Construction Partners: Investor Relations Presentation – Winter 2022


CONSTRUCTION PARTNERS PRESENTATION INVESTORS

LOOKING TO THE FUTURE

STATEMENTS

This presentation contains “beforeforward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Construction Partners, Inc. (the “Company”), its financial condition, results of operations and the Company’s current views based on information currently available This information is, where applicable, based on estimates, assumptions and analyzes that the Company believes, at the date hereof, provide a reasonable basis for the information contained herein.forward-looking statements can generally be identified by the use ofwords such as “prospect”, “believe”, “expect”, “potential”, “continue”, “may”, “should”, “should”, “seek”, “approximately”, “predict” , “intends”, “plans”, “estimates”, “anticipates”, “expects” or the negative version of these words or other comparable words and expressions, and includes statements relating to the beliefs or expectations of the Company regarding its future performance, strategic plans and cash flows, as well as any other statements that do not relate directly to historical or current facts.forward-looking statements involve known and unknown risks and uncertainties, including those set forth in the company’s most recent annual report on Form 10-K, its subsequently filed quarterly reports on Form 10-Q, its current reports on Form 8-K and other documents filed with the Securities and Exchange Commission (the “SEC”), many of which are beyond the Company’s control. Actual results, performance or achievements may differ materially from those to come.forward-looking statements and the assumptions on which the forward-looking statements are based. There can be no assurance that the information contained herein reflects future performance, and investors are cautioned not to place undue reliance on forecasts.forward-looking statements as a predictor of future performance. Unless otherwise stated, all information contained in this presentation speaks only as of the date hereof. The Company undertakes no obligation to update or revise the information contained herein, publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

This presentation contains certain financial measures that are not presented in accordance with generally accepted accounting principles (“GAAP”), including Adjusted EBITDA and Adjusted EBITDA margin. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items important to understanding and evaluating the Company’s financial results. Accordingly, these measures should not be considered in isolation or as an alternative to net income or other measures of profitability or performance under GAAP. The Company’s presentation of non-GAAP financial measures may not be comparable to similarly titled measures from other organizations because such measures may not be calculated in the same manner. See the appendix to this presentation for a reconciliation of non-GAAP measures included herein.

The Company’s fiscal year is the 52-week period ending September 30. Reference to a particular “fiscal year” or “fiscal year” in this presentation refers to this period. This presentation contains estimates and other statistical data made by independent parties regarding, among other things, market size and growth. These data involve a number of assumptions and limitations, and you are cautioned not to place undue weight on these estimates. The Company has not independently verified statistics and other industry data generated by independent parties and, therefore, cannot guarantee its accuracy or completeness. In addition, the projections, assumptions and estimates of the future performance of the Company and the future performance of the markets in which it competes are necessarily subject to uncertainties and risks due to various factors. These and other factors could cause actual results or results to differ materially from those expressed in estimates made by independent parties.

IRRESISTIBLE

INVESTMENT THESIS

Proven growth strategy and solid outlook

Consistent revenue growth with capacity for EBITDA margin expansion

Solid balance sheet

Invested and experienced management team

Differentiated model with competitive advantages

Vertically integrated operations

Diversified projects with shorter average durations and no “mega” projects

Geographic synergies

Non-cyclical dynamics of industry

Variable cost basis (~2/3 of labor is hourly)

Local presence matters

Poor and deteriorating roads in the existing six states

State and local governments have increased funding for roads

Majority of works: road repair financed by the State and recurring maintenance

Local workforce at home

Three growth levers

Acquisitions

green fields

Organic growth

3

VERTICALLY INTEGRATED

MATERIALS, MANUFACTURING & SERVICES

Clearing and leveling

Aggregate facilities

Pavement base

Signage and pavement markers

HMA Pavement

Railings, barriers, etc.

Bridges and Concrete

Works

Hot mix asphalt plants

Line marking, painting,

Reflectors, etc.

Rainwater drainage

Miscellaneous Concrete

Liquid asphalt terminal

(curb, gutter, etc.)

CPI

IPC / Other company

Subcontracting

worthy of the road

LEADING THE WAY FOR AMERICA’S FUTURE

Market leader in vertically integrated civil infrastructure

in a highly fragmented sector in fast growing states

Headquarter

Surface treatment

Market

Hot mix plants

liquid asphalt

Terminal

Market

Chief

Strong

Momentum

Successful

Record of

Expansion

The use of

Technology

  • Attractive region in the southeastern United States
  • Growing relative market share
  • #22 on the ENR list of leading national heavy contractors*

Industry Tailwinds:

  • Deterioration of road conditions
  • Increased public and private spending
  • Industry Consolidation: “Trusted Buyer” in a Fragmented Industry
  • 35 purchases
  • 8 greenfield extensions (new HMA plant sites strategically located)
  • Standardized computer systems
  • Improved bidding, task execution and financial controls

*Source: Engineering News-RecordMay 30/June 6, 2022. “Top 50 National Heavy Contractors”

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Disclaimer

Building Partners Inc. published this content on November 22, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on November 22, 2022 14:55:08 UTC.

Public now 2022

All the news from CONSTRUCTION PARTNERS, INC.

CONSTRUCTION PARTNERS, INC. Analyst Recommendations

2022 sales 1,265 million

2022 net income 21.3 million

Net debt 2022 288M

PER 2022 ratio 79.3x
2022 return
Capitalization 1,709 million
1,709 million
EV / Sales 2022 1.58x
EV / Sales 2023 1.32x
# of employees 805
Floating 68.6%

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Trends Technical Analysis CONSTRUCTION PARTNERS, INC.

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Tendencies Bullish Bullish Bullish

Evolution of the income statement

Sale

To buy

Medium consensus TO BUY
Number of analysts 6
Last closing price $32.52
Average target price $32.67
Average Spread / Target 0.45%


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