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Investor PresentationN o v e m b e r 2 0 1 5
These slides and the accompanying oral discussion may contain “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 Ply Gem Holdings, Inc. (the “Company”) to differ materially from the results expressed or implied, including: downturns in the home repair and remodeling or the new construction end markets, or the economy or the availability of consumer credit; competition from other exterior building products manufacturers and alternative building materials; inability to successfully develop new products or improve existing products; changes in the costs and availability of raw materials; consolidation and further growth of our customers; loss of, or a reduction in orders from, any of our significant customers; inclement weather conditions; increases in union organizing activity and work stoppages at our facilities or the facilities of our suppliers; our ability to employ, train and retain qualified personnel at a competitive cost; claims arising from the operations of our various businesses prior to our acquisitions; product liability claims, including class action claims, relating to the products we manufacture; litigation outside of product liability claims; loss of certain key personnel; interruptions in deliveries of raw materials or finished goods; environmental costs and liabilities; inability to realize anticipated synergies and cost savings with respect to acquisitions; manufacturing or assembly realignments; threats to, or impairments of, our intellectual property rights; increases in fuel costs; changes in foreign currency exchange and interest rates; material non-cash impairment charges; our significant amount of indebtedness; covenants in the ABL Facility, the credit agreement governing our Senior Secured Term Loan Facility and the indenture governing the 6.50% Senior Notes; limitations on our net operating losses and payments under the tax receivable agreement to our current stockholders; failure to successfully consummate and integrate future acquisitions; actual or perceived security vulnerabilities or cyberattacks on our networks; failure to effectively manage labor inefficienciesassociated with increased productions and new employees added to the Company; failure to generate sufficient cash to service all of our indebtedness and make capital expenditures; control by the CI Partnerships; failure to maintain effective internal controls over financial reporting; and the risks set forth in the Company’s filings with the Securities and Exchange Commission. Consequently such forward-looking statements should be regarded as the Company’s current plans, estimates and beliefs. Except as required by law, the Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
In addition, these slides and the accompanying oral discussion reference financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”), such as adjusted EBITDA. The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP measures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the appendix to the slides.
LegalDisclaimer
1
Ply Gem Overview
• Exceeding $1.8 Billion in net sales (1)
• Approximately 9,000 associates
One of the Largest Manufacturers of Exterior Building and Home Improvement Products in North America
3
CompanyOverview
(1) LTM 3Q15; Pro Forma for the Simonton and Canyon Stone acquisitions.
46%54% 47%53%
NEW CONSTRUCTION / R&R(1)WINDOWS / SIDING (1)
13%
87%
U.S. / Canada(1)
• #1 in vinyl siding in North America
• #1 in aluminum accessories in U.S.
• #1 in vinyl / aluminum windows in U.S.
• #1 in windows in Western Canada
Leading Manufacturer of Exterior Building Products
4
CompanyOverview
Provider of branded products for new construction and home improvement markets, sold through multiple distribution channels covering a variety of price points
Extensive Exterior Product Portfolio
5
CompanyOverview
Engineered roofing products
Gable vents and accessories
Gutter protection systems
Vinyl and aluminum soffitWindow mantles
Manufactured stoneVinyl and aluminum siding
ShuttersMounting blocks
Decorative corner posts
Rain removal systems
Door surround systems
Patio Doors
Windows
Rail and fencing
Outdoor structures
Exterior doors
PVC trim
• Provides differentiation for Ply Gem customers
• Provides a single sourcing opportunity
• Hits the sweet spot of an emerging trend
• Features NAHB Green Approved products
• Fulfills the “One Ply Gem” MISSION
Alexandria, VA Designed Exterior Remodel
BEFORE
Three Weeks later using The Designed Exterior concept
AFTER
Complete Exterior Solution Offering for CustomersCompanyOverview
6
Vinyl Siding Market Leader
• #1 vinyl siding manufacturer in North America (~38% 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
• State-of-the-art automated manufacturing facilities with capacity
~$5,600
~$1,500$842
Exterior CladdingMarket Size
Vinyl SidingMarket Size
Ply Gem LTM 3Q15Net Sales
($ in mm)
Why Ply Gem Key Brands
North American Market Summary
7
CompanyOverview
(1)
(2)
Market size: According to Principia Partners.(1) Includes the results of Canyon Stone from the date of acquisition, May 29, 2015(2) Includes all product categories within Siding, Fencing & Stone segment
• #1 vinyl and aluminum window manufacturer in the U.S.
• #1 window and door manufacturer in Western Canada
• 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 downturn
$9,000
$1,017
Market Size Ply Gem LTM 3Q15Net Sales
($ in mm)
Market size: Company estimate – new construction and R&R.
~
Vinyl and Aluminum Windows Market Leader
Why Ply Gem Key Brands
North American Market Summary
8
CompanyOverview
Regional local one-step distributors
Two-step distributors
National one-step distributors
Retailers
Homebuilders
New Construction
Regional/localone-step distributors
National one-stepdistributors
Retailers
Two-stepdistributors
Home Repair and Remodeling
• Homebuilders
• Contractors
• Contractors
• Individuals
Multi-Channel Distribution Network Serving a Broad Customer Base
CompanyOverview
9
Broad Supply Chain Representative Customers
Diversity of channels and customers with limited customer concentration Top 10 customers account for only ~48% of 2014 net sales
Manufacturing & Distribution Platform
10
CompanyOverview
29 Manufacturing Plants
34 Distribution Centers
• Business diversity
• Cross sell our products
• Double digit growth
• World class safety & quality
• Low cost producer
• Efficient supply chain
Customer Focus
Innovation
ProfitableGrowth
Continuous Improvement
HumanResources
LEVERAGE
Company Overview
11
• Associate development
• Succession planning
• Communicate & empower
• Customer solutions
• Customer experience
• Leading brands
• Measure, Engagement
• New products / Solutions
• Utilize technology
• Open collaboration
• Sustainability
Market and Housing Update
Crisis of Confidence is Starting to Improve
13
MarketUpdate
-8.0
-3.0
2.0
7.0
4.0
6.0
8.0
10.0
40.0
60.0
80.0
100.0
2011 2012 2013 2014 2015
Source: Bureau of Labor Statistics, Zillow, University of Michigan,Government of Canada, CREA, Conference Board of Canada
(*) Excluding Greater Vancouver and Greater Toronto
Unemployment RateAnnual Change in Home ValuesConsumer Sentiment
5.1%
3.3%
92.1
Canada
7.1%
3.3%(*)
95.3
U.S.
U.S. SFHS Forecasted to Increase
14
1,7191,474
1,036
616442 471 434 537 620 647 714
8771,148
354
338
306
284
112 114 178247
308 354405
378
372
0
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E
Single-Family Multi-Family(in thousands)
-75%
MarketUpdate
Source: NAHB, November 3, 2015
Canada SFHS Forecast
15
121 11993
7694 82 84 77 76 68 69 65
106 109
118
73
97 112131
111 114 119 109 109
0
50
100
150
200
250
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E
Single-Family Multi-Family
MarketUpdate
Source: CMHC, Fourth Quarter 2015
(in thousands)
Growth Will be in Healthier Markets
16
MarketUpdate
Source: NAHB
North American Residential Siding Market by Product
17
MarketUpdate
Source: Principia Partners, August 2014
Vinyl34%
Polymer shakes & shingles
2%
Wood14%Brick
9%
Fiber cement16%
Masonry veneer
3%
Engineered wood12%
Stucco8%
Metals2%
77%
60%
24%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Northeast U.S. Midwest U.S. South U.S. West U.S.
Vinyl Siding Brick Stucco Fiber Cement Wood Other
Source: 2014 U.S. Census Bureau
Vinyl Siding Share by RegionVinyl Siding Share by Product Type
Median Age of Owner-Occupied Housing
18
MarketUpdate
Source: 2013 AHS, U.S. Census Bureau
27 27
29 2930
31 3132
3435
37
0
5
10
15
20
25
30
35
40
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Year
s o
f A
ge
• Aging trend signals a growing market for remodelers
• Implied additional demand for more new construction over longer term
• Approximately 2/3 of owner-occupied home in the U.S. were built before 1980
• Homes constructed after 2000 represent just 17% of the U.S. owner-occupied homes, with only 2% built after 2010
Top Growth Products for Replacement Contractors
19
55
3027
25 2421
1310
8
0
10
20
30
40
50
60
2014
Windows
Siding
Doors
Roofing
Bathtubs & Showers
Decking
Flooring
Kitchen Cabinets
Water Pipes
MarketUpdate
Source: Hanley Wood August 2013 Audience Survey
Financial Overview
Proven Track Record of Acquisition Integration / Cost Savings Realization
AcquisitionSynergies
21
Expected Achieved
MW Windows
($331mm)
2004 2005 2006 2007 2008
Alenco
Windows
($127mm)
MHE (Alcoa) siding business
($296mm)
CT Windows
($37mm)
United Stone
Veneer
($4mm)
Ply Gem
purchased
by CI Capital
Expected Achieved Expected Achieved
2013
Gienow
(CAD$20mm)
Acq
uis
itio
ns
($ in
mm
)C
ost
sav
ings
Mitten
(CAD$79mm)
$6.8$11.0 $4.0 $4.9
$22.0
$55.0
2014
Simonton
($130mm)
2015
Canyon
Stone
($21mm)
Acquisitions provide incremental capabilities and growth along with significant synergy opportunities
AcquisitionSynergies
(1) Improved procurement economics as a result of increased purchasing power(2) Freight cost maximization and improved fixed overhead as a result of various manufacturing cost reductions from rationalizations(3) SG&A leverage scale and back office efficiencies (4) Expand vertical integration efficiency
Impact of Expected Simonton Synergies and Cost Savings
$8 Million Original Savings
Raw material sourcing (1)
$3.6MMfg. efficiencies (2)
$2.7MInsourcing products (4)
$1.5MSG&A (3)
$0.2M
Simonton Acquisition Synergies and Cost Savings
$10 Million
Additional Incremental Savings$2.0M
22
Net Sales Adjusted EBITDA
$176
$96$116 $123 $115
$127$117 $124
$167
0%
5%
10%
15%
20%
25%
2007 2008 2009 2010 2011 2012 2013 2014 LTM3Q15
Adj. EBITDA % of Sales
$1,364$1,175
$951 $996 $1,035$1,121
$1,366
$1,567
$1,859
0
400
800
1200
1600
2007 2008 2009 2010 2011 2012 2013 2014 LTM3Q15
Ply Gem sales Single family housing starts
Key Consolidated Financial Performance
($ in mm)($ in mm)
Source: Management, U.S. Census Bureau.Note: 2Q13 numbers include Gienow and Mitten from date of acquisition. 3Q14 numbers include Simonton from date of acquisition. 2Q15 numbers include Canyon Stone from date of acquisition.
23
FinancialOverview
Consistent Seasonal Adjusted EBITDA Performance
7 15 12
(1) 2
1Q11 1Q12 1Q13 1Q14 1Q15
$44 $45$41 $44
$63
2Q11 2Q12 2Q13 2Q14 2Q15
$24 $25$16
$26
4Q11 4Q12 4Q13 4Q14
$40 $42$48
$55
$77
3Q11 3Q12 3Q13 3Q14 3Q15
% of net sales 3.3% 5.1% 4.6% (0.5%) 0.6% 14.5% 14.4% 11.2% 10.8% 12.5% 13.2% 13.3% 11.9% 12.6% 14.4% 9.8% 9.2% 4.8% 5.9%
($ in mm)
Ply Gem38%
CertainTeed26%
Associated Materials12%
Exterior/Royal15%
Kaycan5%
Other4%
Ply Gem14%
Atrium3%
Other(1)
26%
Pella16%
Jeld Wen (includes doors)13%
Marvin8%
Anderson 20%
$535$466
$374$392 $396
$463
$628
$765
$1,017
(10.0%)
(5.0%)
0.0%
5.0%
10.0%
$0
$200
$400
$600
$800
$1,000
$1,200
2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q15
Sales Operating earnings margin
AndersenPellaMarvinJELD-WENAtriumAssociated MaterialsMilgardSimonton
Windows manufacturers(all substrates)
Source: Principia Partners 2014 study, management estimates.
One, Integrated Business with Two Reportable Segments
($ in mm) ($ in mm)
Siding, Fencing, and Stone Windows and Doors
Window Market Share in Units (All Types) - 2013Vinyl Siding Market Share -2013
24
CompanyOverview
(1) Includes Associated Materials, Milgard, MI, Weathershield, Windsor, Harvey, Champion, Amsco, Cascade, and Kolbe.
$828
$709
$577$604 $639 $658
$738$802
$842
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$0
$200
$400
$600
$800
$1,000
2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q15
Sales Operating earnings margin
2014 Cost structure (Net sales – EBITDA)
Variable80%
Fixed20%
Materials54%
Variable manufacturing
18%
Freight & other8%
Fixed20%
Vinyl = 20%
Aluminum = 13%
Other materials = 21%
Highly Efficient, Flexible, Low Cost Operating Structure
Source: Company filings and management estimates.25
CompanyOverview
Proactively managed cost structure during market cycle
$20$17
$8$11 $11
$25 $26$24
$29
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2007 2008 2009 2010 2011 2012 2013 2014 LTM3Q15
Capex % of Sales
FCF: Adjusted EBITDA – Capital Expenditures Capital Spending
• Modest capex ~1.5% of sales in LTM 3Q15
• In excess of $290M in available liquidity at 3Q15
• ABL facility successfully amended in November 2015 to increase the facility from $300M to $350M, and extends the maturity to 2020
• No near-term maturities, excess cash flow payment under Term Loan to be made in early 2016
$20
$424
$650
2015 2016 2017 2018 2019 2020 2021 2022
ABL(*) Term Loan Senior Notes
Debt Maturity - 3Q15
Substantial / Sustainable Free Cash Flow
History of strong EBITDA performance, modest capital expenditure requirements and efficient use of working capital26
FinancialOverview
$156
$80
$108 $112$103 $103
$91$101
$138
2007 2008 2009 2010 2011 2012 2013 2014 LTM3Q15
($ in mm) ($ in mm)
($ in mm)
(*) ABL becomes due / matures November 2020
No near-term maturities
Appendix
Year Ended December 31
(amounts in thousands) 2007 2008 2009
Net income (loss) $4,982 $(498,475) $(76,752)
Interest expense, net 97,994 137,398 135,303
Benefit for income taxes 3,634 (69,951) (17,966)
Depreciation and amortization 54,067 61,765 56,271
EBITDA $160,677 $(369,263) $96,856
Non cash loss (gain) on foreign currency transactions
(3,961) 911 (475)
Goodwill impairment - 450,000 -
Intangible asset impairment 4,150 - -
Customer inventory buybacks - 1,890 8,345
Restructuring/integration expense 10,356 10,859 8,992
Non cash charge of purchase price allocated to inventories
1,289 19 -
Management fees 3,505 1,679 2,497
Adjusted EBITDA $176,016 $96,095 $116,215
Adjusted EBITDA ReconciliationAppendix
28
(amounts in thousands)Year Ended
December 31, 2010
1Q10 2Q10 3Q10 4Q10
Net income (loss) $27,667 $54,102 $(409) $(6,394) $(19,632)
Interest expense, net 122,833 33,954 30,152 29,752 28,975
Provision (benefit) for income taxes
5,027 6,532 664 1,332 (3,501)
Depreciation and amortization 60,718 15,454 15,711 15,133 14,420
EBITDA $216,245 $110,042 $46,118 $39,823 $20,262
Non cash loss (gain) on foreign currency transactions
(510) (104) (122) (104) (180)
Write-off capitalized offering costs
1,571 1,571
Customer inventory buybacks 574 252 124 117 81
Restructuring/integration expense
910 106 83 405 316
Loss on modification or extinguishment of debt
(98,187) (98,187) - - -
Management fee 2,451 200 900 900 451
Adjusted EBITDA $123,054 $12,309 $47,103 $41,141 $22,501
Appendix
29
Adjusted EBITDA Reconciliation
(amounts in thousands)Year Ended
December 31, 2011
1Q11 2Q11 3Q11 4Q11
Net income (loss) $(84,507) $(70,892) $2,063 $(458) $(15,220)
Interest expense, net 101,384 26,424 24,911 25,176 24,873
Provision (benefit) for income taxes
683 2,472 (959) 466 (1,296)
Depreciation and amortization 54,020 13,690 13,393 13,471 13,466
EBITDA $71,580 $(28,306) $39,408 $38,655 $21,823
Non cash loss (gain) on foreign currency transactions
(492) (133) (218) (115) (26)
Environmental remediation 1,580 - - - 1,580
Customer inventory buybacks 10,087 6,692 2,971 315 110
Restructuring/integration expense
1,616 429 477 547 163
Gain on modification or extinguishment of debt
27,863 27,863 - - -
Management fee 2,267 100 900 800 467
Adjusted EBITDA $114,501 $6,645 $43,538 $40,201 $24,117
Appendix
30
Adjusted EBITDA Reconciliation
(amounts in thousands)Year Ended
December 31, 2012
1Q12 2Q12 3Q12 4Q12
Net income (loss) $(39,055) $(25,642) $5,267 $(3,673) $(15,007)
Interest expense, net 103,042 25,041 25,919 27,526 24,557
Provision (benefit) for income taxes
2,835 1,872 (204) (89) 1,256
Depreciation and amortization 52,277 13,317 13,189 13,073 12,698
EBITDA $119,099 $14,588 $44,171 $36,837 $23,504
Non cash loss (gain) on foreign currency transactions
(409) (68) (96) (100) (145)
Customer inventory buybacks 768 445 119 59 144
Restructuring/integration expense
1,677 - 152 339 1,186
Management fee 2,520 302 902 859 457
Loss on modification or extinguishment of debt
3,607 - - 3,607 -
Adjusted EBITDA $127,262 $15,267 $45,248 $41,601 $25,146
Appendix
31
Adjusted EBITDA Reconciliation
(amounts in thousands)Year Ended
December 31, 2013
1Q13 2Q13 3Q13 4Q13
Net income (loss) $(79,520) $(28,107) $(50,877) $16,895 $(17,431)
Interest expense, net 91,684 23,653 24,833 21,760 21,438
Provision (benefit) for income taxes 298 3,849 (731) (1,442) (1,378)
Depreciation and amortization 45,646 9,715 11,171 12,097 12,663
EBITDA $58,108 $9,110 $(15,604) $49,310 $15,292
Non cash loss (gain) on foreign currency transactions
1,533 33 346 376 778
Acquisition costs 1,490 315 1,025 150 -
Customer inventory buybacks 4,837 - 2,172 2,503 162
Restructuring/integration expense 11,759 2,380 1,439 1,529 6,411
Non cash charge of purchase price allocated to inventories
2,015 - 883 1,132 -
Management fee 410 235 175 - -
Loss on modification or extinguishment of debt
18,948 - 18,948 - -
Initial public offering costs 23,527 - 23,527 - -
Tax receivable agreement liability adjustment
(5,167) - 8,143 (6,669) (6,641)
Adjusted EBITDA $117,460 $12,073 $41,054 $48,331 $16,002
Appendix
32
Adjusted EBITDA Reconciliation
(amounts in thousands)Year Ended
December 31, 2014
1Q14 2Q14 3Q14 4Q14
Net income (loss) $(31,269) $(51,578) $11,380 $21,405 $(12,476)
Interest expense, net 71,186 18,494 17,225 16,282 19,185
Provision (benefit) for income taxes
(105) (12,470) 7,051 (10,514) 15,828
Depreciation and amortization 48,463 11,284 11,254 11,378 14,554
EBITDA $88,275 $(34,270) $46,910 $38,551 $37,091
Non cash loss (gain) on foreign currency transactions
992 228 (477) 766 475
Acquisition costs 1,188 - - 664 477
Customer inventory buybacks 1,555 123 359 306 767
Restructuring/integration expense 6,493 1,717 1,462 1,067 2,287
Litigation settlement 5,000 5,000 - - -
Loss on modification or extinguishment of debt
21,364 21,364 - - -
Non cash charge of purchase price allocated to inventories
38 - - 38 -
Tax receivable agreement liability adjustment
(670) 4,373 (3,942) 13,988 (15,089)
Adjusted EBITDA $124,235 $(1,465) $44,312 $55,380 $26,008
Appendix
33
Adjusted EBITDA Reconciliation
(amounts in thousands) 1Q15 2Q15 3Q15
Net income (loss) $(48,859) $30,372 $41,711
Interest expense, net 19,084 18,682 18,819
Provision (benefit) for income taxes (2,394) (1,482) 2,114
Depreciation and amortization 14,821 14,576 14,911
EBITDA $(17,348) $62,148 $77,555
Non cash loss on foreign currency transactions 934 98 1,069
Acquisition costs 286 339 22
Customer inventory buybacks 52 80 559
Restructuring/integration expense 1,163 1,857 258
Non cash charge of purchase price allocated to inventories - 54 -
Litigation settlement, net - - (1,194)
Tax receivable agreement liability adjustment 17,185 (2,006) (1,712)
Adjusted EBITDA $2,272 $62,570 $76,557
Appendix
34
Adjusted EBITDA Reconciliation
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