Slide 1: Fiscal 2022 Fourth Quarter and Full-Year Results
Fiscal 2022 Fourth Quarter and Full-Year Results MARCH 28, 2023
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
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
Slide 4: Business Update
Business Update STEVE LECLAIR
Slide 5: FY22 Year-in-Review
© Core & Main All Rights Reserved. Confidential and Proprietary Information. (1) As of the fiscal year ended January 29, 2023 and based on management estimates. (2) Includes 7 acquisitions during fiscal 2022 and 1 acquisition subsequent to January 29, 2023. FY22 YEAR-IN-REVIEW Delivered Record Finan
Slide 6: Track Record of Strong Performance
© Core & Main All Rights Reserved. Confidential and Proprietary Information. $3,202 $3,389 $3,642 $5,004 $6,651 FY18 FY19 FY20 FY21 FY22 6 TRACK RECORD OF STRONG PERFORMANCE Net Sales Gross Profit Adjusted EBITDA(1) Net Debt Leverage(1)(2) +20% CAGR (FY18 – FY22) +490 Basis Points (FY18 – FY22) +38%
Slide 7: Our Value Creation Targets
© Core & Main All Rights Reserved. Confidential and Proprietary Information. OUR VALUE CREATION TARGETS 7 Market Growth Above Market Growth Acquisitions Operating Leverage Operating Cash Flow +200 – 300 bps +200 – 500 bps 1.3x – 1.5x 55% – 65% Adj. EBITDA Conversion Low to Mid Single-Digit ▪ Attract
Slide 8: Secular Market Growth Fundamentals
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 8 SECULAR MARKET GROWTH FUNDAMENTALS… U.S. Municipal Water Infrastructure Spending(1) Non-Residential Starts(2) (Sq. Feet Per Million of Population) Single Family Housing Starts(3) (Starts Per Million of Population) Vacant
Slide 9: Backed by Critical Investment in U.S. Water Infrastructure
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 9 …BACKED BY CRITICAL INVESTMENT IN U.S. WATER INFRASTRUCTURE $55 BILLION to expand access to clean drinking water $50 BILLION to protect against droughts, floods, heat and wildfires, in addition to major investments in wea
Slide 10: Financial Results
Financial Results MARK WITKOWSKI
Slide 11: Q4 2022 Operating Results
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 11 Q4 2022 OPERATING RESULTS Net Sales Gross Profit Net Income Adjusted EBITDA(1) ($ in Millions) ($ in Millions) ($ in Millions) ($ in Millions) $1,246 $1,374 Q4'21 Q4'22 $327 $373 Q4'21 Q4'22 $151 $164 Q4'21 Q4'22 $79 $84
Slide 12: FY22 Operating Results
© Core & Main All Rights Reserved. Confidential and Proprietary Information. $604 $935 FY21 FY22 $5,004 $6,651 FY21 FY22 $1,280 $1,795 FY21 FY22 $225 $581 FY21 FY22 12 FY22 OPERATING RESULTS Net Sales Gross Profit Net Income Adjusted EBITDA(1) ($ in Millions) ($ in Millions) ($ in Millions) ($ in Mi
Slide 13: Cash Flow & Balance Sheet Highlights
© Core & Main All Rights Reserved. Confidential and Proprietary Information. FY21 FY22 13 CASH FLOW & BALANCE SHEET HIGHLIGHTS Operating Cash Flow Net Debt Leverage(4) Liquidity(5) ($ in Millions) ($ in Millions) 2.5x 1.4x FY21 FY22 Q4’22 FY22 Adjusted EBITDA $164 $935 Operating Capital(1) 204 (340)
Slide 14: Fiscal 2023 Outlook
© Core & Main All Rights Reserved. Confidential and Proprietary Information. FISCAL 2023 OUTLOOK 14 CommentaryKey Metric FY23 Outlook Net Sales Y-o-Y % Growth $6,455M - $6,875M -3% to +3% Adjusted EBITDA $785M - $865M Adjusted EBITDA Margin 12.2% - 12.6% Effective Tax Rate 18% - 20%(1) Operating Cas
Slide 15: Capital Allocation Framework
© Core & Main All Rights Reserved. Confidential and Proprietary Information. CAPITAL ALLOCATION FRAMEWORK 15 Capital Allocation Framework For FY23 & Beyond Priority Uses for Capital Normalized Operating Cash Flow Target to be ~55-65% of Adjusted EBITDA Organic Growth & Operational Initiatives M&A Sh
Slide 16: Appendix
| Appendix
Slide 17: Core & Main at a Glance
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 17 ▪ Leading U.S. specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services ▪ Highly fragmented $40 billion addressable market(1) ▪ 1 of only 2 national distributo
Slide 18: Our Investment Highlights
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 18 Leading position with size and scale in a fragmented market1 Multiple levers for organic growth3 Proven ability to execute and integrate acquisitions4 Strong value proposition & pivotal role in shaping our industry2 Bene
Slide 19: Our Approach to M&A
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 19 OUR APPROACH TO M&A Driving Sustainable Growth Through M&A… …By Leveraging Our Disciplined Approach Maximize Market Presence Drive Value Creation Leverage Entrepreneurial Culture ▪ Significant opportunity to fill existin
Slide 20: Product & Service Offering
© Core & Main All Rights Reserved. Confidential and Proprietary Information. PRODUCT & SERVICE OFFERING 20
Slide 21: Reconciliation of Non-GAAP Measures
© Core & Main All Rights Reserved. Confidential and Proprietary Information. RECONCILIATION OF NON-GAAP MEASURES 21 Adjusted EBITDA & Adjusted EBITDA Margin ($ in Millions) (1) Includes depreciation of certain assets which are reflected in “cost of sales” in our Statement of Operations. (2) Represen
Slide 22: Reconciliation of Non-GAAP Measures: Net Debt Leverage
© Core & Main All Rights Reserved. Confidential and Proprietary Information. RECONCILIATION OF NON-GAAP MEASURES 22 Net Debt Leverage ($ in Millions) January 29, 2023 January 30, 2022 January 31, 2021 February 2, 2020 February 3, 2019 Senior Term Loan due August 2024 -$ -$ 1,261$ 1,274$ 1,062$ Senio