Core & Main, Inc. · NYSE:CNM

Core & Main — Q3 2022 Earnings Presentation

20 slides from Core & Main's earnings presentation, Dec 13, 2022

1. Slide 1: Fiscal 2022 Third Quarter Results

   Fiscal 2022 Third Quarter Results DECEMBER 13, 2022

2. Slide 2: Cautionary Statements

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. CAUTIONARY STATEMENTS 2 Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Ref

3. Slide 3: Today's Presenters

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. TODAY’S PRESENTERS 3 Steve LeClair Chief Executive Officer Mark Witkowski Chief Financial Officer Robyn Bradbury VP, Finance & Investor Relations

4. Slide 4: Business Update

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. BUSINESS UPDATE 4

5. Slide 5: Q3 2022 Business Update

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. Q3 2022 BUSINESS UPDATE 5 ✓ Delivered strong Q3 2022 results by executing on our growth strategies, including share gains, acquisitions and margin expansion ✓ End-market demand remains resilient despite macro challenges ̶ M

6. Slide 6: Driving Sustainable Growth Through M&A

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. Status Closed August 2022 Closed October 2022 Closed October 2022 Closed December 2022 Number of Locations 1 3 1 4 Geography California Ohio & Pennsylvania Hawaii Florida & Georgia Product Lines Pipe, Valves & Fittings Stor

7. Slide 7: Helping Communities Build a Foundation for the Future

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. HELPING COMMUNITIES BUILD A FOUNDATION FOR THE FUTURE ▪ The city of Waukesha, Wisconsin, needed a new, sustainable water solution to continue supplying clean water to its community ▪ The city was experiencing dwindling wate

8. Slide 8: Balanced Mix Across End Markets

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. BALANCED MIX ACROSS END MARKETS 8 ResidentialNon-ResidentialMunicipal New Lot Development Repair & ReplacementNew Development Repair & ReplacementRepair & Replacement Expansion of Service ▪ New development of water, sewer a

9. Slide 9: Financial Highlights

   © Core & Main All Rights Reserved. Confidential and Proprietary Information. 9 FINANCIAL HIGHLIGHTS

10. Slide 10: Q3 2022 Operating Results

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. $105 $165 Q3'21 Q3'22 $189 $275 Q3'21 Q3'22 $371 $500 Q3'21 Q3'22 $1,405 $1,818 Q3'21 Q3'22 Q3 2022 OPERATING RESULTS 10 Net Sales Gross Profit Adjusted Net Income(1) Adjusted EBITDA(1) (1) Adjusted Net Income, Adjusted EBI

11. Slide 11: Cash Flow & Balance Sheet Highlights

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. 2.8x 1.7x Q3'21 Q3'22 CASH FLOW & BALANCE SHEET HIGHLIGHTS 11 Operating Cash Flow Net Debt Leverage(5) Q3’21 Q3’22 Y-o-Y $ Adjusted EBITDA $189 $275 $86 Investment in Operating Capital(1) (153) (87) 66 Cash Interest (12) (2

12. Slide 12: Capital Allocation Priorities

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. CAPITAL ALLOCATION PRIORITIES 12 Organic Growth & Operational Initiatives (Low capex requirements) Growth Through M&A Share Repurchases 1 2 3 Maintain Conservative Balance Sheet

13. Slide 13: Fiscal 2022 Outlook

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. FISCAL 2022 OUTLOOK 13 Core & Main is strategically positioned for continued growth ▪ Near-term end-market fundamentals expected to be mixed, but long-term outlook remains positive ̶ Municipal repair & replacement activity

14. Slide 14: Appendix

    | Appendix

15. Slide 15: Product & Service Offering

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. PRODUCT & SERVICE OFFERING 15

16. Slide 16: Multiple Growth Drivers

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. 16 Above Market Growth (+200 - 300 bps)(1) Acquisitions (+100 - 400 bps)(1) Margin Expansion (+20 - 30 bps)(1) ✓ Grow share locally by adding sales talent and training ✓ Expand into new and underpenetrated geographies ✓ Gro

17. Slide 17: Track Record of Acquisitions

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. TRACK RECORD OF ACQUISITIONS 17 Organic Growth Why We Succeed Acquisition Focus Acquirer of Choice ✓ Respected reputation in the industry ✓ Entrepreneurial culture ✓ Investment in our people ✓ Consolidate existing market po

18. Slide 18: Reconciliation of Non-GAAP Measures: Adjusted EBITDA

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. RECONCILIATION OF NON-GAAP MEASURES 18 Adjusted EBITDA & Adjusted EBITDA Margin (1) Includes depreciation of certain assets which are reflected in “cost of sales” in our Statement of Operations. (2) Represents expenses asso

19. Slide 19: Reconciliation of Non-GAAP Measures: Net Debt Leverage

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. RECONCILIATION OF NON-GAAP MEASURES 19 Net Debt Leverage ($ in Millions) October 30, 2022 July 31, 2022 May 1, 2022 January 30, 2022 October 31, 2021 Senior ABL Credit Facility due July 2026 90$ 142$ 57$ -$ -$ Senior Term L

20. Slide 20: Reconciliation of Non-GAAP Measures: Adjusted Net Income

    © Core & Main All Rights Reserved. Confidential and Proprietary Information. RECONCILIATION OF NON-GAAP MEASURES 20 Adjusted Net Income (1) Core & Main, Inc. is subject to U.S. federal, state and other income taxes with respect to its allocable share of any net taxable income of Core & Main Holdings

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