Ame r ic an Woodmar ks Ac quisition of RSI Home Pr oduc ts De - PowerPoint PPT Presentation

Ame r ic an Woodmar k’s Ac quisition of RSI Home Pr oduc ts De c e mbe r 1, 2017

F or war d L ooking State me nts T his c o mmunic a tio n c o nta ins c e rta in “fo rwa rd-lo o king sta te me nts” within the me a ning o f the Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995, inc luding sta te me nts a s to the a ntic ipa te d timing o f c o mple tio n o f the pro po se d tra nsa c tio n, e xpe c te d c o st syne rg ie s, future fina nc ia l a nd o pe ra ting re sults, a nd o the r e xpe c te d e ffe c ts o f the pro po se d tra nsa c tio n. T he se fo rwa rd- lo o king sta te me nts ma y b e ide ntifie d b y the use o f wo rds suc h a s “a ntic ipa te ,” “e stima te ,” “fo re c a st,” “e xpe c t,” “b e lie ve ,” “sho uld,” “c o uld,” “wo uld,” “pla n,” “ma y,” “ inte nd,” “pro spe c t,” “g o a l,” “will,” “pre dic t,” o r “po te ntia l” o r o the r simila r wo rds o r va ria tio ns the re o f. T he se sta te me nts a re b a se d o n the c urre nt b e lie fs a nd e xpe c ta tio ns o f the ma na g e me nt o f Ame ric a n Wo o dma rk a nd a re sub je c t to sig nific a nt risks a nd unc e rta intie s tha t c o uld c a use a c tua l o utc o me s a nd re sults to diffe r ma te ria lly fro m tho se e xpre sse d he re in. T he se risks a nd unc e rta intie s inc lude , b ut a re no t limite d to , the o c c urre nc e o f a ny e ve nt, c ha ng e o r o the r c irc umsta nc e s tha t c o uld g ive rise to the te rmina tio n o f the me rg e r a g re e me nt o r a de la y in the c o mple tio n o f the pro po se d tra nsa c tio n, a fa ilure b y e ithe r o r b o th pa rtie s to sa tisfy c o nditio ns to c lo sing , a fa ilure to o b ta in a ny re q uire d re g ula to ry o r third-pa rty a ppro va ls, inc luding a ny re q uire d a ntitrust a ppro va ls, the e ffe c t o f the a nno unc e me nt o f the pro po se d tra nsa c tio n o n the a b ility o f Ame ric a n Wo o dma rk a nd RSI to re ta in c usto me rs, ma inta in re la tio nships with the ir supplie rs a nd hire a nd re ta in ke y pe rso nne l, Ame ric a n Wo o dma rk’ s a b ility to suc c e ssfully inte g ra te RSI into its b usine ss a nd o pe ra tio ns, a nd the risk tha t the e c o no mic b e ne fits, c o sts sa ving s a nd o the r syne rg ie s a ntic ipa te d b y Ame ric a n Wo o dma rk a re no t fully re a lize d o r ta ke lo ng e r to re a lize tha n e xpe c te d. Additio na l risks a nd unc e rta intie s tha t c o uld impa c t Ame ric a n Wo o dma rk’ s future o pe ra tio ns a nd fina nc ia l re sults a re c o nta ine d in Ame ric a n Wo o dma rk’ s filing s with the Se c uritie s a nd E xc ha ng e Co mmissio n (“SE C”), inc luding in its Annua l Re po rt o n F o rm 10-K fo r the ye a r e nde d April 30, 2017 unde r the he a ding “Risk F a c to rs” a nd its mo st re c e nt Qua rte rly Re po rt o n F o rm 10-Q fo r the pe rio d e nde d July 31, 2017 unde r the he a ding “Ma na g e me nt’ s Disc ussio n a nd Ana lysis o f F ina nc ia l Co nditio n a nd Re sults o f Ope ra tio ns – F o rwa rd L o o king Sta te me nts.” T he se re po rts, a s we ll a s the o the r do c ume nts file d b y Ame ric a n Wo o dma rk with the SE C, a re a va ila b le fre e o f c ha rg e a t the SE C’ s we b site a t www.se c .g o v. E stimate d F inanc ial Infor mation T his pre se nta tio n inc lud e s c e rta in e stima te d fina nc ia l info rma tio n, inc luding , b ut no t limite d to , CY 2017 Ad j. EBI T DA Ma rg in, C Y 2017 Re ve nue a nd CY 2017 Ad j. E BI T DA. T his info rma tio n, whic h inc o rpo ra te s a c tua l, una ud ite d fina nc ia l re sults thro ug h Oc to b e r 31, 2017, in the c a se o f Ame ric a n Wo o dma rk, a nd Se p te mb e r 30, 2017, in the c a se o f RSI , re pre se nts e stima te s b y b o th RSI's ma na g e me nt a nd Ame ric a n Wo o d ma rk's ma na g e me nt a s o f the d a te o f this re le a se o nly. T he se e stima te s (i) a re b a se d up o n a numb e r o f assumptions and estimates that ar e inher entl y subjec t to business, e c o no mic and c ompetitive unc er tainties and c o ntingenc ies, many o f whic h a re b e yo nd o ur c o ntro l, (ii) a re b a se d upo n c e rta in sp e c ific a ssumptio ns with re spe c t to future b usine ss d e c isio ns, so me o f whic h will c ha ng e , a nd (iii) a re ne c e ssa rily spe c ula tive in na ture . So me o r a ll o f the a ssumptio ns a nd e stima te s utilize d ma y no t ma te ria lize o r ma y va ry sig nific a ntly fro m a c tua l re sults. As a re sult, inve sto rs a re urg e d to put the e stima te d numb e rs p ro vid e d in c o nte xt a nd no t to p la c e undue re lia nc e o n the m. 2

T oday’s Pr e se nte r s Car y Dunston – Chair man and Chie f E xe c utive Offic e r Sc ott Culbr e th – Sr . Vic e Pr e side nt and Chie f F inanc ial Offic e r 3

Cabine tr y Mar ke t is L ar ge and Gr owing U.S. Cabinet Industr y Pr oduc t Se gme nt Br e akdown Custo m Ba th 12% 13% ($ in billio ns) I n-Sto c k 9% Se mi- Custo m 25% $17.3 Sto c k Sto c k Plus 28% 13% $12.7 Mar ke t E nd- Use Br e akdown Ne w Re pa ir & Co nstruc tio n Re mo de l 37% 63% 2014 2019  Ho using marke t still re c o ve ring with c o ntinue d re le a se  Sing le a nd multi-fa mily ho using b uilt during 1996 to 2006 o f p e nt-up d e ma nd d riving future g ro wth are e nte ring a re mo de l pe rio d  De fe rre d R&R spe nding fro m the re c e ssio n b e g inning to  Co ntinue d c re dit availab ility, impro ving jo b marke t and b e re le a se d re c o ve ring ho me pric e s drive c o nsume rc o nfide nc e , and  Ma rke t e xp e c te d to g ro w to 1.5 millio n starts a nd 5% to ho me impro ve me nt spe nding 6% annual R&R g ro wth b y 2018 Combination of Ame r ic an Woodmar k and R SI is we ll-positione d in an attr ac tive industr y 4 So urc e : F re e do nia a nd ma na g e me nt e stima te s.

AWC E xpansion Str ate gy Pric e Custo m Se mi-Custo m Sto c k Plus AWC’ s Curre nt Po sitio n Sto c k n Sto c k I Co nte nt & Pla tfo rm Co mple xity Combination of Ame r ic an Woodmar k and R SI aligns with c ommunic ate d str ate gy 5

T r ansac tion Ove r vie w  Implie d tra nsa c tio n va lue o f $1.075 billio n funde d with: – Ap pro xima te ly $346 millio n in ne t c a sh to b e paid to RSI sha re ho lde rs – $140 millio n in Ame ric a n Wo o d ma rk c o mmo n sto c k to b e issue d to RSI sha re ho lde rs – Ap pro xima te ly $589 millio n o f RSI de b t to b e a ssume d b y Ame ric a n Wo o d ma rk  Ame ric a n Wo o dma rk e xpe c ts to fund the c a sh pa yme nt a nd tra nsa c tio n fe e s a nd e xpe nse s with c a sh o n the b a la nc e she e t Conside ra tion a nd a ne w te rm lo a n a g re e me nt with We lls Fa rg o Ba nk, Na tio na l Asso c ia tio n. Ame ric a n Wo o d ma rk a lso e xpe c ts to e nte r into a ne w $100 millio n re vo lving c re dit fac ility with We lls F a rg o Ba nk, Na tio na l Asso c ia tio n to re pla c e its e xisting c re dit fa c ility in c o nne c tio n with the tra nsa c tio n a nd, if ne c e ssa ry, ma y dra w o n suc h fa c ility fo r a ny re ma ining c a sh pa yme nts fo r the tra nsa c tio n.  RSI sha re ho lde rs will o wn a ppro xima te ly 8% o f Ame ric a n Wo o d ma rk dilute d sha re s o utsta nding fo llo wing the transa c tio n  Bro a de r re ve nue o ppo rtunitie s with a n e xpa nde d pro duc t line a nd e nha nc e d ma nufa c turing c a pa b ilitie s  Imme dia te ly a c c re tive to Ame ric a n Wo o d ma rk’ s pro fit ma rg ins a nd E PS, e xc luding a ntic ipa te d syne rg ie s F ina nc ia l  Antic ipa te d a nnua l run-ra te syne rg ie s o f $30 – $40 millio n, pha se d in o ve r 3 ye a rs Be ne fits  Ad ditio na l upside po te ntia l fro m sa le s a nd ma rke ting , purc ha sing a nd sha ring o f ma nufa c turing b e st pra c tic e s  E nha nc e d c a sh flo w g e ne ra tio n  E DA ra tio o f a ppro xima te ly 3.0x (2) fo llo wing tra nsa c tio n xpe c te d ne t de b t to a dj. EBIT  Co mb ine d Co mpa ny is e xpe c te d to g e ne ra te sig nific ant c a sh flo w tha t will fa c ilita te ra pid de b t re duc tio n L e ve ra g e Profile – E xpe c te d to re duc e ne t de b t to a dj. E BIT DA ra tio to ne a r 1.5x b y the e nd o f c a le nda r ye a r 2019 inc luding impa c t o f a ntic ipa te d syne rg ie s.  Co mb ine d c o mpa ny will b e ma na g e d b y Ame ric a n Wo o d ma rk’ s ma na g e me nt te a m (le d b y Pre side nt, CE O a nd Cha irma n Org a niza tiona l Ca ry Dunsto n) Struc ture  RSI will o pe ra te a s a sub sidia ry o f Ame ric a n Wo o d ma rk fo llo wing the tra nsac tio n  E xpe c te d to c lo se in Ame ric a n Wo o d ma rk’ s fisc a l qua rte r tha t e nds Ja nua ry 31 st , 2018, sub je c t to a ntitrust re g ula to ry re vie w Closing a nd a ppro va l a nd o the r c usto ma ry c lo sing c o nditio ns _____________________ (1) Based on average closing price for the 5 trading days prior to the signing date. (2) Represents unaudited financial estimate; EBITDA exclusive of anticipated synergies. 6

RSI Home Produc ts Inc . A Pr ove n Mar ke t L e ade r Within T he In-Stoc k and Value -Base d Cabine tr y Mar ke t 7