Slide 1: Q3 2022 Earnings Presentation
November 8, 2022 DAVE FLITMAN, President & CEO • PETER JACKSON, CFO Q3 2022 Earnings Presentation
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other s
Slide 3: Our Strategic Priorities Fuel Long-term Profitable Growth
Our Strategic Priorities Fuel Long -ter m Profitable Growth Organic Growth Drive Continue to Pursue of Value-added Operational Build Our Strategic Products and Excellence High-Performing Tuck-in Services Culture Acquisitions ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 3
Slide 4: Executing Against Our Strategy in Q3 2022
Executing Against Our Strategy in Q3 2022 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ On October 3, acquired Pima Door & Supply and Sunrise Carpentry with annual sales of ~$10 million ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 4
Slide 5: Delivering Record Third-Quarter Performance
Delivering Record Third-Quar ter Perfor mance $6.9B $5.8B $1.2B $6.26 20.3% $1.5B $5.20 21.8% Net Net Sales Sales Adj. Adj. EPS1 1 EBITDA Adj.Adj. EBITDA Margin1 EBITDA Adj. EPS Adj. EBITDA 1 Margin 24.2%Increase 24.2% 4.6% Increase Increase2 126.8% 20.1% Increase Increase2 260 bps Increase2 53.4% I
Slide 6: Disciplined M&A Approach Continued in Q3 2022
Disciplined M&A Approach Continued in Q3 2022 Acquisition FY21 Sales1 Date Rationale ▪ Provides dedicated millwork capability in the high-growth $10M Q4 2022 ▪ Successfully completed a substantial Phoenix, AZ metro area number of value-enhancing acquisitions ▪ Leading provider of roof and floor trus
Slide 7: Continuing to Build Out Digital Solutions Platform
Continuing to Build Out Digital Solutions Platfor m ✓ Launching the MVP of our builder portal – myBLDR.com – in Q1 2023; ✓ Completed agreements with SnapADU and Creative accelerates the ability to sell digital services to more customers Homes for our configurable visualization tool, adding ~300 annu
Slide 8: Flexible Business Model and Downturn Playbook
Flexible Business Model and Downtur n Playbook Ongoing Actions Downside Actions Value Creation Opportunities ✓ ~70% of SG&A expense is variable Discretionary spending reductions Highly accretive share repurchases ✓ Self-adjusting variable compensation – Freeze/reduce headcount Tuck-in acquisitions t
Slide 9: Q3 2022 Financial Update
Q3 2022 Financial Update Net Sales ($M) Bridge (Q3 2021 vs. Q3 2022) $667 $414 $5,509 +6.9% Core Organic $5,761 +5.2% Acquisitions Q3 2021 Non-Commodity Commodity Q3 2022 Q3 2022 Net Sales Mix by End Market Core Organic Sales Highlights Repair & Remodel/Other ▪ Single-Family: +1.8% with growth slowi
Slide 10: Broad Strength Across Product Portfolio
Broad Strength Across Product Por tfolio Net Sales ($M) by Product Category (Q3 2021 vs. Q3 2022) Value-Added Products Specialty Building Products & Services Lumber & Lumber Sheet Goods Manufactured Products Windows, Doors & Millwork $1,173 $1,294 $960 +22% $2,406 $1,478 +17% +46% -25% $1,259 $883 $
Slide 11: Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Balanced Capital Allocation Priorities Net Leverage Improvement 1 2 1.4x Base Business 4.2x Leverage 3 3.1x 2.5x 1.3x 1.0x 4 0.7x 2017 2018 2019 20201 2021 Q3 2022 Strong Free Cash Flow Weighted Average Debt Maturity of ~8 Years2
Slide 12: Base Business Expectations for 2022E Aligned with Long Term Plan
Base Business 1 Expectations for 2022E Aligned with Long Ter m Plan Over 60% of BFS’s Base Business1 Majority of EBITDA Growth is Driven by Value-Added Products is Non-Commodity and Sustainable Operations Improvement / Synergy Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base Business Commo
Slide 13: Updated 2022 Outlook
Updated 2022 Outlook 2022 Full Year Financial Expectations Metrics Current Guidance Prior Guidance 2021 Actual Base Business Sales1 Unchanged 8% to 12% growth $15.7 billion Base Business Adjusted EBITDA1 Unchanged 18% to 22% growth $1.8 billion Base Business Adjusted EBITDA margin1 Unchanged 120 to
Slide 14: Updated 2022 Full Year Assumptions
Updated 2022 Full Year Assumptions 2022 Full Year Assumptions Metrics Current Guidance Prior Guidance Single family starts growth (BLDR geographies) Down low double-digits Down mid-single digits Multi-family starts growth (BLDR geographies) Unchanged Up low double-digits R&R growth (BLDR geographies
Slide 15: Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability Market leader in a highly fragmented industry Growing portfolio of value-added products and solutions Exceptional geographic, customer and end market diversity Strategic investment in value-added capacity, driv
Slide 16: Appendix
Appendix © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 16
Slide 17: Sales and Adj. EBITDA Projection by Commodity Price at Normalized Margins
Sales and Adj. EBITDA Projection by Commodity Price at Nor malized Margins Estimated Base Business Performance at Various Commodity Cost Assumptions $/mbf Sales ($B) Adj. EBITDA ($B) Assumptions ▪ Price fluctuations can result in materially different results than in a static $400 $16.2 – $18.0 $2.0
Slide 18: Q3 2022 Financials
Q3 2022 Financials ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 18
Slide 19: Q3 2022 Financials
Q3 2022 Financials ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 19
Slide 20: Q3 2022 Financials
Q3 2022 Financials ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 20
Slide 21: Reconciliations
Reconciliations ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 21
Slide 22: Reconciliations
Reconciliations ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 22
Slide 23: Reconciliations
Reconciliations ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 23
Slide 24: Reconciliations
Reconciliations ©COPYRIGHT BUILDERS FIRSTSOURCE. ALL RIGHTS RESERVED. 24