Slide 1: Q2 2023 Investor Presentation
Q2 2023 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements. Each forward-looking statement contained in this presentation is based on current expectations and market outlook; and is subject to certain risks and uncertainties that may cause actual results to differ materially fr
Slide 3: MasterBrand Overview
MasterBrand Overview #1 North American residential cabinet manufacturer MasterBrand at a glance MasterBrand key financial metrics Net sales ($bn) $3.3 $3.3 billion $411 million $2.4 $2.5 $2.9 2022 Net sales 2022 Adjusted EBITDA1 2019 2020 2021 2022 ~65% 4,500+ Net sales to R&R Dealer network Adjuste
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 TEaM : Trust the tools, how we work and what we offer to Empower the team, delight our customers and Move forward How? Tools that enable us to: TODAY Industry Leader P
Slide 5: 2022 ESG Report Highlights
2022 ESG REPORT HIGHLIGHTS INTRODUCING MASTERBRAND CREATING A POSITIVE IMPACT The people of MasterBrand make a difference every day in meaningful ways. From caring about each other to At MasterBrand, we are proud of our 70-year heritage that has made us the number one North American residential bett
Slide 6: Industry Leading Customer Base
Industry Leading Customer Base MasterBrand channel mix MasterBrand has leadership in dealer channel... Overview of primary sales channels 9% Dealer 10% Retailers / Home Dealer Channel Builder Channel Center Channel Retail: In Stock 55% Retail: Semi-Custom 2021 Channel Size $6.3bn $3.7bn $1.0bn 26% %
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 Price point <$200 >$600 (per cabinet) 100% Stock /In-Stock Semi-Custom Custom/Premium ~15% 90% 80% 70% ~60% ~35% 60
Slide 8: Integrated Manufacturing Network & Strong Track Record of Continuous Improvement
Integrated Manufacturing Network & Strong Track Record of Continuous Improvement OLD MODEL: 10+ product platform / plant silos Footprint optimization Process improvement tools to + + + simplify product portfolio MANTRA brand sales grew 115% Assets Capabilities Product Specs CAGR from 2019 to 202
Slide 9: Align to Grow
Align to Grow Simplified manufacturing to fulfill market needs Reduced complexity enables improved services and quality FACILITY RATIONALIZATION 2 1 Facilities closed Facility moved Plant A Plant B Targeted manufacturing 57% Achieved Closed Apr-21 Closed Oct-22 moved abroad Mar-22 Reduction in Doors
Slide 10: Lead Through Lean
Lead Through Lean Two years into our journey, we’re progressing toward our vision of being a best place to work LEAN FOUNDATION TOOLS Continuous improvement now part of the culture 2024 - 2025 A S S O C I A T E E NG A G E M E N T Best Place to Work Lead Through Lean helped improve engagement score b
Slide 11: Leveraging Data and Analytics to Unlock Shareholder Value
Leveraging Data and Analytics to Unlock Shareholder Value Simplify and Digitize our Enhance Customer Automate Backoffice Plants Experience Processes 11
Slide 12: Q2 2023 Highlights
Q2 2023 Highlights Financial Results ($ in millions, except per share amounts) 2Q 2023 2Q 2022 B/(W) Net Sales $695.1 $855.6 (18.8%) Gross Profit $236.2 $249.6 -5.4% Gross Profit % 34.0% 29.2% 481 bps SG&A $141.7 $166.0 (14.6%) Net Income $51.2 $40.9 25.2% Diluted EPS $0.39 $0.32 21.9% Adjusted EBIT
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 Adj. EBITDA2 Margin Clear Path to Achieving Results 1. Business and portfolio aligned with the customer 2. Operational Excellence will fuel margin growth
Slide 14: Appendix
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 52 Weeks Ended December 29, December 27, December 26, December 25, (In millions, except percentages) 2019 2020 2021 2022 Reconciliation of Net Income to EBITDA to ADJUSTED Net income (GAAP) 100.7 145.7 182.6 155.4 Related party interest income, net (0.1) (2.4) (4.6
Slide 17: Q2 2023 Non-GAAP Reconciliations
Q2 2023 Non-GAAP Reconciliations 1. Reconciliation of Net Income to EBITDA to ADJUSTED EBITDA TICK LEGEND: [1] Prior to the separation from Fortune Brands in Q4 2022, our historical consolidated financial statements included expense allocations for certain corporate functions performed on our behalf
Slide 18: Q2 2023 Non-GAAP Reconciliations
Q2 2023 Non-GAAP Reconciliations 2. Reconciliation of Free Cash Flow 26 Weeks Ended June 25, June 26, (In millions) 2023 2022 Net income............................................................................................... $ 86.2 $ 87.9 NET CASH PROVIDED BY OPERATING ACTIVITIES.............