Slide 1: Investor Presentation August 2023
INVESTOR PRESENTATION August 2023
Slide 2: Forward-looking statements and non-GAAP measures
This presentation contains certain statements related to future results, our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements invol
Slide 3: Q2'23 TTM Highlights and Value Proposition
3 Team members 10,000 Years of Success 64 Facilities 250+ Q2’23 TTM Revenue $3.9B Q2’23 TTM Diluted EPS $7.41 Pro Forma Adjusted EBITDA $462M1 Free Cash Flow $444M1 Liquidity $607M Total Net Leverage 2.6x1,2 1 Non-GAAP metric. See appendix for reconciliation to closest GAAP metric | 2 As defined by
Slide 4: Leading Component Solutions Provider to OEMs
RV MARINE HOUSING PATRICK Sales by End Market 43% 28% 29% Q2’23 TTM RV HOUSING MARINE 69%7% 24% FY 2017 Extensive Supplier to OEMs with Growing Aftermarket Presence Strong OEM Relationships alongside Big Box Direct-To- Consumer Offerings 4 $3.9B $1.6B Leading Component Solutions Provider to OEMs 43%
Slide 5: Strategically Built Organization of Great People, Teams, Brands
$308 $437 $595 $736 $920 $1,222 $1,636 $2,263 $2,337 $2,487 $4,078 $4,882 $3,885 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 23 TTm $8 $28 $24 $31 $42 $56 $86 $120 $90 $97 $225 $328 $172 $21 $37 $53 $71 $106 $122 $200 $280 $250 $329 $531 $674 $462 $0.37 $1.17 $0.99 $1.27 $1.81 $2.
Slide 6: Net Sales Grew by $2.3 Billion in Five Years
43% 28% 29% RV Marine Housing $3.9B Net Sales Grew by $2.3 Billion in Five Years $1.6B Diversifying our Portfolio (Net Sales Composition as %) Q2’23 TTM Growing Marine Market Penetration Consistent Net Sales and Margin Growth (2017-Q2’23 TTM) Experienced Provider in RV and Affordable Housing Gross M
Slide 7: Marine and RV Industry Shipments
FY 2021 FY 2022FY 2020 WholesaleWholesaleWholesale Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Retail Wholesale 493,300 Retail Wholesale 234,800 163,700 1 Company estimates based on data published by the National Marine Manufacturers Association/ Statistical S
Slide 8: Market Insight: Marine
Dealer inventories now replenished following supply chain constraints due to the pandemic We remain focused on growing our presence in aftermarket, which tends to be higher margin and more resilient MARINE NET SALES ($ in millions) TTM CONTENT PER WHOLESALE UNIT $112 $274 $329 $339 $665 $1,038 $1,07
Slide 9: Market Insight: RV
End-consumer demographic trending younger and more diverse Disciplined OEM production improves long-term health of the market $1,128 $1,434 $1,287 $1,392 $2,404 $2,593 $1,686 2017 2018 2019 2020 2021 2022 Q2'23 TTM $2,234 $2,965 $3,170 $3,235 $4,006 $5,257 $5,054 2017 2018 2019 2020 2021 2022 Q2'23
Slide 10: Market Insight: Housing
Strong demand for affordable housing with limited inventory available MH remains an attractive option to those seeking affordable housing High mortgage rates are limiting the number of homes on the secondary market, further constricting supply $396 $555 $721 $756 $1,008 $1,251 $1,129 2017 2018 2019
Slide 11: Team Performing Well in Challenging Environment
TEAM PERFORMING WELL IN CHALLENGING ENVIRONMENT CONFIDENT IN STRATEGIC DIRECTION • Diversification of model has been effective • Tested leadership team and business strategy • Working capital monetization and strong cash flows TRANSFORMATION RESULTING IN MORE RESILIENT ENTERPRISE Q2 2019 Q2 2023 Δ W
Slide 12: Q2 2023 Financial Results
$4.79 $1.94 $174 $76 11.8% 8.2% • Net Sales declined 38% primarily as a result of a 44% reduction in RV OEM wholesale shipments, which drove a $454M decline in our RV end market revenue • Gross margin improved 60 basis points due to improved mix of Marine revenue despite the sharp RV industry volume
Slide 13: Debt, Liquidity and Covenants
• $150.0M Term Loan ($133.1M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($195.0M o/s) Senior Secured Revolver, due August 2027 • $300.0M 7.50% Senior Notes, due October 2027 • $258.8M 1.75% Convertible Senior Notes, due December 2028 • $350.0M 4.75% Senior Notes, due M
Slide 14: Capital Allocation Strategy
$117 $212 $66 $91 $11 $8 $29 $45 $53 $9 $121 $202 $50 $264 $80 $256 $183 $68 $35 $152 $35 $60 Acquisitions Capital Expenditures Share Buybacks Dividends ($ in millions) Our Capita l Allocation Stra tegy Seeks To Balance Prioritizing Shareholder Value With Stra tegic Business Growth For Near And Long
Slide 15: Growth Initiatives
These Growth Initia tives Have Resulted In Patrick Becoming A Leading Component Solutions Provider In The Leisure Lifestyle And Housing Markets PROFITABLE GROWTH ENGINE STRATEGIC ACQUISITIONS Pursue accretive acquisition opportunities to further strengthen primary markets and explore potential adjac
Slide 16: Acquisition Strategic Criteria
Strategic Criteria Strong Leadership Team and Cultural Fit Executable Revenue Synergies Geographic / Market Expansion Market Leadership Strong Track Record of Operational Success Key Market Category EPS Accretion in First Full Year ROIC > Cost of Capital Accretive to Profit Margins 16
Slide 17: Our Values
17 BALANCE We work to build a healthy work environment that encourages excellence, happiness, and peace in both our work and our home life. EXCELLENCE We strive to meet the highest possible standards of achievement in our work and relationships. TRUST We do what we say we will do every time — and co
Slide 18: Appendix
Slide 19: Reconciliation of Net Leverage
RECONCILIATION OF NET LEVERAGE* -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non-GAAP financial measures. In addition to reporting financial results in accordance with accounting principles genera
Slide 20: RV, Marine and Manufactured Housing Product Categories
Single-Section Homes Multi-Section Homes ASP: $72,600 | 42% of Market ASP: $132,000 | 58% of Market TOWABLE Shipments: 88% Wholesale | 65% Retail Value MOTORIZED Shipments: 12% Wholesale | 35% Retail Value Travel Trailer | ASP: $32,100 Fifth Wheel | ASP: $74,200 Class A | ASP: $257,800 Class B & C |
Slide 21: Additional Supplied Products
Additional Supplied Products • Softwoods • Full Body Paint • Aluminum Gauges • Steel Gauges • Mill Finish & Pre-painted Aluminum and Steel • Slit & Embossed Steel • FRP Coil & Sheet • Trim Panels • Fuel Systems • Metal Extrusions 21
Slide 22: Additional Supplied Products
Additional Supplied Products • Exit Lighting • Power Cords & Inlets • RV Tank Heater Pads • Fire Extinguishers • Electric Fireplaces • Wiring, Electrical & Plumbing • Inverters • Tire Pressure Monitors • Electrical Switches, Receptacles, & Outlets • RV Transfer Switches • Battery Selector Switches •
Slide 23: Additional Supplied Products
Additional Supplied Products Softwoods Full Body Paint Aluminum Gauges Steel Gauges Mill Finish & Pre-painted Aluminum and Steel Slit & Embossed Steel FRP Coil & Sheet Trim Panels Fuel Systems Metal Extrusions Aluminum / Plastic Fuel & Holding Tanks Wire Harnesses Electronics Das
Slide 24: Additional Supplied Products
Additional Supplied Products Softwoods Full Body Paint Aluminum Gauges Steel Gauges Mill Finish & Pre-painted Aluminum and Steel Slit & Embossed Steel FRP Coil & Sheet Trim Panels Fuel Systems Metal Extrusions Interior Passage Doors Kitchen & Bath Faucets & Sinks Gypsum (Drywall