Slide 1: Strong Foundation. Stronger Future. Investor Presentation November 2023
STRONG FOUNDATION. STRONGER FUTURE. Simpson Manufacturing Co., Inc. Investor Presentation November 2023 EXHIBIT 99.1
Slide 2: Safe Harbor
2 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements genera
Slide 3: Investment Highlights
3 Investment Highlights Industry leader with unique business model, above market top-line growth(1), strong brand recognition and trusted reputation Diversified product offerings and geographies mitigate exposure to cyclical U.S. housing market Leadership position in structural connections for wood
Slide 4: Simpson's Brand and Culture
4 Simpson’s Brand and Culture At Simpson, we describe the unique culture of our organization as our “Secret Sauce.” To provide solutions that help people design and build safer, stronger structures. OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Quality Produc
Slide 5: A Pioneer in Construction Solutions
5 A Pioneer in Construction Solutions 1956 1970 1984 1996 1997 1999 2005 Simpson structural connectors are the industry standard. 1994 NYSE LISTING (SSD) OUR FOUNDER BARC SIMPSON EXPANSION INTO CONCRETE EXPANSION INTO FASTENERS FIRST CONNECTOR CONNECTOR MARKET LEADER EXPANSION INTO WOOD SHEAR WALLS
Slide 6: A Pioneer in Construction Solutions (Continued)
6 A Pioneer in Construction Solutions (Continued) Simpson is an innovation leader in fasteners, concrete repair, moment frames, construction software and structural steel solutions. 2011 2013 2016 20192012 2008 2009 20202017 EXPANSION INTO SS FASTENERS EXPANSION INTO ORDINARY MOMENT FRAMES FURTHER E
Slide 7: Core Addressable Market
7 Core Addressable Market(1) Wood Connectors & Truss Concrete Market Size $15.0 B Addressable Market $1.3 B (9%) SSD Share $296 M (23%) Market Size $10.1 B Addressable Market SSD Share $492 M (29%) Market Size/ Addressable Market $2.5 B SSD Share $1.35 B (54%) Fasteners $1.7 B (17%) (1) Note: Market
Slide 8: Key End Use Markets in North America
8 5 Key End Use Markets in North America Residential Commercial OEM National Retail Building Technology • Builder • LBM • Truss • Services • Partnerships • Marketing • eCommerce • Product • People • Execution • Single Family • Multifamily • Outdoor Living • Repair / Remodel / Retrofit • Retail / off
Slide 9: Housing Market Projections
9 Housing Market Projections(1) 0 500 1000 1500 2000 2500 J-01 D-01 D-02 D-03 D-04 D-05 D-06 D-07 D-08 D-09 D-10 D-11 D-12 D-13 D-14 N-15 N-16 N-17 N-18 N-19 N-20 N-21 480k starts 940k starts 1.8M starts There is a sizable shortage of new homes after more than a decade of under-building relative to
Slide 10: Commitment to Growth
10 Commitment to Growth KEY GROWTH OPPORTUNITIES WITHIN 5 END USE MARKETS FOCUSED ON: Overarching goal to become the leader in building technology across all of our markets Goal to become the leader in engineered load-rated construction fastening solutions in OEM, R&R / DIY and Mass Timber OEM’s (OE
Slide 11: Our Strong Business Model
11 Our Strong Business Model Why Simpson? Our Customer-Centric Approach Diverse portfolio of solutions Unparalleled availability & deliveryLongstanding relationships Immersive service Unyielding innovation Impactful industry outreach An increasingly diverse portfolio of products and software, and a
Slide 12: Our Multilayered Approach
12 Our Multilayered Approach • 479 Issued Patents (US and foreign; utility and design) • 1,641 Registered Trademarks (US and foreign) • 220 Patents Pending (US and foreign) • 76 Code Reports Innovation Research & Testing Technical & Field Support Product Availability Technology • 7 Accredited Test L
Slide 13: Building Technology Strategy
13 Building Technology Strategy Our goal is to leverage and grow our suite of technology solutions across our value chain to be the partner of choice for all of our customers. Key focus areas to make it easier to specify and order our products: • Specification Tools (Apps/Selectors) • Customer Porta
Slide 14: Building Technology Development – Examples
14 Building Technology Development – Examples Building out our digital offerings to serve customers across the building industry ~30 specification tools
Slide 15: OEM
15 OEM RATIONALE KEY GOAL STRATEGY • $420 M total addressable market primarily with fastening technologies • Potential to develop other engineered solutions • 2,500 existing Simpson products applicable for OEM needs • Our solutions make the industry more efficient • Aligned with the Simpson business
Slide 16: R&R / DIY
16 RATIONALE KEY GOAL STRATEGY • $790 M total addressable market: decks, patios, porches, pergolas, gazebos, fencing and garage organization • Existing product line with potential for several extensions • Established channel/partners • Proven approach with Outdoor Accents • Aligned with the Simpson
Slide 17: Mass Timber
17 Mass Timber RATIONALE KEY GOAL STRATEGY • $45 M total addressable market • Strong double digit growth rate in N. America • Positive environmental impact • New market; many product opportunities • Aligned with the Simpson business model Become the engineers’ partner of choice for mass timber conne
Slide 18: Concrete
18 Concrete RATIONALE KEY GOAL STRATEGY • $1.3 B total addressable market • Growth rate linked to infrastructure spend • Simpson is a recognized leader in concrete and cold-formed steel solutions • Many products and applications require engineering, testing and code approval • Aligned with the Simps
Slide 19: Structural Steel
19 Structural Steel RATIONALE KEY GOAL STRATEGY • > $770 M total addressable market • Structural steel construction is roughly half of the construction spend in North America • Field welder shortage: addressed by bolted structural connections • Bolted connections can improve productivity by 25% vs.
Slide 20: Construction Fasteners
20 Be the global market leader in engineered / load-rated construction fastening solutions. Construction Fasteners 5 STRATEGY • Develop critical mass by expanding our engineered fastener business for DIY/R&R, OEM and Mass Timber markets • Provide innovative products that are preferred by both end-us
Slide 21: Europe Strategy
21 Europe Strategy Key Focus Areas: • Integrate acquisition of ETANCO(1) and realize synergies: • Expand sales channels and geographical reach in Europe • Drive success in commercial building markets (facades, waterproofing, roofing, safety, cladding and solar) • Drive growth in Mass Timber initiati
Slide 22: ETANCO overview
22 ETANCO is a leading designer, manufacturer and distributor of fixing and fastening solutions for the building construction market in Europe Established in 1952 and headquartered in Le Pecq, France ~900 employees 8 manufacturing and distribution sites across Europe Aligns with Simpson’s
Slide 23: ETANCO Group's Key Products and Applications
23 6 1 2 7 8 4 5 3 9 ETANCO Group’s Key Products and Applications Waterproofing Fixing membrane to avoid water incursion 1 Roofing Fixing metal roof to a building structure 2 Cladding Fixing of protection panels 3 Facade Fixing metal, concrete or stone frameworks for façade backing lining 4 5 Anchor
Slide 24: 29-Year Trading History
24 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 29-Year Trading History 5/25/1994 Initial public offering at $11.50 (or $2.875 adjusted for two stock splits in August 2002 & November 2004) 3/24/2020 COVID-19 pandemic declared 8/19/2002 2 for 1 stock split 11/19/2004 2 fo
Slide 25: Strong Business Drives Stockholder Value
25 North America $1,701 Europe $400 Asia/Pacific $15 Wood Construction $1,832 Concrete Construction $282 Strong Business Drives Stockholder Value Our 2022 Sales by Product… ($ USD Millions) and Across Operating Segments ($ USD Millions) $0.87 $1.05 $1.29 $1.38 $1.86 $1.94 $2.72 $2.98 $4.27 $6.12 $7.
Slide 26: Historical Net Sales
26 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 H o u s in g S ta rts (M ) ($ M ) North America Net Sales Total Net Sales Gross Profit Income fr
Slide 27: Operating Income Margin Outperformance
27 19.9% 15.1% 13.2% 6.0% 14.1% 12.3% 9.4% 11.6% 13.3% 13.8% 16.5% 14.2% 16.0% 15.9% 19.9% 23.3% 22.0% - 22.5%(2) 13.7% 5.9% (7.3%) (2.7%) 3.7% 1.1% 3.8% 5.4% 7.8% 9.9% 12.0% 12.6% 11.5% 9.5% 9.6% 12.5% 14.4% (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2006 2007 2008 2009 2010 201
Slide 28: ROIC Within Top Quartile of Proxy Peers
28 58.2% 29.7% 21.7% 21.1% 20.4% 18.9% 17.6% 15.3% 13.6% 11.8% 11.1% 9.4% 8.2% 7.8% 6.2% ROIC(1) Within Top Quartile of Proxy Peers(2) Source: Company filings as of February 24, 2023. (1) Return on Invested Capital (ROIC) reflects latest fiscal year reported. See appendix for ROIC definition. (2) Pr
Slide 29: Well-Positioned to Drive Growth
29 $160 $206 $208 $151 $400 $29 $33 $33 $44 $62 $2 $7 $8 $6 $811 $40 $40 $40 $42 $44 $111 $61 $76 $24 $79 $182 $141 $157 $116 2018 2019 2020 2021 2022 Cash Generated by Operations Capital Expenditures Acquisitions & Purchases of Intangible Assets Dividends Share Repurchases Well-Positioned to Drive
Slide 30: Quarterly Cash Dividends and Capital Return History
30 Quarterly Cash Dividends Capital Return History $1.13 Billion 2019 – 2023 YTD(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($1.36 B) less Capital expenditures ($228.9 M) 25.2%(2) 17.6% Repurchases of Common Stock (1) Time frame represents January 1, 2019 to September 30, 202
Slide 31: Use of Cash Priorities
31 Use of Cash Priorities Cash Flow From Operations Share Repurchases • Evaluating potential M&A in the markets we operate (support key growth initiatives) • Integrating ETANCO remains the priority • Maintain quarterly cash dividends(1) • Consistently and moderately raise dividends • Capital return
Slide 32: Acquisition Strategy
32 Acquisition Strategy • Focused on strengthening our business model by expanding our product lines to develop complete solutions for the markets in which we operate • Improve our manufacturing capabilities and supply chain efficiencies to reduce lead-times and bring production closer to the end cu
Slide 33: Sustainability and Environmental and Social Responsibility
33 Sustainability and Environmental and Social Responsibility “As a construction industry leader, we have a role to play in ensuring a sustainable future for everyone. We are dedicated to addressing ESG issues, and we know that companies must work with other organizations and the greater community t
Slide 34: Company Ambitions
34 Company Ambitions Strengthen our values-based culture Be the partner of choice Be an innovation leader in the markets we operate Continue above market growth rate relative to U.S. housing starts Maintain operating income margin within the top quartile of proxy peers Integrate ETANCO and return RO
Slide 35: Appendix
35 Appendix
Slide 36: OEM Spotlight
36 Truck Bed Screw Strong Drive® TIMBER Screw Quik Drive® OEM Spotlight Existing line of fasteners and anchors for OEM Truck bed and crating installations using Quik Drive® tool and collated fasteners SOLUTION Racking installation using Titen HD® Anchors Stainless-Steel Titen HD® Anchor
Slide 37: R&R / DIY Spotlight
37 R&R / DIY Spotlight SOLUTION Outdoor Accents® decorative hardware – two collections (architectural styles) for building outdoor structures. Mission Collection™ Avant Collection™ Outdoor Accents® hardware used to build pergolas Fastener reset at home center customer New fastener sets include Quik
Slide 38: Mass Timber Spotlight
38 Mass Timber Spotlight New dedicated line of screws for cross laminated timber (CLT) SDS and SDWS CMSTCBH Simpson products utilized in CLT renovation project at an international airport in North America SOLUTION MDCST48 Simpson products utilized in construction of CLT commercial office building in
Slide 39: Concrete Spotlight
39 Concrete Spotlight SOLUTION Concrete anchor jobsite (above) 44oz. Carbon Fabric A wide range of product solutions for concrete and masonry projects. SET-3G™ Adhesive Heli-Tie™ Helical Stitching Tie Carbon fabric used as fiber-reinforced polymer (FRP) installation on a concrete structure (left) Ti
Slide 40: Structural Steel Spotlight
40 Structural Steel Spotlight Yield-Link® connection for structural steel framing Special moment frame Yield-Link® design used to build education buildings in California (left) and in the construction of 10 recreational/amusement locations across the U.S (below) SOLUTION
Slide 41: Building Technology Solutions
41 Building Technology Solutions Building technology is a key component of our business model, offering solutions to help bridge the gap between the supply / demand gap in new home construction. • Technology is critical with the housing shortage to improve new home construction timelines • Enables b
Slide 42: Commitment to Innovation: State-of-the-Art Test Labs
42 Commitment to Innovation: State-of-the-Art Test Labs We are dedicated to research, testing, engineering and innovation through our state-of-the-art test labs, which provides us with a better understanding of how structures perform, advances our design technology and improves building safety. WOOD
Slide 43: Return on Invested Capital (ROIC) Definition
43 Return on Invested Capital (“ROIC”) Definition When referred to in this presentation, return on invested capital (“ROIC”) for a fiscal year is calculated based on (i) the net income of that year as presented in the Company’s consolidated statements of operations prepared pursuant to generally acc
Slide 44: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE.