Gibraltar Industries : 2nd Quarter 2022 Presentation Slides

SECOND QUARTER 2022 EARNINGS CALL

August 3, 2022

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SAFE HARBOR STATEMENTS

Forward-Looking Statements

Certain information set forth in this presentation, other than historical statements, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company's business, and management's beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, availability of labor at our manufacturing and distribution facilities or on our project sites, the impacts of COVID-19 on our customers, suppliers, employees, operations, business, liquidity and cash flows, the loss of any key customers, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, disruptions to our IT systems, the impact of regulation (including the Department of Commerce's solar panel anti-circumvention investigation), rebates, credits and incentives and variations in government spending and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled "Risk Factors" in our most recent annual report on Form 10-K and Quarterly Report on Form 10-Q which can be accessed under the "SEC Filings" link of the "Investor Info" page of our website at www.Gibraltar1.com. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.

Adjusted Financial Measures

To supplement Gibraltar's consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this presentation, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA). Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held- for-sale. Adjusted net income, operating income and margin excludes special charges consisting of restructuring costs primarily associated with 80/20 simplification or lean initiatives, senior leadership transition costs, and acquisition-related costs and the operating losses generated by our Processing business that has been classified as held-for- sale. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors that are indicative of the Company's core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA is also a useful measure of the Company's ability to service debt and is one of the measures used for determining the Company's debt covenant compliance. Special charges are excluded since they may not be considered directly related to the Company's ongoing business operations. Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany the earnings news release. These adjusted measures should not be viewed as a substitute for the Company's GAAP results and may be different than adjusted measures used by other companies and our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2022 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.

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SECOND QUARTER 2022 RESULTS

ADJUSTED $364M +7%

REVENUE

ADJUSTED

OPERATING $43M +20%

INCOME

ADJUSTED $52M +16%

EBITDA

ADJUSTED	$0.96	+19%
EPS

ORDER $408M +5%

BACKLOG

GROWTH

• Demand drivers continue as expected across businesses
• Participation gains - 2021 carryover and new in 2022

INCOME

• Renewables, Agtech and Infrastructure margins improved sequentially; continued expansion in Residential margin
• Continued focus on trade issues, inflation, labor, supply chain, price/cost management

FOCUS

1. Execute 80 / 20 - expand margin, drive service levels, win participation
2. Supply chain management - support service levels, minimize disruption, optimization cost position, reduce inventory
3. Accelerate operations digitization - two ERP implementations in Q2
4. Organization health, agility and flexibility operating in dynamic economy / markets
5. Conduct business the right and responsible way every day

	*Refer to appendix in the earnings news release for adjusted measures reconciliations.		3

COMMODITY PRICES REMAIN DYNAMIC BUT SUPPLY MORE CONSISTENT

AVERAGE STEEL PRICE / QUARTER (SPOT)

AVERAGE ALUMINUM PRICE / QUARTER

$U.S. / short ton $2,000

$1,750

$1,500

$1,250

$1,000

$750

$500

$1,909

Plate

Structural

$1,514

$1,329

Hot-rolled

Hot-rolled below Q2 2021 levels - forecasted down over next 12 - 18 months

$U.S. cents / lb

$250			Midwest delivery basis + delivery premium
$200	$207
$150
$100
				Aluminum currently forecast to
$50				stay elevated through 2023

$0

Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022

Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022

IHS MARKIT Report - June 2022

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SOLAR INDUSTRY PANEL SUPPLY - Q2 2022 UPDATE

Withhold Release		Uyghur Forced Labor
Order		Prevention Act
(WRO)		(UFLPA)

• Uyghur Forced Labor Prevention Act (UFLPA) signed in December 2021, enforcement began

June 2022

Ongoing

• Customers monitoring UFLPA enforcement by US Customs & Border Protection (CBP)

Department of

Commerce (DOC)

Investigation

DOC investigation of Chinese panel manufacturers using assembly operations in Cambodia, Malaysia, Thailand, and Vietnam to avoid duties

Preliminary		Final Report
Report
	Expected
Expected
	January '23
August '22

Administration Instructed DOC to Implement 2-Year Tariff Waiver

	*AD/CVD - Antidumping and Countervailing Duties		5