JELD WEN : Investor Presentation December 2020

INVESTOR PRESENTATION

December 2020

DISCLOSURES

Forward-Looking Statements

This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements by our CEO and CFO and statements regarding our business strategies and ability to execute on our plans, market potential, future financial performance, customer demand, the potential of our categories, brands and innovations, the impact of our footprint rationalization and modernization program, our pipeline of productivity projects, the estimated impact of tax reform on our results, litigation outcomes, our outlook for future periods, and our expectations, beliefs, plans, objectives, prospects, assumptions, or other future events. Forward-looking statements are generally identified by our use of forward-looking terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "might", "plan", "potential", "predict", "seek", or "should", or the negative thereof or other variations thereon or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans, expectations, assumptions, estimates, and projections of our management. Although we believe that these statements are based on reasonable expectations, assumptions, estimates and projections, they are only predictions and involve known and unknown risks, many of which are beyond our control that could cause actual outcomes and results to be materially different from those indicated in such statements.

Risks and uncertainties that could cause actual results to differ materially from such statements include risks associated with the impact of the COVID-19 pandemic on the company and our employees, customers and suppliers, and other factors, including the factors discussed in our Annual Reports on Form 10-K and our other filings filed with the Securities and Exchange Commission.

The forward-looking statements included in this presentation are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this presentation.

Non-GAAP Financial Measures

This presentation presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the end of this presentation. The company provides certain guidance solely on a non-GAAP basis because the company cannot predict certain elements that are included in certain reported GAAP results, including the variables and individual adjustments necessary for a reconciliation to GAAP. While management is not able to specifically quantify the reconciliation items for forward-lookingnon-GAAP measures without unreasonable effort, the company expects these items to be similar to the types of charges and costs excluded from Adjusted EBITDA in prior periods. Management bases the estimated ranges of non-GAAP measures for future periods on its reasonable estimates of such factors as assumed effective tax rate, assumed interest expense, stock-based compensation expense, litigation expense, and other assumptions about capital requirements for future periods. The variability of these items may have a significant impact on our future GAAP financial results.

We use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, and Adjusted EPS because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA and Adjusted EBITDA margin are helpful in highlighting trends because they exclude the results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. We use Adjusted EBITDA and Adjusted EBITDA margin to measure our financial performance and also to report our results to our board of directors. Further, our executive incentive compensation is based in part on Adjusted EBITDA. In addition, we use Adjusted EBITDA for purposes of calculating compliance with our debt covenants in certain of our debt facilities. Adjusted EBITDA should not be considered as an alternative to net income as a measure of financial performance or to cash flows from operations as a liquidity measure. We define Adjusted EBITDA as net income (loss), adjusted for the following items: loss from discontinued operations, net of tax; equity of non-consolidated entities; income tax (benefit) expense; depreciation and amortization; interest expense, net; impairment and restructuring charges; gain on previously held shares of equity investment; (gain) loss on sale of property and equipment; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; other non-cash items; and costs related to debt restructuring and debt refinancing. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net revenues.

We present several financial metrics in "core" terms, which exclude the impact of foreign exchange and acquisitions completed in the last twelve months. We use core Adjusted EBITDA, which we define as Adjusted EBITDA excluding the impact of foreign exchange and acquisitions completed in the last twelve months. We define core revenue as revenue excluding the impact of foreign exchange and acquisitions completed in the last twelve months. Our use of core margin is defined as core Adjusted EBITDA divided by core revenue. These "core" metrics assist management, investors, and analysts in understanding the organic performance of the operations. We present free cash flow because we believe it assists investors and analysts in determining the quality of our earnings. We also use free cash flow to measure our financial performance and to report to our board of directors. In addition, our executive incentive compensation is based in part on free cash flow. We define free cash flow as cash flow from operations less capital expenditures (including purchases of intangible assets). Free cash flow should not be considered as an alternative to cash flows from operations as a liquidity measure.

Adjusted net income represents net income adjusted for certain items as presented in our reconciliation of non-GAAP, including the after-tax impact of i) non-cash foreign currency (gains) losses, ii) impairment and restructuring charges, iii) one-time,non-cash gains, and iv) other non-recurring expenses associated with certain matters such as mergers and acquisitions, and litigation. Adjusted EPS represents net income per diluted share adjusted to exclude the estimated per share impact of the same specifically identified items used to calculate adjusted net income as described above. Where applicable such items are tax-effected at our estimated annual effective tax rate.

Other companies may compute these measures differently. Non-GAAP metrics should not be considered as alternatives to any other measures derived in accordance with GAAP.

Due to rounding, numbers presented throughout this presentation may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS

Build	Leverage	Accelerate
on solid	best-in-class	operating
progress	platform	improvements

3 |

PROFILE OF A GLOBAL LEADER

#1

Global leader in windows & doors

Operating in

20 countries

4 |

$4.3B	14	+450bps
2019 net revenues	Bolt-on acquisitions	Visibility to margin
	completed since	improvement from

2015	cost actions

Cash from operations	Adjusted EBITDA	N. America percent of
margin improvement	sales in stable
2014-2019	2013-2019	R&R segment
$1.2B	530bps	~50%

ENTERING NEW PHASE

TO ACCELERATE TRANSFORMATION

1960

Built global leader

2014-2018Today

InitiatedAccelerate

transformation transformation

• Industry consolidator, having completed over 50 acquisitions
• Decentralized, family run until 2011

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• Significant margin improvement driven by price actions and cost reduction

• New CEO & CFO in 2018
• Laser focus on operating improvements to drive core revenue growth and productivity

MOST DIVERSIFIED WINDOWS AND DOORS PURE PLAY

Breakdown of Revenues ~$4.3B

Ancillary

Products

• Shower enclosures
• Moldings, trim board
• Closet systems

Ancillary

13%

Residential Windows

Windows 20%

• Wood
• Vinyl
• Aluminum
• Mid-risemulti-family

6 |

Commercial

Doors

• Wood, Steel, MDF
• Fire rated

Residential

Interior Doors

• Molded and flush

• Wood veneer and glass

• Stile & rail doors

• Value added services

Doors

67%

Residential

Exterior Doors

• Wood veneer, Fiberglass, and Steel
• Patio doors
• Folding and sliding

wall systems

• Value added services

SIGNIFICANT PROGRESS SINCE LAUNCH

OF TRANSFORMATION

Net Revenue		Adj. EBITDA
($B)		($M)
		18%
4%		CAGR
$4.3	$415
CAGR

$3.5

$153

2013	2014	2015	2016	2017	2018	2019	2013	2014	2015	2016	2017	2018	2019

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PROGRESS IN BUILDING POWERFUL

CASH FLOW ENGINE

Free Cash Flow

($M)

		$203
		$167
$95	$122	$101

($49)

($135)

2013

2014

2015

2016

2017

2018

2019

TARGET FREE CASH FLOW ≥ NET INCOME

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EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS

Build	Leverage	Accelerate
on solid	best-in-class	operating
progress	platform	improvements

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LEVERAGE BEST-IN-CLASS PLATFORM

1. Global market leader	2. Broad portfolio of trusted
	brands

	Excellent platform
	for margin expansion
5. Proven M&A	and cash flow
generation	3. Unparalleled
capabilities
		breadth

4. Differentiated capabilities provide competitive advantages

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1. GLOBAL MARKET LEADER

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Leading Position in Most Markets

#1

#1		#1
#5
North America	Europe
			#1
Market Position - Resi. Doors			#1
Market Position - Non-Resi. Doors			Australasia
Market Position - Resi. Windows
Revenue			Adj. EBITDA
Australasia		Australasia
13%		16%
	North America		North America
Europe	59%	Europe	58%
28%		26%

*Market positions based on public information and management estimates | *Revenue and Adj EBITDA segment breakdowns based on 2019 actuals

2. PORTFOLIO OF TRUSTED BRANDS

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3. UNPARALLELED BREADTH

Products

Ancillary	• Broadest product range of doors and windows
13%

		Doors	• Doors - Interior Molded, Stile and Rail, Exterior Steel,
		Exterior Fiberglass, Wall Systems
Windows	67%
	• Windows - Wood, Vinyl, Aluminum, Composite,
20%
			Louvered, Sashless
			Markets(1)
	Non-Res.	Res. New	• Balanced exposure globally between Residential New
11%
Construction
		Construction and Repair & Remodel
		47%
Repair &		• Strong position in non-residential, specialty doors for
	the European market
Remodel
42%
			Channels
	Direct	Distribution	• Long-term relationships with premier channel partners
19%
50%

Retail

13 | 31%

(1) Pct. of net revenues by construction application is management's estimate based on the end markets into which our customers sell.

4. DIFFERENTIATED CAPABILITIES PROVIDE COMPETITIVE ADVANTAGES

Vertically integrated in capital intensive key processes:

• Interior molded door skins
• Australia glass processing
• Wood processing and components

Low cost manufacturing assets provide leading cost position:

• Indonesia
• Eastern Europe

Global platform

• Diversity of revenues
• Broader opportunities for bolt-on M&A
• Product innovation shared between regions

Unmatched distribution footprint

• Supports demanding lead times
• Value-addeddistribution capabilities
• Lowers freight costs

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5. SUCCESSFUL M&A RECORD

Disciplined

Criteria

Enhance product portfolio

• Fill gaps in product lines
• Acquire new technologies

Market consolidation

• Improve market positions
• Solidify fragmented markets

Enter new markets/geographies

• Complementary geographies
• Create value-added services

Track Record of M&A Delivering Strategic and Financial Targets

Acquisitions since company			> 50
founding
Acquisitions since 2014		14
IRR target			20%+
Avg. ROIC realized			> WACC
Integration playbook			Proven

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EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS

Build	Leverage	Accelerate
on solid	best-in-class	operating
progress	platform	improvements

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THE NEW JELD-WEN WE ARE BUILDING

	Past		Future
			Accelerate
Organic Growth	Below Market
Margin Improvement	Pricing & SG&A		Productivity & Footprint
Innovation	Moderate		High
Cost Productivity			High ~3% Net*
Low - 1% Net*
			Common Vision
Values and Culture	Lack of Integration
Acquisitions	Strategic Bolt-ons		Bolt-on + Adjacencies

*Percent reduction of prior year cost of goods sold, net of inflation

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JELD-WEN'S STRATEGIC GROWTH DRIVERS

1	Accelerate		2 Expand Margins		3	Disciplined Capital
Top Line Growth			Allocation

%

Invest for Growth

Culture and Tools

Shareholder Value

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1 . A C C E L E R A T I N G T O P L I N E G R O W T H

GLOBAL INNOVATION CAPABILITIES

Expanding into

New Market Segments

• Repair and Remodel expansion, largest global opportunity
• Expand product solutions and channel partnerships
• Multi-familyand commercial applications

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Global Product

Development &

Technology

• Integrate global product development planning
• Regional design centers and forums
• Product design with end customer in mind

Establishing

Commercial Excellence

• Integrated commercial value stream end-to-end
• Investment in global CRM
• Leverage bundling opportunities across all products

2 . E X P A N D M A R G I N S

15% ADJ. EBITDA MARGIN TARGET

Footprint

Rationalization &

Modernization

9.7%

• $100M+ savings opportunity

• Target ~15% reduction in global square footage

2019 Adj EBITDA Margin

Manufacturing
Productivity	15%+
Through JEM

• $100M+ savings opportunity
• Represents a ~3% reduction in COGS
• Savings from:
• • labor efficiency
  • automation
  • sourcing
  • improved quality
  • reduction in warranty and scrap
  • VA / VE savings
  • freight optimization

Adj EBITDA Margin Target

CLEAR PATH TO 15% ADJUSTED EBITDA MARGIN

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2 . E X P A N D M A R G I N S

FOOTPRINT MODERNIZATION AND RATIONALIZATION

OBJECTIVES

• Leverage acquired assets and JEM tools to reduce global facility footprint and increase efficiency
• • Reduce complexity
  • Increase capacity
  • Improve service and customer satisfaction
  • Reduce costs
  • Improve profitability

STATUS UPDATE

• Additional footprint rationalization and modernization projects have been approved; includes multi-site rooftop consolidation
• Good visibility to delivering ~$100M run-rate annual savings

RATIONALIZATION PLAN

(square feet in millions)

CONTINUED MOMENTUM IN FOOTPRINT RATIONALIZATION PLAN

21 |	" C o r e	r e v e n u e " a n d " c o r e a d j u s t e d E B I T D A " e x c l u d e t h e i m p a c t o f F X a n d a c q u i s i t i o n s c o m p l e t e d i n t h e l a s t 1 2 m o n t h s .
" C o r e	m a r g i n " i s d e f i n e d a s c o r e a d j u s t e d E B I T D A d i v i d e d b y c o r e r e v e n u e .

2 . E X P A N D M A R G I N S

JELD-WEN EXCELLENCE MODEL

• Problem solving (A3)	• Safety
• Standard work	• Service and quality
• Visual management	• Cost savings
• Value streams	• Productivity
• Goal deployment	• Engagement

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• Doubled JEM tool deployment locations
• 90%+ facilities improved service
• 58% increase in productivity project pipeline

3 . C A P I T A L A L L O C A T I O N

PRIORITIES FOR FREE CASH FLOW DEPLOYMENT

1

Accretive

Acquisitions

• Disciplined approach
• Target IRR > 20%
• Maintaining active pipeline of acquisition targets

2

De-Lever Balance Sheet

• Current net debt to EBITDA ~2.8x
• Targeting < 2.5x in near-term

3

Share

Repurchase

• $170M remaining on $175M authorization renewed on November 6, 2019
• No expiration

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I N S U M M A R Y :

EXECUTING STRATEGY TO ACCELERATE OPERATING IMPROVEMENTS

Build	Leverage	Accelerate
on solid	best-in-class	operating
progress	platform	improvements

24 |

NON-GAAP RECONCILIATION

ADJUSTED EBITDA AND FREE CASH FLOW (USD IN MILLIONS)

								Year Ended December 31,
		2013			2014			2015			2016			2017			2018			2019
Net Income (loss)	$	(68.4)	$	(84.1)		$	90.9	$	376.1	$	8.1	$	141.9	$	63.0
Adjustments:
Loss (income) from discontinued operations, net of tax		5.9			5.4			2.9			3.3			-			-			-
Gain (loss) on sale of discontinued operations, net of tax		(10.7)			-			-			-			-			-			-
Equity (earnings) loss of non-consolidated entities		(0.9)			0.4			(2.4)			(3.8)			(3.6)			(0.7)			-
Income tax expense (benefit)		1.1			18.9			(5.4)			(246.8)			137.8			(10.1)			57.1
Depreciation and amortization		104.7			100.0			95.2			108.0			111.3			125.1			134.0
Interest expense, net		71.4			69.3			60.6			77.6			79.0			70.8			71.8
Impairment and restructuring charges		44.4			38.6			31.0			18.4			13.1			17.3			22.7
Gain on previously held shares of equity investment		-			-			-			-			-			(20.8)			-
Loss (gain) on sale of property and equipment		(3.0)			(0.0)			(0.4)			(3.3)			(0.3)			0.1			2.0
Share-based compensation expense		5.7			8.0			15.6			22.5			19.8			15.1			13.3
Non-cash foreign exchange transaction/translation (income) loss		(4.1)			(0.5)			2.7			5.7			(1.2)			(1.3)			3.4
Other non-cash items		(0.1)			2.3			1.1			2.8			0.5			3.9			0.3
Other items (1)		7.3			20.3			18.9			30.6			47.0			117.5			47.5
Costs relating to debt restructuring and debt financing		0.1			51.2			0.2			1.1			23.7			0.3			-
Adjusted EBITDA(1)	$	153.2	$	229.8		$	311.0	$	392.2	$	435.2	$	459.2	$	415.0
(1) Prior periods 2016 to 2018 revised on 08/07/19. For additional information, please refer to our Form 10-Q for the quarter period ended June 29, 2019
								Year Ended December 31,
		2013			2014			2015			2016			2017			2018			2019
Net cash used in operating activities		($49.4)			$21.8			$172.3			$201.6			$265.8			$219.7			$302.7
Less Capital Expenditures(1)		($85.7)			($70.8)			($77.7)			($79.5)			($63.0)			($118.7)			($136.2)
Free Cash Flow		($135.1)			($49.1)			$94.7			$122.1			$202.7			$101.0			$166.5

(1) Capital Expenditures defined as purchases of property, equipment and intangible assets

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