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.
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