Slide 1: Q3 2024 Investor Presentation
Q3 2024 Investor Presentation November 5, 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 sta
Slide 3: MasterBrand Overview
MasterBrand Overview #1 North American residential cabinet manufacturer MasterBrand at a glance 1 MasterBrand key financial metrics 2 $3.5 11% 14% 15% ~65% $2.7 billion 11% 2023 Net sales Net sales to R&R $3.0 13% 11% 10% 11% $2.5 13,000+ $2.5 $2.9 $3.3 $2.7 9% Employees $2.0 $2.4 $383 million 7% 20
Slide 4: 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 5: CSR Highlights
CSR HIGHLIGHTS At MasterBrand, we have built a foundation of doing what is right for people and the environment. Our sustainability journey is ongoing, and as our associates continue to innovate, inspire and lead by example, we find more opportunities to positively impact our industry and stakeholde
Slide 6: Industry Leading Customer Base
Industry Leading Customer Base MasterBrand channel mix 1 MasterBrand has a leadership position across channels… 10% Overview of primary sales channels in the US and Canada: Dealer Retailers / Home Dealer Channel Builder Channel Retail Center Channel 33% 57% Industry Channel Builder $7.3bn $3.4bn $1.
Slide 7: Multi-Branded Strategy Across Price Points and Products
Multi-Branded Strategy Across Price Points and Products MasterBrand offers the most MasterBrand portfolio by type and key brands diverse product portfolio and covers the price spectrum 1 Price point <$350 >$750 (per cabinet) 100% Stock /In-Stock Semi-Custom Custom/Premium 90% ~19% 80% 70% ~60% ~30%
Slide 8: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
Integrated Manufacturing Network & Strong Track Record of Continuous Improvement O L D M O D E L : 10+ product platform / plant silos Footprint optimization + + + Assets Capabilities Product Specs Proven tools of our business system, enable product N E W M O D E L : 4 construction-specific produ
Slide 9: Align to Grow
Align to Grow Reduce complexity, without limiting Simplified manufacturing to fulfill market needs customer selection FA CIL ITY RATIONAL IZATION 2 1 Facilities closed Facility absorbed ~55% Plant A Plant B Consolidated manufacturing sites Achieved Reduction in Doors MA NUFACTURING FL EXIBIL ITY 1 Q
Slide 10: Lead Through Lean
Lead Through Lean Four years into our journey, we’re progressing toward our vision of being a best place to work LEAN FOUNDATION TOOLS Consistent opportunities to strengthen lean skills with 266 formal kaizen events in 2023 2025 and beyond A S S O C I A T E E NG A G E M E N T Best Place to Work Lead
Slide 11: Leveraging Data and Analytics to Unlock Shareholder Value
Leveraging Data and Analytics to Unlock Shareholder Value Simplify and Digitize our Enhance Customer Automate Backoffice Plants Experience Processes 11
Slide 12: Supreme Cabinetry Brands Acquisition Completed July 2024
Supreme Cabinetry Brands Acquisition Completed July 2024 1 Enhances MasterBrand’s Portfolio with Complementary Products in Resilient and Attractive Categories 2 Extends Diversity of Channel Distribution to Reach More Consumers Combines Best-in-Class Competencies to Win Today and Tomorrow, Enriching
Slide 13: Q3 2024 Highlights
Q3 2024 Highlights Financial Results • Net sales increased 6% driven by 9% growth from our Supreme acquisition, partially offset ($ in millions, except per share amounts) Q3 2024 Q3 2023 B/(W) by a 3% decline in organic net sales due to lower net average selling price (ASP). The impact of volume and
Slide 14: Near-Term Expectations
Near-Term Expectations Full Year 2024 Outlook1 Drivers MasterBrand • Organic net sales decline of low single-digit % and acquisition-related increase Market Growth of mid single-digit % Increase of low single-digit % • Promotional activity and trade downs to continue at a similar pace, but impact Lo
Slide 15: Long-Term Financial Targets
Long-Term Financial Targets Long Term Outlook1 Market Growth MasterBrand 3-5% CAGR 4-6% CAGR North American Cabinets Market Net Sales ~16%-18% FY Adjusted EBITDA Margin2 Clear Path to Achieving Results 1. Business and portfolio aligned with the customer 2. Operational Excellence will fuel margin gro
Slide 16: Appendix
Appendix MasterBrand: Investor Day 2022
Slide 17: 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 18: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations Fiscal Year Ended December 29, December 27, December 26, December 25, December 31, (In millions, except percentages) 2019 2020 2021 2022 2023 Reconciliation of Net Income to EBITDA to ADJUSTED Net income (GAAP) $ 100.7 $ 145.7 $ 182.6 $ 155.4 $ 182.0 Related party
Slide 19: Full Year Non-GAAP Reconciliations Tick Legend
Full Year 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 o
Slide 20: Q3 2024 Non-GAAP Reconciliations
Q3 2024 Non-GAAP Reconciliations 19 Note: See tick legend on following page
Slide 21: Q3 2024 Non-GAAP Reconciliations Tick Legend
Q3 2024 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
Slide 22: Q3 2024 Non-GAAP Reconciliations
Q3 2024 Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 Weeks Ended September 29, September 24, (U.S. Dollars presented in millions) 2024 2023 OPERATING ACTIVITIES Net income .....................................................................................
Slide 23: Prior Year to Current Year Net Sales Walk
Prior Year to Current Year Net Sales Walk 22