| --- | --- | --- | |-------|---------------------------|-------| | | | | | | | | | | | | | | UFP INDUSTRIES March 2020 | | | 1 | | | UNIVERSAL FOREST PRODUCTS, INC. (d/b/a UFP Industries) Please be aware that: Statements included in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and are based on management's beliefs, assumptions, current expectations, estimates, and projections about the markets we serve ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business.) UFP Industries, a global holding company, supplies wood and wood-alternative products to retail, industrial, and construction markets, with a 2020 reorganization aligning with these segments [General Development of the Business](index=4&type=section&id=General%20Development%20of%20the%20Business.) Universal Forest Products, Inc. is now known as UFP Industries, a global holding company supplying wood and wood-alternative products - Universal Forest Products, Inc. is now known as **UFP Industries**[15](index=15&type=chunk) - The company is a holding company with subsidiaries across North America, Europe, Asia, and Australia, supplying wood, wood composite, and other products to retail, industrial, and construction markets[15](index=15&type=chunk) - Effective January 1, 2020, management reorganized operations around the markets it serves (retail, industrial, construction) instead of geography[18](index=18&type=chunk)[55](index=55&type=chunk) [Financial Information About Segments](index=4&type=section&id=Financial%20Information%20About%20Segments.) The company's operating segments were reorganized on January 1, 2020, from geographical divisions to market-focused segments: retail, construction, and industrial - Prior operating segments included Northern, Southern, and Western divisions as stand-alone reportable segments[18](index=18&type=chunk) - Alternative Materials, International, idX, and Corporate business units were aggregated into the 'All Other' reportable segment[18](index=18&type=chunk) - Beginning January 1, 2020, the company's operations are managed through three business segments: retail, construction, and industrial[18](index=18&type=chunk)[55](index=55&type=chunk) [Narrative Description of Business](index=4&type=section&id=Narrative%20Description%20of%20Business.) This section details the company's business operations across its retail, industrial, and construction markets, including supplier relationships, intellectual property, backlog, environmental considerations, seasonality, and employee information [Retail Market](index=4&type=section&id=Retail.) The retail market segment, with Home Depot as a key customer, offers dimensional lumber and outdoor living products, leveraging broad product lines and service capabilities - The Home Depot accounted for approximately **19% of total sales** in fiscal 2019, 2018, and 2017[20](index=20&type=chunk)[43](index=43&type=chunk) - Products include dimensional lumber (preserved and unpreserved), outdoor living products (decking, accessories, lawn/garden), and engineered wood components, sold under trademarks like ProWood and Deckorators[22](index=22&type=chunk)[23](index=23&type=chunk) - Competitive advantages stem from product breadth, geographic dispersion, proximity to customers, purchasing/manufacturing expertise, and service capabilities[24](index=24&type=chunk) [Industrial Market](index=5&type=section&id=Industrial%20Market.) The industrial market serves manufacturers and agricultural customers with pallets, crates, and packaging, often utilizing by-products and facing fragmented competition - Serves manufacturers and agricultural customers with pallets, specialty crates, wooden boxes, and other packaging/material handling products[25](index=25&type=chunk) - Many products are produced from by-products of other manufactured goods, increasing raw material yields[25](index=25&type=chunk) - Competition in this market is fragmented[25](index=25&type=chunk) [Construction Market](index=5&type=section&id=Construction%20Market.) The construction market encompasses manufactured housing, residential, and commercial submarkets, providing engineered wood components and customized interior fixtures - Comprises manufactured housing, residential construction, and commercial construction submarkets[26](index=26&type=chunk) - Products include roof trusses, custom-cut lumber, plywood, OSB, dimensional lumber for manufactured housing, and engineered wood components (trusses, wall panels, I-joists) for residential/light commercial projects[27](index=27&type=chunk)[28](index=28&type=chunk) - The commercial market includes idX Holdings, Inc., which designs, manufactures, and installs customized interior fixtures[29](index=29&type=chunk) - Competitive advantages include product knowledge, engineering support, proximity to customers, purchasing/manufacturing expertise, and providing comprehensive turn-key packages[27](index=27&type=chunk)[28](index=28&type=chunk) [Suppliers](index=5&type=section&id=Suppliers.) The company is a major buyer of softwood lumber and other wood-based products, with significant annual purchases and competitive advantages in raw material procurement - One of the largest domestic buyers of solid sawn softwood lumber, with annual purchases of approximately **$1.4 billion**[30](index=30&type=chunk)[31](index=31&type=chunk) | Species | Percent of Total Lumber Purchases | | :--- | :--- | | Southern Yellow Pine | 64% | | Spruce-Pine-Fir | 19% | | Douglas Fir | 3% | | Various other species and imports | 14% | - Additionally, approximately **$0.5 billion** is spent annually on plywood, oriented strand board (OSB), and other wood-based products[31](index=31&type=chunk) - Financial resources, size, strong sales network, and remanufacturing ability provide a competitive advantage in purchasing raw materials[32](index=32&type=chunk) [Intellectual Property](index=6&type=section&id=Intellectual%20Property.) The company holds various patents and trademarks, none of which are considered materially adverse if lost - Owns several patents and has pending patents related to its business technologies[33](index=33&type=chunk) - Owns numerous registered trademarks and claims common law trademark rights to others[33](index=33&type=chunk) - The loss of a patent or any trademark is not expected to have a material adverse impact on the company's competitive position[33](index=33&type=chunk) [Backlog](index=6&type=section&id=Backlog.) Backlog information is primarily relevant for customized interior fixtures and construction businesses, with most orders expected to be filled within the next fiscal year - Backlog information is not meaningful for retail and industrial businesses due to short order-to-shipment times[34](index=34&type=chunk) Estimated Backlog Orders (Millions USD) | Business Type | December 28, 2019 | December 29, 2018 | | :--- | :--- | :--- | | Customized Interior Fixtures | $75.0 | $75.4 | | Construction Businesses | $110.1 | $95.1 | - Most backlog orders are expected to be filled within the next fiscal year[35](index=35&type=chunk)[36](index=36&type=chunk) [Environmental](index=6&type=section&id=Environmental.) Environmental disclosures are incorporated by reference from Note L of the Consolidated Financial Statements - Environmental disclosures are incorporated by reference from Note L of the Consolidated Financial Statements[37](index=37&type=chunk) [Seasonality](index=6&type=section&id=Seasonality.) Seasonality disclosures are incorporated by reference from Item 1A. Risk Factors, specifically regarding how seasonality and weather conditions could adversely affect the company - Seasonality disclosures are incorporated by reference from Item 1A. Risk Factors, specifically regarding how seasonality and weather conditions could adversely affect the company[37](index=37&type=chunk) [Employees](index=6&type=section&id=Employees.) As of December 28, 2019, the company had approximately 12,000 employees - As of December 28, 2019, the company had approximately **12,000 employees**[37](index=37&type=chunk) [Available Information](index=6&type=section&id=Available%20Information.) The company provides its annual, quarterly, and current reports, along with amendments and its Code of Ethics, free of charge on its investor relations website - The company makes its annual (10-K), quarterly (10-Q), and current (8-K) reports, along with amendments and its Code of Ethics for Senior Financial Officers, available free of charge on its investor relations website (www.ufpi.com)[38](index=38&type=chunk) [Reports to Security Holders](index=6&type=section&id=Reports%20to%20Security%20Holders.) This section is not applicable - Not applicable[39](index=39&type=chunk) [Enforceability of Civil Liabilities Against Foreign Persons](index=7&type=section&id=Enforceability%20of%20Civil%20Liabilities%20Against%20Foreign%20Persons.) This section is not applicable - Not applicable[40](index=40&type=chunk) [Item 1A. Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors.) The company faces various risks including currency fluctuations, commodity price volatility, market cyclicality, customer concentration, and operational challenges from restructuring and external factors Impact of U.S. Dollar Exchange Rates (2019) | Metric | Value (Millions USD) | | :--- | :--- | | Import Purchases | $472.4 | | Export Sales | $111.3 | Lumber Costs as Percentage of Gross Sales | Year | Percentage of Gross Sales | | :--- | :--- | | 2019 | 42.7% | | 2018 | 50.6% | | 2017 | 49.1% | - Sales to The Home Depot comprised **19% of total sales** in 2019, 2018, and 2017[43](index=43&type=chunk) Healthcare Costs (Millions USD) | Year | Costs | | :--- | :--- | | 2019 | $69.1 | | 2018 | $69.2 | | 2017 | $58.9 | Transportation Costs as Percentage of Sales | Year | Percentage of Sales | | :--- | :--- | | 2019 | 9.5% | | 2018 | 9.3% | | 2017 | 9.0% | - U.S. import of Canadian Softwood Lumber was approximately **$249.5 million** in 2019, representing the primary imported commodity impacted by tariffs[54](index=54&type=chunk) - The

Universal Forest Products, Inc. (NASDAQ:UFPI) Q4 2019 Earnings Conference Call February 20, 2020 8:30 AM ET Company Participants Dick Gauthier - Vice President, Business Outreach Matt Missad - Chief Executive Officer Mike Cole - Chief Financial Officer Conference Call Participants Ketan Mamtora - BMO Capital Markets Steve Chercover - D. A. Davidson Julio Romero - Sidoti Reuben Garner - Benchmark Jay McCanless - Wedbush Operator Ladies and gentlemen, thank you for standing by and welcome to the Q4 2019 UFP I ...

Universal Forest Products, Inc. (NASDAQ:UFPI) Q3 2019 Results Earnings Conference Call October 24, 2019 8:30 AM ET Company Participants Brandon Froysland - Director of Finance Matthew Missad - CEO & Director Michael Cole - CFO & Treasurer Conference Call Participants Ketan Mamtora - BMO Capital Markets Steve Chercover - Davidson Reuben Garner - Seaport Global Operator Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2019 Universal Forest Products Earnings Conference Call. At this time ...

Universal Forest Products, Inc. (NASDAQ:UFPI) Q2 2019 Earnings Conference Call July 25, 2019 8:30 AM ET Company Participants Brandon Froysland - Director of Finance Matthew Missad - CEO & Director Michael Cole - CFO & Treasurer Lynn Afendoulis - Director, Corporate Communications Conference Call Participants Ketan Mamtora - BMO Capital Markets Reuben Garner - Seaport Global Securities Steven Chercover - D.A. Davidson & Co. Daniel Jacome - Sidoti & Company Operator Good day, ladies and gentlemen, and welcome ...

Financial Data and Key Metrics Changes - Net sales reached a record $1.02 billion for the quarter, up 2% over 2018, with unit sales growing by 7% [6] - Earnings per share was $0.58 compared to $0.53 in 2018, with earnings up 28% when excluding a $7 million gain in 2018 [6] - EBITDA for the quarter was $65.9 million, up 25% over 2018 [6] - Gross profit dollars per unit grew by 18%, more than double the unit sales increase [7] - Overall sales increased by 2%, driven by a 7% increase in unit sales, partially offset by a 5% decrease in selling prices [28] Business Line Data and Key Metrics Changes - Retail market sales decreased by $13 million or 3%, with a 6% decline in selling prices offset by a 3% organic unit increase [29] - Industrial market sales increased by 15%, driven by a 16% increase in units, with acquisitions contributing 10% to unit growth [31] - Construction market sales decreased by 3%, with a 5% organic unit increase offset by an 8% decrease in selling prices [32] - Unit sales to manufactured housing customers decreased due to a decline in industry production of more than 11% [33] Market Data and Key Metrics Changes - The Southern Yellow Pine lumber market averaged 12.9% lower than 2018, with the Random Lengths Composite Index down 26.5% on average from 2018 [9] - The retail market finished the quarter strong, with March showing better volume than expected after a slow February [12] - In commercial construction, unit sales grew 15%, while the industrial market saw unit sales grow 16% [19] Company Strategy and Development Direction - The company aims to be the complete industrial packaging solution provider and is aggressively pursuing acquisition targets [20] - Capital allocation strategy prioritizes acquisitions, greenfield growth, and automation efficiency projects [21] - The company plans to expand production capacity significantly within the next 12 months [16] Management's Comments on Operating Environment and Future Outlook - Management noted that demand has not caught up with added capacity in the lumber market, impacting pricing [52] - There is optimism regarding order files and construction markets, with expectations of continued demand through Q3 [55] - Management acknowledged areas for improvement, particularly in SG&A growth and production labor challenges [24][25] Other Important Information - The company plans to spend approximately $95 million for capital expenditures this year, including significant projects to enhance productivity [41] - The trailing 12-month return on invested capital is 12.5%, exceeding the weighted average cost of capital [45] Q&A Session All Questions and Answers Question: Insights on lumber markets and pricing trends - Management indicated that demand has not caught up with supply, leading to pricing challenges, but expects alignment in Q2 [52][54] Question: End market demand outlook for Q2 - Management reported strong order files and positive trends in construction markets, expecting continued demand [55] Question: M&A pipeline expectations for 2019 - Management expressed confidence in a strong M&A pipeline, focusing on industrial targets and smaller acquisitions [56][57] Question: Growth expectations across different markets - Management anticipates modest growth in retail and construction, with strong performance expected in the industrial market [63][64] Question: Insights on new mill capacity and its impact on lumber prices - Management noted new mills coming online and their potential impact on market pricing, emphasizing the need for demand to meet supply [80][82] Question: Dividend policy and potential for quarterly payments - Management is open to considering a quarterly dividend if it becomes significant enough for shareholders [84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 29, 2018. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period of ____ to _____. Commission File No.: 0‑22684 UNIVERSAL FOREST PRODUCTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporat ...

Universal Forest Products, Inc (NASDAQ:UFPI) Q4 2018 Earnings Conference Call February 21, 2019 8:30 AM ET Company Participants Matt Missad – Chief Executive Officer Mike Cole – Chief Financial Officer Brandon Froysland – Director-Finance Conference Call Participants Ketan Mamtora – BMO Capital Markets Dan Jacome – Sidoti Steve Chercover – Davidson Operator Good day, ladies and gentlemen, and welcome to the Fourth Quarter Universal Products, Inc. Earnings Conference Call. [Operator Instructions] As a remind ...