Azek IPO Presentation Deck slide image

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 13
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