Slide 1: Company Overview, Evolution and Outlook - Fall 2022 Investor Presentation
Company Overview Evolution and Outlook Fall 2022 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified
Slide 3: Eagle Materials Company Overview
Eagle Materials Company Overview Founded in 1963 as a subsidiary of Centex Corp. Revenue (FYE March 31, $ in millions) $1,862 • In 2004, Centex spun off Centex Construction $1,404 $1,623 Products which became Eagle Materials Inc. (NYSE: EXP) Two primary business lines: Portland cement and gypsum wal
Slide 4: Who We Are: We Manufacture Necessities Not Luxuries
Who We Are We Manufacture Necessities Not Luxuries • Our two major product lines are Portland Operating Earnings + DD&A by Segment cement (“Heavy” materials) and gypsum for FYE Mar-22 ($ in millions) wallboard (“Light” materials), today proportionately 55/45 Gypsum Wallboard $284 • Both building pro
Slide 5: Eagle Materials: Financial Evolution
Eagle Materials: Financial Evolution In Millions, Annual at March Year-End 2011 (Trough) 2022 Revenue From a balanced sales Heavy (Cement + Con/Agg) $270 $1,184 Light (Wallboard + Paperboard) 309 886 contribution a decade ago to a greater heavy 579 2,070 contribution today Operating Earnings + DD&A
Slide 6: Comparative on Building Products EBITDA Margins
Comparative on Building Products EBITDA Margins Last Twelve Months (Reported) 32.1% 28.0% 23.9% 22.7% 19.2% 16.9% 13.6% 12.4% 11.7% Specialty Distribution Lumber-Related Residential Non-Residential Arcosa Summit Materials Vulcan Materials Martin Marietta Eagle Materials Distribution Manufacturing Ma
Slide 7: End-Use Applications
End-Use Applications US Building Code and Specification Driven Cement is the essential binding material in concrete which has • Unrivaled strength, durability, longevity and resilience • Energy efficiency • Doesn’t burn, rust or rot • Malleable at the jobsite • Few practical cement substitutes, and
Slide 8: Cement US Heartland System
Cement US Heartland System Strategic Geographic Focus, Away from US Coastlines (Imports) Plants and Capacities1 (ST2 thousands) Texas Lehigh (50%) 720 Illinois Cement 1,100 Mountain Cement 800 Nevada Cement 550 Central Plains Kansas City 1,300 Central Plains Tulsa 900 Fairborn Cement 980 Kosmos Ceme
Slide 9: US Cement Consumption and Clinker Capacity
US Cement Consumption and Clinker Capacity Million Metric Tons 120,000 US Clinker Capacity 100,000 New capacity — and 80,000 capacity expansion — is constrained due to regulation (NESHAP) 60,000 Imports will be required 40,000 again to meet demand 20,000 0 2016 2017 2018 2019 2020 2021 Public Reside
Slide 10: Gypsum Wallboard and Paperboard System
Gypsum Wallboard and Paperboard System US Sunbelt Strategic Geographic Focus West of Mississippi River Natural Gypsum Gypsum, CO East of Mississippi River 700 MMSF Synthetic Gypsum Duke, OK 1,300 MMSF Albuquerque, NM Georgetown, SC 425 MMSF 900 MMSF Bernalillo, NM Lawton, OK 550 MMSF 390,000 tons pa
Slide 11: Gypsum Wallboard: US Demand is Closely Linked with Housing
Gypsum Wallboard US Demand is Closely Linked with Housing 1400 48 New Home Sales (000) 1200 42 Wallboard Shipments (BSF) 36 1000 30 800 24 600 18 400 12 200 6 0 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 Source: Census Bureau, Gypsum Association 11
Slide 12: Eagle Materials Strategy Since 2010
Eagle Materials Strategy Since 2010 Strategy and Investment Directions Results ✓ Tripled Cement capacity through Heavy Side acquisitions Growth Cement and ✓ Achieved scale materiality • Cement Con/Agg ✓ Largest US-only player • Aggregates ✓ Bolt-on aggregates acquisitions ✓ Remained profitable each
Slide 13: Macroeconomic Fundamentals
Macroeconomic Fundamentals Future Determinants of Profitability Favorable for Eagle Businesses Heavy Side Light Side Winning US Heartland Strategy, Reasons Why Future Cycles May Different Than International Be More Favorable Than Past + Supply + Demand + Substitutes + Structure + Sustainability + Im
Slide 14: Eagle Materials Capital Allocation
Eagle Materials Capital Allocation $1.9 Billion Over the Last Three Years Capital Allocation Priorities Remain Unchanged — Investments in Profitable Strategic Growth Opportunities — Investments to Maintain and Improve Existing Assets — Return of Cash to Shareholders through Share Repurchases and Div
Slide 15: Well-Managed Capital Structure
Well-Managed Capital Structure Net Debt/Adj. EBITDA Below 2x (with Exception of Temporary Increase For the Kosmos Acquisition) Kosmos Acquisition 3.1x Plan was implemented to quickly reduce leverage post-acquisition 1.5x 1.5x 1.5x 1.4x 1.4x 1.3x 1.3x 1.3x FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 16: Environmental Agenda Summary and Goals Roadmap
Environmental Agenda Summary and Goals Roadmap 16
Slide 17: Environmental: Not Only Compliance But Improvement
Environmental Not Only Compliance But Improvement Notwithstanding our growth in cement (growing our asset base 3x over recent years) … … we have continued to make significant progress in reducing our per unit CO2 emissions – on our journey to carbon neutrality for the value chain Note: Eagle Materia
Slide 18: First Quarter Fiscal 2023 Results
First Quarter Fiscal 2023 Results
Slide 19: First Quarter Fiscal 2023 Financial Highlights
First Quarter Fiscal 2023 Financial Highlights Delivered record results Revenue Diluted EPS In millions $561 $2.75 $476 18% $2.25 22% 2022 2023 2022 2023 FISCAL Q1 FISCAL Q1 INCREASE DRIVEN BY: INCREASE REFLECTS: — Higher Cement and Wallboard sales prices — Robust price improvement across all produc
Slide 20: First Quarter Fiscal 2023 Strategic Highlights
First Quarter Fiscal 2023 Strategic Highlights Executed on market opportunities — Pricing actions helped mitigate increased energy costs — Expanded footprint with acquisition of concrete and aggregates business in northern Colorado, already contributing this quarter Returned $119 million to sharehol
Slide 21: Appendix
ition Appendix
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions, Fiscal Year Ending March 31 FY 20 FY 21 FY 22 We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Net Earnings, as reported $ 71 $ 339 $ 374 Adjusted EBITDA to provide more consistent comparison of operating performance
Slide 23: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA $ in millions, Fiscal Year Ending March 31 GAAP does not define “Net Debt” and it should FY 20 FY 21 FY 22 not be considered as an alternative to cash flow Total debt, excluding debt issuance costs $ 1,575 $ 1,015 $ 950 or liquidity measures defined by G