Ufp Industries, Inc. · NASDAQ:UFPI
Ufp Industries — Investor Presentation (June 2022)
23 slides from Ufp Industries's investor presentation, Jun 8, 2022
Slide 1: No mission statements. Just people on a mission.
1 NO MISSION STATEMENTS. JUST PEOPLE ON A MISSION.
Slide 2: Forward-looking statements and non-GAAP information
2 UFP INDUSTRIES, INC. 2022 Please be aware that: Statements included in this presentation that are not historical are forward - looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations,
Slide 3: UFP at a Glance
3 40% 31% 24% 5% Based on 2021 Sales INTRODUCTION UFP AT A GLANCE Retail - $3.4B Big box, independents, & buying co - ops Construction - $2.7B Single and multi - family builders, commercial builders, concrete formers, factory - built housing (mobile & modular homes) & RVs 2022 Industrial - $2.1B Ind
Slide 4: Where We Are: Global Locations
4 INTRODUCTION WHERE WE ARE 2022 183 2 4 1 11 1 5 GLOBAL LOCATIONS 208 1
Slide 5: Value-Added Transformation
5 2022 VALUE - ADDED TRANSFORMATION
Slide 6: UFP Industries Management (R)Evolution
6 UFP INDUSTRIES MANAGEMENT (R)EVOLUTION Since our founding through 2019, we managed our people and plants regionally. Beginning January 1, 2020, we realigned our management teams to focus specifically on business segments rather than geographies. At the same time, we changed our name to better refl
Slide 7: Long-Term Financial Goals
7 BUSINESS MODEL LONG - TERM FINANCIAL GOALS 2022 Annual unit sales growth of 5 - 7 percent, including small acquisitions 10% Adjusted EBITDA margin Earn incremental ROIC on new investment greater than WACC Maintain a conservative capital structure
Slide 8: Business Segments & Product Mix Evolution: Retail
8 BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION 2022 2013 Value - added as a Percent of Sales 2013 $284m 19.0% New Products 14.9% $402m $510m 18.5% 2019 2020 2021 Note: Lumber price appreciation more significantly impacts commodity - based products compared to value - add products. Sales % of Sales Comm
Slide 9: Business Segments & Product Mix Evolution: Construction
9 BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION 2022 2013 $60m 3.7% New Products 5.0% $54m $136m 3.2% 2019 2020 2021 Sales % of Sales 2013 23.7% 81.4% 18.6% 73.0% 27.0% 76.3% Commodity Value - added 2019 2020 2021 Value - added as a Percent of Sales Note: Lumber price appreciation more significantly imp
Slide 10: Business Segments & Product Mix Evolution: Industrial
10 2022 BUSINESS SEGMENTS & PRODUCT MIX EVOLUTION 2013 $69m 6.3% New Products 8.2% $73m $177m 6.8% 2019 2020 2021 Sales % of Sales 2013 35.3% 66.2% 33.8% 67.7% 32.3% 64.7% Commodity Value - added 2019 2020 2021 Value - added as a Percent of Sales Protective Packaging Materials $19M 2021 Machine - Bu
Slide 11: Business Segments: International
11 UFP International actively trades lumber, packaging and building materials in 65 countries to supply local and multinational customers across major markets. Additionally, UFP has manufacturing and distribution facilities in Canada, Mexico, Italy, Australia and India to support our efforts as a gl
Slide 12: Business Model: Acquisitions
12 BUSINESS MODEL ACQUISITIONS 2022 PROCESS Identify attractive growth runways in each Business Unit under each Business Segment and identify gaps in our capabilities to pursue those runways. PURPOSE Find new products and services to speed our transformation from commodity sales to value - added sel
Slide 13: A Unique Culture Built for Good Times and Bad
13 BUSINESS MODEL A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD 2022 Strong Balance Sheet Return - focused approach to capital allocation. Capital reserves used opportunistically. Average management team tenure: 23 years. 67 straight years of profitability. Every plant is a profit center and all emp
Slide 14: Financials
A) UFP INDUSTRIES FINANCIALS
Slide 15: Managing Lumber Market Risk to Earn a Stable Profit Per Unit
15 MANAGING LUMBER MARKET RISK TO EARN A STABLE PROFIT PER UNIT 2022 Level of lumber prices affects gross profit and SG&A to sales ratios Sequential trends affect profit per unit Balanced mix of variable and fixed - price products mitigate risk. 1112 1225 1321 1051 948 890 954 1035 1080 1428 1344 69
Slide 16: Financials: Net Sales
16 $3,941 $4,489 $4,416 $5,154 $8,636 15% 6% 6% 6% 28% 4% 3% 5% 5% 4% 11% 3% 1% 1% 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 FINANCIALS 2022 NET SALES Acquisition Unit Sales Growth Organic Unit Sales Growth Total Unit Sales Gr
Slide 17: Financials: Unit Sales and Profit Growth
17 15% 6% 6% 6% 28% 14% 9% 16% 17% 76% 13% 12% 19% 36% 94% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2017 2018 2019 2020 2021 FINANCIALS UNIT SALES AND PROFIT GROWTH 2022 Percent Growth Long - Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth. Non - GAAP Financial Information:
Slide 18: Financials: Adjusted EBITDA
18 $238 $266 $317 $431 $835 6.0% 5.9% 7.2% 8.4% 9.7% 5% 6% 7% 8% 9% 10% 11% 12% 13% $- $100 $200 $300 $400 $500 $600 $700 $800 $900 2017 2018 2019 2020 2021 FINANCIALS Adjusted EBITDA 2022 Long - term goal: Achieve and sustain a 10% adjusted EBITDA margin. Non - GAAP Financial Information: Please cl
Slide 19: Financials: Return on Invested Capital
19 13.2% 14.0% 15.1% 21.0% 32.2% 0% 5% 10% 15% 20% 25% 30% 35% 2017 2018 2019 2020 2021 FINANCIALS RETURN ON INVESTED CAPITAL 2022 Percent Hurdle Rate = 12% WACC = 10% Long - term goal: Earning an incremental return on new investment over our cost of capital. Non - GAAP Financial Information: Please
Slide 20: Financials: Capital Structure
20 11.8% 11.5% 12.4% 0.0% 10.2% 12.8% 15.7% 0.0% 0.0% 2.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1.10 0.80 0.72 - 0.46 0.60 0.80 - - 0.06 0.0 0.5 1.0 1.5 2.0 2.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FINANCIALS CAPITAL STRUCTURE 2022 Net
Slide 21: Balanced Use of Free Cash Flow
21 BALANCED USE OF FREE CASH FLOW 2022 Acquisitions to contribute half of our total annual unit sales growth Opportunistic share repurchases to offset issuances CapEx plan of $175M to $225M in 2022 Increasing dividends $349 $337 $513 $25 $31 $40 $85 $89 $151 $29 $39 $65 $476 Acquisitions Share Buyba
Slide 22: Financials: Q1 2022
22 FINANCIALS 2022 Q1 2022 Non - GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. Q1 Q4 Q3 Q2 Q1 Net Sales (in billions) $2.5 $2.0 $2.1 $2.7 $1.8 Q1 Q4 Q3 Q2 Q1 Adj. EBITDA & Margin (in millions) $292 $223 $187 $261 $163 10 % 25 % 13 % 47 % 33 % 3 % 5 % -
Slide 23: Thank You
23 2801 E. Beltline Ave. NE Grand Rapids, MI 49506 (800) 598 - 9663 - UFPI.com THANK YOU.