Slide 1: Q2 2024 Investor Presentation
Q2 2024 Investor Presentation
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 stat
Slide 3: MasterBrand Overview
MasterBrand Overview #1 North American residential cabinet manufacturer Key brands 1 Includes pro forma impact of Supreme acquisition 2 Excludes Supreme acquisition 3 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP metrics. Please see Appendix for definitions and corresponding reconciliation
Slide 4: The MasterBrand Story
The MasterBrand Story Building great experiences together O U R P U R P O S E How? Tools that enable us to: Lead through Lean Engage teams and foster problem-solving Align to Grow Deliver on the unique needs of each customer Tech Enabled Drive profitable growth and transform the way we work through
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 stakehold
Slide 6: Industry Leading Customer Base
57% 33% 10% Industry Leading Customer Base 6 MasterBrand channel mix 57% Dealer: provide customer education, service and design consultation 33% Retail: common box products that offer some customization along with in-stock standardized products 10% Builder: sold directly and highly correlated to sin
Slide 7: Multi-Branded Strategy Across Price Points and Products
7 Multi-Branded Strategy Across Price Points and Products ~51% ~40% ~100% ~30% ~60% ~19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MasterBrand Competitor A Competitor B Stock / In-Stock Semi-Custom Custom / Premium Price point (per cabinet) <$350 >$750 MasterBrand portfolio by type and key brands
Slide 8: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
+ + + Integrated Manufacturing Network & Strong Track Record of Continuous Improvement Footprint optimization Proven tools of our business system, enable product portfolio simplification Continuous improvement culture Efficient capital spending profile 8 MasterBrand’s strategic transformation in
Slide 9: Align to Grow: Manufacturing Flexibility
Stock MANUFACTURING FLEXIBILITY 1 Quarter facility transition from Made-to-Order to Stock 1 Facility absorbed FACILITY RATIONALIZATION 2 Facilities closed Plant A Plant B Consolidated manufacturing sites Plant C Plant D Plant E Plant F 5 Networks PLANT NETWORKS 20 Independent Plants COMMON CONSTRUCT
Slide 10: Lead Through Lean
Lead Through Lean 10 2021 2022 - 2024 2025 and beyond Best Place to Work Rewards & Recognition Talent Strategy Associate Engagement Lean Foundational Tools Four years into our journey, we’re progressing toward our vision of being a best place to work ASSOCIATE ENGAGEMENT REWARDS & RECOGNITION LEAN F
Slide 11: Leveraging Data and Analytics to Unlock Shareholder Value
Simplify and Automate Backoffice Processes Enhance Customer Experience Digitize our Plants Leveraging Data and Analytics to Unlock Shareholder Value 11
Slide 12: Q2 2024 Highlights
Q2 2024 Highlights 12 • Net sales declined as a result of continued softness from our customers serving the R&R market and lower ASP, largely due to continued impact of trade down activity, partially offset by growth from our customers serving the new construction market. • Adjusted EBITDA margin1 e
Slide 13: Near-Term Expectations: Full Year 2024 Outlook
Near-Term Expectations Full Year 2024 Outlook1 • Organic net sales decline of low single-digit % and acquisition-related increase of mid single-digit % • Trade downs and promotional activity to continue at a similar pace to 1H 2024, but impact to moderate from a y-o-y perspective, predominantly in Q
Slide 14: Long-Term Financial Targets
Long-Term Financial Targets Long Term Outlook1 1. Business and portfolio aligned with the customer 2. Operational Excellence will fuel margin growth 3. Flexible platform allows us to navigate any market condition Clear Path to Achieving Results 1 This outlook information was presented by the Company
Slide 15: MasterBrand: Investor Day 2022 Appendix
MasterBrand: Investor Day 2022 05 Appendix
Slide 16: 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 17: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations 17Note: See tick legend on following page 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$ 18
Slide 18: Full Year Non-GAAP Reconciliations Tick Legend
Full Year Non-GAAP Reconciliations Tick Legend 18 [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 consis
Slide 19: Q2 2024 Non-GAAP Reconciliations
Q2 2024 Non-GAAP Reconciliations 19 Note: See tick legend on following page
Slide 20: Q2 2024 Non-GAAP Reconciliations Tick Legend
Q2 2024 Non-GAAP Reconciliations Tick Legend 20 [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
Slide 21: Q2 2024 Non-GAAP Reconciliations: Condensed Consolidated Statements of Cash Flows
Q2 2024 Non-GAAP Reconciliations 21 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 26 Weeks Ended June 30, June 25, (U.S. Dollars presented in millions) 2024 2023 OPERATING ACTIVITIES Net income ............................................................................................