Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Investor Presentation (December 2019)
17 slides from Simpson Manufacturing's investor presentation, Dec 19, 2019
Slide 1: Off-Season Shareholder Engagement
Off-Season Shareholder Engagement STRENGTH BUILT IN December | 2019
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 2 IE of the Securities Exchange Act of 1934, as amended. Forward- looking statements genera
Slide 3: Investment Highlights
Investment Highlights Industry leader with unique business model, strong brand recognition and trusted reputation Diversified product offerings and geographies mitigates exposure to cyclical U.S. housing market Strong market share in wood products with significant opportunities in all addressable ma
Slide 4: Company Overview
Company Overview Simpson Manufacturing Co. designs, engineers and manufactures structural connectors, anchors, fasteners, software solutions and other products for new construction, repair and remodel, and do-it-yourself markets Wood Construction Products Concrete Construction Products Simpson Manuf
Slide 5: 5-Year Relative Total Shareholder Return
5-Year Relative Total Shareholder Return Stock performance reflects clarity surrounding business strategy, growth prospects and operational efficiencies % CHANGE YTD TSR 1 YEAR TSR 3 YEAR TSR 5 YEAR TSR Simpson 52% 41% 80% 165% Manufacturing Proxy Peers 50% 30% 25% 77% SSD: +165% S&P 500 28% 16% 52%
Slide 6: Strong Business Drives Stockholder Value
Strong Business Drives Stockholder Value A Unique Business Model… Enables Us to Deliver Value to Shareholders The Board employs a balanced capital allocationstrategy Aside from our strong brand recognition and trusted that utilizes free cash flow to grow the business through reputation, Simpson is u
Slide 7: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Simpson has established a current target capital return to stockholders of a minimum of 50% of cash flows from operations through both dividends and repurchases of its common stock • Improve cash flow through better management of working Cash Flow from capital
Slide 8: 2020 Plan
2020 Plan(1) KEY OBJECTIVES FY 2016 Actual 2020 PLAN As of 3Q 2019(2) FOCUS ON ORGANIC 1 GROWTH • $861M Net Sales • ~8% Organic Net Sales ~10% Organic Net Sales CAGR CAGR through fiscal 2019 • 31.8% Operating • ~26% - 27% Operating 27.2% Operating Expenses RATIONALIZE COST Expenses as a % of Net
Slide 9: Independent and Diverse Board
Independent and Diverse Board Our Board is committed to being effective stewards of shareholder capital and possesses the diversity of skills and experiences to oversee the business James Andrasick Jennifer Chatman Karen Colonias Chairman Former CEO Paul J. Cortese Professor of Mgmt. President & CEO
Slide 10: Robust Board Evaluation Process
Robust Board Evaluation Process Our Board’s rigorous evaluation process allows us to continue to attract and retain directors with the skills and experiences necessary to successfully oversee the Company’s strategy Board Evaluation Process Director Skills and Expertise The Board seeks to achieve a m
Slide 11: Board Responsiveness to Shareholder Feedback
Board Responsiveness to Shareholder Feedback The Board and management conduct ongoing broad outreach to our shareholders to seek feedback on our executive compensation program and governance practices In response to feedback requesting increased environmental and social disclosure, we plan to pu
Slide 12: 2019 Executive Compensation Program
2019 Executive Compensation Program After a period of transition, 2018 was the first year where all changes to our compensation program were fully implemented. The Board was pleased that shareholders voted to support the compensation plan with >98% support and therefore, the Compensation Committee d
Slide 13: Environmental and Safety Sustainability
Environmental and Safety Sustainability We are committed to protecting the environment of our employees, customers and the communities we operate in FOCUS AREAS PHILOSOPHY We do not manufacture steel or any other materials. We operate in a way that does not Manufacturing Process produce regulated ex
Slide 14: Supporting our Employees
Supporting our Employees Our Board is focused on fostering a supportive corporate culture that promotes leadership opportunities and diversity Simpson’s Culture Leadership Programs Our distinct culture is made up of the unique • We care deeply about our employees’ opportunities to thrive and succeed
Slide 15: Robust Board Oversight of Risk Management
Robust Board Oversight of Risk Management Our Board is actively involved in overseeing the Company’s risk management, regularly reviewing information regarding operational, financial, legal and strategic risks to ensure that shareholders’ investments are protected for the long term Board of Director
Slide 16: Return on Invested Capital ("ROIC") Definition
Return on Invested Capital (“ROIC”) Definition When referred to in this presentation, the Company’s return on invested capital (“ROIC”) for a fiscal period is calculated based on (i) the net income of the last four quarters as presented in the Company’s condensed consolidated statements of operation
Slide 17: Simpson's People Make the Difference
SIMPSON’S PEOPLE MAKE THE DIFFERENCE simpsonmfg.com/financials 17
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