Slide 1: Fiscal 2024 Second Quarter Results
Fiscal 2024 Second Quarter Results SEPTEMBER 4, 2024
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all st
Slide 3: Today's Presenters
TODAY’S PRESENTERS Steve LeClair Mark Witkowski Brad Cowles Robyn Bradbury Chair & CEO Chief Financial Officer President SVP, Finance & Investor Relations © Core & Main All Rights Reserved. Confidential and Proprietary Information. 3
Slide 4: Business Update
Business Update STEVE LECLAIR
Slide 5: Core & Main Snapshot
CORE & MAIN SNAPSHOT Key Stats Market Reach $10.8B $6.7B $910M $1.1B 350+ ~5,500 49 60K+ ~5,000 200K+ Market Cap(1) FY23 Net Sales FY23 Adjusted EBITDA(2) FY23 Operating Cash Flow Branches Employees States Customers Suppliers SKUs Market Share Product Mix 8% Pipes, Valves, & 17% Fittings 10% Storm D
Slide 6: Growing Need for Water Infrastructure Repair & Replacement
GROWING NEED FOR WATER INFRASTRUCTURE REPAIR & REPLACEMENT 20% 260K 2.1 trillion water mains past their water main breaks per year gallons of drinking water lost useful life; up from 16% with repairs costing ~$2.6B from leaking pipes each in 2018(1) annually(1) year, equating to ~$8B in lost utility
Slide 7: Q2 2024 Business Update
Q2 2024 BUSINESS UPDATE Operations ▪ Completed organizational realignment, adding new perspectives and expertise to our growth and margin initiatives ▪ Expanded footprint into Canada through the acquisition of HM Pipe Products ▪ Integration of recent acquisitions progressing as anticipated End Marke
Slide 8: Driving Sustainable Growth Through M&A
DRIVING SUSTAINABLE GROWTH THROUGH M&A Geothermal GroGreen Green Equipment EGW Utilities HM Pipe Products Supply Company Solutions Company Status Closed April 2024 Closed May 2024 Closed August 2024 Signed August 2024 Signed August 2024 # of Locations 1 1 2 4 1 Florida, Georgia & Geography Texas Ken
Slide 9: Establishing Core & Main as the Leading Provider of Advanced Metering Solutions
ESTABLISHING CORE & MAIN AS THE LEADING PROVIDER OF ADVANCED METERING SOLUTIONS Supporting Municipalities with our Advanced Metering Capabilities… …While Driving Transformational Growth ($ in Millions) ▪ Our smart utility offering provides municipal customers with customized product and service offe
Slide 10: Financial Results
Financial Results MARK WITKOWSKI
Slide 11: Q2 2024 Financial Results
Q2 2024 FINANCIAL RESULTS ($ in Millions, Except Per Share Amounts) Net Sales Gross Profit $1,861 $1,964 +6% $501 $518 +3% % Margin 26.9% (50 bps) 26.4% Q2'23 Q2'24 Q2'23 Q2'24 Adjusted EBITDA(1) Diluted Earnings Per Share $270 $257 $0.66 (5%) (8%) $0.61 % Margin(1) 14.5% (140 bps) 13.1% Q2'23 Q2'24
Slide 12: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET ($ in Millions) Operating Cash Flow Capital Structure Facility Maturity Interest Rate As of 7/28/24 (3) Senior ABL Credit Facility 2/9/29 S + 125 $250 $257 ($139) Senior Term Loan due 2028 7/27/28 S + 200 1,455 Senior Term Loan due 2031 2/9/31 S + 225 747 Total Debt $2,452
Slide 13: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK Metric Outlook Considerations ▪ Revising sales outlook due to weather impacts in a seasonally Net Sales $7.3B - $7.4B significant quarter and sluggish end markets % Growth vs. FY23 +9% to +10% ▪ Expect end-market volumes to be flat to down low single digits in FY24 as high intere
Slide 14: Appendix
Appendix
Slide 15: Q2 2024 Weather Activity
Q2 2024 WEATHER ACTIVITY Precipitation Departures from Average(1) (May - July 2024 | Average Period: 1901 - 2000) Persistent Precipitation Limits the Number of Working Days for Underground Utility Construction (1) Source: National Oceanic and Atmospheric Administration National Centers for Environme
Slide 16: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Capital Allocation Framework Organic Growth & ▪ Expect future capital expenditures to Operating Cash Flow Operational Initiatives average ~0.5% – 0.6% of net sales Target ~60% – 70% of Adjusted EBITDA ▪ Maintain a robust M&A pipeline and a Priority Uses M&A disciplined a
Slide 17: Product & Service Offering
PRODUCT & SERVICE OFFERING © Core & Main All Rights Reserved. Confidential and Proprietary Information. 17
Slide 18: Compounding Growth Through M&A
COMPOUNDING GROWTH THROUGH M&A ~$1.7B of Capital Deployed on 35+ Acquisitions Since 2017 Maximize Market Presence Drive Value Creation Leverage Entrepreneurial Culture ▪ Significant opportunity to fill existing geographies ▪ Our size, scale and differentiated capabilities ▪ Successful track record o
Slide 19: Critical Investments from the Infrastructure Investment & Jobs Act
CRITICAL INVESTMENTS FROM THE INFRASTRUCTURE INVESTMENT & JOBS ACT $55B $50B $110B $25B to expand access to clean to protect against droughts, floods, to repair roads and bridges to create more modern, drinking water heat and wildfires, in addition to major and support major resilient and sustainabl
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Six Months Ended Twelve Months Ended July 28, 2024 July 30, 2023 July 28, 2024 July 30, 2023 July 28, 2024 January 28, 2024 July 30, 2023 Net income attributable to Core & Main, Inc. $ 119
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Net Debt Leverage As of July 28, 2024 July 30, 2023 Senior ABL Credit Facility due February 2029 $ 250 $ 115 Senior Term Loan due July 2028 1,455 1,470 Senior Term Loan due February 2031 747 - Total Debt 2,452 1,585 Less: Cash & Cash Equivalents (1