Atkore Inc. · NYSE:ATKR
Atkore — Investor Presentation (May 2023)
23 slides from Atkore's investor presentation, May 2023
Slide 1: Investor Presentation & Company Overview
Investor Presentation & Company Overview May 2023 © Atkore
Slide 2: Cautionary Statements
Cautionary Statements This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (the “Company” or “Atkore”) or its operational and financial in
Slide 3: Atkore: a Compelling Investment
Atkore: a Compelling Investment Disciplined Operational Focus Values-based organization driven by the Atkore Business System Track Record of Success Strong track record of earnings growth, increasing free cash flow and excellent return on capital Market Leadership Leading market share in key product
Slide 4: Our Foundation Is the Atkore Business System
Our Foundation Is the Atkore Business System © Atkore 4
Slide 5: Our Products Are All Around You
Our Products Are All Around You Wire Basket Cable Armored Cable Tray & Fittings Flexible & Liquid Tight Electrical Electrical Conduit Prefabrication Cable Tray, Industrial Flexible Ladder & Fittings Electrical Conduit Steel Conduit & Fittings Metal Framing & Fittings (Including Seismic) Specialty El
Slide 6: Our Business Has Transformed Since IPO
Our Business Has Transformed Since IPO Transformed sales mix to drive significant revenue growth and profitability through organic and inorganic activities while increasing our total addressable market opportunity Adjusted EBITDA Adjusted EBITDA Margin1 Margin1 15.1% 34.3% Total Addressable Market O
Slide 7: Growth Driven by Atkore Business System
Growth Driven by Atkore Business System Historical Net Sales Bridge Key Discussion Items $593 $15 $3,914M $1,924 $21 A• Analysis understanding customer and product level profitability minimized impact of volume declines; Examples B include strategic determination to reduce $1,504M A retail exposure
Slide 8: Solid Results in Q2 2023
Solid Results in Q2 2023 Net Sales Net Income Adjusted EBITDA1 Diluted EPS Adjusted Diluted EPS1 $M $M $M $/share $/share +7.4% +5.6% +4.6% +2.6% 982.6 233.5 +0.4% 346.2 5.08 5.39 895.9 833.8 4.20 4.31 4.61 4.87 173.5 174.2 263.8 276.0 639.5 124.9 193.4 2.58 2.79 455.7 87.0 39.2 0.80 0.99 Q2 Q2 Q2 Q
Slide 9: Diversity of End-Market Use Enables Resilience
Diversity of End-Market Use Enables Resilience Estimated Net Sales by Key Product Area & Market Non-Residential Construction (Global) Residential (U.S.) OEM / OTHER Commercial & Institutional Data Centers & Utility Multi-Family Single Family Industrial Warehouses Plastic Pipe, Conduit & Fittings Met
Slide 10: Executing Our Conduits of Growth
Executing Our Conduits of Growth M&A Pipeline Category Expansion Focused Product Category Initiatives Growth & Innovation Funnel of targets remains Strong growth in solar related Product Vitality Index robust products in Q2 reached 9% of Net Sales in Q2 2023 Maintaining disciplined Capital investmen
Slide 11: HDPE Products Expected to Drive Growth
Category Expansion Example HDPE Products Expected to Drive Growth Between recent organic and inorganic investments, we expect our HDPE related products to be a strong driver of growth for the next several years given the secular tailwinds behind the products and our execution of the Atkore Business
Slide 12: New Large Tube Capacity & Capabilities Provide Opportunity
Category Expansion New Large Tube Capacity & Example Capabilities Provide Opportunity Solar megatrend represents a growth and category expansion opportunity — leveraging recent capability and capacity investments for mechanical tubing products that can be used in renewable energy applications. In Ma
Slide 13: Capital Deployment Framework
Capital Deployment Framework Capital Deployment Focused on Driving Growth in Adjusted Diluted EPS Capital Deployment Model – FY 2023 & Forward Status Update Target Cash Flow from Capital Expenditures, ~$200M in expected capital expenditures in FY23; includes Operating Activities to be Organic Growth
Slide 14: FY23 Cash Flow Summary
FY23 Cash Flow Summary Cash Flow from Operating Activities FY23 YTD Cash Bridge $403M +150% $403M $73M $83M $389M $354M $269M $13M $161M FY22 YTD FY23 YTD FY22 YE Cash Flow Capital M&A Stock Net Other FY23 YTD Cash Balance From Operating Expenditures Repurchases Uses of Cash Cash Balance Cash flow f
Slide 15: Balance Sheet Summary
Balance Sheet Summary Gross Debt to Adjusted EBITDA1 Debt Maturity Profile, $M 400 -2.7x 373 3.3 325 2.6 2.5 0.8 0.6 0.6 FY 18 FY 19 FY 20 FY 21 FY 22 TTM Mar 2023 2026 2027 2028 2029 2030 2031 Undrawn Asset Based Loan Senior Secured Term Loan Senior Notes © Atkore 1. See non-GAAP reconciliation in
Slide 16: Atkore: a Compelling Investment
Atkore: a Compelling Investment Disciplined Operational Focus Values-based organization driven by the Atkore Business System Track Record of Success Strong track record of earnings growth, increasing free cash flow and excellent return on capital Market Leadership Leading market share in key product
Slide 17: Questions?
Questions? © Atkore 17
Slide 18: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, (in thousands) 2022 2021 2020 2019 2018 2017 Net income $ 913,434 $ 587,857 $ 152,302 $ 139,051 $ 136,645 $ 84,639 Income tax ex
Slide 19: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended March 31, December March 25, March 26, March 27, (in thousands) 2023 30, 2022 2022 2021 2020 Net income $ 174,194 $ 173,492 $ 233,477 $ 124,933 $ 39,193 Interest expense, net 8,475 9,488 7,514 8,416 10,564 Incom
Slide 20: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three months ended March 31, December March 25, March 26, March 27, (in thousands, except per share data) 2023 30, 2022 2022 2021 2020 Net income $ 174,194 $ 173,492 $ 233,477 $ 124,933 $ 39,193 Stoc
Slide 21: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three months ended March 31, March 31, December 30, September June 24, 2022 (in thousands) 2023 2023 2022 30, 2022 Net income $ 822,801 $ 174,194 $ 173,492 $ 220,802 $ 254,313 Interest expense, net 34,206 8,475 9,488 9,000 7,243 Inco
Slide 22: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore Inc. March 31, September 30, September 30, September 30, September 30, September 30, ($ in thousands) 2023 2022 2021 2020 2019 2018 Short-term debt and current maturities of long-term debt $ — $ — $ — $ — $ — $ 26,561 Long-term debt 761,6
Slide 23: atkore.com
atkore.com © Atkore © Atkore 23