RAYMOND JAMES JUNE 2012 Forward-Looking Statements This - - PowerPoint PPT Presentation

RAYMOND JAMES

JUNE 2012

Forward-Looking Statements

This presentation and related remarks made by representatives of PGT, Inc. and its affiliates (“PGT”) in connection herewith contain confidential and proprietary information regarding PGT. By accepting this presentation and participating in the related discussion, the recipient agrees not to divulge any such information to any

• ther party and will return this presentation together with any copies or descriptions

thereof (in any media) to PGT immediately upon request therefore. The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. You are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. PGT, Inc., assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. PGT makes no representation or warranty, express or implied as to the accuracy or completeness of the information contained in this presentation, and nothing contained herein or in related remarks made by representatives of PGT in connection herewith is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Any recipient hereof should conduct its own independent analysis of PGT and the data contained or referenced to herein.

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Management Presenters

• Co-founder of PGT in 1980
• 30+ years with PGT in a variety of strategic and
• perating positions
• Appointed CEO in 2005 and led IPO in 2006
• Served as Executive Vice President and Chief

Operating Officer overseeing PGT’s Florida and North Carolina operations

• Joined PGT in 2005
• 18 years of financial and accounting experience

with various Fortune 500 companies

• Background in public reporting, operations, human

resources, logistics and manufacturing

PGT is led by a strong and experienced management team

• 7 Executive Team Members – combined have over 100 years window experience

Jeff Jackson

Executive Vice President and Chief Financial Officer

Nasdaq Ticker: PGTI Recent Price $2.93 as of close June 20, 2012 Shares Outstanding: 53.67M as of close June 20, 2012 Analyst Coverage: Deutsche Bank, JMP Securities, Ladenburg, Raymond James

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Rod Hershberger

President and Chief Executive Officer

PGT Overview

Aluminum 12% Vinyl 8% Arch Systems 3% Eze- Breeze/ Other 6%

WinGuard (Impact Resistant) 66%

PremierVue 5%

2011 Sales $167.3 million

• 30+ year history of quality and

innovation

• Clear market leader
• Pioneered impact-resistant market in 1992

following Hurricane Andrew

• Offers the broadest line of impact-resistant

windows and doors.

• Complete line of premium aluminum

and vinyl windows and doors

• Provides maximum customer service
• Custom, make-to-order products
• Minimal lead times and on-time delivery
• Outstanding before, during and after-sale

support

• Highly fragmented industry

PGT is the nation’s leading manufacturer of residential impact-resistant window and doors

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Expansive Product Offering

• PGT offers premium brands across a diverse and

comprehensive line of products

Note: 2005 percentages pro forma for the divestiture of NatureScape.

Windows and Doors Porch Enclosures Product Category WinGuard PremierVue Architectural Systems Aluminum Vinyl Eze-Breeze

PGT Branding Product Description Impact-resistant windows and doors Combine heavy- duty frames (aluminum or vinyl) with special laminated glass Newest product

• ffering; heavy

duty vinyl frame impact window for high end residential and commercial First R-5 impact window in the industry Heavy duty aluminum frame construction Designed for increased wind and water loads required for taller buildings Aluminum frame windows and doors Target markets with warmer/humid climates due to strength and durability Vinyl frame windows and doors Energy efficient product for any climate; meets 30/30 requirement

• f 09 ARRA

Lighter-weight non-glass porch enclosure products Used for repair/remodel additions and enclosures % of 2011 Sales 66% 5% 3% 12% 8% 6%

Impact sales increased as a percentage of total sales from 61% in 2005 to 74% in 2011

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PGT is the Clear Leader in the Impact- Resistant Window and Door Market

• WinGuard brand is synonymous with

impact-resistant windows and doors

• Target markets in hurricane-prone coastal

states with increasingly stringent building codes

• Dominant market share in our core

Florida market

• Over 3 million WinGuard units

installed with zero reported impact failures

• Additional advantages: Superior

performance, ease-of-use, insurance incentives, security features, noise reduction, etc.

• Protection always in place
• First R-5 impact window
• Meets DOE requirements for

government projects

• Grown from 1 product to 44 in 4 product lines
• Aluminum residential
• Aluminum commercial
• Vinyl residential
• PremierVue

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PGT WinGuard vs. The “Competition”

• Superior performance
• Ease of use
• Improved aesthetics
• Insurance incentives
• Security features
• Noise reduction

WinGuard has a number of competitive advantages:

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Impact-Resistant Market Provides Long-Term Growth Opportunity

• “Passive” (window) protection vs. “active” (shutter) protection
• $1.5 – 2.0 billion total market opportunity
• Market expanding along Eastern seaboard and Gulf Coast as states adopt and enforce code
• The Caribbean markets are increasingly demanding impact-resistant and energy efficient

products

• Insurance companies providing incentives to ensure impact protection always in place
• NOAA forecasts a 10-20 year active storm cycle

(1) Building codes require structures to withstand wind speeds in these ranges * Impact protection required

Impact-Resistant Market

Wind Speeds (mph)(1)

130 to 150 * 120 to 130 * 110 to 120 * 100 to 110 * 90 – 100 Less than 90

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PGT’s Core Geographic Market is in Early Stages of Recovery

• Florida’s downturn in new home construction has been significantly more pronounced than in other

parts of the U.S.

• Since 2005 peak levels, single-family starts are down nearly 85%
• Since hitting trough levels in 2009, starts have recovered modestly in the last two years; however, starts remain well

below normalized levels

• Based on average single-family starts per thousand since 1990, normalized annual starts are

estimated to be over 100,000 versus 31,888 starts in 2011

• Given the overbuild that occurred in Florida, we anticipate a prolonged period of time to revert to start

levels consistent with longer-term historical averages

40 80 120 160 200 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012P

Florida Single-Family Housing Starts

(in thousands)

FL Single-Family Starts FL Population (in thousands) Start per Thousand 2011 31,888 19,057 1.7 2010 31,543 18,496 1.7 2009 25,730 18,496 1.4 2008 39,269 18,389 2.1 2007 63,953 18,251 3.5 2006 132,635 18,058 7.3 2005 193,111 17,736 10.9 2004 172,408 17,343 9.9 2003 146,692 16,959 8.6 2002 122,546 16,668 7.4 2001 107,615 16,349 6.6 2000 97,697 16,049 6.1 1999 99,188 15,111 6.6 1998 95,299 14,908 6.4 1997 86,260 14,683 5.9 1996 87,252 14,427 6.0 1995 79,016 14,185 5.6 1994 93,316 13,962 6.7 1993 89,713 13,714 6.5 1992 80,873 13,505 6.0 1991 68,296 13,289 5.1 1990 81,965 12,938 6.3 2012P 35,477

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*Normalized housing starts at 6 per 1000 population

Leader In Technical Expertise

PGT’s expertise is unmatched in the industry and provides a significant competitive advantage

• Viewed as the industry expert dating back to early 1990s
• Actively involved in the creation of testing standards and building codes
• Provide leadership roles in key industry association that drive and/or influence code
• Possess more current Miami-Date County Notice of Acceptances (NOA’s) than any

competitor

• Built and tested first impact window in U.S. – Developed first R-5 impact window
• Complete in-house product design and testing
• Crystal achievement doors 2 years in a row

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Unmatched Manufacturing Capabilities

• Vertically integrated manufacturing (including glass

plant and truck fleet) provides a strong competitive advantage

• Cost savings
• Lower lead times
• Outstanding customer service and support
• Synchronous flow manufacturing enables efficient

delivery of fully customizable, premium windows

• Every unit is custom made-to-order
• PGT’s culture focuses on growth and continuous

improvement to drive output and manufacturing efficiencies

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Diverse Distribution Channels

Broad distribution allows PGT to effectively serve its large customer base and manage demand fluctuations

• Highly loyal distribution base with over 1,300 customers
• PGT University has trained approximately 31,000 customers
• Largest customer represents only 2% of 2011 sales
• Top 10 customers represent 16% of 2011 sales

2011 Sales Breakdown End Market Breakdown

Aluminum Contractors 3% Distributors and Lumberyards 48% Eze-Breeze Dealers 4% Window Replacement 45%

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3% 6% 11% 20% 26% 27% 27%

0% 5% 10% 15% 20% 25% 30% 1999 2001 2003 2005 2007 2009 2011

Penetration of Impact-Resistant Windows & Doors is Continuing

• Impact-resistant windows and doors

gaining penetration from 3% in 1999 to 27% in 2011

• Approximately 75% of impact-resistant

market is still using shutters and other “ active” protection

• Increased penetration largely due to

greater awareness of benefits of impact-resistant windows and doors versus shutters among consumers, builders and contractors

• Superior performance and ease-of-use
• Improved aesthetics
• Insurance incentives (ranging from 20%

to 40% savings)

• Security features
• Noise reduction
• Energy efficiency

Impact-Resistant Windows and Doors Penetration

Note: Based on units.

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Recent Financial Performance

2011 represented a year of transition for PGT

• Company further drove efficiency and savings by consolidating all operations into the Florida facility

In 2012, PGT is expected to further benefit from the consolidation of Company operations and an increased focus on top line growth despite continued weakness in the housing market

($ in millions) FY 2009 FY2010 FY 2011 LTM 3/31/12 Revenue $166,001 $175,741 $167,276 $164,733 Y-O-Y Growth (%)

• 5.9%

(4.8)%

• Gross Profit

47,440 51,223 46,851 48,308 Margin (%) 28.6% 29.1% 28.0% 29.3% *Adj. EBITDA 15,101 16,838 14,462 16,145 Margin (%) 9.1% 9.6% 8.6% 9.8% Capital Expenditures 2,330 3,197 3,496 3,641 % of sales 1.4% 1.8% 2.1% 2.2% *Adjusted for non recurring items including restructuring and consolidation costs, as well as non-cash stock compensation and impairment charges

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Gross Margin Near Top of Industry *

36.9% 31.3% 30.9% 26.5% 25.9% 21.7% 18.8% 13.8% 13.5% 13.3% 12.2% 11.7% 0.0% 10.0% 20.0% 30.0% 40.0% TREX PGTI FBHS HW MAS AWI LEG OC USG LPX AMWD UFPI

*Based on most recent quarterly public filing

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Maintaining a Healthy Balance Sheet

($ in millions) Year End 2011 . First Quarter 2012 . Cash & cash equivalents $10.9 $14.0 Working Capital $16.5 $15.6 Capital Assets $48.6 $48.0 Intangibles $51.8 $50.2 Total Debt $45.5 $45.5 Shareholder’s Equity $67.4 $67.3 LTM EBITDA/Total Debt 3.1 2.8 DSO 39 33 16

Focused Growth Strategy

Given the market opportunities and PGT’s strong competitive position, the Company has engaged a new executive to lead sales and marketing initiatives, including a three-pronged growth strategy:

• Increase market share in SE/SW

Florida, our two largest markets

• Capitalize on end-user shift from

“active” to “passive” protection

• Leverage PGT’s market-leading

position and high barriers to entry

• Greater awareness of PGT

branded products > WinGuard > SpectraGuard > PremierVue

• Leverage sound/security benefits

Continue Growing in Existing Markets

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• Coastline from Mexico to Long

Island, with a specific focus on the Gulf Coast and the Carolinas

• Team members reorganized

to drive international growth

• New team focused on expanding

Eze-Breeze sales and distribution channels

Expand to New Markets

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• Two recent SGD launches,
• ne aluminum and one vinyl,

won consecutive Crystal Achievement Awards

• PremierVue

> Vinyl framed impact window for high-end residential and commercial > First R-5 impact window in the industry

• SpectraGuard

> Energy efficient new construction and replacement vinyl window

Introduce New Products

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Investment Update

• Despite challenging housing market conditions:
• Significant upside exists once the housing market rebounds
• Paid down long term gross debt from $320M in 2006 to $45.5M

currently

• Recognized leader in structural and energy code development
• PGT is well positioned to drive strong growth in

revenue and profitability:

• Attractive long-term industry fundamentals
• Strengthening housing market environment
• Market-leading position with a 50%+ national market share
• Outstanding manufacturing capabilities
• Multiple growth strategies, including new product introductions

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Why Invest in PGT

Market Leader in Core Markets Competitive Barriers through Superior Brand Awareness and Technical Expertise History of Solid Financial Performance Irrespective of Housing Market Extensive and Loyal Distribution Channels Across Balanced End-Markets Manufacturing Excellence and Continuous Improvement Culture Focused Growth Strategy 19