8-K
UFP INDUSTRIES INC (UFPI)
8-K
2023-03-01
For: 2023-03-01
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April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 1, 2023
UFP INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
| <br><br> | <br><br> | <br><br> |
|---|---|---|
| Michigan<br><br>(State or other Jurisdiction of Incorporation) | 0-22684<br><br>(Commission File Number) | 38-1465835<br><br>(IRS Employer Identification No.) |
| <br><br><br><br> | <br><br><br><br> |
|---|---|
| 2801 East Beltline, NE , Grand Rapids , Michigan<br><br>(Address of Principal Executive Offices) | 49525<br><br>(Zip Code) |
Registrant's telephone number, including area code: ( 616 ) 364-6161
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | UFPI | The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
Attached as Exhibit 99.1 is the Company's current version of its fourth quarter 2022 Investor Relations Presentation provided to investors and posted on the Company's website at www.ufpi.com.
The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01. Exhibits.
Exhibits
| | |
|---|---|
| 99.1 | 2022 Investor Relations Presentation. |
| | |
| 104 | Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document). |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | |
|---|---|---|
| Dated: March 1, 2023 | UFP INDUSTRIES, INC. | |
| | (Registrant) | |
| | | |
| | By: | /s/ Michael R. Cole |
| | | Michael R. Cole |
| | | Principal Financial Officer and Treasurer |
3
Exhibit 99
| 1<br>2023 Investor Relations<br>Presentation<br>Results through<br>December 31, 2022 |
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| 2<br>UFP INDUSTRIES, INC.<br>2022<br>Please be aware that statements included in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities<br>Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the<br>economy, and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” likely,” “plans,” “projects,” “should,” variations of<br>such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks,<br>uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to<br>update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. Actual<br>results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and<br>uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: Fluctuations in the price of<br>lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particularly involving environmental and safety<br>regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included<br>in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.<br>Non-GAAP Financial Information: This presentation includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies<br>calculate non-GAAP financial information identically (or at all), the information herein may not be comparable to other similarly titled measures used by other<br>companies. Management considers adjusted EBITDA and return on invested capital to be non-GAAP alternative performance measures which may provide useful<br>information to investors.<br>This presentation is the property of UFP Industries, Inc. Any redistribution, retransmission, or reprinting of this presentation in any form without the express written<br>consent of UFP Industries is strictly prohibited. |
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| 3<br>UFP Industries is a holding company whose operating<br>subsidiaries – UFP Packaging, UFP Construction and UFP<br>Retail Solutions – manufacture, distribute and sell a wide<br>variety of value-added products used in residential and<br>commercial construction, outdoor living, packaging and<br>other industrial applications worldwide.<br>NO MISSION STATEMENTS. JUST PEOPLE ON A MISSION.™ |
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| 4<br>39%<br>32%<br>25%<br>4% Based on 2022 Net Sales<br>I NT R O DU CT I O N<br>UFP AT A GLANCE<br>Retail - $3.7B in 2022<br>Big box, independents, & buying co-ops<br>Construction - $3.1B in 2022<br>Single- and multi-family builders, commercial<br>builders, concrete formers, factory-built housing<br>(mobile & modular homes) & RVs<br>2022<br>Packaging - $2.4B in 2022<br>Broad range of Industrial manufacturers, OEM’s,<br>agricultural and logistics<br>International - $0.4B in 2022<br>Overseas sourcing and selling with manufacturing<br>and design assets in eight countries<br>15,000+<br>Number of employees<br>worldwide<br>218<br>Number of facilities<br>worldwide<br>$9.6B<br>2022 Net Sales<br>$1.1B<br>2022 Adj. EBITDA<br>1955<br>Company founded in<br>Alma, MI, now HQ’ed in<br>Grand Rapids<br>$ |
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| 5<br>I NT R O DU CT I O N<br>WHERE WE ARE<br>2022<br>193<br>2<br>4<br>1<br>11<br>1<br>5<br>218 Locations<br>1 |
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| 6<br>BU S I NE S S M O DE L<br>LONG-TERM FINANCIAL GOALS<br>2022<br>Annual unit sales<br>growth of 5-7<br>percent, including<br>small acquisitions<br>10% Adjusted<br>EBITDA margin<br>Earn incremental<br>return on new<br>investment<br>greater than WACC<br>Maintain a<br>conservative capital<br>structure |
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| 7<br>BU S I NE S S M O DE L<br>INNOVATION AND NEW PRODUCTS<br>2013<br>$426m<br>3%<br>10%<br>$85m<br>New Products<br>2022<br>10%<br>$540m<br>Sales % of Sales Sales % of Sales Sales % of Sales<br>$842m<br>10%<br>Sales % of Sales<br>2013 2020 2019 2021<br>$736m<br>Sales % of Sales<br>2022<br>8%<br>4%*<br>$377m*<br>*This represents the new product sales, while still sold, that were sunset in 2022 and<br>excluded because they no longer meet the definition of new products. New products are<br>defined as those that will generate sales of at least $1 million per year within 4 years of<br>launch and are still growing and gaining market penetration. |
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| 8<br>New Structure Drives Better<br>Strategy, Development and Execution<br>Western Division<br>Southern Division<br>Northern Division<br>2020 and Beyond<br>1955 - 2019 2020 and Beyond<br>Our new structure, based on management of market segments rather than geography,<br>brought greater focus, effecting: • Improved alignment with our customers<br>• Faster introduction of new, value-added products<br>• Better, quicker decision making<br>• More effective allocation of capital<br>Result: better EBITDA margins and ROIC.<br>2022<br>BU S I NE S S M O DE L |
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| 9<br>BU S I NE S S M O DE L<br>A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD<br>Strong Balance<br>Sheet<br>Return-focused<br>approach to capital<br>allocation.<br>Capital reserves used<br>opportunistically.<br>Average senior<br>management team<br>tenure: 22.3 years.<br>67 straight years of<br>profitability.<br>Every plant is a profit<br>center and all<br>employees bonused<br>on ROI.<br>All managers required<br>to own stock.<br>Balanced<br>Business Model<br>Experienced<br>Leadership<br>Incentives Aligned<br>With Shareholders<br>Diversified business<br>portfolio mitigates<br>lumber and business<br>risk.<br>Mix of fixed- and<br>variable-priced<br>products hedges<br>volatile lumber prices.<br>Stable Prepared Focused Entrepreneurial<br>Model maintains performance in cyclical and secular downturns.<br>2022 |
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| 10<br>U F P I ND U S T R I E S<br>BUSINESS SEGMENTS<br>2022 |
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| 11<br>BU S I NE S S S E G M E NT S<br>2022<br>2013<br>Value-added as a % of Net Sales<br>2013<br>$284m<br>19%<br>15%<br>$402m<br>$510m<br>19%<br>Sales % of Sales Commodity Value-added<br>2019 2020 2021<br>58%<br>42%<br>46%<br>43%<br>57% Sunbelt 54%<br>$924M 2022<br>DecKorators**<br>$326M 2022<br>UFP Edge<br>$168M 2022<br>Prowood*<br>$2.2B 2022<br>*Includes $393M in Outdoor Essentials, $338M in Retail Building Materials, and $97M in Handprint.<br>**Comprised of 64% to Big Box customers and 36% to one- and two-step distribution.<br>(1) This represents the new product sales, while still sold, that were sunset in 2022 and excluded<br>because they no longer meet the definition of new products. New products are defined as those that<br>will generate sales of at least $1 million per year within 4 years of launch and are still growing and<br>gaining market penetration.<br>New Products & % of Net Sales<br>55%<br>45%<br>2019 2020 2021<br>$307m<br>8%<br>8%(1)<br>$283m(1)<br>2022 2022 |
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| 12<br>Deckorators.com<br>BU S I NE S S S E G M E NT S<br>RETAIL SOLUTIONS<br>ProWoodLumber.com OutdoorEssentialProducts.com UFPEdge.com<br>Outdoor lifestyle products<br>including wood and vinyl fencing,<br>landscape and garden décor,<br>picnic tables, pergolas,<br>trellises and more.<br>Premium siding, pattern,<br>trim; interior accent<br>wall products.<br>Pressure-treated decking,<br>timbers, panels and<br>construction materials,<br>including fire-retardant.<br>The industry’s leading<br>innovator of composite<br>decking, railing and<br>accessories.<br>On-trend brands to all major building products retailers, supported with best-in-class in-store and e-commerce support. 2022 |
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| 13<br>2022<br>2013<br>$69m 6%<br>New Products & % of Net Sales<br>$73m 8%<br>$177m<br>7%<br>Sales % of Sales 2013<br>35%<br>66%<br>34%<br>68%<br>32%<br>65%<br>Commodity Value-added<br>Value-added as a % of Net Sales<br>UFPpackaging.com<br>Protective Packaging Solutions<br>$57M 2022<br>BU S I NE S S S E G M E NT S<br>PalletOne<br>$399M 2022<br>2019 2020 2021<br>72%<br>28%<br>2019 2020 2021<br>(1) This represents the new product sales, while still sold, that were sunset in 2022 and<br>excluded because they no longer meet the definition of new products. New products are<br>defined as those that will generate sales of at least $1 million per year within 4 years of<br>launch and are still growing and gaining market penetration.<br>$278m<br>$38m(1)<br>12%<br>2%(1)<br>2022 2022<br>Structural Packaging<br>$1.9B 2022 |
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| 14<br>BU S I NE S S S E G M E NT S<br>PACKAGING<br>Corrugated, stretch/shrink films,<br>labels, machine applicators, facility<br>supplies, hardware and software<br>solutions for all industries.<br>PROTECTIVE<br>PACKAGING<br>Wood, steel, foam and corrugated for mixed material crates and SOLUTIONS<br>specialty containers. Hard cases, tracking technology, logistics<br>solutions and onsite packaging services.<br>Lumber processing, composites, foam, metals, panel goods,<br>furniture parts, cabinet, shed, door, and window components.<br>STRUCTURAL<br>PACKAGING<br>New and recycled pallets,<br>design, engineering<br>and testing.<br>PALLETONE<br>Innovative packaging solutions and components backed by a global<br>manufacturing footprint and the industry’s leading engineering,<br>design, and integrated service teams. 2022 |
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| 15<br>BU S I NE S S S E G M E NT S<br>2022<br>2013<br>$148m<br>$60m<br>4%<br>$54m 5%<br>$136m<br>3%<br>Sales % of Sales 2013<br>24%<br>81%<br>19%<br>73%<br>27%<br>76%<br>Commodity Value-added<br>Value-added as a % of Net Sales<br>Factory-Built<br>$1.2B 2022<br>Commercial<br>$336M 2022<br>Concrete Forming<br>$264M 2022<br>Site-Built<br>$1.4B 2022<br>New Products & % of Net Sales<br>(1) This represents the new product sales, while still sold, that were sunset in<br>2022 and excluded because they no longer meet the definition of new products.<br>New products are defined as those that will generate sales of at least $1 million<br>per year within 4 years of launch and are still growing and gaining market<br>penetration.<br>2019 2020 2021<br>23%<br>77%<br>2019 2020 2021<br>$39m(1)<br>5%<br>1%(1)<br>2022 2022 |
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| 16<br>Roof trusses, wall panels, floor<br>systems, doors and framing<br>services for residential and light<br>commercial builders. Sales are<br>75% single family, 25%<br>multifamily.<br>Roof trusses, floor joists,<br>laminated wall panels, cabinet<br>components, countertops and<br>milled components for modular<br>and manufactured homes, RV’s<br>and mobile offices.<br>BU S I NE S S S E G M E NT S<br>CONSTRUCTION<br>SITE-BUILT FACTORY-BUILT<br>UFPConstruction.com IDXCorporation.com<br>Turnkey project management of<br>consumer environment and<br>architectural interiors. Design,<br>development, engineering,<br>manufacturing, assembly, distribution<br>and installation.<br>COMMERCIAL<br>Designed,<br>engineered and<br>manufactured forms.<br>CONCRETE FORMING<br>Single-source provider of building components, concrete forms, framing, exterior and<br>interior finishing programs designed to make building processes run at maximum efficiency. 2022<br>https://www.questdisplays.com/ |
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| 17<br>Lumber trading, packaging and building materials in 65 countries to supply local and<br>multinational customers across major markets. Global industrial packaging solutions provider<br>with manufacturing and distribution facilities in Canada, Mexico, Italy, Australia and India.<br>BU S I NE S S S E G M E NT S<br>2022<br>2022 Sales: $409 million |
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| 18<br>SUSTAINABILITY CONTINUUM<br>2022<br>Drive<br>operational<br>excellence<br>throughout<br>the enterprise<br>Cultivate<br>a unique,<br>rewarding<br>culture<br>throughout<br>the UFP family<br>of companies<br>Provide<br>significant<br>opportunity<br>for professional<br>and personal<br>growth<br>Support<br>communities<br>in which we<br>operate<br>Supply<br>exceptional<br>products<br>from<br>sustainable<br>sources<br>Maintain<br>inclusive, safe<br>working<br>environments<br>Attract<br>and retain<br>diverse<br>top-shelf<br>talent<br>Operate<br>with a focus<br>on energy<br>efficiency<br>and lean<br>manufacturing<br>Deliver<br>Consistent, positive<br>financial results to our<br>shareholders<br>For UFP, sustainability means more than using and selling renewable materials.<br>It serves our ultimate goal of creating and sustaining value for shareholders.<br>BU S I NE S S M O DE L |
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| 19<br>OUR SUSTAINABILITY PHILOSOPHY<br>We have always believed profitability, asset values and shareholder return<br>are optimized by acting responsibly, and that our investors experience<br>higher sustainable returns when we support our customers, employees and<br>communities . Our views on maintaining a sustainable enterprise can be<br>found here.<br>For UFP Industries, doing right doesn’t require<br>departments and titles, but is simply part of who<br>we’ve been and who we continue to be. And that’s<br>how we like it – fewer committees, higher standards,<br>and increased financial and social reward for<br>employees, customers and communities.<br>BU S I NE S S M O DE L<br>Priorities are successful employee outcomes and consistent shareholder return.<br>2022 |
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| 20<br>FINANCIALS |
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| 21<br>OUR PERFORMANCE<br>7.2%<br>Adjusted EBITDA Margin<br>$4,416 8.4% 9.7%<br>Net Sales<br>$5,154 $8,636<br>$180<br>Net Earnings (ACI)<br>$247 $536 0.0<br>Net Debt to Adjusted EBITDA<br>15.1% 0.0 0.06<br>ROIC<br>21.0% 34.6%<br>2019<br>2020<br>2021<br>Unit sales<br>growth rate<br>6% 6%<br>28%<br>$ Sales in<br>Millions<br>Growth rate 21%<br>37%<br>117%<br>$317<br>Adjusted EBITDA<br>$431 $835<br>19%<br>36%<br>94%<br>2022<br>Strong track record of growth and performance improvement with emphasis on raising gross profit dollars per unit.<br>ROIC-focused.<br>2022<br>$9,627<br>0.0<br>11.4%<br>$693 32.2%<br>29%<br>$1,097<br>31%<br>2%<br>FI NA NCI A LS<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. |
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| 22<br>MANAGING LUMBER MARKET RISK<br>Level of lumber prices does<br>not drive profitability<br>Sequential trends<br>impact profit per unit<br>Balanced mix of variable and<br>fixed-price products mitigate risk Adjusted EBITA Margin Lumber Market Volatility*<br>4.2%<br>34.5%<br>39.9% 39.9%<br>7.2% 8.4% 9.7%<br>11.4%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>2019 2020 2021 2022<br>Lumber Market Volatility Adjusted EBITDA Margin<br>*Standard deviation of lumber prices divided by average weekly price.<br>2022<br>Balanced business model drives stable profit per unit.<br>FI NA NCI A LS<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. |
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| 23<br>FI NA NCI A LS<br>2022<br>NET SALES (in millions)<br>Long-Term Goal: Unit sales growth of 5% to 7%, including small acquisitions. Net Sales Percent Change $4,416 $5,154<br>$8,636 $9,627 6% 6%<br>28%<br>2%<br>5% 5%<br>4%<br>(1)%<br>-5%<br>5%<br>15%<br>25%<br>35%<br>45%<br>55%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br> $12,000<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth Net Sales<br>2019 2020 2021 2022<br>UFP Consolidated Net Sales Percent Change $1,086 $1,072<br>$2,148 $2,395 4%<br>(6)%<br>40%<br>(1)%<br>(2)% (8)%<br>5%<br>(2)%<br>-15%<br>0%<br>15%<br>30%<br>45%<br>60%<br>75%<br> $-<br> $500<br> $1,000<br> $1,500<br> $2,000<br> $2,500<br> $3,000<br>UFP Packaging Net Sales Percent Change $1,499<br>$2,167<br>$3,418 $3,651 10%<br>25%<br>31%<br>10% 0%<br>24%<br>(4)% (5)%<br>-10%<br>5%<br>20%<br>35%<br>50%<br>65%<br>80%<br> $-<br> $750<br> $1,500<br> $2,250<br> $3,000<br> $3,750<br> $4,500<br>UFP Retail Solutions Net Sales Percent Change $1,637 $1,696<br>$2,698<br>$3,144 6%<br>(6)%<br>17%<br>6%<br>6%<br>(7)%<br>14%<br>6%<br>-15%<br>-5%<br>5%<br>15%<br>25%<br>35%<br>45%<br>55%<br> $-<br> $750<br> $1,500<br> $2,250<br> $3,000<br> $3,750<br> $4,500<br>UFP Construction<br>2019 2020 2021 2022<br>2019 2020 2021 2022 2019 2020 2021 2022 |
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| 24<br>UFP Consolidated<br>UFP Packaging<br>UFP Retail Solutions<br>UFP Construction<br>FI NA NCI A LS<br>ADJUSTED EBITDA (in millions)<br>2022<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. Adjusted EBITDA Adjusted EBITDA Margin<br>Adjusted EBITDA Adjusted EBITDA Margin<br>$317<br>$431<br>$835<br>$1,097<br>7.2%<br>8.4%<br>9.7%<br>11.4%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br> $-<br> $200<br> $400<br> $600<br> $800<br> $1,000<br> $1,200<br>2019 2020 2021 2022 Adjusted EBITDA Adjusted EBITDA Margin $101 $100<br>$300<br>$376<br>9.3% 9.3%<br>14.0%<br>15.7%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br>20.0%<br> $-<br> $75<br> $150<br> $225<br> $300<br> $375<br> $450<br>2019 2020 2021 2022 Adjusted EBITDA Adjusted EBITDA Margin $75<br>$170<br>$151<br>$180<br>5.0%<br>7.8%<br>4.4%<br>4.9%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br>2019 2020 2021 2022 Adjusted EBITDA Adjusted EBITDA Margin $96 $98<br>$283<br>$422<br>5.9% 5.8%<br>10.5%<br>13.4%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br>20.0%<br> $-<br> $100<br> $200<br> $300<br> $400<br> $500<br>2019 2020 2021 2022<br>Long-Term Goal: Achieve and sustain a 10% adjusted EBITDA margin. |
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| 25<br>UFP Consolidated<br>UFP Packaging<br>UFP Retail Solutions<br>FI NA NCI A LS<br>ADJUSTED EBITDA GROWTH AND UNIT SALES<br>2022 Percent Growth 6% 6%<br>28%<br>2%<br>19%<br>36%<br>94%<br>31%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>2019 2020 2021 2022<br>Adjusted EBITDA Growth Unit Sales Growth<br>Long-Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth.<br>UFP Construction Percent Growth 4% (6)%<br>40%<br>(1)%<br>34%<br>(1)%<br>200%<br>25%<br>-20%<br>20%<br>60%<br>100%<br>140%<br>180%<br>220%<br>2019 2020 2021 2022 Percent Growth 10%<br>25% 31%<br>0%<br>18%<br>127%<br>(11)%<br>19%<br>-40%<br>10%<br>60%<br>110%<br>160%<br>2019 2020 2021 2022 Percent Growth 6% (6)% 17% 6%<br>14%<br>2%<br>189%<br>49%<br>-20%<br>30%<br>80%<br>130%<br>180%<br>2019 2020 2021 2022<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. |
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| 26<br>FI NA NCI A LS<br>RETURN ON INVESTED CAPITAL<br>Hurdle Rate = 20% Percent<br>13.2% 14.0% 15.1%<br>21.0%<br>32.2%<br>34.6%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>2017 2018 2019 2020 2021 2022<br>Long-Term Goal: Earn an incremental return on new investment over our WACC.<br>WACC = 10%<br>2022<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. |
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| 27<br>FI NA NCI A LS<br>CASH CYCLE<br>2022<br>Cash Cycle = Days Receivables Outstanding + Days Supply of Inventory – Days Payables Outstanding Days<br>52.4 54.1 55.7<br>48.1<br>56.8 56.4<br>0<br>10<br>20<br>30<br>40<br>50<br>60<br>70<br>2017 2018 2019 2020 2021 2022 |
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| 28<br>BALANCED USE OF FREE CASH FLOW<br>Acquisitions to contribute<br>half of our total annual<br>unit sales growth<br>CapEx plan of $200M to<br>$225M in 2023<br>Opportunistic share repurchases<br>to offset issuances<br>Increasing dividends<br>$349 $336<br>$512<br>$832<br>$25 $31 $40 $59 $29<br>$96<br>$85<br>$89 $151<br>$174<br>$39<br>$65<br>$476 $180<br>Acquisitions<br>Capex<br>Share Buyback<br>Dividends<br>OCF<br>2019 2020 2021<br>Operating Cash Flow and Capital Allocation<br>(in millions)<br>Return-focused approach to capital allocation.<br>2022<br>2022<br>FI NA NCI A LS |
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| 29<br>FI NA NCI A LS<br>CAPITAL STRUCTURE Percent<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to Adjusted EBITDA<br>vs Maximum Target<br>12.8%<br>15.7%<br>0.0% 0.0%<br>2.5%<br>0.0% 0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>2017 2018 2019 2020 2021 2022<br>0.60<br>0.80 - - 0.06 - 0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>2017 2018 2019 2020 2021 2022<br>Max target Net Debt to Total Capital<br>Net Debt to TTM Adjusted EBITDA<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement.<br>Conservative capital structure ensures ample resources to pursue prudent<br>investment opportunities. 2022 |
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| 30<br>FI NA NCI A LS<br>2022<br>NET SALES Q4 2022 (in millions)<br>$2,489<br>$2,901<br>$2,323<br>$1,914<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Consolidated<br>Organic Unit Sales<br>YOY Growth<br>Total Unit Sales<br>YOY Growth Net Sales<br>$993<br>$1,121<br>$845<br>$691<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Retail Solutions<br>$611<br>$676<br>$585 $522<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Packaging<br>$787<br>$975<br>$777<br>$605<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Construction<br>10%<br>3% 5%<br>(9)%<br>3% 2% 3%<br>(10)%<br>12%<br>(6)%<br>6%<br>(2)% (9)%<br>(7)%<br>3%<br>(11)%<br>(3)%<br>0% 1%<br>0%<br>(4)%<br>(1)% (2)%<br>2%<br>15% 17%<br>8%<br>(14)%<br>14% 17%<br>8%<br>(14)% |
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| 31<br>FI NA NCI A LS<br>2022<br>ADJUSTED EBITDA Q4 2022 (in millions)<br>$2.9<br>$2.0 $2.1<br>$292 $319<br>$274<br>$213<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Consolidated<br>Adjusted EBITDA Adjusted EBITDA Margin<br>$2.9<br>$2.0 $2.1<br>$78<br>$31 $36 $34<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Retail Solutions<br>$2.9<br>$2.0 $2.1<br>$92<br>$105<br>$90 $89<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Packaging<br>$2.9<br>$2.0 $2.1 $85<br>$138<br>$116<br>$84<br>Q1 2022 Q2 2022 Q3 2022 Q4 2022<br>UFP Construction<br>11.7%<br>11.0%<br>11.8%<br>11.1%<br>7.9 %<br>2.8 % 4.2 % 5.0 %<br>15.1% 15.5% 15.4%<br>17.0%<br>10.8% 14.2% 14.9% 13.9%<br>Non-GAAP Financial Information: Please click here for reconciliation to related GAAP measurement. |
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| 32<br>2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800) 598-9663 - UFPI.com<br>THANK YOU. |
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