Transcription
JELD-WENInauguralInvestor DayMay 18, 2021
Forward-Looking StatementsThis presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements include statements regarding our business strategies and ability to execute on our plans, market potential and growth opportunities, future financialperformance, shareholder value, customer demand, the potential of our categories, brands and innovations, the impact of our footprint rationalization andmodernization program, our pipeline of productivity projects, our targets and 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 thereonor comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief isbased on the current plans, expectations, assumptions, estimates, and projections of our management. Although we believe that these statements are based onreasonable expectations, assumptions, estimates and projections, they are only predictions and involve known and unknown risks, many of which are beyond ourcontrol that could cause actual outcomes and results to be materially different from those indicated in such statements. Risks and uncertainties that could causeactual 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 andExchange Commission. The forward-looking statements included in this presentation are made as of the date hereof, and except as required by law, we undertakeno obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of thispresentation.Non-GAAP DisclosureThis presentation presents certain “non-GAAP” financial measures. The components of these non-GAAP measures are computed by using amounts that aredetermined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of non-GAAP financial measuresused in this presentation to their nearest comparable GAAP financial measures is included at the end of this presentation.2 2021 JELD-WEN Investor Day
A Compelling Investment OpportunityGary S. Michel President and CEOVideo: JELD-WEN Excellence Model (JEM)A Sustainable Competitive Advantage - JEMGregg Miner SVP Global JEMMulti-faceted Growth Opportunities in North AmericaDaniel Castillo EVP and President, North AmericaVideo: Improving Cycle Time and Productivity Through JEMQ&A SessionJELD-WEN Accelerated Growth (JAG)Shawn Laskoski SVP Corporate Strategy and Business DevelopmentMulti-faceted Growth Opportunities in EuropeDavid Guernsey EVP and President, EuropeOur ESG AmbitionRoya Behnia EVP, General Counsel and CCODelivering Exceptional Shareholder ReturnsJohn Linker EVP and CFOVideo: Accelerating Growth Through JEMQ&A Session3 2021 JELD-WEN Investor Day
A CompellingInvestmentOpportunityGary S. MichelPresident and CEO4 2021 JELD-WEN Investor Day
A Compelling Investment GYand BUSINESSOPERATINGSYSTEM ç5 2021 JELD-WEN Investor DayWORLD-CLASSFRANCHISEwith BREADTHand SCALE
Strategic Growth Drivers Delivering ResultsWorld-Class Financial Performance and Shareholder ReturnsAccelerateOrganic GrowthOperationalExcellence andMargin ExpansionCash Flowand DisciplinedCapital AllocationPremier PerformingCultureMARKET LEADER STRONG BRANDS UNRIVALED PRODUCT BREADTH GLOBAL OPERATING PLATFORMJ E L D - W E N E XC E L L E N C E M O D E L6 6 2021 JELD-WEN Investor Day
Values-DrivenCulture Based onOur Deep Roots As one global team, we:BUILD businesses ethically and safelyINVEST in peopleINSPIRE customers through innovationDELIVER on our promisesIMPROVE every day and the foundation of our future.7 2021 JELD-WEN Investor Day
Strong Brands with Broad Product OfferingPORTFOLIO OF TRUSTED BRANDSBREADTH OF PRODUCT OFFERINGDoors65%2020Revenue 4.2BWindows20%Ancillary15%RESIDENTIALINTERIOR DOORSANCILLARYPRODUCTS Shower enclosures Closet systems Molding and trim boardsMolded and flushWood veneer and glassStile and rail doorsValue added servicesCOMMERCIALDOORSRESIDENTIALWINDOWS Wood Vinyl AluminumWoodSteelMDFFire ratedRESIDENTIALEXTERIOR DOORS 8 2021 JELD-WEN Investor DayWood veneer, Fiberglass, and Steel Patio doors Folding and sliding wall systems Value added services
Profile of a Global Leader#1Global leader in windows and doors operating inNorth America, Europe and Australasia80 bps60%2020 Adj. EBITDAMargin ExpansionRevenue from NorthAmerica Segment4.6%7.5%50%2015 - 2020Revenue CAGR2015 - 2020 Adj.EBITDA CAGRRevenue from Stable Repairand Renovation Market 4.2B2020 Net Revenue9 2021 JELD-WEN Investor Day
Aspiring to be a“Great Company”CUSTOMERS want to BUY fromWhere PEOPLE want to WORKSHAREHOLDERS want to INVEST inDoing the RIGHT THING for PEOPLE,our COMMUNITIES, and the WORLD10 2021 JELD-WEN Investor Day
Experienced Leadership Team Delivering ResultsG AR Y M I C H E LPresident and ChiefExecutive OfficerJOHN LINKERExecutive Vice President andChief Financial OfficerProven Experience andThought Leaders in:StrategyD AV I D G U E R N S E YExecutive Vice Presidentand President, EuropeM AR K D I X O NSenior Vice President,Global ProcurementGrowthROYA BEHNIAExecutive Vice President,General Counsel and ChiefCompliance OfficerT I M C R AV E NExecutive Vice President,Human ResourcesD AN I E L C AS T I L L OExecutive Vice President andPresident, North AmericaOperational ExcellenceLeanDiversity, Equityand InclusionSustainabilityMergers and AcquisitionsP E T E R F AR M AK I SExecutive Vice President andPresident, Australasia11 2021 JELD-WEN Investor DayDelivering ResultsS H AW N L AS K O S K ISenior Vice President,Corporate Strategy and BusinessDevelopmentKEVIN LILLYSenior Vice President,Chief Information OfficerGREGG MINERSenior Vice President,Global JEM Leader
JEM Enables Growth and Margin ExpansionE VO LU T I O N O F L E A N C U LT U R ELEADINGStrategy andGrowth FocusLeadership andGrowth ExcellenceLIVINGSystem FocusCommercial andOperational ExcellenceDOINGTool FocusContinuous ImprovementCultureJEM Delivers Multiple Growth Levers12 2021 JELD-WEN Investor Day
Universal (“U”) Strategy for GrowthPREMIUM MATERIALS FORHIGH-PERFORMANCEEXTERIOR & INTERIORBUILDING UCTIVITYINNOVATION AND SUSTAINABILITYUniversally applied strategy – across all customer segments,all regions, all offerings, and all brands1313 2021 JELD-WEN Investor Day
Reliably Boring, Relentlessly RepeatableR E L I A B LY B O R I N G “ T H E H OW ” Say-do culture Field the best team JEM ESGR E L E N T L E S S LY R E P E ATA B L E “ T H E W H AT ” Differentiated, superior customer experience Deliver results Drive growth14 2021 JELD-WEN Investor Day
High Visibility to Achieving 2025 TargetsORGANIC REVENUECAGR 2021-20252025 ADJUSTEDEBITDA MARGINFREE CASH FLOWCONVERSION 2021 -2025CAPITAL ALLOCATION2021-2025Above market 6% to 8%15% to 17%90% to 100% 4 billionof adjusted net incomeof M&A capacity(1);share repurchaseas alternativeMulti-faceted growth platform will deliver growth, margin expansion,and compounding cash flow through disciplined capital allocation15 2021 JELD-WEN Investor Day
ESG Strategy Alignedwith Core Values Sustainable supply chain and circular economy Energy efficient product portfolios Innovation and research Diversity, equity and inclusion Health and safety Transparency and governanceBuilding on our legacy and deliveringvalue for all stakeholders16 2021 JELD-WEN Investor Day
THE JELD-WEN EXCELLENCE MODELA SustainableCompetitiveAdvantageGregg MinerSenior Vice President, Global JEM Leader17 2021 JELD-WEN Investor Day
Creating a Sustainable Competitive AdvantageJELD-WEN Excellence Model (JEM)TransformationModel BlueprintSUSTAIN ABL E COM PET IT IVE ADVANTAGELEADERSHIP AND GROWTHEXCELLENCEOPERATIONAL EXCELLENCESix Sigma/VariationReductionIntegrated BusinessPlanningGoal DeploymentTalent Dev. andAcquisitionSupply Chain/MaterialProcessesERPStrategic PlanningLean LeadershipStratDep.ACHIEVE CONTINUOUS IMPROVEMENT CULTUREChangeover Reduction(SMED)/TPMPoka Yoke/Quality AtThe SourceCommercialExcellenceInnovation ExcellenceManufacturing SystemDesignPull/Kanban/FlowSegmentation and ValuePropositionsProduct/Process Dev.and ValidationModel CellStandard Work w/Layered Process AuditRACI: AccountabilityProject/DiagonalManagementGemba Walks5s WorkplaceOrganizationTransaction ProcessImprovementChange ManagementKaizenValue Stream/Process MappingVisual Management: SQDCI and Hour X Hour BoardsJEM DPPlanMDIActDoCheckBASI C PROBL EM SOLVI NG ( I NCL UDI NG A3 )VOICE OF CUSTOMERE N V I R O N ME N TA L , H E A LT H a n d S A F E T YDoingLivingSQDCIRIELeadingAccelerate positive momentum with structured transformation model18 2021 JELD-WEN Investor DayVSA
Creating a Premier Performance CultureRESULTS -DRIVEN BEHAVIOR TO BEHAVIOR -DRIVEN RESULTSActionsHabitsDoing JEM 80 JEM resources across theglobe Hundreds of discrete kaizens Basic problem solving viaSQDCI Demonstrated productivitysavingsValuesLiving JEM End to end value stream mapping14 model plants globallyHundreds of lean training activities monthlyFour new global leaders with 100 years of collectiveexperience Real time problem solving with daily management SQDCI for systemic problem solving Accelerating productivity savingsBeliefsLeading JEM Sustained differentiatedperformance in: Cycle time Throughput capacityand growth Productivity Cash conversionJEM delivers growth, productivity savings and cash conversion1919 2021 JELD-WEN Investor Day
JEM – Focus On Value To Deliver Growth3VValueValue StreamVelocityFocus on adding value to the customer – while accelerating growth, margin and cashOrdertoShipQuotetoCashWaste Reduction Accelerates Customer Value Delivery20 2021 JELD-WEN Investor Day
JEM – Building a Model for Long-Term Success14Model Sites3AcrossRegionsProjectsFull ValueStreamAnalysisProactive and forwardlooking2xFocused on removingwaste, increasing velocityand delivering valueProductivity20%Creates a body of work toachieve future stateActions50%Lead Time ReductionDetailed Plans in the Model SitesEach site has customercentric value streams focusJust Do ionWorkshopsResultsRapid improvements in lessthan 30 days21Minimal capital investmentrequired 2021 JELD-WEN Investor Day14 Strategic Value Streams Under Transformation
Velocity Driven GrowthImproved Special Order Lead Timein North American Door Facility12345678910111213WEEKSLead Time DaysFocus onVelocityUnits/Day96% Lead TimeReduction3x HigherThroughputIncreasing capacity with minimal capital investment22 2021 JELD-WEN Investor Day
JEM Beyond the Factory FloorAccountingand Finance: Closing Process 20% reduction in touchtime (productivity) 90% reduction inweekend work (respectfor every individual)Hiring andRecruiting: Process implemented in NorthAmerica – Expanding toEurope and AustralasiaNew EmployeeTechnology: 50% reduction in approvals 33% reduction in cycle time 18% reduction in Time To FillJEM tools and behaviors permeating the entire enterprise23 2021 JELD-WEN Investor Day
Footprint Rationalization and Modernization 100M Savings Target FromFootprint RationalizationRevenue Per Square Foot 170In ProgressPlanningComplete 15920192021 (F)Footprint rationalization and modernization program driving cost savings,improved cycle time, enhanced quality, and improved productivity24 2021 JELD-WEN Investor Day
Multi-facetedGrowth Opportunitiesin North AmericaDaniel CastilloExecutive Vice President andPresident, North America25 2021 JELD-WEN Investor Day
Windows and Doors Leaderin North AmericaOverview 2.5B consolidated doors and windows provider in North AmericaStrong brand and industry leading market positions in key productsMulti-faceted growth opportunities2020 REVENUEEnd MarketChannelResidential New ConstructionDistributorsRepair and RenovationRetail/Home CenterNon-ResidentialDoorsWindowsValue-Added DistributionOtherLeading doors and windows solutions26Product 2021 JELD-WEN Investor Day
Lead Time Reduction Supports GrowthEntry DoorsVinyl WindowsLEAD TIMECompetition JELD-WENORDERSPriorCurrentLEAD TIMECompetitionJELD-WENORDERSPriorBest in class talent utilizes JEM to create a winning cultureLead time reduction fuels double digit growth ratesProductivity improves service levels and expands capacityService level improvements yield significant growth opportunity27 2021 JELD-WEN Investor DayCurrent
Increased Velocity Drives GrowthExecuting interior molded door cycle time reduction increases productionand supports increased demand to deliver revenue growth ““Appreciate our strategic businesspartners taking care of us during somuch market uncertainty!”– STRATEGIC TRADITIONALCHANNEL CUSTOMER“Best in Class service managementthrough COVID environment.” ELIMINATING waste throughadvanced problem-solving DRIVES productivity and increasedthroughput IMPROVED manufacturingefficiency by 5 seconds yields up to5% revenue growth across entire NAinterior molded door footprint– MAJOR RETAILERJEM fuels growth opportunities28 2021 JELD-WEN Investor Day
Capacity Expansion Enables GrowthSingle Family WindowsMulti-Family Windows Productivity and Capital investmentsincrease unit capacity 50% by 2023 Expanding window capacity throughautomation Geographic expansion into new markets Rebalancing capacity to high growthmarkets Expanded service footprint enables 2xshare growth by 2023 Investing in product innovationSignificant growth opportunities in all channels29 2021 JELD-WEN Investor Day
Interior Doors CompetitiveAdvantage in Value Stream INTEGRATED value stream analysis from raw material tofinished product STANDARDIZED product offering to simplify ordering andfulfillment, reducing SKU’s from the hundreds to the 20’s SOLVED key customer challenge, increasing penetrationwith key builder and channel partners STREAMLINED end to end process, eliminating waste,driving efficiencies, and improving the customer experience INCREASED throughput and aligned capacity, drivesadditional growth opportunities in interior doors and acrossproduct linesLong term and sustainable competitive advantage30 2021 JELD-WEN Investor Day
Innovation Fuels GrowthProcessInnovation31ProductInnovationCustomer ExperienceInnovation Hands-Free Assemblyusing Robotics Contemporary high-endsliding door solutions Expanding digitaltransaction experience Automated Guided Vehicle(AGV’s) transportation Entry door systems withIoT functionality Field deployment of realtime product support tools Multi-functioning toolingfor flexibility Increasing utilization ofcomposite wood materials Developing best in classorder configurator tools Single Piece Flow 2021 JELD-WEN Investor Day
Q&A Session
JELD-WENAcceleratedGrowth (JAG)Shawn LaskoskiSenior Vice President,Corporate Strategy and Business Development33 2021 JELD-WEN Investor Day
JEM is also for GrowthJELD-WEN Excellence Model (JEM)JELD-WEN Accelerated Growth (JAG)SUSTAIN ABL E COM PET IT IVE ADVANTAGEOPERATIONAL EXCELLENCELEADERSHIP AND GROWTHEXCELLENCESix Sigma/VariationReductionIntegrated BusinessPlanningGoal DeploymentTalent Dev. andAcquisitionSupply Chain/ MaterialProcessesERPStrategic PlanningLean LeadershipInorganicGrowthACHIEVE CONTINUOUS IMPROVEMENT CULTUREChangeover Reduction(SMED)/TPMPoka Yoke/Quality AtThe SourceCommercialExcellenceInnovation ExcellenceManufacturing SystemDesignPull/Kanban/FlowSegmentation andValue PropositionsProduct/Process Dev.and ValidationModel CellStandard Work w/Layered Process AuditRACI: AccountabilityProject/DiagonalManagementGemba Walks5s WorkplaceOrganizationTransaction ProcessImprovementChange ManagementKaizenValue Stream/Process MappingVisual Management: SQDCI and Hour X Hour BoardsBreakthroughInnovationBASI C PROBL EM SOLVI NG ( I NCL UDI NG A3 )VOICE OF CUSTOMERE N V I R O N ME N TA L , H E A LT H a n d S A F E T YJEM tools and processes enable multi-faceted growth3434 2021 JELD-WEN Investor DayCoreGrowth
Universal (“U”) Strategy for GrowthPREMIUM MATERIALS FORHIGH-PERFORMANCEEXTERIOR & INTERIORBUILDING UCTIVITYINNOVATION AND SUSTAINABILITYUniversally applied strategy – across all customer segments,all regions, all offerings, and all brands3535 2021 JELD-WEN Investor Day
ACCELERATED GROWTH VIA:Differentiated Customer ExperienceCustomer ExperienceActions Across Full End-to-End Customer JourneyCreate differentiatedposition by delivering bestCX at all touchpoints,enabled by digitalArchitects /DesignersChannel PartnerBuilderHomeownerBuilder and Consumer Brandsthat Generate PullEngage Architects, Designers,and SpecifiersPERPETUAL FUTURE-STATECUSTOMER EXPERIENCEEXECUTE PLAN INAGILE FASHIONReinvented End-to-EndExperiences for Builders,Partners and Homeowners evergreen capabilitiesroadmap and investmentsrequired to deliver to ensure continued CXleadership, foundational toour strategyEnhanced customer experience will drive profitable organic growth3636 2021 JELD-WEN Investor Day
ACCELERATED GROWTH VIA:Increasing Construction ProductivityConstruction ProductivityAid construction industry withproductivity challenges anddrive adoption of new methodsthat address labor challengesBetter Products, New OpportunitiesLabor ShortagesGlobal Supply ChainTurnkey SolutionsConstruction DynamicsPre-FabricationMarket Development forEmerging TechnologiesOfferings that increase construction productivity present new growth opportunities37 2021 JELD-WEN Investor Day
ACCELERATED GROWTH VIA:Market Driven OfferingsOffering FocusPremium Materials forHigh-performance Exterior andInterior Building ProductsCurrent Synergies, Future Opportunities*Entry and Patio Doors*WindowsInterior DoorsAdjacent Opportunities* Source: JELD-WEN - US Home Builder Survey March 2021Capital deployment and inorganic activity will accelerate growth3838 2021 JELD-WEN Investor Day
ACCELERATED GROWTH VIA:Sustainable InnovationInnovation PrioritiesESG AlignmentSustainability Focus AreasInnovation Focus AreasConnected Offerings (IoT)Energy EfficiencyIntegrated Product SystemsCircular ProductsConstruction andInstallation MethodsSustainable ProcessesMaterial ScienceWaste / Water ManagementInnovation and sustainability are core to creating growth3939 2021 JELD-WEN Investor Day
Multi-facetedGrowth Opportunitiesin EuropeDavid GuernseyExecutive Vice Presidentand President, Europe40 2021 JELD-WEN Investor Day
Positioned to GrowJELD-WEN is the doorleader in Europe#1in doors in Europe 13BMarketOperating from3212ServingProduction facilitiesBrands17 countries 300M peopleBroad portfolioWell established brandsStrong customer relationshipsResidential and Commercial#1 or #2 in present marketsManufacture close to customersVertically integratedDriving leadership with service, product and innovation4141 2021 JELD-WEN Investor Day
Leadership and Significant Growth PotentialSegment PotentialSolve Product Gaps in Current FootprintShare Acquisition High Performance Products to UKand FranceLeverage Brand and Incumbency Service Advantage e-Commerce Exterior door opportunities in Germanyand UK Product Innovation Steel products to N. Europe 13B*Geography PotentialPursue Organic and Inorganic expansion Adjacent Countries Eastern EuropeMarket Addressed by JELD-WENMarket Opportunity for JELD-WENBig opportunities in markets and segments yet to be addressed* Management estimate of European door market size42 2021 JELD-WEN Investor Day
Creating Value for our CustomersSuperior customer experience driving above market growthCustomer preferred configuration, quotation,order entry and order management tool Customer managed configurator Differentiated from competitors by richproduct data Enables instantaneous quotations 20%-40% reduction in order processing time EDI to JELD-WEN factory Integration with customer’s ERP Order confirmation in hours vs daysenabling 5 Plus processCreates value and efficiency for customers with a uniqueapproach to lead times for make-to-order product5 DayGuaranteed 5 day lead timeBasic product optionsHigher price premium10 DayGuaranteed 10 day lead timeMore complex product optionsModerate price premiumStandard15-30 day lead timeTechnical product portfolioStandard pricingService proposition enabled by digital platform, uniquemanufacturing process and JEM43 2021 JELD-WEN Investor Day
Expanding ServiceSuperiority with e-CommerceRapid-development techniques deliveredB2B e-Commerce platforms to France andthe UK in 90 DaysEstablishing platform leverageable globallyOrder cycle time reduced from up to 24 hoursto 30 minutese-Commerce orders average 40% larger thantraditional order entryRapid deployment continues to Northern EuropeAdditional business to consumer options offeredthrough our big box, merchant and online partnersActively removing friction from the buying experience44 2021 JELD-WEN Investor Day
Leading Through Innovation New product innovations drive about 30%of our growthEco-Options Securing and increasing our marketleading position Addressing developing customerpreferences SustainabilityThe Smart Door Connected Home / IOTContinued leadership through innovation45 2021 JELD-WEN Investor Day
Our JELD-WEN Home:Our ESG AmbitionRoya BehniaExecutive Vice President, GeneralCounsel and Chief Compliance Officer46 2021 JELD-WEN Investor Day
Our JELD-WEN Home: Our ESG AmbitionThrough our products, processes, and partnershipswe care for people and the planet we call homeMATERIALS THAT MATTERDOORS THAT OPENWINDOWS THAT BRIGHTENEnergy EfficientProduct PortfolioInnovation and ResearchTransparency, Reportingand AccountabilitySustainable Supply Chainand Circular EconomyDiversity, Equity andInclusionHealth and Safety47 2021 JELD-WEN Investor Day
Materials That Matter: HighlightsEnergy EfficientProduct Portfolio ENERGY STAR Partner since 1998 Targeting ENERGY STAR certification for all new products developedin North America Two product lines certified by the Passive House Institute for energyefficiency Doors made of 100% sustainable materials Energy efficiency certified across product lines Canadian Northern Tri-Pane Collection windows help heating andcooling and can decrease sound transmissionSustainable Supply Chainand Circular Economy Investing in systems that support cradle-to-cradle product lifecycles Manufacturing wood doors that are FSC/PEFC certified or the equivalent Increasing proportion of products from recycled materials Increasing volume of recycled content across the full product portfolio Designing products for circular end-of-use disposal48 2021 JELD-WEN Investor Day
Materials That Matter:Cirebon, Indonesia49 2021 JELD-WEN Investor Day
Doors That Open: HighlightsInnovation and Research Hired a global lead for innovation; established globalinnovation teams enabled by idea management systems Revamping our portfolio management process to increase focuson transformational and cutting-edge ideas Expanding our capabilities and investment in material scienceDiversity, Equity and Inclusion50 Three women on our Board of Directors including first person of color Requiring a diverse slate for selection and succession for leadershippositions Conducting proactive interventions to eliminate discriminatory biasDiverse RepresentationFemale (global)Ethnically Diverse 19% 2021 JELD-WEN Investor Day
WINDOWS THAT BRIGHTEN: HIGHLIGHTSWindows That Brighten:HighlightsHealth and Safety51 2021 JELD-WEN Investor Day Implementing best-in-class health and safetymanagement systems, standards and trainingrequirements to prevent workplace injuries, fatalitiesand illness 74 full-time employees focused on health andsafety and 50 full-time employees focused onenvironmental issues Launched health and safety campaign focusing on12 critical safety rules
Windows That Brighten:HighlightsIncreasing visibility and transparency We are building integrated sustainability reporting systems Our executive compensation is linked to ESG metrics onsafety, employee engagement and diversity5221,000 1985%associate engagementsurveys sentlanguagesresponserate in 2020 2021 JELD-WEN Investor Day
Our PathForward53 2021 JELD-WEN Investor Day
Delivering ExceptionalShareholder ReturnsJohn LinkerExecutive Vice President and CFO54 2021 JELD-WEN Investor Day
Extraordinary Track Record of PerformanceUSD in millionsNet RevenueAdjusted EBITDA 4,236 3,381Free Cash Flow 446 259 311 95201520202015202020152020Demonstrated revenue and earnings growth with compounding cash flow55 2021 JELD-WEN Investor Day
Multi-faceted Framework for Growth and CashTARGETDEMONSTRATED TRACK RECORDVolumeDeliver above market growthVolume growth acceleratingPricingPrice realization exceedsmaterial and freight inflation10 consecutive quarters of favorable price/costProductivityAnnual reduction in COGSexcluding volume/price/mix 50M of savings achieved from 2018 – 2020Fixed CostAnnual reduction in fixed costs1.5M sq. ft. reduction in footprint since 2018Working CapitalAnnual reduction in net workingcapital as percent of revenue160 bps reduction as percent of sales 2018 - 2020Delivering results and providing visibility to future revenuegrowth, margin expansion, and compounding cash flow56 2021 JELD-WEN Investor Day
Highly VariableCost StructureEnabled by JEMAdjusted EBITDA Per Employee2020 Cost of Goods Sold20152020FixedOverheadDirect Labor % of Cost of Goods SoldVariableOverheadMaterialFreightLaborVariable costs20152020Near-term fixed costsHighly variable cost structure provides platform for profitable growth;JEM enables ongoing improvements in cost structure57 2021 JELD-WEN Investor Day
Attractive Cash Conversion DynamicsNet Working Capital %of Sales (1)D&A as % of CapitalExpendituresEffective Cash Tax Rate160 bpsreductionenabled byJEMCapitalexpendituresat or belowD&AFavorable .4%22.2%10.0%2020201820192020201820191. Net working capital Accounts receivable Inventory – Accounts Payable – certain Accrued ExpensesHigh cash conversion supported by JEM and favorable tax attributes58 2021 JELD-WEN Investor Day17.5%2020
Balanced and Disciplined Capital DeploymentCash Deployed 2017 – 2020 ( 940M)Return on Invested CapitalDebt %8.8%9.9%M&A201920202021FDisciplined approach to capital allocation driving enhanced ROICReturn on invested capital [(Adjusted EBITDA minus D&A) * (1 - 27% tax rate)] / [Current Assets - Non-Interest Bearing CurrentLiabilities Net PP&E Goodwill and Intangibles Operating Lease Asset - Cash in excess of 100M minimum operating cash]59 2021 JELD-WEN Investor Day
High Visibility to Achieving 2025 TargetsORGANIC REVENUECAGR 2021-20252025 ADJUSTEDEBITDA MARGINFREE CASH FLOWCONVERSION 2021 -2025CAPITAL ALLOCATION2021-2025Above market 6% to 8%15% to 17%90% to 100% 4 billionof adjusted net incomeof M&A capacity(1);share repurchaseas alternativeMulti-faceted growth platform will deliver growth, margin expansion,and compounding cash flow through disciplined capital allocation60 2021 JELD-WEN Investor Day
2025 Plan - Adjusted EBITDA Margin15% to 17%11.2%Well-positioned to deliver achievable long-term margin target61 2021 JELD-WEN Investor Day
Q&A Session
Appendix
Reconciliation of Non-GAAPFinancial MeasuresManagement uses certain non-GAAP financial measures and considers them to be important supplemental measures of the company's performance. In addition, management believes these non-GAAP financialmeasures provide additional insight for analysts and investors in evaluating the company's financial and operating performance. These non-GAAP financial measures should not be considered alternatives to, ormore meaningful indicators of, the company's financial measures as prepared in accordance with GAAP. The company's methods of determining these non-GAAP financial measures may differ from themethods used by other companies and may not be comparable. The company also provides certain guidance solely on a non-GAAP basis because the company cannot predict certain elements that are includedin 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 forforward-looking non-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. Managementbases 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 var
2021 JELD-WEN Investor Day ORGANIC REVENUE CAGR 2021-2025 Above market 6% to 8% 2025 ADJUSTED EBITDA MARGIN 15% to 17% FREE CASH FLOW CONVERSION 2021-2025
