BlueLinx : BXC Investor Presentation

BlueLinx Investor Presentation

Delivering What Matters

© BlueLinx 2024. All Rights Reserved.

Safe Harbor Statement

This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words "believe," "anticipate," "could", "expect," "estimate," "intend," "may", "project," "plan," "should", "will", "will be," "will likely continue," "will likely result", "would" or words or phrases of similar meaning.

The forward-looking statements in this presentation include statements about our confidence in the Company's long-term growth strategy; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; and whether or not the Company will continue any share repurchases.

Forward-looking statements in this presentation are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward- looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: housing market conditions; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; effective inventory management relative to our sales volume or the prices of the products we produce; business disruptions; potential acquisitions and the integration and completion of such acquisitions; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the effects of epidemics, global pandemics or other widespread public health crises and governmental rules and regulations; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-termnon-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices or availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss development experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; interest rate risk, which could cause our debt service obligations to increase; and changes in, or interpretation of, accounting principles.

Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

Immaterial Rounding Differences. Immaterial rounding adjustments and differences may exist between slides, press releases, and previously issued presentations.

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BLUELINX INVESTMENT HIGHLIGHTS

1Attractive market

• >$40B addressable market(1)
• Favorable growth trends
• Fragmented competition

2BlueLinx is well positioned to grow

• ~10% market share
• Growing with best customers
• Strong financial position

3 Leveraging growth

• Optimizing productivity
• Infusing capabilities
• Driving performance

BlueLinx: Delivering What Matters

Delighting customers, Elite Execution, Performance Driven

(1) Management estimate

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Business

Overview

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BLUELINX IS THE LARGEST PURE PLAY 2 STEP BUILDING PRODUCTS DISTRIBUTOR IN THE U.S.

SUPPLIERS

Large, national

manufacturers of specialty

and framing products

TWO-STEP

DISTRIBUTOR

Largest, pure play

two-step building

products distributor in

the United States

CUSTOMERS

• Pro Dealers
• Home Centers
• Cooperatives
• Specialty, one-step distributors
• Industrials

END USERS

• Residential builders
• Multi-familybuilders
• Manufactured housing builders
• Contractors
• Remodelers
• Do-it-yourself

Note: We believe that BlueLinx is the largest, pure-playtwo-step distributor in the U.S. building products industry based on sales

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BROAD SCALE AND NATIONAL REACH

2023 SALES BY REGION

West	South	Central	North	East
23%	25%	16%	16%	20%

TEAM LOCATIONS

2,000+ 60+

SUPPLIERS CUSTOMERS

750+ 15,000+

FOUNDED HEADQUARTERED

1954 Atlanta

~11 million square feet of warehouse capacity

(1) Highest growth MSAs as forecasted by John Burns Real Estate Consulting in May 2022

BlueLinx serves all 50 states with locations in ~75% of the fastest growing MSAs1

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BLUELINX VALUE PROPOSITION

OUR SUPPLIERS' CHALLENGES

• Limited sales team / resources
• Logistics in complex supply structure
• Inability to deliver partial truck loads
• Customer-centric,value-added services

✓

• Warehousing and
• Value-addedservices that

OUR CUSTOMERS' CHALLENGES

• Purchasing power
• Product expertise
• Limited storage space
• Lack of comprehensive product access

• Cost efficient, small quantity orders
• Just-in-timedelivery solutions
• Expert product knowledge and breadth
• Reduced working capital requirements

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COMPREHENSIVE SUITE OF PRODUCTS AND VALUE-ADDED SERVICES

COMPREHENSIVE PRODUCT OFFERING

VALUE-ADDED SERVICES

✓ Value engineering	✓ Automated order
✓ Custom finishing	processing
✓ Next day delivery
✓ Cut-to-spec
✓ Intermodal
✓ Fabrication
distribution
✓ Remanufacturing	✓ Backhaul services

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STRATEGIC PARTNERSHIPS WITH MARKET LEADERS

2023 SPEND BY SUPPLIER

2023 SALES BY CUSTOMER

Note: includes co-ops

Note: no individual customer or supplier comprises more than 10% of consolidated BlueLinx sales or product spend, respectively

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TARGETING 80% HIGHER MARGIN SPECIALTY PRODUCT SALES MIX

2023 SALES BY PRODUCT	FUTURE SALES MIX GOAL
Structural	Structural
20%
30%

Specialty	Specialty
70%
	80%
	FOCUSED ON FIVE KEY SPECIALTY CATEGORIES
▪	Engineered Wood	✓ Fewer manufacturers (suppliers)
▪	Siding	✓ Stickier with customers
▪	Moulding and Millwork	✓ Require value added services
▪	Outdoor Living	✓ Repair and remodel concentration
▪	Industrial Products	✓ Higher margin

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