Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Investor Presentation (June 2019)

19 slides from Siteone Landscape Supply's investor presentation, June 2019

  1. Slide 1: Stronger Together: Overview – June 2019

    SiteOne”™ LANDSCAPE SUPPLY Stronger Together Overview — June 2019

  2. Slide 2: Disclaimer

    Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2019 Adjusted EBITDA outlook. S

  3. Slide 3: Company and industry overview

    Company and industry overview ■ Largest and only national wholesale distributor of landscape supplies ■ $19 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~11% market share(1) ■ Serving residential and commercial landscape professionals Distribution C

  4. Slide 4: SiteOne plays a critical role in the professional landscape supply value chain

    SiteOne plays a critical role in the professional landscape supply value chain Thousands Hundreds of thousands of suppliers of customers Critical Business Partner Small: ~26% of 2018 net sales ■ <$25K in avg. annual purchases SiteOne provides: SiteOne provides: Coast-to-coast Broadest national netwo

  5. Slide 5: We are the only National full product line provider in the industry

    We are the only National full product line provider in the industry Four Verticals Merchandised Products Landscape Irrigation & Lighting Agronomics Nursery Hardscapes Accessories Market #1 #1 #1 #1 #1 Position % of 2018 35% 29% 13% 11% 12% Sales  Concrete paver &  Merchandised  Sprinklers  Ferti

  6. Slide 6: Track record of performance and growth

    Track record of performance and growth Net Sales Adjusted EBITDA 176 (in Millions) (in Millions) 2,112 157 1,862 ’14-’18 Growth ’14-’18 Growth 1,648 134 1,452 Sales $ +79% 107 Adj. EBITDA $ 1,177 +138% 32.0% 32.1% 8.4% 8.3% GM % +570 bps 74 31.3% 8.1% Adj. EBITDA % 29.6% 7.3% +200 bps 26.4% 6.3% FY

  7. Slide 7: SiteOne is poised for long-term growth and margin enhancement

    SiteOne is poised for long-term growth and margin enhancement Current strategy  Leverage strengths of both large and local company ■ Fully exploit our scale, resources and capabilities ■ Execute local market growth strategies ■ Deliver superior value to our customers and suppliers ■ Close and integ

  8. Slide 8: Significant room to grow across product lines

    Significant room to grow across product lines # of markets(1) Missing either Missing both Full Product No Hardscapes or Hardscapes Line Offering Presence Nursery and Nursery SiteOne offers all ~50 product lines in only ~21% of our target markets today… ~80 ~50 ~50 (1) Target markets are represented

  9. Slide 9: Robust pipeline provides significant growth opportunity

    Robust pipeline provides significant growth opportunity  SiteOne is the leading industry consolidator 11%  Significant sourcing advantage with 70+ associates scouting new growth opportunities 89%  Our pipeline is deep and expanding ~$19bn market(1)  M&A team in place to execute our acquisition p

  10. Slide 10: Proven management team driving performance and growth

    Proven management team driving performance and growth Local Leadership Team Senior Leadership Team Functional Excellence Avg yrs % former Name Experience ■ Functional areas are led by top industry contractors / industry talent from best-in-class Position #1 expertise golf super’int Doug Black compan

  11. Slide 11: Investment highlights

    Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 11

  12. Slide 12: Appendix

    ry SiteOne LANDSCAPE SUPPLY Stronger Together Appendix

  13. Slide 13: First Quarter 2019 highlights and recent developments

    First Quarter 2019 highlights and recent developments First Quarter 2019 highlights:  Net sales increased by 12% to $417.3 million  Organic Daily Sales increased by 5%  Gross profit increased by 20% to $130.0 million; gross margin expanded 200 bps to 31.2%  Net loss of $24.1 million, compared to

  14. Slide 14: Review of First Quarter 2019 financial results

    Review of First Quarter 2019 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 12% YoY to $417.3 million – Organic Daily Sales increased by 5% Net sales 371.4 417.3 – Acquired sales growth was $29.5 million, or 8% of overall growth Q1’18 Q1’19 ■ Gross pr

  15. Slide 15: Review of First Quarter 2019 balance sheet & cash flow highlights

    Review of First Quarter 2019 balance sheet & cash flow highlights First Quarter 2019 Balance sheet & cash flow highlights ($ in millions) ■ Working Capital increased to $482.9 million, compared to $460.5 million in the prior year period – Excluding lease accounting change, working capital would have

  16. Slide 16: Proven track record of successful acquisitions

    Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 YTD Total  Eljay  Hydro-Scape  Aspen Valley  Pete Rose  Cutting Edge  Diamond Head  Blue Max  Stone Forest  Atlantic Irrigation  All Pro Horticulture  Stockyard  Bissett  Angelo's  Village Nurseries  Landsc

  17. Slide 17: Non-GAAP reconciliations

    Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2019 2018 2017 ($ in millions) Q1’19 Q4’18 Q3 ‘18 Q2 ‘18 Q1 ‘18 Q4 ‘17 Q3 ‘17 Q2 ‘17 Net income (loss) $(24.1) (2.1) 29.9 63.1 (17.0) 4.0 16.9 44.2 Income tax expense (benefit) (9.6) (5.6) 2.4 14.7 (10.2) (11.4) 10.7 26.3 Interest expense, net

  18. Slide 18: Non-GAAP reconciliations

    Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2018 2017 2016 2015 2014 Net income $73.9 $54.6 $30.6 $28.9 $21.7 Income tax expense 1.3 18.0 21.3 19.5 14.4 Interest expense, net 32.1 25.2 22.1 11.4 9.1 Depreciation & amortization 52.3 43.1 37.0 31.2 20.3 EBITDA $159.6 $140.9

  19. Slide 19: Non-GAAP reconciliations

    Non-GAAP reconciliations Organic Daily Sales Reconciliation 2019 2018 ($ in millions) Q1’19 FY’18 Q4’18 Q3 ‘18 Q2 ‘18 Q1 ‘18 Net Sales $417.3 $2,112.3 $474.6 $578.5 $687.8 $371.4 Organic Sales $377.3 $1,983.4 $434.2 $535.1 $653.2 $360.9 A Acquisition Contribution $40.0 $128.9 $40.4 $43.4 $34.6 $10.5

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