American Woodmark Corporation · NASDAQ:AMWD

American Woodmark — Merger or Acquisition (December 2017)

17 slides from American Woodmark's merger presentation, Dec 1, 2017

  1. Slide 1: American Woodmark's Acquisition of RSI Home Products

    American Woodmark’s Acquisition of RSI Home Products December 1, 2017

  2. Slide 2: Forward Looking Statements

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 2 Forward Looking Statements This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements as to the anticipated timing of completion of the pr

  3. Slide 3: Today's Presenters

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 3 Today’s Presenters Cary Dunston – Chairman and Chief Executive Officer Scott Culbreth – Sr. Vice President and Chief Financial Officer

  4. Slide 4: Cabinetry Market is Large and Growing

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 4 Cabinetry Market is Large and Growing $12.7 $17.3 2014 2019 U.S. Cabinet Industry ($ in billions)  Housing market still recovering with continued release of pent-up demand driving future growth  Deferred R&R spending from the recession beg

  5. Slide 5: AWC Expansion Strategy

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 5 AWC Expansion Strategy Combination of American Woodmark and RSI aligns with communicated strategy P ri c e Content & Platform Complexity In S toc k St oc k Sem i- Cus to m Cus to m Stock Plus AWC’s Current Position

  6. Slide 6: Transaction Overview

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 6 Transaction Overview Consideration ¡ Implied transaction value of $1.075 billion funded with: – Approximately $346 million in net cash to be paid to RSI shareholders – $140 million in American Woodmark common stock to be issued to RSI shareh

  7. Slide 7: RSI Home Products Inc.

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 7 RSI Home Products Inc. A Proven Market Leader Within The In-Stock and Value-Based Cabinetry Market

  8. Slide 8: RSI Home Products Overview

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 8 RSI Home Products (“RSI”) Overview Key Strengths ~$560M in revenue ~22% Adj. EBITDA margin(1) ~4K retail customer locations 9 manufacturing and distribution facilities 3M+ square feet of manufacturing and distribution space ~4,300 dedicated

  9. Slide 9: RSI's Strong Reputation and Complementary Product Portfolio

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 9 RSI’s Strong Reputation and Complementary Product Portfolio Broad range of value-focused solutions for the Kitchen, Bath and Organization segments Product Category Kitchen Solutions Bath Solutions Home Organization Product Offering In-Stock

  10. Slide 10: The "New" American Woodmark

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 10 The “New” American Woodmark Improved diversification and positioned for growth

  11. Slide 11: Expanding Margin Profile of American Woodmark

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 11 12.5% 11.8% 13.2% Pro Forma 16.7% Expanding Margin Profile of American Woodmark  Highly-efficient engineering and manufacturing techniques to drive “Value In” to products while taking “Costs Out” ― Continuous reengineering of products and

  12. Slide 12: Nationwide Manufacturing and Distribution Footprint

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 12 Nationwide Manufacturing and Distribution Footprint AMWD Service Centers RSI Sales Offices AMWD HQ RSI HQ AMWD Manufacturing Provides broad North American footprint with extensive capabilities and operating flexibility RSI Manufacturing Map

  13. Slide 13: Creating a Larger and More Diversified Platform

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 13 Greater Scale (Revenue $mm) Balanced Revenue Base Diverse Business Mix Home Center 55% New Construction 38% Dealers / Others 7% Creating a Larger and More Diversified Platform $1,059 $1,622 $563 _____________________ Source: American Woodma

  14. Slide 14: Financing and Liquidity

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 14 Financing and Liquidity Pro Forma Balance Sheet Financing  Implied transaction value of $1.075 billion  Financing structure ― Net cash: $346 million ― Debt assumed: $589 million(1) ― New AMWD common stock: $140 million (2)  American Wood

  15. Slide 15: Compelling Strategic Combination

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 15 Compelling Strategic Combination Strategic combination will drive long-term shareholder value (1) Excludes anticipated synergies. Continued commitment to creating value through people Solidifies American Woodmark’s position as an industry

  16. Slide 16: 212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 16 13

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 16 13

  17. Slide 17: Reconciliation of Non-GAAP Measures

    212 6 6 23 65 39 71 71 71 147 149 152 5 42 125 140 10 10 17 Calendar Year Ending December 31, 2017 AMWD (1) RSI (2) Pro Forma Net Income $72.0 $41.4 $113.4 Interest Expense (1.8) 39.0 37.2 Income Taxes 36.5 21.4 57.9 Depreciation & Amortization 21.2 16.8 38.0 Other(3) 2.7 4.4 7.1 Adj. EBITDA 130.5 1

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