Ufp Industries, Inc. · NASDAQ:UFPI
Ufp Industries — Investor Presentation (November 2022)
21 slides from Ufp Industries's investor presentation, Nov 8, 2022
Slide 1: 2022 Investor Relations Presentation
1 2022 Investor Relations Presentation 2022 Investor Relations Presentation Results through September 24, 2022
Slide 2: Forward-looking statements and non-GAAP information
2 UFP INDUSTRIES, INC. 2022 Please be aware that: Statements included in this presentation that are not historical are forward-looking statements within themeaning of Section 21E of the Securities Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, est
Slide 3: UFP at a Glance
3 40% 31% 24% 5% Based on 2021 Sales Retail -$3.4B Construction -$2.7B Industrial -$2.1B International -$0.4B INTRODUCTION UFP AT A GLANCE 15,000+ Employees worldwide 211 Facilities worldwide 1955 Founded in Grand Rapids, MI $ $ $8.6B 2021 Net sales $835M 2021 Adjusted EBITDA Value-added wood conver
Slide 4: Business Model: Long-Term Financial Goals
4 BUSINESS MODEL LONG-TERM FINANCIAL GOALS Annual unit sales growth of 5-7 percent, including small acquisitions 10% Adjusted EBITDA margin Earn incremental return on new investment greater than WACC Maintain a conservative capital structure 2022
Slide 5: Business Model: Innovation and New Products
5 BUSINESS MODEL INNOVATION AND NEW PRODUCTS 2013 $426m 3% 10% $85m New Products 20192021 10% $540m 2013 % of Sales Sales % of Sales Sales % of Sales Sales $842m 10% 2020 % of Sales Sales Commodity to value-added transformation. 2022
Slide 6: New Structure Drives Better Strategy Development and Execution
6 New Structure Drives Better Strategy Development and Execution Western Division Southern Division Northern Division 2020 and Beyond 1955 -20192020 and Beyond Our new structure, based on management of market segments rather than geography, brought greater focus, resulting in: • Improved alignment w
Slide 7: Business Model: Acquisitions
7 BUSINESS MODEL ACQUISITIONS Process Identify attractive growth runways in each Business Unit under each Business Segment and identify gaps in our capabilities to pursue those runways. Find new products and services to speed our transformation from commodity sales to value-added selling solutions a
Slide 8: A Unique Culture Built for Good Times and Bad
8 BUSINESS MODEL A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD Strong Balance Sheet Return-focused approach to capital allocation. Capital reserves used opportunistically. Average management team tenure: 23 years. 67 straight years of profitability. Every plant is a profit center and all employees b
Slide 9: Business Segments: Retail Solutions
9 Deckorators.com BUSINESS SEGMENTS RETAIL SOLUTIONS ProWoodLumber.com OutdoorEssentialProducts.com UFPEdge.com Outdoor lifestyle products including wood and vinyl fencing, landscape and garden décor, picnic tables, pergolas, trellises and more. Premium siding, pattern, trim; interior accent wall pr
Slide 10: Business Segments: Industrial
10 BUSINESS SEGMENTS INDUSTRIAL Corrugated, stretch/shrink films, labels, machine applicators, facility supplies, hardware and software solutions for all industries. PROTECTIVE PACKAGING Wood, steel, foam and corrugated for mixed material crates and specialty containers. Hard cases, tracking technol
Slide 11: Business Segments: Construction
11 Roof trusses, wall panels, floor systems, doors and framing services for residential and light commercial builders. Sales are 65% single family, 35% multifamily. Roof trusses, floor joists, laminated wall panels, cabinet components, countertops and milled components for modular and manufactured h
Slide 12: Our Sustainability Philosophy
12 OUR SUSTAINABILITY PHILOSOPHY We have always believed profitability, asset values and shareholder return are optimized by acting responsibly, and that our investors experience higher sustainable returns when we support our customers, employees and communities . Our views on maintaining a sustaina
Slide 13: Financials
UFP INDUSTRIES FINANCIALS
Slide 14: Our Performance
14 OUR PERFORMANCE 7.2% Adjusted EBITDA Margin 8.4% 9.7% $4,416 Net Sales $5,154$8,636 $180 Net Earnings (ACI) $247$536 0.0 Net Debt to Adjusted EBITDA 0.0 0.06 15.1% ROIC 21.0% 34.9% 2019 2020 2021 Unit sales growth rate 6% 6% 6% 6% 28% 28% 6% 6% 28% $ Sales in Millions Growth rate 21% 37% 117% $31
Slide 15: Managing Lumber Market Risk
15 MANAGING LUMBER MARKET RISK Level of lumber prices does not drive profitability Sequential trends impact profit per unit Balanced mix of variable and fixed-price products mitigate risk Adjusted EBITA Margin Lumber Market Volatility* 4.2% 34.5% 39.9% 32.2% 7.2% 8.4% 9.7% 11.5% 0% 5% 10% 15% 20% 25
Slide 16: Net Sales
16 FINANCIALS 2022 NET SALES (in millions) Long-Term Goal: Unit sales growth of 5% to 7%, including small acquisitions Net Sales Percent Change $3,941 $4,489 $4,416 $5,154 $8,636 $9,730 15% 6% 6% 6% 28% 9% 4% 3% 5% 5% 4% 2% 0% 10% 20% 30% 40% 50% 60% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 20
Slide 17: Adjusted EBITDA
17 FINANCIALS 2022 ADJUSTED EBITDA (in millions) Long-Term Goal: To achieve and sustain a 10% adjusted EBITDA margin Adjusted EBITDA Adjusted EBITDA Margin $238 $266 $317 $431 $835 $1,108 6.0% 5.9% 7.2% 8.4% 9.7% 11.4% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% $- $200 $400 $600 $800 $1,000 $1,200
Slide 18: Return on Invested Capital
18 FINANCIALS RETURN ON INVESTED CAPITAL Hurdle Rate = 12% Percent 13.2% 14.0% 15.1% 21.0% 32.2% 34.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 20172018201920202021Q3 2022 TTM Long-Term Goal: Earn an incremental return on new investment over our WACC WACC = 10% 2022 Non-GAAP Financial Information: Please c
Slide 19: Capital Structure
19 FINANCIALS CAPITAL STRUCTURE Percent Net Debt to Total Capitalization vs Maximum Target Net Debt to Adjusted EBITDA vs Maximum Target 12.8% 15.7% 0.0% 0.0% 2.5% 0.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 20172018201920202021Q3 2022 TTM 0.60 0.80 - - 0.06 - 0.0 0.5 1.0 1.5 2.0 2.5 2017201820192020
Slide 20: Balanced Use of Free Cash Flow
20 BALANCED USE OF FREE CASH FLOW Acquisitions to contribute half of our total annual unit sales growth CapExplan of $175M to $225M in 2022 Opportunistic share repurchases to offset issuances Increasing dividends $349 $336 $512 $533 $25 $31 $40 $43 $29 $93 $85 $89 $151 $114 $39 $65 $476 $105 Acquisi
Slide 21: Thank You
21 2801 E. Beltline Ave. NE Grand Rapids, MI 49506 (800) 598-9663 -UFPI.com THANK YOU.
UFP Industries — Investor Presentation (November 2022) on 6ix