Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Investor Presentation (August 2019)
26 slides from Jeld-wen's investor presentation, August 2019
Slide 1: Investor Presentation August 2019
INVESTOR PRESENTATION August 2019
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act regarding business strategies, market potential, future financial performance, the potential of our categories and brands, our out
Slide 3: Executing Strategy to Accelerate Operating Improvements
EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS Build Leverage Accelerate on solid best-in-class operating progress platform improvements 3 |
Slide 4: Profile of a Global Leader
PROFILE OF A GLOBAL LEADER # $ 4.3B 14 +450 bps 1 Global leader in windows & doors 2018 net revenues Bolt-on acquisitions completed since 2015 Adjusted EBITDA Visibility to margin improvement from cost actions N. America percent of Cash from operations margin improvement sales in stable Operating in
Slide 5: Entering New Phase to Accelerate Transformation
ENTERING NEW PHASE TO ACCELERATE TRANSFORMATION 1960 2014-2018 Today Initiated Accelerate Built global leader transformation transformation • Industry consolidator, • Significant margin • New CEO & CFO in 2018 having completed over 40 improvement • Laser focus on operating acquisitions driven by pri
Slide 6: Most Diversified Windows and Doors Pure Play
MOST DIVERSIFIED WINDOWS AND DOORS PURE PLAY Breakdown of Revenues ~$4.3B Commercial Doors • Wood, Steel, MDF Ancillary • Fire rated Products • Shower enclosures • Moldings, trim board Residential • Closet systems Interior Doors • Molded and flush Ancillary • Wood veneer and glass 13% • Stile & rail
Slide 7: Significant Progress Since Launch of Transformation
SIGNIFICANT PROGRESS SINCE LAUNCH OF TRANSFORMATION Net Revenue Adj. EBITDA ($B) ($M) (1) 25% $459 CAGR 5% $4.3 CAGR $3.5 $153 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 (1) Revised as of 8/7/19 for additional information, please refer to our Form 10-Q for the quarter period ended J
Slide 8: Progress in Building Powerful Cash Flow Engine
PROGRESS IN BUILDING POWERFUL CASH FLOW ENGINE Free Cash Flow ($M) $203 $122 $101 $95 ($49) ($135) 2013 2014 2015 2016 2017 2018 TARGET FREE CASH FLOW ≥ NET INCOME 8 |
Slide 9: Executing Strategy to Accelerate Operating Improvements
EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS Build Leverage Accelerate on solid best-in-class operating progress platform improvements 9 |
Slide 10: Leverage Best-in-Class Platform
LEVERAGE BEST-IN-CLASS PLATFORM 1. Global market leader 2. Broad portfolio of trusted brands Excellent platform for margin expansion and cash flow 5. Proven M&A generation capabilities 3. Unparalleled breadth 4. Differentiated capabilities provide competitive advantages 10 |
Slide 11: 1. Global Market Leader
1. GLOBAL MARKET LEADER Leading Position in Most Markets #1 #1 #1 #4 Europe North America #1 Market Position – Resi. Doors #1 Market Position – Non-Resi. Doors Australasia Market Position – Resi. Windows Revenue Adj. EBITDA Australasia Australasia 15% 18% North America North America 57% 56% Europe E
Slide 12: 2. Portfolio of Trusted Brands
2. PORTFOLIO OF TRUSTED BRANDS 12 |
Slide 13: 3. Unparalleled Breadth
3. UNPARALLELED BREADTH Products Ancillary 13% • Broadest product range of doors and windows Doors • Doors – Interior Molded, Stile and Rail, Exterior Steel, 66% Exterior Fiberglass, Wall Systems Windows 21% • Windows – Wood, Vinyl, Aluminum, Composite, Louvered, Sashless Markets Non-Res. Res. New 1
Slide 14: 4. Differentiated Capabilities Provide Competitive Advantages
4. DIFFERENTIATED CAPABILITIES PROVIDE COMPETITIVE ADVANTAGES Vertically integrated in capital intensive key processes: – Interior molded door skins – Australia glass processing – Wood processing and components Low cost manufacturing assets provide leading cost position: – Indonesia – Eastern Europe
Slide 15: 5. Successful M&A Record
5. SUCCESSFUL M&A RECORD Disciplined Track Record of M&A Delivering Criteria Strategic and Financial Targets Enhance product portfolio Acquisitions since company > 50 founding >40 – Fill gaps in product lines – Acquire new technologies 14 Acquisitions since 2014 13 Market consolidation – Improve mar
Slide 16: Executing Strategy to Accelerate Operating Improvements
EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS Build Leverage Accelerate on solid best-in-class operating progress platform improvements 16 |
Slide 17: The New JELD-WEN We Are Building
THE NEW JELD-WEN WE ARE BUILDING Past Future Organic Growth Below Market Accelerate Margin Improvement Pricing & SG&A Productivity & Footprint Innovation Moderate High Cost Productivity Low – 1% Net* High ~3% Net* Values and Culture Lack of Integration Common Vision Acquisitions Strategic Bolt-ons B
Slide 18: JELD-WEN's Strategic Growth Drivers
JELD-WEN’S STRATEGIC GROWTH DRIVERS Accelerate Disciplined Capital 1 Top Line Growth 2 Expand Margins 3 Allocation % Invest for Growth Culture and Tools Shareholder Value 18 |
Slide 19: Global Innovation Capabilities
1 . A C C E L E R AT I N G T O P L I N E G R O W T H GLOBAL INNOVATION CAPABILITIES Global Product Expanding into Establishing Development & New Market Segments Commercial Excellence Technology • Repair and Remodel • Integrate global product • Integrated commercial expansion, largest global developm
Slide 20: 15% Adj. EBITDA Margins on Current Volume Base
2 . E X PA N D M A R G I N S 15% ADJ. EBITDA MARGINS ON CURRENT VOLUME BASE Manufacturing Productivity Footprint Through JEM 15%+ Rationalization & Modernization • $100M+ savings 10.6% opportunity • $100M+ savings • Represents a ~3% opportunity reduction in COGS • Target ~15% • Savings from: reducti
Slide 21: Footprint Rationalization & Modernization
2. EXPAND MARGINS FOOTPRINT RATIONALIZATION & MODERNIZATION Objectives Status Update ▪ Leverage acquired assets and JEM tools to ▪ Consolidation projects active in all three segments reduce global facility footprint and increase ▪ Several facility closures already announced efficiency ✓ Reduce compl
Slide 22: JELD-WEN Excellence Model
2 . E X PA N D M A R G I N S JELD-WEN EXCELLENCE MODEL • Problem solving (A3) • Safety • Doubled JEM tool deployment locations • Standard work • Service and quality • 90%+ facilities improved • Visual management • Cost savings service • Value streams • Productivity • 58% increase in productivity • G
Slide 23: Priorities for Free Cash Flow Deployment
3 . C A P I TA L A L L O C AT I O N PRIORITIES FOR FREE CASH FLOW DEPLOYMENT 1 2 3 Accretive Share De-Lever Acquisitions Repurchase Balance Sheet • Disciplined approach • $250M authorized in • Current net debt to May 2018 EBITDA ~3.2x • Target IRR > 20% • $110M • Targeting < 2.5x in • Maintaining ac
Slide 24: Milestones Next 12 Months
MILESTONES NEXT 12 MONTHS • Meet quarterly commitments ✓ • Kickstart productivity savings ✓ • Execute share repurchase plan ✓ • Accelerate N.A. core revenue growth • Progress with footprint rationalization • IT upgrades • Reduce debt leverage 24 |
Slide 25: In Summary: Executing Strategy to Accelerate Operating Improvements
IN SUMMARY: EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS Build Leverage Accelerate on solid best-in-class operating progress platform improvements 25 |
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED EBITDA AND FREE CASH FLOW (USD IN MILLIONS) Year Ended December 31, 2013 2014 2015 2016 2017 2018 Net Income (loss) (1) $ (68.4) $ (84.1) $ 90.9 $ 376.1 $ 8.1 $ 141.8 Adjustments: Loss (income) from discontinued operations, net of tax 5.9 5.4 2.9 3.3 - - Gain (loss)
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