Beacon Roofing Supply : Q3'23 Quarterly Investor Slides

BEACON

Investor Presentation

December 2023

Disclosure Notice

This presentation contains information about management's view of the Company's future expectations, plans and prospects that constitute forward- looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate," "estimate," "expect," "believe," "will likely result," "outlook," "project," "targets" and other words and expressions of similar meaning. Investors are cautioned not to place undue reliance on forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of the Company's Form 10-K for the fiscal year ended December 31, 2022 and subsequent filings with the U.S. Securities and Exchange Commission. The Company may not succeed in addressing these and other risks. Consequently, all forward-looking statements in this presentation are qualified by the factors, risks and uncertainties contained therein. In addition, the forward-looking statements included in this presentation represent the Company's views as of the date of this presentation and these views could change. However, while the Company may elect to update these forward- looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this presentation.

This presentation contains references to certain financial measures that are not presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Expense, Adjusted Operating Expense margin, Free Cash Flow, Free Cash Flow Conversion and Net Debt Leverage. The Company uses non-GAAP financial measures to evaluate financial performance, analyze underlying business trends and establish operational goals and forecasts that are used when allocating resources. The Company believes these non-GAAP financial measures permit investors to better understand changes over comparative periods by providing financial results that are unaffected by certain items that are not indicative of ongoing operating performance. While the Company believes these measures are useful to investors when evaluating performance, they are not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. The Company's non-GAAP financial measures should not be considered in isolation or as a substitute for other financial performance measures presented in accordance with GAAP. These non-GAAP financial measures may have material limitations including, but not limited to, the exclusion of certain costs without a corresponding reduction of net income for the income generated by the assets to which the excluded costs relate. In addition, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.

Unless otherwise specifically noted, references in this presentation to years refer to calendar years and, accordingly, historical financial information has been recast on a calendar year basis. Unless otherwise specifically noted, financial information contained in this presentation reflects continuing operations only.

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Our North America Footprint

~100,000

Customers

517	~7,500
Branch locations	Team members
50	6
US States	Canadian Provinces

National scale | Broad geographic reach | Diverse customer channels

$8.8 billion

TTM Net Sales

$892 million

TTM Adj. EBITDA

10.1%

TTM Adj. EBITDA margin

Note: Figures and map as of September 30, 2023

Revitalized Leadership Team	>75%
O F E X E C U T I V E

C O M M I T T E E S I N C E

A P P O I N T E D 2 0 1 9

Stuart Randle	Julian Francis	Frank Lonegro	Christine Reddy	Munroe Best	Brendan Daly	Birte von Schwarzenfeld
Chairman Elect	President & Chief Executive	Executive Vice President &	Executive Vice President,	President,	Executive Vice President,	Senior Vice President,
	Officer	Chief Financial Officer	General Counsel &	South Division	Operational Excellence	Commercial Solutions
			Corporate Secretary

Jake Gosa	Jason Taylor	Jonathan Bennett	Jennifer Lewis	Sean McDevitt	Chris Nelson	Martin S. Harrell
President,	President,	Executive Vice President &	Vice President of	Executive Vice President &	Executive Vice President &	President, Waterproofing
North Division	West Division	Chief Commercial Officer	Communications & Corporate	Chief Human	Chief Information Officer	Division
			Social Responsibility	Resources Officer

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Core Values & ESG Anchor Beacon's Ambition 2025

E S

ENVIRONMENTAL

Optimizing our footprint to achieve profitable, sustainable growth

SOCIAL

OUR CORE VALUES

G

Investing in our people to achieve the best business outcomes

GOVERNANCE

Doing the right thing, engaging with stakeholders to grow responsibly

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Note: From Beacon Investor Day - February 2022

Strategically Focused on Two Core Markets

Residential Roofing

Asphalt Shingles

Slate & Shake

Tile

Architectural Metals

Accessories

Siding

Gutters & Fascia

Commercial Roofing

Single-Ply Roofing

Modified Roofing

Roof Insulation

Custom Metals

Coatings

Specialty Fasteners,

Adhesives & Other

Accessories

Air & Vapor Barriers

Waterproofing

Windows & Doors

Roofing Products

6	Complementary Products Note: From Beacon Investor Day - February 2022

Favorable Macro & Market Fundamentals

Net Sales Mix*

21%

Residential Roofing

50% Commercial Roofing

Complementary

29%

End Market Mix

20%

Repair & Remodel

New Construction

80%

RESIDENTIAL CONSTRUCTION TRENDS**

Higher	Undersupply of	Favorable	Relatively
single-household	housing; aging	de-urbanization	low interest rates;
formation	housing stock	trends	favorable home
			equity values

COMMERCIAL CONSTRUCTION TRENDS**

Improving	Strong	Post-COVID	New building
commercial	warehouse	rebound	code standards
sentiment	development

7 * Full year net sales 2022; Commercial Roofing is reported as Non-Residential in financials statements.

7 ** Complementary line of business is ~75% Residential & 25% Commercial, impacted by the same trends. Note: Construction Trends From Beacon Investor Day - February 2022

Well Positioned in Large and Fragmented Market

ADDRESSABLE MARKETS

ROOFING AND COMPLEMENTARY PRODUCTS

DISTRIBUTION MARKET ~$54B*

Roofing	Commercial
~$10B*
~$30B		Residential
		~$20B*
	Residential		Complementary
		~$24B
	~$20B*	Commercial
		~$4B*

INDUSTRY STRUCTURE

ROOFING PRODUCTS DISTRIBUTION MARKET ~$30B*

Fragmented

~45% of Market**

Regional /
Local / Retail	Large National

Beacon

Consolidated

~55% of Market*

Beacon's position in a large addressable market provides multiple paths to growth

8	* Management's estimate of 2021 Addressable Markets
** Retail within fragmented portion is less than 10%	Note: From Beacon Investor Day - February 2022

Roofing Market Stability Through the Cycle

U.S. Asphalt Shingle Market*

180							173
160					154	161	18	155																151	159
		143	144	8											144			11	148
	136	7	21	8			135									136	139
140	3	2	28		129								133				18		13
3	27	35	120	122					15	13	12	29
		30			3	22	118				15
120			34				111		112					25		28
32									108			107						26

Drivers of Re-Roofing Demand

3%

2%

3%

Squares)								25	17	6	19	11	6		4		34	24
								6	30
100								23				24
of									21	28	31	34	30	23
						95
80					87
(Millions			81	86		77													91
		75
60	71					75										77	79	84	81
													74
							73						65	68
											58	60
	40								71	63	61	59

27%

40%

20	30	31	32	34	37	39	35	26	17				14	17	18	19	20	21	22	22	24	28	26
						11	11	11
0

New Construction

Remodeling

Weather Events

Major Storms

Residential roofing demand remains below prior cycle peaks

25%

Leaks		Old
Weather Damage		Deteriorating
Upgrade Appearance		Other

>90% of re-roofing demand

is non-discretionary

*All years shown are calendar Sources: Owens Corning, ARMA, 3M

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Strong Value Proposition to Both Customers & Suppliers

SUPPLIERS	BEACON
			Value to Suppliers		Value to Customers
		•	Coast to coast presence	•	Value-added capabilities
		•	Scale advantages	•	Order assembly, kitting
		•	Last mile logistics		and packaging
		•	Short cycle channel	•	Leading digital platform
			management	•	Highly knowledgeable
		•	Inventory partner		sales & support
				•	Customer credit

CUSTOMERS

~100,000

National, regional and

local contractors

across the U.S. and

Canada

Driving to be #1 choice for customers and suppliers

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