Azek IPO Presentation Deck
Resilient Business Model and COVID-19 Response
Our highly resilient business model positions us well in the current market environment and has enhanced our ability
to take swift action in response to the COVID-19 pandemic
BUSINESS MODEL RESILIENCE
3
Very strong momentum coming into the
current slowdown with increasing
conversion and strong housing market
There are approximately 57 million
installed decks ( in the U.S., many of
which are wood and nearly half of them
are beyond their useful life
Outdoor construction has remained
relatively resilient given ability for
contractors to social distance effectively
From 2007 to 2009, our net sales declined
15%, while cash flows from operations
remained positive and increased over the
period
Highly flexible cost structure that can
rapidly be adjusted with volume; lower
raw material input costs drove stable
profitability performance (~70% of
costs are raw material)
Source: Company information and management estimates
1. Principa estimates.
2.
North America Deck & Rail Association estimates
THE AZEK
COMPANY
COVID-19 ACTIONS & RESPONSE
Phase I: Immediate Safety and Liquidity Actions
✓ Implemented health and safety measures for our team members before
shutdowns
Drew maximum amount of availability under our Revolving Credit Facility to
enhance cash position
Deferred non-essential capital expenditures and conserved working capital
Phase II: Aligned Business for Potential Volatility
"10% YoY cost reduction target in 2H20 with a focus on Vycom and less
productive resources, including headcount and compensation, marketing and
travel
Executed fixed, variable and overhead cost reductions at our factories, while
maintaining flexibility for growth
✓Engaged with distribution partners on expected demand and inventory
planning
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