Slide 1: Q4 2021 Earnings Presentation
Q4 2021 Earnings Presentation March 1, 2022 Dave Flitman, CEO | Peter Jackson, CFO BLDR.com
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice • Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other
Slide 3: Invest with Us
Invest with Us 1 2 3 4 2021E to 2025E Base Business Targets1 ~10% ~15% ~50bps Adj. EBITDA Margin Expansion Net Sales CAGR Adj. EBITDA CAGR Annually Deployable Capital of $7B to $10B from 2022E to 2025E 1 Base Business assumes constant $400/mbf lumber and sheet good pricing 2 0 2 1 I N V E S T O R D
Slide 4: Record FY 2021 Performance
Record FY 2021 Performance Record Sales Performance Total • Focused execution, core growth, and disciplined pricing drove record results Net • Strong demand for single family living remains a tailwind for our Sales $19.9b products and services +56% YoY Operational Performance Drove Record Adjusted E
Slide 5: Base Business Expectations for 2022E Aligned with Long Term Plan
Base Business1 Expectations for 2022E Aligned with Long Term Plan …The Majority of our EBITDA Growth is Driven by Value-Added Products Over 60% of BFS’s Base Business1 is Non-Commodity… and Sustainable Operations Improvement / Synergy Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base busine
Slide 6: M&A in 2021
M&A in 2021 Acquisition Annual Sales Date Rationale 2017 2017 ▪ Largest independent building materials supplier in New FY21 England $440M 6 • Successfully completed value-enhancing Q4 2013 ▪ Diverse building materials and service offerings add 2013 substantial depth to BFS value-added solutions acqu
Slide 7: Digital Solutions Progress
Digital Solutions Progress Q4 2021 Accomplishments ▪ Established relationships with corporate functions and educated Sales & Operations leaders on Paradigm capabilities ▪ Publicly announced our Digital Strategy at BFS Investor Day ▪ Refined product roadmaps, allowing the start of minimum viable prod
Slide 8: Synergy Run Rate Capture Completed
Synergy Run Rate Capture Completed MAJOR MILESTONES ESTIMATED RUN-RATE Focus on Cost Synergies COST SAVINGS OF $160M ✓ $32 million realized in Q4 and $108 million fully realized in the P&L for 2021 Other Footprint Consolidation ✓ Achieved $160 million synergy run rate as of year-end Benefits Alignme
Slide 9: Highlights of Record Q4 2021 Results
Highlights of Record Q4 2021 Results Record Sales Performance Net • Focused execution, strong demand, and increasing costs combined with disciplined Sales $4.6b pricing drove record results +24% YoY • Robust demand for single family housing remains a tailwind for our products and (+12% Core Organic1
Slide 10: Q4 2021 Core Organic
Q4 2021 Core Organic Net sales bridge (Q4 2021 compared to combined pro forma Q4 2020) ($M) Q4 2020 Non-Commodity Commodity Q4 2021 199 689 +11.7% Core Organic 4,635 3,747 +6.7% Acquisitions Repair & Core organic1 sales highlights: Remodel / Other • Single family: +14.4% on strength Q4 2020 378 EBIT
Slide 11: Q4 2021 - Broad Strength Across Product Portfolio
Q4 2021 - Broad Strength Across Product Portfolio Net sales by product category (Q4 2021 compared to combined pro forma Q4 2020) ($M/ % change) Specialized Products: Lumber & Lumber Value-Added Products: Manufactured Windows, Doors & Siding, Metal & Gypsum, Roofing & Sheet Goods: Products Millwork C
Slide 12: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Pro Forma Net Leverage1 Improvement Balanced Capital Allocation Priorities 1. Maintain a strong balance sheet; $1.3 billion debt offerings at 4.25% 2. Reinvest in our business to drive growth and productivity 1.7x on Base Business Adj.
Slide 13: 2022 Outlook
2022 Outlook 2022 Full Year Financial Expectations Metrics Guidance 2021 Baseline Base Business Sales1 8% to 12% growth $15.7 billion Base Business Adjusted EBITDA1, 2 12% to 18% growth $1.8 billion Free Cash Flow3 $1.6 to $2.0 billion $1.5 billion Capital Expenditures4 $400 to $420 million $214 mil
Slide 14: Sales and Adj. EBITDA Projection at Various Static Commodity Prices
Sales and Adj. EBITDA Projection at Various Static Commodity Prices Illustrative FY 2022E Assumptions: Sales AEBITDA • Grid provides for various commodity cost assumptions and the ($Bn) ($Bn) corresponding profits assuming static commodity prices. Please keep in mind shorter term price fluctuations
Slide 15: Differentiated Market Leader Positioned for Above Market Growth and Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth and Expanding Profitability Leadership in a highly fragmented industry Exceptional geographic, customer, and end market diversity Strategic investment in value-added capacity, driving share gains and margin expansion Focus on maintainin
Slide 16: Question & Answer Session
Question A n swe r Session 16 | © 2021 Builders FirstSource. All Rights Reserved
Slide 17: Michael Neese, SVP, Investor Relations
Michael Neese SVP, Investor Relations Michael.Neese@bldr.com 214-765-3804 17 | © 2021 Builders FirstSource. All Rights Reserved. www.bldr.com
Slide 18: Commodity Trends
Commodity Trends 1,600 $ PER THOUSAND BOARD FOOT 1,400 Lumber Composite 2021 ACTUAL LUM AVG: $850/MBF OSB AVG: $967/MBF 1,200 1,000 2020 ACTUAL 800 LUM AVG: $561/MBF OSB AVG: $512/MBF 600 400 2019 ACTUAL 200 LUM AVG: $356/MBF Dec Jan Nov Mar May Apr Feb Jun Jul Sep Aug Oct OSB AVG: $239/MBF 1,600 3
Slide 19: Summary Financial Information & Reconciliations
Summary Financial Information & Reconciliations 19 | © 2021 Builders FirstSource. All Rights Reserved.
Slide 20: Summary Financial Information & Reconciliations
Summary Financial Information & Reconciliations 20 | © 2021 Builders FirstSource. All Rights Reserved.
Slide 21: Summary Financial Information & Reconciliations
Summary Financial Information &Reconciliations 21 | 2021 Builders FirstSource. All Rights Reserved.
Slide 22: Summary Financial Information & Reconciliations
Summary Financial Information & Reconciliations 22 | © 2021 Builders FirstSource. All Rights Reserved.
Slide 23: Summary Financial Information & Reconciliations
Summary Financial Information & Reconciliations 23 | © 2021 Builders FirstSource. All Rights Reserved.
Slide 24: Sales by Product Category
Summary Financial Information & Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Sales by Product Category (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 % of % of % % of % of % (in millions) Net Sales Net Sales Net Sales Net Sales Change
Slide 25: Combined Financial Data
Summary Financial Information &Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Combined Financial Data (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 (in millions) (Pro Forma) (Pro Forma) Net sales $ 4,634.8 $ 3,746.9 $ 19,893.9 $ 12,766.