Slide 1: Q2 2022 Earnings Presentation
August 1, 2022 DAVE FLITMAN, President & CEO • PETER JACKSON, CFO Q2 2022 Earnings Presentation
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: Our Strategic Priorities Fuel Long-term Profitable Growth
Our Strategic Priorities Fuel Long -ter m Profitable Growth Organic Growth Drive Continue to Pursue of Value-added Operational Build Our Strategic Products and Excellence High-Performing Tuck-in Services Culture Acquisitions ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 3
Slide 4: Executing Against Our Strategy in Q2 2022
Executing Against Our Strategy in Q2 2022 ✓ ✓ ✓ ✓ ✓ ✓ ✓ of HomCo Lumber and Hardware ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 4
Slide 5: Base Business Expectations for 2022E Aligned with Long Term Plan
Base Business 1 Expectations for 2022E Aligned with Long Ter m Plan Over 60% of BFS’s Base Business1 Majority of EBITDA Growth is Driven by Value-Added Products is Non-Commodity and Sustainable Operations Improvement / Synergy Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base Business Commo
Slide 6: Continuing to Drive Operational Excellence to Achieve Targets
Continuing to Drive Operational Excellence to Achieve Targets ▪ Strategy implementation and outperformance enabled by focus on operational excellence ▪ ▪ ▪ 2021 to 2025E Base Business Targets1 ~10% ~15% ~30% ~50bps Adj. EBITDA Margin Net Sales CAGR Adj. EBITDA CAGR EPS CAGR Expansion Annually Deploy
Slide 7: Delivering Record Second-Quarter Performance
Delivering Record Second-Quar ter Perfor mance $6.9B $1.5B $6.26 21.8% $1.5B $6.26 21.8% Adj. Adj.Adj. EBITDA Margin 1 Net Net Sales Sales Adj.EBITDA EPS1 EBITDA Adj. EPS Adj. EBITDA Margin 24.2% 24.2% Increase 24.2%Increase Increase 126.8% 80.3% Increase Increase 680bps Increase 126.8% Increase Gen
Slide 8: Continued M&A in 2022
Continued M&A in 2022 Acquisition Annual Sales Date Rationale ▪ Highly-profitable distributor in attractive Flagstaff, AZ market ▪ Successfully completed a $44M Q3 2022 ▪ Low customer concentration and diverse product mix substantial number of value- ▪ Provides additional component capacity and expa
Slide 9: Digital Solutions
Digital Solutions ✓ Standard plan in-take and bid workflow being deployed ✓ Significant development milestone achieved with the integration of material take-off, structural design, and visualization into one 3-D ✓ Completed 4,500 automated take-off estimates from customer modeling process plans on o
Slide 10: Transformation of Business from Prior Recession
Transfor mation of Business from Prior Recession Pre-Great Recession Improvements Made Better Positioned Today ▪ Portfolio consisted of commodity-based product ▪ Removed over $400M of costs through synergies ▪ Leaner, more efficient, consolidated company lines and productivity ▪ Higher margin profil
Slide 11: Downturn Playbook
Downtur n Playbook Flexible Business Model Downside Actions Value Creation Opportunities ▪ ~70% of SG&A expense is variable ▪ Manage variable expenses to market ▪ Highly accretive share repurchases ▪ Efficient capacity utilization and ongoing levels ▪ Add distressed businesses to portfolio to optimi
Slide 12: 12% Core Organic Growth in Q2 2022
12% Core Organic Growth in Q2 2022 Net Sales ($M) Bridge (Q2 2022 vs. Q2 2021) $219 $1,130 $6,926 $5,577 +12.2% Core Organic +8.1% Acquisitions Q2 2021 Non-Commodity Commodity Q2 2022 Q2 2022 Net Sales Mix by End Market Core Organic Sales Highlights Repair & Remodel / Other 14% ▪ Single-Family → +15
Slide 13: Broad Strength Across Product Portfolio
Broad Strength Across Product Por tfolio Net Sales ($M) by Product Category (Q2 2022 vs. Q2 2021) Value-Added Products Manufactured Products Windows, Doors & Millwork Specialty Building Products & Services Lumber & Lumber Sheet Goods $1,218 $1,173 $2,832 $1,045 +12% $2,597 +9% $1,703 +44% +56% $847
Slide 14: Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Balanced Capital Allocation Priorities Net Leverage Improvement 1 2 4.2X 3 3.1X 2.5X 1.3X 1.0X 4 0.8X 2017 2018 2019 20201 2021 Q2 2022 Strong Free Cash Flow Weighted Average Debt Maturity of ~8 Years2 in millions $2,000 $2.75B $
Slide 15: Updated 2022 Outlook
Updated 2022 Outlook 2022 Full Year Financial Expectations Metrics Current Guidance Prior Guidance 2021 Actual Base Business Sales1 8% to 12% growth 10% to 14% growth $15.7 billion Base Business Adjusted EBITDA1 18% to 22% growth 18% to 22% growth $1.8 billion Base Business Adjusted EBITDA margin1 1
Slide 16: Sales and Adj. EBITDA Projection by Commodity Price
Sales and Adj. EBITDA Projection by Commodity Price Commodity Cost Assumptions and Estimated Corresponding Performance Scenario Analysis $/mbf Sales ($B) Adj. EBITDA ($B) Assumptions ▪ Price fluctuations can result in materially different results than in a static $400 $16.2 – $18.0 $2.0 – $2.3 commo
Slide 17: Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability Leadership in a highly fragmented industry Exceptional geographic, customer and end market diversity Strategic investment in value-added capacity, driving share gains and margin expansion Focus on maintaining s
Slide 18: Q&A Session
OUTPERFORM TODAY. TRANSFORM TOMORROW. Q&A Session ie oe = ra VO gy, ea
Slide 19: Michael Neese, SVP, Investor Relations
Michael Neese SVP, Investor Relations Michael.Neese@BLDR.com (214) 765-3804
Slide 20: Pursuing Accretive Tuck-In M&A
Pursuing Accretive Tuck-In M&A ▪ Broaden product portfolio in # BUILDING PRODUCTS SALES ($B) OF BUILDING target markets Geographic BUSINESSES SEGMENTED PRODUCTS BUSINESSES ▪ Deepen presence in existing BY ANNUAL SALES SEGMENTED BY ANNUAL SALES Scale service areas by expanding product portfolios >$1B
Slide 21: Q2 2022 Financials
Q2 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: Q2 2022 Financials
Q2 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: Q2 2022 Financials
Q2 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 . 23 23
Slide 24: Reconciliations
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP Equivalents (unaudited) Twelve Months Three Months Ended Six Months Ended Ended June 30, June 30, June 30, (in millions) 2022 2021 2022 2021 2022 Reconciliation to Adjuste
Slide 25: Reconciliations
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Financial Data (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share amounts) 2022 2021 2022 2021 Net sales $ 6,926.3 $ 5,576.7 $ 12,6074 $ 9,750.5 Cost of sales 4.5142 3,993.5 8,362.9 7,097.8 Gros
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
Slide 27: 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 . 27 27