Slide 1: MasterBrand to Acquire Supreme Cabinetry Brands
MasterBrand to Acquire Supreme Cabinetry Brands May 21, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this Presentation, other than purely historical information, including, but not limited to estimates, projections, statements relating to our business plans objectives and expected operating results, and the assumptions upon which those stat
Slide 3: The MasterBrand Story
The MasterBrand Story OUR PURPOSE OUR VISION OUR CULTURE Building great experiences together Build on our rich history by innovating Make the team better how we work and what we offer to Be bold delight our customers Champion improvement How? Tools that enable us to: PRE-SPIN-OFF Industry Leader Pro
Slide 4: Unique Opportunity to Accelerate MasterBrand's Long-Term Financial Priorities
Unique Opportunity to Accelerate MasterBrand’s Long-Term Financial Priorities STATED LONG-TERM GOALS PRIORITIES Net Sales Operating Adj. EBITDA1 Margin Margin 1 2 3 MasterBrand: MasterBrand: MasterBrand: Re-invest in Maintain Strategic M&A 4-6% CAGR 14-16% 16-18% Business Healthy and Return Balance
Slide 5: Strategic Acquisition with Exceptionally Compelling Benefits
Strategic Acquisition with Exceptionally Compelling Benefits 1 Enhances MasterBrand’s Portfolio with Complementary Products in Resilient and Attractive Categories 2 Extends Diversity of Channel Distribution to Reach More Consumers Combines Best-in-Class Competencies to Win Today and Tomorrow, Enrich
Slide 6: Overview of Supreme Cabinetry Brands
Overview of Supreme Cabinetry Brands • Founded in 1954 and headquartered in Howard Lake, MN, Supreme Cabinetry Brands, Inc. (“Supreme”) is a highly-regarded manufacturer of premier cabinet brands • Manufacturing campuses in Iowa, Minnesota and North Carolina • Full product suite of kitchen cabinetry
Slide 7: Transaction Overview
Transaction Overview Acquisition unlocks meaningful value creation and strongly aligns with MasterBrand’s growth priorities • MasterBrand, Inc., through its subsidiary MasterBrand Cabinets, LLC, to acquire 100% of Dura Investment Holdings, the owner of Supreme, for $520 million in cash − Pre-synergi
Slide 8: Enhances MasterBrand's Portfolio and Delivery of Consumer Value and Choice
1 Enhances MasterBrand’s Portfolio and Delivery of Consumer Value and Choice Supreme Cabinetry Brands additions MasterBrand offers the most Providing an expanded suite of products to MasterBrand and diverse product portfolio, Supreme’s channel partners and end customers covering the price spectrum K
Slide 9: Extends Diversity of Channel Distribution to Reach More Consumers
2 Extends Diversity of Channel Distribution to Reach More Consumers MasterBrand serves its customers through a strategic mix of channels Acquisition enhances diversity and scale across channels, allowing end customers greater access and MasterBrand Pro forma MasterBrand flexibility to where and how
Slide 10: Combines Best-in-Class Competencies to Win Today and Tomorrow
Combines Best-in-Class Competencies to Win 3 Today and Tomorrow, Enriching Consumer Value, Product Access, and Service Our strategy to drive accelerated growth today… …becomes amplified with Supreme Diverse leadership team with Industry leader with Align-to-Grow to deliver track record of growth THE
Slide 11: Drives Augmented Financial Profile and Value Creation Via Highly Achievable Cost Synergies
4 Drives Augmented Financial Profile and Value Creation Via Highly Achievable Cost Synergies Breakdown of Estimated annual cost synergies cost synergy Supply opportunity 1 chain $28M3 18% ~$24M 12% $28M1,2 Lean process improvement & ~$10M in-sourcing 70% Operations Year 1 Year 2 Year 3 • Annual run-
Slide 12: Reinforces Opportunity for Capital Flexibility Through Strong Balance Sheet and Cash Flow
5 Reinforces Opportunity for Capital Flexibility Through Strong Balance Sheet and Cash Flow Net Debt to Adjusted EBITDA1 We Successfully De-levered Since Spin-off, and are Confident We Are Positioned to Replicate that Success 2.4x2 2.4 – 2.6x <2.0x 1.5x Standalone Standalone As of transaction close
Slide 13: Strategic Acquisition with Exceptionally Compelling Benefits
Strategic Acquisition with Exceptionally Compelling Benefits 1 Enhances MasterBrand’s Portfolio with Complementary Products in Resilient and Attractive Categories 2 Extends Diversity of Channel Distribution to Reach More Consumers Combines Best-in-Class Competencies to Win Today and Tomorrow, Enrich
Slide 14: Appendix
Appendix MasterBrand: Investor Day 2022
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”) in this presentation, certain non-GAAP financial measures as defined under SEC rules have been included. It is our intent to provide
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations MasterBrand, Inc. (Unaudited) (Unaudited) (Unaudited) 53 Weeks Ended 13 Weeks Ended 13 Weeks Ended LTM Period Ending 52 Weeks Ended December 31, March 26, March 31, March 31, December 25, (U.S. Dollars presented in millions) 2023 2023 2024 2024 2022 Net sales (GAAP) $ 2,726.
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations TICK LEGEND: [1] Separation costs represent one-time costs incurred directly by MasterBrand related to the separation from Fortune Brands. [2] Restructuring charges are nonrecurring costs incurred to implement significant cost reduction initiatives and may consist of workfor