarding our environment and communities. /IBDS
Slide 9: Capture Conveyance Storage Treatment
9 Capture Conveyance Storage Treatment Precipitation River
Slide 10: Onsite Septic Wastewater Solutions
Passive Active ISDS. Onsite Septic Wastewater Solutions Septic Tank Conveyance Wastewater is fed through piping systems into an underground tank located outside of the home Primary Treatment Septic tank stores and treats solids while releasing clarified effluent into the leachfield Secondary Treatme
Slide 11: Single Wall =A
f Single Wall =A G # Nylopiast aia. DRAIN BASIN Single Wall PIPE a0 HP Storm DUAL WALL PIPE Infiltrator ‘SEPTIC TANK
Slide 12: FY22 Sustainability Highlights
FY22 Sustainability Highlights —— - 15% improvement se] $2 million Baus arses ‘ea In total recordable incident rate Contributed to charitable ounds of plastic recycles (TRIR) organizations annually 31% decrease 3% increase 000 50% C0, In GHG emissions intensity In miles per gallon | }) Of FY22 direc
Slide 13: Furthering our Commitment Through 10-Year Goals
Furthering our Commitment Through 10-Year Goals Recycling Environmental Impact Reduction (billion pounds of recycled material used annually by FY32 Science-Based Targets in line with 15°C Accountability Continued transparency in reporting annual progress towards goals Implementation of supplier sust
Slide 14: Differentiated Recycling Capabilities
Differentiated Recycling Capabilities Other Recycled PP 9 e——_— Recycled HDPE e«———— ISDS. —_—. ——— Virgin HDPE ———- Virgin PP Leaders in Material Science + Vertically integrated recycling operations that process over 600 million pounds of plastic annually, making ADS the largest plastic recycler in
Slide 15: Market share data
15 38% 62% Footnotes: Market share data based on management estimates. • • • • • • •
Slide 16: Market Share Model Accelerates Conversion
16 Market Share Model Accelerates Conversion • • • • • • • • • •
Slide 17: Our Value Proposition Drives Growth of our Conversion and Water Management Solutions
Our Value Proposition Drives Growth of our Conversion and Water Management Solutions The ADS customer value proposition sets us apart from our competition and makes us the partner of choice. Products From water capture to conveyance, storage and treatment our comprehensive suite of products are desi
Slide 18: Comprehensive Portfolio of Products for Water Management Solutions
Comprehensive Portfolio of Products for Water Management Solutions Our leading product position in the storm water and onsite septic wastewater management industries allow us to drive conversion and sell the whole package Nyloplast ‘Single Wall ‘StormTech Water Quality Arc Chambers. Durasiot Inserta
Slide 19: Sales, Distribution and Logistics Capabilities to Serve the Water Works Industry
Sales, Distribution and Logistics Capabilities to Serve the Water Works Industry Our vast sales and engineering force and distribution footprint coupled with our company owned fleet ensures we have the right products, at the right site, at the right time to meet customer needs uae ADS also partners
Slide 20: Winning in Priority States
Winning in Priority States a //BDS Note: ADS construction end market sales only ). Source: Dodge ; m Market Context Priority states represent ~60% of construction activity in the U.S. Represent ~55% of non-residential activity ~70% of overall housing starts ~60% of streets & highways activity Constr
Slide 21: Residential Homebuilder Programs
Residential Homebuilder Programs Focusing on building partnerships with the top homebuilders — estimated 30% of market opportunity is with the top 20 homebuilders In 2019, began allocating key sales and engineering talent to focus on this segment Driving the ADS value proposition + Footprint in key
Slide 22: Infrastructure Investment & Jobs Act (IIJA)
Infrastructure Investment & Jobs Act (IIJA) $1.2T over 5 years, including $550B in incremental new funding Highway & Transit Best ADS Opportunities Roads & Bridges - $ti0 Billion New Spending Airports - $25 Billion Water Infrastructure - $55 Billion Resiliency - $50 Billion Enhancing core infrastruc
Slide 23: Geographical Spread of Onsite Septic Use
Geographical Spread of Onsite Septic Use ~1/3 of new single-family homes built in the U.S. use onsite wastewater treatment systems fe) ~54% of Infiltrator onsite wastewater treatment system sales are in the southern crescent of the U.S. ig and durable market septic market ISDS. 23
Slide 24: Infiltrator Well Positioned For Growth
Infiltrator Well Positioned For Growth Benefits from Migration Shift Demand for single-family homes has increased due to population migration from high density areas to suburban and rural areas. These migration trends are particularly evident in states along the southern crescent of the U.S. Wastewa
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