Simpson Manufacturing (SSD) Investor presentation summary

Investment highlights and business model

• Leading provider of structural solutions for wood connections with strong brand recognition and diversified offerings across five end-use markets.

• Maintains strong gross profit and operating margins, with a 19.6% EPS CAGR over the last decade.

• Returns over 53% of free cash flow to stockholders since 2021, exceeding its 35% target.

• Holds a robust balance sheet with less than 1x leverage.

• Customer-centric approach with extensive R&D, technical support, and high product availability.

Market position and growth

• Achieved a compound annual growth rate of ~14% since IPO in 1994, with revenue growing 15x and EPS 59x.

• Holds significant market share in wood connectors, fastening systems, and concrete/steel connections, with opportunities for further growth.

• Outperformed U.S. housing market volume growth by an average of 3 percentage points since 2020.

• Expanded European business and improved market leadership in connectors, fasteners, and anchors.

Strategic initiatives and innovation

• Invests in digital solutions to streamline product specification, ordering, and customer partnerships.

• Expanded manufacturing capacity in North America with new facilities in Ohio and Tennessee to support growth and reduce import dependence.

• Pursues targeted M&A to expand product lines, improve manufacturing, and enhance supply chain efficiency.

• Focuses on innovation with 8 R&D labs, 500+ patents, and partnerships with academia for advanced testing.