Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Important Information
Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending July 29, 202
Slide 3: Dycom Overview
Dycom Overview • Leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States • Intensely focused on the telecommunications market providing our customers with critical network infrastructure that is fundamental to ec
Slide 4: Financial Overview
Financial Overview Fiscal 2023 Annual Operating Performance • Contract Revenues of $3.808 billion • Non-GAAP Adjusted EBITDA of $366.1 million, or 9.6% of contract revenues Backlog and Headcount as of April 29, 2023 (Q1 2024) • Total Backlog of $6.316 billion • Employee headcount of 15,375 Liquidity
Slide 5: Strong Secular Trend
Strong Secular Trend 5 Data usage and download/upload speeds continue to increase as consumer behavior moves to streaming, video conferencing, and connected devices Source: OpenVault Broadband Industry Reports • The monthly weighted average data consumed by subscribers in 1Q-23 was 560.5 GB, up 9% f
Slide 6: Industry Update
Industry Update The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry • Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country • High-capacity fiber networks
Slide 7: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market Dycom’s extensive market presence and complete lifecycle services offering have allowed the Company to be at the forefront of evolving industry opportunities • Telephone companies are deploying FTTH to enable gigabit high speed connections and, increasi
Slide 8: Strong Tailwinds For Fiber Deployments
Strong Tailwinds For Fiber Deployments 8 HHs Passed with Telco Fiber • Increasing consumer demand for bandwidth continues to drive fiber deployments • New fiber passings estimate of ~7.5 million for 2023 compared to ~6.6 million in 2022, representing the fastest year for fiber deployment on record i
Slide 9: 5G Deployment
5G Deployment 9 Over $80 billion in 5G Spectrum Investments • Wireless carriers are increasing 4G capacity and augmenting 4G with new 5G technologies creating growth opportunities in the near to intermediate term • Emerging wireless technologies driving significant wireline deployments • Wireline de
Slide 10: Local Credibility, National Capability
Local Credibility, National Capability Nationwide footprint with 15,375 employees as of April 29, 2023 10 Operating Subsidiaries
Slide 11: Durable Customer Relationships
Durable Customer Relationships 11 1
Slide 12: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 12 FY 2023 Revenue by Contract Type Backlog2 • Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years • Generally multiple agreements maintained with each customer • Master Service Agreements (MSA’s) are m
Slide 13: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 13 Prudent approach to capital allocation: • $617 million invested in share repurchases • $582 million invested in business acquisitions • $1,287 million in CapEx, net of disposals Robust cash flow generation and prudent capital allocation provide strong foun
Slide 14: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth • Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions • Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and te
Slide 15: Committed to Sustainability
Committed to Sustainability 15 People Safety Environment Employees are our most important resource and are at the heart of everything we do. We strive every day to create the right environment for them to grow their skills, work collaboratively, and deliver our services at the highest quality to our
Slide 16: Financial Overview
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Slide 17: Annual Trends
Annual Trends @DYCOM Contract Revenues Non-GAAP Adjusted EBITDA $3,208 2 sane $3,199 $3331 2 2 2 5330 hand = = $310 sain o * saa Fy2019 FY 2000 Fy2021 Fy2002 FY 2023 FY2019 Fy 2020 Fy 2001 Fy 2022 £¥2023 mE Non-GAAP Adjusted EBITDA =teeNon-GAAP Adjusted EBITDA % Non-GAAP Organic Growth (Decline) %?
Slide 18: Quarterly Trends
Quarterly Trends Contract Revenues Non-GAAP Adjusted EBITDA son SHOR $1,045 o $854 $a%6 Lata I f l | 22022 032022 042022 a12023 @22023 032023 042023 a1 2024 suis sua ns $ Millions 22022 032022 942022 12023 922023 032023 042023 Qi 2024 mmm Non-GAAP Adjusted EBITDA —=e==Non-GAAP Adjusted EBITDA % Non-
Slide 19: Debt and Liquidity Overview
Debt and Liquidity Overview Debt maturity profile and liquidity provide financial flexibility 19 • Strong liquidity of $673.9 million at Q1 2024 • Sound credit metrics and no near-term debt maturities • Capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&
Slide 20: Cash Flow Overview
Cash Flow Overview 20 • Operating cash flow used to support strong organic growth during Q1 2024 • Repurchased 225,000 common shares for $20.3 million at an average price of $90.21 per share during Q1 2024 • Total DSOs of 106 days improved 2 days sequentially Operating Cash Flow
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS
Slide 22: Outlook slide used on May 24, 2023 conference call
22 This slide was used on May 24, 2023 in connection with the Company’s conference call for its fiscal 2024 first quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date origin
Slide 23: Notes
Notes 1. On October 3, 2022, Lumen divested its ILEC (incumbent local exchange carrier) business in 20 states (the “20-State ILEC Business”) to Brightspeed. The Company continues to serve both Lumen and Brightspeed in connection with various work, including the 20-State ILEC Business. 2. The Company
Slide 24: Dycom - The people connecting America
DYCOM The people connecting America®