Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation and Business Update
© Atkore Fourth Quarter and Full Year 2022 Earnings Presentation and Business Update November 18, 2022
Slide 2: Disclaimer
2© Atkore This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (the “Company” or “Atkore”) or its operational and financial information. A
Slide 3: Today's Discussion
3© Atkore Today’s Discussion 1. Outstanding Results & Performance in 2022 2. Company Overview & Growth Journey 3. Well-Positioned for Long-Term Growth & Value Creation 3
Slide 4: FY 2022 Year in Review
4© Atkore FY 2022 Year in Review 4 Delivered record financial results Completed six acquisitions As of 2022, Atkore Inc. received an MSCI ESG Rating of “AA” Received employer, ESG and customer awards & recognition MC Glide TuffTM – Awarded EC&M “Product of the Year” Strong balance sheet with Total D
Slide 5: Strong Results in Q4 and Full Year 2022
5© Atkore Strong Results in Q4 and Full Year 2022 1. See non-GAAP reconciliation in appendix. 501.7 477.4 923.7 1,029.0 Q4 2019 Q4 2022 Q4 2020 Q4 2021 +11% 46.0 54.2 202.6 220.8 Q4 2019 Q4 2020 Q4 2021 Q4 2022 +9% 88.8 98.2 292.9 325.1 Q4 2019 Q4 2020 Q4 2021 Q4 2022 +11% 1.01 1.18 4.39 5.52 Q4 202
Slide 6: Consolidated Atkore Bridges
6© Atkore Consolidated Atkore Bridges 1. See non-GAAP reconciliation in appendix. Adjusted EBITDA Bridge1Net Sales BridgeQ4 2022 FY 2022 $8 $45 $57 $5 Volume/Mix2021 M&APrice F/X / Other 2022 $924M $1,029M $4 $5 $45 $10 $22 2022Cost Changes 2021 Volume/Mix Price M&A Productivity / Investment / F/X /
Slide 7: Company Overview
7© Atkore Company Overview
Slide 8: Atkore: a Compelling Investment
8© Atkore Atkore: a Compelling Investment Disciplined Operational Focus Values-based organization driven by the Atkore Business System Track Record of Success Strong track record of earnings growth, increasing free cash flow and excellent return on capital Market Leadership Leading market share in k
Slide 9: Our Foundation Is the Atkore Business System
9© Atkore Our Foundation Is the Atkore Business System
Slide 10: Our Products Are All Around You
10© Atkore Our Products Are All Around You HDPE Conduit Wire Basket Cable Tray & Fittings Telescoping Sign Support System Cable Tray, Ladder & Fittings Steel Conduit & Fittings PVC and Metal Trunking Electrical Prefabrication Flexible & Liquid Tight Electrical Conduit Industrial Flexible Electrical
Slide 11: Integrated & Aligned Operating Segments
11© Atkore Integrated & Aligned Operating Segments • Manufacture high quality products used in the construction of electrical power systems across various end-use applications; #1 or #2 position in most key categories • Products are a staple for electrical distributors, helping us establish strong r
Slide 12: Growth Driven by Atkore Business System
12© Atkore Growth Driven by Atkore Business System 1. See non-GAAP reconciliation in appendix. Historical Adjusted EBITDA1 Bridge Historical Net Sales Bridge $101 $1,924 $593 $21 $15 2017 PriceVolume/Mix $1,504M M&A Divestitures Other 2022 $3,914M $757 $229 $5 $93 $585 2017 Volume/Mix DivestituresPr
Slide 13: Our Business Has Transformed Since IPO
13© Atkore Transformed sales mix to drive significant revenue growth and profitability through organic and inorganic activities while increasing our total addressable market opportunity Our Business Has Transformed Since IPO 1. See non-GAAP reconciliation in appendix. 2. Sales of “Other Electrical p
Slide 14: Diversity of End-Market Use Enables Flexibility
14© Atkore Diversity of End-Market Use Enables Flexibility Non-Residential Construction (Global) Residential (U.S.) OEM / OTHER Commercial & Industrial Institutional Data Centers & Warehouses Utility Multi-Family Single Family Plastic Pipe, Conduit & Fittings Metal Electrical Conduit & Fittings Meta
Slide 15: Solid Market Fundamentals
15© Atkore Architecture Billings Index >50 indicates growth vs. prior month; Leads construction starts by ~12 months Dodge Momentum Index 2000 = 100; Leads construction starts by ~9 to 12 months Solid Market Fundamentals Note: All periods presented represent the average of the preceding 12 months Co
Slide 16: Exposed to Strong Underlying MegaTrends
16© Atkore “Electrification of Everything” Growth in Renewables Exposed to Strong Underlying MegaTrends Grid Hardening Digital Infrastructure Plastic Pipe, Conduit & Fittings Demand Driver by Key Product Area (Illustrative Impact) According to a study from Princeton University, electrifying nearly a
Slide 17: Conduits of Growth
17© Atkore Conduits of Growth Customer Experience Enhancements Digital Capabilities & Resources Ongoing investment areas across the business to improve market positioning and operational capabilities Focused Product Category Growth & Innovation M&A Pipeline Category Expansion Initiatives
Slide 18: Strategic & Disciplined Approach to M&A
18© Atkore Strategic & Disciplined Approach to M&A Critical mass in served markets Value creation Stewardship & Atkore values Focused on Key Markets with Growth Opportunities Seek growth in core product categories for scale in key markets Diligent assessment of macro growth trends and competitiv
Slide 19: Acquisitions Deployed $649M to Bolster Product Categories
19© Atkore Deployed $649M to bolster product categories, expand geographic presence and enter new markets to enhance our transformation May 2017 August 2022May 2022December 2021October 2020August 2019September 2018 Acquisition of a wire basket cable tray, PVC trunking and aluminum power poles compan
Slide 20: Welcome Elite Polymer Solutions!
20© Atkore Welcome Elite Polymer Solutions! Manufacturer of High Density Polyethylene (HDPE) conduit, primarily serving telecommunications, power utility, and transportation markets 20 M&A Acquired the assets of Elite Polymer Solutions on November 7, 2022 Located in Lovelady, Texas, with approximate
Slide 21: HDPE Products Expected to Drive Growth
21© Atkore Between recent organic and inorganic investments, we expect our HDPE related products to be a strong driver of growth for the next several years given the secular tailwinds behind the products and our execution of the Atkore Business System HDPE Products Expected to Drive Growth HDPE Prod
Slide 22: New Large Tube Capacity & Capabilities Provide Opportunity
22© Atkore New Large Tube Capacity & Capabilities Provide Opportunity Solar megatrend represents a growth and category expansion opportunity — leveraging recent capability and capacity investments for mechanical tubing products that can be used in renewable energy applications. In May 2022, unveiled
Slide 23: Focused Product Category Growth & Innovation
23© Atkore New product innovation and share gain opportunities in key categories and markets expected to contribute to incremental and profitable growth over the next several years Focused Product Category Growth & Innovation Growth Examples PLASTIC PIPE & CONDUIT & FITTINGS METAL ELECTRICAL CONDUIT
Slide 24: Positioned for Long-Term Growth & Value Creation
24© Atkore Positioned for Long-Term Growth & Value Creation
Slide 25: Strong Financial Profile to Support Future Growth
25© Atkore Strong Financial Profile to Support Future Growth 1. See non-GAAP reconciliation in appendix. 1,504 1,835 1,917 1,765 2,928 3,914 20192017 2018 20212020 2022 +21% CAGR Net Sales $M 228 272 324 327 898 1,342 2017 2018 20202019 2021 2022 +43% CAGR Adjusted EBITDA1 $M 1.65 2.78 3.62 3.78 12.
Slide 26: Initial FY2023 Outlook
26© Atkore Initial FY2023 Outlook Outlook Summary 1. Reconciliation of the forward-looking quarterly and full-year 2023 outlook for Adjusted EBITDA and Adjusted EPS is not being provided as the Company does not currently have sufficient data to accurately estimate the variables and individual adjust
Slide 27: Key Bridging Assumptions FY23 vs. FY22
27© Atkore With continued normalization of average selling prices in key product lines such as PVC electrical conduit, we expect part of the pricing outperformance in FY2022 to continue to normalize and be an unfavorable year over year impact in FY2023 vs. FY2022 Key Bridging Assumptions FY23 vs. FY
Slide 28: Updated Capital Deployment Framework
28© Atkore Updated Capital Deployment Framework 1. Plan announced in November 2021. Capital Deployment Focused on Driving Growth in Adjusted EPS Capital Deployment Model – FY 2023 & Forward Capital Expenditures, Organic Growth, and Capacity Investments M&A Stock Repurchases Priority Uses for Capital
Slide 29: Strategy Set to Deliver Future Performance
29© Atkore We expect our Conduits of Growth and Capital Deployment Model to help drive future performance Strategy Set to Deliver Future Performance Illustrative Long-Term Adjusted EPS1 Bridge, $/share 1. Reconciliation of the forward-looking quarterly and full-year 2025 outlook for Adjusted EPS is
Slide 30: Atkore: a Compelling Investment
30© Atkore Atkore: a Compelling Investment Disciplined Operational Focus Values-based organization driven by the Atkore Business System Track Record of Success Strong track record of earnings growth, increasing free cash flow and excellent return on capital Market Leadership Leading market share in
Slide 31: Appendix
31© Atkore Appendix
Slide 32: Q4 Income Statement Summary
32© Atkore Q4 Income Statement Summary 1. See non-GAAP reconciliation in appendix 2. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of Net sales ($’s in millions) Q4 2022 Q4 2021 Y/Y Change Y/Y % Change Net Sales $1,029.0 $923.7 $105.3 11.4% Operating Income $296.8 $266.0 $30.9 11.6% Net
Slide 33: Consolidated Atkore Bridges
33© Atkore Consolidated Atkore Bridges $3 $59 $51 $9 2021 Volume/Mix Price M&A F/X / Other 2022 $697M $795M Q4 Net Sales Bridge $12 $14 $6 $3 20222021 Volume/Mix Price $234M M&A F/X / Other $227M Q4 Net Sales Bridge Electrical Safety & Infrastructure ($’s in millions) Q4 2022 Q4 2021 Y/Y Change Net
Slide 34: FY22 Income Statement Summary
34© Atkore FY22 Income Statement Summary 1. See non-GAAP reconciliation in appendix 2. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of Net sales ($’s in millions) FY 2022 FY 2021 Y/Y Change Y/Y % Change Net Sales $3,913.9 $2,928.0 $985.9 33.7% Operating Income $1,233.8 $798.9 $434.9 54.
Slide 35: Segment Information
35© Atkore Segment Information Three months ended September 30, 2022 September 30, 2021 (in thousands) Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adjusted EBITDA Adjusted EBITDA Margin Electrical $ 795,220 $ 308,783 38.8 % $ 697,492 $ 283,945 40.7 % Safety & Infrastructure 233,884 36
Slide 36: Segment Information
36© Atkore Segment Information Fiscal year ended September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 (in thousands) Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adj
Slide 37: Adjusted Earnings Per Share Reconciliation
37© Atkore Adjusted Earnings Per Share Reconciliation Consolidated Atkore Inc. Three months ended Fiscal Year Ended (in thousands, except per share data) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income $ 220,802 $ 202,561 $ 913,434 $ 587,857 Stock-based compens
Slide 38: Adjusted Earnings Per Share Reconciliation
38© Atkore Adjusted Earnings Per Share Reconciliation Consolidated Atkore Inc. (in thousands, except per share data) Three months ended September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Net income $ 220,802 $ 202,561 $ 54,241 $ 45,997 $
Slide 39: Adjusted Earnings Per Share Reconciliation
39© Atkore Adjusted Earnings Per Share Reconciliation Consolidated Atkore Inc. (in thousands, except per share data) Fiscal Year Ended September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Net income $ 913,434 $ 587,857 $ 152,302 $ 139,051
Slide 40: Net Income to Adjusted EBITDA Reconciliation
40© Atkore Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended Fiscal Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income $ 220,802 $ 202,561 $ 913,434 $ 587,857 Income tax expense 66,557 65,222 290,186
Slide 41: Net Income to Adjusted EBITDA Reconciliation
41© Atkore Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Net income $ 220,802 $ 202,561 $ 54,241 $ 45,997 $ 32,699 $ 20,857 Inco
Slide 42: Net Income to Adjusted EBITDA Reconciliation
42© Atkore Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Fiscal Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Net income $ 913,434 $ 587,857 $ 152,302 $ 139,051 $ 136,645 $ 84,639 In
Slide 43: Trailing Twelve Month Adjusted EBITDA
43© Atkore Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three months ended (in thousands) September 30, 2022 September 30, 2022 June 24, 2022 March 25, 2022 December 24, 2021 Net income $ 913,434 $ 220,802 $ 254,313 $ 233,477 $ 204,843 Interest expense, net 30,676 9,000 7,243 7
Slide 44: Net Debt to Total Debt and Leverage Ratio
44© Atkore Net Debt to Total Debt and Leverage Ratio Consolidated Atkore Inc. ($ in thousands) September 30, 2022 June 24, 2022 March 25, 2022 December 24, 2021 September 30, 2021 June 25, 2021 March 26, 2021 December 25, 2020 Short-term debt and current maturities of long- term debt $ — $ — $ — $ —
Slide 45: Net Debt to Total Debt and Leverage Ratio
45© Atkore Net Debt to Total Debt and Leverage Ratio Consolidated Atkore Inc. ($ in thousands) September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Short-term debt and current maturities of long-term debt $ — $ — $ — $ — $ 26,561 $ 4,215 L
Slide 46: Free Cash Flow Reconciliation
46© Atkore Free Cash Flow Reconciliation Consolidated Atkore Inc. Fiscal year ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 Net cash provided by operating activities $ 786,835 $ 572,902 $ 248,762 $ 209,694 $ 145
Slide 47: atkore.com
47© Atkore atkore.com © Atkore