STRONG FOUNDATION. STRONGER FUTURE.
Simpson Manufacturing Co., Inc.
Investor Presentation
March 2024
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 generally can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "outlook," "target," "continue," "predict," "project," "change," "result," "future," "will," "could," "can," "may," "likely," "potentially," or similar expressions. Forward-looking statements are all statements other than those of historical fact and include, but are not limited to, statements about future financial and operating results, our plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales and market growth, comparable sales, earnings and performance, stockholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, our ongoing integration of ETANCO, our strategic initiatives, including the impact of these initiatives on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing.
Forward-looking statements are subject to inherent uncertainties, risks and other factors that are difficult to predict and could cause our actual results to vary in material respects from what we have expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those expressed in or implied by our forward-looking statements include the effect of global pandemics such as the COVID-19 pandemic and other widespread public health crisis and their effects on the global economy, the effects of inflation and labor and supply shortages, on our operations, the operations of our customers, suppliers and business partners, and our ongoing integration of ETANCO, as well as those discussed in the "Risk Factors" and " Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports we file with the SEC.
We caution that you should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are urged to carefully review and consider the various disclosures made in our reports filed with the SEC that advise of the risks and factors that may affect our business, results of operations and financial condition.
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Investment Highlights
Industry leader with strong business model, accelerating above market top-line 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 connections with significant opportunities in all addressable markets
Industry-leading gross profit and operating margins
Strong balance sheet enables financial flexibility
~36% of free cash flow returned to stockholders since 2021(2)
(1) | Above market top-line growth relative to U.S. housing starts. | 3 |
(2) | Time frame represents January 1, 2021 to December 31, 2023. | |
30-Year Trading History
5/25/1994
Initial public offering at $11.50 (or $2.875 adjusted for two stock splits in August 2002 & November 2004)
10/30/2017
Announced 2020 Plan to improve operational performance and enhance stockholder value
7/29/2019
Updated certain 2020 Plan targets
3/24/2020
COVID-19 pandemic declared
3/23/2021
Announced 5 Year Company Ambitions
- Key Growth Initiatives
12/29/2021
Announced binding offer to acquire ETANCO; closed acquisition of ETANCO on 4/1/2022
3/1/2024:
SSD closes at all- time high of $209.30
$210.00
$180.00
$150.00
$120.00
$90.00
$60.00
$30.00
$0.00
Compound annual growth rate of ~15% as of March 1, 2024 since the 1994 IPO
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Simpson's Brand and Culture
At Simpson, we describe the unique culture of our organization as our "Secret Sauce."
OUR MISSION
To provide solutions that help people design and build safer, stronger structures.
OUR COMPANY VALUES
- Relentless Customer Focus
- Long-RangeView
- High-QualityProducts
- Be The Leader
- Everybody Matters
- Enable Growth
- Risk-TakingInnovation
- Give Back
- Be Humble, Have Fun
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Our Strong Business Model
Innovation leader A dedication to innovation, extensive engineering, and research and testing in our state-of-the-artlabs.
Longstanding relationships
Our long-standing reputation, relationships and engagement with builders and distributors, engineers, building officials, and contractors to design safer, stronger structures and improve construction practices.
Comprehensive service
Best-in-class field support, technical expertise, digital tools, and training to make it easy to select, specify, install and purchase our products.
Why
Simpson?
Our
Customer-Centric
Approach
Broad portfolio of structural solutions
An increasingly broad portfolio of products and software, and a commitment to developing complete solutions for the markets we serve.
Unparalleled availability & delivery
Industry-leading product availability and delivery standards on our vast product offering across multiple distribution channels, with typical delivery within 24-48 hours.
Impactful industry outreach
A strong commitment to trades education and partnering with organizations that provide training and career opportunities to attract more people to the industry and alleviate labor shortages.
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Innovation Leader
Simpson is a pioneer of construction solutions and the industry standard for structural connectors.
EXPANSION INTO | |||
FIRST | OPENED | STEEL SHEAR WALLS | EXPANSION INTO |
HOLDOWN | TYE GILB TEST LAB | STAINLESS STEEL | |
FASTENERS |
FIRST CONNECTOR
EXPANSION INTO
FASTENERS
NYSE | |||||||||||||||
CONNECTOR | LISTING | ||||||||||||||
MARKET LEADER | (SSD) | ||||||||||||||
1970 | 1996 | 1999 | |||||||||||||
2005 | |||||||||||||||
1956 | 1984 | 1994 | 1997 | 2001 | 2008 | ||||||||||
EXPANSION INTO | |||
OUR FOUNDER | EXPANSION INTO | EXPANSION INTO | FASTENING SYSTEMS |
BARC SIMPSON | CONCRETE | WOOD SHEAR WALLS | 7 |
Innovation Leader (Continued)
Simpson is an innovation leader in fasteners, concrete repair, lateral systems, construction software and structural steel solutions.
FURTHER | EXPANSION INTO | EXPANSION INTO BUILDER |
EXPANSION INTO | TRUSS SOFTWARE | & LBM SOFTWARE |
COLD-FORMED | ||
STEEL |
2016 | ||||||||||||
2012 | 2013 | 2019 | 2021 | |||||||||
2017 | ||||||||||||
2011 | ||||||||||||
EXPANSION INTO
EUROPEAN
COMMERCIAL
BUILDING MARKET
2023
2022
EXPANSION INTO | EXPANSION INTO | |||
ENGINEERED | ||||
STRUCTURAL STEEL | FURTHER | |||
WOOD PRODUCTS | ||||
EXPANSION INTO | EXPANSION INTO | FURTHER EXPANSION | EXPANSION INTO | |
CARBON FIBER SOLUTIONS | SOFTWARE | OUTDOOR DECORATIVE | INTO WOOD SHEAR | MASS TIMBER |
HARDWARE | WALLS | |||
8 |
Innovation Leader (Continued)
We are dedicated to research, testing, engineering and innovation through our state-of-the-art test labs.
Innovation by the numbersTesting is in our DNA
484 | 7 | 92 | ||
Engineers | Accredited | Code | ||
Test Labs | Reports | |||
499 202 1,653
Patents | Patents | Trademarks |
Worldwide | Pending | Worldwide |
Large scale structural testing and individual solution testing provides us with a better understanding of how structures perform, advances our design technology and improves building safety.
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Broad Portfolio of Solutions
Broad and deep product offering with 18,000 standard and custom products for wood, concrete and steel, and digital solutions to make it easier to specify and order our products.
Wood Connection Products | Fastening Systems | Concrete Connection Products | ||
Wood connectors, shearwalls, connectors for cold-formed steel and structural steel
Fasteners for connectors, structural screws, decking screws, and productivity solutions
Mechanical and adhesive anchors, injection epoxies, carbon fiber strengthening products
Integrated Component Systems | Digital Solutions | |
Truss plates, engineered wood product connectors, truss and EWP design software
Note: Excluding ETANCO building envelope products only sold in Europe.
50+ software and web applications for design, specification and estimating
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Disclaimer
Simpson Manufacturing Co. Inc. published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 15:59:07 UTC.