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  • 1. Ply Gem Industries JP Morgan SMid Cap Conference December 10, 2013
  • 2. Legal Disclaimer These slides and the accompanying oral discussion contain certain statements that are not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed in or implied by our forward-looking statements, including the availability and cost of raw materials and purchased components, the level of construction and remodeling activity, changes in general economic and business conditions, conditions affecting the industries we serve and our customers, the rate of sales growth, availability of labor force and efficiencies, product liability claims, our high degree of leverage and other factors discussed in the Company’s news releases, public statements and/or filings with the Securities and Exchange Commission, including the Company’s most recent Annual and Quarterly Reports on Form 10-K and Form 10-Q. Many of these factors are outside of the Company’s control and all of these factors are difficult or impossible to predict accurately. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, these slides and the accompanying oral discussion reference non-GAAP financial measures, such as adjusted EBITDA. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in our earnings releases posted on www.plygem.com. 1
  • 3. Management Presenters •President and Chief Executive Officer since 2006 Gary Robinette President and CEO Shawn Poe Vice President and CFO 2 •30+ years of experience with building products and distribution companies •Prior to joining Ply Gem, served as Executive Vice President and COO of Stock Building Supply •Vice President and Chief Financial Officer since 2004 •22+ years of experience •Prior to his current role, served as VP of Finance of siding and accessories subsidiaries
  • 4. Ply Gem’s Profile One of the largest manufacturers of exterior building and home improvement products in North America Nearly$1.5Billioninsales Approx6,700associates 45% 55% 55% WINDOWS 45% SIDING NEW CONSTRUCTION REPLACEMENT 3
  • 5. Ply Gem’s Market Provider of branded products for new construction and home improvement markets sold through many channels of distribution covering most price points. #1 #1 #1 #1 4 Vinyl Siding Aluminum Accessories Vinyl and Aluminum Windows Western Canada (Windows)
  • 6. NA Footprint Window Manufacturing Siding / Access Manufacturing Fence + Rail Manufacturing Corporate / HQ Stone Manufacturing Window Distribution - Canada Siding Distribution - Canada 5  23 manufacturing plants  30 distribution centers  On-time delivery
  • 7. Product Categories Gable vents and accessories Gutter protection systems Vinyl and aluminum soffit Window mantles Manufactured Stone Vinyl and aluminum siding Shutters Mounting Blocks Decorative corner posts Rain removal systems Door surround systems Patio Doors Windows Railing and Fencing Composite Rail Outdoor Structures Exterior Doors New Window Technology PVC Trim uite of New Exterior Products 6
  • 8. Siding Group Market Leader in Vinyl Siding Why We Win Key Brands • #1 vinyl siding manufacturer in North America (with approx. 40% share in the US) • Consolidated industry with 4 participants holding over 90% share • Strong trade brands • Multi-channel distribution network servicing both new construction and R&R North American Market Summary $ millions ~$5,300 • State-of-the-art automated manufacturing facilities with capacity to support planned growth ~$1,800 Exterior Cladding Market Size Vinyl Siding Market Size Market size: According to Principia Partners 7 $658 Ply Gem 2012 Net Sales
  • 9. Window Group Leader in Vinyl and Aluminum Windows Why We Win Key Brands • #1 vinyl & aluminum window manufacturer in the US • #1 window & door manufacturer in Western Canada (post-acquisitions) • Multi-channel distribution network servicing both new construction and R&R covering every price point • Highly efficient, vertically integrated production • Continued to gain market share during North American Market Summary $ millions ~$9,000 downturn $463 Market Size Ply Gem 2012 Net Sales Market size: Company estimate – New construction and R&R 8
  • 10. Strategic Excellentcustomer service Measure, Engagement Brand management Priorities Customer Focus TalentManagement Succession Plan Communicate & empower Human Resources Innovation LEVERAGE NewProducts Utilizetechnology (Products /operations) Sustainability Profitable Growth Safety Lowcost High quality standard 9 Continuous Improvement Improve business diversity Double digit growth Cross sellour products
  • 11. Strategic Evolution “Ply Gem’s Future” 2013 to A Market Leader A Ply Gem Brand Organic Growth (Market Share) Coordinated back office New Products and Share Executive Dev & Succession 10 2017 The Market Innovator The Leading Brand Growth Through Strategic Acquisitions Lean through Technology New Channels and Markets Our Future Leaders
  • 12. The Designed Complete Exterior Solution Offering for Customers Exterior • Provides differentiation for Ply Gem customers • • • • BEFORE 11 Alexandria, VA Designed Exterior Remodel Provides a single sourcing opportunity Hits the sweet spot of an emerging trend Features NAHB Green Approved products Fulfills the “One Ply Gem” MISSION AFTER Three Weeks later using The Designed Exterior concept
  • 13. Innovation Foundation Labs The Culture of Innovation New Products Open Innovation Partnerships Suppliers/Partners Universities Innovation into Collaboration Hire Innovation Compensation Structure Platform Officer 12
  • 14. Priority #1 Safety A world class safety record is Job #1 Recordable Incident Rate Ply Gem Industries, Inc. 8.00 7.00 WORLD CLASS 7.26 TRR 6.00 7.11 6.65 5.00 5.42 5.47 5.21 5.27 1.81 1.76 1.58 1.85 1.94 2009 2010 2011 2012 Q3 2013 4.00 3.00 3.99 3.98 3.30 2.00 1.00 0.00 2006 2007 2008 Year 13 Ply Gem Combined National Trend
  • 15. Market and Housing Update
  • 16. Crisis of Confidence is Starting to Improve… 7.3% 5.4% 81.5% 15 Source: Zillow, Census, Conference Board
  • 17. SFHS Forecasted to Increase Single-Family Multi-Family 2,500 2,073 2,000 354 338 1,500 75% 1,812 1,342 306 1,000 1,719 1,152 900 284 1,474 1,036 500 1,518 616 612 178 783 924 326 296 554 112 585 114 442 471 434 537 629 2009 2010 2011 2012 2013E 247 357 826 1,161 0 2005 16 Source: NAHB 2006 2007 2008 2014E 2015E
  • 18. Canada SFHS Forecast Single-Family Multi-Family 250 200 106 109 118 150 112 94 83 2010 2011 131 105 106 84 78 81 2012 2013E 2014E 73 100 50 97 121 119 93 76 0 2006 Source: CMHC 17 2007 2008 2009
  • 19. Top Growth Products for Replacement Contractors 60 55 50 40 30 30 27 25 24 20 21 13 10 10 8 Windows Siding Doors Roofing Bathtubs & Showers Decking Flooring Kitchen Cabinets Water Pipes 0 18 WDMA Market Outlook 2014 Source: Hanley Wood August 2013 Audience Survey
  • 20. Growth will be in Healthier Markets Market Health Index 19
  • 21. Financial Overview
  • 22. Ply Gem Results 3rd Qtr & 9 Month Highlights (Operating Earnings Excludes IPO & Acquisition Cost) 9 Month Results Q3 2013 Gross Profit $84.2 $70.7 Operating Earnings $852.7 $1,032.7 YTD 2012 YTD 2013 $200.3 $187.0 Q3 2013 YTD 2013 $32.2 Q3 2012 $59.4 $27.3 Q3 2012 21 Net Sales Q3 2012 $407.4 Gross Profit $306.2 Q3 2013 Operating Earnings Net Sales Third Quarter Results YTD 2013 $58.0 YTD 2012 YTD 2013
  • 23. Gross Margin Summary Q3 2012 Gross Margins New customer win costs 23.1% -0.4% Restructuring charges -0.4% Acquisition related costs -0.3% Volume 1.0% One-Time Changes -1.1% Siding Aluminum Price -0.7% Windows Product Mix -1.0% Windows Ramp-up Costs -0.7% Q3 2013 Gross Margins 22 20.7% Quarterly timing of price to aluminum material cost Recovered on an annualized basis expected Outsized growth of our lower end aluminum window products New Construction window unit volume up 37%
  • 24. Financial Summary Q313 LTM Net Sales = $1.3 Billion • Ply Gem continues to outperform the market • SFHS down 48% from ‘07 to ‘12, Ply Gem down 17.8% • Market share gains of over $350 million from 2007 to 2011 • Numerous new customer wins as Ply Gem is a clear Ply Gem sales $1,400 $1,200 $1,000 $800 industry leader $600 • Gienow & Mitten acquisitions contribute $108 to ‘13 2007 2008 2009 2010 2011 2012 2013 LTM LTM Sales • Customer mix is well balanced at approx. 55%/45% 2007 23 2010 2011 2012 2013 LTM 1,036 616 442 471 434 535 616 (40.5)% (28.2)% 6.5% (8.1)% 23.3% 15.1% $1,363.5 $1,175.0 $951.4 $995.9 $1,034.9 $1,121.3 $1,301.3 (13.4)% Ply Gem Net Sales 2009 (29.7)% Single Family Housing Starts 2008 (13.8)% (19.0)% 4.7% 3.9% 8.4% 16.1%