Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 10, 2022 DAVE FLITMAN, President & CEO • PETER JACKSON, CFO
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other s
Slide 3: Base Business Expectations for 2022E Aligned with Long Term Plan
Base Business 1 Expectations for 2022E Aligned with Long Ter m Plan …The Majority of Our EBITDA Growth is Driven by Value-Added Over 60% of BFS’s Base Business1 is Non-Commodity… Products and Sustainable Operations Improvement / Synergy Base business Commodity <>$400mbf Base Business CAGR Windows, D
Slide 4: Invest With Us: 2021E to 2025E Base Business Targets
Invest With Us 1 2 3 4 2021E to 2025E Base Business Targets1 ~10% ~15% ~50bps Adj. EBITDA Margin Net Sales CAGR Adj. EBITDA CAGR Expansion Annually Deployable Capital of $7B to $10B from 2022E to 2025E 1 Key assumptions: Single-family housing starts growth of LSD to MSD through 2025, base business e
Slide 5: 15% Core Organic Growth in Q1
15% Core Organic Growth in Q1 Net sales bridge (Q1 2022 compared to Q1 2021) ($M) Q1 2021 Non-Commodity Commodity Q1 2022 533 975 5,681 +15.0% Core Organic 4,174 +8.3% Acquisitions Repair & Remodel / Other Core organic sales highlights: EBITDA highlights: 15% Q1 2021 455 • Non commodity Adjusted • S
Slide 6: Pursue Accretive Tuck-in M&A
Pursue Accretive Tuck-in M&A ▪ Broaden product portfolio in # BUILDING PRODUCTS SALES ($B) OF BUILDING target markets BUSINESSES SEGMENTED PRODUCTS BUSINESSES Geographic BY ANNUAL SALES SEGMENTED BY ANNUAL SALES Scale ▪ Deepen presence in existing service areas by expanding product portfolios >$1B 1
Slide 7: Continued M&A in Q1 2022
Continued M&A in Q1 2022 Acquisition Annual Sales Date Rationale 2017 2017 FY22 ▪ Provides additional component capacity and expands upon $26M Q2 value-added offerings to single and multi-family markets in ID • Successfully completed a substantial 2013 2013 FY22 ▪ Offers additional component capacit
Slide 8: BFS Digital Transformation of Homebuilding on Track
BFS Digital Transfor mation of Homebuilding on Track Home Lifecycle Management Homebuyer Experience ▪ Closing task list ▪ Lead generation ▪ Warranty management Start ▪ Find a community, floorplan, builder ▪ Post-purchase projects ▪ Consistent experience throughout Job Site Management Collaboration T
Slide 9: Digital Solutions – Key Milestones
Digital Solutions – Key Milestones ✓ Completed 2,000 estimates on customer plans across 9 states ✓ Completed an agreement with Hayden Homes, a builder in the and that adoption is expected to increase. Pacific Northwest, for the use of our Homebuilder Omni platform. ✓ Technology provides the model fo
Slide 10: Q1 2022 – Broad Strength Across Product Portfolio
Q1 2022 – Broad Strength Across Product Por tfolio Net sales by product category (Q1 2022 compared to Q1 2021) ($M/ % change) Specialty Building Lumber & Lumber Value-Added Products: Products & Services: Manufactured Window, Doors & Sheet Goods: Products Millwork $1,355 $1,012 $2,325 $990 $1,769 $86
Slide 11: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Net Leverage1 Improvement Balanced Capital Allocation Priorities 1. Maintain a strong balance sheet 2. Reinvest in our business to drive growth and productivity 4.2X 3. Continue tuck-in M&A strategy 3.1X 4. Return capital to shareholde
Slide 12: Improved 2022 Outlook
Improved 2022 Outlook 2022 Full Year Financial Expectations Metrics Current Guidance Prior Guidance 2021 Actual Base Business Sales1 10% to 14% growth 8% to 12% growth $15.7 billion Base Business Adjusted EBITDA1, 2 18% to 22% growth 12% to 18% growth $1.8 billion Base Business Adjusted EBITDA margi
Slide 13: Sales and Adj. EBITDA Projection by Commodity Price
Sales and Adj. EBITDA Projection by Commodity Price Illustrative FY 2022E Sales AEBITDA Assumptions: ($Bn) ($Bn) • Provided a grid with various commodity cost assumptions and the corresponding profits if you assume static commodity prices. Please $400 $16.7-18.5 $2.1-2.3 keep in mind that shorter te
Slide 14: Strong Fundamentals Above Peers
Strong Fundamentals Above Peers Sales CAGR Adj. EBITDA CAGR Adj. EBITDA Margin Expansion Adj. EBITDA Margin 2022 EV / EBITDA vs. Peers1 (2015 to 2021) (2015 to 2021) (2015 to 2021) (2021) 33% 57% 16x 980bps 10x 16% 24% 420bps 15% 6x 13% 12% 6% 4% Building Building Building -130bps Building Building
Slide 15: Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability Leadership in a highly fragmented industry Exceptional geographic, customer, and end market diversity Strategic investment in value-added capacity, driving share gains and margin expansion Focus on maintaining
Slide 16: Q&A Session
OUTPERFORM TODAY. TRANSFORM TOMORROW. Q&A Session ie oe = ra VO gy, ea
Slide 17: Michael Neese, SVP, Investor Relations
Michael Neese SVP, Investor Relations Michael.Neese@BLDR.com (214) 765-3804
Slide 18: Record FY 2021 Performance
Record FY 2021 Perfor mance Total Record Sales Performance • Focused execution, core growth, and disciplined pricing drove record results Net • Strong demand for single family living remain tailwinds for our products Sales $19.9b and services +56.1% YoY Operational Performance Drove Record Adjusted
Slide 19: Synergy Target Completed
Synergy Target Completed MAJOR MILESTONES ESTIMATED RUN-RATE COST SAVINGS OF $160M Focus on Cost Synergies Other Footprint Consolidation Benefits Alignment ✓ $55 million realized in Q1 2022 Variable Compensation ✓ Achieved $160 million synergy run rate as of year-end 2021 FTE Optimization ✓ Captured
Slide 20: Q1 2022 Financials
Q1 2022 Financials BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) Three Months Ended March 31, (in thousands, except per share amounts) 2022 2021 Net sales $ 5,681,131 $ 4,173,775 Cost of sales 3,848,758 3,104,221 Gross margin 1,832,373 1,069,5
Slide 21: Q1 2022 Financials
Q1 2022 Financials © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 21 21
Slide 22: Q1 2022 Financials
Q1 2022 Financials © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 22 22
Slide 23: Reconciliations
Reconciliations © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 23 23
Slide 24: Reconciliations
Reconciliations © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 24 24
Slide 25: Reconciliations
Reconciliations © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 25 25
Slide 26: Reconciliations
Reconciliations © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 26 26