Simpson Manufacturing (SSD) CJS Securities 25th Annual “New Ideas for the New Year” Investor Conferenc summary

Business overview and market positioning

• Provides critical structural solutions for building construction, with a focus on engineered connectors, fasteners, anchors, and digital solutions.

• Operates across five end-use markets: residential, commercial, OEM, national retail, and component manufacturers.

• Holds a 75% share in the connector market and emphasizes innovation and a broad product line.

• Business model leverages long-standing relationships with engineers, code officials, builders, and channel partners, creating strong demand and sticky customer relationships.

• Digital solutions and software are increasingly integrated to enhance customer experience and drive future monetization.

Financial performance and growth drivers

• Achieved significant growth in a flat housing market, adding $1.2 billion in revenue and $200 million in operating profit since 2020.

• Growth attributed to pricing retention, European acquisition (Etanco), and share gains.

• Outperformed U.S. housing starts by 250 basis points over eight years, accelerating to 800 basis points above market in the last two years.

• Focused on executing specific product and market playbooks to drive above-market growth.

• Largest risk remains a broad-based market slowdown, with growth expected to be back-half loaded in 2025.

Operational strategy and risk management

• Maintains local manufacturing focus, sourcing U.S. steel and expanding domestic production to mitigate tariff risks.

• Immigration policy changes could impact construction workforce and housing formation, but short-term headwinds are limited.

• Visibility into end-market demand remains volatile, leading to a more conservative approach in early 2025.

• European business outperformed a declining market; 2025 growth expected at 1% with midterm optimism for higher growth.

• Defensive synergies from Etanco acquisition are on track, with offensive synergies paused until market recovery.