Slide 1: Strong Foundation. Stronger Future. Investor Presentation August 2022
STRONG FOUNDATION. STRONGER FUTURE. Simpson Manufacturing Co., Inc. Investor Presentation August 2022 EXHIBIT 99.1
Slide 2: Safe Harbor
2 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 2IE of the Securities Exchange Act of 1934, as amended. Forward-looking statements genera
Slide 3: Investment Highlights
3 Investment Highlights Industry leader with unique business model, strong brand recognition and trusted reputation Diversified product offerings and geographies mitigate exposure to cyclical U.S. housing market Leadership position in wood products with significant opportunities in all addressable m
Slide 4: Simpson's Brand and Culture
4 Simpson’s Brand and Culture At Simpson, we describe the unique culture of our organization as our “Secret Sauce.” To provide solutions that help people design and build safer, stronger structures. OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Quality Produc
Slide 5: 27-Year Trading History
5 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 Note: Stock chart depicts SSD trading history from May 25, 1994 through August 12, 2022. 27-Year Trading History 5/25/1994 Initial public offering at $11.50 (or $2.875 adjusted for two stock splits in August 2002 & November 2004) 3/
Slide 6: Our Strong Business Model
6 • Innovation • Research & Testing • Technology • Technical & Field Support • Training • Product Availability Long-standing, successful relationships with: • Engineers • Code Officials • Builders • Contractors • Lumberyards • Home Centers • Pro Dealers Our Strong Business Model • Connector Market L
Slide 7: Our Multilayered Approach
7 Our Multilayered Approach • 564 Issued Patents (US and foreign; utility and design) • 1,869 Registered Trademarks (US and foreign) • 186 Patents Pending (US and foreign) • 236 Code Reports Innovation Research & Testing Technical & Field Support Product Availability Technology • 7 Accredited Test L
Slide 8: Core Addressable Market
8 Core Addressable Market(1) Wood Connectors & Truss Concrete Market Size $15.0 B Addressable Market $1.3 B (9%) SSD Share $267 M (21%) Market Size $10.1 B Addressable Market SSD Share $489 M (28%) Market Size/ Addressable Market $2.5 B SSD Share $1.32 B (53%) Fasteners $1.7 B (17%) (1) Note: Market
Slide 9: Commitment to Growth
9 Commitment to Growth OEM R&R / DIY STRUCTURAL STEEL MASS TIMBER KEY GROWTH INITIATIVES FOCUSED ON: CONCRETE LEADER IN ENGINEERED LOAD-RATED CONSTRUCTION FASTENING SOLUTIONS LEADER IN CUSTOMER-FACING TECHNOLOGY
Slide 10: OEM
10 OEM RATIONALE KEY GOAL STRATEGY • >$90 M total addressable market primarily with fastening technologies • Potential to develop other engineered solutions • 2,500 existing Simpson products applicable for OEM needs • Our solutions make the industry more efficient • Aligned with the Simpson business
Slide 11: OEM Spotlight
11 Truck Bed Screw Strong Drive® TIMBER Screw Quik Drive® OEM Spotlight Existing line of fasteners and anchors for OEM Truck bed and crating installations using Quik Drive® tool and collated fasteners SOLUTION Racking installation using Titen HD® Anchors Stainless-Steel Titen HD® Anchor
Slide 12: R&R / DIY
12 RATIONALE KEY GOAL STRATEGY • $500-$700 M total addressable market: decks, patios, porches, pergolas, gazebos, fencing and garage organization • Existing product line with potential for several extensions • Established channel/partners • Proven approach with Outdoor Accents • Aligned with the Sim
Slide 13: R&R / DIY Spotlight
13 R&R / DIY Spotlight SOLUTION Outdoor Accents® decorative hardware – two collections (architectural styles) for building outdoor structures. Mission Collection™ Avant Collection™ Outdoor Accents® hardware used to build pavilions Fastener reset at home center customer New fastener sets include Quik
Slide 14: Mass Timber
14 Mass Timber RATIONALE KEY GOAL STRATEGY • $200 M total addressable market • Strong double digit growth rate in N. America • Positive environmental impact • New market; many product opportunities • Aligned with the Simpson business model Become the engineers’ partner of choice for mass timber conn
Slide 15: Mass Timber Spotlight
15 Mass Timber Spotlight New dedicated line of screws for cross laminated timber (CLT) SDS and SDWS CMSTCBH Simpson products utilized in CLT renovation project at an international airport in North America SOLUTION MDCST48 Simpson products utilized in construction of CLT commercial office building in
Slide 16: Concrete
16 Concrete RATIONALE KEY GOAL STRATEGY • $1.3 B total addressable market • Growth rate linked to infrastructure spend • Simpson is a recognized leader in concrete and cold-formed steel solutions • Many products and applications require engineering, testing and code approval • Aligned with the Simps
Slide 17: Concrete Spotlight
17 Concrete Spotlight SOLUTION Asphalt repair conducted at Company parking lot 44oz. Carbon Fabric A wide range of product solutions for concrete and masonry projects. SET-3G™ Adhesive Heli-Tie™ Helical Stitching Tie Carbon fabric used as fiber-reinforced polymer (FRP) installation on a concrete str
Slide 18: Structural Steel
18 Structural Steel RATIONALE KEY GOAL STRATEGY • > $770 M total addressable market • Structural steel construction is roughly half of the construction spend in North America • Field welder shortage: addressed by bolted structural connections • Bolted connections can improve productivity by 25% vs.
Slide 19: Structural Steel Spotlight
19 Structural Steel Spotlight Yield-Link® connection for structural steel framing Special moment frame Yield-Link® design used to build education buildings in California (left) and in the construction of 10 recreational/amusement locations across the U.S (below) SOLUTION
Slide 20: Construction Fasteners
20 Be the global market leader in engineered / load-rated construction fastening solutions. Construction Fasteners 5 STRATEGY • Develop critical mass by expanding our engineered fastener business for DIY/R&R, OEM and Mass Timber markets • Provide innovative products that are preferred by both end-us
Slide 21: Customer-Facing Technology Solutions
21 Customer-Facing Technology Solutions • 3D Deck Planner • 3D Pergola Planner • Floor, roof and wall design software • Accurate take-offs • EWP design software • e-commerce • Accurate take-offs • Options management Builders Lumberyards & Distributors Repair & Remodel & DIY Component / Truss Manufac
Slide 22: Strong Business Drives Stockholder Value
22 North America $1,363 Europe $197 Asia/Pacific $13 Wood Construction $1,361 Concrete Construction $211 Strong Business Drives Stockholder Value Our 2021 Sales by Product… ($ USD Millions) and Across Operating Segments ($ USD Millions) $1.04 $0.87 $1.05 $1.29 $1.38 $1.86 $1.94 $2.72 $2.98 $4.27 $6.
Slide 23: Historical Net Sales
23 Historical Net Sales Our investments in adjacent products and markets have helped mitigate our exposure to a cyclical U.S. housing market over time. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 $0 $100 $200 $300 $400 $
Slide 24: Historical Operating Income Margin Versus Proxy Peer Average
24 19.9% 15.1% 13.2% 6.0% 14.1% 12.3% 9.4% 11.6% 13.3% 13.8% 16.5% 14.2% 16.0% 15.9% 19.9% 23.3% 13.7% 5.9% (7.3%) (2.7%) 3.7% 1.1% 3.8% 5.4% 7.8% 9.9% 12.0% 12.6% 11.5% 9.5% 9.6% 12.5% (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 25: ROIC Within Top Quartile of Proxy Peers
25 31.5% 28.5% 24.6% 18.3% 18.2% 16.6% 12.9% 12.8% 10.8% 10.6% 8.8% 5.3% 5.3% 4.3% 3.9% 3.5% ROIC(1) Within Top Quartile of Proxy Peers(2) (1) Return on Invested Capital (ROIC) reflects latest fiscal year reported. See appendix for ROIC definition. (2) Proxy peer average includes: AAON, AMWD, APOG,
Slide 26: Well-Positioned to Drive Growth
26 $119 $160 $206 $208 $151 $58 $29 $33 $33 $44 $28 $2 $7 $8 $6 $37 $40 $40 $40 $42 $70 $111 $61 $76 $24 2017 2018 2019 2020 2021 Cash Generated by Operations Capital Expenditures Acquisitions & Purchases of Intangible Assets Dividends Share Repurchases Well-Positioned to Drive Growth We are well-po
Slide 27: Capital Return History
27 Quarterly Cash Dividends Capital Return History $546.1 Million 2019 – 2022 YTD(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($703.0 M) less Capital expenditures ($156.9 M) 38.0% 26.3% Repurchases of Common Stock (1) As of June 30, 2022.
Slide 28: Use of Cash Priorities
28 Use of Cash Priorities Cash Flow From Operations Share Repurchases Investing in growth initiatives (engineering, people, capacity, testing, etc.) CapEx for growth, efficiency and maintenance Potential M&A Maintain quarterly cash dividends(1) Consistently and moderately raise dividends Opportunist
Slide 29: Acquisition Strategy
29 Acquisition Strategy • Strengthen our business model by expanding our product lines, end-use markets and developing complete solutions for the markets in which we operate • Improve our market share in our growth initiatives • Improve our manufacturing capabilities and efficiencies to reduce lead-
Slide 30: ETANCO Group Acquisition
30 ETANCO Group Acquisition Acquisition Target Financial Terms & Valuation Acquisition of ETANCO Group Net Sales(1): €258M (~$291M) Operating Income Margin(1): 19.7% Financing Sources Financial Impacts Timing & Closing Conditions €725M (~$800M(2)) net purchase price Purchase price reflects
Slide 31: ETANCO Group – Strategic Rationale & Summary
31 ETANCO Group – Strategic Rationale & Summary Aligns with Simpson’s business model and values Established brand reputation Dedication to customer service Broad portfolio of high-quality, innovative solutions Supports 5-Year Company Ambitions Promotes continued above-market growth relat
Slide 32: ETANCO Group Overview
32 ETANCO is a leading designer, manufacturer and distributor of fixing and fastening solutions for the building construction market in Europe Established in 1952 and headquartered in Le Pecq, France ~900 employees 8 manufacturing and distribution sites across Europe Established brand repu
Slide 33: ETANCO Group's Key Products and Applications
33 6 1 2 7 8 4 5 3 9 ETANCO Group’s Key Products and Applications Waterproofing Fixing membrane to avoid water incursion 1 Roofing Fixing metal roof to a building structure 2 Cladding Fixing of protection panels 3 Facade Fixing metal, concrete or stone frameworks for façade backing lining 4 5 Anchor
Slide 34: Acquisition Expands Share of Addressable Market
34 Acquisition Expands Share of Addressable Market(1) $1.5 B (15%) (1) Market share based on net sales as of the full year ended December 31, 2021. Market sizes based on internal estimates using information as of December 31, 2021. Includes North America, Europe and Pacific Rim. ETANCO’s leading pos
Slide 35: Pro Forma Financial Information: Select Data
35 ($USD in millions, except per share data) Last Twelve Months Ended Transaction Accounting Adjustments – Financing(2) Transaction Accounting Adjustments – Acquisition(3) Pro Forma Combined Company (Unaudited, under U.S. GAAP) 12/31/2021 Simpson (Audited) 9/30/2021 ETANCO (Unaudited, under French G
Slide 36: Pro Forma Financial Information: Select Data (Continued)
36 Pro Forma Financial Information: Select Data (Continued) Note: The Pro Forma financial information does not reflect the cost of any integration activities, or the benefits from any synergies that may result from combining the two companies. (1) Converted from Euros to U.S. Dollars at an average e
Slide 37: Pro Forma Financial Information: Select Data (Continued)
37 ($USD in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net Sales $593.2 $498.8 $1,166.0 $923.6 Net Income $104.8 $79.5 $210.8 $114.9 Pro forma earnings per common share: Basic $2.43 $1.83 $4.88 $2.65 Diluted $2.42 $1.82 $4.87 $2.63 Weig
Slide 38: Pro Forma Financial Information: Select Data (Continued)
38 Pro Forma Financial Information: Select Data (Continued) Note: The unaudited pro forma results above includes the following non-recurring charges to net income: (1) Acquisition and integration related costs of $5.9 million, $6.9 million, and $2.3 million, which were incurred during the three mont
Slide 39: Sustainability and Environmental and Social Responsibility
39 Sustainability and Environmental and Social Responsibility “Our people are the most vital part of our business, and providing a safe, healthy, sustainable, and rewarding working environment is of fundamental importance.” – Karen Colonias • Issued inaugural ESG report in March 2020 • Reported upda
Slide 40: 5-Year Company Ambitions
40 5-Year Company Ambitions Strengthen our values-based culture Be the partner of choice Be an innovation leader in the markets we operate Continue above market growth rate relative to U.S. housing starts Continue expanding our operating income margin to remain within the top quartile of proxy peers
Slide 41: Appendix
41 Appendix
Slide 42: A Pioneer in Construction Solutions
42 A Pioneer in Construction Solutions 1956 1970 1984 1996 1997 1999 2005 Simpson structural connectors are the industry standard. 1994 NYSE LISTING (SSD) OUR FOUNDER BARC SIMPSON EXPANSION INTO CONCRETE EXPANSION INTO FASTENERS FIRST CONNECTOR CONNECTOR MARKET LEADER EXPANSION INTO WOOD SHEAR WALLS
Slide 43: A Pioneer in Construction Solutions (Continued)
43 A Pioneer in Construction Solutions (Continued) Simpson is an innovation leader in fasteners, concrete repair, moment frames, construction software and structural steel solutions. 2011 2013 2016 20192012 2008 2009 20202017 EXPANSION INTO SS FASTENERS EXPANSION INTO ORDINARY MOMENT FRAMES FURTHER
Slide 44: Commitment to Innovation: State-of-the-Art Test Labs
44 Commitment to Innovation: State-of-the-Art Test Labs We are dedicated to research, testing, engineering and innovation through our state-of-the-art test labs, which provides us with a better understanding of how structures perform, advances our design technology and improves building safety. WOOD
Slide 45: Return on Invested Capital (ROIC) Definition
45 Return on Invested Capital (“ROIC”) Definition When referred to in this presentation, return on invested capital (“ROIC”) for a fiscal year is calculated based on (i) the net income of that year as presented in the Company’s consolidated statements of operations prepared pursuant to generally acc
Slide 46: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE.