Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Investor Presentation (April 2025)
38 slides from Simpson Manufacturing's investor presentation, Apr 28, 2025
Slide 1: Strong Foundation. Stronger Future.
Strong Foundation. Stronger Future. Simpson Manufacturing Co., Inc. Investor Presentation April 2025 Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generall
Slide 3: Investment Highlights
Investment Highlights (1) Above market North America volume in pounds relative to U.S. housing starts. (2) As of December 31, 2024. (3) Time frame represents January 1, 2021 to December 31, 2024. Customer-centric business model, above market volume growth(1), high brand recognition and trusted reput
Slide 4: Celebrating Years as a Public Company
Celebrating 30 Years as a Public Company (1) Since its debut at $11.50 per share ($2.875 split-adjusted) at its initial public offering (IPO) on May 25, 1994. Nearly 31 years and two stock splits later, shares of Simpson closed at $153.54 on April 25, 2025, which, together with quarterly dividends,
Slide 5: Simpson's Purpose and Unique Culture
Simpson’s Purpose and Unique Culture OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Quality Products 4. Be The Leader 5. Everybody Matters 6. Enable Growth 7. Risk-Taking Innovation 8. Give Back 9. Have Fun, Be Humble To deliver innovative solutions that help
Slide 6: Our Strong Business Model
Our Strong Business Model Broad portfolio of solutions 15K standard & custom wood products 3K standard & custom concrete products 50+ software and web-app solutions Unparalleled availability and delivery ~98% product fill rate 24-48 hour typical delivery 48-hour turnaround on specials Same-day shipp
Slide 7: Simpson's Value Proposition
Simpson’s Value Proposition Our presence at every stage of the construction process — from compliance and specification to procurement and installation — creates an interconnected value chain, setting us apart and ensuring long-term market leadership. ▪ Code evaluation reports for products verify bu
Slide 8: U.S. Housing Market Shortage
0 500 1,000 1,500 2,000 2,500 J a n -0 1 J a n -0 2 J a n -0 3 J a n -0 4 J a n -0 5 J a n -0 6 J a n -0 7 J a n -0 8 J a n -0 9 J a n -1 0 J a n -1 1 J a n -1 2 J a n -1 3 J a n -1 4 J a n -1 5 J a n -1 6 J a n -1 7 J a n -1 8 J a n -1 9 J a n -2 0 J a n -2 1 J a n -2 2 J a n -2 3 J a n -2 4 US Hou
Slide 9: Core Addressable Market
Core Addressable Market (1) (1) Market share based on net sales as of the full year ended December 31, 2024. Market sizes based on internal estimates using information as of October 2 023. Includes North America, Europe and Pacific Rim. Many opportunities to grow our product lines across end-use mar
Slide 10: Broad Portfolio of Solutions
Digital Solutions & Services (Software, Web Apps, Estimating) Steel Connections (Cold-Formed Steel, Roof Framing, Structural) Lateral Systems (Shearwalls, Rod Systems) Integrated Component Systems (Truss Plates, Software) Fastening Systems (Structural & Deck Screws, Tools) Wood Connectors (Framing,
Slide 11: 5 Key End-Use Markets in North America
Our market-focused approach enables us to better serve current customers while identifying opportunities to reach new customers with our product solutions. 5 Key End-Use Markets in North America See Appendix for additional details. Residential Construction Commercial Construction OEM National Retail
Slide 12: Driving Growth with Digital Solutions
Driving Growth with Digital Solutions Make it easier to do business with Simpson through best-in-class online portal and digital experience 1 Use technology to streamline and strengthen partnerships with key customer groups 2 Provide software solutions that drive the specification and use of our pro
Slide 13: Europe Strategy
Europe Strategy Building Strong Brands in Our Core Business Grow with Our Strong Solutions In Our Highest Potential Markets Focus on the countries where we already operate Stronger effort in commercial new building and residential renovation Exploit the mass timber trend Further strengthen our #1 po
Slide 14: Strong Business Drives Stockholder Value
Strong Business Drives Stockholder Value (1) Chart represents annual dividends declared. Part of the 2013 dividend was accelerated due to uncertainty of changes to ta x code in 2013. The dividend paid in December 2012 is included in 2013. Across Operating Segments ($ USD Millions) North America $1,7
Slide 15: Historical Market and Financial Performance
Historical Market and Financial Performance 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 H o u s in g S ta rts (M ) ($ M ) North Ameri
Slide 16: Accelerating Above Market Growth
Accelerating Above Market Growth Our North America operations continue to outperform U.S. housing, and we are highly focused on accelerating above market volume growth beyond historical average performance while continuing to pursue strong profitability. ~3% pts. on avg. above market ~7% pts. on avg
Slide 17: Significant Progress in a Flat Market
~ 1.4 million U.S. housing starts in 2020 and 2024 Significant Progress in a Flat Market 1.38 M U.S. housing starts (Census Bureau) 1.37 M U.S. housing starts (Census Bureau) Revenue $1.25 B Op. Income $250 M 2020 2024 Revenue $2.23 B Op. Income $430 M Net Pricing ~$450 M Share Gains ~$200 M ETANCO
Slide 18: Progress Made from 2020 to 2024
Progress Made from 2020 to 2024 Despite market headwinds, we entered 2025 from a position of strength. ✓ ~$1B more revenue ✓ ~$180M more operating profit ✓ Clearer targets and strategies ✓ Stronger market leadership in connectors, improved share in fasteners and anchors ✓ Shifted to market-focused s
Slide 19: Operating Income Margin Outperformance
Operating Income Margin Outperformance Simpson Historical Operating Income Margin Versus Proxy Peer Average (1) 9.8% 4.3% 3.6% 4.0% 4.8% 5.1% 7.6% 7.3% 8.8% 11.1% 13.6%14.0% 13.1%13.0% 14.3% 16.5% 17.2% 17.0% 14.7% 19.9% 15.1% 13.2% 6.0% 14.1% 12.3% 9.4% 11.6% 13.3% 13.8% 16.5% 14.2% 16.0% 15.9% 19.
Slide 20: Well-Positioned to Drive Growth
Well-Positioned to Drive Growth We are well-positioned to execute our growth strategy given our demonstrated commitment to disciplined capital allocation. $206 $208 $151 $400 $427 $340 $33 $33 $44 $62 $89 $183 $7 $8 $6 $811 $23 $79 $40 $40 $42 $44 $45 $47 $61 $76 $24 $79 $50 $100 $142 $158 $116 $995
Slide 21: Capital Return History
Capital Return History $898.1 Million 2021 – 2025(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($1,323.9 M) less Capital expenditures ($425.8 M) Repurchases of Common Stock(2) 30.9% Quarterly Cash Dividends 21.0% (1) Time frame represents January 1, 2021 to March 31, 2025. 21
Slide 22: Use of Cash Priorities
Use of Cash Priorities Past and Potential Future Uses of Cash Flows Acquisitions Dividends Debt Repayment Share Repurchases ▪ Prioritizing facility expansions (capacity, service, efficiencies and safety) ▪ Investing in growth initiatives (engineering, marketing, sales personnel, testing capabilities
Slide 23: Investments to Meet Growing Demand
Investments to Meet Growing Demand Expansion of North American manufacturing operations to better serve our customers. Expansion of Columbus, OH Facility Greenfield Gallatin, TN Facility ▪ Future capacity to support growth ▪ Maintain safety standards ▪ Ensure excellent service levels ▪ Allow needed
Slide 24: Acquisition Strategy
Acquisition Strategy Accelerate our strategic growth priorities through M&A opportunities, maximizing long-term value. Strengthen our business model by expanding our product lines to develop complete solutions for the markets in which we operate Improve our manufacturing capabilities and supply chai
Slide 25: Company Ambitions
Company Ambitions(1) Strengthen our values-based culture1 Be the business partner of choice2 Strive to be an innovative leader in the markets we operate 3 (1) Revised January 1, 2025. Continue above market volume growth relative to U.S. housing starts 4 Maintain operating income margin of >20%5 EPS
Slide 26: Appendix
Appendix
Slide 27: Innovation Leader
Innovation Leader Simpson is a pioneer of construction solutions and the industry standard for structural connectors. 1956 1970 1984 1996 1997 1999 2005 1994 NYSE LISTING (SSD) OUR FOUNDER BARC SIMPSON EXPANSION INTO CONCRETE EXPANSION INTO FASTENERS FIRST CONNECTOR CONNECTOR MARKET LEADER EXPANSION
Slide 28: Innovation Leader (continued)
Innovation Leader (continued) Over the years, Simpson has remained an innovation leader in connectors, fasteners, lateral systems, anchors, concrete repair, construction software and structural steel solutions. 2016 20192012 2017 EXPANSION INTO CARBON FIBER SOLUTIONS EXPANSION INTO BUILDER & LBM SOF
Slide 29: Innovation Leader (continued)
Innovation Leader (continued) (1) Data as of February 2025. Innovation by the numbers(1) Testing is in our DNA A dedication to innovation through extensive research and development, academic partnerships and state-of-the-art structural testing. ~500 Patents Worldwide ~200 Patents Pending ~1,700 Trad
Slide 30: Residential End-Use Market
Residential End-Use Market Key Market Focus Areas Strategy ▪ Build and maintain strong relationships with Builders and pro-dealers ▪ Specify and create demand through national builders ▪ Ensure product availability through national pro-dealers ▪ Utilize connectors to grow other product lines ▪ Deliv
Slide 31: Commercial End-Use Market
Commercial End-Use Market Key Market Focus Areas Strategy Key Product Lines Wood Connection Products Fastening Systems Concrete Connection Products Integrated Component Systems (Truss) Digital Solutions ▪ Call on and educate engineers and designers to drive specifications ▪ Provide training and supp
Slide 32: OEM End-Use Market
OEM End-Use Market Key Market Focus Areas Strategy Key Product Lines Wood Connection Products Fastening Systems Concrete Connection Products Integrated Component Systems (Truss) Digital Solutions ▪ Aligned with our business model; identify opportunity for existing connectors, fasteners, anchors and
Slide 33: National Retail End-Use Market
National Retail End-Use Market Key Market Focus Areas Strategy Key Product Lines Wood Connection Products Fastening Systems Concrete Connection Products Integrated Component Systems (Truss) Digital Solutions ▪ Improve retail execution through merchandising, product development, and marketing ▪ Conti
Slide 34: Component Manufacturer End-Use Market
Component Manufacturer End-Use Market Key Market Focus Areas Strategy ▪ Continue to develop functional, stable, open software ▪ Continue to increase truss plate manufacturing capacity to support growth ▪ Further build internal talent pool for implementation, training and high touch service and suppo
Slide 35: Digital Solutions
Digital Solutions Building out our digital offerings to serve customers across the building industry. Specification tools (apps/selectors) Design/visualization, estimating, online ordering Option management, estimating Project management and truss design Free design software and plans 35
Slide 36: Corporate Social Responsibility: Environmental
Corporate Social Responsibility Environmental: Committed to continuously improving the efficiency of our resource use to lessen our impact, and designing and manufacturing products with environmental conservation in mind Manufacturing Facilities ▪ GOAL: Minimize amount of total waste generated by ma
Slide 37: Corporate Social Responsibility: Social Responsibility
Corporate Social Responsibility Social Responsibility: Dedicated to ensuring everyone at our Company feels included, valued, empowered, and equipped with the tools and confidence to improve, learn and thrive personally and professionally Inclusion and Belonging ▪ GOAL: Foster diversity in our workfo
Slide 38: Strong Foundation. Stronger Future.
Strong Foundation. Stronger Future.
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