8-K
UFP INDUSTRIES INC (UFPI)
8-K
2022-08-10
For: 2022-08-10
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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): August 10, 2022
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 second 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: August 10, 2022 | UFP INDUSTRIES, INC. | |
| | (Registrant) | |
| | | |
| | By: | /s/ Michael R. Cole |
| | | Michael R. Cole |
| | | Principal Financial Officer and Treasurer |
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Exhibit 99.1
| 1<br>2022 Investor Relations<br>Presentation<br>Results through June 30, 2022 |
|---|
| 2<br>UFP INDUSTRIES, INC.<br>2022<br>Please be aware that: Statements included in this presentation that are not historical are forward<br>-<br>looking statements within the<br>meaning of Section 21E of the Securities<br>Exchange Act, as amended, and are based on management’s beliefs, assumptions, current expectations, estimates, and projection<br>s a<br>bout the markets we serve, the<br>economy, and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” like<br>ly,<br>” “plans,” “projects,” “should,” variations of<br>such words, and similar expressions identify such forward<br>-<br>looking statements. These statements do not guarantee future performan<br>ce and involve certain risks,<br>uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrenc<br>e.<br>The Company does not undertake to<br>update forward<br>-<br>looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward<br>-<br>l<br>ooking statements are made.<br>Actual<br>results could differ materially from those included in such forward<br>-<br>looking statements. Investors are cautioned that all forward<br>-<br>looking statements involve risks and<br>uncertainty.<br>Among the factors that could cause actual results to differ materially from forward<br>-<br>looking statements are the foll<br>owing:<br>Fluctuations in the price of<br>lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particular<br>ly<br>involving environmental and safety<br>regulations; and our ability to make successful business acquisitions.<br>Certain of these risk factors as well as other risk facto<br>rs and additional information are included<br>in the Company's reports on Form 10<br>-<br>K and 10<br>-<br>Q on file with the Securities and Exchange Commission.<br>Non<br>-<br>GAAP Financial Information:<br>This presentation includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies<br>calculate non<br>-<br>GAAP financial information identically (or at all), the information herein may not be comparable to other similarl<br>y titled measures used by other<br>companies. Management considers adjusted EBITDA and return on invested capital to be non<br>-<br>GAAP alternative performance measures w<br>hich may provide useful<br>information to investors.<br>This presentation is the property of UFP Industries, Inc.<br>Any redistribution, retransmission, or reprinting of this presentation<br>in any form without the express written<br>consent of Universal is strictly prohibited.<br>Page 2 of 36 |
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| 3<br>UFP Industries is a holding company whose operating<br>subsidiaries<br>–<br>UFP Industrial, UFP Construction and UFP<br>Retail Solutions<br>–<br>manufacture, distribute and sell a wide<br>variety of value<br>-<br>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.<br>™<br>Page 3 of 36 |
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| 4<br>40%<br>31%<br>24%<br>5%<br>Based on<br>2021 Sales<br>INTRODUCTION<br>UFP AT A GLANCE<br>Retail<br>-<br>$3.4B<br>Big box, independents, & buying co<br>-<br>ops<br>Construction<br>-<br>$2.7B<br>Single and multi<br>-<br>family builders, commercial<br>builders, concrete formers, factory<br>-<br>built housing<br>(mobile & modular homes) & RVs<br>2022<br>Industrial<br>-<br>$2.1B<br>Industrial packaging, packaging materials<br>& OEM components<br>International<br>-<br>$0.4B<br>Overseas sourcing and selling with manufacturing<br>and design assets in eight countries.<br>15,000+<br>Number of employees<br>worldwide<br>211<br>Number of facilities<br>worldwide<br>$8.6B<br>2021 Net sales<br>$835M<br>2021 Adjusted EBITDA<br>1955<br>Company founded in<br>Grand Rapids, MI<br>$<br>Page 4 of 36 |
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| 5<br>INTRODUCTION<br>WHERE WE ARE<br>2022<br>186<br>2<br>4<br>1<br>11<br>1<br>5<br>211 Locations<br>1<br>Page 5 of 36 |
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| 6<br>OUR PERFORMANCE<br>2022<br>7.2%<br>Adjusted EBITDA Margin<br>8.4%<br>9.7%<br>$4,416<br>Net Sales<br>$5,154<br>$8,636<br>$180<br>Net Earnings (ACI)<br>$247<br>$536<br>0.0<br>Net Debt to Adjusted EBITDA<br>0.0<br>0.06<br>15.1%<br>ROIC<br>21.0%<br>32.2%<br>2019<br>2020<br>2021<br>Unit sales<br>growth rate<br>6%<br>6%<br>28%<br>$ Sales in<br>Millions<br>Growth rate<br>21%<br>37%<br>117%<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>$317<br>Adjusted EBITDA<br>$431<br>$835<br>19%<br>36%<br>94%<br>Page 6 of 36 |
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| 7<br>BUSINESS MODEL<br>LONG<br>-<br>TERM FINANCIAL GOALS<br>2022<br>Annual unit sales<br>growth of 5<br>-<br>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<br>Page 7 of 36 |
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| 8<br>2022<br>VALUE<br>-<br>ADDED TRANSFORMATION<br>Page 8 of 36 |
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| 9<br>BUSINESS MODEL<br>INNOVATION AND NEW PRODUCTS<br>2013<br>$426m<br>3%<br>10%<br>$85m<br>New Products<br>2022<br>2019<br>2021<br>10%<br>$540m<br>2013<br>% of Sales<br>Sales<br>% of Sales<br>Sales<br>% of Sales<br>Sales<br>$842m<br>10%<br>2020<br>% of Sales<br>Sales<br>Page 9 of 36 |
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| 10<br>MANAGEMENT STRUCTURE EVOLUTION<br>Since our founding through 2019, we managed our people<br>and plants regionally. Beginning January 1, 2020, we<br>realigned our management teams to focus specifically on<br>business segments rather than geographies.<br>At the same<br>time, we changed our name to better reflect the breadth of<br>our<br>product mix.<br>The new structure brought greater focus, resulting in:<br>•<br>Improved alignment with our customers<br>•<br>Faster introduction of new, value<br>-<br>added products<br>•<br>Better, quicker decision making<br>•<br>More effective allocation of capital<br>•<br>More consistent execution<br>Western Division<br>Southern Division<br>Northern Division<br>2020 and Beyond<br>1955<br>-<br>2019<br>2020 and Beyond<br>2022<br>Page 10 of 36 |
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| 11<br>BUSINESS MODEL<br>ACQUISITIONS<br>2022<br>PROCESS<br>Identify attractive<br>growth runways in<br>each Business Unit<br>under each Business<br>Segment and identify<br>gaps in our capabilities<br>to pursue those<br>runways.<br>PURPOSE<br>Find new products<br>and services to speed<br>our transformation<br>from commodity<br>sales to value<br>-<br>added<br>selling solutions and<br>brands.<br>GOAL<br>Achieve scale and<br>synergy targets to<br>optimize growth,<br>margins and<br>returns.<br>Page 11 of 36 |
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| 12<br>BUSINESS MODEL<br>2022<br>PalletOne<br>, Inc.<br>Th<br>e leading<br>manufacturer of new<br>pallets in the U.S.,<br>with<br>17 manufacturing<br>facilities and 1,500<br>employees in the<br>Southern and Eastern<br>regions of the U.S. The<br>company also supplies<br>specialized industrial<br>packaging, including<br>custom bins and<br>crates, and its<br>Sunbelt<br>Forest Products<br>subsidiary operates<br>five pressure<br>-<br>treating<br>facilities in the<br>Southeastern U.S.<br>2020<br>Annual<br>sales:<br>$267M<br>Sunbelt Forest<br>Products<br>Expands UFPI’s<br>capacity,<br>capabilities and<br>customer base,<br>bolsters our<br>position as the<br>leading wood<br>preserver in the<br>U.S., and moves us<br>closer to our goal<br>of becoming the<br>preferred global<br>packaging solutions<br>provider.<br>2020 Annual sales:<br>$431M<br>Gilmores, Pty Ltd<br>Adds a wide portfolio of<br>consumable packaging<br>products and expands UFP<br>Industrial’s customer base<br>throughout Australia.<br>Operating from its<br>distribution facility in Port<br>Melbourne, Gilmores is a<br>leading distributor of<br>packaging tapes, stretch<br>films, packaging<br>equipment, strapping,<br>construction protection<br>products and other items.<br>2020 Annual sales:<br>$10M<br>2021 ACQUISITIONS<br>Walnut Hollow<br>Farm, Inc.<br>Designs, manufactures,<br>sells and distributes<br>wood products, tools,<br>and accessories for<br>the craft and hobby,<br>personalized home<br>dcor, and hardware<br>categories. Brings UFP<br>Retail Solutions a new<br>and unique mix of<br>ready<br>-<br>to<br>-<br>make wood<br>products and tools,<br>along with strong<br>relationships with<br>hobby and<br>craft retailers.<br>2020 Annual sales:<br>$12M<br>Spartanburg<br>Forest Products<br>Wood treating<br>operations in the<br>southeastern U.S., with<br>approximately 150<br>employees and<br>operations in five<br>states. The<br>combination of<br>Spartanburg and<br>Sunbelt generate<br>operational efficiencies<br>that allow both<br>companies to provide<br>greater value to our<br>customers, while<br>expanding our capacity<br>and geographic reach.<br>2020 Annual sales:<br>$543M<br>Endurable Building<br>Products, LLC<br>Based near Minneapolis, a<br>leading manufacturer of<br>customized structural<br>aluminum systems and<br>products for exterior<br>purposes, such as deck<br>framing, balconies,<br>sunshades, railings and<br>stairs. Their addition<br>strengthens UFP<br>relationships with existing<br>construction customers,<br>providing them with a new<br>range of products and<br>services that match an<br>important UFP Construction<br>growth runway.<br>2020 Annual sales:<br>$15M<br>Shelter<br>Products, Inc.<br>Based in<br>Haleyville,<br>Alabama,<br>provides<br>distribution and<br>logistics support<br>to factory<br>-<br>built<br>manufacturers<br>through nine<br>warehouses<br>across the U.S.<br>Expands UFP’s<br>reach in its<br>Factory<br>-<br>Built<br>business<br>segment.<br>2020 Annual<br>sales:<br>$11M<br>2021<br>continued ><br>Page 12 of 36 |
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| 13<br>BUSINESS MODEL<br>2022<br>Boxpack<br>Packaging<br>Based near<br>Melbourne, Australia,<br>specializes in<br>flexographic and<br>lithographic<br>cardboard packaging,<br>using the latest CAD<br>design and finishing<br>techniques.<br>Boxpack<br>broadens the<br>portfolio of packaging<br>solutions provided by<br>UFP’s UBEECO Group<br>in Australia.<br>2020 Annual sales:<br>$6M<br>Ficus Pax Private<br>Limited<br>Headquartered in<br>Bangalore, India,<br>manufactures mixed<br>-<br>material cases and crates,<br>nail<br>-<br>less plywood boxes,<br>wooden pallets and other<br>packaging products through<br>10 facilities located in major<br>industrial markets<br>throughout southern India.<br>Ficus also owns a majority<br>stake in<br>Wadpack<br>, a<br>manufacturer of corrugated<br>fiberboard containers,<br>corrugated pallets and<br>display solutions.<br>2021 Annual sales:<br>$39M<br>Advantage Labels<br>& Packaging, Inc.<br>Based in Grand Rapids,<br>Michigan, provides<br>blank and customized<br>labels, printers, label<br>applicators and other<br>packaging supplies. Key<br>industries served<br>include beverage; body<br>armor; food production<br>and processing;<br>greenhouse and<br>nursery; hobby and<br>craft; manufacturing<br>and automotive.<br>2021 Annual sales:<br>$20M<br>Ultra Aluminum<br>Manufacturing, Inc.<br>Located in Howell, Michigan,<br>a leading manufacturer of<br>aluminum fencing, gates<br>and railing. The company<br>designs and produces an<br>extensive selection of<br>ornamental aluminum<br>fence and railing products<br>for contractors, landscapers,<br>fence dealers and<br>wholesalers.<br>Ultra's product<br>line adds to UFP's current<br>lineup of vinyl and wood<br>fencing, strengthening our<br>commitment to bring<br>customers more choice and<br>product innovation.<br>2021 Annual sales:<br>$45M<br>Cedar Poly LLC<br>Based in Tipton, Iowa, a<br>full<br>-<br>service recycler of high<br>-<br>and low<br>-<br>density<br>polyethylene flakes and<br>pellets used in various<br>products, including<br>composite decking. The<br>company also recycles<br>corrugate and operates its<br>own transportation fleet.<br>Cedar Poly allows UFP to<br>vertically integrate our<br>sourcing of recycled<br>polymers and increase our<br>use of post<br>-<br>industrial waste<br>materials in our products<br>without compromising<br>quality.<br>2021 Annual sales:<br>$17M<br>Dempsey Wood<br>Products, LLC.<br>Located in Orangeburg,<br>South Carolina,<br>produces kiln<br>-<br>dried<br>lumber, pallet lumber,<br>and other industrial<br>wood products. The<br>industrial lumber that<br>Dempsey produces is a<br>key product for pallet<br>operations and has<br>been in short supply as<br>larger mills produce<br>less of this type of<br>lumber.<br>PalletOne’s<br>investment in Dempsey<br>helps it secure and<br>grow a critical long<br>-<br>term supply source.<br>2021 Annual sales:<br>$69M<br>2021<br>-<br>2022 ACQUISITIONS<br>2021<br>2022<br>Page 13 of 36 |
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| 14<br>BUSINESS MODEL<br>A UNIQUE CULTURE BUILT FOR GOOD TIMES AND BAD<br>2022<br>Strong Balance<br>Sheet<br>Return<br>-<br>focused<br>approach to capital<br>allocation.<br>Capital reserves used<br>opportunistically.<br>Average<br>management team<br>tenure: 23 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<br>-<br>and<br>variable<br>-<br>priced<br>products hedges<br>volatile lumber prices.<br>Entrepreneurial<br>Focused<br>Stable<br>Prepared<br>Page 14 of 36 |
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| 15<br>UFP INDUSTRIES<br>BUSINESS SEGMENTS<br>2022<br>Page 15 of 36 |
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| 16<br>BUSINESS SEGMENTS<br>2022<br>2013<br>Value<br>-<br>added as a % of Net Sales<br>2013<br>$284m<br>19%<br>15%<br>$402m<br>$510m<br>19%<br>2019<br>2020<br>2021<br>Sales<br>% of Sales<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>58%<br>42%<br>46%<br>43%<br>57%<br>54%<br>Sunbelt<br>$774M<br>2021<br>DecKorators<br>$249M**<br>2021<br>UFP Edge<br>$545M***<br>2021<br>Prowood<br>$1,743M*<br>2021<br>*Includes $393M in Outdoor Essentials<br>**Comprised of 48% to Big Box customers and 52% to all other customers<br>***Includes $396M in Retail Building Materials<br>YTD Q2: $820M<br>YTD Q2: $527M<br>YTD Q2: $180M<br>YTD Q2: $93M<br>New Products & % of Net Sales<br>Page 16 of 36 |
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| 17<br>Deckorators.com<br>BUSINESS SEGMENTS<br>RETAIL SOLUTIONS<br>2022<br>ProWoodLumber.com<br>OutdoorEssentialProducts.com<br>UFPEdge.com<br>On<br>-<br>trend brands to all major building products retailers, while supporting customers with best<br>-<br>in<br>-<br>class in<br>-<br>store and e<br>-<br>commerce<br>support.<br>Outdoor lifestyle products<br>including wood and vinyl fencing,<br>landscape and garden dcor,<br>picnic tables, pergolas,<br>trellises and more.<br>Premium siding, pattern,<br>trim and accent<br>wall products.<br>Preserved lumber including<br>timbers, decking,<br>construction materials<br>and fire<br>-<br>treated.<br>The industry’s leading<br>innovator of composite<br>decking, railing and<br>accessories.<br>Page 17 of 36 |
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| 18<br>2022<br>2013<br>$69m<br>6%<br>New Products & % of Net Sales<br>8%<br>$73m<br>$177m<br>7%<br>2019<br>2020<br>2021<br>Sales<br>% of Sales<br>2013<br>35%<br>66%<br>34%<br>68%<br>32%<br>65%<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>Value<br>-<br>added as a % of Net Sales<br>Note: Lumber price appreciation more significantly impacts<br>commodity<br>-<br>based products compared to value<br>-<br>add products.<br>UFPindustial.com<br>Protective Packaging<br>Materials<br>$19M<br>2021<br>Structural Packaging<br>and OEM Components<br>$1.8B<br>2021<br>YTD Q2:<br>$1.1B<br>YTD Q2:<br>$23M<br>BUSINESS SEGMENTS<br>Machine<br>-<br>Built Pallets<br>$355M<br>2021<br>YTD Q2:<br>$209M<br>Page 18 of 36 |
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| 19<br>2022<br>BUSINESS SEGMENTS<br>INDUSTRIAL<br>Innovative packaging solutions and components backed by a global manufacturing footprint,<br>the industry’s leading engineering and design, and integrated service teams.<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<br>for mixed material crates and<br>specialty containers.<br>Hard cases, tracking technology,<br>logistics solutions and onsite<br>packaging services.<br>STRUCTURAL<br>PACKAGING<br>New and recycled pallets,<br>design, engineering<br>and testing.<br>MACHINE<br>-<br>BUILT<br>PALLETS<br>Precision<br>-<br>milled and value<br>-<br>added<br>processing in lumber, composites,<br>foam, metals, and panel goods.<br>Dunnage, bed foundations, cabinet,<br>shed, door, and window<br>components.<br>OEM<br>COMPONENTS<br>Page 19 of 36 |
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| 20<br>BUSINESS SEGMENTS<br>2022<br>2013<br>$60m<br>4%<br>5%<br>$54m<br>$136m<br>3%<br>2019<br>2020<br>2021<br>Sales<br>% of Sales<br>2013<br>24%<br>81%<br>19%<br>73%<br>27%<br>76%<br>Commodity<br>Value<br>-<br>added<br>2019<br>2020<br>2021<br>Value<br>-<br>added as a % of Net Sales<br>Factory<br>-<br>Built<br>$1.1B<br>2021<br>Commercial<br>$259M<br>2021<br>Concrete Forming<br>$150M<br>2021<br>Site<br>-<br>Built<br>$1.2B*<br>2021<br>YTD Q2:<br>$723M<br>YTD Q2:<br>$732M<br>YTD Q2:<br>$164M<br>YTD Q2:<br>$142M<br>New Products & % of Net Sales<br>*Comprised of 65% for single<br>-<br>family homes and 35% for multi<br>-<br>family homes<br>Page 20 of 36 |
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| 21<br>Roof trusses, wall panels, floor<br>systems, doors and framing<br>services for residential and light<br>commercial builders. Sales are<br>65% single family, 35%<br>multifamily.<br>2022<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>BUSINESS SEGMENTS<br>CONSTRUCTION<br>SITE<br>-<br>BUILT<br>FACTORY<br>-<br>BUILT<br>UFPConstruction.com<br>IDXCorporation.com<br>Single<br>-<br>source provider of building components, concrete forms, framing, exterior and interior finishing programs<br>designed to make building processes run at maximum efficiency.<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>Custom radius forms, wall<br>and column forms, gang<br>systems, lumber and panels<br>for construction and<br>infrastructure.<br>CONCRETE FORMING<br>Page 21 of 36 |
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| 22<br>Trades lumber, packaging and building materials in 65 countries to supply local and multinational<br>customers across major markets. Global industrial packaging solutions provider with<br>manufacturing and distribution facilities in Canada, Mexico, Italy, Australia and India.<br>BUSINESS SEGMENTS<br>2022<br>2021 Sales:<br>$339 million<br>YTD Q2:<br>$209 million<br>Page 22 of 36 |
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| 23<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>and service to<br>our customers<br>Maintain<br>inclusive, safe<br>working<br>environments<br>Attract<br>and retain<br>diverse<br>top<br>-<br>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>BUSINESS MODEL<br>Page 23 of 36 |
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| 24<br>2022<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<br>here<br>..<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<br>–<br>fewer committees, higher standards,<br>and increased financial and social reward for<br>employees, customers and communities.<br>BUSINESS MODEL<br>Page 24 of 36 |
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| 25<br>FINANCIALS |
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| 26<br>MANAGING LUMBER MARKET RISK TO<br>EARN A STABLE PROFIT PER UNIT<br>2022<br>Level of lumber prices does<br>not drive profitability<br>Lumber Market (in $/MBF)*<br>2021<br>2020<br>2022<br>2019<br>*Average weekly random lengths framing lumber composite price.<br>Lumber Market<br>Sequential trends<br>impact profit per unit<br>Balanced mix of variable and<br>fixed<br>-<br>price products mitigate risk<br>Adjusted EBITA Margin<br>Lumber Market Volatility*<br>4.2%<br>34.5%<br>39.9%<br>21.7%<br>7.2%<br>8.4%<br>9.7%<br>11.3%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>50%<br>55%<br>60%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>50%<br>55%<br>60%<br>2019<br>2020<br>2021<br>2022 YTD<br>Lumber Market Volatility<br>Adjusted EBITDA Margin<br>*Standard deviation of lumber prices divided by average weekly price.<br>1112<br>1225<br>1321<br>1051<br>948<br>670<br>890<br>954<br>1035<br>1080<br>1428<br>1344<br>690<br>443<br>412<br>520<br>585<br>746<br>377<br>402<br>420<br>358<br>394<br>455<br>530<br>716<br>934<br>826<br>571<br>643<br>331<br>370<br>365<br>354<br>346<br>329<br>356<br>346<br>364<br>360<br>373<br>371<br> $300<br> $400<br> $500<br> $600<br> $700<br> $800<br> $900<br> $1,000<br> $1,100<br> $1,200<br> $1,300<br> $1,400<br> $1,500<br>Jan<br>Feb<br>Mar<br>Apr<br>May<br>Jun<br>Jul<br>Aug<br>Sep<br>Oct<br>Nov<br>Dec<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Page 26 of 36 |
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| 27<br>FINANCIALS<br>2022<br>NET SALES<br>(in millions)<br>Long<br>-<br>Term Goal: Unit sales growth of 5% to 7%, including small acquisitions<br>Net Sales<br>Percent Change<br>$4,489<br>$4,416<br>$5,154<br>$8,636<br>6%<br>6%<br>6%<br>28%<br>3%<br>5%<br>5%<br>4%<br>0%<br>10%<br>20%<br>30%<br>40%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br>Organic Unit<br>Sales Growth<br>Total Unit<br>Sales Growth<br>Net Sales<br>2018<br>2019<br>2020<br>2021<br>UFP Consolidated<br>Net Sales<br>Percent Change<br>$1,051<br>$1,086<br>$1,072<br>$2,148<br>10%<br>4%<br>(6)%<br>40%<br>5%<br>(2)%<br>(8)%<br>5%<br>-10%<br>5%<br>20%<br>35%<br>50%<br>65%<br> $-<br> $500<br> $1,000<br> $1,500<br> $2,000<br> $2,500<br>2018<br>2019<br>2020<br>2021<br>UFP Industrial<br>Net Sales<br>Percent Change<br>$1,512<br>$1,499<br>$2,167<br>$3,418<br>4%<br>10%<br>25%<br>31%<br>2%<br>10%<br>24%<br>(4)%<br>-5%<br>10%<br>25%<br>40%<br>55%<br> $-<br> $1,000<br> $2,000<br> $3,000<br> $4,000<br>2018<br>2019<br>2020<br>2021<br>UFP Retail Solutions<br>Net Sales<br>Percent Change<br>$1,705<br>$1,637<br>$1,696<br>$2,698<br>7%<br>6%<br>(6)%<br>17%<br>6%<br>6%<br>(7)%<br>14%<br>-10%<br>0%<br>10%<br>20%<br>30%<br> $-<br> $750<br> $1,500<br> $2,250<br> $3,000<br>2018<br>2019<br>2020<br>2021<br>UFP Construction<br>Page 27 of 36 |
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| 28<br>UFP Consolidated<br>UFP Industrial<br>UFP Retail Solutions<br>UFP Construction<br>FINANCIALS<br>ADJUSTED EBITDA<br>(in millions)<br>2022<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>Adjusted EBITDA Margin<br>Adjusted EBITDA<br>$266<br>$317<br>$431<br>$835<br>5.9%<br>7.2%<br>8.4%<br>9.7%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br> $-<br> $200<br> $400<br> $600<br> $800<br> $1,000<br>2018<br>2019<br>2020<br>2021<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>$75<br>$101<br>$100<br>$304<br>7.1%<br>9.3%<br>9.3%<br>14.1%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>18.0%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br> $300<br> $350<br>2018<br>2019<br>2020<br>2021<br>Adjusted EBITDA<br>Adjusted EBITDA Margin<br>$63<br>$75<br>$170<br>$147<br>4.2%<br>5.0%<br>7.8%<br>4.3%<br>3.0%<br>4.0%<br>5.0%<br>6.0%<br>7.0%<br>8.0%<br>9.0%<br> $-<br> $40<br> $80<br> $120<br> $160<br> $200<br>2018<br>2019<br>2020<br>2021<br>Adjusted EBITDA<br>(in millions)<br>Adjusted EBITDA Margin<br>$85<br>$96<br>$98<br>$283<br>5.0%<br>5.9%<br>5.8%<br>10.5%<br>3.0%<br>5.0%<br>7.0%<br>9.0%<br>11.0%<br>13.0%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br> $300<br>2018<br>2019<br>2020<br>2021<br>Long<br>-<br>Term Goal: Achieve and sustain a 10% adjusted EBITDA margin.<br>Page 28 of 36 |
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| 29<br>UFP Consolidated<br>UFP Industrial<br>UFP Retail Solutions<br>FINANCIALS<br>ADJUSTED EBITDA GROWTH AND UNIT SALES<br>2022<br>Percent Growth<br>6%<br>6%<br>28%<br>19%<br>36%<br>94%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>2019<br>2020<br>2021<br>Unit Sales Growth<br>Adjusted EBITDA Growth<br>Long<br>-<br>Term Goal: Achieve Adjusted EBITDA growth exceeding unit sales growth.<br>UFP Construction<br>Percent Growth<br>4%<br>(6)%<br>40%<br>34%<br>(1)%<br>204%<br>-20%<br>20%<br>60%<br>100%<br>140%<br>180%<br>220%<br>2019<br>2020<br>2021<br>Percent Growth<br>10%<br>25%<br>31%<br>18%<br>127%<br>(13)%<br>-40%<br>10%<br>60%<br>110%<br>160%<br>2019<br>2020<br>2021<br>Percent Growth<br>6%<br>(6)%<br>17%<br>14%<br>2%<br>189%<br>-20%<br>30%<br>80%<br>130%<br>180%<br>2019<br>2020<br>2021<br>Page 29 of 36 |
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| 30<br>FINANCIALS<br>RETURN ON INVESTED CAPITAL<br>2022<br>Hurdle Rate = 12%<br>WACC = 10%<br>Percent<br>13.2%<br>14.0%<br>15.1%<br>21.0%<br>32.2%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>2017<br>2018<br>2019<br>2020<br>2021<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Long<br>-<br>Term Goal: Earn an incremental return on new investment over our WACC<br>Page 30 of 36 |
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| 31<br>FINANCIALS<br>CASH CYCLE<br>2022<br>Cash Cycle = Days Receivables Outstanding + Days Supply of Inventory<br>–<br>Days Payables Outstanding<br>Days<br>52.4<br>54.1<br>55.7<br>48.1<br>56.8<br>0<br>10<br>20<br>30<br>40<br>50<br>60<br>70<br>2017<br>2018<br>2019<br>2020<br>2021<br>Page 31 of 36 |
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| 32<br>FINANCIALS<br>CAPITAL STRUCTURE<br>2022<br>Percent<br>Net Debt to Total Capitalization<br>vs Maximum Target<br>Net Debt to Adjusted EBITDA<br>vs Maximum Target<br>11.8%<br>11.5%<br>12.4%<br>0.0%<br>10.2%<br>12.8%<br>15.7%<br>0.0%<br>0.0%<br>2.5%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>45%<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>1.10<br>0.80<br>0.72<br>-<br>0.46<br>0.60<br>0.80<br>-<br>-<br>0.06<br>0.0<br>0.5<br>1.0<br>1.5<br>2.0<br>2.5<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Max target<br>Net Debt to Total Capital<br>Net Debt to TTM Adjusted EBITDA<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Page 32 of 36 |
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| 33<br>BALANCED USE OF FREE CASH FLOW<br>2022<br>Acquisitions to contribute<br>half of our total annual<br>unit sales growth<br>CapEx<br>plan of $175M to<br>$225M in 2022<br>Opportunistic share repurchases<br>to offset issuances<br>Increasing dividends<br>$349<br>$336<br>$512<br>$25<br>$31<br>$40<br>$29<br>$85<br>$89<br>$151<br>$39<br>$65<br>$476<br>Acquisitions<br>Capex<br>Share Buyback<br>Dividends<br>OCF<br>2019<br>2020<br>2021<br>Operating Cash Flow and Capital Allocation<br>(in millions)<br>Page 33 of 36 |
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| 34<br>FINANCIALS<br>2022<br>NET SALES<br>Q2 2022<br>(in millions)<br>$2,094<br>$2,017<br>$2,489<br>$2,901<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Consolidated<br>Organic Unit Sales<br>YOY Growth<br>Total Unit Sales<br>YOY Growth<br>Net Sales<br>$<br>696<br>$<br>704<br>$<br>993<br>$<br>1,121<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Retail Solutions<br>$573<br>$515<br>$611<br>$676<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Industrial<br>$723<br>$677<br>$787<br>$975<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Construction<br>13<br>%<br>25<br>%<br>10<br>%<br>3<br>%<br>(3)%<br>5<br>%<br>3<br>%<br>2<br>%<br>(1)%<br>36<br>%<br>12<br>%<br>(6)%<br>(19)%<br>2<br>%<br>(2)%<br>(7)%<br>34<br>%<br>25<br>%<br>(3)%<br>0<br>%<br>0<br>%<br>(4)%<br>(4)%<br>(1)%<br>19<br>%<br>15<br>%<br>15<br>%<br>17<br>%<br>16<br>%<br>13<br>%<br>14<br>%<br>17<br>%<br>Page 34 of 36 |
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| 35<br>FINANCIALS<br>2022<br>ADJUSTED EBITDA<br>Q2 2022<br>(in millions)<br>$2.9<br>$2.0<br>$2.1<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Consolidated<br>$292<br>$223<br>$187<br>$319<br>Non<br>-<br>GAAP Financial Information:<br>Please click<br>here<br>for reconciliation to related GAAP measurement.<br>Adjusted EBITDA Margin<br>Adjusted EBITDA<br>$2.9<br>$2.0<br>$2.1<br>$(21)<br>$43<br>$78<br>$31<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Retail Solutions<br>$2.9<br>$2.0<br>$2.1<br>$82<br>$87<br>$92<br>$105<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Industrial<br>$2.9<br>$2.0<br>$2.1<br>$88<br>$85<br>$85<br>$138<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>UFP Construction<br>9.0<br>%<br>11.1<br>%<br>11.7<br>%<br>11.0<br>%<br>(3.0)<br>%<br>6.1<br>%<br>7.9<br>%<br>2.8<br>%<br>14.3<br>%<br>16.9<br>%<br>15.1<br>%<br>15.5<br>%<br>12.2<br>%<br>12.5<br>%<br>10.8<br>%<br>14.2<br>%<br>Page 35 of 36 |
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| 36<br>2801 E. Beltline Ave. NE<br>Grand Rapids, MI 49506<br>(800)598<br>-<br>9663<br>-<br>UFPI.com<br>THANK YOU. |
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