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Slide 2: Disclaimer
DISCLAIMER Certain matters discussed in this presentation contains forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condi tion. These st
Slide 3: FGI Industries at a Glance
FGI INDUSTRIES AT A GLANCE FGI is a leading “B-to-B” global supplier of Kitchen & Bath products with a reputation for Innovation, Quality & Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd. | TICKER: FGI | $180MM+ REVENUE BUSINESS IPO in January 2022 35% re
Slide 4: Company Overview
COMPANY OVERVIEW SANITARYWARE - 61% REPAIR/REMODEL - ~80% ( TOILE TS & SEATS, SINK S & P E DE STA LS) NEW CONSTRUCTION - ~20% BATH FURNITURE - 30% ( V A NITIE S, M IRRORS, C A B INE TS) OTHER - 9% (CUSTOM K ITC HE N C A B INETRY , S HOWE R DOORS/WA LLS) USA - 62% PRIVATE LABELS - ~60% MASS RETAIL -4
Slide 5: Large Addressable Market with GDP+ Growth
LARGE ADDRESSABLE MARKET WITH GDP+ GROWTH SUMMARY EST. 2021 RETAIL MARKET VALUE FOR THE KITCHEN AND BATH MARKETS | The addressable market of FGI’s current product portfolio represents less than 50% of the global Kitchen & Bath product market TOTAL KITCHEN & BATH (with over $150 billion of TAM) $158.
Slide 6: Repair and Remodel Markets Provide Stable Growth
REPAIR AND REMODEL MARKETS PROVIDE STABLE GROWTH CONSISTENT YEAR-OVER-YEAR GROWTH IN EXPENDITURES FOR IMPROVEMENTS AND REPAIRS ARE EXPECTED TO GROW R&R OUTSIDE OF EXTREME RECESSIONS YEARS THROUGHOUT 2022 AND INTO EARLY NEXT YEAR Leading Indicator of Remodeling Activity HISTORICAL R&R GROWTH Second Q
Slide 7: Key Drivers of Long-Term Shareholder Value
KEY DRIVERS OF LONG-TERM SHAREHOLDER VALUE • Re-invest in core businesses with evergreen expansion • Grow Brands, Product opportunities categories and sales Channels • Selective bolt-on acquisitions • Focus on higher incremental margin • Excess free cashflow for sales opportunities LONG-TERM VALUE d
Slide 8: "Bolt-On" Strategy
“BOLT-ON” STRATEGY 1. MARKET EXAMPLE: SHOWER BUSINESSES | Thousands of small suppliers | Hired shower-door team from competitor | Evergreen product lines, categories and geographies | Grew the business to a $3.4mm Gross Profit business in short time | Look for good teams and product lines, not turna
Slide 9: Financial Overview and Second Quarter Highlights
FINANCIAL OVERVIEW AND SECOND QUARTER HIGHLIGHTS 9
Slide 10: Business Highlights – 2Q22
BUSINESS HIGHLIGHTS – 2Q22 Strong Revenue • Second quarter revenues increased 13% to $47.8 million, primarily driven by growth in both Sanitaryware and Growth Other product categories, partially offset by declines in Bath Furniture • We expanded our relationship with Hajoca, the nation’s largest pri
Slide 11: 2Q22 Consolidated Financial Results
2Q22 CONSOLIDATED FINANCIAL RESULTS Total Revenue Gross Profit Operating Income Diluted EPS $MM $MM $MM $ $31.3 $31.6 $8.8 $1.16 $194.5 $150.3 $4.9 $3.3 $0.50 $9.2 $8.4 $0.36 $42.5 $47.8 $1.7 $0.10 2Q21 2Q22 LTM - LTM - 2Q21 2Q22 LTM - LTM - 2Q21 2Q22 LTM - LTM - 2Q21 2Q22 LTM - LTM - 2Q21 2Q22 2Q21
Slide 12: Current Global Supply Chain Pressures
CURRENT GLOBAL SUPPLY CHAIN PRESSURES | Global transit times and container shipping prices have faced unprecedented pressures in 2021/2022 (COVID-19 in factories, shipping delays, etc). | FGI has mitigated 2022 supply chain and cost pressures through a continued combination of pricing actions, SKU-m
Slide 13: 2Q22 Business Line Results
2Q22 BUSINESS LINE RESULTS Sanitaryware Revenue Bath Furniture Revenue Other Revenue $MM $MM $MM $122.8 $55.1 $17.6 $111.3 $46.9 $15.5 $88.4 $38.2 $7.9 $8.2 $16.0 $5.8 $32.2 $20.7 $7.7 2Q21 2Q22 2020 2021 LTM 2Q21 2Q22 2020 2021 LTM 2Q21 2Q22 2020 2021 LTM 2Q22 2Q22 2Q22 • Sanitaryware revenue incre
Slide 14: Financial Outlook
FINANCIAL OUTLOOK 2022 Financial Outlook Revenue Operating Income Net Income $182 – 189 million $6.5 – 7.5 million $5.0 – 6.0 million 14
Slide 15: Key Investment Characteristics
KEY INVESTMENT CHARACTERISTICS TRUSTED GLOBAL STRONG ORGANIC ENHANCED “SPIN-OFF” VALUE-ACCRETIVE STRONG SUPPLIER GROWTH PROFITABILITY BOLT-ONS SHAREHOLDER ALIGNMENT We are global, diversified, and We pursue a “BPC” strategy: As a carve-out division from a We will engage in selective High insider own
Slide 16: Appendix
BPP OOK 16 APPENDIX
Slide 17: Financial Summary
FINANCIAL SUMMARY (USD) 2019 2020 2021 2Q21 2Q22 REVENUES 126,282,212 134,827,701 181,943,027 42,490,357 47,809,014 GROSS PROFIT 25,439,069 28,404,640 32,202,408 9,188,936 8,420,953 GROSS MARGINS 20.14% 21.07% 17.70% 21.63% 17.61% SELLING AND DISTRIBUTION 14,917,601 15,487,306 17,636,820 4,088,738 4
Slide 18: Financial Summary (continued)
FINANCIAL SUMMARY (continued) USE OF NON-GAAP FINANCIAL MEASURES In assessing the performance of our business, management utilizes a variety of financial and performance measures to assess our business performance, including to evaluate our ability to convert earnings from our operational performanc
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