Our Mission & Vision Stephens Fall Investment Conference November 8, 2016
Cautionary Statement Regarding Forward-Looking Statements Our Mission & Vision This presentation includes statements concerning the Company’s expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, the Company’s forward-looking statements can be identified by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or other similar words. The Company has based its forward-looking statements on management’s beliefs and assumptions based on information available to management at the time the statements are made. The Company cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, the Company cannot assure you that actual results will not differ materially from those expressed or implied by its forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, these expectations and the related statements are subject to risks, uncertainties and other factors that could cause the actual results to differ materially from those projected. These risks, uncertainties and other factors include, but are not limited to: industry cyclicality and seasonality and adverse weather conditions; challenging economic conditions affecting the nonresidential construction industry; volatility in the U.S. economy and abroad, generally, and in the credit markets; substantial indebtedness and the Company’s ability to incur substantially more indebtedness; the Company’s ability to generate significant cash flow required to service or refinance its existing debt and obtain future financing; the Company’s ability to comply with the financial tests and covenants in its existing and future debt obligations; operational limitations or restrictions in connection with the Company’s debt; increases in interest rates; recognition of asset impairment charges; commodity price increases and/or limited availability of raw materials, including steel; the Company’s ability to make strategic acquisitions accretive to earnings; retention and replacement of key personnel; enforcement and obsolescence of intellectual property rights; fluctuations in customer demand; costs related to environmental clean-ups and liabilities; competitive activity and pricing pressure; increases in energy prices; volatility of the Company’s stock price; dilutive effect on the Company’s common stockholders of potential future sales of the Company’s common stock held by the selling stockholders; substantial governance and other rights held by the selling stockholders; breaches of the Company’s information system security measures and damage to its major information management systems; hazards that may cause personal injury or property damage, thereby subjecting the Company to liabilities and possible losses, which may not be covered by insurance; changes in laws or regulations, including the Dodd–Frank Act; the Company’s ability to integrate the acquisition of CENTRIA with its business and to realize the anticipated benefits of such acquisition; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and other matters; and timing and amount of the Company’s stock repurchases. See also the “Risk Factors” included in the Company’s annual report or 10-K for the fiscal year ended November 1, 2015, which identifies other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events or otherwise. This presentation contains non-GAAP financial information. The Company’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in the Company’s results and providing meaningful period-to-period comparisons. For additional information regarding these non-GAAP measures, including reconciliations to the most directly comparable financial measure calculated according to GAAP, see the Appendix to this presentation. 2
Our Mission & Vision 3 http://www.ncibuildingsystems.com/NCI-Advantage.html
NCI Building Systems at a Glance Our Mission & Vision Leading integrated manufacturer of building products for the low-rise nonresidential construction industry Three vertically integrated market segments • Metal Coil Coatings Metal Coil Coating • Metal Components • Engineered Building Systems Strong national and regional brands marketed through a broad network of builders and distributors Large end-markets provide broad customer diversification • Commercial and Industrial Metal Components • Institutional • Agricultural Diverse manufacturing footprint strategically located to serve key markets Headquartered in Houston, TX with ~ 5,300 employees globally Engineered Building Systems 4
Business Segments Key segments Metal Coil Coating Metal Components Engineered Building Systems Our Mission & Vision Cleaning, treating and painting flat Manufactures and distributes insulated Manufactures and distributes custom rolled metal coil substrates. metal panels (IMP), metal roof and wall engineered building systems for low rise systems, metal partitions, and metal doors. nonresidential markets. The segment is base-loaded with Focus internal demand, creating strong plant The IMP market is highly consolidated with Buildings are custom designed and utilization rates that provide production two key players in the U.S., and the rest of engineered to meet specific building flexibility and capture efficiencies. the Components segment is a highly codes and end-user requirements and are fragmented market. shipped ready for assembly. Key products Other Residential Residential Other Residential 1% Institutional Agricultural Commercial Commercial 3% 1% Agricultural 7% Agricultural 7% 15% 9% Industrial Industrial 9% 7% 13% 41% 18% 14% Industrial 49% End Markets (1) 15% 55% 18% 18% Institutional Institutional Commercial Other Revenue $101 million $815 million $648 million FY2015 (1) Source: Management estimates; internal order data as of June 2016 5
Our Mission & Vision The NCI Platform 6
Platform for profitable growth and value creation Our Mission & Vision 1 Structurally advantaged platform Taking market share in a fundamentally 2 attractive industry 3 Strategic insulated metal panel platform 4 Significantly improved business 5 Impressive financial momentum 6 Early innings of cyclical recovery 7
Structurally advantaged platform 1 Vertically integrated business model NCI is one of North America’s largest integrated manufacturers and marketers of Our Mission & Vision metal products for the nonresidential construction industry Third-party customers Metal Coil Coating Manufacturers of painted steel 51% products: EXTERNAL Metal buildings • Cleans, treats, coats and paints flat-rolled metal coil substrates Appliances Garage and entry doors • Slits and/or embosses coated coils Light fixtures HVAC Metal Components Small, medium and large 86% contractors EXTERNAL Specialty roofers • Pre-formed metal roof and wall systems Engineered building fabricators • Insulated metal panels (“IMP”) 49% Distributors/lumberyards INTERNAL End users Engineered Building 14% Systems (“Buildings”) INTERNAL Builder network • Custom engineered buildings General contractors • Self-storage mini-warehouses Developers Custom fabricators Note: Percentages based on fiscal year 2015 volume measured in tons. 8
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