investor presentation - pgt...

INVESTOR PRESENTATION

PHOENIX, AZ | DECEMBER 2018

Phoenix Investor Presentation 2018

TODAY’S AGENDA & PRESENTERS

2

Welcome & Opening Remarks Danielle Mikesell | SVP, Marketing & Product Mgmt. 9:00 AM

Company Overview & Strategic Path Forward Jeff Jackson | President & CEO

Western Window Systems Overview Scott Gates | SVP, PGTI & President, WWS

Financial Update Brad West | SVP & CFO

Investment Summary Jeff Jackson | President & CEO

Q&A Jackson, West & Gates

BREAK 10:45 AM

Site Tour | Western Window Systems HQ 11:00 AM

Leadership Luncheon 12:30 PM

Jeff JacksonPresident & CEO

Scott GatesSVP, PGTI &

President, WWS

Brad WestSVP & CFO


SAFE HARBOR STATEMENT

Statements in this presentation that are not historical facts are "forward-looking statements" that involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-

looking statements. Such statements generally can be identified by the use of forward-looking terminology, such as “believe”, “expect”, “anticipate”, "will", “outlook”, “project”, “plan” and similar terminology. These

risks and uncertainties, many of which are outside of our control, include, but are not limited to, factors such as:

• the ability to successfully integrate the operations of Western Window Systems into our existing operations and the diversion of management’s attention from ongoing business and regular business responsibilities

to effect such integration;

• the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisition of Western Window Systems (the “Western Window Systems Acquisition”);

• the risk that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits from the Western Window Systems Acquisition may not be fully realized or may take longer to realize than

expected or that our actual integration costs may exceed our estimates;

• disruption from the Western Window Systems Acquisition making it more difficult to maintain relationships with customers or suppliers of Western Window Systems;

• our level of indebtedness, which increased in connection with the Western Window Systems Acquisition;

• adverse changes in new home starts and home repair and remodeling trends, especially in the state of Florida, where the substantial portion of our sales are currently generated, and in California, Texas, Arizona,

Nevada, Colorado, Oregon, Washington and Oregon, where the substantial portion of the sales of Western Window Systems’ operations are generated, and in the U.S. generally;

• macroeconomic conditions in Florida, where the substantial portion of our sales are generated, and in California, Texas, Arizona, Nevada, Colorado, Oregon, Washington and Hawaii, where the substantial portion

of the sales of Western Window Systems are currently generated, and in the U.S. generally;

• raw material prices, especially for aluminum, glass and vinyl, including, price increases due to the implementation of tariffs and other trade-related restrictions;

• our dependence on a limited number of suppliers for certain of our key materials;

• sales fluctuations to and changes in our relationships with key customers;

• in addition to the Western Window Systems Acquisition, our ability to successfully integrate businesses we may acquire, or that any business we acquire may not perform as we expected at the time we acquired it;

• increases in transportation costs, including due to increases in fuel prices;

• our dependence on our impact-resistant product lines and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;

• product liability and warranty claims brought against us;

• federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations;

• our dependence on our limited number of geographically concentrated manufacturing facilities;

• risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by “hackers” and theft of data and information from our systems, and

the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended; and

• the risks and uncertainties discussed under Part II, Item 1A, “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.

Statements in this presentation that are forward-looking statements include, without limitation, our expectations regarding: (1) demand for our products going forward, including demand for our impact-resistant

products and the products of Western Window Systems; (2) the benefits we expect to realize from the Western Window Systems Acquisition; (3) our ability to continue to achieve and to maintain manufacturing and

operational efficiencies and margin improvement; (4) growth in the demand and markets for premium window and door products, including in the core states where our products are sold; (5) our ability to continue to

grow our sales and earnings going forward; (6) our ability to position the Company as a national leader in the premium window and door market, and our performance in that market; (7) our engineering, product

development and innovation capabilities and the benefits expected therefrom; (8) the benefits expected from our strategic initiatives and plans and our ability to successfully execute those plans; (9) the sustainability

of our competitive advantages; (10) the potential expansion of/increase in the EBITDA multiple applicable to the Company’s valuation; (11) our ability to identify and complete operational and strategic initiatives in the

future, and the results of any such initiatives; and (12) our financial and operational performance for our 2018 fiscal year, including our 2018 fiscal year guidance/outlook set forth in this presentation. You are

cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these

forward-looking statements to reflect subsequent events or circumstances from the date of this press release.

3


COMPANY OVERVIEW

Jeff Jackson | Chief Executive Officer & President, PGT Innovations

4


KEY MESSAGES

We Invent. We Build. We Deliver.

5

1 National leader in growing premium window and door category

2Well positioned with a strengthening, diversified family of premium brands

expected to capture profitable growth

3Focused on continued execution of our strategy to create long-term customer

and shareholder value

4Committed to investing in talent and R&D to remain an industry leader in

innovation and product development

5 Continued focus on operational efficiencies to drive expected margin expansion


PRODUCT GROUP3 END MARKET3

54%

46%

PGT INNOVATIONS AT A GLANCE (NYSE: PGTI)

6

Driven to Create the Strongest, Safest Building Products with a Customer-First Approach

Founded Headquarters Global Employees Market-cap

1980 North Venice, FL ~3,000 ~$1.1B1

72%

28%

1 As of 11/30/2018; 2 Pro Forma for the acquisition of Western Window Systems; 3 As of 9/30/18

36% 37%

Gross Margin

$745M net sales LTM 9/30/182

120+ years combined history

~65% market share of impact-resistant

windows and doors in Florida

>1.3M square feet manufacturing space

~1,650 dealers/distributors

Non-Impact Impact Resistant New Residential Repair & Remodel


Diversified Geographic Footprint, Resulting in Less Concentration in Florida and Stronger Overall Position

BROAD GEOGRAPHIC PLATFORM WITH NICHE MARKET LEADERSHIP

7

WWS HQ

PGTI HQ

PGTI-Southeast’s Core Market

PGTI-West’s Core Markets

Plant Locations

FOOTPRINT

All High-Growth,

Destination States with

Attractive Fundamentals

(housing starts, GDP, etc.)

FL74%

CA8%

TX3%

AZ2%

NV1%

Other12%

GEOGRAPHY


PGTI CORE PORTFOLIO

8

Well Positioned Strategic Platform of Market Leading Brands

#1 consumer brand for

impact-resistant products

Broadest impact-resistant

product offering in

industry

Leader in energy-efficient,

innovative indoor/outdoor

window and door system

design and manufacturing

Established PGTI as a

national leader in growing

premium

window and door category

Leading trade

professionals brand for

impact-resistant products

Serving residential and

commercial impact-

resistant markets

Leading brand in luxury

market

Highly customizable

offering with some of the

largest sizes and design

pressures in the industry

Note: Sales figures LTM 9/30/18 and Pro Forma for WWS


WELL POSITIONED WITH EXPANDED PLATFORM

9

Proven Track Record of Acquisition Integration and Deleveraging

Built Strong Foundation Repositioned Sustained Growth Ahead

1980-2013 2014-2017 2018+

Created leading position in Florida

through innovation and

strong customer focus

Two acquisitions, new name PGT

Innovations – market-leading brands

National platform with niche market

leadership; leveraging technical

expertise, customer focus and

operational capabilities

Acquired CGI for

$111M in July 2014

Acquired WinDoor for

$102M in November 2015

Acquired Western

Window Systems for

$355M in July 2018


Jeff JacksonPresident &

CEO

Joined: 2005

Brad WestSVP &

CFO

2006

John EngelstadSVP &

CIO

2015

Debbie LaPinskaSVP,

Human Resources

1991

Danielle MikesellSVP, Marketing &

Product Mgmt.

2014

SEASONED LEADERSHIP TEAM WITH 150+ YEARS IN INDUSTRY

1 0

Scott GatesSVP, PGTI

& President, WWS

2010

Heather ZorgeCFO,

WWS

2016

David McCutcheonSVP,

Business Integration

1997

Brent BoydstonSVP,

Sales

2016

Bob KellerSVP,

Florida Operations

2016


✓ Powerful Combination of

Manufacturing Scale and

Delivery Integration

✓ Highly-scalable, National

Production Capabilities at a

Lower Cost

✓ Innovative and Highly-

engineered Breadth of

Product Offerings

✓ Strict Building Codes/

Certifications for Products, a

Key Differentiator for Growth

A UNIQUE BUSINESS MODEL | FLEXIBLE MANUFACTURING

TO MEET DIVERSIFIED CUSTOMER NEEDS

1 1

Recent Capacity and Automation Investments Driving Efficiencies

PGTI-West PGTI-Southeast

• Diverse customer base of leading

window distributors and production

homebuilders, including 18 of the

20 largest U.S. homebuilders1

• New manufacturing and distribution

facility completed in January 2017

• Size: 170,000 sq. ft.

• Capacity for $300M in sales

• 2.5x+ current sales

• Improved operational efficiency

• Receiving labor capacity: +50%

• Shipping labor capacity: +38%

• Customer base of ~1,300

independently owned window

dealers, distributors, national

building supply distributors

• Synchronous flow manufacturing

• Efficient production

• Vertically integrated

• Diversified workforce helps with

labor demands

Located in Major FL Markets

• Reduced shipping costs

• Access to labor

1 As of YE 2017

VeniceMiami

Orlando


KEY SUSTAINABLE COMPETITIVE ADVANTAGES

1 2

National Leader with Niche Market Leadership

Strong value

proposition

High-quality

products

Unique technical

expertise and

innovation

Largest code

compliant

portfolio in the

market

Premium

positioning

with leading

family of brands

Exceptional

customer focus

Flexible

manufacturing to

meet market

demand

Successful new

product creation


AMONG THE HIGHEST MARKET SHARE AND EBITDA MARGINS

1 3

A Unique Position Among the Best Businesses in Building Products

Low High

High

2017A

Nort

h A

merican E

BIT

DA

Marg

in

Approximate North American Market Share in Respective Segment

(Roofing)

(Insulation)

Note: Market share figures are approximate and based on latest available data.


CURRENT VALUATION VERSUS OTHER HIGH-GROWTH,

HIGH-MARGIN PEERS LEAVES ROOM FOR MULTIPLE EXPANSION

1 4

1 2019E EBITDA based on consensus forecast as of 11/30/2018

Current TEV / CY2019E

EBITDA1 Trading Multiple

16.7x

12.7x

8.9x


STRATEGIC PATH FORWARD

1 5

Strong Execution of Disciplined, Profitable Growth Strategy

01 02 03 04 05Expanding

Footprint

Niche Product

Portfolio

Key Growth

Drivers

Enhancing

Offerings

Disciplined

Approach

Execution of

strategic plan to

create a national,

market leading

building products

company

Keen focus on

niche products

and brands, which

continues to yield

strong margins

and significant

cash flow

Alignment with

key high growth

markets, industry

trends and

evolving building

codes

Recent Western

Window Systems

acquisition

meaningfully

expands

geographic

coverage and

enhances

premium product

offering

Balance sheet

strength resulting

from rapid

deleveraging

following strategic

acquisitions


0 1 - S T R A T E G I C P A T H F O R W A R D

NATIONAL, MARKET LEADING BUILDING PRODUCTS COMPANY

• Expands geographic footprint and

solidifies PGTI as leading company

in multiple segments

• Strengthens brand recognition,

diversified product portfolio, creates

cross-selling opportunities

• Creates margin improvement

opportunities from operational

efficiency gains and realization of

expected cost synergies

• Builds on culture of innovation,

product development, and

continuous improvement

1 6

Acquisition of WWS Positions Us as the National Leader in Premium Windows and Doors

WWS HQ

PGTI HQ

PGTI-South East’s Core Market

PGTI-West’s Core Markets

Plant Locations



NICHE PRODUCT PORTFOLIO WITH SIGNIFICANT BARRIERS TO ENTRY

1 7

35 New Products Launched YTD 2018; Exceeding Vitality Index1 Goal of 30% Revenue

Complex, Highly-Engineered with

Breadth of Offerings

Strict Building Codes and Certification

Requirements for Products

Recognized as Industry Expert;

Entrenched Industry Relationships

• Unprecedented product certification

protected by growing portfolio of

patents on key features

• High-quality products position us as a

best-in-class manufacturer across

channels

• PGTI holds more impact-resistant

certified products than any window

and door manufacturer in the nation

• More Miami-Dade county notice of

acceptances than any window and

door manufacturer in the world

• Recently launched the Series 7000

line of 14 new products designed to

meet stricter building codes and

higher energy values

• PGTI University – trained 40,000+

including building code officials and

trade partners

• First mover advantage on evolving

customer trends and benefits from

strong culture of innovation

1 Portion of total revenue from new products launched within last 3 years



KEY GROWTH DRIVERS | IMPACT-RESISTANT

1 8

A Segment in High Demand

Significant New Construction Growth

Potential Remaining in Florida Market

>50%of Florida homes

DO NOT have impact-

resistant protection

18%of Florida homes have

storm shutters (indirect

competition to us)

18% of Florida homes have

impact-resistant

windows

13%of Florida homes

have impact-resistant

doors

9.3%

Impact-Resistant

7.6%

Non-Impact

$1.8B

Projected Growth

2015 to 2019E (CAGR)1

Florida Market

Breakdown 2017

Repair and remodel: Stringent building requirements and consumer

attention to hurricanes

Investments: Moved into expanded Miami facility – CGI operations achieved

highest level of quarterly sales in history while executing move; expected

continued productivity improvements and operational efficiencies

1 2015 Freedonia report

Impact Resistant

Non-impact Resistant

Non-impact Resistant(non-code areas)

$600M

$420M

$780M65% of

code

areas

~67% code areas



FLORIDA BUILDING CODES

• All Coastal areas in South Florida require new

construction buildings to have opening protection

• Window and Door Replacements also require

upgrading to products that provide opening protection

(e.g., Impact-resistant Windows and Doors)

• Florida Panhandle has significantly less stringent

requirements

• Many areas of the panhandle require no opening

protection, even directly on the coast

• Hurricane Michael hit Bay County, FL

• Bay County only requires opening protection for wind

speeds 130+ mph and within one mile of the coast

• After one mile inland, no opening protection is

required

• Hurricane Michael made land with wind speeds of

155 mph

1 9

Wind-borne Debris Region

Designated areas where the basic wind speed

is 140 mph or greater

130 mph and within one mile of coast

Wind-borne Debris Region



CONTEMPORARY INDOOR/OUTDOOR LIVING

2 0

– A FASTER GROWING SEGMENT

1 Total addressable market (TAM) for high-end homes with home values greater than $750k and have a multi-panel sliding door in back wall. Source: Industry data and Company estimates

~$7BTotal Addressable Market of

New High-End Homes with

Multi-sliding Doors in Back Wall

~$2BTotal Addressable Market

for New Homes with

Contemporary Design

$8-9B Growing Market

~11% 2012-2017 CAGR1

~24% 2012-2017 CAGR1


Growth in single family

housing permits

(“SFHP”) in PGTI-South

East’s Core Market and

PGTI-West’s Core

Markets have historically

outpaced national

average, with 2017 SFHP

in all key states still

significantly below 20-

year averages, while

repair/remodel and shift

to impact products

remains strong


SUPPORTIVE INDUSTRY TAILWINDS

Source: Moody’s and Company estimates; 1 Core market states include: FL; 2 Core market states include: CA, TX, AZ, NV, OR, WA and HI

PGTI-SE Core Market1 – Single Family Housing Permits (Thousands of Units)

PGTI-West Core Market2 – Single Family Housing Permits (Thousands of Units)

20-Year Historical Average: 91.8

20-Year Historical Average: 306.0

2 1

42.255.4 56.3

67.7 75.1 84.7 94.6

130.5 138.9151 155.5

2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E

168.3200.2 210.4 236.3 250.1 277.0

328.1372.5 386.4

429.6 449.5

2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E



COMPETITIVE ADVANTAGE TO RECENT WWS ACQUISITION

2 2

Expands Geographic Coverage and Enhances Premium Product Offering

• Revenue growth (22.1% CAGR) has

outpaced growth in core market housing

starts (6.9% CAGR) during the same period

(2014-17)

• Significant recent investments in facility,

sales force, and technological

improvements

• Addressable residential market for WWS is

$1.2B across the custom and production

housing markets

Award winning designer and a recognized leader in manufacturing contemporary door and window systems that

unify indoor/outdoor living for the residential, commercial and multi-family markets

Founded 1959

HQ Phoenix, AZ

Focus States CA, TX, AZ, NV, HI

PEOPLE CULTURE PRODUCTS MARKETS MARGINS

Strong talent

dedicated to

customers and

consumers with

high-quality

products and

robust R&D; WWS

end-user loyalty to

generate “pull

through” demand

Shared culture to

drive continued

operational

excellence and

success in key

customer metrics

Contemporary

door and window

system products

unify indoor/

outdoor living for

residential,

commercial and

multi-family

customers; entry

into high-end,

niche non-impact

products satisfying

stringent energy

efficiency

standards

Advances PGTI’s

multi-brand go-to-

market strategy

with strategic

platform in key

growing markets

WWS EBITDA

margins currently

above 20%,

targeting PGTI

margin

improvement of

150-200 bps

Phoenix Investor Presentation 2018 2 3


WESTERN WINDOW SYSTEMS OVERVIEW

Advances Objective to be National, Premium Window & Door Manufacturer and Supplier

Business Overview:

• Diverse customer base of ~640 leading window distributors and production home builders, including 18 of the

20 largest homebuilders in U.S.; no dealer represents more than 8% of sales for FY’17

• Serves residential, commercial and multi-family customers within Custom and Corporate Builder divisions:

FY’18 Forecast

Net Sales ~$126M - $132M

Adj. EBITDA $29M - $32M

Adj. EBITDA Margin 23% - 24%

Transaction Summary

Purchase Price $355M

Expected Cost Synergies ~$8M - $12M

Close Date August 2018

Transaction Highlights

✓ Strong margin and EPS accretion

✓ High FCF conversion ($300M

capacity with minimal CapEx)

✓ Abundant standalone and

synergistic growth opportunities

Corporate Builder | ~45%

Provides premium indoor/outdoor products

designed for a broader price range of

premium homes constructed by builders of

more than 50 homes per year

Custom | ~55%

Provides highly customized products

designed for luxury, custom homes

constructed by builders of less than 50

homes per year that serve growing market

segment of indoor/outdoor living spaces


OUR CONTINUOUS IMPROVEMENT CULTURE

Strong Cultural Alignment Across PGTI’s Family of Brands

Our Core Values

EXCELLENCE INNOVATION PARTNERSHIP

Western Window Systems

recognized as one of the best places

to work according to Inc. Magazine’s

June 2018 issue

Commitment to enhancing strong

brand with innovative, unique

products and solutions addressing

customer needs

Encourage openness to new ideas by

being respectful to our coworkers,

customers, suppliers and community


BUSINESS OVERVIEW

CUSTOM CORPORATE BUILDER

Single-family luxury

residential homes

Single-family residential

production builder homes

✓ Innovative, customized products

✓ Authentic contemporary and indoor/outdoor solution

• Developing strong working relationships with architects, custom

home builders and designers while building a strong international

dealer network to capture pull through demand

• Strong brand awareness driven by a comprehensive advertising

and marketing campaign at trade shows and in industry print and

digital platforms

• Host events at WWS manufacturing facility to highlight newest

products and unique company culture

Go-to-Market Strategy

✓ Market leader for indoor/outdoor living

✓ Industry leading lead times and best-in-class service

• Focused on developing strong relationships with volume production

builders and growing preferred vendor program

• Strong brand awareness and price protection driven by a

comprehensive advertising and marketing campaign in industry

print and digital platforms that has built exceptional brand equity

• Preferred vendor program creates an economic touch point

between WWS and builders to cement relationships and facilitate

pull through demand via dealer network

Go-to-Market Strategy


INNOVATIVE PRODUCT PORTFOLIO OVERVIEW

Recognized Industry Expert with Complex Products Meeting Strict Codes & Requirements

• One of only a few manufacturers capable of

providing a complete suite of products for a

contemporary house with first mover

advantage in indoor/outdoor architectural

design

• Ability to bring multiple new products from

ideation to launch in 12-14 months

• Sophisticated 1,000+ step stage gate launch

process to ensure success

• Innovative products resulting in whole house

portfolio and nearly full North American market

access across a variety of code restrictions

• Select new innovative product line launches

• Series 670

• Series 7000 Family (14 products in 12 months)

Whole House Product Portfolio

Multi-Slide Door Systems Folding Door Systems Sliding Door Systems

Doors Window Walls Windows


CASE STUDY | INNOVATION IN ACTION

Simulated Steel | from Ideation to Product Launch in just 6 Months

The Simulated Steel family of products opens up a large, new addressable market across many verticals

• Feedback councils with target customers

identified market opportunity for products

that could simulate the look of antique steel

windows and doors

• Developed unique go-to-market strategy

with strong value proposition supported by

early customer demand

• Engineers utilized existing chassis to build

innovative and new product family

• WWS went from ideation in February 2018

to new Simulated Steel product line launch

in August 2018


SIGNIFICANT INVESTMENTS IN MANUFACTURING CAPACITY…

…Has Driven Efficiencies and is Expected to Facilitate Continued Growth at Low Cost

1 YTD April 2018; 2 2015-2017 as reported. 2012-2015 mfg. overhead includes a partial allocation of certain items reclassified to admin expenses beginning in 2016. Figures do not include payroll tax and benefit expenses.

• Invested $13M+ in new facility and

equipment since mid-2016

• Streamlining of processes and vertical

integration resulted in efficiency gains:

Overview

Manufacturing Costs as a Percentage of Net Sales2

Best-in-Class Facility

170,000 Sq. ft. of capacity

$300M+Capacity

per year

~2.5xCapacity above

current sales

2 weeksCustom order

lead time

5-10 daysVolume order

lead time

94%Quality

first pass yields1

9.3%

8.1%

7.5%7.1%

6.5%

5.7%

4.2%

6.1% 6.1%

4.6%

3.0%

2.5%1.9%

2.0%

4.0%3.7%

3.5%

2.7%

3.2%2.9%

2.7%2.5%

2.4%

1.9% 1.8% 1.9%1.5%

0.9%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2012 2013 2014 2015 2016 2017 YTD 2018A

Direct Labor Indirect Labor Man. Overhead Shipping Wages

Efficiency Gains Highlights

Receiving | 50% • Improved processes

• Racking systems

• Inbound receipt

extrusion trays

Shipping | 38% • Additional docks and

workspaces

• New bar code

scanning capabilities

Labor | 45% • Processing positions

in new Computer

Numeric Control

(CNC) capabilities


FINANCIAL UPDATE

Brad West | SVP & CFO

3 0



HISTORICAL FINANCIAL PERFORMANCE

3 1

Best-in-Class Growth and Margins

Net Sales ($M) Adjusted EBITDA & Margin Free Cash Flow2 ($M) CapEx as a % of Revenue3

$459.6

$548.4

$611.3

$745.0

2015 2016 2017 LTM9/30/18

$83.1

$97.2 $104.8

$151.1

18.1% 17.7% 17.1%

20.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2015 2016 2017 LTM9/30/18

$17.0

$40.3 $38.5

$80.7

2015 2016 2017 LTM9/30/18

4.0% 3.9%

3.1% 3.0%

2015 2016 2017 LTM9/30/18

1 Includes $8.0M of synergies; 2 Cash flow from Operations less CapEx plus $6.0M in post-tax cost synergies; 3 Normalized 2016 and 2017 CapEx to $4.0M to account for WWS facility expansion and equipment costs

1



ENHANCING FCF AND MARGIN PROFILE

3 2

Strong FCF Profile1 Leading Margin Profile4

36.8%

25.5%

LTM 9/30/18 Peer Average

Adj. Gross Margin

20.3%

13.6%

LTM 9/30/18 Peer Average

Adj. EBITDA Margin

Focused on high-growth specialty products with margin

improvement opportunities

Cost synergies and shared commitment to operational

excellence expected to create opportunities for improved FCF

1 Normalized 2016 and 2017 WWS CapEx to $4.0M to account for WWS facility expansion costs; 2 Cash flow from operations less CapEx; 3 Includes $6.0M in in post-tax cost synergies; 4 Includes $8.0M of synergies; 5 Includes Jeld-Wen, Masco and Masonite

2015

2016

2017

LTM 9/30/18

FCF2 ($M)

PGTI WWS

Synergy

Adjustment3

$80.7

$38.5

$40.3

$17.0

Normalized WWS facility adj.

5

5


Continue to Expect Annual Cost Synergies of $8-12M


COST SYNERGY OVERVIEW

SAVINGS EXPECTED FROM:

Glass Procurement

Aluminum Procurement

Hardware & Other

Back-office Optimization

Leveraging strengths of relationships we have with combined

suppliers

Consolidating and optimizing certain finance and IT functions,

vendor consolidation, and application rationalization

COMMENTARY:



CONSERVATIVE BALANCE SHEET WITH AMPLE LIQUIDITY

3 4

($M) Maturity Period Ended: 9/29/2018

Cash $ 32.2

Existing Revolver ($40M)1 Feb 2021 -

Existing Term Loan B Feb 2022 $ 72.0

Total Secured Debt $ 72.0

New Senior Unsecured Notes Aug 2026 $ 315.0

Other Debt $ 0.2

Total Debt $ 387.2

Total Net Debt $ 355.0

Market Capitalization2 $ 1,125.0

Total Capitalization (Net Debt + Market Cap) $ 1,480.0

LTM 9/30/2018 PF Adj. EBITDA3 $ 151.1

Gross Leverage4 2.6x

Net Leverage5 2.4x

Select Balance Sheet Items

• Aug. 2018: Raised $315M aggregate

principal at fixed rate of 6.75%, due 2026

• Sept. 2018: Issued 7M shares of

common stock; repaid $152M of principal

amount of term loan facility

• Oct. 2018: Received credit upgrade from

Moody’s to B1

1 $1.2M in Letters of Credit Outstanding; 2 Based on stock price as of 11/30/2018; 3 Includes $8.0M of estimated synergies; 4 Debt divided by LTM 9/30/2018 PF Adj. EBITDA; 5 Net Debt divided by LTM 9/30/2018 PF Adj. EBITDA



CAPITAL ALLOCATION PRIORITIES

3 5

Balanced Thoughtful Approach

Internal

Investment

Debt

ReductionAcquisitions

1 2 3

• Strategic growth projects

are core to driving

shareholder value

• Advertising and marketing

investments continue to

benefit our growth

• Committed to solid balance

sheet and achieving a

conservative leverage profile

• Reduce leverage from pro

forma net debt-to-EBITDA

ratio of ~4.0x at close to 2.6x

• Strategic acquisitions are

core to driving shareholder

value

• Expansion into new

geographies and other niche

building products



REAFFIRMING OUR FULL YEAR ANNUAL GUIDANCE

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Well Positioned to Capture Long-term Profitable Growth and Create Shareholder Value

Full-Year Guidance Updates

Current Guidance1 Current vs. FY 2017

Net Sales

$675M – $685M 32% – 34%

Adjusted EBITDA

$123M – $128M 46% – 52%

Net Income/Diluted Share

$1.13 – $1.19

Free cash flow2

$75M – $80M

Quarterly Run Rate Estimates

4Q18

Interest Expense

$7M

Tax Rate

26%

Depreciation and Amortization

$8.5M

CapEx as % of Sales

3 – 4%

4Q18 Diluted Share Count

59.3M

1 Guidance introduced on 11/1/2018 includes WWS sales for the post-acquisition period beginning on August 13, 2018. 2 Cash flow from Operations less CapEx


INVESTMENT SUMMARY

Jeff Jackson | Chief Executive Officer & President, PGT Innovations

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CREATING NATIONAL LEADER IN PREMIUM WINDOWS & DOORS

3 8

Positioned to Drive Profitable, Sustained Growth and Value for Shareholders

Continued leadership in innovation

and product development, marketing

and sales

Broad geographic platform with niche

category leadership

Geographic, channel, customer and

product diversity

Customer first, innovative product

portfolio to build our family of brands

Shared culture of continuous

improvement driving continued top-line

growth and operational efficiencies

Dynamic and experienced management

team improving all key performance-

based metrics

Ability to leverage flexible manufacturing

capabilities to meet customer needs

Strategically allocating capital from strong

FCF and improved margin profiles


Q&A SESSION

Jackson, West & Gates

3 9


APPENDIX

4 0


PGTI RESULTS AS REPORTED

4 1

($000s)

Year Ended

1/2/2016

Year Ended

12/31/2016

Year Ended

12/30/2017

Twelve Months Ended

9/29/2018

Net Income $ 23,552 $ 23,747 $ 39,839 $ 63,752

Depreciation and Amortization 10,421 15,673 19,528 21,058

Interest Expense, Net 11,705 20,125 20,279 24,680

Income Tax Expense (Benefit) 15,297 11,800 63 (305)

EBITDA $ 60,975 $ 71,345 $ 79,709 $ 109,185

Debt Extinguishment Costs - - - 3,375

Facility and Equipment Relocation Costs - - - 435

Gains on Transfers of Assets Under Cardinal APA - - - (2,551)

Transaction-related Costs 553 - - 4,144

Hurricane Irma-related Costs - - 1,341 250

WinDoor Transition Costs - - 1,687 994

Thermal Plastic System and Glass Line Start-up/Installation Costs 141 628 517 -

Management Reorganization and Other Corporate Costs 405 650 828 113

Fair Value Adjustment to Contingent Consideration - (3,000) - -

Refinancing- and Acquisition-related Costs - 4,632 - -

Product Line Relocation and Termination Costs - 1,431 - -

System Conversion Costs 3,863 - - -

New Product Launch Costs 1,440 - - -

Stock-based Compensation 1,774 1,769 1,948 2,923

Adjusted EBITDA $ 69,151 $ 77,455 $ 86,030 $ 118,868


WWS STANDALONE RESULTS

4 2

($000s)

Year Ended

12/31/2015

Year Ended

12/31/2016

Year Ended

12/31/2017

Twelve Months Ended

9/29/2018

Net Income (Loss) $ (376) $ 6,622 $ 4,095 $ 9,552

Depreciation and Amortization 4,161 7,458 8,743 7,863

Interest Expense, Net 2,367 4,318 4,300 4,266

Income Tax Expense 31 75 65 130

EBITDA $ 6,183 $ 18,473 $ 17,203 $ 21,811

Board Fees - 59 75 30

Excess Bonus Expense - - - 833

Profit Interest Compensation 150 422 431 373

Research and Development - 399 340 -

Severance - 120 - -

5621 Expense - - 483 431

Bad Debt Reserve - - 191 698

Moving Expense - 227 58 -

Transaction-related Expense 6,942 - - 72

Other 619 - - -

Adjusted EBITDA before Synergies to be Realized $ 13,894 $ 19,700 $ 18,781 $ 24,246

Run-rate Synergies to be Realized - - - -

Adjusted EBITDA $ 13,894 $ 19,700 $ 18,781 $ 24,246

Note: Twelve-month period ending September 30, 2018 excludes the PGTI Ownership period from 8/13/2018 – 9/29/2018


FREE CASH FLOW RECONCILIATION

4 3

($000s)

Year Ended

12/31/2015

Year Ended

12/31/2016

Year Ended

12/31/2017

Twelve Months Ended

9/29/2018

PGTI Legacy Operating Cash Flow $ 32,456 $ 46,365 $ 49,025 $ 71,561

WWS Operating Cash Flow 2,878 15,604 8,165 25,689

Expected Synergies (After Taxes) - - - 6,000

Combined Operating Cash Flow $ 35,334 $ 61,969 $ 57,190 $ 103,250

PGTI Legacy Capital Expenditures (17,391) (17,694) (17,818) (29,908)

WWS Capital Expenditures (934) (9,442) (6,007) (1,573)

PGTI Proceeds from Asset Disposals - 45 3,089 8,896

Combined Capital Expenditures, Net (18,325) (27,091) (20,736) (22,585)

Combined Free Cash Flow $ 17,009 $ 34,878 $ 36,454 $ 80,665


SPEAKER BIOGRAPHY | JEFF JACKSON, CEO & PRESIDENT

Mr. Jackson joined PGT Innovations in November 2005 as VP & CFO. He currently serves

as CEO & President. In 2006, Mr. Jackson helped lead the Company's IPO, and was later

named Executive Vice President. In 2014, Mr. Jackson became President and Chief

Operating Officer with responsibilities overseeing the Company’s strategic direction. In 2016,

Mr. Jackson was appointed to the Board of Directors.

Prior to joining PGT Innovations, Mr. Jackson held various executive management roles. In

2004 Jeff joined The Hershey Company as Vice President and Corporate Controller. Prior to

Hershey, Mr. Jackson served in positions of increasing responsibility with Schwan’s Bakery,

including Senior Vice President – General Manager of Emerging Channels and Senior Vice

President and CFO. In addition, Mr. Jackson worked for Flowers Foods, Inc., Coca-Cola and

KPMG.

Mr. Jackson earned a B.B.A. from the University of West Georgia and is a Certified Public

Accountant in Georgia.

Mr. Jackson serves on the Board of Directors for Smith Douglas Homes, a private home

builder based in Atlanta, GA, as Chairman of the Audit Committee.

Mr. Jackson is the Chairman of the Board of Directors for Children First, a nonprofit

organization in Sarasota County.

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SPEAKER BIOGRAPHY | BRAD WEST, SVP & CFO

Mr. West joined PGT Innovations in 2006 as Director of Financial Planning and Analysis,

Accounting and Finance. Mr. West was promoted in 2013 to Vice President and Controller

and in 2014 was promoted to Chief Financial Officer. Subsequently in 2015 he was promoted

to Senior Vice President, where he is responsible for Accounting, Finance, Investor

Relations, Treasury, and Risk Management functions. Prior to joining PGT Innovations, Mr.

West served as the Operations Controller for Schwan’s Food Company. Mr. West has over

18 years of management experience in manufacturing organizations.

Mr. West earned a Bachelor of Business Administration degree from the University of

Michigan and is a Certified Public Accountant in Georgia.

Mr. West serves as a board member of Goodwill Manasota.

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SPEAKER BIOGRAPHY | SCOTT GATES, SVP, PGTI & PRESIDENT, WWS

Mr. Gates joined Western Window Systems, a PGT Innovations business, in 2011 as

Director of Marketing. He currently serves as Senior Vice President for PGT Innovations and

President for Western Window Systems. Mr. Gates is responsible for overseeing the

strategic direction of the company and growth enablers such as new products, market

expansion, sales and marketing strategies, leadership initiatives, and company culture.

Prior to his current role, Mr. Gates served as Western Window Systems’ President and CEO

from 2015-2018, President and COO from 2013-2015, and Vice President and General

Manager from 2013-2014.

Mr. Gates earned a Bachelor of Science in Marketing and an Executive Masters of Business

Administration from Arizona State University.

He serves on the boards of the Sun Valley Community Church and Orchard: Africa.

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