Ply Gem — Debt Investor Presentation (May 2008)
35 slides from Ply Gem's debt investor presentation, May 12, 2008
Slide 1: May 2008 Management Presentation
1 May 2008 Management Presentation
Slide 2: Disclaimer
Disclaimer These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual re
Slide 3: Agenda
Agenda • Agenda • Pl Gem Company Overview Market Update • Amendment Overview • Closing Remarks and Public Q&A • Private Supplement • Closing Remarks and Private Q&A Bob Louzan UBS Investment Bank Gary Robinette President and CEO, Ply Gem Holdings, Inc. Shawn Poe Chief Financial Officer, Ply Gem Hold
Slide 4: Management Presenters
Gary Robinette President and Chief Executive Officer Shawn Poe Chief Financial Officer and Treasurer • CEO since October 2006 • Prior to Ply Gem, Mr. Robinette served as Executive Vice President and COO at Stock Building Supply since 1998 • Mr. Robinette served as President of Erb-Lumber Inc, a Wose
Slide 5: Company Overview
5 Company Overview
Slide 6: Company Overview
• Ply Gem is one of the largest manufacturers of exterior building and home improvement products in the U.S. – Ply Gem Industries, Inc. was incorporated in 1987 – Approximately $1.4 billion in sales in 2007 – Approximately 6,000 associates – 22 manufacturing facilities with relentless focus on low-c
Slide 7: Aesthetic Exterior Solutions
Aesthetic Exterior Solutions
Slide 8: Ply Gem Window and Siding Groups
C9 Ply GEM WINDOW GROUP _7 fl. SB pamior few QUE (9 PLy GEM SIDING GROUP _7 A a y MASTIC ALCOA \arirorm NAPCO Seemiemete cellwood. [FY -E PLy GEM
Slide 9: Customer Mix and Product Mix
Customer Mix Product Mix Well Balanced and Diverse Mix
Slide 10: National Footprint
National Footprint • 22 manufacturing locations • Fast turnaround • On-time delivery
Slide 11: Vinyl Windows Trends
• Vinyl windows continue to take market share predominately from wood windows – Ply Gem holds a leading position in vinyl windows • Large retail lumberyards and national builders are reducing the number of window suppliers but require their window suppliers to support them on a broader geographical
Slide 12: Window Product Lines
—_—_—-___+ > Freedom MIRA ae 800 P " AT Rs N 6 iT \ ANY ~> Freedom erica Jefferson" gg9 300/400 \ 4} Jetterson ‘By PLYGEM 100/200 \ TwinSeal %, \ + 1100 ‘ 4800 Top LineClad DH Mid-Range Clad DH Mid-Range Wood DH Classic Top Line Vinyl SH/DH 4700 ie Mid-Range Vinyl SH/DH ] x Entry Level Vinyl SH 5 As
Slide 13: Siding - Key Market Trends
• #2 vinyl siding manufacturer in North America • #1 Aluminum accessories manufacturer in North America • #2 Designer accents manufacturer in North America • End market balance with 52% Remodeling and 48% New Construction Industry Consolidation • Top 5 manufacturers have approximately an 88% share •
Slide 14: Siding, Fence & Rail Platform Sales
Sales by Product Category Sales by End Market Ply Gem’s Siding, Fence, & Rail Platform
Slide 15: Market Update
15 15 Market Update
Slide 16: 2008 Market Update
2008 Market Update Single Family Housing Starts • 2007 single family housing starts decreased 29.6% or starts of 1,039 • 2008 expected to decrease by 33.7% to 689 (per NAHB Forecast) Repair & Remodel Market • 2007 R & R market was estimated to be down 1.2% based on Harvard’s Joint Center for Housing
Slide 17: Housing Market Update
Annual Single Family Housing Starts (1959 - 2009) 1,100 1,400 1,700 Year Housing Market Update • NAHB single family housing start forecasts have been progressively softer in recent months • Single family housing starts were down (14.2%) in 2006 and (29.6%) in
Slide 18: Market Conditions / Challenges
Market Conditions / Challenges
Slide 19: Ply Gem Continues to Outperform the Housing Market
Ply Gem Continues to Outperform the Housing Market 2005 2006 2007 Single Family Starts 1,719 1,474 1,039 Growth Rate 7.1% -14.2% -29.6% Ply Gem Sales 1 $1,548.2 $1,575.3 $1,339.3 Growth Rate 2 5.9% 2.5% -14.1% • Ply Gem’s relatively strong performance in a weak housing market is largely due to – Inc
Slide 20: Recent Financial Performance
20 20 Recent Financial Performance
Slide 21: Q1'08 Results Highlights
* Q1'08 Net Sales were down 10.1% driven by end user market conditions = Single family housing starts down 43.8% — R&R market down estimated to be down approximately 10% — Split between New Construction and Repair & Remodel at approximately 58% and 42%, respectively, in ine with expectations — Marke
Slide 22: Q1 Actual Financial Comparison
Actual Actual mm) Qi os Qi ur Variance Siding, Fence, Rail, & Decking $1474 seas ($225) Pacific Windows 168 a0 168 Windows 927 1158 23.1) Total Ply Gem Ey E53 52) Gross Profit! 332 524 19.2) %of Sales 13.0% 18.4% Reported EBITDA 17 184 Adjustment: Sponsor Mgt. Fee o4 o4 ‘Adjustment: Restructuring Ex
Slide 23: Adjusted EBITDA Bridge
¢s000's) Prior Year Comments: Adjusted EBITDA Ss 2g Change. Volume (excluding Pacific Windows) (163) 1 annually adjusted SFHE down 43.8% Price ¢ Mic 7.0 Increases in our Vinyl and fence products due to the Increased PVC resin, as well as rretal increases, Price Increases in our Canadian Window busin
Slide 24: Recent Company Initiatives
Recent Company Initiatives • Revenue enhancement – Major market share wins and gains – 2008 Forecast: $99.7mm, Annualized: $180.3mm • Cost management initiatives taken place from 2006 - 2007 – Headcount has been reduced by approximately 30% from Q1 ‘06 to Q1 ‘08. • Cost cuts identified and being put
Slide 25: Amendment Overview
25 25 Amendment Overview
Slide 26: Amendment Terms
• CI Capital Partners will be contributing greater of (i) $20 million of cash equity or (ii) $75 million less Consenting Revolving Lender Commitments • Pricing will increase to L+475 bps on both the Term Loan and the Revolver • LIBOR floor of 3.25% added to both the Revolver and Term Loan • An amend
Slide 27: Capitalization and Credit Statistics
Capitalization and Credit Statistics
Slide 28: Amendment Timeline
May 2008 outwit Fs T2 3 46678 810 14-12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 28 29 30 31 Date Event May 12,2008 © Amendment Presentation © Amendment Document will be posted May 22,2008 «Response requested by 12:00pm e.st. noon - Pty GEM
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Slide 31: Supplemental Information
31 Supplemental Information
Slide 32: Computation of Adjusted EBITDA
Computation of Adjusted EBITDA
Slide 33: Ply Gem Holdings Total Debt
Ply Gem Holdings, Inc. and Subs ies: Ply Gem Holdings, Inc. (Dollars in millions) Current maturities of long-term debt Long-term debt, less current maturities Total Debt -E Pty GEM
Slide 34: Computation of Total Senior Debt
34 Computation of Total Senior Debt
Slide 35: Computation of Cash Interest Expense
Computation of Cash Interest Expense
PLY GEM Holdings — Debt Investor Presentation (May 2008) on 6ix