Slide 1: Q4 and FY 2024 Investor Presentation
Q4 and FY 2024 Investor Presentation February 18, 2025
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 $3.5 14% ~60% 11% 13% 14% $2.7 billion Net sales to R&R $3.0 11% 2024 Net sales 11% 12% $2.5 10% 13,000+ $2.5 $2.9 $3.3 $2.7 $2.7 10% Employees $2.0 $2.4 $364 million 8
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… 13% Overview of primary sales channels in the US and Canada: Dealer Retailers / Home Dealer Channel Builder Channel Retail Center Channel 34% 53% 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 >$750 (per cabinet) 100% Stock /In-Stock Semi-Custom Custom/Premium 90% ~19% 80% 70% ~60% ~30%
Slide 8: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
Integrated Manufacturing Network & Strong Track Record of Continuous Improvement O L D M O D E L : 10+ product platform / plant silos Footprint optimization + + + Assets Capabilities Product Specs Proven tools of our business system, enable product N E W M O D E L : 4 construction-specific produ
Slide 9: Supreme Cabinetry Brands Acquisition Completed July 2024
Supreme Cabinetry Brands Acquisition Completed July 2024 1 Enhances MasterBrand’s Portfolio with Complementary Products in Resilient and Attractive Categories 2 Extends Diversity of Channel Distribution to Reach More Consumers Combines Best-in-Class Competencies to Win Today and Tomorrow, Enriching
Slide 10: Q4 2024 Highlights
Q4 2024 Highlights Financial Results ($ in millions, except per share amounts) Q4 2024 Q4 2023 B/(W) • Net sales decreased 1%, driven by lower net average selling price of 4% and volume declines of 6%. These declines Net Sales $667.7 $677.1 (1.4%) were largely offset by 9% growth from the Gross Prof
Slide 11: FY 2024 Highlights
FY 2024 Highlights Financial Results • Net sales decline driven by lower net average selling price of 4% and volume declines of 1%, ($ in millions, except per share amounts) 2024 2023 B/(W) largely offset by 4% growth from the Supreme acquisition. Net Sales $2,700.4 $2,726.2 (0.9%) • Net income decr
Slide 12: Near-Term Expectations
Near-Term Expectations Full Year 2025 Outlook 1 Drivers Market Growth MasterBrand • Organic net sales flat, acquisition-related net sales increase of mid single-digit percentage Increase of mid single-digit % • Organic net sales performance to outperform the underlying market demand, Low Single-Digi
Slide 13: 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 14: Appendix
05 Appendix MasterBrand: Investor Day 2022
Slide 15: 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 16: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations Fiscal Year Ended December 29, December 27, December 26, December 25, December 31, December 29, (In millions, except percentages) 2019 2020 2021 2022 2023 2024 Reconciliation of Net Income to EBITDA to ADJUSTED Net income (GAAP) $ 100.7 $ 145.7 $ 182.6 $ 155.4 $ 18
Slide 17: Q4 2024 Non-GAAP Reconciliations
Q4 2024 Non-GAAP Reconciliations 17 Note: See tick legend on slide 19
Slide 18: 2024 Non-GAAP Reconciliations
2024 Non-GAAP Reconciliations 18 Note: See tick legend on slide 19
Slide 19: Non-GAAP Reconciliations Tick Legend
Non-GAAP Reconciliations Tick Legend [1] Acquisition-related costs are transaction and integration costs, including legal, accounting and other professional fees, severance, stock-based compensation, and other integration related costs. These charges are primarily recorded within selling, general an
Slide 20: 2024 Non-GAAP Reconciliations
2024 Non-GAAP Reconciliations 20
Slide 21: 2024 Non-GAAP Reconciliations
2024 Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 52 Weeks Ended 53 Weeks Ended December 29, December 31, (U.S. Dollars presented in millions) 2024 2023 OPERATING ACTIVITIES Net income .......................................................................................
Slide 22: Prior Year to Current Year Net Sales Walk
Prior Year to Current Year Net Sales Walk Q4 % Change FY 2024 % Change 2023 Net Sales (millions) $ 677.1 $ 2,726.2 Volume (39.5) -6% (30.8) -1% 1 Net ASP (29.9) -4% (115.0) -4% Acquisition of Supreme 60.5 9% 121.2 4% Foreign Currency (0.5) 0% (1.2) 0% 2024 Net Sales (millions) $ 667.7 -1% $ 2,700.4
Slide 23: Credit Rating and Debt Profile
Credit Rating and Debt Profile Credit Ratings1 Rating Agency S&P Moody’s Fitch Corporate rating BB Ba2 BB+ Security rating (Unsecured debt) BB Ba3 BB+ Outlook Stable Stable Stable 1) As of June 17, 2024 Debt Maturity Profile $1,000 Revolving Credit Facility Senior Unsecured Notes $750 $500 $250 $- 2
Slide 24: Leverage Ratios and Liquidity
Leverage Ratios and Liquidity Flexible cost structure, low capex and high Free Cash Flow1 conversion supports the ability to drive cash flow generation across the cycles and general market conditions Historical Leverage Ratios Leverage Ratios ($ in millions) Q4 2024 Q4 2023 3.0 1 Total Debt / Adjuse