Azek Investor Presentation Deck slide image

Azek Investor Presentation Deck

LARGE, HIGH GROWTH ~$9B CORE MARKET BENEFITING FROM MATERIAL CONVERSION AZEK MATERIAL TYPES EXPECTED TO GROW AT AN ~11% CAGR FROM 2020 TO 2023E (OR ~1.7X MARKET) EXTERIOR TRIM $2.3B Market PVC 12% Wood 42% O +59% Conversion Opportunity Wood 67% Other 46% Composite & Aluminum 16% RAIL $2.6B Market Other 17% +67% Conversion Opportunity THE AZEK COMPANY Market Growth Driven Primarily by Material Conversion EARLY INNINGS OF LONG-TERM MATERIAL CONVERSION TREND Composite Decking Gaining Share (% of total market linear feet) DECKING $4.1B Market Other Wood 65% 17.8% 2017 +77% Conversion Opportunity ~56mm installed decks³ in the U.S., many of which are wood and nearly half of them are beyond their useful life.(4) 18.6% Composite 22% 2018 20.1% Other 1% 2019 Premium Wood 12% 21.6% 2020 EXPECTED MARKET GROWTH DECKING ('20-'23E L-F) Decking Market: 8% CAGR AZEK Material Types: 12% CAGR 1 EXTERIOR TRIM - (20-'23E L-F) Exterior Trim Market: 5% CAGR 1 AZEK Material Types: 9% CAGR RAILING ('20 - '23E L-F) Rail Market: 8% CAGR AZEK Material Types: 13% CAGR ¹ - Source: Principia Demand Builder Briefs July 2021; 2020 market size and '20- '23E linear feet projections. Principia's Trim market definition excludes broader applications such as tongue and groove profiles, sheets, thresholds and column wraps. Note: Material share %'s are based on volume demanded in billions of linear feet. Decking, Rail and Trim conversion opportunity is based on volume demanded for wood solutions in billions of linear feet. Trim conversion opportunity also includes engineered wood (~17% of total trim market). Other includes (A) hollow vinyl, plastic lumber and metal for decking, (B) iron, stainless steel, hollow vinyl and other plastic for railing and (C) engineered wood, fiber cement, vinyl, other polymer composite and other for trim. 1. AZEK material types for decking category includes composite and PVC decking, rail category includes composite and aluminum rail, and exterior trim category includes PVC trim. 2. Includes premium hardwoods, cedar and redwood. 3. Principia estimates. 4. North America Deck & Rail Association (NADRA) estimates as of 2019. 21
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