Quanex Building Products Corporation · NYSE:NX

Quanex Building Products — Merger or Acquisition (April 2024)

22 slides from Quanex Building Products's merger presentation, Apr 22, 2024

  1. Slide 1: Quanex to Acquire Tyman

    QUANEX TO ACQUIRE TYMAN APRIL 22, 2024 © 2023 Quanex | Q U A N E X . C O M © 2024 Quanex | Q U A N E X . C O M

  2. Slide 2: Today's Presenters

    T O D AY ’ S P R E S E N T E R S George Wilson Scott Zuelhke Chairman of the Board, Senior Vice President, President and CEO CFO and Treasurer 2 © 2024 Quanex | Q U A N E X . C O M

  3. Slide 3: Disclaimer

    DISCLAIMER NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This presentation has been prepared by Quanex ("Quanex") solely in connec

  4. Slide 4: Disclaimer (cont'd)

    D I S C L A I M E R ( c o n t ’d ) Non-GAAP Terminology Definitions and Disclaimers EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-

  5. Slide 5: Transaction Overview

    T RAN SAC TION OVERVIEW OFFER ▪ Recommended cash and share offer valuing Tyman at approximately $1.1 billion (1) in enterprise value ▪ Under the terms of the Acquisition, Tyman shareholders will receive 400.0 pence per each Tyman share they own, a 35.1% premium above Tyman’s closing share price of 2

  6. Slide 6: Transaction Overview (cont'd)

    T R A N S A C T I O N O V E R V I E W ( c o n t ’d ) ▪ The combined business would have pro forma revenue of approximately $2 billion (1) and pro forma Adjusted EBITDA of approximately $310 million(1),(2),(3) in FY 2023A (including identified cost synergies) FINANCIAL ▪ Expected cost synergies of ap

  7. Slide 7: Tyman at a Glance

    T Y M A N AT A G L A N C E Differentiated World-class P R O D U C T (1) G EO G R A P H Y (1) C H A N N E L (1) product offering(2) brands Commercial access solutions Other UK & Ireland 12% Window and 4% 15% North America Manufacturers Seals and door hardware 66% 65% Actuators Brackets extrusions Dis

  8. Slide 8: Transformational Acquisition with Highly Compelling Industrial Logic

    T R A N S F O R M AT I O N A L A C Q U I S I T I O N W I T H H I G H LY COMPELLING INDUSTRIAL LOGIC Creation of an approximately $2 billion(1) global engineered components 1 supplier with leading positions 2 Highly complementary and strategic fit across products and geographies Establishes significa

  9. Slide 9: Creation of an Approximately $2 Billion Global Engineered Components Supplier

    1 C R E AT I O N O F A N A P P R O X I M AT E LY $ 2 B I L L I O N G L O B A L ENGINEERED COMPONENTS SUPPLIER WITH LEADING POSITIONS Financials aligned to FY 2023A(1) + = COMBINED REVENUE $1,131M ~$818M ~$1,949M Significantly enhanced scale ADJUSTED EBITDA $160M(2) ~$120M(2) ~$310M(3) Material, acti

  10. Slide 10: Highly Complementary and Strategic Fit Across Products and Geographies

    2 H I G H LY C O M P L E M E N TA R Y A N D S T R AT E G I C F I T A C R O S S PRODUCTS AND GEOGRAPHIES + = COMBINED Commercial Access Commercial Access Custom Mixing Solutions Solutions Custom Mixing 7% Seals and 5% 12% 4% Extrusions Cabinet 7% Window Seals and and Door Components Vinyl Cabinet Har

  11. Slide 11: Establishes Significant Global Manufacturing Footprint

    3 E S TA B L I S H E S S I G N I F I C A N T G L O B A L M A N U FAC T U R I N G F O O T P R I N T W I T H D I F F E R E N T I AT E D C A PA B I L I T I E S NORTH AMERICA EUROPE Quanex Tyman Headquarters Vinyl Profiles Insulating Glass Spacers/ Headquarters Manufacturing site Screens & Other Fenestr

  12. Slide 12: Significant Synergy Potential Driving Enhanced Margin and Cash Flow Profile

    4 SIGNIFICANT SYNERGY POTENTIAL DRIVING ENHANCED MARGIN AND CASH FLOW PROFILE ~$ 3 0 M I L L I O N R U N - R AT E C O S T S Y N E R G I E S SYNERGY TIMING ~40% ~$30M ▪ Full run-rate ~$30M cost synergies achieved within two years after transaction close ~30% ~30% Year 1 ~50% Year 2 100% G&A S&M Procu

  13. Slide 13: Fully Aligned with BIGGER Strategic Roadmap for Growth and Value Creation

    5 F U L LY A L I G N E D W I T H B I G G E R S T R AT E G I C R O A D M A P F O R G R O W T H A N D VA L U E C R E AT I O N Key elements of the strategy Tyman contribution  ▪ Enhances product offering and helps capture additional B old ▪ Acquisition-driven growth in key areas market opportunities ▪

  14. Slide 14: Strong Balance Sheet and Operating Platform

    6 S T R O N G B A L A N C E S H E E T A N D O P E R AT I N G P L AT F O R M WELL-POSITIONED FOR DELEVERAGING AND FUTURE GROWTH CONSERVATIVE RAPID DELEVERAGING EXPECTED STRONG LIQUIDITY HIGH FREE CASH FLOW LEVERAGE ▪ Ample pro forma ▪ Conservative leverage ▪ Enlarged business liquidity of ~$655M : le

  15. Slide 15: Managing Our Integration

    M A N A G I N G O U R I N T E G R AT I O N W H AT W E P L A N T O D O HOW WE WILL DO IT • Retain the best talent from each of Quanex and Tyman to 1• 100-day integration review ensure a “best-in-class” offering 2• Development of detailed integration plan • Continue synergy assessment to consider addi

  16. Slide 16: Transaction Process and Path to Close

    T R A N S A C T I O N P R O C E S S A N D PAT H T O C L O S E P R O C E S S A N D A P P R O VA L S • Implemented via UK Scheme of Arrangement (1) • Irrevocable undertaking from Teleios covering approximately 16.4% of issued share capital of Tyman to vote in favor of the transaction and elect for the

  17. Slide 17: Transformational Acquisition with Highly Compelling Industrial Logic

    T R A N S F O R M AT I O N A L A C Q U I S I T I O N W I T H H I G H LY COMPELLING INDUSTRIAL LOGIC 1 Creation of an approximately $2 billion(1) global engineered components supplier with leading positions 2 Highly complementary and strategic fit across products and geographies 3 Establishes signifi

  18. Slide 18: Appendix

    APPENDIX © 2024 Quanex | Q U A N E X . C O M © 2024 Quanex | Q U A N E X . C O M

  19. Slide 19: Quanex GAAP/Non-GAAP Reconciliation

    Q UA N E X G A A P/ N O N - G A A P R E C O N C I L I AT I O N (USD in thousands) (USD in thousands) Reconciliation of Twelve Months Ended Reconciliation of Twelve Months Ended Adjusted EBITDA October 31, 2023 Adjusted EBITDA margin October 31, 2023 Reconciliation Reconciliation Net income as report

  20. Slide 20: Tyman EBITDA Reconciliation

    T Y M A N E B I T D A R E C O N C I L I AT I O N (GBP in millions unless otherwise stated) Reconciliation of the Last Three Years Adjusted Twelve Months Ended Twelve Months Ended Twelve Months Ended EBITDA December 31, 2023 December 31, 2022 December 31, 2021 Reconciliation Reconciliation Reconcilia

  21. Slide 21: Tyman EBITDA Margin Reconciliation

    T Y M A N E B I T D A M A R G I N R E C O N C I L I AT I O N (GBP in millions unless otherwise stated) Reconciliation of the Last Three Years Adjusted EBITDA Twelve Months Ended Twelve Months Ended Twelve Months Ended Margin December 31, 2023 December 31, 2022 December 31, 2021 Reconciliation Reconc

  22. Slide 22: Quantified Financial Benefits Statement

    Q UA N T I F I E D F I N A N C I A L B E N E F I T S S TAT E M E N T This document contains statements of estimated cost savings and synergies (together, the “Quantified Financial Benefits Statement”) arising from the Acquisition. A copy of the Quantified Financial Benefits Statement is set out belo

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