Slide 1: Patrick Industries, Inc. Investor Presentation
@ PATRICK INDUSTRIES, INC. Investor Presentation September 10, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements or states our intentions, beli i i oking 1995, busine: result: Commission various conditions or
Slide 3: Company Overview
Company Overview
Slide 4: Patrick Industries, Inc.
@ PATRICK INDUSTRIES. IN
Slide 5: Patrick History
Patrick History Requires Adorn Holdings, Raises capital from majority ay Inc. -the largest shateholder and complet wal fan acquisition in the Refinancing va SSOMM ABL Company's history. (5/07), Company taken public (wasbaa) smpletes $110MM Leverage Based Credit Fac ot ian 8 bank syndication ‘Announc
Slide 6: Patrick Industries Fact Sheet
Patrick Industries Fact Sheet Leading national manufacturer and supplier of building and component products to the RV, MH & Industrial markets \dquartered in Ikhart, Indiana — the Elkl “RV Capital of the World” 41 manufacturing and 16 distribution centers 3,800+ employees Strong customer relationshi
Slide 7: National Manufacturing Footprint
Natior cturing ie Sauare roe is i Sone 1, 2 “Majority o businesses are st oe : fomoety 85% of all sone se on thew + Close proximity to uh Ose sca le ie = supy id ma cian inufacti RV Production Source: Recreation Vehicle Industry Association (RVIA)
Slide 8: The RV Market
The RV Market
Slide 9: RV Market Quick Facts
RV Market Quick Facts H# of U.S. RV-owning households Ser oe growing sere) hes st rate of RV ownership) home. family transitions. = Number Baby Boomers are projected to 1,000 decade. For the next 20 years, Generation Xers will be the dominant group of consumers, particularly for first time RV purcha
Slide 10: RV Market Drivers of Consumer Demand and Market Growth
RV Market ———! | Drivers of Consumer Demand Market Growth Job security & disposable income Changing lifestyle trends Consumer confid Economical vacation Source: RVIA
Slide 11: RV Industry Annual Shipment Trends
RV Industry Annual Shipment Trends Consumer Confidence RV Wholesale Unit Shipments Residential 357, Housing Crisis PBFA Ph gH HP PP gH pF gH pF pF pF gg 9 9 9h 997 8 9h ie Ve none ‘Consumer Confidence —O—RV Annual Shipments The Cé (6.000) swawelus ns
Slide 12: Patrick RV Content Per Unit
Patrick RV Content Per Unit RV content per unit has eased col ntly wi acquisition jrowth last 5 years. We gatiaiats pop RV perera reese in hake current pire grated et we eon exclusive of the North American Forest Products Acquisition, of over approximately $5,000 per unit. jped* | $’s Sold / RV Unit
Slide 13: The MH Market
The MH Market
Slide 14: MH Market Quick Facts
MH Market Quick Facts $94 (single family home) 1,470 sq. ft. = Multiple availabl floor plan: = Engineered for forms of housing = 10%-20% down payment home Source: Manufactured Housing Institute (MHI)
Slide 15: Drivers of Consumer Demand Market Growth
Drivers of Consumer Demand Market Growth f XY PATK Sales Mix by Industry Consumer Demand relationship with new housing starts. homes that families can afford. Source: MHI
Slide 16: MH Annual Shipment Trends
MH Annual Shipment Trends ig gammaceace MH Wholesale Unit Shipments 400 ening standards 0 1 leote Reside Housing ‘edt Lending essen 200. | Sands owing isis ze 251 S 20 8 s Rested Mand Resident ‘@ 200 193 Mowing ced Bending = 5 2 150 = G 100 2 50 50 s2 55 60 6470 7 50 s 5 Sh gh 5 + Io 9 $s? gh ho FPP
Slide 17: Patrick MH Content Per Unit
Patrick MH eines Per wise footstep scsainr Wo bancre Wo ars wal pentianed wo patipate tte Costa exclusive of the North American Forest Products Acquisition, of more than $6,000 per unit. $’s Sold / MH Unit Shipped* $1,500 $1,200 zs 5 3 z z 8 CRS CORRS CIR CE SEE SPeFSHE HSH ES “Based on TTM Average
Slide 18: The Industrial Market
The Industrial Market
Slide 19: Industrial Market Indicators
Industrial Market Indicators Drivers of Consumer Demand Market Growth PATK Sales Mix by Industry Consumer Demand remodel),
Slide 20: New Housing Starts Trends
New Housing Starts Trends New Housing Starts (000's) Our ° PP IPP ILI PPPS SP SF FS PF PPP PF 9 -S?, Sf Ps
Slide 21: Industrial Organic Growth
DD econanve Industrial Organic Growth ‘a= + 50% residential housing *+ 50% retail, commercial, hospitality and institutional (sin mitions) Product Types + Paper and vinyl laminated panels + High pressure laminate (“HPL”) Fabricated and contour banded parts ustrial Market Advantages : neler margins r
Slide 22: Strategy Execution
Strategy Execution
Slide 23: Capital Allocation
Capital Allocation — Acquisitions — Investments in infrastructure and capital expenditures — Debt Feducion is leverage Position We main nea an approp te | strategic growth initiatives. — Stock buyback program + At prices and vol management. under Our Cr dit facility and p to support our iate by the
Slide 24: Acquisition Strategy
Acquisition Strategy We target organizations with: High quality product lines + Strong growth potential Our goals are to: + Increase our content per unit + Leverage our management capabilities Diversification opportu We lagers ‘acai organization
Slide 25: Acquisition Summary by Year (2010 - 2015)
Acquisition Summary by Year (2010 - 2015) strategi over $134MM of annualized revenues in each of the past 3 years. In 2015, we have acquired approximately $233MM of annualized revenues. ote Aation Highlights rS Acquis jon Highlights ADORN . bse comp: . seu IM ager regate purchase price = S7MM aasrea
Slide 26: North American Acquisition
North American Acquisition tives, _ik: North American Pe t Products profile wraps, custom moulding: Is, tru: bow trusse: industrial packaging materials $165MM Revenue (July 2015 TTM estimated) knowledge Customer fi National
Slide 27: Reinvesting in the Business - Capital Expenditures
Reinvesting in the Business - Capital Expenditures (sin ousanas) $12,000 | $10,000 + $8,000 $6,000 $2,000 $12,095 510,605 , soi iL $8503 ond ss | 4 7480 sesaz se $5293 $4006 $4397 seas Recession saz3s é $243 $2436 y $7 iT $1,356 | ty hy yy yy yy Fy yy yy MM My By
Slide 28: Returning Capital to Investors
Returning Capital to Investors prog Ji 2015, 1,323,870 of $19.38 - 50% below the June 28, 2015 closing stock price of $38.47. 4,600 te $45.00 Tae 4,400 $40.00 300 | $35.00 3 $30.00 3 1000 = $25.00 Z 200 a $20.00 an) 3 $15.00 a $10.00 an i $5.00 23 258 196 ° $0.00 O42 QS Q21S GBS AHS QIN G24 GB4 At4s
Slide 29: Capital Allocation
Capital Allocation buyback: i it ir (sin mitions) 0 $30 ($140) *ProForma Sales (PFs based on TTM sales through June 2015. $150
Slide 30: Balance Sheet Strength
Balance Sheet Strength foll flows. Leverage Position Trend
Slide 31: Shareholder Value
Shareholder Value lders it 2010 - September 4, 2015. Monthly Closing Stock Price Trend
Slide 32: Stock Performance
Stock Performance Pi As of September 4, 2015, our i fit closi $43.9: it 51% Split Adjusted Stock Performance 12/31/13 12/31/14 09/04/15
Slide 33: Financial Performance
Financial Performance
Slide 34: Sales
Sales (Sin millions) Net Income / Diluted EPS Summary (Reported) 2012 — 6M “15 2018 ows owas (Sinmilions) Net Income 3250 _ $16. 5150 oa lo $50 Diluted EPS (pershare) az $150 “ ibs
Slide 35: Sales / Net Income / Diluted EPS Summary (Adjusted)
Sales / Net Income / Diluted EPS Summary (Adjusted) 2012 —- 6M “15 (Sin millions) 2012-2013, “Reflects adjustments for 2014 emia ew'1s Net Income - Adjusted* (Sn ilons) $21.2 a3 22 2013014 (per share)
Slide 36: TTM Gross and Operating Margin Improvement
TTM Gross and Operating Margin Improvement sales vol TIM Gross and Oper: ing Ma ‘s ssn 00r 161 16.1% 182%. $140 eA B TE 8 asa tn 2% 15.44 1D EA sno 100 (suomi s) $6 so ©, %, %, &, %, %, &, & &, &, & & &, 9, &, & &, 0, © &, 9, ‘0% 'e Eats WEmEGroes Margin Operating Income —e=Grose Margin % ——®=Operat
Slide 37: Investor Contacts
Investor Contacts Andy Nemeth Chief Financial Officer (574) 294-7511 nemetha@patrickind.com Julie Ann Kotowski Director of Investor Relations (874) 294-7511 kotowskj@ patrickind.com Analyst Coverage rities Daniel Moore dmoore@¢js-securities.com CL King & Associates Scott Stember sstember@clking.com
Slide 38: Appendix
Appendix
Slide 39: Acquisition Summary (2010 - 2015)
Acquisition Summary (2010 -— 2015) ee | eee | wn _| ADORN Quality Hardwoods Sales 01/2010 $2.0MM. $2MM Manufacturing RV Cabinet Doors 08/2010 _Blazon international Group 3.8 MM $20MM__Distribution RV &MH__ other building products } Painted countertops, fo: 06/2011 The Praxis Group $0.5 MM S4MM Distr
Slide 40: Acquisition Summary (2010 - 2015) (continued)
Acquisition Summary (2010 - 2015) (continued) i ee Sep-13 Sep-13, Sep-13 Sep-14 Nov-14 * Projected Annualized Sales as ofthe acquisition date AV, MH& Fiberglass bath fixtures including tubs Frontline Mfg, Inc 352MM $15MM_—- Manufacturing Industrial and showers & RV, MH& Premier Concepts, Ine s26mm S
Slide 41: Acquisition Summary (2010 - 2015) (continued)
ee Summary (2010 - 2015) (continued) 2 ee ee $50 Feb-iS Better Way Partners, LLC ‘Structural Composites of May-15 Indiana, Inc Sep-15 North American * Projected Annualized Sales as ofthe acquisition date 18MM $165 mM Manufacturing ‘Manufacturing, Manufacturing RV, Marine & Industrial RV, MH& Industr
Slide 42: Supplementary Schedules
Supplementary Schedules ($ in thousands) 2012 2013 2014 6M'14 6M ‘15 $24.04 30674] $16,127 $ 21,223] ——a a so] Seat) Sat at7| S137, 2012 #2013 2014 6M14 6M'15 net in hare (GAAP) [s176|s 149] 491] $s 1.00 ™ luster (0. (0.03) - - - \Adj ited net income per share (Non-GAAP) 446 [S$ aos 400 [$s 437] ‘an