Masterbrand, Inc. · NYSE:MBC
Masterbrand — Q4 2023 Earnings Presentation
21 slides from Masterbrand's earnings presentation, Feb 26, 2024
Slide 1: Q4 and FY 2023 Investor Presentation
Q4 and FY 2023 Investor Presentation February 27, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” regarding business strategies, market potential, future financial performance, and other matters. Statements preceded by, followed by or that otherwise include the word “believes,” “expects,” “anticipates,” “intends,”
Slide 3: MasterBrand Overview
MasterBrand Overview #1 North American residential cabinet manufacturer MasterBrand at a glance MasterBrand key financial metrics $3.5 14% 15% 13% $2.7 billion $383 million $3.0 12% 11% 13% 2023 Net sales 2023 Adjusted EBITDA1 11% 11% $2.5 $2.5 $2.9 $3.3 $2.7 9% $2.0 $2.4 ~65% 4,400+ 7% Net sales to
Slide 4: The MasterBrand Story
The MasterBrand Story OUR PURPOSE OUR VISION OUR CULTURE Building great experiences together Build on our rich history by innovating Make the team better how we work and what we offer to Be bold delight our customers Champion improvement How? Tools that enable us to: TODAY Industry Leader Product &
Slide 5: ESG Highlights
ESG HIGHLIGHTS INTRODUCING MASTERBRAND CREATING A POSITIVE IMPACT The people of MasterBrand make a difference every day in meaningful ways. From caring about each other to At MasterBrand, we are proud of our 70-year heritage that has made us the number one North American residential serving the comm
Slide 6: Industry Leading Customer Base
Industry Leading Customer Base MasterBrand channel mix MasterBrand has leadership in dealer channel... Overview of primary sales channels 10% Dealer Retailers / Home 13% Dealer Channel Builder Channel Center Channel Retail: In Stock 50% Retail: Semi-Custom Channel Size $7.5bn $3.3bn $1.4bn 27% % of
Slide 7: Multi-Branded Strategy Across Price Points and Products
Multi-Branded Strategy Across Price Points and Products MasterBrand offers the most MasterBrand portfolio by type and key brands diverse product portfolio and covers the price spectrum Price point <$350 >$750 (per cabinet) 100% ~12% Stock /In-Stock Semi-Custom Custom/Premium 90% 80% 70% ~33% ~60% 60
Slide 8: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
Integrated Manufacturing Network & Strong Track Record of Continuous Improvement OLD MODEL: 10+ product platform / plant silos Footprint optimization Process improvement tools to + + + simplify product portfolio MANTRA brand sales grew 85% Assets Capabilities Product Specs CAGR from 2019 to 2023
Slide 9: Align to Grow
Align to Grow Simplified manufacturing to fulfill market needs Reduced complexity enables improved services and quality FACILITY RATIONALIZATION 2 1 Facilities closed Facility moved Plant A Plant B Targeted manufacturing ~56% Achieved Closed Apr-21 Closed Oct-22 moved abroad Mar-22 Reduction in Door
Slide 10: Lead Through Lean
Lead Through Lean Three years into our journey, we’re progressing toward our vision of being a best place to work LEAN FOUNDATION TOOLS Consistent opportunities to strengthen lean skills with 266 formal kaizen events in 2023 2025 and beyond ASSOCIATE ENGAGEMENT Best Place to Work Lead Through Lean f
Slide 11: Leveraging Data and Analytics to Unlock Shareholder Value
Leveraging Data and Analytics to Unlock Shareholder Value Simplify and Digitize our Enhance Customer Automate Backoffice Plants Experience Processes 11
Slide 12: Q4 2023 Highlights
Q4 2023 Highlights Financial Results ($ in millions, except per share amounts) Q4 2023 Q4 2022 B/(W) Net Sales $677.1 $784.4 (13.7%) Gross Profit $223.1 $215.0 3.8% Gross Profit % 32.9% 27.4% 550 bps SG&A $152.4 $161.3 (5.5%) Net Income $36.1 $15.4 134.4% Diluted EPS $0.28 $0.12 133.3% Adjusted EBIT
Slide 13: FY 2023 Highlights
FY 2023 Highlights Financial Results ($ in millions, except per share amounts) 2023 2022 B/(W) Net Sales $2,726.2 $3,275.5 (16.8%) Gross Profit $901.4 $940.5 (4.2%) Gross Profit % 33.1% 28.7% 440 bps SG&A $569.7 $648.5 (12.2%) Net Income $182.0 $155.4 17.1% Diluted EPS $1.40 $1.20 16.7% Adjusted EBI
Slide 14: Near-Term Expectations
Near-Term Expectations Full Year 2024 Outlook1 Drivers Market Growth MasterBrand • Continued effect of trade downs and a more normalized pricing environment, including customary promotions. Low Single Digit % Decline to Flat Net Sales • Assumes big ticket repair and remodel will lag smaller ticket i
Slide 15: Long-Term Financial Targets
Long-Term Financial Targets Long Term Outlook1 Market Growth MasterBrand 3-5% CAGR 4-6% CAGR North American Cabinets Market Net Sales ~16%-18% FY Adjusted EBITDA2 Margin Clear Path to Achieving Results 1. Business and portfolio aligned with the customer 2. Operational Excellence will fuel margin gro
Slide 16: Appendix
05 Appendix MasterBrand: Investor Day 2022
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this presentation, certain non-GAAP financial measures as defined under SEC rules have been included. It is our intent to provide
Slide 18: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations Fiscal Year Ended December 29, December 27, December 26, December 25, December 31, (In millions, except percentages) 2019 2020 2021 2022 2023 Reconciliation of Net Income to EBITDA to ADJUSTED Net income (GAAP) $ 100.7 $ 145.7 $ 182.6 $ 155.4 $ 182.0 Related party
Slide 19: Q4 2023 Non-GAAP Reconciliations
Q4 2023 Non-GAAP Reconciliations 14 Weeks Ended 13 Weeks Ended December 31, December 25, (U.S. Dollars presented in millions, except per share amounts and percentages) 2023 2022 1. Reconciliation of Net Income to EBITDA to ADJUSTED EBITDA Net income (GAAP) $ 36.1 $ 15.4 Related party interest income
Slide 20: Tick Legend
Tick Legend [1] Prior to the separation from Fortune Brands in 4Q 2022, our historical consolidated financial statements included expense allocations for certain corporate functions performed on our behalf by Fortune Brands, including information technology, finance, executive, human resources, supp
Slide 21: Full Year 2023 Non-GAAP Reconciliations
Full Year 2023 Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 53 Weeks Ended 52 Weeks Ended December 31, December 25, (U.S. Dollars presented in millions) 2023 2022 OPERATING ACTIVITIES Net income..............................................................................