Q2 2020 Summit Materials Conference Call Presentation · This presentation includes “forward-looking statements”within the meaning of the federal securities laws, which involve

1

Legal Disclaimer

Forward-Looking Statements

This presentation includes “forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to

historical or current facts, and you can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “outlook,” “should,” “seeks,” “intends,” “trends,” “plans,” “estimates,” “projects”

or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. All statements made relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates

and financial results are forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially

different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are

based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect

our actual results. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that

the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-

looking statements, including but not limited to the factors discussed in the section entitled “Risk Factors” in Summit Materials, Inc.’s (“Summit Inc.”) Annual Report on Form 10-K for the fiscal year ended December 28, 2019

and Quarterly Report on Form 10-Q for the quarterly period ended March 28, 2020, each as filed with the SEC, and any factors discussed in the section entitled “Risk Factors” in any of our subsequently filed SEC filings as

filed with the Securities and Exchange Commission (the “SEC”), and the following: the impact of the coronavirus (“COVID-19”) pandemic on our business, or any similar crisis; our dependence on the construction industry and

the strength of the local economies in which we operate; the cyclical nature of our business; risks related to weather and seasonality; risks associated with our capital-intensive business; competition within our local markets;

our ability to execute on our acquisition strategy, successfully integrate acquisitions with our existing operations and retain key employees of acquired businesses; our dependence on securing and permitting aggregate

reserves in strategically located areas; declines in public infrastructure construction and delays or reductions in governmental funding, including the funding by transportation authorities and other state agencies particularly if

such are not augmented by federal funding or if the federal government fails to act on a highway infrastructure bill; our reliance on private investment in infrastructure, which may be adversely affected by periods of economic

stagnation and recession; environmental, health, safety and climate change laws or governmental requirements or policies concerning zoning and land use; costs associated with pending or future litigation; rising prices for

commodities, labor and other production and delivery inputs as a result of inflation or otherwise; conditions in the credit markets; our ability to accurately estimate the overall risks, requirements or costs when we bid on or

negotiate contracts that are ultimately awarded to us; material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications; cancellation of a significant number of

contracts or our disqualification from bidding for new contracts; special hazards related to our operations that may cause personal injury or property damage not covered by insurance; unexpected factors affecting self-

insurance claims and reserve estimates; our substantial current level of indebtedness, including our exposure to variable rate risk; our dependence on senior management and other key personnel, and our ability to retain and

attract qualified personnel; supply constraints or significant price fluctuations in electricity and the petroleum-based resources that we use, including diesel fuel and liquid asphalt; climate change and climate change legislation

or regulation; unexpected operational difficulties; interruptions in our information technology systems and infrastructure, including cybersecurity and data leakage; and potential labor disputes, strikes and other forms of work

stoppage and other union activities. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements. Any

forward-looking statement that we make herein speaks only as of the date of this presentation. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future

events or otherwise, except as required by law.

Non-GAAP Financial Measures

Included in this presentation are certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EBITDA Margin, Further Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Diluted Net Income(Loss0,

Adjusted (Diluted) Earnings Per Share, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Net Debt, Net Leverage, Free Cash Flow, designed to complement the financial information presented in accordance

with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in

accordance with GAAP. Please refer to the appendix of this presentation for a reconciliation of the historical non-GAAP financial measures included in this presentation to the most directly comparable financial measures

prepared in accordance with GAAP.

Reconciliations of the non-GAAP measures used in this presentation are included or described in the tables attached to the appendix. Because GAAP financial measures on a forward-looking basis are not accessible, and

reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. For the same reasons we are unable to address the probable significance of

the unavailable information, which could be material to future results.

2

Conference Call Agenda

Safe Harbor Disclosure

Karli Anderson, VP Investor Relations

Business Update

Tom Hill, CEO

Financial Update

Brian Harris, CFO

Management Outlook

Tom Hill, CEO

Q&A

Construction is essential in all of

SUM’s markets

3

▪ Safety and distancing protocols still in place and vital to our operations

▪ COVID-19 precautions are an integral part of our safety program

▪ Working with stakeholders to enhance operations under these new working conditions

❖ Steady demand in our largest markets offset lower demand in some smaller markets

❖ Variable costs adjusted to flex with demand

Q2 Executive Summary

▪ Record Q2 Net Revenue, Operating Income, Net Income and Adjusted EBITDA

❖ July market conditions thus far resemble Q2

❖ July close of Multisources acquisition, a 100% pure play aggregates business

▪ We continue to assess potential future impacts from COVID-19 economic disruption

❖ Summit is not providing Adjusted EBITDA guidance at this time

❖ We are maintaining 2020 capex guidance of $145-$160MM

▪ Successfully withstanding challenges thanks to our unique value proposition

❖ Locally-managed companies that can act quickly and leverage economies of scale

❖ Serving private end markets that are structurally sound and not oversupplied

❖ Supporting essential repair/replace work for public infrastructure

❖ $580MM available Q2 liquidity; pro-forma net of Multisources is ~$490MM

4

Q2 Executive Summary

✓ Residential demand in our markets generally strong; unemployment impacts not seen except in NV

✓ Non-residential growth fueled by windfarms and distribution centers; some airport and retail projects are delayed

✓ Cement volumes expected to be lower in 2H 20 than in 2H 19 on challenging conditions in southern markets

✓ Public activity resilient in TX, KS, UT, VA, CO; challenging in KY, NC, BC

5

2Q Highlights & Early 3Q Indicators

2Q20 Results compared to 2Q19:

Early 3Q indicators:

✓ Net Revenue of $575.2MM, up 4.1%; Net Income of $57.1MM, up 57.2%

✓ Adjusted EBITDA of $160.2 million, up 14.1%

✓ Pricing growth in Cement(+1.2%), Asphalt(+2.3%), Ready Mix(+5.5%)

✓ Aggregates pricing (-0.2%) lapped Q219 comp of +8% (flood work in MO)

✓ 2Q Aggregates margin expanded 250bps to 63.9%(1,2) 1H 20 Mix-adjusted aggregates pricing is +2.5%

(1) See reconciliations of Adjusted Cash Gross Profit Margin in the appendix

(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue. In this presentation of the data, Adjusted Cash Gross Profit is calculated by line of

business, less net cost of revenue by line of business

▪ 2Q20 Cement Adjusted EBITDA flat vs 2Q19

❖ Gross margin rebounded by 500 bps to 50.8% on normal weather and shipping conditions

❖ ~$4MM 2Q impact from down time at Green America Recycling; expect similar impact in 3Q 20

❖ Volume declined by ~6% and price increased by 1.2% vs 2Q 19

▪ Price increases enacted June 1, thus not entirely reflected 2Q 20 reported average selling price

▪ Production continues to flex with demand: 2H 20 volume expected to be lower than in 2H 19

❖ PCA 2020 forecasts range from a 5% increase to a 14% decrease in states on the river market

6

Cement UpdateCement was ~22% of SUM’s 2019 Adjusted EBITDA

35.5 35.7

0.8 1.7 4.1

2.5 0.1 5.2 3.8

0

10

20

30

40

Q2 '19 Volume, net ofPurchased

Price Green America Plant costs 2019 Floodcosts

Distributioncosts

Other Q2 '20

Adj

uste

d E

BIT

DA

($M

M)

Cement Segment Bridge 2Q19 to 2Q20

PublicPrivate

7

% of Total ’19 Revenue(1)

Private vs. Public (%)(1)

Current Public Activity

(July 2020)

Texas Missouri

(1) For the fiscal year 2019.

Current Private Activity

(July 2020)

Residential/Non-Residential

Geographic Business Overview38%/31%/31% Public/Res/Non-Res, Mostly Rural & Exurban

Top 5 State Markets = 64% of Total Company Revenue in FY ’19 and 40% of our Total Company Public Infrastructure Work

Kansas Utah

23%13% 12% 8%

40%60% 46%54%

32%

68%

Kentucky

70%

30%

22% 10% 7%

TXDOT awarding jobs

and backlog has not

been interrupted. expect

to receive full Prop 7

allocation in FY21

Houston new res permit

volume +7.6% in May

after a pause in April; non

res resilient

Res & non res bidding

slower in Permian and N.

Texas

State highway fund not

impacted by plan to

address 2021 budget

shortfall; LTM fuel taxes

flat y/y through May

Non-res windfarm

projects throughout

the state; res activity

steady

Lettings activity is

normal; 2020 Backlog

in place. 2nd lowest

unemployment in the

US(May)

DOT steady for now; Less

flood repair work than 2019;

Fuel consumption -4.7%

y/y in May

Non-res windfarm and

warehouse work

continues, residential

steady

Limited letting activity in July;

road fund impacts less severe

than originally estimated

Stable res and non res

activity, small proportion

of KY business

Res activity higher

than in the last couple

of years;.

Non res has backlog

through fall ‘20

25%

75%

8

Outlook by End-MarketDifficult to predict impact of stimulus, employment trends and federal funding

▪ NAHB/Wells Fargo Housing Market Index (HMI) rebounded to pre-pandemic levels in July 1

▪ Mortgage rates at all-time lows2

▪ Buyer traffic and pricing strong in many of our markets, particularly Salt Lake City and Houston

▪ Official unemployment rate of 11.1%3 ; economists expect year-end unemployment in the 11-14% range4

▪ May architectural billings improved relative to April, but are still significantly lower than a year ago5

▪ Windfarms, distribution centers are being completed and new projects are emerging in the Midwest

▪ Several airport expansion projects have been delayed or deferred

▪ We focus on low-rise commercial that follows residential, avoiding volatile high-rise construction

▪ States evaluating future transportation budgets; funding sources and tax revenue impacts vary by state

▪ Both House INVEST Act & Senate’ ATIA Act would increase federal funding for infrastructure

▪ Current FAST Act expires September 30, 2020; continuing resolution likely if no other action

(1) National Association of Home Builders, July 16, 2020.

(2) Freddie Mac Primary Mortgage Market Survey, July 9, 2020.

(3) US Bureau of Labor Statistics, July 2, 2020.

(4) Wall Street Journal Economic Survey May 2020 of 75 economists.

(5) AIA Architectural Billings Index May 2020.

Residential

Non-

Residential

Public

Multisources Sand & Gravel Acquisition

(1) As of July 2020

(2) Line of business split on an EBITDA basis; end market split is an internal estimate

Line of Business(1,2)

End Markets(1,2)

Materials

Products

Private

Public

100%

80%

20%

▪ Investment Highlights

❖ $92MM investment at attractive valuation

❖ Strategically core acquisition → pure-play aggregates in high-growth metro area

❖ Excellent fit with existing footprint

❖ Multiple synergy opportunities

❖ Creates leading aggregates supplier in the Houston market

❖ Transaction closed July 10th

Aggregates

Ready Mix Concrete

Multisources

Color Legend

Shape Legend

Alleyton

9

10

Greenfields

Projects

▪ 5 Aggregates Greenfields completed

❖ Utah, Texas (3 projects), Georgia

❖ 5 Aggregates Greenfields under development

❖ Georgia (2), Carolinas(2), Missouri

▪ Estimated future Greenfields spending:

❖ ~$50-$60MM in 2020

❖ ~$35-$45MM in 2021

▪ ~450 million tons of reservesRecently acquired Aggregates property in Missouri

$0

$10

$20

$30

$40

$50

$0

$50

$100

$150

$200

$250

2014-2018 2019 2020 2021 2022 2023 2024

Greenfields Estimated CapEx1 and Illustrative Adjusted EBITDA2 ($MM)

CapEx Incremental Incremental Adjusted EBITDA

~$45MM Adjusted

EBITDA per year,

run rate by 2024

Cap

Ex

($M

M)

Adjusted E

BIT

DA

($MM

)

Recently commissioned crushing plant, Georgia, October 2019

(1) Does not include deferred consideration.

(2) Adjusted EBITDA contribution by year is a illustrative.

11

Financial Update

Brian Harris, CFO

Capital Structure Overview

12

(2)

(2)

(2)

(2)

1 Revolver Capacity post-usage for (undrawn) Letters of Credit is $329.0M as of 3/27/20. If more than $100 million 6.125% notes are outstanding in April 2023, revolver will

mature in April 2023.

($ in Millions) Q2 '19 Q2 '20

Cash $67.7 $253.4

Debt:

Revolver1-- --

Senior Secured Term Loans $625.8 $621.1

Capital Leases and Other $58.9 $57.4

Senior Secured Debt $684.8 $678.5

Acq.-related Liab. $71.2 $42.3

5.125% Senior Notes $300.0 $300.0

6.5% Senior Notes $300.0 $300.0

6.125% Senior Notes $650.0 $650.0

Senior Unsecured Debt $1,321.2 $1,292.3

Total Debt $2,005.9 $1,970.8

Net Senior Secured Debt $617.1 $425.1

Net Total Debt $1,938.3 $1,717.4

Est. Annual Cash Int. Run Rate $113.9 $97.3

LTM Further Adj. EBITDA $411.9 $491.1

Net Senior Secured Leverage 1.5x 0.9x

Total Net Leverage 4.7x 3.5x

▪ Strongest 2Q-ended financial position in

Company history

❖ Leverage ratio improved to 3.5x at quarter

end Q2 20 from 4.7x at Q2 19

❖ $60.2MM of free cash flow at 2Q end

benefitted from improved working capital,

lower A/R

❖ Over $580MM available liquidity at 2Q end;

$490MM pro-forma liquidity net of

Multisources acquisition, which closed in July

12

13

Cap Ex Update

Cash position reflects seasonality of the business; current liquidity of ~$582.5 MM is the highest ever for 2Q

Enhancing Liquidity Through EBITDA Recovery & Disciplined Use of Capital

2020 Cap Ex Guidance Range $145-$160MM

$145

$50$60

$160

Total - Low End Greenfields Low Greenfields High Total - High End

Estimated Greenfields Cap Ex

is embedded within

Total Cap Ex Range

Greenfields: Deferred ~$10 million to future periods; not

expected to change estimated of 2024 EBITDA contribution

Maintenance: Deferred ~$20-$35 million of maintenance and

discretionary projects

Other considerations: $102MM spent YTD, ~$45MM

estimated to spend in 3Q, ~$10MM to spend in in 4Q

2020 Cap Ex Review Considerations

$US

D M

illio

ns

$0

$200

$400

$600

$800

Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Pro-Formanet of

Multisourcesacquisition

Cash Revolver Capacity

14

Net Revenue Bridge

Net Revenue by Reporting Segment – Q2 2019 vs. Q2 2020 ($MM)

$552.6

$575.2

$25.7

$5.8 $8.9

Q2 2019 West East Cement Q2 2020

15

Adjusted EBITDA Bridge

Q2 2019 Adjusted EBITDA vs Q2 2020 Adjusted EBITDA ($MM)

$140.5

$160.2

$24.1

$0.2 $1.0 $3.5

Q2 2019 West East Cement Corp Q2 2020

16

Key Performance IndicatorsGAAP Financial Metrics

Net Revenue ($MM) Operating Income ($MM)

Net Income - Summit Inc. ($MM) Basic Earnings Per Share(1)

(1) Diluted share count includes all outstanding Class A common stock and LP Units not held by Summit Inc.

$552.6 $575.2

$858.5 $917.6

2Q19 2Q20 1H19 1H20

$80.4

$100.1

$22.8

$58.3

2Q19 2Q20 1H19 1H20

$36.4

$57.1

$(32.4)

$12.1

2Q19 2Q20 1H19 1H20

$0.32

$0.50

2Q19 2Q20

17

Key Performance IndicatorsNon-GAAP Financial Metrics

Adj. Cash Gross Profit ($MM)

& Margin (%)(1,2)

Adj. Diluted Earnings Per Share (1,4)

Adj. EBITDA ($MM)

& Margin (%)(1,3)

(1) See appendix for reconciliation of these non-GAAP metrics to the most comparable GAAP metrics

(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue

(3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Net Revenue

(4) Adjusted diluted share count includes all outstanding Class A common stock and LP Units not held by Summit Inc.

Adj. Diluted Net Income ($MM)(1)

32.9%

$195.4 $220.9

$261.0

$301.9

2Q19 2Q20 1H19 1H20

35.4%38.4%

$140.5 $160.2

$147.1

$176.6

2Q19 2Q20 1H19 1H20

$36.0

$58.9

$(20.9)

$2.6

2Q19 2Q20 1H19 1H20

30.4% 17.1%

19.2%

25.4%27.9%

$0.31

$0.50

2Q19 2Q20

18

Average Selling Price, Excluding Acquisitions

(year-over-year % change)

Average Selling Price, Including Acquisitions


Sales Volume, Excluding Acquisitions


Sales Volume, Including Acquisitions


Aggregates Cement

Aggregates Cement Ready-Mix

ConcreteAsphalt Aggregates Cement

Ready-Mix

Concrete Asphalt

1H19 1H20

Aggregates Cement

Price and Volume Analysis

7.4%

0.0%0.6%1.6%

5.3%

2.2%

-6.5%

1.6%

5.5%

-4.1%

7.9%7.2%

8.5%

0.0%0.6%1.6%

12.6%

2.2%

-5.9%

2.9%5.5%

-4.1%

7.9% 7.2%

19

Adjusted Cash Gross Margin ScorecardMargins expanding in Aggregates, Products and Services

Aggregates Business

Adjusted Cash Gross Profit Margin (%)(1,2)

Cement Segment


Products Business


Services Business


(1) See reconciliations of Adjusted Cash Gross Profit Margin in the appendix

(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue. In this presentation of the data, Adjusted Cash Gross Profit is

calculated by line of business, less net cost of revenue by line of business

61.4% 63.9%

54.0%57.0%

2Q19 2Q20 1H19 1H20

22.3%25.4%

19.0%

22.7%

2Q19 2Q20 1H19 1H20

23.0%

31.1%

21.5%

27.1%

2Q19 2Q20 1H19 1H20

45.8%50.8%

32.7% 30.5%

2Q19 2Q20 1H19 1H20

20

Management Outlook

Tom Hill, CEO

$360

$380

$400

$420

$440

$460

$480

$500

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Last 12 Months’ Adjusted EBITDA

21

Management Outlook

▪ Positioned for stability today and growth when conditions return to normal:

✓ Strong financial position, flexible cost structure, and entrepreneurial culture

✓ Acquisition of synergistic, 100% aggregates business

✓ Greenfields aggregates projects accretive to EBITDA with discretion in spending today

✓ Bi-partisan support for public highway work with more aid possibly flowing to states

Catalysts to watch for

▪ Progress on the INVEST act, ATIA Act,

infrastructure stimulus and/or FAST act

reauthorization or continuing resolution

▪ Housing inventory in our markets

▪ Growth in low rise non-residential

22

APPENDIX

23

Aggregates Pricing Has Proven to be Resilient Throughout Periods of Demand CyclicalityConsumption and Consumption per Capita Remain Below Long-Term Trendlines and Price has Increased 70 of last 75 Years (1)

EXHIBIT 1Historical Industry Dynamics—Consumption & Price

Cement Outlook Supported by Below Trendline Consumption, High Cost of Entry and Demand Nearing CapacityConsumption and Consumption per Capita Remain Below Long-Term Trendlines(1)

(1) Source: USGS and PCA.

-

2.0

4.0

6.0

8.0

10.0

12.0

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1903

1906

1909

1912

1915

1918

1921

1924

1927

1930

1933

1936

1939

1942

1945

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

Consumption 116 Yr. Consumption Trendline Consumption per Capita 116 Yr. Consumption per Capita Trendline

-

0.10

0.20

0.30

0.40

0.50

0.60

-

25,000

50,000

75,000

100,000

125,000

150,000

1900

1903

1906

1909

1912

1915

1918

1921

1924

1927

1930

1933

1936

1939

1942

1945

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

Consumption 118 Yr. Consumption Trendline Consumption per Capita 118 Yr. per Capita Trendline

24

EXHIBIT 2Residential Housing Inventory

• Mortgage rates are at all-time lows

• Permits, starts and sales remain below historical averages on a national level

• Home ownership remains below the historical average

Fundamentals Are In Place for Extended, Steady Growth Once Economic Conditions Stabilize(1)

Estimated Months of Supply In SUM Metro Markets1

Every SUM market had below-average inventory through June 2020

(1) Source: JBREC, July 13, 2020; US National Reflects May 2020, all others reflect June2020

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Dallas, TX Fort Worth, TX Houston, TX Kansas City, MO-KS Las Vegas, NV Lexington, KY Minneapolis, MN-WI Salt Lake City, UT US National (May2020)

Wilmington, NC

June 2020 Inventory Average Inventory

25

EXHIBIT 3Positive Outlook For Infrastructure Funding

(1) Source: FHWA, ARBTA, Bloomberg.

(2) ARTBA - 2020 Transportation Construction Market Forecast, January 2020

Federal Highway Program Could See a ~5% CAGR, 2017-2022

($B) FAST Act Authorization and Additional Appropriations(1)

U.S. Construction Spending Forecast On Highway, Street, Bridge & Tunnel Related Work

Spending Rebounded in 2019 with Stable Growth Forecasted through 2023(2)

$43.3 $48.3 $49.4 $49.6

$54.4 $55.5

FY '17 Enacted FY'18 Enacted FY '19 FAST Act + AdditionalAppropriations

FY' 20 FAST Act + AdditionalAppropriations

FY '21 Projected (ARTBA) FY '22 Projected(ARTBA)

$89.4 $96.9 $98.9 $94.5 $92.3 $101.7 $106.9 $110.0 $113.3 $115.8

$52.3 $57.4 $61.6 $65.2 $67.5

$69.1 $71.8 $73.8 $75.4 $77.0

2014 2015 2016 2017 2018E 2019F 2020F 2021F 2022F 2023F

Public Highway, Steet, Bridge & Tunnel Private Highway, Street & Bridge

$141.7

$154.3

+8.9%

$160.5

+4.0%

$156.7

-.05%

$159.8

+.1%

$170.8

+6.9%

$178.7

+4.6%

$183.8

+2.9%

$188.7

+2.7%

$192.8

+2.2%

EXHIBIT 4Reconciliation of Operating Income to Adjusted Cash Gross Profit

26

(1) Adjusted Cash Gross Profit Margin defined as Adjusted Cash Gross Profit divided by Net Revenue

June 27, June 29, June 27, June 29,

Reconciliation of Operating Income to Adjusted Cash Gross Profit 2020 2019 2020 2019

($ in thousands)

Operating income $ 100,060 $ 80,422 $ 58,340 $ 22,751

General and administrative expenses 66,544 60,961 136,768 128,571

Depreciation, depletion, amortization and accretion 53,928 53,625 105,706 109,013

Transaction costs 319 390 1,072 698

Adjusted Cash Gross Profit (exclusive of items shown separately) $ 220,851 $ 195,398 $ 301,886 $ 261,033

Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1) 38.4% 35.4% 32.9% 30.4%

Six months endedThree months ended

27

EXHIBIT 5Reconciliation of Gross Revenue to Net Revenue by LOB

Volumes

Aggregates 14,901 $ 11.12 $ 165,648 $ (35,659) $ 129,989

Cement 654 116.29 76,106 (2,813) 73,293

Materials $ 241,754 $ (38,472) $ 203,282

Ready-mix concrete 1,443 116.41 167,964 (82) 167,882

Asphalt 1,755 59.48 104,373 (179) 104,194

Other Products 97,974 (85,072) 12,902

Products $ 370,311 $ (85,333) $ 284,978

Elimination/Delivery Revenue Pricing by Product

Three months ended June 27, 2020

Gross Revenue Intercompany Net

Volumes

Aggregates 26,093 $ 11.00 $ 287,121 $ (60,971) $ 226,150

Cement 954 116.26 110,864 (4,708) 106,156

Materials $ 397,985 $ (65,679) $ 332,306

Ready-mix concrete 2,686 115.31 309,773 (187) 309,586

Asphalt 2,163 58.99 127,616 (228) 127,388

Other Products 167,820 (143,533) 24,287

Products $ 605,209 $ (143,948) $ 461,261

Elimination/Delivery RevenuePricing by Product

Six months ended June 27, 2020

Gross Revenue Intercompany Net

EXHIBIT 6Reconciliation of Net Income (Loss) to Further Adjusted EBITDA

28

(1) Last twelve month (“LTM”) information corresponding to fiscal years (i.e., the periods ended December 28, 2019, December 29, 2018, and December 30, 2017, and reflects our audited historical results for such fiscal years presented in accordance with U.S. GAAP. Information presented for other LTM periods (i.e., June 27, 2020, March 28, 2020, September 28, 2019, June 29, 2019, March 30, 2019, September 29, 2018, June 30, 2018, and March 31, 2018) reflect unaudited trailing four quarter financial information calculated by starting with the results from the most recent audited fiscal year included in such LTM period and then (x) adding quarterly information for subsequent fiscal quarters and (y) subtracting quarterly information for the corresponding prior year period. For example, LTM June 27, 2020 has been calculated by starting with the data from the twelve months ended December 28, 2019 and then adding data for the six months ended June 27, 2020, followed by subtracting data for the six months ended June 29, 2019. This presentation is not in accordance with U.S. GAAP. However, we believe this information is useful to investors as we use it to evaluate our financial performance for ongoing planning purposes, including a continuous assessment of our financial performance in comparison to budgets and internal projections. We also use such LTM financial data to test compliance with covenants under our senior secured credit facilities. This presentation has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Please see our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for the relevant periods for the historical amounts used to calculate the LTM information presented.

(2) EBITDA for certain completed acquisitions, net of dispositions, is pro forma for all acquisitions completed as of the date listed. (3) Further Adjusted EBITDA is calculated using trailing four quarter financial data to test compliance with covenants under our senior secured credit facilities.(4) Adjusted EBITDA Margin defined as Adjusted EBITDA as a percentage of net revenue(5) Net Leverage defined as net debt divided by Further Adjusted EBITDA

($ in millions) June 27, June 29, June 27, June 29, June 27, March 28, December 28, September 28, June 29, March 30, December 29, September 29, June 30, March 31, December 30,

2020 2019 2020 2019 2020 2020 2019 2019 2019 2019 2018 2018 2018 2018 2017

Net income (loss) 59$ 38$ 12$ (34)$ 107$ 86$ 61$ 6$ 22$ 21$ 36$ 99$ 110$ 125$ 126

Interest expense 26 29 53 59 110 114 117 118 118 118 117 115 115 112 109

Income tax (benefit) expense 17 17 (6) (11) 23 22 17 78 53 48 60 229 (290) (299) (284)

Depreciation, depletion, amortization, and accretion expense 54 54 106 109 214 213 217 218 217 214 205 197 192 187 180

IPO/ Legacy equity modification costs - - - - - - - - - - - - - - -

Loss on debt financings - - - 15 - - 15 15 15 15 - 5 5 5 5

Gain on sale of business - - - - - - - - (12) (12) (12) (12) - - -

Goodwill impairment - - - - - - - - - - - - - - 0

Tax receivable agreement expense - - - - 16 16 16 (23) (23) (23) (23) (232) 269 271 271

Acquisition transaction expenses - - 1 1 3 3 2 2 2 3 4 5 6 8 8

Non-cash compensation 5 5 10 11 20 19 20 21 22 23 25 27 26 25 21

Other (1) (3) 1 (3) (2) (2) (4) (1) (2) - (6) (6) (5) (6) -

Adjusted EBITDA 160$ 140$ 177$ 147$ 491$ 471$ 461$ 434$ 412$ 407$ 406$ 427$ 428$ 428$ 436$

EBITDA for certain completed acquisitions (2) - - - - - 1 2 6 11 22 17

Further Adjusted EBITDA (3) 491$ 471$ 461$ 434$ 412$ 408$ 408$ 433$ 439$ 450$ 453$

Net Revenue 575$ 553$ 918$ 859$ 2,090$ 2,067$ 2,031$ 1,969$ 1,929$ 1,925$ 1,909$ 1,905$ 1,854$ 1,783$ 1,752$

Adjusted EBITDA Margin (4) 27.9% 25.4% 19.2% 17.1% 23.5% 22.8% 22.7% 22.0% 21.4% 21.2% 21.3% 22.4% 23.1% 24.0% 24.9%

Net Debt 1,717$ 1,774$ 1,667$ 1,820$ 1,938$ 1,940$ 1,828$ 1,845$ 1,866$ 1,760$ 1,551$

Total Net Leverage (5) 3.5x 3.8x 3.6x 4.2x 4.7x 4.8x 4.5x 4.3x 4.3x 3.9x 3.4x

Three months ended Six months ended Last Twelve Months Ended (1)

EXHIBIT 7Non-GAAP Reconciliation of Long-Term Debt to Net Debt

29

Reconciliation of Long-term Debt to Net Debt

($ in millions) Q2'20 Q1'20 Q4'19 Q3'19 Q2'19 Q1'19 Q4'18 Q3'18 Q2'18 Q1'18 Q4'17

Long-term debt, including current portion 1,871$ 1,873$ 1,874$ 1,876$ 1,876$ 1,877$ 1,831$ 1,831$ 1,832$ 1,834$ 1,835$

Acquisition related liabilities 42 42 48 71 71 72 77 37 38 60 64

Finance leases and other 57 58 56 56 59 56 49 42 46 44 36

Less: Cash and cash equivalents (253) (199) (311) (183) (68) (65) (129) (65) (50) (178) (384)

Net debt 1,717$ 1,774$ 1,667$ 1,820$ 1,938$ 1,940$ 1,828$ 1,845$ 1,866$ 1,760$ 1,551$

EXHIBIT 8Non-GAAP Reconciliation of Net Income (Loss) to Adj. EBITDA

30(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue

Reconciliation of Net Income (Loss) to Adjusted

EBITDA by Segment

($ in thousands)

Net income (loss) $ 57,040 $ 32,206 $ 29,386 $ (59,745) $ 58,887

Interest expense (income) (709) (433) (3,116) 29,866 25,608

Income tax expense 1,054 (36) — 16,163 17,181

Depreciation, depletion and amortization 22,050 21,014 9,291 992 53,347

EBITDA $ 79,435 $ 52,751 $ 35,561 $ (12,724) $ 155,023

Accretion 115 380 86 — 581

Transaction costs — — — 319 319

Non-cash compensation — — — 4,892 4,892

Other (607) 253 — (229) (583)

Adjusted EBITDA $ 78,943 $ 53,384 $ 35,647 $ (7,742) $ 160,232

Adjusted EBITDA Margin (1) 26.4% 26.6% 47.1% 27.9%

East Cement Corporate ConsolidatedWest



EBITDA by Segment

($ in thousands)

Net income (loss) $ 30,739 $ 35,175 $ 27,917 $ (55,841) $ 37,990

Interest expense 751 1,047 (2,345) 29,948 29,401

Income tax expense (benefit) 777 64 — 15,866 16,707

Depreciation, depletion and amortization 22,784 19,540 9,719 992 53,035

EBITDA $ 55,051 $ 55,826 $ 35,291 $ (9,035) $ 137,133

Accretion 140 300 150 — 590

Loss on debt financings — — — — —

Transaction costs 11 — — 379 390


Other (382) (1,714) — (250) (2,346)

Adjusted EBITDA $ 54,820 $ 54,412 $ 35,441 $ (4,207) $ 140,466


CementEast


Corporate ConsolidatedWest

EXHIBIT 9Non-GAAP Reconciliation of Net Income (Loss) to Adj. EBITDA

31(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue


EBITDA by Segment

($ in thousands)

Net loss $ 57,538 $ 21,139 $ 17,108 $ (83,624) $ 12,161

Interest expense (income) (1,287) (1,002) (6,292) 62,007 53,426

Income tax expense (benefit) 587 (165) — (6,142) (5,720)

Depreciation, depletion and amortization 43,734 41,734 17,099 1,981 104,548

EBITDA $ 100,572 $ 61,706 $ 27,915 $ (25,778) $ 164,415

Accretion 231 756 171 — 1,158

Transaction costs — — — 1,072 1,072


Other 608 495 — (899) 204

Adjusted EBITDA $ 101,411 $ 62,957 $ 28,086 $ (15,808) $ 176,646



West East Cement Corporate Consolidated


EBITDA by Segment

($ in thousands)

Net income (loss) $ 21,187 $ 16,808 $ 17,349 $ (88,855) $ (33,511)

Interest expense (income) 1,494 2,055 (4,664) 60,621 59,506

Income tax expense (benefit) 334 118 — (11,782) (11,330)

Depreciation, depletion and amortization 46,580 39,445 19,873 1,944 107,842

EBITDA $ 69,595 $ 58,426 $ 32,558 $ (38,072) $ 122,507

Accretion 269 606 296 — 1,171

Loss on debt financings — — — 14,565 14,565

Transaction costs 11 — — 687 698


Other (757) (1,378) — (357) (2,492)

Adjusted EBITDA $ 69,118 $ 57,654 $ 32,854 $ (12,572) $ 147,054



West East Cement Corporate Consolidated

EXHIBIT 10Non-GAAP Reconciliation of Net Income(Loss) to Adj. Diluted Net Income (Loss)

32

(In thousands, except share and per share amounts)

Net income (loss) attributable to Summit Materials, Inc. $ 57,064 $ 0.49 $ 36,410 $ 0.32 $ 12,085 $ 0.10 $ (32,362) $ (0.28)

Adjustments:

Net income (loss) attributable to noncontrolling

interest 1,823 0.01 1,580 0.01 76 — (1,149) (0.01)

Adjustment to acquisition deferred liability — — (2,000) (0.02) — — (2,000) (0.02)

Loss on debt financings — — — — — — 14,565 0.13

Adjusted diluted net income (loss) before tax related

adjustments 58,887 0.50 35,990 0.31 12,161 0.10 (20,946) (0.18)

Changes in unrecognized tax benefits — — — — (9,537) (0.08) — —

Adjusted diluted net income (loss) $ 58,887 $ 0.50 $ 35,990 $ 0.31 $ 2,624 $ 0.02 $ (20,946) $ (0.18)

Weighted-average shares:

Basic Class A common stock 114,111,204 112,070,009 113,856,657 111,940,844

LP Units outstanding 3,053,115 3,418,018 3,103,672 3,422,318

Total equity units 117,164,319 115,488,027 116,960,329 115,363,162

Per Equity Unit Net Loss Per Equity UnitNet Income Per Equity Unit Net Income Per Equity Unit Net Income

Three months ended Six months endedReconciliation of Net Income (Loss) Per Share to

Adjusted Diluted EPS June 29, 2019 June 27, 2020 June 29, 2019June 27, 2020

EXHIBIT 11Non-GAAP Reconciliation of Adj. Cash Gross Profit by LOB

33

(1) Net revenue for the cement line of business excludes revenue associated with hazardous and non-hazardous waste, which is processed into fuel and used in the cement plants and is included in services net revenue. Additionally, net revenue from cement swaps and other cement-related products are included in products net revenue.

(2) Adjusted cash gross profit calculated as net revenue by line of business less net cost of revenue by line of business. Adjusted cash gross profit margin is defined as adjusted cash gross profit divided by net revenue.(3) The cement adjusted cash gross profit includes the earnings from the waste processing operations, cement swaps and other products. Cement line of business adjusted cash gross profit margin defined as cement adjusted

cash gross profit divided by cement segment net revenue.

($ in thousands)

Segment Net Revenue:

West $ 299,024 $ 273,306 $ 483,516 $ 441,535

East 200,554 194,738 320,543 295,153

Cement 75,662 84,547 113,587 121,853

Net Revenue $ 575,240 $ 552,591 $ 917,646 $ 858,541

Line of Business - Net Revenue:

Materials

Aggregates $ 129,989 $ 128,650 $ 226,150 $ 216,522

Cement (1) 73,293 77,799 106,156 110,298

Products 284,978 261,188 461,261 412,458

Total Materials and Products 488,260 467,637 793,567 739,278

Serv ices 86,980 84,954 124,079 119,263

Net Revenue $ 575,240 $ 552,591 $ 917,646 $ 858,541

Line of Business - Net Cost of Revenue:

Materials

Aggregates $ 46,923 $ 49,652 $ 97,186 $ 99,542

Cement 34,891 39,112 71,542 70,463

Products 212,661 203,035 356,588 333,890

Total Materials and Products 294,475 291,799 525,316 503,895

Serv ices 59,914 65,394 90,444 93,613

Net Cost of Revenue $ 354,389 $ 357,193 $ 615,760 $ 597,508

Line of Business - Adjusted Cash Gross Profit (2):

Materials

Aggregates $ 83,066 $ 78,998 $ 128,964 $ 116,980

Cement (3) 38,402 38,687 34,614 39,835

Products 72,317 58,153 104,673 78,568

Serv ices 27,066 19,560 33,635 25,650

Adjusted Cash Gross Profit $ 220,851 $ 195,398 $ 301,886 $ 261,033

Adjusted Cash Gross Profit Margin (2)

Materials

Aggregates 63.9% 61.4% 57.0% 54.0%

Cement (3) 50.8% 45.8% 30.5% 32.7%

Products 25.4% 22.3% 22.7% 19.0%

Serv ices 31.1% 23.0% 27.1% 21.5%

Total Adjusted Cash Gross Profit Margin 38.4% 35.4% 32.9% 30.4%

Three months ended

June 27, June 29,

2020 2019

June 29,

Six months ended

2020 2019

June 27,

EXHIBIT 12Free Cash Flow

34

($ in thousands)

Net income (loss) $ 58,887 $ 37,990 $ 12,161 $ (33,511)

Non-cash items 74,346 71,751 110,013 107,830

Net income (loss) adjusted for non-cash items 133,233 109,741 122,174 74,319

Change in working capital accounts (32,601) (63,117) (60,473) (58,371)

Net cash provided by operating activities 100,632 46,624 61,701 15,948

Capital expenditures, net of asset sales (40,448) (38,173) (99,117) (97,564)

Free cash flow $ 60,184 $ 8,451 $ (37,416) $ (81,616)

June 27, June 29,

2020 2019 2020 2019

June 27, June 29,

Six months endedThree months ended

35

Summit Materials, LLC Financials

Capital Structure Slide

($ in Millions) Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Int. Rates Maturity

Cash $67.7 $182.6 $311.3 $199.1 $253.4 0.36% n/a

Debt:

Revolver1-- -- -- -- -- 3.45% Feb-2024

Senior Secured Term Loans $625.8 $625.8 $624.3 $622.7 $621.1 2.17% Nov-2024

Capital Leases and Other $58.9 $56.4 $56.4 $58.0 $57.4 5.50% Various

Senior Secured Debt $684.8 $682.2 $680.7 $680.7 $678.5 2.46%

Acq.-related Liab. $71.2 $70.5 $47.9 $41.7 $42.3 10.00% Various

5.125% Senior Notes $300.0 $300.0 $300.0 $300.0 $300.0 5.125% Jun-2025

6.5% Senior Notes $300.0 $300.0 $300.0 $300.0 $300.0 6.50% Mar-2027

6.125% Senior Notes $650.0 $650.0 $650.0 $650.0 $650.0 6.125% Jul-2023

Senior Unsecured Debt $1,321.2 $1,320.5 $1,297.9 $1,291.7 $1,292.3 6.11%

Total Debt $2,005.9 $2,002.8 $1,978.5 $1,972.4 $1,970.8 4.85%

Net Senior Secured Debt $617.1 $499.6 $369.4 $481.6 $425.1

Net Total Debt $1,938.3 $1,820.2 $1,667.2 $1,773.3 $1,717.4

Est. Annual Cash Int. Run Rate $113.9 $111.5 $107.4 $102.4 $97.3

LTM Further Adj. EBITDA $411.9 $434.0 $461.5 $471.3 $491.1

Net Senior Secured Leverage 1.5x 1.2x 0.8x 1.0x 0.9x

Total Net Leverage 4.7x 4.2x 3.6x 3.8x 3.5x

1 Revolver Capacity post-usage for (undrawn) Letters of Credit is $329.1M as of 6/27/20

EXHIBIT 13Capital Structure

Documents

Q2 2020 Summit Materials Conference Call Presentation · This presentation includes “forward-looking statements”within the meaning of the federal securities laws, which involve