Masterbrand, Inc. · NYSE:MBC
Masterbrand — BofA Securities Leveraged Finance Conference 2024
25 slides from Masterbrand's conference presentation, Dec 3, 2024
Slide 1: BofA Securities Leveraged Finance Conference 2024
BofA Securities Leveraged Finance Conference 2024 December 3, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation, other than purely historical information, including, but not limited to estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those sta
Slide 3: MasterBrand Overview
MasterBrand Overview #1 North American residential cabinet manufacturer Key brands 1 Includes Supreme acquisition 2 Excludes Supreme acquisition 3 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP metrics. Please see Appendix for definitions and corresponding reconciliations to historical GAAP
Slide 4: The MasterBrand Story
The MasterBrand Story Building great experiences together O U R P U R P O S E How? Tools that enable us to: Lead through Lean Engage teams and foster problem-solving Align to Grow Deliver on the unique needs of each customer Tech Enabled Drive profitable growth and transform the way we work through
Slide 5: CSR Highlights
CSR HIGHLIGHTS At MasterBrand, we have built a foundation of doing what is right for people and the environment. Our sustainability journey is ongoing, and as our associates continue to innovate, inspire and lead by example, we find more ‘opportunities to positively impact our industry and stakehold
Slide 6: Multi-Branded Strategy Across Price Points and Products
6 Multi-Branded Strategy Across Price Points and Products ~51% ~40% ~100% ~30% ~60% ~19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MasterBrand Competitor A Competitor B Stock / In-Stock Semi-Custom Custom / Premium Price point (per cabinet) <$350 >$750 MasterBrand portfolio by type and key brands
Slide 7: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
+ + + Integrated Manufacturing Network & Strong Track Record of Continuous Improvement Footprint optimization Proven tools of our business system, enable product portfolio simplification Continuous improvement culture Efficient capital spending profile 7 MasterBrand’s strategic transformation in
Slide 8: Align to Grow
Stock MANUFACTURING FLEXIBILITY 1 Quarter facility transition from Made-to-Order to Stock 1 Facility absorbed FACILITY RATIONALIZATION 2 Facilities closed Plant A Plant B Consolidated manufacturing sites Plant C Plant D Plant E Plant F 5 Networks PLANT NETWORKS 20 Independent Plants COMMON CONSTRUCT
Slide 9: Lead Through Lean
Lead Through Lean 9 2021 2022 - 2024 2025 and beyond Best Place to Work Rewards & Recognition Talent Strategy Associate Engagement Lean Foundational Tools Four years into our journey, we’re progressing toward our vision of being a best place to work ASSOCIATE ENGAGEMENT REWARDS & RECOGNITION LEAN FO
Slide 10: Tech Enabled: Leveraging Data and Analytics to Unlock Shareholder Value
Simplify and Automate Backoffice Processes Enhance Customer Experience Digitize our Plants Leveraging Data and Analytics to Unlock Shareholder Value 10
Slide 11: Supreme Cabinetry Brands Acquisition
Supreme Cabinetry Brands Acquisition Completed July 2024 11 Enhances MasterBrand’s Portfolio with Complementary Products in Resilient and Attractive Categories Extends Diversity of Channel Distribution to Reach More Consumers Drives Augmented Financial Profile and Value Creation via Highly Achievabl
Slide 12: Q3 2024 Highlights
Q3 2024 Highlights • Net sales increased 6% driven by 9% growth from our Supreme acquisition, partially offset by a 3% decline in organic net sales due to lower net average selling price (ASP). The impact of volume and foreign exchange were roughly flat year-on-year. • Net income decreased 51%, prim
Slide 13: Credit Rating and Debt Profile
Credit Rating and Debt Profile Rating Agency S&P Moody’s Fitch Corporate rating BB Ba2 BB+ Security rating (Unsecured debt) BB Ba3 BB+ Outlook Stable Stable Stable 1) As of June 17, 2024 $- $250 $500 $750 $1,000 20 24 20 25 20 26 20 27 20 28 20 29 20 30 20 31 20 32 20 33 20 34 Revolving Credit Facil
Slide 14: Leverage Ratios and Liquidity
© MasterBrand Cabinets Leverage Ratios and Liquidity Flexible cost structure, low capex and high Free Cash Flow1 conversion supports the ability to drive cash flow generation across the cycles and general market conditions Leverage Ratios ($ in millions) Q3 2024 Q3 2023 Net Income (TTM) $148.0 $161.
Slide 15: Near-Term Expectations: Full Year 2024 Outlook
Near-Term Expectations Full Year 2024 Outlook1 • Organic net sales decline of low single-digit % and acquisition-related increase of mid single-digit % • Promotional activity and trade downs to continue at a similar pace, but impact to moderate from a y-o-y perspective • Continued growth in new cons
Slide 16: Long-Term Financial Targets
Long-Term Financial Targets Long Term Outlook1 1. Business and portfolio aligned with the customer 2. Operational Excellence will fuel margin growth 3. Flexible platform allows us to navigate any market condition Clear Path to Achieving Results 1 This outlook information was presented by the Company
Slide 17: Appendix
MasterBrand: Investor Day 2022 05 Appendix
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”) in this presentation, certain non-GAAP financial measures as defined under SEC rules have been included. It is our intent to provide
Slide 19: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations 19Note: See tick legend on following page December 29, December 27, December 26, December 25, December 31, (In millions, except percentages) 2019 2020 2021 2022 2023 Reconciliation of Net Income to EBITDA to ADJUSTED Net income (GAAP) 100.7$ 145.7$ 182.6$ 155.4$ 18
Slide 20: Full Year Non-GAAP Reconciliations Tick Legend
Full Year Non-GAAP Reconciliations Tick Legend 20 [1] Separation costs represent one-time costs incurred directly by MasterBrand related to the separation from Fortune Brands. [2] Restructuring charges are nonrecurring costs incurred to implement significant cost reduction initiatives and may consis
Slide 21: Q3 2024 Non-GAAP Reconciliations
Q3 2024 Non-GAAP Reconciliations 21 Note: See tick legend on following page
Slide 22: Q3 2024 Non-GAAP Reconciliations Tick Legend
Q3 2024 Non-GAAP Reconciliations Tick Legend 22 [1] Separation costs represent one-time costs incurred directly by MasterBrand related to the separation from Fortune Brands. [2] Restructuring charges are nonrecurring costs incurred to implement significant cost reduction initiatives and may consist
Slide 23: Q3 2024 Non-GAAP Reconciliations
Q3 2024 Non-GAAP Reconciliations 23 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 Weeks Ended September 29, September 24, (U.S. Dollars presented in millions) 2024 2023 OPERATING ACTIVITIES Net income ..................................................................................
Slide 24: Q3 2024 Non-GAAP Reconciliations
Q3 2024 Non-GAAP Reconciliations 24
Slide 25: Prior Year to Current Year Net Sales Walk
Prior Year to Current Year Net Sales Walk 25
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