Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — 12th Annual J.P. Morgan Homebuilding & Building Products Conference 2019
26 slides from Jeld-wen's conference presentation, May 15, 2019
Slide 1: 12th Annual J.P. Morgan Homebuilding & Building Products Conference
12TH ANNUAL J.P. MORGAN HOMEBUILDING & BUILDING PRODUCTS CONFERENCE May 15, 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) 25% $465 CAGR 5% $4.3 CAGR $3.5 $153 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 7 |
Slide 8: Progress in Building Powerful Cash Flow Engine
PROGRESS IN BUILDING POWERFUL CASH FLOW ENGINE Free Cash Flow ($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 1 Accelerate Top Line Growth 2 Expand Margins 3 Disciplined Capital 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 10.7% 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) $ (68.4) $ (84.1) $ 90.9 $ 377.2 $ 10.8 $ 144.3 Adjustments: Loss (income) from discontinued operations, net of tax 5.9 5.4 2.9 3.3 - - Gain (loss) on
JELD-WEN Holding — 12th Annual J.P. Morgan Homebuilding & Building Products Conference 2019 on 6ix