Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Investor Day (November 2021)
85 slides from Gibraltar Industries's investor day presentation, Nov 19, 2021
Slide 1: Gibraltar Investor Day: Creating Meaningful Value in High Growth Markets
GIBRALTAR INVESTOR DAY CREATING MEANINGFUL VALUE IN HIGH GROWTH MARKETS November 17, 2021
Slide 2: Safe Harbor Statements: Forward-Looking Statements
SAFE HARBOR STATEMENTS 2 Forward-Looking Statements Certain information set forth in this presentation, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current e
Slide 3: Safe Harbor Statements: Adjusted Financial Measures
SAFE HARBOR STATEMENTS 3 Adjusted Financial Measures To supplement Gibraltar’s financial information presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this presentation, including adjusted operating margin, adjusted earnings per share (Adjusted EPS) and adjus
Slide 4: The Leadership Team
THE LEADERSHIP TEAM 4 Tim Murphy Chief Financial Officer Pat Burns Chief Operating Officer Betsy Jensen Chief HR Officer Katie Bolanowski General Counsel Chris Lok Chief Digital & IT Officer Debbie Murphy Chief Marketing Officer Mark Dunson Group President Agtech Gene Laminack Vice President / GM Ai
Slide 5: Gibraltar 2020-2025 Growth Plan
GIBRALTAR 2020- 2025 GROWTH PLAN *Refer to appendix in this presentation for historical adjusted measures reconciliations. Accelerate execution and scale across 4 segments M & A incremental to plan OPPORTUNITY Strong foundation with leadership positions gaining momentum in good end markets POSITION
Slide 6: Significant Progress in Transforming the Business
Residential Products Industrial & Infrastructure Products SIGNIFICANT PROGRESS IN TRANSFORMING THE BUSINESS 2014 2020 Infrastructure Residential RenewablesAgTech Invested ~$500m Of Capital To Build Agtech And Renewables PORTFOLIO OPTIMIZATION 3 PILLAR FOUNDATION Business System Organization Portfoli
Slide 7: Results of 2015-2020 Transformation
RESULTS OF 2015 – 2020 TRANSFORMATION 7*Refer to appendix in the earnings news release for historical adjusted measures reconciliations. REVENUE PROFITABILITY 0% 3% 6% 9% 12% 15% 7.4% 10.2% 11.3% 14.0% +390 bps Adj. OM* +380 bps Adj. EBITDA* $0 $200 $400 $600 $800 $1,000 $1,200 2015 2020 Residential
Slide 8: Building the Business System Engine and Scale to Support Our Future
BUILDING THE BUSINESS SYSTEM ENGINE AND SCALE TO SUPPORT OUR FUTURE 8 5 companies Renewables Agtech 9 companies Renewables & Conservation 2019 2020 2021 Built new leadership team 2 acquisitions + integrated 3 companies Business system – 80/20 & Lean Launched new brand Strong growth environment Built
Slide 9: Building the Business System Engine and Scale to Support Our Future
BUILDING THE BUSINESS SYSTEM ENGINE AND SCALE TO SUPPORT OUR FUTURE 9 5 companies 2 companies Building Accessories Mail Solutions 9 companies Residential 2019 2020 2021 2 companies Home Improvement Added new leadership Integrated Management Team Business system - 80/20 & Lean Added new leadership 1
Slide 10: Strong Positioning in Markets
STRONG POSITIONING IN MARKETS 10 Renewables Residential Agtech Infrastructure Industry Leadership Technology / Brand Project Mgmt & Operations “The Sauce” Portfolio - breadth & depth Field operations - 700+ projects/yr Scale - speed - agility for customers National presence in major regions Portfoli
Slide 11: Scale and Execute 2025
SCALE AND EXECUTE 2025 11 Foundation is strong - 3 pillars Positioned to scale Sustainable solid growth markets M&A incremental to plan Transformation 80/20 acceleration + Q-T-C Digitization investment - $10M+ New products in key segments Corporate Social Responsibility Execution Revenue 11% - 12% C
Slide 12: Gibraltar Business Plan 2025
12*Refer to appendix in this presentation for historical adjusted measures reconciliations. Accelerating improvement in Renewables & Agtech Residential recovery via price cost alignment 80/20 execution & digitization drive operating performance Terrasmart + good solar market growth Solid Agtech & Re
Slide 13: M&A Incremental to the Plan
M&A INCREMENTAL TO THE PLAN 13 Renewables Agtech Residential ~ $2B Available To Deploy Produce Cannabis VC VC VC Focus 1. Channel expansion 2. Grower operating efficiency 3. Performance O&M - Recurring $ Ground Mount Racking Canopy Focus 1. Build AI / software footprint 2. Performance O&M / Recurrin
Slide 14: *Refer to appendix in the earnings news release for adjusted measures reconciliations. 14
*Refer to appendix in the earnings news release for adjusted measures reconciliations. 14
Slide 15: Summary
SUMMARY 1515 OPPORTUNITY POSITION PLAN EXECUTION Accelerate execution and scale across 4 segments M & A incremental to plan Strong foundation with leadership positions gaining momentum in attractive end markets Revenue 11% - 12% CAGR Adj. Operating margin grows ~ 270 bps Adj. EPS improves 2X ~ $750M
Slide 16: Gibraltar's Renewable Energy Business
GIBRALTAR’S RENEWABLE ENERGY BUSINESS As a provider of leading solar technology and smart solutions, we help our partners deliver a more powerful future for renewable energy
Slide 17: Historical Performance and Future Growth
HISTORICAL PERFORMANCE AND FUTURE GROWTH Addressable solar market growing at double-digit rate, reaches $8B by 2025 OPPORTUNITY Gibraltar uniquely positioned as broadest and deepest player in addressable markets POSITION Our plan grows sales to ~ $700M and adjusted operating profit margin to ~ 15% P
Slide 18: Development of a Solar Project
3 DEVELOPMENT OF A SOLAR PROJECT Operation & MaintenanceProcurement & ConstructionDesign & Feasibility FINANCING DESIGN SOFTWARE FEASIBILITY & ENGINEERING SERVICES PERMITTING DRONES / ROBOTICS REPOWERING ASSET MANAGEMENT SOFTWARE FIELD SERVICES POWER DISTRIBUTION INVERTER AC EBOS PANEL RACKING DC EB
Slide 19: Fast Growing Addressable Market
FAST GROWING ADDRESSABLE MARKET 4 2020 Gibraltar addressable market $4.8B Segment 2020 2025 CAGR % ’20 – ’25 Design Software $0.1 $0.2 8% to 12% Racking & Field Installation $2.9 $4.1 6% to 9% Electrical Balance of System (eBOS) $0.7 $1.0 6% to 9% Operations & Maintenance $1.1 $2.7 15% to 20% $4.8B
Slide 20: Gibraltar's Comprehensive Solar Growth Engine
GIBRALTAR’S COMPREHENSIVE SOLAR GROWTH ENGINE 5 1. Fixed Tilt 2. Tracker Design Infrastructure Racking Systems Canopy & Roof Systems Foundation Technology Electrical Systems Design (SIFT) Optimization Development Services API Services Field Operations O & M Services Tracker Management Remote Managem
Slide 21: ee | GIBRALTA .
ee | GIBRALTA .
Slide 22: Partnership Powers Progress
PARTNERSHIP POWERS PROGRESS 7 Customers served (2020) 200
Slide 23: Terrasmart Strategic Imperatives
TERRASMART STRATEGIC IMPERATIVES *Refer to appendix in this presentation for historical adjusted measures reconciliations. Revenue & Adjusted Operating Margin* Grow 4X on penetration, portfolio expansion TRACKER Grow 2X in core utility space, innovate into C&I eBOS Grow 1.5X in C&I surface/garage, n
Slide 24: Terrasmart Tracker: The Basics
TERRASMART TRACKER – THE BASICS 9 Mechanical Adjustability for Difficult Terrain Sensors, Controls and Cloud • Real time notifications • Mesh networking and redundancy • Predictive M/L and A/I • Diffused light tracking & uneven terrain backtracking • Cloud weather integration CONTROL PLATFORM ATTRIB
Slide 25: Terrasmart Tracker Growth: 4X
TERRASMART TRACKER GROWTH: 4X 10 Growth Plan • Drive penetration gains in fast growing C&I and Utility markets • Accelerate customer order momentum and increase customer project size • Expand portfolio to 1P tracker designed for both driven-pile and screw foundations • Implement control system enhan
Slide 26: Terrasmart Field Operations
TERRASMART FIELD OPERATIONS PLAN 11 • 700 projects supported • 500 projects installed for ~175 customers • 800 MWs installed 2020 FIELD RESULTS • Digitize processes across profit pool • Automate and streamline on-site installation tasks • Scale and flexibility through optimized field hiring and part
Slide 27: Terrasmart eBOS: The Basics
TERRASMART EBOS – THE BASICS 12 Central inverter AC trunkDC trunk Wire Solutions Combiner Boxes Example Project Name: Robins AFB Location: Macon, GA Size: 128MW eBOS 755 Combiner Boxes 11.7K Harnesses 1.85M Feet of Wire … … … The grid Combiner box
Slide 28: eBOS: Grow 2X in Core Utility Space, Innovate into C&I
EBOS: GROW 2X IN CORE UTILITY SPACE, INNOVATE INTO C&I 13 Growth Plan • Launch eBOS solution for C&I segment • Field-fabricated solution from electrical contractors serves 90%+ of C&I installations - $100M opportunity • Develop pre-fab wire + box solution to reduce install time and improve developer
Slide 29: Summary
SUMMARY 14 OPPORTUNITY Market growing double-digits to $8B across construction phases from beginning to end POSITION End-to-end breadth and portfolio depth uniquely positioned to maximize ROI for any project PLAN Our plan grows sales to ~ $700M and adjusted operating profit margin to ~ 15% EXECUTION
Slide 30: Gibraltar's Agtech Business
GIBRALTAR’S AGTECH BUSINESS Trusted Agtech experts partnering to grow a prosperous and sustainable world
Slide 31: Historical Performance and Future Growth
HISTORICAL PERFORMANCE AND FUTURE GROWTH *Refer to appendix in this presentation for historical adjusted measures reconciliations. Agricultural transformation to high-tech controlled environment growing – $1.6B serviced market growing at 9%+ CAGR OPPORTUNITY N. American leader with broad portfolio a
Slide 32: ee | GIBRALTA
ee | GIBRALTA
Slide 33: What Is CEA?
WHAT IS CEA? 4 Controlled Environmental Agriculture (CEA) An advanced and intensive form of (hydroponically-based) agriculture Plants grow within a controlled environment to optimize horticultural practices CEA techniques demand sound knowledge of chemistry, horticulture, engineering, plant physiolo
Slide 34: Agtech Market and Drivers
AGTECH MARKET AND DRIVERS 5 New build growth thru 2025 9% CAGR Acres of potential development in the United States 17-20K Total annual CEA serviceable North American market $1.6B Acres hi-tech growing in North America - 25% total ~5,200 Fresh and plant-based foods are driving demand for year-round,
Slide 35: Produce Product Innovation Is Enabled by CEA
PRODUCE PRODUCT INNOVATION IS ENABLED BY CEA ConsumersRetailersGrowers Seed Breeders 6
Slide 36: "Grow Factory" Innovation Drives CEA ROI
7 “GROW FACTORY” INNOVATION DRIVES CEA ROI Water use reduction vs. field grown Up to 90% Less water and fertilizer use from water treatment 25% Electricity reduction from LED lights and less heat load 44% Yield increase / year from lighting, extend grow by 52 weeks 30-40% Yield Has Improved ~75% Ove
Slide 37: $4.6B Value Chain for CEA and Processing Solutions
$4.6B VALUE CHAIN FOR CEA AND PROCESSING SOLUTIONS Segment TAM ($M) Design & Consultations Design Build Install / Integrate Operate Site Development Greenhouse Structure Growing Equipment Operations & Maintenance Production Analytics Processing Building & Prep Extraction Equipment Controls & Zoning
Slide 38: Gibraltar's Established Agtech Growth Engine
GIBRALTAR’S ESTABLISHED AGTECH GROWTH ENGINE 9 Category SMEs Tech Selection Specification Build 3rd Party Partners Roof system / venting Heating / cooling / dehumidification CO2 Dosing Advanced controls Screen systems Irrigation / fertigation Growing systems Lighting Internal transport Packing / pro
Slide 39: Prospiant Is a Leader Across All CEA Market Segments
PROSPIANT IS A LEADER ACROSS ALL CEA MARKET SEGMENTS 10 Produce Cannabis Commercial Institutional Research Retail Car Wash
Slide 40: Prospiant Has Decades of Experience and Strong Track Record
5,000+ customers 1,400+ CO2 and Ethanol extraction systems sold 730+ remote and onsite commissions GROWING 500+ cannabis designs and projects submitted for permitting 200+ total cannabis projects completed 200+ installer network 40+ OSHA 10/30 certified full-time project managers on staff 16 electri
Slide 41: We Serve the Leading Players in Agtech
WE SERVE THE LEADING PLAYERS IN AGTECH British Farms Hayward Residences Higher Education Cane Island Conservatory Eaton Conservatory Zoos & Public Gardens Others Research Flowers & Retail Education & Research Cannabis Vegetables & Fruits 12
Slide 42: Solidifying the Engine for Growth and Scalability
SOLIDIFYING THE ENGINE FOR GROWTH AND SCALABILITY 13 Business Structure Business System 5 Companies 8 Business Units 6+ Brands 2019 2021 People Agtech as separate platform and rebrand to Prospiant Consolidated processing manufacturing into single facility Restructured to right-size Unified operation
Slide 43: Prospiant Growth Plan
PROSPIANT GROWTH PLAN Revenue & Adjusted Operating Margin* Drive ~ $110M of growth and ~ 800 bps of margin expansion ACCELERATE VALUE CREATION Scale leading solutions position to expand position in value chain EXPAND SHARE OF WALLET Develop and diversify our high-performance team of thought leaders
Slide 44: Drive ~$110M of Growth and Margin Expansion
DRIVE ~ $110M OF GROWTH AND ~ 800 BPS OF MARGIN EXPANSION 15*Refer to appendix in this presentation for historical adjusted measures reconciliations. Supply Chain 2025P Integration 80/20 Volume 2020 Adj. Operating Margin* 6.8% ~ 800 bps improvement Cannabis 2025P Commercial Produce 2020 Revenue $209
Slide 45: Gain Share of Wallet by Scaling Leading Position
GAIN SHARE OF WALLET BY SCALING LEADING POSITION 16 Solutions Approach Drives ~ 4X Revenue Lift Per Project Modularize offering to speed engagement and execution Accelerate US footprint: people – equipment – partners Digitize design to fabrication to project execution Innovate / build technology por
Slide 46: Summary
SUMMARY 17 OPPORTUNITY Strong growth to $2.6B+ with robust investment activity POSITION Leading N. America player with broadest portfolio of products and solutions and bankability PLAN Initiatives grow sales to ~ $320M and expand margins ~ 800 bps EXECUTION Scalable / lean processes, business system
Slide 47: Gibraltar's Residential Business
GIBRALTAR’S RESIDENTIAL BUSINESS Our people, solutions, and technology advance quality of life by protecting what matters and providing peace of mind
Slide 48: Residential Business Summary
RESIDENTIAL BUSINESS SUMMARY *Refer to appendix in this presentation for historical adjusted measures reconciliations. $476 $523 $400 $500 $600 2015 2020 △ / CAGR $ M $476 $523 2% 10.8% 18.2% 740bps Addressable markets with significant and growing installed base OPPORTUNITY Gibraltar is a leader in
Slide 49: Had iu
Had iu gE | aie cl Le eet
Slide 50: Residential Building Products: Building Products
4 RESIDENTIAL BUILDING PRODUCT – BUILDING PRODUCTS ChannelsMarket DynamicsMarket Description ESSENTIAL PRODUCTS ON AND AROUND YOUR ROOF PRODUCTS Roof Trims Studs Ventilation Metal Roofing Drywall Trim MARKET VOLUMES: 140-160 MILLION SQUARES SOLD PER YEAR Age Related 56% 16% 28% New Construction Weat
Slide 51: Residential Building Products: Mail & Package
5 RESIDENTIAL BUILDING PRODUCTS – MAIL & PACKAGE ChannelsPackage DeliveryMail MULTIPLE CHANNELS END-USER SUPPORT USPS MAIL DELIVERY 141 million USPS delivery points Growth in new delivery points USPS moving to more centralized delivery points USPS REQUIREMENTS Licensing Quality program Performance c
Slide 52: Residential Building Products: Home Improvement
6 RESIDENTIAL BUILDING PRODUCTS – HOME IMPROVEMENT ChannelsMarket DynamicsMarket Description EARLY-STAGE DTC INITIATIVE HOME IMPROVEMENT Gutter protection and outdoor living products for residential and commercial applications DIFM (Do-it-for-me) driven market Growing > 10% and accelerating COMPELLI
Slide 53: Gibraltar's Residential Business Plan
GIBRALTAR’S RESIDENTIAL BUSINESS PLAN Revenue & Adjusted Operating Margin* Execution – 80/20 Productivity, Automation, Supply Chain Initiatives, Systems platform EFFICIENCY Systems and market knowledge to improve end-user access to our products and make our channel partners more efficient CHANNEL EF
Slide 54: Improve Channel Efficiency
IMPROVE CHANNEL EFFICIENCY 8 System Investment to Build a Solid Digital Foundation Increased focus on the Pro Regional offering BIG BOX RETAIL FOCUS Logistics support Distribution options (DC, Store DTC) Regional specific data provides assortment guidance SYSTEMS AND PROCESSES
Slide 55: Expand into Attractive Market Segments
EXPAND INTO ATTRACTIVE MARKET SEGMENTS 9 Costco delivers expanded customer awareness In 170 Costco warehouses today growing to over 200 in 2022 COSTCO EXPANSION Libraries: $300 million addressable public library market IT Asset Management: $120 million addressable market ELECTRONIC LOCKER SOLUTIONS
Slide 56: New Product Development
NEW PRODUCT DEVELOPMENT 10 Improved attic ventilation solution Structural attachment of clay and concrete tiles Specialty roof venting solutions FOCUS ON CONTRACTOR PERFORMANCE AND HOMEOWNER QUALITY
Slide 57: Summary
SUMMARY 1111 Addressable markets with significant and growing installed base OPPORTUNITY Gibraltar is a leader in established markets and growing in emerging markets POSITION Our plan grows sales at a ~ 6% CAGR and profits by ~ 180 bps PLAN
Slide 58: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY November 17, 2021 CREATING MEANINGFUL VALUE IN HIGH GROWTH MARKETS
Slide 59: Key Tenets and Our Commitment
Key Tenets 1. Promote and improve sustainability 2. Do what is right, in the right way, every day 3. Invest in the growth and development of our people, systems, and processes 4. Support communities where our people live, and our businesses operate 5. Be a good corporate citizen, and be environmenta
Slide 60: Our Commitment Starts with Portfolio Transformation
OUR COMMITMENT STARTS WITH PORTFOLIO TRANSFORMATION 40%+ of portfolio focused on renewable energy and optimizing the growing of food 19 GW installed across 4,600 solar fields & 250 GW optimized through engineering 2,500+ acres built with 1,000+ for large indoor controlled environment agriculture 500
Slide 61: Our Board: Diverse Set of Domain Knowledge and Skills
OUR BOARD—DIVERSE SET OF DOMAIN KNOWLEDGE AND SKILLS Diversity Summary Director Age Director Since Mark G. Barberio 58 2018 William T. Bosway 56 2019 Craig A. Hindman 66 2014 Gwendolyn G. Mizell 59 2021 William P. Montague 74 1993 Linda K. Myers 57 2020 James B. Nish 62 2015 Atlee Valentine Pope 65
Slide 62: The Board Will Evolve Further in 2022
THE BOARD WILL EVOLVE FURTHER IN 2022 2022 n Diverse (4 out of 8 directors) n Female (3 out of 8 directors) n Racially or ethnically diverse (2 out of 8 directors) 2021 Diversity 44% 33% Female 22% Ethnic n Diverse (4 out of 9 directors) n Female (3 out of 9 directors) n Racially or ethnically diver
Slide 63: Strong Alignment of Our Board and Management Team
STRONG ALIGNMENT OF OUR BOARD AND MANAGEMENT TEAM Expanded Role • Provide oversight and strategic guidance over human capital management • Monitor progress toward diversity & inclusion objectives Expanded Role • Provide oversight and strategic guidance over environmental, social governance matters •
Slide 64: Our People: First, Understand Who We Are
OUR PEOPLE – FIRST, UNDERSTAND WHO WE ARE 2020 Gibraltar Diversity Statistics* Business Gibraltar Business White 60.2% Black / African American 15.7% Hispanic / Latino 13.1% Not Specified 5.3% Asian 4.8%American Indian / Alaska Native 0.6% 2 or more races 0.3% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60%
Slide 65: Top Leaders Are Driving Diversity & Inclusion Teams
TOP 40 LEADERS ARE DRIVING DIVERSITY & INCLUSION TEAMS 1 Workplace Inclusion Culture - “hope fulfilled; ambition realized” 2 Organization Development Talent acquisition and management processes 3 Shareholders Adapting external perspectives into our investor approach 4 Customers Understanding our cus
Slide 66: Priority Assessment and Next Steps
Priority Assessment Corporate Social Responsibility (CSR) Report Employee engagement & education Drive measurable returns for stakeholders 9 Next Steps
Slide 67: Gibraltar Business Systems
GIBRALTAR BUSINESS SYSTEMS November 17, 2021 CREATING MEANINGFUL VALUE IN HIGH GROWTH MARKETS
Slide 68: Gibraltar Has Created Significant Value with Our Transformation
Total Shareholder Returns (TSR) vs Enterprise Value (EV) Growth (2014-2020) -30 -20 -10 0 10 20 30 40 50 0 1 2 3 4 5 6 A v e ra g e a n n u a l T S R , % SPX FLOW FRANKLIN ELECTRIC COLFAX GIBRALTAR (2005–13) FUEL CELL ENERGY HONEYWELL TSR: Dividend Adjusted Returns sourced from CapIQ for the period
Slide 69: Gibraltar Business System Foundation
GIBRALTAR BUSINESS SYSTEM FOUNDATION GROWTH PROFITABILITY TEAM Scope + Develop + Execute Reliability + Transactional + Operations Process + Leadership + Development FUNDAMENTAL PRINCIPLES Profit share over market share Accountability at individual level (1/n) Integrity Best practices in place of str
Slide 70: Renewables Platform Built to Accelerate and Scale
AMS Tracker Power Management Software/VPP Market Attractiveness A b il it y t o E x tr a c t V a lu e LOW MEDIUM HIGH M E D IU M H IG H Gibraltar Position eBOS Fixed Tilt Carport Design Software Rooftop Panel Civil Works Electrical Installation Inverter Mechanical Installation Sensors Energy Storage
Slide 71: Building the Business System Engine and Scale to Support Our Future
BUILDING THE BUSINESS SYSTEM ENGINE AND SCALE TO SUPPORT OUR FUTURE 5 companies 2 companies Building Accessories Mail Solutions 9 companies Residential 2019 2020 2021 2 companies Home Improvement Added new leadership Integrated management team Business system - 80/20 & Lean Added new leadership 1 ac
Slide 72: Transforming One of Our Residential Businesses
TRANSFORMING ONE OF OUR RESIDENTIAL BUSINESSES 80/20 CLS / PLS Lean Enterprise 80/20 Dynamic Kanban 80/20 In-Lining SIOP VSM / 8 Waste Reduction BEST PRACTICES 19% Revenue Growth 128% Adj. Op Income +590 bps Adj. Op Margin $4M Freight Savings 33% Reduction In Handling $3M Savings PLM / PLS $10M in P
Slide 73: Summary
SUMMARY 77 Disciplined process - where to play Best practices drive results + value Enabler to fix, build and scale Develop exceptional talent GROWTH PROFITABILITY TEAM Scope + Develop + Execute Reliability + Transactional + Operations Process + Leadership + Development FUNDAMENTAL PRINCIPLES Profit
Slide 74: Financial Model Review
FINANCIAL MODEL REVIEW November 17, 2021 CREATING MEANINGFUL VALUE IN HIGH GROWTH MARKETS
Slide 75: 2020-2025 Financial Plan
2020-2025 FINANCIAL PLAN *Refer to appendix in this presentation for historical adjusted measures reconciliations. $742 $1,033 $0 $300 $600 $900 $1,200 2015* 2020 △ / CAGR Historical Results 2 Accelerate execution and scale across 4 segments M&A incremental to plan Revenue CAGR 11% - 12% Adj. Operat
Slide 76: Plan Assumptions 2020-2025
RENEWABLES RESIDENTIAL AGTECH INFRASTRUCTURE Revenue 24% - 25% 5% - 6% 8% - 9% 5% - 6% Adj. Operating Margin ~ 240 bps ~ 180 bps ~ 820 bps ~ 300 bps Adj. EBITDA Margin ~ 240 bps ~ 160 bps ~ 680 bps ~ 230 bps PLAN ASSUMPTIONS 2020 - 2025 3
Slide 77: Revenue Assumptions 2020-2025
Renewables Agtech Panel supply challenges through 2022 Input costs remain high but stable in 2022 Industry growth will re-accelerate in 2023 ITC benefits (net) similar to current state CEA “produce” expansion accelerates in US License delays back on track for cannabis Scalable processes / systems dr
Slide 78: Margin Assumptions 2020-2025
Renewables Agtech Process standardization / simplification Manufacturing insourcing Field simplification / automation eBOS scaling Process standardization / simplification Field simplification Integration Manufacturing insourcing Residential Infrastructure In-lining Automation Digital customer engag
Slide 79: Capital Management: Investing in the Future
CAPITAL MANAGEMENT: INVESTING IN THE FUTURE 6 2015 - 2020 2020 - 2025 Plan ~$750M Cash From Operations M&A 10X EBITDA multiple 3X leverage or less Borrowing capacity + cash ~ $2B capacity Capex <2% Rev, 20% IRR 80/20 - Lean Health & Safety IT digitization Maintenance ~$600M Cash From Operations M&A
Slide 80: Gibraltar Business Plan 2025
7*Refer to appendix in this presentation for historical adjusted measures reconciliations. Accelerating improvement in Renewables & Agtech Residential recovery via price cost alignment 80/20 execution & digitization drive operating performance Terrasmart + good solar market growth Solid Agtech & Res
Slide 81: Summary
SUMMARY 88 Revenue CAGR 11% - 12% Adj. Operating Margin grows ~ 270 bps Adj. EBITDA Margin grows ~ 200 bps Adj. EPS improves ~ 2X ~ $750M cash from operations
Slide 82: Financial Model Appendix
FINANCIAL MODEL APPENDIX November 17, 2021
Slide 83: 2015 Adjusted Financial Measures Reconciliation
2015 – ADJUSTED FINANCIAL MEASURES RECONCILIATION 10 As Previously Reported in GAAP Statements Discontinued Operations Restatment As Reported in GAAP Statements Acquisition- Related Items Gain on Facility Sale / Restructuring Charges Intangible Asset Impairment Reclass of Hedging Activity Adjusted F
Slide 84: 2020 Adjusted Financial Measures Reconciliation
2020 – ADJUSTED FINANCIAL MEASURES RECONCILIATION 11 As Reported in GAAP Statements Restructuring Charges Senior Leadership Transition Costs Acquisition Related Items Gain on Sale of Business Adjusted Financial Measures Adjusted Operating Margin Net Sales Renewables 238,107$ -$ -$ -$ -$ 238,107$ Res
Slide 85: Adjusted EBITDA Reconciliations
ADJUSTED EBITDA RECONCILIATIONS 12 Renewables Residential Agtech Infrastructure Consolidated Consolidated Industrial Disposition Continuing Operations Net Sales 238,107 522,814 209,460 62,197 1,032,578 1,040,873 299,194 741,679 Adjusted: Income From Continuing Operations 89,752 34,393 7,940 26,453 P