Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Investor Presentation (March 2025)
37 slides from Simpson Manufacturing's investor presentation, Mar 7, 2025
Slide 1: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE. Simpson Manufacturing Co., Inc. Investor Presentation March 2025 Exhibit 99.1
Slide 2: Safe Harbor
2 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements genera
Slide 3: Investment Highlights
3 Investment Highlights Industry leader with strong business model, above market volume growth(1), high brand recognition and trusted reputation Diversified product offerings and geographies with ~50% exposure to the U.S. housing market Leadership position in structural solutions for wood connection
Slide 4: Celebrating Years as a Public Company
4 Celebrating 30 Years as a Public Company Performance Since IPO CEO, Mike Olosky, rings the NYSE Closing Bell on September 6, 2024 to commemorate the Company’s 30th anniversary as a publicly traded company. (1) Since its debut at $11.50 per share ($2.875 split-adjusted) at its initial public offeri
Slide 5: Simpson's Brand and Culture
5 Simpson’s Brand and Culture At Simpson, we describe the unique culture of our organization as our “Secret Sauce.” To deliver innovative solutions that help people design and build safer, stronger structures. OUR MISSION OUR COMPANY VALUES 1. Relentless Customer Focus 2. Long-Range View 3. High-Qua
Slide 6: Our Strong Business Model
6 Our Strong Business Model Why Simpson? Our Customer-Centric Approach Broad portfolio of solutions Unparalleled availability & delivery Longstanding relationships Comprehensive service Innovation leader Impactful industry outreach • 26 of top 30 builders on a program • ~250 builders representing >5
Slide 7: Broad Portfolio of Solutions
Broad Portfolio of Solutions Wood Connection Products Fastening Systems Concrete Connection Products Integrated Component Systems Wood connectors, shearwalls, connectors for cold-formed steel and structural steel Fasteners for connectors, structural screws, decking screws, and productivity solutions
Slide 8: Simpson's Value Proposition
Simpson’s Value Proposition Product Installation Per the spec, builders install Simpson products to construct homes Product Procurement Lumber dealers stock and sell Simpson products purchased by builders Product Specification Engineers design and spec Simpson products on their projects Code Complia
Slide 9: Long-Term Housing Market
9 Long-Term Housing Market Reasons to believe in the market in the mid- to long-term: • Sizable shortage of new homes after more than a decade of under-building relative to population growth • Estimated shortage of ~2 million homes in the U.S. • Rising population entering housing demand years • Agin
Slide 10: Core Addressable Market
10 Core Addressable Market(1) Wood Connectors, Truss & Lateral Concrete & Steel Connections Addressable Market $3.8 B SSD Share $1.3 B (33%) Fasteners $1.7 B (17%) Expanded view of our product lines across market segments shows many opportunities Addressable Market $5.1 B SSD Share $0.5 B (11%) Addr
Slide 11: Key End Use Markets in North America
11 5 Key End Use Markets in North America Our market focused approach enables us to better serve current customers and identify opportunities to reach new customers and product opportunities. See Appendix for additional details.
Slide 12: Driving Growth with Digital Solutions
12 Driving Growth with Digital Solutions Key focus areas to make it easier to specify and order our products: Specification tools (apps/selectors) Design/visualization, estimating, online ordering Option management, estimating Project management and truss design Free design software and plans Digita
Slide 13: Europe Strategy
13 Europe Strategy BUILDING STRONG BRANDS IN OUR CORE BUSINESS GROW WITH OUR STRONG SOLUTIONS IN OUR HIGHEST POTENTIAL MARKETS DOUBLE STRUCTURAL FASTENERS OFFER COMPLETE PRODUCT SOLUTIONS CONNECTORS FASTENERS ANCHORS STRONGER EFFORT IN COMMERCIAL NEW BUILDING AND RESIDENTIAL RENOVATION #1 IN WOOD CO
Slide 14: Strong Business Drives Stockholder Value
14 North America $1,736 Europe $479 Asia/Pacific $17 Strong Business Drives Stockholder Value Our 2024 Sales by Product… ($ USD Millions) and Across Operating Segments ($ USD Millions) EPS Dividends Per Share(1) (1) Chart represents annual dividends declared. Part of the 2013 dividend was accelerate
Slide 15: Historical Market and Financial Performance
15 Historical Market and Financial Performance Total Company Revenue & Profitability Relative to U.S. Housing Starts 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400
Slide 16: Accelerating Above Market Growth
16 Accelerating Above Market Growth Our North America operations continue to outperform U.S. housing and we are highly focused on accelerating above market volume growth beyond historical average performance while continuing to pursue strong profitability. 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.6
Slide 17: 2020 vs 2024: Significant Progress Made in a Flat Market
17 2020 vs 2024: Significant Progress Made in a Flat Market ~ 1.4 million U.S. housing starts in 2020 and 2024 Revenue = $1.25 B Op. Income = $250 M Net Pricing = ~$450 M Revenue = $2.2 B Op. Income= $430 M ETANCO = $300 M Share Gains = ~$200 M 2020 2024 1.38 M U.S. housing starts (Census Bureau) 1.
Slide 18: Our Business in 2020 vs. 2024
Our Business in 2020 vs. 2024 ✓ ~$1B more revenue ✓ ~$180M more operating profit ✓ Clearer targets and strategies ✓ Stronger market leadership in connectors, improved share in fasteners and anchors ✓ Shifted to market-focused sales ✓ Promoted high-potential talent and external experts to senior lead
Slide 19: Operating Income Margin Outperformance
19 (1) (1) Proxy peer average includes: AOS, AAON, WMS, ALLE, AMWD, APOG, AWI, ATKR, AZEK, EXP, ROCK, JHX, LPX, PATK, NX, SUM, TREX for the years 2006-2023. Includes AOS, AAON, ALLE, ROCK, LPX, PATK, TREX and WMS for the year ended December 31, 2024, WMS for the full year ended March 31, 2024, AMWD
Slide 20: Well-Positioned to Drive Growth
20 Well-Positioned to Drive Growth We are well-positioned to execute our growth strategy given our demonstrated commitment to disciplined capital allocation. $206 $208 $151 $400 $427 $338 $33 $33 $44 $62 $89 $180 $7 $8 $6 $811 $23 $79 $40 $40 $42 $44 $45 $47 $61 $76 $24 $79 $50 $100 $142 $158 $116 $
Slide 21: Quarterly Cash Dividends Capital Return History
21 Quarterly Cash Dividends Capital Return History $941.0 Million 2021 – 2024(1) Cumulative Free Cash Flow defined as: Cash flow from operations ($1,316.3 M) less Capital expenditures ($375.3 M) 26.9% 18.8% Repurchases of Common Stock(2) (1) Time frame represents January 1, 2021 to December 31, 2024
Slide 22: Use of Cash Priorities
22 Use of Cash Priorities Cash Flow From Operations Share Repurchases • Evaluating potential M&A in the markets we operate (support key growth initiatives) • Integrating ETANCO remains the priority • Maintain quarterly cash dividends(1) • Consistently and moderately raise dividends • Capital return
Slide 23: Investments to Meet Growing Demand
23 Investments to Meet Growing Demand Expansion of Columbus, OH Facility Greenfield Gallatin, TN Facility • Support fastener sales growth • Balance supply chain and reduce risk • Reduce lead times • Achieve company fill rate standards • Vertically integrate manufacturing • Future capacity to support
Slide 24: Acquisition Strategy
24 Acquisition Strategy • Focused on strengthening our business model by expanding our product lines to develop complete solutions for the markets in which we operate • Improve our manufacturing capabilities and supply chain efficiencies to reduce lead-times and bring production closer to the end cu
Slide 25: Company Ambitions
25 Company Ambitions(1) Strengthening our values-based culture Being the business partner of choice Striving to be an innovative leader in the markets we operate Continuing above market growth relative to U.S. housing starts Maintain operating income margin of >20% EPS growth ahead of net revenue gr
Slide 26: Social Responsibility
Social Responsibility Diversity, Equity and Inclusion Leadership & Development Human Capital Management Health and Safety Striving to ensure everyone at our Company feels included and empowered, and equipping our employees with the tools and confidence to nurture themselves and their careers • GOAL:
Slide 27: Appendix
| APPENDIX
Slide 28: Innovation Leader
28 Innovation Leader 1956 1970 1984 1996 1997 1999 2005 Simpson is a pioneer of construction solutions and the industry standard for structural connectors. 1994 NYSE LISTING (SSD) OUR FOUNDER BARC SIMPSON EXPANSION INTO CONCRETE EXPANSION INTO FASTENERS FIRST CONNECTOR CONNECTOR MARKET LEADER EXPANS
Slide 29: Innovation Leader (Continued)
29 Innovation Leader (Continued) Simpson is an innovation leader in fasteners, concrete repair, lateral systems, construction software and structural steel solutions. 2011 2016 20192012 2017 FURTHER EXPANSION INTO COLD-FORMED STEEL EXPANSION INTO CARBON FIBER SOLUTIONS EXPANSION INTO BUILDER & LBM S
Slide 30: Innovation Leader (Continued)
30 Innovation Leader (Continued) ~300 Engineers ~1,700 Trademarks Worldwide 8 Accredited Test Labs ~500 Patents Worldwide ~200 Patents Pending ~120 Code Reports A dedication to innovation through extensive research and development, academic partnerships and state-of-the-art structural testing. Testi
Slide 31: Residential End Use Market
31 Residential End Use Market KEY PRODUCT LINES KEY MARKET FOCUS AREAS STRATEGY • Single family construction • Multifamily construction • Outdoor living (e.g. decks, pergolas, fences) • Repair, remodel and retrofit applications • National home builder relationships • Lumber and building materials (L
Slide 32: Commercial End Use Market
32 Commercial End Use Market KEY MARKET FOCUS AREAS STRATEGY •Retail and office buildings • Institutional (education, healthcare) • Public and utilities (water supply, pipelines, ports) • Transportation (bridges, tunnels, airports) •Manufacturing (factories, warehouses, data centers) • Structural st
Slide 33: OEM End Use Market
33 OEM End Use Market KEY MARKET FOCUS AREAS STRATEGY • Aligned with our business model; identify opportunity for existing connectors, fasteners, anchors and truss plates products into this market • Engineer and launch value-added OEM-specific structural solutions • Leverage our engineering testing
Slide 34: National Retail End Use Market
34 National Retail End Use Market KEY MARKET FOCUS AREAS STRATEGY • Improve retail execution through merchandising, product development, and marketing • Continue expanding availability of all product lines, and increase in-store training • Enable consumers to customize, design and create bill-of-mat
Slide 35: Component Manufacturer End Use Market
35 Component Manufacturer End Use Market KEY MARKET FOCUS AREAS STRATEGY •Component manufactures who build roof and floor trusses, offer EWP solutions and/or wall panel solutions • Equipment solutions • Large LBMs •Offsite construction – i.e., fully integrated builders Wall Panels 35 Roof Truss Floo
Slide 36: Digital Solutions
36 Digital Solutions Building out our digital offerings to serve customers across the building industry ~30 specification tools (apps/selectors) Design/visualization, estimating Option management, estimating Project management and design Free design software and plans
Slide 37: Strong Foundation. Stronger Future.
STRONG FOUNDATION. STRONGER FUTURE.
Simpson Manufacturing — Investor Presentation (March 2025) on 6ix