Slide 1: Patrick Industries, Inc. Investor Presentation September 2016
k Industries, Inc. Investor Presentation September 2016 NASDAQ: PATK
Slide 2: Forward-Looking Statements
rd-Looking Statements s presentation contains certain statements related to future results or states intentions, beliefs and expectations or predictions for the future which are ward-looking statements as that term is defined in the Private Securities ‘igation Reform Act of 1995. These forward-looki
Slide 3: Company Overview
Company Overview
Slide 4: Patrick History
Patrick History Raises capital from majority the largestacqusttioninthe shareholder and completes Company Company'shistory (5107), Refinancing via $50MM ABL founded Credit Facility led by Wells Fargo to execute on strategic growth and acquisition plans (3/11) Company taken public 2011 2012 oe ee )MM
Slide 5: Patrick at a Glance
k at a Glance ounded in 1959 and incorporated in Indiana in 1961 adquartered in Elkhart, Indiana- the “RV Capital of the World” eading national manufacturer and supplier of building and component products to the RV, MH and Industrial markets Operates over 60 facilities in 16 states Approximately 4,8
Slide 6: Brands
Brands Up PATRICK INDUSTRIES. INC. Parkland Plastics ®PolyDyn? ~~ eT Gravure en
Slide 7: Patrick Industries Overview
Patrick Industries Overview > 76% of 6M 2016 Net Sales > 12% of 6M 2016 Net Sales > 12% of 6M 2016 Net Sales > includes walliceiting panels, pressed > Includes wall/ceiling panels, > Includes retail and commercial and hardwood doors, countertops, pressed and hardwood doors, fixtures, kitchen cabinet
Slide 8: Patrick Facility Profile
ick Facility Profile
Slide 9: Sales & Earnings Growth
Sales & Earnings Growth sh Earnings Growth 2% 82.72 Sales Growth 25% $920 $736 S191 $1.90 a 1% $594 $149 — ra S457 ped 413% $24 2015 Sales amaNet Income Diluted EPS > Sales continueto growand outpace their respective markets, driven by acquisitions, new products and extension growth, and market shar
Slide 10: Margin Expansion
Margin Expansion sean) 812° 185% seo 164% 164% 16.2% 16.9% 18.5% on 185% 18.7% 18.7% pag a 18.2% 45.0% 150% 182% 16:1% 19.3% 15.4% 1 ape mage sca eos aes 144% 0° ear eee SD SE ced . s140 gue 11.390 4 s120 st00 77% 73% | 7.0% 72% 73 $30 om 70% 2 *% a -a-- 6% - $60 &% s40 2 % $20 0% so IC ae ie ee Din
Slide 11: The RV Market
The RV Market
Slide 12: RV Industry Conditions & Consumer Trends
RV Industry Conditions & Consumer Trends Economy Demographics Industry Strength Lifestyle Industry Strength Demographics * Retail shipments outpaced wholesale shipments in 2015 allowing for + One inten vehicle-owning households between 50 and 64 own at least healthy dealer inventories one RV + 2015
Slide 13: RV Industry Annual Shipment Trends
RV Industry Annual Shipment Trends (Shipments in thousands) RV Wholesale Unit Shipments woo $11 Attacks Residential Housing Crisis GultWar jonsumer Confidence © —o— RV Annual Shipments The RV industry has experienced steady growth over the last five years following a 58% decline in unit shipments du
Slide 14: RV Shipments
RV Shipments (Sin millions) shipments in thousands) sane 280 4.7% 26 ‘97 e & 6 s rs s mmm Towable Shipments |mMotorized Shipments —P~Patrick RV Sales Towable RVs Motorized RVs > 89% of industry unit sales (on avg. since 2010) > 11% of industry unit sales (on avg. since 2010) > 59% of retail dollar s
Slide 15: RV Towable Shipments
RV Towable Shipments (_])RVimiolesale towable'shipments (in thousands) [[efaveltraiem eTavel Tob Fith Whee! eFoting Guphg Tales eTackGmps | ‘Travel Trailers ‘Travel Trailers: h Wheel > 70% of towable unit sales (on avg. since 2010) > 25% of towable unit sales (on avg. since 2010) > 57% of towable re
Slide 16: RV Motorized Shipments
RV Motorized Shipments {__)Riiolesale motorized shipments (in thousands) 25 7 25 41% 42% SConenionalCassA ani(GhmG evenCawesicuns) ] Conventional (class) Van Campers (Class B) > 50% of motorized unit sales (on avg. since 2010) > 7% of motorized unit sales (on avg. since 2010) > 66% of motorized reta
Slide 17: Retail vs. Wholesale - '15 vs. '14
Retail vs. Wholesale - ‘15 vs. ‘14 (Shipments in thousands) RV Towables Total Towables- Travel Trailer Towables -Fith Wheel 7386 0f 2015 towable shipments Bai of 2015 towable shioments sepscer Ret RV Motorized - Total Motorized -ClassA Motorized -Class® & ¢ 4586 0f 2015 motorized shipments 348802015
Slide 18: Retail vs. Wholesale - June TTM vs. June TTM
Retail vs. Wholesale — June 16 TTM vs. June 15 TTM (Shipments in thousands) RV Towables - Total 2016 Towables - Travel Trailer 17436 of June 16 TTM towable shioments 258 285 11% 413% 2016 mDealer mRetail Towables - Fifth Wheel 2236 of June 16 TTM towable shioments 76 76 “1% | 44% 2016 RV Motorized -
Slide 19: RV Content per Unit
ontent per Unit $5,600 $1,998 onto $1,707 : $1410 $1217, $924 J i tl i | | | | ott op aN 2 x © yt pd? ut® gt ot ot nt on oy! ee ooo" oan oo oot on oo? at? *® oy? on vo > RV unit content increased 17% in Q2 ‘16 vs. prior year = Driven by new products, extension growth, acquisitions, and market share
Slide 20: Patrick Product Lines — RV Interior
Patrick Product Lines — RV Interior Closet Closet & Passage Doors Fiberglass Bath Fixtures Cabinet Doors Mattresses __& Shower Doors Kitchen & Bath Electronics Microwaves Faucets & Sinks Laminated Panels & Vanity Mirrors Printed Vinyl Drawer Fronts & Laminate & Countertops Ceramic Flooring Backsplas
Slide 21: Patrick Product Lines — RV Exterior
Patrick Product Lines — RV Exterior entra Bow Trusses Exterior Speakers Rear Caps Additional Product Lines: + Softwoods * Full Body Paint * Aluminum Gauges + Steel Gauges + Mill Finish & Pre- Painted Aluminum and Steel * Slit & Embossed Steel * FRP Coil & Sheet RV Power Cords & inlets RV Grills & Ac
Slide 22: Patrick RV Products Growth Potential
Patrick RV Products Growth Potential E mPATRICK
Slide 23: The MH Market
The MH Market
Slide 24: MH Market Conditions & Consumer Trends
ket Conditions & Consumer Trends Approximately 9 million households with 22 million people living in manufacturedhomes ‘9% of nation’s single family housing stock) jordable form of home ownershi + Average structure cost per sq. ft. (2015): $47.55 (MH) vs. $100.65 (single family home) + Average MH re
Slide 25: MH Market Indicators
MH Market Indicators rivers of Consumer Demand Market Growth Quality credit, standards ler and anufacturer [ll Affordability invento and quality Alternative Number of housing aging "Baby availability Boomers credit, availability Ly é confidence Tax incentive: > Opportunity for moderate year-over-yea
Slide 26: MH Annual Shipment Trends
MH Annual Shipment Trends (Shipments in thousands) MH Wholesale Unit Shipments 193 Residential Housing Crisis Restricted MH and Residential Housing Credit& Lending Conditions 80 ea 74 Sh ee Sigh go wm Wo gk sg gh op gh S db SS SF SF S GS SS is Ss a ns SS SS So The MH industry continues to perform at
Slide 27: MH Shipments
MH Shipments (Sin millions) shipments in thousands) mm Wholesale Units ~*-Patrick MH Sales > Wholesale unit shipments continue to increase YoY — up 20% in 6M 2016 > Patrick MH segment sales are up 24% in 6M 2016 led by acquisitions and strong market share gain from our distribution branches PATRI
Slide 28: MH Content per Unit
MH Content per Unit Content per Unit $6,200 CAGR 6% aT) su27 a ae $4,592 I TI 2 Ae ~ Pa op’ oo ontent increase = $9t per year, CAG SP _ __ tora - 1 vcore oo" oot oa oo s* or oat at AP ah ad oat Aa nt? a? > MHunit contentincreased 2% in Q2 ‘16 vs. prioryear = Driven by new products, extension growth,
Slide 29: Patrick Product Lines — MH
Patrick Product Lines — MH Kitchen&Bath Fiberglass Bath Fixtures& Shower Faucets & Sinks Doors Gypsum (Drywall & Drywall Finishing | Phumbing Pree ao sing — i rose cetmatens | gages a fin oa ueacine | a Cabinets a | ch] i q | ( | vic i visi va Pewtll agoaey eee cctnet|| | resetting WiringlElectrical
Slide 30: Patrick MH Products Growth Potential
Patrick MH Products Growth Potential Alternative Insulation Solar Panels Hardware Composite Additional Supplied Products: Decking + WaterHeaters + Appliances + Toilets/Plumbing + HVAC Brackets/Braces & Hardware » PATRICK
Slide 31: The Industrial Market
The Industrial Market
Slide 32: Industrial Market Indicators
Industrial Market Indicators Market Growth 5,500 5,300 lew 0 construction 510 & growth = 490 = z 6 470 3 = Q d 5 450 2 Job Affordable 3 g growth 3 sa0 3 z 410 8 2 os 400 3,900 2 SS s 2 so ° $ a2 & & co c2 2 [Ese NavHousing Sats —e— Existing Hore Ses] > 45% of the Company's industrial revenue base is
Slide 33: Residential & Non-Residential Trends
Residential & Non-Residential Trends (Sn millions) (housing starts in thousands) non-res constfuetion spend (commercial), YoY chg. 44 ‘s * me : 419% Ee “ fry x9 » ¢ = fA ao 35% = BB 7 z 14% a 12% i) =» 5a 609 535 aa mm Residential Housing Starts —*~Patrick Industrial Sales > Our products have applic
Slide 34: Housing Starts Trends
ousing Starts Trends 1,364 a ee Source: 1990-2015: U.S. Census Bureau; 2016-2018F: NAHB (as of July 29, 2016)
Slide 35: Strategy Execution
Strategy Execution
Slide 36: Capital Allocation
Capital Allocation Acquisitions Geographic and product expansion Stock buyback program « At prices and volumes deemed appropriate by the Board and management > Investments in infrastructure and capital expenditures > Debt reduction and leverage position = We expect to utilize availability under our
Slide 37: Acquisition Strategy
isition Strategy janizations with: agement teams with strong customer and supplier relationships and operational talent ality product lines Strong growth potential Strategic value proposition to our business model Patrick provides the acquired businesses with: = Opportunity to allow the creative ent
Slide 38: Acquisition Summary by Year
Acquisition Summary by Year 2010 Acquisition Highlights aggregate purchase price IM annualized sales imarily RV market-based + 7 companies gas @ + $72MM aggregate purchase price ames + $126MM annualized sales 4 erowpyn® + Primarily RV market-based — 2011 Acquisition Highlights + 3. companies } S7MM
Slide 39: Geographic & Product Expansion
Pacitic Northwest Lamination + Aluminum FRE + Fiberglass + Paint Solid Surface + Hardwood Products + Pressed Products + Industrial + Interior Doors Southern California Softwoods: + Paint + Solid Surface + Hardwood Products + Pressed Products raphic & Product Expansion Texas Softwoods + Hardwood Prod
Slide 40: Stock Buyback
Stock Buyback aerr 1857 1747 $50.00 29} 4901S, 1324 sara $0.00 611 611 ott $30.00 2 $20.00 600 400 ‘sine 200 o $0.00 442 Q143 G243 343 Q413 A144 214 O344 Q444 A145 Q245 0345 A445 A146 0246 ‘Stock Buyback ( (gmmm Incremental Shares Repurchased HNN Cumulative Shares Repurchased —e— Avg. Close Share Pr
Slide 41: Capital Expenditures
al Expenditures $12,900 $8,569 $7,895 $7958 $6,542 Recession 2012 2013 2014 2015 2016F We will continue to invest in our infrastructure to drive enterprise wide efficiency and flex our capital spend when necessary to align with our demand levels
Slide 42: Capital Allocation
| Allocation aT a = a $262 (8213) $42 2010 Acquisitions Capital Stock Debt @2 2016 Beginning ‘Spending Buybacks Payments Ending Debt Debt
Slide 43: Funding Growth with Cash Flows
Funding Growth with Cash Flows 2011 2012 2013 2014 2015 Flows From Operating Activities: income $ 8,470 | $28,095 ] $24,040 | $30,674 | $ 42,219 epreciation & amortization 4916| 5,586] 7,297) 10,433] 16,775 Deferred financing amortization 995 53 430 365 490 Stock compensation/deferred compensation/D
Slide 44: Balance Sheet Strength
Balance Sheet Strength Leverage Position Trend + @ @ %> =o —, Genco FOND i Sr SETI of Acaustions STAM of Acquistions a 20MM of Acquisitions <a Acqustions ey as Acquisitions = Sa 20 10 po ge po te ee Ss We expect and continue to utilize our leverage for strategic acquisitions, followed shortly therea
Slide 45: Stock Performance
Stock Performance Split Adjusted Stock Performance $70.00 | 0.00 } $40.00 $30.00 $20.00 $10.00 } sooo L 12131113 128114 1213115 8131/16 == Pre-Stock Split Close Price == Post-Stock Split Close Price As of August 31, 2016, our split-adjusted closing stock price was $64.03, approximately 146% of our p
Slide 46: Why Patrick Industries
Why Patrick Industries + Approximately $17 billion addressable expanding RV & MH markets + Emerging industrial and housing market : * Continuously expanding product and company portfolio Business through organic growth and growth through acquisitions + Execution of strategic plan and balanced capita
Slide 47: Appendix
Appendix
Slide 48: Shareholder Value
Shareholder Value PATK Price and Volume 4,000,000 $70.00 900,000 $60.00 800,000 700,000 $60.00 600,000 me 500,000 400,000 $20.00 300,000 $20.00 200,000 lita - Hil hit : IHN. Fg 6 6s? So? Volume Price Patrick had approximately 15.3 million shares outstanding and a market capitalization of approximate
Slide 49: Acquisition Summary
Acquisition Summary Be 012019 Quay HerdvoodsSakes —S20NM «SQM Manufactuing == RV._Catnet Doors ® Wiring, electrical plumbing, and ce'2010__Blazen Inertial Group __$28MM___S20MIM__Distibution _RV.&MH other tuldng progucts C- Painted countertops, foam 092011 The Pravs Grup == SOSMM == «SEMM.——_—isirbu
Slide 50: Acquisition Summary
Acquisition Summary Date ee = ‘ormpleted Sales: a) Er J RV,MH& Fiberglass bath fidures including 09/2013 Frontline Mg.. Inc. ‘$52MM ‘S15MM Manufacturing Industrial tubs and showers CJ RV, MH& 09/2013 Premier Concepts, Inc. $2.6 MM. S10MM. Manufacturing Industrial Solid surface countertops Py Recline
Slide 51: Acquisition Summary
Acquisition Summary Pe ren [een rere IE Porte db . laminated panels, rawprocessed ee c ‘wall panels, lay-in ceiling panels, Parkland Plastics coated & rolled floors, protective eee nae ‘Custom cabinetry including See LS |Mansfactring ‘Themoformed plastic parts and
Slide 52: Patrick Industries, Inc.
PATRICK INDUSTRIES, INC.