Slide 1: Q4 & FY 2023 Earnings Presentation
Q4 & FY 2023 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO FEBRUARY 22, 2024 Footnote
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 forecasted financial performance or other statements about anticipations
Slide 3: Clear Strategic Pillars Driving Long-Term Profitable Growth
Clear Strategic Pillars Driving Long-Ter m Profitable Growth Organic Growth with a Drive Continue to Disciplined Focus on Operational Build Our High- Capital Value-Added Excellence & Performing Allocation Products and Invest in Digital Culture Services and Innovation Continuing to Compound Value Cre
Slide 4: Resilient FY 2023 Performance
Resilient FY 2023 Perfor mance $17.1B $6.0B $2.9B $14.59 Net Sales Gross Profit Adjusted EBITDA1 Adjusted EPS1 24.8% Decrease2 22.4% Decrease2 33.8% Decrease2 22.0% Decrease2 Gross Margin of Adj. EBITDA1 35.2% Margin of 17.0% Generated $1.9B in Free Cash Flow During 2023 1) Adjusted EBITDA, Adjusted
Slide 5: Significant Achievements in 2023
Significant Achievements in 2023 ▪ Single-Family decreased 24.1% amid a weak housing market ▪ Multi-Family increased 20.3% as we continue to work through the record backlog, while Repair & Remodel/Other increased 0.7% ▪ Value-added product mix was 53% for FY 2023 driven by organic growth and a disci
Slide 6: Improving Value-Added Mix Through Proven M&A Process
Improving Value-Added Mix Through Proven M&A Process Net Sales Acquisition Date Benefits Q4 2023 ▪ Establishes presence in Northwest Arkansas Growth in Value- 700 bps Added Product Mix Q4 2023 ▪ Establishes presence in Grand Rapids ▪ Expands presence in Florida Panhandle with custom Q3 2023 builder
Slide 7: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Successfully Deployed ~$2.5B Successfully Deployed ~$2.5B in 2023 ~$6.1B From 2022 to 2023 $0.4B $0.3B $1.8B deployed to repurchase $4.4B deployed to repurchase common shares common shares $0.3B deployed on 7 $0.9B deployed on 13 acquisitions to expand our $1
Slide 8: Creating a Better Way to Build
Creating a Better Way to Build as Demand for Moder n, Digital Solutions Continues to Grow Addressing industry …with industry-leading …to become the premier partner pain points… digital solutions… for builders and suppliers ▪ Lengthy design cycle remains Streamlined design in a Increase Wallet Shar
Slide 9: Full Launch of Our Digital Offering
Full Launch of Our Digital Offering ▪ myBLDR.com is the access point for delivering our Digital Tools in a collaborative customer experience ▪ Introducing the industry’s first integrated Digital platform for homebuilders ✓ Plan intake and mark-up ✓ Ability to make structural and finish selections ✓
Slide 10: Q4 2023 Financial Update
Q4 2023 Financial Update Core Organic Sales Highlights Net Sales ($M) Bridge (Q4 2022 vs. Q4 2023) ▪ Single-Family: -3.5% due to a shrinking housing market $11 ▪ Multi-Family: +4.3% driven by recent acquisitions and ($218) -1.3% Core Organic favorable margins +1.6% Acquisitions -5.0% Deflation $4,35
Slide 11: Broad Resilience Across Value-Added Portfolio
Broad Resilience Across Value-Added Por tfolio Q4 2023 Net Sales Mix by Product Category Q4 2023 Core Organic Sales1 Highlights Q4 2023 Value-Added Product Mix: ~52% ▪ Value-Added Core Organic Sales1 decreased 3.4% due to affordability challenges 23% 27% • Manufactured Products increased 0.3% $4.2B
Slide 12: Strong Balance Sheet and Ample Liquidity
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Consistent Capital Allocation Priorities Low Net Leverage Profile 1 Maintain a Strong Balance Sheet 4.2x ▪ Target Base Business leverage ratio of 1.0x to 2.0x 3.1x 2 Organic Growth 2.5x 1.4x ▪ Drive productivity and growth with g
Slide 13: 2024 Outlook
2024 Outlook 2024 Full Year Outlook Metrics Current Guidance 2023 Actual Base Business Sales1 $17.6 billion $16.5 billion Base Business Adjusted EBITDA1 $2.4 billion $2.3 billion Base Business Adjusted EBITDA Margin1 13.5% 14.0% Total Net Sales2,3 $17.5 to $18.5 billion $17.1 billion Gross Profit Ma
Slide 14: 2024 Full Year Assumptions
2024 Full Year Assumptions 2024 Full Year Assumptions Metrics Current Assumptions Single-Family Starts Growth (BLDR geographies) Up Mid-Single Digits Multi-Family Starts Growth (BLDR geographies) Down 20% to 30% Repair & Remodel Growth (BLDR geographies) Up Low Single Digits Selling Days Two Additio
Slide 15: Overview of Base Business Framework
Over view of Base Business Framework ~67% of BFS’s Base Business1 Underlying Base Business Assumptions is Non-Commodity Windows, Doors & Millwork Lumber & Lumber Sheet Goods ▪ Assumes $400/mbf lumber and lumber sheet goods Manufactured Products Specialized Products & Other pricing (in line with 25-y
Slide 16: Base Business Performance Aligned with Long-Term Plan
Base Business 1 Perfor mance Aligned with Long Ter m Plan Sales ($B) Adjusted EBITDA2 ($B) $22.7 $4.4 $19.9 $5.0 $17.1 $18.0 7.1% 16.9% $4.2 $3.1 $2.1 $2.9 $12.8 $0.6 $0.4 $2.6 $1.3 $0.6 $0.2 $0.3 $15.7 $17.7 $16.5 $17.6 $12.5 $1.1 $2.3 $2.3 $2.4 $1.8 $1.1 2020PF 2021 2022 2023 2024E 2020PF 2021 202
Slide 17: Strong Operating Model Creates Value for Our Customers and Shareholders
Strong Operating Model Creates Value for Our Customers and Shareholders 1 Creating opportunity by 3 Leveraging robust FCF addressing builder problems generation from resilient and delivering value-added business model and broad products and solutions across product portfolio to fuel cycles; strong t
Slide 18: Appendix
Appendix Footnote © 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 .
Slide 19: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 19 19
Slide 20: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 20 20
Slide 21: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 21 21
Slide 22: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 22 22
Slide 23: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 23 23
Slide 24: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 24 24
Slide 25: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © 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 . 25 25