Norcraft Companies Investor Presentation - SNL

Norcraft Companies Investor Presentation

August 2014

Disclaimer

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS:

The information contained in this presentation is for informational purposes only. Certain information contained in this presentation, particularly information regarding future economic performance, finances, and expectations and objectives of management constitutes forward-looking statements. Forwardlooking statements can be identified by the fact that they do not relate strictly to historical or current facts and generally contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates" or "anticipates" or similar expressions. Our forwardlooking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement.

Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. We do not undertake any responsibility to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. For a discussion of additional risks that you should consider before investing, you should review the "Risk Factors" section of the 10-K that we filed publicly with the Securities and Exchange Commission on March 31, 2014.

Financial Measures highlighted in this presentation may be non-GAAP financial measures such as Earnings Before Interest Expense, Income Tax, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA and Free Cash Flow. Comparable GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures are available in the Appendix to this presentation.

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Norcraft Overview

Leading kitchen / bathroom cabinetry manufacturer primarily focused on the dealer channel

? Leading cabinet maker in the North American dealer channel

? 5th largest overall

? Primarily focused on dealer channel (88% of net sales)

? National distribution capabilities and 6 manufacturing plants in North America

? Four divisions operate independently

? One integrated platform provides the ability to take advantage of the combined group's scale when appropriate

2013 Revenue by Channel

5% 7%

Dealers

Homebuilders

88%

Wholetailers

2013 Revenue by Division

7% 15%

28%

50%

Mid Continent StarMark UltraCraft Urban Effects

2013 End Market

37%

Home Repair & Remodeling

63%

New Residential

Construction

Source: Management

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Experienced & Aligned Management Team

Name

Mark BMuallrekr Buller LeighLGeiingtehr Ginter KurKt WuratnWninagnenringer JohnJoShwnedSewenedeen SimSoinmSoonloSmoolnomon Phil BuPllheril Buller

Years with Norcraft

10 16 8 15 18 10

Years in Industry

25

Position

Chairman and Chief Executive Officer

22

Chief Financial Officer

15

President, Mid Continent

29

President, StarMark

35

President, UltraCraft

18

General Manager, Urban Effects

Highlights

? Highly experienced management team led by CEO Mark Buller, who has spent more than 25 years in the cabinet industry

? The Buller family has been a leader (investing and managing) in the cabinet industry for over 40 years ? Significant ownership position of the Company post-IPO

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Culture and Track Record of Operational Excellence

Strategic initiatives have resulted in industry leading EBITDA margins and consistently taking market share during the downturn and the early stages of the recovery

Historical Sales Growth vs. Peers(1)

25.0% 15.0%

5.0% -5.0% -15.0% -25.0% -35.0%

-10.5% -11.5% 2007

-15.9% -20.2% 2008

-25.6% -26.4% 2009

6.4%

2.6% 5.7%

-12.5%

2010

2011

NCFT Peers

7.2% 5.6% 2012

17.6% 15.1%

13.1% 11.5%

2013

LTM 2Q 2014

Historical Adjusted EBITDA Margins vs. Peers(1) (2)

20.0% 15.0% 10.0%

5.0% 0.0%

18.2% 12.5%

15.4% 6.6%

14.6%

14.9%

13.7%

11.7%

2.5%

-0.9%

-0.9%

1.2%

12.5% 5.1%

13.0% 5.7%

-5.0%

2007

2008

2009

2010

2011

Source: Company filings.

(1)

Peers include cabinet segments or operations of publicly traded manufacturers

(2)

Please see Appendix for reconciliation of net income (loss) to Adjusted EBITDA

NCFT Peers

2012

2013

LTM 2Q 2014

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