Fortune Brands Innovations, Inc. · NYSE:FBIN
Fortune Brands Innovations — Investor Presentation (December 2023)
44 slides from Fortune Brands Innovations's investor presentation, December 2023
Slide 1: Unique Company With A Unique Opportunity
FORTUNE BRANDS INNOVATIONS + CONNECTED PRODUCTS UNIQUE COMPANY WITH A UNIQUE OPPORTUNITY December 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS • This presentation contains certain “forward-looking statements” made within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include all statements that are not historical statements of fact and those regarding our intent, b
Slide 3: In This Deck
IN THIS DECK • Fortune Brands Innovations’ Transformation And Growth Drivers • Connected Products as a Growth Driver • Our Unique Connected Product Opportunities 3
Slide 4: Why Invest in Fortune Brands Innovations
WHY INVEST IN FORTUNE BRANDS INNOVATIONS Leading Positions in Proven Growth Newly Aligned Growth Categories Engine with Defined Organization Driving with Long-term Path to Long-Term Significant Growth Secular Tailwinds Value Creation and Efficiencies Successful Track Strong Financial Meaningful and
Slide 5: Leading Brands
LEADING BRANDS #1 #1 #1 #1 #3 #1 #1 consumer luxury K&B fiberglass entry storm doors composite mechanical fire faucets fixtures among doors among decking padlocks safes designers builders Claims based on North American data 5
Slide 6: Large and Proven Growth Categories
LARGE AND PROVEN GROWTH CATEGORIES WATER OUTDOORS SECURITY $20B $25B $30B N.A. Residential TAM N.A. Residential TAM N.A Residential TAM $15B $15B $45B N.A. Commercial TAM N.A. Commercial TAM N.A. Commercial TAM 6
Slide 7: The Recent Evolution of Fortune Brands Enables Our Focus on Connected Products
THE RECENT EVOLUTION OF FORTUNE BRANDS ENABLES OUR FOCUS ON CONNECTED PRODUCTS Cast a wide net for all things “housing,” Focused on leading brands, innovation resulting in a broad portfolio and channel positions in segments with growth tailwinds Decentralized and siloed Leaner and aligned; increased
Slide 8: Newly Aligned Structure Will Drive Growth, Efficiency & Results
NEWLY ALIGNED STRUCTURE WILL DRIVE GROWTH, EFFICIENCY & RESULTS IN CONNECTED PRODUCTS AND BEYOND CEO Matrix Organization Matrix Organization Commercial Transformation Growth & Digital Finance HR Supply Chain Legal Business Management House Moen NA WINN Asia Outdoors Security Manufacturing Sourcing o
Slide 9: Recent Acquisition of Yale and August Assets Is a Transformative Growth Accelerant
RECENT ACQUISITION OF YALE AND AUGUST ASSETS IS A TRANSFORMATIVE GROWTH ACCELERANT DIGITAL & CONNECTED SMART ENTRY CAPABILITIES AT SCALE Fortune Brands Innovations’ existing assets combined with the acquired assets uniquely positions us to deliver first-to- market and scaled solutions. THERMA-TRU DO
Slide 10: Growth Potential Is Driven by Long-Term Secular Tailwinds
GROWTH POTENTIAL IS DRIVEN BY LONG-TERM SECULAR TAILWINDS CONNECTED WATER MATERIAL OUTDOOR SUSTAINABILITY PRODUCTS MANAGEMENT CONVERSION LIVING & SAFETY 10
Slide 11: Connected Products
GROWTH POTENTIAL IS DRIVEN BY LONG-TERM SECULAR TAILWINDS Today’s focus: CONNECTED PRODUCTS 11
Slide 12: Global Smart Safety and Security and Energy and Water Market Will Be $100B by 2030
ESTIMATES INDICATE THE GLOBAL SMART SAFETY AND SECURITY AND ENERGY AND WATER MARKET WILL BE $100B BY 2030 Global Smart Home Market1 Global Smart Home Market by Device Type1 Consumer Electronics Safety & Security $338B +20% Climate Control Lighting Control ~$100 billion1 CAGR Energy & Water Control p
Slide 13: Digital Transformation at FBIN
DIGITAL TRANSFORMATION AT FBIN Moen Flo Smart Water Moen Smart Water Smart Water Network Monitor and Shutoff Network launches expands its ecosystem with new Moen Smart Irrigation Master Lock connected Fortune Brands establishes Acquisition of Yale, August, access solution for remote, Moen Smart Mast
Slide 14: FBIN Has Made Early Progress in Connected Products
FBIN HAS MADE EARLY PROGRESS IN CONNECTED PRODUCTS, WITH MUCH MORE OPPORTUNITY AHEAD Setting the stage OPPORTUNITY EARLY PROGRESS ahead ↑ ~3x $1B growing to $5B+ FBIN connected product sales nearly tripled from 2020 to 2022 ~4 million Connected User Lifetime Activations, as of Q3 2023 Sales data doe
Slide 15: Connected Water Opportunity, Beginning with Moen Flo
CONNECTED WATER OPPORTUNITY, BEGINNING WITH MOEN FLO SMART WATER MONITOR AND SHUTOFF Household penetration + right to win = breakout business 90M + Housing Units 15% Potential + Market Penetration 35% Potential Moen Share = ~$1B Potential Future Sales 15 15
Slide 16: Connected Security Opportunity: Greater Scale and Connected Footprint
CONNECTED SECURITY OPPORTUNITY: GREATER SCALE AND CONNECTED FOOTPRINT 2022 2030 <2% Connected 40% Connected Products Products Approximate sales from Potential sales from connected products connected products We’re leveraging connected products expertise across security, with attention to: Connected
Slide 17: FBIN Is Uniquely Positioned to Capture Growth
FBIN IS UNIQUELY POSITIONED TO CAPTURE GROWTH • Incumbent strengths Leading, trusted brands to attract consumers and pros • Start-up mentality Forward-thinking; disrupt or be disrupted outlook = FBIN • Focused on Brands, Innovation and Channel • Insights across the • Meaningful innovation • Newly al
Slide 18: Connected Water
CONNECTED WATER
Slide 19: Flo Smart Water Monitor and Shutoff: Hub of Connected Water Network
FLO SMART WATER MONITOR AND SHUTOFF: THE HUB OF OUR CONNECTED WATER NETWORK Homeowners can monitor their water usage, detect small leaks in their pipes, and automatically shut off their water supply before a catastrophic leak damages their home. 19
Slide 20: Improving Water Experiences with the Moen Smart Water Ecosystem
IMPROVING WATER EXPERIENCES WITH Smart Smart THE MOEN SMART Shower Faucet WATER ECOSYSTEM Smart Smart Water Irrigation Shutoff Smart Sump Smart Water Pump Monitor Detector 20 20
Slide 21: Smart Water App
SMART WATER APP • Whole-home monitoring 24/7 • Water security and safety • Notifications and alerts • Track water usage and conservation goals • Control your smart water products from anywhere • Customization and personalization 21
Slide 22: Moen Differentiation
MOEN DIFFERENTIATION • Moen’s brand strength, omni-channel expertise, global supply chain, digital factory and patent ring-fence provide competitive advantages in the emerging water security market • Advantages that Moen has compared to other home water management device makers include: Automated sh
Slide 23: Strong Reception
STRONG RECEPTION THIS IS THE BEST INVENTION EVER! IT SAVED US FROM A HUGE FLOOD cannot recommend enough!!! When we came home and turned the water back on, there was a leak but because Moen Flo caught it and turned our AWARDS INCLUDE: water off for us, it saved everything!!!! NO HOUSE SHOULD BE WITHO
Slide 24: Opportunities to Win, Win, Win, Win
OPPORTUNITIES TO WIN, WIN, WIN, WIN Connected Water: Good for homes. Good for business. Good for the Planet. 24
Slide 25: Water Damage Is More Common Than People Think
IMPACTS FOR PEOPLE WATER DAMAGE IS MORE COMMON THAN PEOPLE THINK 7x 40% 95% more likely have suffered underestimate 7x more likely for 40% of homeowners have 95% of consumers homeowners to file an suffered from water damage1 underestimate the likelihood insurance claim for water of water damage vs.
Slide 26: Water Damage Puts Strain on Home Insurers
IM PACT S FOR BUS IN ES S WATER DAMAGE PUTS STRAIN ON HOME INSURERS 1 in 6 ~$15 billion $10,500 homes The average home insurance claim file a claim for water damage Each year, insurance companies have for water damage1 over ten years1 approximately $15 billion in water damage1, of which a significan
Slide 27: There Is Simply No Way to Overstate the Water Crisis
IMPACTS FOR PLANET “THERE IS SIMPLY NO WAY TO OVERSTATE THE WATER CRISIS OF THE PLANET TODAY.” Maude Barlow, author and activist 27
Slide 28: Leaks Contribute Significantly to Water Waste
IMPACTS FOR PLANET LEAKS CONTRIBUTE SIGNIFICANTLY TO WATER WASTE • 10% of homes have leaks that waste 90 gallons or more per day1 • 1 slow leak (1 drip per second ) amounts to over 3,100 gallons wasted per year2 • The average American home wastes more than 10,000 gallons of water every year due to l
Slide 29: Mission Moen Helps Raise Awareness About Products That Can Help
IMPACTS FOR PLANET MISSION MOEN HELPS RAISE AWARENESS ABOUT PRODUCTS THAT CAN HELP Our core products will drive meaningful water savings. Our connected products can change the game. Mission Moen is our ambitious commitment to create innovative water-saving products with a goal of allowing end-users
Slide 30: Flo by Moen Can Help Consumers Reduce Water Consumption
IMPACTS FOR PLANET FLO BY MOEN CAN HELP CONSUMERS REDUCE WATER CONSUMPTION Menu Button The Moen App helps users see how much water they’re using, and to set conservation goals. Total water usage (Daily/Weekly) Visual water goal Monthly total Leaks and flooding from severe weather not included in “pr
Slide 31: Water Is Climate
IMPACTS FOR PLANET WATER IS CLIMATE • The collection, distribution, and treatment of drinking This study, published in the journal Environmental water and wastewater nationwide consume tremendous Research Letters, shows that amounts of energy, adding CO2 emissions and Customer-focused water conserva
Slide 32: Energy
IMPACTS FOR PLANET in EN ER GY 4.7 METRIC TONS of carbon dioxide avoided The equivalent to greenhouse gas emissions from 1 million gasoline-powered passenger vehicles driven for one year
Slide 33: Connected Water Adoption: A Matter of When, Not If
IMPACTS FOR FBIN CONNECTED WATER ADOPTION: A MATTER OF WHEN, NOT IF We continue to improve our product and consumers’ experience • Our AI-enabled product is constantly learning and getting more accurate • The more users in our Moen Smart Water Network, the more data and insights we have that improve
Slide 34: Connected Security
Cs ECTED SECURITY A Fortune Brands ww Innovations
Slide 35: Master Lock Connected Security Products: Smart. Simple. Secure.
MASTER LOCK CONNECTED SECURITY PRODUCTS: SMART. SIMPLE. SECURE. Innovative Features Include: • Efficiently manage access to ensure the right users have the right access Master Lock’s integrated software • Simplify security set-up with platform enables you to grant bulk user and lock uploads access t
Slide 36: Examples of Where Master Lock Vault Enterprise Is Being Used
EXAMPLES OF WHERE MASTER LOCK VAULT ENTERPRISE IS BEING USED TO PROVIDE CONNECTED, PORTABLE SECURITY Real Estate Property Management Industrial Municipalities Airports Utilities 36
Slide 37: Enhanced Security
IM PACT S FOR BUS IN ES S ENHANCED SECURITY • With Master Lock commercial solutions, no keys to lose, no combinations to forget, no unauthorized key duplications • Easy and secure access • Increased accountability and tracking • Opportunities to work more efficiently and save money “ Southwest Airli
Slide 38: Smart Access from Yale & August
SMART ACCESS FROM YALE & AUGUST Convenience and Peace of Mind, From Brands You Can Trust. Giving You More Ways to Key-Free Unlock using the keypad, Auto-Unlock, Wi-Fi access on the app, your unique fingerprint and now, even Apple home keys. Smart Lock Solutions for Every Door Our portfolio covers a
Slide 39: Security, Beyond the Front Door
SECURITY, BEYOND THE FRONT DOOR Smart Locks Multi-Family Smart Storage Partners Convenient, and secure, key-free access Keyless access for renters and property Smart security for personal August and Yale work with leading to your home or rental property. managers – from common areas to belongings, d
Slide 40: 4.5+ Star Smart Lock Apps
4.5+ STAR SMART LOCK APPS = 2530 Maple St ACTIVITY © Front Door closed <5 Front Door opened © Front Door closed £5 Front Door opened 1» © Fron 000: Auto Unlocked Q Fortune Brands Innovations 2530 Maple’ St, FRONT DOOR Sd Ba hUCUg «es pen | Unlocked access 40
Slide 41: Added Convenience and Peace of Mind
IMPACTS FOR PEOPLE ADDED CONVENIENCE AND PEACE OF MIND • Codes Over Keys - Never worry about getting locked out of your home because of lost keys. • No More Hiding Keys – Assign friends, family and trusted service people a unique entry code so they can let themselves in. • Added Security – Keyless s
Slide 42: FBIN Is Uniquely Positioned to Capture Growth
IMPACTS FOR FBIN FBIN IS UNIQUELY POSITIONED TO CAPTURE GROWTH Consumers and businesses appreciate the value proposition of connected security • Currently, roughly 10% of U.S. homes are smart home smart lock households, and expect 1 million more smart lock households each year in the U.S. for next f
Slide 43: Future Opportunity: Smart Entry
FUTURE OPPORTUNITY: SMART ENTRY • Leading residential entry doors • Leading residential smart locks • Strong brand recognition • Teams focused on innovation • Investments and capabilities of a nearly $5 billion dollar company • Dedicated connected product teams 43
Slide 44: Unique Company With A Unique Opportunity
FORTUNE BRANDS INNOVATIONS + CONNECTED PRODUCTS UNIQUE COMPANY WITH A UNIQUE OPPORTUNITY 44
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