Slide 1: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation February 6, 2018
Slide 2: Cautionary statements
Cautionary statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forwa
Slide 3: Atkore Continues to Evolve
Atkore Continues to Evolve • Attractive price point and debt market for Share Repurchase Summary Atkore to acquire shares from largest shareholder Clayton, Dubilier & Rice Post • Balance sheet capacity and cash flow 12/29/17 Transaction generation continue to support acquisition Leverage Ratio1 2.0x
Slide 4: Consolidated Atkore Q1 2018 Financial Summary
Consolidated Atkore Q1 2018 Financial Summary Q1 Q1 Y/Y ($’s in millions) 2018 2017 Change Net Sales and Net Income Per Share up Net Sales $414.6 $337.6 22.8% double digits year over year Net Income $27.2 $17.4 56.4% Adjusted EBITDA(1) $58.5 $49.9 17.2% Net Sales Growth Net Income Margin 6.6% 5.1% +
Slide 5: Consolidated Atkore Q1 2018 Highlights
Consolidated Atkore Q1 2018 Highlights Acquisitions and organic initiatives Q1 Net Sales Bridge $415M driving double digit growth in Net sales, $25 $2 $19 Adjusted EBITDA, and EPS $31 $338M Organic volume growth of ~9%, reflects growth initiative traction and improving market 2017 Volume Price / Mix
Slide 6: Electrical Raceway Q1 Highlights
Electrical Raceway Q1 Highlights Strengthening volume environment and Q1 Q1 Y/Y ability to pass through raw material 2018 2017 Change ($’s in millions) inflation drove strong results Net Sales $316.5 $242.4 30.6% U.S. volume continuing to strengthen in key Adjusted EBITDA $56.2 $42.1 33.3% categorie
Slide 7: Mechanical Products & Solutions Q1 Highlights
Mechanical Products & Solutions Q1 Highlights Q1 Q1 Y/Y Strong volume & productivity performance 2018 2017 Change ($’s in millions) more than offset by unfavorable mix and inflation timing Net Sales $98.6 $95.7 3.0% Market volume gained momentum in core inline Adjusted EBITDA $10.8 $15.8 (31.5%) gal
Slide 8: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio (1) ($mm) 12/29/2017 Cash and cash equivalents $39.8 5.2x Total Debt $532.0 3.5x CapEx $8.2 2.3x Net cash from operating activities $48.9 2.1x 1.8x Adjusted EBITDA $58.5 Leverage Ratio (1) FY 2014 FY 2015 FY 2016 FY 2017 Q1 2018 Total de
Slide 9: Impact of U.S. Federal Tax Reform
Impact of U.S. Federal Tax Reform Q1 2018 Impact Fiscal 2018 Impact • Benefits from Lower Full Year Rate due to • Approximately 12% Reduction in Effective Federal Tax Reform Tax Rate Versus Prior Guidance • Net Deferred Tax Liabilities are Revalued at - Partial Year Decrease in U.S. Tax Rate from Lo
Slide 10: 2018 Financial Outlook Summary
2018 Financial Outlook Summary Q2 2018 FY 2018 Electrical Raceway Volume +Low to Mid-Single Digits Segment Adjusted EBITDA* $50 - $55M $215 - $225M Volume +Low to Mid-Single Digits Mechanical Products & Solutions Segment Adjusted EBITDA* $15 - $18M $60 - $65M Adjusted EBITDA* $58 - $62M $245 - $260M
Slide 11: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 12: Segment Information
Segment Information Three months ended December 29, 2017 December 30, 2016 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 316,523 $ 56,160 17.7% $ 242,385 $ 42,117 17.4% Mechanical Products & Solutions 98,574 $ 10
Slide 13: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three months ended (in thousands, except per share data) December 29, 2017 December 30, 2016 Net income $ 27,189 $ 17,382 Stock-based compensation 3,564 2,720 Loss on extinguishment of debt — 9,805 Other (a) 507
Slide 14: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. TTM Three months ended December 29, December 29, September 30, (in thousands) 2017 2017 2017 June 30, 2017 March 31, 2017 Net income $ 94,446 $ 27,189 $ 20,857 $ 27,465 $ 18,935 Interest expense, net 23,362 6,5
Slide 15: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. December 29, September 30, September 30, September 25, September 26, ($ in thousands) 2017 2017 2016 2015 2014 Short-term debt and current maturities of long-term debt $ 4,215 $ 4,215 $ 1,267 $ 2,864 $ 42,887 Long