Azek — Merger or Acquisition (March 2025)
27 slides from Azek's merger presentation, Mar 24, 2025
Slide 1: Creating a Leading Building Products Growth Platform
Creating a Leading Building Products Growth Platform MARCh 24, 2025
Slide 2: Cautionary Disclosure Regarding Forward-Looking Statements
Cautionary Disclosure Regarding Forward-Looking Statements Statements in this presentation, including statements regarding the proposed acquisition of The AZEK Company Inc. (“AZEK”) by James Hardie Industries plc (“JHX”), that are not historical facts are “forward-looking statements” within the mean
Slide 3: Today's Speakers
Today’s Speakers Aaron Erter CHIEF EXECUTIVE OFFICER Jesse Singh CHIEF EXECUTIVE OFFICER Rachel Wilson CHIEF FINANCIAL OFFICER
Slide 4: Combining World-Class Talent Dedicated to Providing Winning Solutions
Combining World-Class Talent Dedicated to PROVIDING WINNING Solutions ACROSS THE CUSTOMER VALUE CHAIN
Slide 5: Creating a Leading Building Products Growth Platform
Logos Together Logos Creating a Leading Building Products Growth Platform Creates a leading exterior and outdoor living growth platform Accelerates material conversion- led growth Provides customers a comprehensive solution of leading exterior brands Delivers best-in-class financial profile and broa
Slide 6: Highly Compelling Financial Benefits
Highly Compelling Financial Benefits Residential business segment On a standalone basis for the 12 months ended 12/31/2024, as presented by James Hardie or AZEK, as applicable 7-Year CAGR represents compound annual growth rate for the seven years up to and including the most recent completed fiscal
Slide 7: Delivering Significant Shareholder Value Creation
Delivering Significant Shareholder Value Creation Compelling Combined Company Financial Impact… … Drives Significant Value Creation Will materially enhance James Hardie's growth over the next five years AZEK’s top-line growth rate has outpaced James Hardie historically Net sales growth expected to a
Slide 8: Transaction Overview
Transaction Overview Consideration Stock and cash combination of James Hardie (“JHX” or the “Company”) and The AZEK Company (“AZEK”); AZEK shareholders to receive: $26.45 in cash for each share of AZEK common stock they own (~47% of consideration) 1.0340 ordinary shares of James Hardie to be listed
Slide 9: James Hardie is a Leading Exterior Products Solutions Provider in North America
James Hardie is a Leading Exterior Products Solutions Provider in North America
Slide 10: James Hardie At a Glance
James Hardie At a Glance A Leading Siding Brand in North America & Globally Key products / applications: Fiber cement (siding, cladding, etc.) Fiber gypsum and cement-bonded boards Compelling material conversion growth story with significant runway in an attractive ~$10B segment in North America Hom
Slide 11: James Hardie Beautiful & Resilient Solutions
JAMES HARDIE Beautiful & Resilient Solutions We bring our customers beautiful, resilient and innovative solutions for any climate. Climate Resilience Only Hardie® products are Engineered for Climate® to ensure you get unmatched protection and performance. Hardie® siding stands up to harsh weather si
Slide 12: James Hardie Has Large Runway for Material Conversion
James Hardie Has Large Runway for Material Conversion Homeowner Focused, Customer and Contractor Driven™ Creating demand across the customer value chain The brand of choice for homeowners, customers & contractors Providing customers with innovative product solutions Trusted brand with compelling aes
Slide 13: Industry Leading Brands Position AZEK to Capture Opportunities and Accelerate Growth
Industry Leading Brands Position AZEK to Capture Opportunities and Accelerate Growth Decking Pergolas Fasteners Railing Porch Lighting Logos Azek Logos Azek Logos Trim & Moulding Cladding Shingle Siding Beadboard Column Wraps Board & Batten Deck, Rail & Accessories ~74% OF SALES1 ~26% OF SALES1 Home
Slide 14: AZEK At a Glance
AZEK At a Glance Proven value creation strategy, focused on material conversion, product innovation, multi-channel expansion and consumer journey Leading brands, including TimberTech decking and railing, AZEK Exteriors and Versatex trim, StruXure pergolas Multi-year track record of delivering above
Slide 15: AZEK Participates in Attractive and Growing Categories
AZEK Participates in Attractive and Growing Categories Logos Pressure Treated Wood Decking Outdoor Living Popularity and Repair & Remodel Emphasis Wood Conversion to AZEK Material Types Fuels Growth OUTDOOR LIVING SPACES RANKED #1 in Popularity Amongst Architects for the past 10 years (AIA Survey) D
Slide 16: Material Conversion Opportunity in Decking
Based on research, AZEK believes that wood alternative decking could reach ~50% of decking opportunities share over the next 10-15 years and up to 75% over time (vs. today’s ~24%) 2014 2018 2019 2023 Next ~10-15 Years Material Conversion Opportunity in Decking Long-Term Material Conversion Opportuni
Slide 17: Creates a Leading Building Products Growth Platform
Creates a Leading Building Products Growth Platform Logos Azek Logo James Hardie Logo James Hardie Logo James Hardie Bringing Together Two Leaders with Complementary Product Offerings… … to Accelerate James Hardie’s Growth Strategy and Drive Value James Hardie is a leading siding brand in North Amer
Slide 18: Both Brands Deliver on Pros' Needs and Desires
Both Brands Deliver on Pros’ Needs and Desires Known for being an innovator Sustainable brand Good value for money Best / longest warranty Great customer service Lots of color options 89% 89% 85% 81% 85% 82% 81% 81% 86% 84% 81% 79% BASED ON THIRD-PARTY RESEARCH SURVEY TO PROFESSIONAL CONTRACTORS DES
Slide 19: Accelerates Material Conversion-Led Growth
Accelerates Material Conversion-Led Growth Large Material Conversion Opportunity to Fuel Growth Logos James Hardie James Hardie SIDING ~78% Remaining conversion opportunity by volume in new construction DECKING ~76% Remaining conversion opportunity by volume RAILING ~63% Remaining conversion opportu
Slide 20: Brands of choice for homeowners, customers and contractors
Brands of choice for homeowners, customers and contractors Integrated full-wrap solution, segmented commercial approach, including targeted marketing across customer value chain Localized scale & manufacturing Beautiful, resilient and easy-to-install products with reduced maintenance and lower lifec
Slide 21: Provides Customers a Comprehensive Solution of Leading Exterior Brands
Logos Provides Customers a Comprehensive Solution of Leading Exterior Brands Innovative products for the exterior Plank Board Board & Batten Panels Trim & Mouldings Soffit Shingle Column Wraps Decking Railings Pergolas
Slide 22: Delivers Best-in-Class Financial Profile
Delivers Best-in-Class Financial Profile Logos Accelerates growth rate, delivers peer-leading profitability and generates robust cash flow Advances value creating capital allocation initiatives Invest in organic growth Deleveraging Fund ongoing share repurchase $5.9B NET SALES1 $1.8B+ ADJUSTED EBITD
Slide 23: Unlocks Significant Value Through Synergies
Unlocks Significant Value Through Synergies Supported by detailed analysis, full run-rate cost synergies will be realized by the end of fiscal year 2028 Logos A solid baseline of clear and credible cost synergies… …Supplemented with tangible commercial synergies Accelerates current strategy Expand f
Slide 24: Strong Underlying Drivers to Achieve Synergies
Strong Underlying Drivers to Achieve Synergies COMMERCIAL Synergies Significant cross-selling opportunity across James Hardie & AZEK products and channels 80% OF CONTRACTORS SAY COMBINED OFFERING OF DECKING AND SIDING FROM A SINGLE MANUFACTURER IS VALUABLE2 ~55% OF SIDING CONTRACTORS ALSO DO DECKING
Slide 25: Integration Planning Process
Integration Planning Process Highly collaborative approach with dedicated team members from both companies Overseen by executive team with a track record of M&A success Rigorous integration and value capture planning process to be supported by best-in-class advisors Laser focus on delivering cost-sy
Slide 26: Creating a Leading Building Products Growth Platform
Logos Together Logos Creating a Leading Building Products Growth Platform Creates a leading exterior and outdoor living growth platform Accelerates material conversion- led growth Provides customers a comprehensive solution of leading exterior brands Delivers best-in-class financial profile and broa
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBIT and Adjusted EBITDA US$ Millions Q2 2024 Q3 2024 Q4 FY24 Q1 FY25 12-month period ended 12/31/24 Net Income $49.8 $50.1 $28.4 $18.1 $146.4 Interest expense, net 8.7 7.9 15.8 7.7 40.0 Depreciation 22.3 22.0 23.5 24.3 92.2 Amortization 9.9 9.8 9.6 8.7 38.0 Inco