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INVESTOR PRESENTATION OCTOBER 2017
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 impact of Hurricane Irma on our business, including on our production levels and other aspects of our operations, and on our sales and profitability;
The economy in the United States generally and in Florida, in particular, where the substantial portion of our sales are generated, and the impact that Hurricane Irma
may have on that economy;
Raw material prices, especially aluminum and vinyl;
Transportation costs;
Our level of indebtedness;
Our dependence on our impact-resistant product lines;
Our ability to successfully integrate acquisitions, such as our acquisition of WinDoor®, Inc.;
Product liability and warranty claims;
Federal and state regulations;
Our dependence on our limited number of manufacturing facilities; and
Other risks discussed in our Annual Report on Form 10-K for the year ended January 2, 2016 and in our subsequently filed quarterly reports on Form 10-Q, all of which
are available from the SEC.
Statements in this presentation that are "forward-looking" include without limitation statements regarding: the Company's outlook for its 2017 financial performance; the
Company’s estimates for future sales, gross margin and EBITDA performance; future housing starts in Florida and the strength of the Florida market; the performance of the
Company’s new product pipeline and the Company’s strategic plans going forward. You should not place undue reliance on forward looking statements, which speak only as of
the date they are made. The Company does not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances,
except as required by law. Before making any investment decision, you should carefully consider all risks and uncertainties disclosed in our prior SEC filings, including our most
recent annual report on Forms, 10-Q and 10-K and our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K, all of which are accessible on the SEC’s
website at www.sec.gov and at http://ir.pgtindustries.com/sec.cfm.
MARKET LEADER. OUTGROWING A GROWTH MARKET.
3
Future outlook
Sustained Growth
PGTI 5 year
growth vs. Florida
housing starts**
1.5×Faster
Market position in
impact resistant
windows & doors
in Florida
#1
PGTI 5 year
adjusted EBITDA
growth (2012-2017)*
28%
CAGR
3
Impact resistant ~65% of total $1B Florida window & door market, and growing faster
**Estimated 2017 EBITDA based on current consensus
**2012-2017 CAGR FL SFHS 15.1% and PGTI estimated sales CAGR 23.4% based on current consensus
T H E P G T I N N O V A T I O N S T O R Y
MARKET LEADER. LONG GROWTH RUNWAY.
4
A repositioned business
Focused on high growth markets
A unique business model
Long growth runway
1
2
3
4
Faster, sustained
growth
T H E B U S I N E S S T O D A Y
PGT INNOVATIONS AT A GLANCE
5
37+
~65%
>1M
~2,700
year operating history
square feet manufacturing space
employees
$459M
market share of impact-resistant
windows and doors in Florida
net sales in 2016
~1,300 distributors
A R E P O S I T I O N E D B U S I N E S S
EXPANDED PLATFORM. POSITIONED FOR SUSTAINED GROWTH.
6
1980-2013
Built Strong Foundation
▪ Created leading position in Florida through innovation and strong customer focus
2014-2016
Repositioned
▪ Two acquisitions, new name PGT Innovations – house of market-leading brands
Sustained Growth Ahead
▪ Leveraging market leadership, technical expertise, customer intimacy and operational capabilities
2017+
▪ Leading Architect Brand for impact-resistant products
▪ Complementary aluminum and vinyl impact-products
▪ Commercial collection for resorts, hotels, schools, offices and storefronts
▪ Value-custom, premiumand commercial markets
16% OF 2017*
REVENUE
7
▪ Leading brand to “Luxury Market” for impact-resistant products
▪ High performance to withstand toughest conditions
▪ Highly customizable
▪ Largest sizes and highest design pressures in industry
10% OF 2017*
REVENUE
▪ #1 consumer brand for impact-resistant products
▪ Available in aluminum and vinyl
▪ Broadest impact-resistant product offering in industry
▪ Also offer non-impact aluminum/vinyl products and porch enclosures
▪ Mass-custom market
74% OF 2017*
REVENUE
T H E B U S I N E S S T O D A Y
PORTFOLIO OF THREE MARKET LEADING BRANDS
* Estimated 2017 sales
T H E B U S I N E S S T O D A Y
FOCUS ON HIGHER MARGIN SEGMENTS
8
Sales Breakdown by Product Group(Q2 2017)
Impact-Resistant
85%
Non-Impact
15%
Sales Breakdown by Market(Q2 2017)
Repair &Remodeling
61%
NewConstruction
39%
T H E B U S I N E S S T O D A Y
IMPACT RESISTANT – A FASTER GROWING SEGMENT
9
Faster GrowthImpact Resistant Advantages
✓ Passive protection – convenience
✓ Improved energy efficiency
✓ UV protection
✓ Insurance premium discounts
✓ Added security and noise reduction
✓ Improved appearance
$0
$200
$400
$600
$800
$1,000
$1,200
2015 2016 2017E 2018E 2019E
9.3%CAGR
7.6%CAGR
Non-ImpactResistant
Impact Resistant
Florida Windows and Patio DoorsOverall Demand
T H E B U S I N E S S T O D A Y
UNIQUELY POSITIONED IN THE IMPACT RESISTANT MARKET
1 0
Price
Position
Breadth of Product
Offering
Positioned in
“sweet spot”
Narrow Broad
Luxury
Value
PGT
Innovations
P E R F O R M A N C E
STRONG RECORD OF SALES AND EBITDA GROWTH
1 1
Net Sales ($M)* Adjusted EBITDA ($M)*
2017 Sales up 9.4% 2017 Adj. EBITDA up 12.5%
$174.5
~$500
2012 2013 2014 2015 2016 2017E
$24.7
~$85
2012 2013 2014 2015 2016 2017E
23%CAGR
28%CAGR
* Estimated 2017 sales growth & adj. EBITDA based on current consensus; inclusive of growth contributed by acquisitions of CGI and WinDoor – see page 35 for net income to adjusted EBITDA reconciliation
P E R F O R M A N C E
OUTGROWING A GROWTH MARKET
1 2* Estimated 2017 sales growth based upon current consensus; inclusive of growth contributed by acquisitions of CGI and WinDoor
2012 2013 2014 2015 2016 2017E
Outperforming Single-Family Housing Starts Growth
23.4%*CAGR
15.1%CAGR
Florida SFHS
PGTI SalesGrowth
T H E P G T I N N O V A T I O N S T O R Y
MARKET LEADER. LONG GROWTH RUNWAY.
1 3
A repositioned business
Focused on high growth markets
A unique business model
Long growth runway
1
2
3
4
Faster, sustained
growth
FLORIDA - LEADER IN BUILDING CODE SAFETY
1 4
Origin of Impact-Resistant Codes
Hurricane Andrew Changed The Industry
(Damages: $25B)
Expected Changes in Regulatory Environment
▪ 1992: Hurricane Andrew, a Category 5 storm, was the most destructive hurricane to ever hit Florida causing over $25B in damages.
▪ 1993: 11 insurance companies went bankrupt & Florida was without sufficient insurers.
▪ 1995: Miami-Dade County issued the country’s toughest building codes.
▪ 2004-2005: 7 major hurricanes made landfall in the US. Excluding Katrina, they only averaged $7.6B each in damages.
▪ Aug 25 2017: Hurricane Harvey, a Category 4 storm, was the 1st major hurricane to make landfall in 12-years and is estimated to have caused $65B-$190B in damages to Texas.
▪ Sept 10, 2017: Hurricane Irma, a Category 5 storm, is estimated to have caused $50B-$100B in damages in Florida, Georgia, Alabama, North & South Carolina.
▪ Sept. 20, 2017: Hurricane Maria, a Category 4 storm, is strongest storm to hit Puerto Rico in 80 years and is estimated to have caused $40B-$100B in damages.
11 of the 14 Most Costly Disasters in US History were Hurricanes.*
Hurricane Andrew
Category 5 -1992
Hurricane Irma
Category 5 - 2017
2017 Hurricane Season(Estimated Damages: $155B-$390B**)
*Source: Hurricane Andrew and Insurance: The Enduring Impact of an Historic Storm, Insurance Information Institute, August 2012** Source: WorldVIsion Disaster Response - https://www.worldvision.org/category/disaster-response-news-stories
FLORIDA – A HIGH GROWTH MARKET
1 5
Factors Driving Growth Faster Market Growth
Single Family Housing Starts(2012-2017 CAGR)
9%
15%
US Florida
▪ Higher than average GDP growth
▪ Faster population growth
– now #3 in US
▪ Foreign real-estate investment in Florida
– #1 in US
▪ Lower unemployment rate
▪ Destination state
EXPECT STEADY RECOVERY IN FLORIDA HOUSING STARTS
1 6
120129
153
179
206
152
73
3926 32 32
4254 56
6478 85
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
20 year average1 = 114,000
Florida Single Family Housing Starts(Thousands of Units)
Estimate Florida can support 120,000 SFHS per year, an increase of ~40% from today
Note 1: 20-year average represents 1988 – 2007Source: Moody’s
FLORIDA REPAIR/REPLACEMENT MARKET CONTINUES TO EXPAND
Attractive R&R Market
1 7
Impact-Resistant Segment Gaining Share
40-50%*Impact
Resistant*
Active*or No
Protection
$123M
$190M
2015 2016
Up 54%
Permit Value Increasing
✓ Convenience – install once
✓ Improved energy efficiency
✓ UV protection
✓ Insurance discounts
✓ Added security / noise reduction
✓ Not necessarily more expensive than shutters
Advantages
▪ Housing stock of 5.65M units continues to age
▪ Home owners seek feature-rich products
• Active protection includes shutters, plywood, and other manually applied protective tools
• Impact resistant products are considered “passive” protection because they require no action beyond closing
the window or door
•*Estimate
IMPACT RESISTANT – A FASTER GROWING SEGMENT
1 8
Projected Growth 2015 to 2019E(CAGR)*
35%Non-ImpactResistant
9.3%
Factors Driving Growthin Impact Resistant
Florida MarketBreakdown 2017E
$1B
Windows and Patio Doors
65%Impact
Resistant
Impact Resistant
✓ Untapped market – ~60% still
use shutters in Florida market
✓ Passive protection – convenience
✓ Improved energy efficiency
✓ UV protection
✓ Insurance premium discounts
✓ Added security and noise
reduction
7.6%
Non-Impact
Resistant
*2015 Freedonia Report
T H E P G T I N N O V A T I O N S T O R Y
MARKET LEADER. LONG GROWTH RUNWAY.
1 9
A repositioned business
Focused on high growth markets
A unique business model
Long growth runway
1
2
3
4
Faster, sustained
growth
2 0
Customer intimacy business discipline
Successful product innovation process
Unique manufacturing/technical expertise
Significant barriers to entry
Attractive financial profile
A UNIQUE BUSINESS MODEL
1
2
3
4
5
1 . C U S T O M E R I N T I M A C Y B U S I N E S S D I S C I P L I N E
CUSTOMER FOCUS DRIVES BUSINESS MODEL
2 1
Customer Intimacy
▪ Invent products and services based
on deep understanding of customer’s
total business needs
▪ Customer analytics and insights drive
strategic and functional priorities
▪ Invest in R&D
▪ Innovation Lab
▪ Build customized, made-to-order products
▪ React quickly to market opportunities
▪ Flexible manufacturing model
– Limited edition/one-off products
to mass-custom production
▪ Deliver best total solution
▪ Unique products & services
▪ Customer loyalty and willingness to pay (higher margins)
Result: Minimal change in Top 50 customers throughout challenging business cycle
2 . P R O D U C T I N N O V A T I O N
SUCCESSFUL NEW PRODUCT CREATION PROCESS
2 2
20%80%Existingproducts
NEW PRODUCTS / TECHNOLOGIES
Newproducts
2014: PGT WinGuard®
Vinyl French Door2015: WinDoor Thermally Broken Windows (SH/RH)
2016: WinDoor 8100Narrow Stile SGD
2015: CGI Targa Doors
2016: Thermal PlasticSpacing Technology*
2016: CGI CommercialOversized Door
2014: CGI TargaVinyl Windows
2015: PGT WinGuard®
Vinyl Windows2016: PGT WinGuard® Vinyl
Sliding Doors 90o & 135o
* TPS/technology is not included in new product revenues
Robust new product pipeline – 3 year goal: 30%+ Vitality Index
3 . U N I Q U E M A N U F A C T U R I N G E X P E R T I S E
FLEXIBLE MANUFACTURING TO MEET MARKET NEEDS
2 3
Diversified Capabilities PowerfulCombination
Unique Technical Expertise
▪ Synchronous flow manufacturing, efficient production
▪ Vertically Integrated
▪ Effective fleet management
▪ In-house glass cutting, tempering, laminating, and insulating lowers costs and reduces lead-time
▪ Diversified workforce helps with labor demands
▪ Recognized as industry expert and pioneer of impact-resistant windows
▪ Actively involved in creation of standards and building codes
▪ Complete in-house product design and testing
High quality,advanced features
and lower cost
Highly responsive to shifting market – aluminum to vinyl, mono to insulated glass
Located in major markets:
• reduced shipping costs
• access to labor
Venice
Orlando
Miami
4 . B A R R I E R S T O E N T R Y
SIGNIFICANT BARRIERS TO ENTRY
2 4
Barriers
to entry
Complex/highly engineered products with
breadth of offerings
• Unprecedented product quality
• Growing portfolio of patents on key features
Recognized as industry expert – entrenched
relationship with dealers, architects and builders
• PGT University – trained more than 40,000 including
building code officials and trade partners
Strict building codes / certification requirements
for products
• More Miami-Dade County Notice of Acceptances
than any window and door manufacturer in the world
• More Impact-Resistant Certified products than any
window and door manufacturer in the world
5 . A T T R A C T I V E F I N A N C I A L P R O F I L E
INDUSTRY LEADING GROWTH AND MARGINS
Public peer group includes Fortune Brands Home and Security, Masco, Masonite and Ply Gem Holdings
*Estimated 2017 revenue growth, gross margin, and Adj. EBITDA margin based upon current consensus 2 5
9.4%*
PGTI Peer Average
Median
8.8%31.4%*
PGTI Peer Average
Median
30.6% 17.0%*
PGTI Peer Average
Median
14.5%
2017 Adj. EBITDA Margin2017 Adj. Gross Margin2017 Revenue Growth
T H E P G T I N N O V A T I O N S T O R Y
MARKET LEADER. LONG GROWTH RUNWAY.
2 6
A repositioned business
Focused on high growth markets
A unique business model
Long growth runway
1
2
3
4
Faster, sustained
growth
L O N G G R O W T H R U N W A Y
OUR ROADMAP FOR GROWTH: TWO PRONG STRATEGY
2 7
1GROW IN FLORIDA
Executing 3-Brand Strategy / Optimizing Operations
2EXPAND OUTSIDE FLORIDA
New Geographies / Acquisitions
1 . G R O W I N F L O R I D A
EXECUTING 3-BRAND STRATEGY, OPTIMIZING OPERATIONS
2 8
3-Brand Go-to-Market Strategy
▪ Implement master facilities plan
– multi-brand plants
– building new leased 300,000 sq. ft. facility
▪ Leveraging best practices
– strengthened leadership team
– implementing shared services
▪ Continuous improvement culture
▪ Implementing master product & services
strategy
– reposition/consolidate overlapping
brands and products
– leverage best practices
▪ New Product Introductions
▪ Expansion in commercial market
Enhancing Operational Capabilities
1 . G R O W I N F L O R I D A
OPPORTUNITIES TO IMPROVE MARGINS
2 9
MasterFacilities Plan
Shared Services
NewTechnologies
e.g. Thermal PlasticSpacer Systems
PurchasingPower
Leverage Best Practices
Environment of Continuous Improvement
Driving Operational
EfficienciesGoal:
150bpsadded to
EBITDA margin
in next 3 years
2 . E X P A N D O U T S I D E F L O R I D A
BUILDING NATIONAL “HOUSE OF MARKET-LEADING BRANDS”
3 0
LEVERAGE STRENGTHS
▪ Customer intimacy ▪ Innovation ▪ Technology
FLORIDA OUTSIDE FLORIDA
▪ Execute 3 brand strategy
▪ Grow market share
• new products
• penetration into active protection market
▪ Expand current brands/products into
new markets
• Carolinas, Texas, Panhandle, International, etc.
▪ Strategic Acquisitions
• High margins
• Differentiated (products &/or services)
• Target markets
▪ Talent
2 . E X P A N D O U T S I D E F L O R I D A
STRONG FREE CASH FLOW TO ENABLE GROWTH
3 1
$0
$10
$20
$30
$40
$50
2012 2013 2014 2015 2016
$M
Strong balance sheet with net debt to EBITDA of 2.6x as of Q2 2017
Cash From Operations
Capex
Free Cash Flow
Invest in the business
Pay down debt
Strategic acquisitions
Share repurchases or dividends
CAPITAL ALLOCATION – A DISCIPLINED AND BALANCED APPROACH
3 2
Disciplined
Capital
Deployment
3 3
R E C E N T U P D A T E
ENHANCED SUPPLY PARTNERSHIP
September 2017 Key Benefits
▪ 7-Year Supply Agreement
• PGT-branded door products
• Agreed upon pricing
▪ Sale of Certain Glass Processing Assets
• $28M purchase price
• 37% annualized return on original investment
• Glass door processing equipment
▪ Financial:
• Neutral EBITDA margin impact
• Expect to pay down debt by amount of
purchase price, less taxes
• Removes some future capital equipment
requirements & maintenance costs
▪ Strategic:
• Heightens focus in core areas of window
and door manufacturing
• Retains 100,000 sq. ft. building to
expand assembly operations
• Reallocates 160 trained employees
alleviating some constraints in a tight
labor market
I N S U M M A R Y
MARKET LEADER. LONG GROWTH RUNWAY.
3 4
A repositioned business• Expanded portfolio of market leading brands
Focused on high growth markets• Florida, impact-resistant market – tailwinds
A unique business model• Innovation leader, customer intimacy
Long growth runway• Executing mid and long-term strategies
1
2
3
4
Faster, sustained
growth
3 5
NET INCOME TO ADJUSTED EBITDA RECONCILIATION
Fiscal year
($ in millions) 2012 2013 2014 2015 2016
Net Income/(Loss) $9 $27 $16 $24 $24
Depreciation and Amortization 12 11 6 10 16
Interest Expense 3 3 6 12 20
Income Tax Expense/(Benefit) 0 (3) 10 15 12
EBITDA $25 $38 $38 $61 $72
Cash payment to Option Holders - - - - -
Impairment Charges - - - - -
Management Fees - - - - -
Consolidation Charges - - - - -
Manufacturing Inefficiencies - - 1 - -
Restructuring Charges - - - - -
Gain on Asset Sales - (2) - - -
Management Reorganization Cost - - - - -
Secondary Offering & Debt
Refinancing related expenses- 2 - 1 5
Debt Extinguishment - - 3 - -
Ineffective Hedges - - 2 - -
CGI/WinDoor Acquisition - - 2 - -
New Product/Start Up/Relocation - - 0 1 2
System Conversion Costs - - - 4 -
Fair Value of Contingent
Consideration – WinDoor Acq.- - - - (3)
Adjusted EBITDA $25 $38 $46 $67 $76
