Trex : Investor Presentation - Q1 2024

SEEING MORE

I N V E S T O R P R E S E N T A T I O N | AS O F Q1 2 0 2 4

N Y S E : T R E X

AT TREX, EVEN OUR

PRESENTATION DECKS SAVE TREES.

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SAFE HARBOR / NON-GAAP MEASURES

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting the Company's business, please refer to our most recent annual and quarterly reports filed with the U.S. Securities and Exchange Commission. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation refers to certain financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP), including adjusted net sales, adjusted gross margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted operating income, adjusted diluted earnings per share (EPS), free cash flow, and net debt. We believe that the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. The non-GAAP measures included in this presentation are not meant to be considered superior to or a substitute for our GAAP results. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are available in the appendix to this presentation.

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V I S I O N

Seeing more

possibility in outdoor living,

inspiring us to maximize the positive impact we make across our communities, stakeholders, team members and world.

P R O M I S E

Trex®. Engineering

what's NEXT in outdoor living®.

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$10.8

BILLION VALUED*

Market cap supported by brand, distribution, low-cost leadership, and product breadth

#1 in trust, consumer awareness, consumer search, traffic, social media, sales, and market share

Strongest and broadest product offering makes it easy for any consumer to make the Trex decision

At a glance

5+

B I L LIO N LBS OF

PLASTIC FILM

RECYCLED SINCE

INCEPTION

*MARKET CAP AS OF 3/31/2024

One of largest polyethylene film recyclers in North America

Creating durable decking made of 95% reclaimed and recycled materials

Total energy use (including electricity, natural gas and fuels) decreased 3% from 2021 to 2022

Not a single tree has been felled in the manufacturing of a Trex board

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What we're seeing

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S E E I N G M O R E

S E E I N G M O R E

S E E I N G M O R E

S E E I N G M O R E

P O S S I B I L I T Y

>

V A L U E

>

G R O W T H

>

I M P A C T

The way we design the spaces

An eye on the next horizon.

Because outperforming in

An organizational pursuit

where we live our lives is

With a focus on now.

outdoor living is about building

of worth. In our numbers and

changing.

for today. And tomorrow.

in our world.

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01 S E E I N G M O R E P O S S I B I L I T Y

T H E W A Y W E D E S I G N T H E S P A C E S

W H E R E W E L I V E O U R L I V E S I S C H A N G I N G .

S E E I N G M O R E P O S S I B I L I T Y

Most histories look back. This one keeps looking ahead to the needs of the business.

Trex invents composite decking and embarks on a journey to lead what will ultimately become the Outdoor Living category.

ORIGIN

2000

Trex transforms the top of the

market with the launch of Trex Transcend®.

2010

Trex introduces plan for new state-of- the- art facility in Little Rock, surpasses

$1 billion in sales.

2021

Trex pioneers a multi-channel distribution strategy that continues to differentiate the Brand today.

2019

Trex expands the entry point into the Brand with the launch of Trex Enhance ®.

2018

Trex preemptively positions to meet domestic and global demand with significant capital allocation to existing facilities.

2022

Designed to "keep heat out and the warmth of a lifetime of memories in," Trex launches Transcend® Lineage decking, building on the proven success of the Transcend® line and with the backing of a 50-year warranty.

Trex again redefines the top of the market with the successful test and launch of Trex Signature® decking and cladding and is also named "America's Most Trusted Outdoor Decking Brand."

2023

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Trex is the world's largest manufacturer of high-performance,

low-maintenance and eco-friendlywood-alternative decking. With over

30 years of product experience and more than 6,700 retail locations worldwide,

Trex outpaces category growth.

T R E X

R E S I D E N T I A L

O U T D O O R

L IV ING

R E P AI R &

R E M O D E L I N G

71% 102% 140%

Growth 2015-2022 (E)

Growth 2015-2022 (E)

Growth 2015-2022

• Sources: Joint Center for Housing Studies of Harvard University, 2022

S E E I N G M O R E P O S S I B I L I T Y

Category leader with significant upside growth.

~ $ 75B

U.S. OUTDOOR LIVING

8CATEGORY

$ B

U.S. DECKING & RAILING

CATEGORY

~ $ 2B

U.S. COMPOSITE

DECKING & RAILING

12%

TREX MARKET SHARE*

MARKET OPPORTUNITY

• Source: Principia, 2022

*of the $8B U.S. Decking & Railing Category

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S E E I N G M O R E P O S S I B I L I T Y

Uniquely poised to meet shifting lifestyle and purchase drivers.

HOME RENOVATION IS STILL TOP OF MIND AND BUDGET FOR CONSUMERS

5 1%

OF RENOVATING HOMEOWNERS SPENT $25,000

OR MORE ON THEIR RENOVATIONS IN 2023, UP

FROM 37% IN 2020

SOURCE: HOUZZ.COM, 2024

2 5%

SPEND ALLOCATION OF OVERALL BUDGETS FROM HOMEOWNERS GO TO UPGRADES TO OUTDOOR LIVING SPACES

SOURCE: QUALIFIED REMODELER, 2024

MORE DEMAND FOR MULTI-

FUNCTION OUTDOOR LIVING SPACES

THE DEMAND FOR OUTDOOR SPACES HAS INCREASED

SINCE 2020 BY

5 0 %

SOURCE: AZENCO-OUTDOOR.COM, 2024

6 4 %

OF HOMEOWNERS CURRENTLY WANT THEIR PATIO

TO SERVE SEVERAL PURPOSES (EXPECTED TO

INCREASE BY 5% IN 2024)

SOURCE: NATIONAL ASSOC. OF REALTORS, 2023

SUSTAINABILITY CONTINUING TO GAIN SIGNIFICANT INDUSTRY INFLUENCE

7 7 %

OF INDIVIDUAL INVESTORS GLOBALLY SAY THEY ARE INTERESTED IN INVESTING IN COMPANIES THAT AIM TO ACHIEVE MARKET-RATE FINANCIAL RETURNS WHILE ALSO CONSIDERING POSITIVE SOCIAL AND/OR ENVIRONMENTAL IMPACT

*SOURCE: MORGAN STANLEY INSTITUTE FOR SUSTAINABLE INVESTING, JANUARY 2024

8 4 %

OF DESIGNERS PRIORITIZE PRODUCTS MADE WITH RESPONSIBLY SOURCED MATERIALS

SOURCE: CONSENTINO.COM, 2024

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