Slide 1: Fourth Quarter and Full Year 2023 Earnings Presentation and Business Update
Fourth Quarter and Full Year 2023 Earnings Presentation and Business Update November 17, 2023 © Atkore
Slide 2: Cautionary Statements
Cautionary Statements This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (the “Company” or “Atkore”) or its operational and financial in
Slide 3: Today's Discussion
Today’s Discussion 1. FY 2023 Results & FY 2024 Outlook 2. Business Update & Strategic Growth Opportunities 3. Updated Capital Deployment Model & Long-Term Outlook © Atkore 3
Slide 4: FY 2023 Year in Review
FY 2023 Year in Review Delivered strong Maintained strong Achieved product financial results well balance sheet with vitality in the high ahead of initial FY 2023 Total Debt Leverage single digits as a outlook Ratio < 1x percentage of FY 2023 Net Sales Awarded multiple Repurchased over $490 Received
Slide 5: Solid Results in Q4 and Full Year 2023
Solid Results in Q4 and Full Year 2023 Q4 Q42023 2023 Net Sales Net Income Adjusted EBITDA1 Diluted EPS Adjusted Diluted EPS1 $M $M $M $/share $/share -15% -36% -29% -30% -24% 1,029 221 325 5.18 5.52 924 203 293 870 4.26 4.39 232 4.21 3.63 141 502 477 54 89 98 46 0.94 1.11 1.01 1.18 Q4 Q4 Q4 Q4 Q4 Q
Slide 6: Consolidated Atkore Bridges
Consolidated Atkore Bridges Q4 2023 Net Sales Bridge Adjusted EBITDA Bridge1 Adjusted Diluted EPS Bridge1 $1,029M $19 $325M $1 $5.52 $10 $1 $870M $92 $0 $0.37 $0.17 $4.21 $174 $15 $3 $232M $15 $1.55 $0.02 $0.28 $174 2022 Volume Price M&A Solar Other2 2023 2022 Volume Price Cost M&A Solar Other2 2023
Slide 7: Segment Bridges
Segment Bridges Electrical Safety & Infrastructure Y/Y ($’s in millions) Y/Y ($’s in millions) Q4 2023 Q4 2022 Q4 2023 Q4 2022 Change Change Net Sales $649.8 $795.2 (18.3%) Net Sales $220.2 $233.9 (5.8%) Adjusted EBITDA $237.6 $308.8 (23.1%) Adjusted EBITDA $15.1 $36.4 (58.4%) Adjusted EBITDA Margin
Slide 8: Key Product Area Trends & Review
Key Product Area Trends & Review FY 2023 Net Sales by Volume/Mix % Est. FY 2024 Product Area Review & Key Product Area1 Compared to Volume/Mix % Key Comments FY 2022 Compared to FY 2023 Moderate year-over-year comparisons for PVC related products after channel inventory destocking in Plastic Pipe, -
Slide 9: Initial FY 2024 Outlook
Initial FY 2024 Outlook Initial FY 2024 Outlook underpinned by anticipated low double digit percentage volume growth in FY 2024 driven by projected growth across all key product areas Outlook Summary Outlook Items for Q1 2024 FY 2024 FY 2024 Consolidated Atkore Outlook Outlook Comments & Perspective
Slide 10: Key Bridging Assumptions FY 2024 vs. FY 2023
Key Bridging Assumptions FY 2024 vs. FY 2023 We expect continued normalization of average selling prices in key product lines such as PVC electrical conduit, and expect a portion of the pricing outperformance in FY 2022 to continue to normalize in FY 2024 vs. FY 2023 FY 2023 Assumptions Summary – FY
Slide 11: Structurally Improved Our Business Since IPO
Structurally Improved Our Business Since IPO Annual Net Sales & Adjusted EBITDA, $M Key Discussion Items We have structurally improved, diversified $3,914M and elevated the profitability of the Net Sales $3,519M business over the past 7+ years $3.5B - $3.65B Adj. EBITDA1,2 Estimated $400M of sustain
Slide 12: Business Update & Strategic Growth Opportunities
Business Update & Strategic Growth Opportunities © Atkore 12
Slide 13: Atkore: a Compelling Investment
Atkore: a Compelling Investment Outstanding Financial Profile Strong liquidity position with a balance sheet ready to support and help drive future growth Differentiated & Diversified Product Portfolio Diverse catalog of must-stock products for electrical distributors including electrical conduit, c
Slide 14: Strong Financial Profile Supports Future Growth
Strong Financial Profile Supports Future Growth Cash Flow from Operating Activities FY 2023 Cash Flow Bridge $M +453% $M $787 $808 $808 $573 $219 $83 $249 $389M $388M $210 $146 $491 $16 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2022 Cash Flow Capital M&A Stock Net Other FY 2023 Cash flow fr
Slide 15: Our Products Are All Around You
Our Products Are All Around You Wire Basket Cable Armored Cable Tray & Fittings Flexible & Liquid Tight Electrical Electrical Conduit Prefabrication Cable Tray, Industrial Flexible Ladder & Fittings Electrical Conduit Steel Conduit & Fittings Metal Framing & Fittings (Including Seismic) Specialty El
Slide 16: Over 90% of Atkore is Electrical Infrastructure
Over 90% of Atkore is “Electrical Infrastructure” FY 2023 Net Sales, $3.5B Significant Portion of S&I is “Electrical Support” Key Product Categories Include: Cable Tray North America Construction Services Metal Framing Safety & 16% Infrastructure 76% – “Electrical Support” Electrical 8% Sub-Station
Slide 17: Exposed to Strong Electrical MegaTrends
Exposed to Strong Electrical MegaTrends MegaTrends supported by long-term federal programs with incentives to drive demand across Atkore’s five key product areas Renewable Energy Grid Hardening Build America, Buy America | Inflation Reduction Act Build America, Buy America | Infrastructure Investmen
Slide 18: Conduits of Growth: Category Expansion Initiatives
Conduits of Growth: Category Expansion Initiatives Status update & timing of financial benefits related to key category expansion initiatives Solar Related Torque Regional Service HDPE Power & Tube Capacity Centers Telecommunications Ramping Indiana facility Building out Texas and Georgia sites Shor
Slide 19: New Hobart, Indiana Facility
New Hobart, Indiana Facility Welcome to Hobart! Progress Updates Products manufactured at this site include select metal conduit products and solar torque tubes with potential capabilities for other product lines New in-line galvanized production line has been operational since the end of Q3 after a
Slide 20: Regional Service Centers
Regional Service Investing in new Regional Service Centers Centers (RSC) in Texas & Georgia that are projected to help drive growth in FY 2025, and enhance our ability to service and support growing parts of the country Atkore Regional Service Centers © Atkore 20 20
Slide 21: HDPE Power & Communications
HDPE Power & Communications Integration Status Complete Complete Complete Complete Complete HDPE pipe and conduit HPDE pipe and conduit HPDE pipe and conduit HPDE/PVC recycling HPDE conduit company in Allendale, manufacturing company company based in Oregon company based in manufacturer in Lovelady,
Slide 22: Updated Capital Deployment Model & Long-Term Outlook
Updated Capital Deployment Model & Long- Term Outlook © Atkore 22
Slide 23: FY 2024 Capital Deployment Update
FY 2024 Capital Deployment Update Atkore’s Board of Directors Adds Quarterly Dividend Program to Company’s Capital Deployment Model Strong past performance and future outlook: Decision supported by strong, sustained performance over a multi-year period and confidence in the future as FY 2023 conclud
Slide 24: Updated Capital Deployment Model
Updated Capital Deployment Model Balanced Capital Deployment Model Focused on Growth & Returns to Stockholders Updated Capital Deployment Model Status Update ~$200M in expected capital expenditures in FY 2024; Capital includes further investment in both our Conduits of Growth and Target Cash Flow fr
Slide 25: Investing In Our Future
Investing In Our Future FY 2023 Capital Expenditures FY 2024 & Future Planning Plan to further grow new Indiana facility with capabilities to support global mega projects Routine Continue to invest and grow service capabilities ~30% with strategically located warehousing operations Expect continued
Slide 26: Strategy On Track to Deliver Future Performance
Strategy On Track to Deliver Future Performance We expect our Conduits of Growth and Capital Deployment Model to help drive future performance Illustrative Adjusted Diluted EPS1,2 Bridge, $/share $21.55 $19.40 $16 - $17 >$18 $12.98 $3.62 $3.78 $2.78 $1.65 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2
Slide 27: Key Takeaways
Key Takeaways Outstanding Financial Profile Strong liquidity position with a balance sheet ready to support and help drive future growth Differentiated & Diversified Product Portfolio Diverse catalog of must-stock products for electrical distributors including electrical conduit, cable and other ele
Slide 28: Appendix
Appendix © Atkore 28
Slide 29: Q4 Income Statement Summary
Q4 Income Statement Summary Y/Y Y/Y % ($’s in millions) Q4 2023 Q4 2022 Change Change Net Sales $869.9 $1,029.0 ($159.1) (15.5%) Operating Income $189.4 $296.8 ($107.4) (36.2%) Net Income $140.9 $220.8 ($79.9) (36.2%) Adjusted EBITDA1 $232.0 $325.1 ($93.1) (28.6%) Adjusted EBITDA Margin2 26.7% 31.6%
Slide 30: FY 2023 Income Statement Summary
FY 2023 Income Statement Summary Y/Y Y/Y % ($’s in millions) FY 2023 FY 2022 Change Change Net Sales $3,518.8 $3,913.9 ($395.2) (10.1%) Operating Income $893.5 $1,233.8 ($340.3) (27.6%) Net Income $689.9 $913.4 ($223.5) (24.5%) Adjusted EBITDA1 $1,042.1 $1,341.8 ($299.7) (22.3%) Adjusted EBITDA Marg
Slide 31: Segment Information
Segment Information Three Months Ended September 30, 2023 September 30, 2022 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 649,787 $ 237,577 36.6 % $ 795,220 $ 308,783 38.8 % Safety & Infrastructure 220,239 15,139 6.9 %
Slide 32: Segment Information
Segment Information Fiscal Year Ended September 30, 2023 September 30, 2022 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 2,675,074 $ 1,004,853 37.6 % $ 3,013,755 $ 1,273,410 42.3 % Safety & Infrastructure 844,158 103,23
Slide 33: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three Months Ended Fiscal Year Ended September 30, September 30, September 30, September 30, (in thousands, except per share data) 2023 2022 2023 2022 Net income $ 140,925 $ 220,802 $ 689,899 $ 913,4
Slide 34: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three Months Ended September 30, September 30, September 30, September 30, September 30, (in thousands, except per share data) 2023 2022 2021 2020 2019 Net income $ 140,925 $ 220,802 $ 202,561 $ 54,2
Slide 35: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, September 30, (in thousands, except per share data) 2023 2022 2021 2020 2019 2018 2017 Net income
Slide 36: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three Months Ended Fiscal Year Ended September 30, September 30, September 30, September 30, (in thousands) 2023 2022 2023 2022 Net income $ 140,925 $ 220,802 $ 689,899 $ 913,434 Income tax expense 39,537 66,557 160,391 290,186 De
Slide 37: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three Months Ended September 30, September 30, September 30, September 30, September 30, (in thousands) 2023 2022 2021 2020 2019 Net income $ 140,925 $ 220,802 $ 202,561 $ 54,241 $ 45,997 Income tax expense 39,537 66,557 65,222 20
Slide 38: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three Months Ended September 30, March 31, December 30, September 30, March 25, December 24, (in thousands) 2023 June 30, 2023 2023 2022 2022 June 24, 2022 2022 2021 Net income $ 140,925 $ 201,289 $ 174,194 $ 173,492 $ 220,802 $ 2
Slide 39: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, September 30, (in thousands) 2023 2022 2021 2020 2019 2018 2017 Net income $ 689,899 $ 913,434 $ 587,857 $ 152,302 $ 139,051 $ 1
Slide 40: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three Months Ended September 30, September 30, December 30, (in thousands) 2023 2023 June 30, 2023 March 31, 2023 2022 Net income $ 689,899 $ 140,925 $ 201,288 $ 174,194 $ 173,492 Interest expense, net 35,232 8,588 8,682 8,475 9,488
Slide 41: Total Debt to Net Debt and Leverage Ratio
Total Debt to Net Debt and Leverage Ratio Consolidated Atkore Inc. September 30, September 30, September 30, September 30, September 30, September ($ in thousands) 2023 2022 2021 2020 2019 30, 2018 Short-term debt and current maturities of long-term debt $ — $ — $ — $ — $ — $ 26,561 Long-term debt 7
Slide 42: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, (in thousands) 2023 2022 2021 2020 2019 2018 Net cash provided by operating activities $ 807,634 $ 786,835 $ 572,902 $ 248,762 $ 209,694 $ 145,
Slide 43: Glossary of Terms
Glossary of Terms Abbreviations listed in alphanumeric order Abbreviation Description Abbreviation Description 1H First Half LDD% Low Double Digit Percentage 2H Second Half LSD% Low Single Digit Percentage ABS Atkore Business System M Million Adj. Adjusted M&A Mergers & Acquisitions B Billion MSD% M
Slide 44: atkore.com
A Atkore A Atkore atkore.com BUILDING BETTER TOGETHER