Azek Investor Presentation Deck
DISCIPLINED APPROACH TO CAPITAL DEPLOYMENT
STRONG CASH FLOWS AND MODEST LEVERAGE PROVIDE FLEXIBILITY TO SUPPORT ORGANIC GROWTH AND STRATEGIC M&A
CAPITAL ALLOCATION PRIORITIES
o Invest to support the business
o Organic growth, operational and recycling investments
o Strategic M&A
o Product adjacencies, new technologies / manufacturing capabilities,
vertical integration, leverage material science expertise
o Debt repayment
o Target net leverage in the ~2.5x Adj. EBITDA range
NET LEVERAGE SUMMARY - LTM 6/30/21
($ in millions)
Cash and Cash Equivalents
Revolving Credit Facility
First Lien Term Loan
Total Debt
Net Debt
LTM Q3 20 21 Adj. EBITDA
Total Leverage
Net Leverage
$220
468
$468
247
$259
1.8x
1.0 x
THE AZEK
COMPANY
STRATEGIC CAPACITY INVESTMENTS
O Multi-phase capacity expansion program across Residential segment that is
modular, flexible and supportive of long-term margin objectives
O
O
Phase I &Phase II complete, adding cumulatively 40% new capacity across
Wilmington, OH and Scranton, PA facilities
Previously announced upsized program by ~$50M - $60M for the remainder
of fiscal 2021 expected to add an incremental 15% decking capacity and
expand our recycling capacity in early 2022
New facility announced in Boise, ID; expected to be online in '22; adds 30%
more decking capacity (Phase III)
Once complete, program
expected to yield ~85%
incremental Decking
production as well as
increases in Railing,
Exteriors and recycling
capacity in fiscal 2022
las
Example New Production Lines - Wilmington, OH
Source: Company financials. Note: Refer to Appendix for reconciliations for total debt, net debt and net leverage.
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