Hillman Solutions Corp. — Call Transcript 2026

All right. Good morning, everyone. Welcome to Hillman's first ever Investor Day. I'm Michael Koehler, Vice President of Investor Relations and Treasury. Thank you for joining us on the webcast and a special thank you to those who traveled here to our customer support center in Cincinnati. We appreciate you taking the time to join us and your continued interest and engagement you show in Hillman. Please make note of the forward-looking statements and our presentation of non-GAAP financial metric disclosures on Slide 2. Today is about giving you a clear view of where we are, where we're going, and how we plan to create long-term value for our shareholders. Over the course of the day, you'll hear from members of our executive leadership team about four key topics. First, you'll hear about Hillman Strong. We will talk about our vision, our strategy, and the strength of this business. Second, you'll hear about owning and expanding the core, diving into how we win and grow our core business. Third, you'll hear about how we plan to leverage our core competencies to win the Pro. Finally, you'll hear about how all of these work together to drive our compelling long-term financial framework. Our goal today is to provide transparency into our strategy, demonstrate the durability of our model and our right to win the Pro, and show how we are positioned to grow this business in the years ahead. With that, I'll turn it over to our President and CEO, Jon Michael Adinolfi. JMA, let's get started. Well, good morning, everyone, and thank you for joining us. We're excited to have you here today to talk about our vision and our strategy. As Michael said, we've got a good solid morning for you here. We're really excited about where Hillman is today and where Hillman is gonna be going in the next five years. To share this strategy, we're excited to present that to everyone here today. I'm Jon Michael Adinolfi. I go by JMA. Been in the industry for about 25 years, and I'm proud to say I've been with Hillman for about seven years. We're gonna start and just talk a little bit about how we're a category leader. For some of you know this story, you know how we take care of our customer. You know how we're actually number one in many of the categories we serve. If you're new to this story, it's important for you to understand that we focus on taking care of the customer. Since this company started over 62 years ago, we have focused on putting the customer first. When Max Hillman started the business, he focused on fasteners, putting the customer first and moving the business forward. We're proud to say over the last over 60 years, we've been able to do that by amassing close to $1.6 billion in revenue and driving EBIT margins to 17.7%. What you'll hear today that's a bit different is the fact that we have a much larger team than we've talked about in the past. We focused our business on the retail side of our opportunities. We love our retail customers. We're gonna continue to grow with them. Today, we're gonna talk about the Pro and how we're gonna continue to expand our TAM. In the past, we talked about a TAM of roughly $6.5 billion. I'll talk to you about it turning into almost $18 billion with our opportunities around retail, Pro distribution, and industrial MRO. Our customers and their end users are very important to understand. We look at our business; it's 70% DIY and 30% Pro. This is not us going into an area that we haven't been before, and we're gonna share with you just how much progress we've made in the area of Pro and how we're gonna continue to expand that as we go forward. The strong financial performance should give you confidence that we're gonna be able to continue to move this business forward. We've expanded our gross margins by over 600 basis points. We've improved net EBITDA by 300 basis points, and we've re-reduced our leverage down over two times. That should give you confidence that we're gonna continue to move this business forward, and that we have the team on the field to be able to do just that. Let's talk a little bit about that progress. We've improved EBITDA by close to $70 million over the last five years in a challenging market. Again, I already mentioned about the leverage improvement, but we've driven down net debt over $250 million. That should give you the confidence that this business can perform in good times and bad. That's really what we're about to talk about here today is about the opportunities we have to move forward. If you think about our profit and our improvement over that period of time, I think it's important to break down the different pieces. We're proud to say that we've doubled the net income CAGR compared to our peers over the last five years. At the same time, we've improved our EBITDA margins by over 150 basis points over our peers. Then we've driven this business to a nice, profitable point to where we can grow off of as we go forward. The big question here, I think for all of you and for us, is how do we continue to improve this business? It's gonna be through growth. We think that's why there's tremendous opportunity with this company. As you look that we trade to over a 50% discount to our peer set. What we're gonna talk about here today with, between myself and the rest of the leadership team, is about how we're gonna actually do just that. We're gonna show you how we're gonna grow the business. We're gonna continue to expand and move forward. To start there, we got to talk about the platform and the business. It's important to understand we have three businesses that we focus on. The fastening and hardware business, close to 70% of our portfolio. It's where the company started, and we've continued to grow. It's the vast majority of our over 111,000 SKUs that we serve our customers with excellence day in and day out. It's everything from common nuts and bolts to engineered fasteners that those of you in person are gonna be able to see later here today. We're proud of this portfolio. We're gonna continue to build it, and we have the products to serve not only the DIY, but also the Pro. Turning to Protective Solutions, another important part of our category, it is the gloves, the protective gear that you need to do, whether it's a DIY project or a Pro project. We'll talk about some of the advancements we have in that business as well. RDS, our Robotics and Digital Solutions. It's our key business. Scott's gonna come up and talk to you about some of the exciting technology advancements we have in that area. These three businesses are the platform that we're gonna continue to build off of as we move forward. Our end markets. As I mentioned, the Pro is an important part of our equation as we move forward. We wanna continue to serve the DIYer, but it's important that we'll break out here what we call retail pro distribution, industrial MRO. James Daly, our SVP of Pro, Chris Martin, our EVP of C&I, and I will come up and talk to you about those three businesses and explain to you how we're gonna continue to advance those markets. Then the geography. You know, we focus on North America, and we're proud of that market. We believe we have a tremendous opportunity and a lot of runways for us to go after in those markets where we are today. Next, we'll turn to the blueprint, and this is something I'm really excited about. It's something that we developed over the course of the last year as a team. We didn't just create it for Investor Day, but I'm proud to say this is not only what we're doing and sharing with you in Investor Day, but it's what we're doing and how we're running the business. We developed this in 2025, and we rolled it out in 2026. The simple blueprint here that will go into greater detail throughout the presentation is about how we own the core. We're gonna focus on taking care of our customers, which we've been doing for over 60 years. We're gonna show you and explain to you how we're gonna grow that core through category expansion, both organic and inorganic, and then winning the pro. It's where that we are today with the Pro and how we extend that and grow it into the channels where we have permission to play and where we are today, and we're gonna show you how we're gonna do just that. The key here is the ROIC focus. It's the way we've been running the business for a while, but we've now expanded the way we look at ROIC. It's not just me and Rocky talking about projects and initiatives. It's how the leadership team looks at growth. Any growth capital, M&A, all goes through the lens of ROIC. That's why we're confident that we're gonna maintain the strong profitability, the improvement in the balance sheet, and we're gonna grow this business as we move forward. Now we'll talk to the value creation catalysts. For us, it's very important. We have a very resilient business. For many of you who've been following the story for a long period of time, we do well in tough times. We're able to take care of our customers. We are resilient. It's what part is what makes Hillman such a great company. In tough times, this business does well, but what we have also is that resilience to grow when there's opportunities, and that's what we're gonna explain to you here today. Our teams are focused on moving the business forward, and I'm excited about the path that we're gonna share with you. We have a large untapped TAM. As I'll break down in the next couple of slides, you'll see that we have the opportunity to grow in each of our markets. Integrated operations. I'm excited. Bob Davis is gonna walk you through our operations and then what we've been working on for many years to continue to strengthen our operations and get better and stronger and service our customers better each and every day. In 2025, we had one of the best, if not the best, service year that we've ever had in our company's history in a pretty challenging time. That should give you confidence. It gives us confidence that we're ready to move this business forward and grow. A solid balance sheet. As I mentioned, we're in the range of our target leverage. Rocky will go into much greater detail later, but that's an important thing. We have a solid balance sheet that we're gonna continue to maintain and grow as we go forward, meaning we're gonna continue to invest in this business, and we have the ability to do so. Then a highly experienced team. We got Rocky will be up here. Many of the members of the leadership team are here are gonna be presenting, but they're also gonna be out here for Q&A and doing product demos, different things. You that are in person are gonna be able to interact with them firsthand to see that this leadership team is deep and strong. That's what's gonna give you the confidence that we're gonna be able to grow this business and move it forward. We're excited to share that we have a path to grow this business to $2.5 billion over the next five years. That solid path and trajectory, as I outlined earlier, is because we've proven that we can run this business well, and these are the buckets that we're gonna focus on as we go forward. We will talk in the future and update you on core growth. That's the day-to-day of how we run the business. It's things like market growth. It's customer footprint changes. It's category management. It's price. It's how we run the business. We'll update you on that on a quarterly basis as we go forward, but that is how we actually run the core. New business wins. The way we run the business day in and day out, you're gonna be excited to see here today that we're gonna increase our focus on new business wins. In the past, we've said we're gonna be 2%+. We're gonna increase that to 4%+ over the next five years, and that's gonna be largely driven by our focus on pro and some of the great momentum we have in that business. M&A. While it's always been part of our history, we've done well over 20 deals. It's a part of how we believe we can augment and continue to grow our business, and Michael will walk you through great detail on what we're doing there and some of the exciting activity that we have in place. When we drive all these activities and deliver it, you're gonna see that we're gonna be a $2.5 billion+ company. We're really excited about the momentum we have, and today we're gonna walk through and share with you where we're going. The five-year financial objectives. On the previous page, I showed you that walk. That's averaging between 8%-12% over the five-year period. Rocky will go into more detail on how we actually get to that revenue CAGR, but we're excited we have a path and we're gonna continue to grow. Low double-digit EBITDA, we're gonna continue to grow profitably. We are gonna maintain our net leverage at 2.5 and below. If we do any deals that move us above 2.5, we'll have a path to get back to it. We're gonna maintain that balance sheet discipline that we've put in place in the last several years. Newer for our story is we're gonna focus on our ROIC. Rocky will walk you through the calculation in more detail, but our team is driven and incented to drive profitable growth, and ROIC is gonna be our measure. This is the team that you'll see that's gonna execute. Very proud of this leadership team. We have years of industry experience, but we also bring experience from other parts of the world. It's very important that as you think about Hillman's evolution, we continue to grow through challenging times and good times. You've got to continue to build your business and bring in talent that can move you forward. This is the leadership team that's doing just that. I'm excited to share them with you today, and you'll be able to hear from the leaders firsthand on what they're doing to move the business forward. I'm proud of this team that's on the field, and we look forward to winning in the next five years, and we're gonna demonstrate the performance that we can deliver. Now many of you are probably thinking about, well, JMA, we've heard you talk about retail. We've heard you talk about all the great growth and partners that you have. How are you thinking about that $18 billion TAM? Well, here it is. We spent quite a bit of time in 2025 into 2026 really breaking down our business, thinking about our core, how we take care of our customers, how we actually grow them. It was important to break down first and say, "Where do you play today, and what are the channels you serve?" We identified three areas that are very important for us. Retail. We love our retail business. We're focused on. This is not a shift away from retail. This is supporting our retail partners, continuing to support them and what they do today. They service DIY as well as Pro. James will walk you through how we're gonna grow with them as they continue to shift and focus on the Pro. Pro distribution. Chris will come and talk to you about specialty distribution and one of the businesses we have today, one of our solid businesses where we actually focus on the Pro day in and day out, and how we're gonna grow that and what it means to play and win in that area. I'll also talk about LBM, which is in part of our pro distribution space. Industrial MRO. Some may say, "Well, we didn't even know you were in that space." It's actually that we've been in that business for over 100 years. Our Paulin Industrial business in Canada that we acquired has actually been in that business for over 100 years, servicing the industrial maintenance and repair professionals. That's another area where we have a common theme in what we can do. We have leverage across these areas. We have great products, and in many cases, we have the products necessary to serve the pro. It's about giving them the products the way they want, and we'll explain what that means as we go through the presentation. With that, I think it's important to really look at where's the retail position and how do we grow into the pro presence. This is how we break down the markets. There's $6.5 billion that we have in retail, and we're gonna grow with our retail partners. We're gonna talk about that as we go throughout the day. I will thread back to this page numerous times throughout the presentation to make sure you understand that we have a 20% share there with opportunity to grow. Brett's gonna go into great detail what we're gonna do there. Pro distribution, again, we have small share, $200 million business, 3% share in a massive market. No, this is not to say we're gonna be able to go capture all that share, but we were gonna make meaningful traction in our organic as well as inorganically in this space. Industrial MRO, another area that we serve today and believe that we can serve in a greater way tomorrow. That'll be organic. We will grow there, and also inorganically, we have opportunities to grow. This is how you should be thinking about the landscape that Hillman is gonna be operating in and why we are gonna have permission to grow. We're excited about sharing this in more detail as we go throughout the presentation here today. As we get ready to shift, I want you to get ready for Brett Hillman. He's gonna come up here. He's our EVP of Sales. Brett is gonna walk you through how we own the core and how we expand it. We're really excited about the opportunities we have to share with you there today. With that, I would like to welcome Brett up to the stage. Brett? All right. Well, thank you, J.M.A., and good morning, everyone. I'm Brett Hillman, I lead our retail sales business. I've been with Hillman for 21 years, spending 18 of those on the sales side and in front of customers. Selling at Hillman is literally in my blood, and I couldn't be more excited to share our retail growth strategy with all of you today. Let's start with how we win the core. First, let's define the core. The core are the existing categories that we sell into our existing customers today. This strong foundation has been built over 62 years, product by product, customer by customer, and has provided us a differentiated solution that allows us to win. We are truly in a league of our own. Said differently, there's nobody quite like us. Our scale, from our product breadth to our direct-to-store distribution, to the people in the stores serving our customers every single day, we are the only true comprehensive solution in hardware. That moat starts with deep relationships with all of our customers, big and small. Our customers want to buy from Hillman. More importantly, they wanna buy more from Hillman because we offer a solution that manages their complexity while also growing their retail sales. Now let's talk about where we play. As you can see here, we span across a lot of categories. This extensive portfolio, as JMA mentioned, started with core fasteners 62 years ago, and it's evolved over time through a combination of M&A and new category launches. Our strategy has always been to enter new categories that we believe we can leverage that moat that you've heard of so many times to be number one. We develop categories like Builders Hardware because our customers asked us. We develop categories like power screws or SmartKey because we knew that's where the market was going. We've also acquired into categories like Rope and Chain and gloves because we believe that our value proposition gives us the right to win, all while maintaining 90% brand ownership. All right. Why we win. These six core competencies are incredibly important. In combination, we believe we have a distinct advantage versus the competition. Let's start with our product breadth. We manage over 111,000 SKUs, selling into 29,000 retail locations with an average store carrying over 8,000 of our products. This breadth of product, especially in categories like fasteners, is critical for our retailer to win and to be able to provide that one-stop solution to meet the needs of their customers. The age-old slogan from our retailers, "If we don't have it, you don't need it," still exists today. Now, not everywhere, but it is a real thing, and they count on Hillman to deliver that comprehensive solution. Next is innovation. We'll talk more about this in just a few minutes, but we invest heavily in new product development as the consumer continues to pursue better-performing products, especially the pro, who's always looking to save on time and battery life for their tools. Our customers consistently ask us what's new and count on us to bring those innovative solutions. Category management. Because our extensive product breadth and consistently bringing new products to the market, our customers heavily rely on us to manage those categories and drive their core. We partner every day with our customers in retail across all channels, from big box to local hardware store, to create customized and localized solutions, maximizing that customer experience. We base these decisions on data, whether it's point-of-sale data, shipment data, or consumer insights to know where the market's going. Field sales team, also known as the secret sauce, you've heard that. Our 1,200 sales and service folks provide the ultimate differentiation from the competition. These folks are directly responsible for driving growth at the shelf in every retail location. They maintain our displays. They manage the inventory. They write orders. They do PK sessions. They train associates. They sell new products. Most importantly, they own the relationship from maybe the hardware store owner, the store manager, or even the associate in the aisle. They are an invaluable asset to our retailers. The last two, direct-to-store distribution and dual faucet global sourcing. Look, we have a very unique operating model that allows us to do all that other stuff, but I don't want to steal Bob Davis's thunder, so I'll let him talk with all of you about those capabilities. In summary, all these superior capabilities provide us an overall value that nobody else can offer, grounded in customer relationships that go back decades. We are a strategic partner. We're the one-stop-shop. We manage their complexity. We innovate. We deliver operationally every day, and we prioritize those customer relationships from the senior executives at our largest customers down to the associate in a store. This is why we win. We put our customers first. Those relationships are diverse. Let me tell you what that means. We are entrenched with our retailers across dozens of categories, leveraging our portfolio and our field team. Said differently, we're very sticky and our customers across all retail channels. Example, both of our big box customers, in addition to our largest hardware chain customer, we earn on average of seven different departments. There are an average of 19 merchant buyers that we call on managing thousands of SKUs every day. There's a little risk of lost business with only one category at a single customer representing more than 4% of our total revenue. Most importantly, this stickiness gives us a right to win new business, and we have significant runway with every one of our customers. Now let's talk about how we grow the core organically outside of the footprints that we serve today through category expansion and new product innovation. Our strategy to expand categories will come in two forms. First, we're gonna leverage existing categories in the moat and gain incremental shelf space, both with existing customers as well as new prospects. We call this new business, and this is part of our DNA as a sales-driven organization. Second, we're gonna expand new categories to drive meaningful growth over the long haul. These categories are selected based on where we believe the moat can make the biggest difference and where we believe we can be number one. In some cases, like I said earlier, our customers will push us into a category like Builders Hardware, which we built and launched back in 2011. In other cases, we enter a category because that's where the market trends are going. Like with a pro, where we launch Structural Screws, which is replacing commodity-type products like lag screws and carriage bolts. Again, we're leaning in on both fronts because we have the broadest range of core competencies in our space that allows us to win. Some recent examples. Displacing a competitor in the hinge category at one of our big box customers. Partnering with a big box customer to create an innovative Tool Rig solution to meet the needs of the pro. Displacing a long-standing competitor in the Rope and Chain category at our largest hardware chain customer and continually launching new products that help us maximize our performance on the shelf so our retailers can win. This innovation I talked about, it's critical. As the saying goes, innovate or die. We focus on the consumer, not where they'll be tomorrow, but where they'll be three to five years. Our goal is always to elevate our premium brands to ensure we stay one step ahead of the competition. The latest example is Power Pro 4.0. This is our fourth generation Power Pro screw, head and shoulders above any other screw out there. The development took three years. While Power Pro 3.0 was a great screw, we felt obligated to raise the bar and create something that both the DIY and the pro could benefit from. This has been a great win since we launched in 2024, and continues to help us win the pro. All of you here in Cincinnati are gonna see this innovation come to life later today in our product demos. Where does all this category opportunity take us in expansion? Well, simple. We partner with our retailers. There happens to be a ton of runway with the customers and the channels that we serve today, both in categories that we already sell today, as well as categories that we could potentially build and/or buy someday in the future. We could nearly double our share by expanding our footprints and leveraging the moat. This will be our North Star for growth in retail over the next three to five years. Thanks, everyone. I appreciate your time. Now I'm gonna hand it over to Scott Moore, our President of RDS. Good morning, everyone. Thanks, Brett. My name is Scott Moore. I'm the Divisional President of Robotics and Digital Solutions, what we call RDS. I wanna thank you all for being here today. Super excited to talk to you about the business, not only how we're gonna own the core, but how we're gonna leverage our reputation and our investments to grow the core. I have a deep history with this business. I was one of the early founders back in 2011, serving as the CTO essentially through the 2018 acquisition by Hillman in 2018. Went on to serve as the CTO for Hillman in 2022. In 2024, I was asked to return to lead the business, which I was super excited about because not only do I love the people, I love the products, and I love what we have to offer our customers. You hear JMA talk about how we take care of our customers. You just heard Brett talk about how we define our core. Let me tell you about how we own the core at RDS. We've built our reputation on four things. Quality product, convenience for our customer, competitive pricing, and a 100% money-back guarantee. That's why we've cut over 300 million keys on Mini Key machines. Our customers have come to know and trust our brand over the last 15 years. Let's take a look at the business. Today, we have a very healthy and profitable organization that's generating $220 million net sales for last year. We did that with over 3,000 machines in very high retail foot traffic locations. As you can see, Minute Key is our flagship, 45% of our revenues. We're gonna talk more about the Minute Key machine in a minute. Second is our manual key business at 32% of revenues. This is roughly 9,000 machines out there that are store associate operated. They cut 150 different types of keys. It's a direct-to-store inventory model. Serviced by our sales folks who are in these stores on a regular basis. This is a very consistent, very profitable business that we still consider a big piece of our core. Pet tag engraving is third, at 18% of revenues. We have roughly 7,000 of these machines. We're in the top 3 big brick-and-mortar retailers out there today. Rounding out the mix is our Resharp machines. We have roughly 1,000 of those, and then we do some third-party servicing for others. Regardless of what machine we're talking about in our fleet, they all have one thing in common, and that's unmatched quality. 100% assembled in the USA in our Tempe facility. We design, we engineer, we manufacture, we refurb there. We take great pride in what we do. We have unmatched accuracy on our machines. We cut keys to ±2 thou. We have excellent uptime, very high reliability, and very low customer return rates. Helping us drive that is our technology behind the scenes. We do advanced remote management, predictive maintenance, and a lot of data analytics. We designed our systems around one principle, and that's why we like to think of kiosks like Mars rovers. We build these things, you send them into space, and you can never touch them again. We do everything we can remotely. We even design them to be self-healing. If they lose power, they lose cell connectivity, they can heal themselves. They can continue to talk to the mothership, serve our customer. That's what's helped us, along with our 250 people out in the field, to maintain 99% uptime. Today, we troubleshoot over 90% of our problems without a customer or a store even knowing. We track every single touch of every single screen on every single machine 24/7. We generate 4.5 million events per day, and we use that data to improve our customer experience and to improve our reliability. Let's talk about the newest version of our MinuteKey 3.5. This one is opening up four new growth opportunities for us. The first is auto keys, not only the traditional keys, but also transponders and smartphones. We have over 1,200 auto keys in our catalog today, and we're constantly growing our coverage on a monthly basis. We also are offering a DIY dongle for our customers to do the programming themselves if they wish. It's about the size of this clicker here. You can use this thing paired with a smartphone to program it to your car. Exciting option for DIY. Next is Endless Aisle. This has really been fantastic for us. This gives our customer access to our entire catalog of keys regardless of where they are. For example, if we don't have a key at the kiosk available to them, we can scan, we can cut and ship it to them directly from Tempe within 24 hours. If you happen to be a Cincinnati Bengals fan or Ohio State fan living elsewhere in the U.S., we can get you that key sent to you in 24 hours. Although we still have 1,000 of these things to put out, we're already doing 18,000 orders per month of Endless Aisle. It's a big success for the old home and office key. RFID is our number three capability here. We've got 90% coverage of this market. It's a pretty cool piece of engineering. You simply scan your RFID fob at the machine. We dispense it fully programmed and packaged. You'll get an opportunity to see it firsthand over here. At lunchtime we do a demo. Last but not least, our content management system. We can deploy ads to the kiosks, not only for our own services, but for others, sort of paid advertising. Now comes the exciting part. We talked about the auto keys. This new platform we get to leverage into this new TAM for us. It's a $250 million market, which we have less than 10% today. We are confident we can take it to 30%. Let me tell you why. First, we've been in the auto business for a long time. We have a retail program with one of our largest partners, and we've been doing it for over 10 years. The catalyst here is we get to take that knowledge and experience of the retail program and combine it with the convenience of our kiosk in 5,000 new locations to drive this business. The second reason we're confident is this market is terribly underserved, and we know there's a huge need. Think about locksmiths. Think about dealerships. Right? These are painful experiences and very expensive. I have my own personal experience from several years ago. My daughter turned 16. I gave her my used SUV. Unfortunately, I only had one key for it. Well, come Saturday morning, about three minutes later, she's panicking. She's late for a soccer game. She can't find the key. She blocked me in to the garage, so mom gets to take her to the game. Dad has to stay behind and look for a key. Long story short, I looked all weekend for this thing along with the family, and we never found it. Come Monday morning, I have to go to work. We had to tow that thing to the dealership. I contact the dealership. They say, "Oh, it's gonna be probably Thursday before we can get it to you. We've got to order a special order this thing. We gotta look up the VIN. We gotta program it, cut it, et cetera." They were right. Thursday, I go pick it up. Guess what the bill was? Over $1,100. Guys, the Blue Book on this car was $2,400. Right? Tell me I was a happy customer. Bottom line, there is a huge need for this, and we have an excellent solution. You can do a car key at our kiosk in less than five minutes. Up to 60% dealership savings and over 91% of our customers have said they would use us again or refer us to others. Let's talk about how we see the financials moving forward. We have spent the last three years investing significant capital, as many of you know, in this platform. We are now shifting our focus to driving excellent returns and free cash flow. Our goal is to generate steady, predictable revenue growth with a gross margin and EBITDA margin that you see here on this page. We're gonna continue to leverage our 3.5 technology for the home and office market with these newer offerings. Where we're going is auto, and we're gonna do for auto keys what we've done for home and office keys. I'm confident we can do that because we've done it with home office keys in the same way, right? Quality product, convenience, great pricing, and a 100% money-back guarantee. With that, thank you again, and we'll hand it over to Bob Davis. Thank you, sir. Good morning. First, let me thank all of you for joining us today and learning more about Hillman and our global supply chain. I'm Bob Davis. I'm the Executive Vice President of Global Supply Chain. Some of you may know me as your Uber driver from last night. I appreciate the five stars that you guys gave me for getting you back to the hotel safe. Just a little bit about me. I'm a veteran of the U.S. Navy. I spent 12 years at Target Corporation, 16 years at Home Depot, all in supply chain, and I'm on my fifth year here at Hillman and loving it here. I know Jon Michael Adinolfi spoke a little bit about our margin expansion today. You know, those margin gains are directly tied to our structural supply chain actions here at Hillman, and we built these over the years rather than just temporary market forces. Hillman owns its core. We're gonna spend some time talking about that this morning. We've constructed a structural moat here at Hillman that is a direct driver of the bottom line. The moat really begins with our integrated supply chain. So, let's jump into it. Basically, what this tells you is we own it from end to end. We own it from the sourcing piece of it that we work directly with the factories all across the globe. We own it from planning and procurement, the ocean transit, customs clearance, dray to our DCs, and the final mile delivery from our distribution centers to our customers. We own the whole process from end to end. You're gonna see down at the bottom, it talks a little bit about dual faucet. I'm gonna get into that a little bit more on the next slide, and really enjoy talking about that because that's really where we win out there. The end-to-end logistics, when we look at this, we own this through our in-house team. When I say that we own it. We contract directly with our ocean carriers. We don't use a brokerage service for that. We contract directly with our freight agents. We contract directly with our LTL and our small package providers. We have an entire logistics team that does that for us. We also have our own booking team that handles our bookings across the globe, located in Vietnam. On the customs and trade side, we've got two licensed customs brokers on staff, and we needed them this year, that's for sure. When you look at that, they keep us compliant, you know, within the current model changes in customs that we've seen over the past 12 months. Finally, looking at our optimized distribution network, what that really means is having the DCs in the right location. We don't do this by accident. It's about keeping our DCs close to our customers so that we can take advantage of that final mile delivery. As everyone knows, in distribution, freight is the most expensive piece of it. Any way that we can reduce that gives us an advantage over the competition. Let's talk a little bit about dual faucet. What this really means to us is years ago in sourcing, all the focus was on FOB costing. How much does it actually cost to buy the product at origin? Today, that's not what's important. Today, what's important is what is the landed cost of the product. With tariffs, with duties, with freight costs, all these things are important to us. We look at it in its entirety, and that's how we solve for it. When you look at the dual faucet, you know, basically it's pretty simple. I've got a faucet on over here in one country of origin with a particular vendor, or I may have multi sources within that country that I've got a faucet on. Over here in another country, I've got that faucet as a trickle. In other words, I've already qualified the supplier there. If something happens that impacts capacity, you know, it could be a geopolitical event, it could be a tariff, it could be, you know, some other cause. I can simply change the plumbing. I can turn the faucet on here, and I can dial down the faucet over here. To give you a real-world example of that occurred this past year with everything going on with tariffs, we are a pretty large seller of umbrellas. If you've ever been out in one of our major retailers and a thunderstorm broke loose, you're going to find a box of our umbrellas right there by the front door, you know, 'cause it's very convenient to pick that up and be able to make it out to your car. Well, we produced all of our umbrellas out of China. When Liberation Day occurred, tariffs came in, and within about four days, they shot up to about 100% in China. Well, that impacted our cost on umbrellas. We were easily able to shut down that tap, open up a tap in India, where there's a major manufacturer there, and be able to take advantage of that reduced landed cost and be able to do that quickly. What happened next? Tariffs went up in India; tariffs came down in China. We were able to shift again right back to China just by changing where we were cutting the POs to, again, to take advantage of that landed cost. Tariffs came back down in India, and due to their FOB cost, we were able to shift back again. That gives us a unique advantage of having what we call our dual faucet strategy, and we've worked very hard on that. We've done that all over Southeast Asia with our partners there. One of the things that you can see when you look at the graphs up here from 2018 to 2025, and this is really talking more about the dependency that may exist from a China perspective. We went from 49% of their product sourced out of China to 32% of our product sourced out of China. What's even more important is if you look over to year ending this year, our capabilities, and I'm going to reiterate this, but our capabilities is we could reduce our sourcing impact coming out of China down to 10%. What I want to stress, though, is that is a capability. It's not a mandate. We're not going to box ourselves into a corner, right? Wherever we can provide a quality product at the most competitive price to give Hillman and our customers a competitive advantage, that's where we're going to source from. Again, not a mandate. We have that capability, but I can easily move that volume across. All that's really coming through the partnerships that we've developed over the years with our suppliers. Jon Michael mentioned earlier in his presentation, you know, about the long-term partnerships we have with suppliers. Some of our suppliers we've been doing business with for over 60 years. That's very important to us because when we went down this road and said, "This is going to be very important to us to be able to have this dual sourcing strategy," it's very difficult to bring new suppliers on board. You got to teach them about your product. You got to qualify them as a supplier. You know, several audits that these suppliers have to go through to meet the requirements of our customers. It's about the product. The product has to be qualified. Does it meet our specifications consistently from a quality perspective? Can they meet our packaging requirements? Can they ship on time? In doing that, the easiest way to do that is you take partners that you get long relationships with. You work with them to open factories in other countries. Over the past year and a half, we've been successful in working with long-term suppliers and opened factory, over 45 factories in other Southeast Asian countries. That gives us that quick ability to shift. What that means for us is they already know our product, they already know our business, they already know our packaging. We already know them as far as being able to qualify them. We can bring them up quickly. We'll be opening another eight factories this year in those partnerships with those suppliers. When you have to go out and do that with a brand-new supplier, what happens to you is you have to go through that long, lengthy process of getting them on board. More importantly, what happens to you is your first PO that you cut with a brand-new supplier, your lead time from PO to ship date is gonna be roughly 150 days. That's what the average is. Our partners that we work with day to day, they can, from a PO to ship date, 45 days. You think of that gap. That's a lot of inventory that I have to carry, which is not good for our cash flow, right? By keeping these suppliers close to us, working with them, we improve our lead time, which means I have to hold less inventory, which that's a benefit to our cash flow. Okay, let's talk a little bit about our network design. We have 24 distribution centers across North America. In those 24 distribution centers, 97% of our customers we can reach in two days. 85% we can reach in one day. You know, again, this isn't by accident. We can turn an order in 24 hours. From the time we get the order to the time we ship the order, we can turn that order for them in 24 hours, and we do that at a 98% fill rate. I know, Brett earlier mentioned stickiness. That gives you stickiness for the customer. Where a competitor may come in and offer them something else, it's hard to give up a 98% fill rate and that consistency of receiving their orders to keep the product on their shelf. We're constantly optimizing our network. You know, if you take a recent expansion that we just did in Bakersfield, we added 100,000 sq ft to it. The reason that we did that wasn't really due to capacity in Bakersfield. If we had opportunity for product that we had located in Dallas, that we could move that product closer to our customer by putting it in Bakersfield. That's significant savings to us from a freight cost perspective. Again, freight cost is that number one priority that we look at when we're looking at our distribution network. That enabled to reduce our cost again by doing that and improved our service levels for that customer. We've done these same things in other DCs as far as expansions. We've applied the same logic in Kansas City, recent optimization that we did in Jacksonville. Again, I'm just gonna remind you, nothing's more expensive in distribution than freight. We keep a very close eye on that. By doing that makes us the most efficient supplier in the aisle for our customers. Let's talk a little bit about building a smarter and faster supply chain. I know it was dark this morning when you came in, and I was hoping it'd be a little bit lighter 'cause you would've noticed off to the right of the interstate, there's a large construction site going on over there. We say this, you know, with a lot of love, but a former zombie mall that we had here in Cincinnati that had been vacant, really an eyesore for the community. We worked close with the local community and a national builder. They acquired that site, and what you're gonna see going up there is a 715,000 sq ft distribution site. We call it our DC of the future. That's going up now. The construction is in process, and we'll see that building up early next year. Now, that'll be a consolidation opportunity for us for multiple facilities that we have in the marketplace. This facility will be fully automated, and it'll be a multipurpose facility. When you think of this, it's gonna be our flagship. Basically, we'll be deploying state-of-the-art systems there. It'll include goods-to-person. It'll include auto pallet retrieval and storage, autonomous vehicles, top-tier transportation management system. While all that will live here physically, it'll benefit the entire network. You know, we invest in our DCs based on what the needs of our customers are. The investment in automation and robotics in the facilities are very attractive upgrade for us. That automation will drive efficiencies for the business. That's how they pay for themselves. You'll have the opportunity today to actually walk one of our facilities, which is the Carillon for those of you that are joining the tours. My hat's off to the Hillman family 'cause 25 years ago, they built a facility that was state-of-the-art at that time, and that launched their business forward, which is why we're doing the same thing today. The only problem is it's 25 years old. You know, the automation's antiquated. You can't keep up with it anymore, and it's time to evolve and move into the future. I think you'll be quite impressed with the facility when you have a chance to walk it today. The biggest win is we get to consolidate multiple aging facilities into this one. It's gonna be a modern hub. It'll be located right here in Cincinnati, which is where the majority of our volume ships out of to a lot of our current customers. Cincinnati's been our home for over 60 years. It gives us an advantage as well, since we're consolidating multiple facilities into this, that I don't have to go out and rehire employees. We're only two miles down the road from where we'll be moving them from. All of that expense goes away. We get to gain the experience that's valuable to us here. That's a big win for us. This facility will be a true omnichannel facility. We can service the pro out of it. We can service retail out of it. We can service e-commerce out of it. We can do it all out of this facility. We're very excited about this facility coming online. Okay, this is where we're gonna bring it all together. Everything I've talked about today, the integrated operations, the dual faucet sourcing, the automation in Cincinnati, it all culminates in Hillman being ready to take care of our customers. The smarter, faster supply chain, the DC of the future, it's gonna give us scale or scale and more efficiency. The result of that you can see right here. If you look at 2025, 49% gross margin, that's up 600 basis points. 100% free cash flow conversion, that's our average from 2022 to 2025. These results speak to the power of our integrated approach. At Hillman, our global supply chain operation gives us a structural advantage over our competition. We don't just hope for stability, we engineered it. Our supply chain is a profit engine. It is the reason we're set to continue to outperform in the market. I'm gonna turn it over to our next presenter now, Aaron Parker. Thank you very much, and I'll be around for Q&A later. Thanks, Bob. Good morning. I'm Aaron Parker, and I serve as the Chief People Officer. Now, don't worry, this isn't a training session. No icebreakers or personality assessments today. I'm here to talk about our talent and culture that gives us a competitive advantage. Prior to Hillman, I held HR leadership roles in the banking and retail industries. I'm entering my sixth year at Hillman, and from my experience, what sets Hillman apart is that we recognize our greatest impact starts with the people in the field who directly serve our customers. Far today, you have heard about our strategic blueprint to own the core and expand categories. Delivering on this strategy starts with a strong foundation, one rooted in service, and as we have shifted and became a public company in 2021, we've also streamlined our organization and improved SG&A discipline. Recently, we refreshed our vision, mission, and values to reflect who we are, where we're going, and what we expect of our employees. JMA mentioned earlier how we are a resilient company. In fact, one of our core values is resilience. It's truly a part of our DNA. Whether navigating the pandemic and most recently, tariffs in 2025, we have shown time after time our business is ready for whatever comes our way. As we focus on strategic growth and building for the future, we have intentionally invested in bringing in talent into our field sales, business development, and Pro leadership teams with a focus on growing now and into the future. Now, the power of our company starts with our people. Brett shared earlier the ways we win. It starts with our 1,200 field sales and service team members. Our focus on safety and retention continues to outperform industry benchmarks with lower incident rates and higher average tenure, which all helps to fuel our strong EBITDA margin performance. We truly believe our people make the difference in giving us the ability to successfully execute our blueprint strategy. Now, as we enter year five of being publicly traded, we are excited to share we are being recognized as a USA TODAY Top Workplaces. Only 100 organizations with 2,500+ employees will be recognized with this award. Last year, 83% of our employees chose to share their experience at Hillman through our survey, which I see as a strong indicator of the engagement and commitment across our workforce. This recognition strengthens our employer brand and helps us further attract and retain high-quality talent. Ultimately, this recognition validates that our culture is a competitive advantage. Next, I will turn over to JMA and Michael Koehler for Q&A. Thanks, Aaron. We'll open it up for Q&A for about 15 minutes or so. Just some housekeeping. Andrew, I see you've already got your hand up so, please raise your hand. I'll bring you the microphone, and we ask that you limit your question, one question and a follow-up. Let's keep our questions on topic with the speakers we've got up here. Thank you very much. Andrew Carter, Stifel. Curious on the RDS. Really appreciate the presentation and the granularity there. In terms of, number one, you said kinda steady growth from here. That was kinda something that I believe used to be a double-digit grower. Wanna confirm what you're thinking about that business. Obviously, it's a great business with the placement you have, the technology. As far as, you know, keeping it within Hillman, do you think that you have the necessary resources for R&D to keep up with tech, also potential for, you know, capital, whatever, to really get everything you need out of this business to really fully realize its potential? Thanks. Thanks, Andrew. Can you guys hear me? Good. Yeah, thank you for that question. I think the first part was where do you see it going in terms of growth? Yeah, I think that's gonna be in line, obviously, with what you're gonna see here for the overall business. We're gonna be in step with that. I don't wanna give exact numbers, but I'm gonna be happy with it. Let's put it that way. Second of all, in terms of being under Hillman and having access to all the resources, certainly. We have already made, as I suggested, a significant investment in this platform. We're where we need to be to leverage it, and I think we have a bright future in terms of everything R&D, everything Tempe, everything we need to do. I'm super excited about where we're going. Yeah, I mean, Scott, good answer to the question, Andrew. Appreciate the interest there. I mean, one of the things I'll turn to is Scott talked a lot about 3.5. We're really excited about the technology. I think you know how, you know, my approach is. We're gonna tell you about it as it continues to exceed expectations. We're pleased with how we performed in 2025. We're excited 'cause we're gonna improve on that even in 2026. I'll say firsthand, Brett and I were just actually out in the field with our, you know, our 3.5, I'll call it, team with one of our West Coast blitzes just a few weeks ago. To see the action and the power of the Hillman, I'll say what machine or what we can do that's bringing all of our people in the field together with our product teams and seeing the action out there and getting excitement. It just gives you an example of where and how that fits with the portfolio and how we're gonna be able to build on it. Andrew, I think there's some really good opportunities. A lot of that was driven around automotive, and we're gonna continue to lean into it. I think we got some exciting days ahead. We really believe in the technology and the path forward. I'm in the questions today. Brett, I was wondering if you could talk about the similarities or differences between you guys getting into different categories 15 years ago within the hardware aisle and expanding into the Pro channel. Is this something that's gonna be more driven by organic like you did in, say, Builders Hardware or more of a broken chain situation where you got to buy more access to that customer base? Reuben, I'll start it. I'll let Brett add on to it. It is a mix of the two, Reuben, and you're gonna hear a lot more about Pro here in the next section, where we're gonna go pretty deep on how we break it down. You know, in retail, I mean, Brett's team has done a great job. I'll let him expand on it. You know, for us, we really believe that this is one where we've got the products. A matter of fact, I'll start out my presentation talking a little bit about what we have in the core, the moat we have today, and how we're gonna expand that and take care of the Pro. Be patient on that part of the answer. Brett, anything you want to add a little bit of what we're doing. I would agree. I would say it depends on the category. It depends on whether it's retail or whether it's pro. I think the larger the category, the more likely we'll have to buy our way into that. There's gonna be some called bolt-on categories that we'll build. Different than maybe what it was 15 years ago when we got into Builders Hardware. The good news is our customers are encouraging us to explore those opportunities. Okay, thanks. I'm gonna change my follow-up then, since I think I got ahead of myself. So Bob, I was gonna be disappointed if you didn't say dual faucet today. Can you walk through, I guess, how the competition has reacted, if you have insight, meaning are the others also pivoting like you are? Or how big of a differentiator is it for you that you're able to kind of move with your suppliers to other countries? Well, I would assume the competition is doing similar things. It's hard for me to know that because, unfortunately, they don't share a lot of that information with us. I do feel comfortable that we've been out in front and leading in this area. The reason that I can say that is because as we're on boots on the ground, I'll be leaving again for Asia at the end of this month, that's what we're hearing from the factories there. I do feel like that we got a jump on this to be able to get out in front of it. This wasn't something that we took on immediately when tariffs were announced. We started this road two years ago. I've always been a firm believer that you had to be multi-sourced, because you just never know what's gonna happen in the marketplace. The expansion and pushing that across to other countries of origin have been a benefit for our suppliers as well as because it gives them the opportunity to grow as well. They've been very anxious to meet us there because you got to think about it, you know, the alternative to that is when somebody imposes a 150% tariff on, you're out of business. It's been very good for us. Hi, Lee Jagoda, CJS. I guess one for Scott, one for Bob. For Scott, just on the 3.5 rollout, in particular with the auto key fobs, can you give us some real-world examples on how you plan to market it to the consumer to drive adoption other than just, you know, having the picture on the side of the machine? Sure. Great question. We've been doing market blitzes to raise awareness because for years, we did not offer auto keys on the machine, right? We have been attacking this by market as we get density of our machine conversions. That's one of the things that you know JMA alluded to. It's been going extremely well. We've done Dallas, we've done L.A., we've done some Florida. We're now moving to North Carolina and others. We're taking it market by market, but we also have a large digital campaign as well. You know, email marketing, influencers, the whole nine that are driving awareness in the market, and we're seeing results. For Bob, obviously, the DC of the future is pretty exciting with all the automation and robotics. What kind of opportunity is there in those areas with your legacy DCs, or is it just a build strategy and then consolidate from there? No, actually, we do look at all of our DCs as far as what opportunity we can bring to improve our efficiency. We talk about the DC of the future, but Jacksonville is an example. We use robotics in our Jacksonville DC. We have more automation there. We are automating in other facilities based on the need to serve the customer. It's not just a one big bang. The big bang is just because of the sheer volume that we do out of this marketplace. We look at all of our DCs for opportunities to improve our efficiency. Sam Darkatsh, Raymond James. By the way, thank you for all this. I know it's a lot of work that goes on behind the scenes. This is terrific. I think this question is for Brett. So, you mentioned some of the categories that you're not in yet at retail: electrical, plumbing, sealants, adhesives. There may have been a couple others. It's exciting. First off, what's the TAM of those? Are they included within the $6.5 billion, or are they incremental to that? Second part of that would be, we've heard about some of these categories for a while being opportunities. Does this imply that the ability to get into them organically is challenged, or which of them maybe in particular might make sense to go organically? Great question. I'll start, Sam, and then I'll let Brett add on to it. The electrical and plumbing, as you see it there, those are not included in the TAM that we have. Sam, those are ones that we think are still attractive categories for us. We've been talking about that since we went public. You know, we believe that those would be acquisition opportunities. Those would be ones where, as Brett talked about on that page, he framed up that some of this is category expansion organically, some of it could be inorganic. Those would be inorganic opportunities for us. To your point, that is consistent with our thesis. We've not changed our positioning there. We'll look for opportunities when they arise. You know, we look at deals, candidly, we looked at one not that long ago that could have gotten us into the plumbing side. It wasn't the right fit for us, so we, you know, we still maintain that discipline, looking through ROIC lens and making sure that we're doing deals that are right for Hillman. Sometimes the best deals are the ones you don't do. We've looked at several of those in the last couple of years, and we feel like when the right deal comes up, we'll go for it. I think that's really how you'd wanna think about those areas. We like. You know, when we did our market study, and we spent quite a bit of time and effort on really identifying what makes sense for Hillman, adhesives is something that came up higher on the radar. We think that as you think about everything fastening, we're very proud of our, you know, DNA in fastening, and what we do. It is at the core, and it's something that really connects the entire business, no pun intended. We think that fastening is the evolution of fasteners and building materials, you know. We are looking at opportunities in the adhesive area. That's something that we think is very interesting to us, especially as the advancements in construction and those materials move forward. We think we have to be looking at them. So, that would be, again, acquisition oriented. We have looked at some opportunities, and Chris and his team have explored some opportunities for us to do maybe some partnerships, but I think that would be acquisition, joint venture-ish if we went down that road. What are the sizes and the channels? That was general. I mean, they're sizable. As you know, some of the big players in this space, we think there's an opportunity, especially on the pro side of our business, where we can expand it, especially with the brand Power Pro, 'cause, you know, as you'll hear me talk a little bit later about it, Power Pro is a brand that started in fastening. We think it can extend beyond that. That would be an example of what we can do there. More to come on what that would look like in the future. I mean, not much to add. I mean, categories like plumbing and electrical, high SKU count, low line value, complex, difficult to manage. That's why it's attractive, but, you know, we're gonna enter in the categories that we can be number one, and that one's most likely gonna be a build. Right. Thanks. Yeah. Brian McNamara, Canaccord Genuity here. Thanks, guys, for doing this today. Really helpful. I guess, can you expound upon doubling your kinda contribution of new business wins from 2%-4%? What gives you confidence in that? I love the fact that there's not one housing-related slide in your deck today because it's something easy to kinda blame. It's great to see that. What gives you confidence on that? Maybe Brett Hillman can kinda speak on, like, some of the sales cycles of some of these new business ones that you expect. Yeah. I'll start it, and if you want, Brett, go through it because it. You know, that's one where, Brian, to that point, it's an excellent question, and you're welcome for us not putting the housing slides in there. I mean, we really feel about the resilience of this business. We use it sometimes as through bad times. We think our resilience in the positive areas. I mean, Brett's team has done a great job of going out there, winning new business, taking care of our customers. That's why we have confidence in moving that 2%-4%. A lot of that growth will be on the pro side, and we'll talk about that in more detail shortly. But Brett, why don't you give me some examples of some of the things you guys are doing on winning new business, even some of the BD things? Yeah. I mean, we've, you know, recently launched a business development team. Folks that are completely focused, dedicated on going out and driving our top initiatives and selling the most important things, working with our sales teams, our customers, and, you know, we need that 2% to obviously get to 4%. A lot of it's gonna be the Pro. You know, we do believe that we have opportunities to lean into even, you know, bigger ways and categories with our customers that are out there. This business development team, we have folks that are focused on new channels, getting into things like convenience and grocery and areas that we're just not in today. Then obviously partnering with our existing channel customers and, you know, looking at those category opportunities or when we launch new products and we displace a competitor. Having that business development team has been a great asset. Even to give them a little feel for National Sales Meeting and what you guys kinda got very revved up. Yeah. We had our traditional hardware national sales meeting in Denver, Colorado a few weeks ago, and this is when we had all 275 people that call in the hardware store channel in one room. We were able to not only share where we wanna go with the business but also what our plans are for 2026, what are those new products, what are the areas that we really want them to focus on and sell into the hardware store channel. We spent two days, we trained on them. We had business development there to help train them, things like Power Pro and how we really wanna go after the LBM yards that we've been calling on for 40 years and really expanding our moat in some of these other areas. It was a great two days. I think, Jay, maybe you would agree with that. The team was really fired up, and they look at this business development team as now a new resource that they have to break down walls, whether it be internally, candidly, or externally, so that they can go out there and do what they do best, which is sell. It was so powerful. I mean, Brett's being modest. I mean, it, that's what gives me confidence is that, seeing that team revved up and fired up, starting on Friday, going Friday, Saturday, Sunday, and talking about all the great stuff we're doing. I mean, it was really, really amazing. Brett and team did a great job. That's the example of what gives us confidence we're gonna go out there and crush it in 2026 and beyond. Squeeze a quick one in for Scott on RDS. I know you guys have had your techs in the stores servicing other kiosks. I'm just curious what learnings you've gotten there and anything to make of that, any opportunities there, good or bad? Yeah. Thanks. That's a great question. What we have learned is basically how good we are. I mean, I hate to be that, but it's true. We have learned, as I had mentioned, our exceptional uptime, our engineering, all the things that have gone on behind the scenes to make our fleet as reliable and as efficient as we can. We now have opportunities in front of us, because of our excellent servicing and what they've seen with our fleet. There's opportunities there for us to do more of that business. They're asking us, and I've quite frankly said, when we're ready, because we don't want to overdo it in that area. You know, our uptime is what matters. To the extent that we can service others, great, but, only when it makes most sense for us. We've learned a lot. We really have. Hey, guys. Jamie Simonson from Jefferies. Thanks for this great morning so far. I guess my first question is probably for Bob, on the dual faucet side of things. You know, how quickly are you able to sort of shift, you know, the supply chain from one country to another? And then on sort of, you know, looking at that decision, is it really just pure looking at the total landed cost and going with the cheaper one, or is there any, you know, other factors that would go into that decision? Well, definitely, you know, good question, but definitely the landed cost is where our focus is because that's how we provide a competitive advantage for the business. As far as how quickly we can shift, it's a matter of we make that change, and it's the next PO can go to the next vendor. You know, when you look at the scope of what we have set up in that, and I'll just give you an example. Last October, we had our vendor conference in Hồ Chí Minh City in Vietnam. We had over 200 suppliers in attendance at that conference from 11 different countries. Those are all suppliers that we do business with and have the ability to move spend back and forth with. It's very fast for us. It's simply a matter of we put it into our table, and the next PO that goes out goes to the vendor with the most competitive cost. Perfect. Maybe just switching gears slightly, to the RDS side. I'm curious, you know, obviously the automotive example, you know, that you gave is pretty clear in terms of the, you know, the high cost of going with the dealership. I guess over time, you know, as you guys grow penetration on that business, is there any risk that, you know, the dealerships might come down in price, or are you not really worried about that? I personally don't worry about that. I think, that's not a big piece of their business, and I think they take advantage of the consumer because of it, but that's, you know, that's my opinion. Yeah, I think we're where we need to be there, and I'm not worried at all about that. There's a big market for us to address, and we're going after it. Hi. You have Elizabeth Langan from Barclays. I had a question for Bob. Specifically, you touched on your ability to kind of move suppliers very quickly. Just in light of recent events, could you talk a little bit about where your rest of world exposure is, just generally as outside of China? Oh, let's see. Exposure, that's a tough question. I didn't bring my crystal ball with me again today, so I don't know what's coming tomorrow. You know, we are constantly monitoring what's going on with tariffs. We all know what the Supreme Court decision was. You know, that's still unsettled as far as how that's gonna work. We know that immediately Section 122 were imposed, which could go up another 5%. So far that's been globally, so it hadn't individually picked out any particular country. I think the thing that we'll be focused on most looking into the future is where the new Section 301 tariffs focus at. That's where they'll be able to pinpoint tariffs on any particular country, on any particular product, and that will lead us to shift based on where that guides us to. Thank you. We've got time for one more question, and then we'll go to break. All right. All right. Great. We'll wrap it up. We'll have about a 15-minute break. It's about 9:40 right now, so we'll be back here at 9:55. Thanks. Yeah. Test. Test. Test. All right. Thank you everyone. We're gonna get started with the next section. Everybody ready? I know I do. All right, we're gonna get started with Win the Pro. Thank you everybody for rejoining the presentation here today. We're excited to walk you through this section and really unpack what winning the pro means. Hopefully out of the, you know, the last section, you understood a bit more about owning the core, and you heard from, you know, Brett about how we're gonna continue to expand our business through category expansions. You heard from Bob and talked about, you know, operations. You heard from Scott, talked about our RDS business, and Aaron wrapped up the people portion, which is very important for us. It's one of our core values, our people first. I think when you bring all that together, the idea that you wanna take away from there is we have a solid core business, and we're ready to grow. That's how I wanna really start off where we are today. We've built this $1.6 billion company by taking care of our customers. You heard me say that. You're gonna hear me continue to say it. It's that important for us to make sure that that's the foundation. As we move into the pro markets, it's really important for us to understand a few things because when I talk about the pro internally, we get our teams excited. Brett shared about the national sales meeting where we talked about Power Pro for hours with our teams, and they rotated through. When you show them the power of the product, and no pun intended there, it's really important that they understand that they have that pro product that they can build off of. We've focused our pro businesses on pro products, but we've really done it from a retail lens in most cases. What you're gonna hear us talk about is the planned and the unplanned purchase. You think about the unplanned purchase. That is when somebody comes into a location, could be a retailer, could be an LBM yard, and they pick up something because they gotta finish up a job or a product. They're buying a pro product. That's this Power Pro screw that you all here in person see, but it's merchandised for a retail application. It's not for out the. Hear us talk about different terms, but that is important for us when you the pro and the opportunity, it's about having the right products and the infrastructure to deliver them. I want you to start with that foundation. I hope you felt that and saw that from our original presentation. As we move into it here, unlocking that pro and really building off of that foundation is very important. With our core secure, that's why we believe Hillman is ready to capitalize on this opportunity. What you're gonna hear over this section is from the leaders of the business about how we're gonna grow the pro opportunity. As we expand, it's let's start with where we play and where we'll grow. I already framed up the fact that we have a large, strong, solid retail business. We're not gonna waver there. We're gonna continue to build on that solid foundation. Part of that retail business is serving the pro. That is very important for us to understand. We're already in that market today, again, with the retail packages, the fasteners I just explained and shared with you is how we get there. As we move forward, it's really about the untapped opportunity that we're exploring and we'll exploit in the pro distribution side, and that's where we'll start to give you some insight as to how we're breaking down the market and the business. To this section, we'll really focus in on that retail pro distribution, and then industrial MRO about how we're gonna continue to take share. We have the products today. We have the infrastructure and the team to go drive it. Now it's about powering those resources and going after that growth. Enlarging our core markets is about how we actually take that center of the core, the $6.5 billion market that I shared earlier, and we expand it by looking at the categories where we can expand and grow outside into the pro. You take Builders Hardware. It's an example that Brett shared earlier. Pros are buying Builders Hardware today. They're not buying them from us because we focused on retail packaging. That's an opportunity for us to explore and give that Pro the product they need in the future. Pro distribution is. You're gonna hear us talk a little bit more about how going through Pro distribution, going purely to Pros the way they wanna be served is important and different. You all, we'll unpack and share with you exactly how we're gonna go after and do that. That $9.5 billion market as you expand away from the center is not a different market that we're not in today. We're already serving that Pro. We're gonna do it in a more meaningful way, and we'll explain to you how we're gonna do it. Then industrial MRO. While it's a smaller market share opportunity, it is a big piece of our business in an area where we believe they focus on fastening. As I shared during the Q&A, adhesives in some of those different areas, that's where we can actually bring all these pieces together and give our end users what they need through our partners, whether retail, pro distribution, or industrial MRO. With that, I'll move over to market framing. This is where I'll go a little bit deeper. There's a lot on this slide, I understand. The big, big takeaway here is you understand that there's the markets that we serve, retail, pro distribution, industrial MRO. It's the customers we're gonna support in those areas. They are gonna continue to service the end users. This is not about a new strategy of us going direct to customer. We are gonna continue to focus on the concept of a master distributor, which we already have that model in our industrial MRO, but that's really how we operate in our retail business as well. We wanna bring our customers all the products they need to serve their end users, and that's where I turn to the end users. You think about retail. We've got DIY customers. You know that. You understand that today. Many of us in this room are DIY customers of those channels buying our products. We also have the small, medium remodelers, the home builders that are on the small side. They're buying pro-oriented products in retail today. Many of those pros are also buying through pro distribution, but we're not getting them the products they need because we've not focused on those areas, and we're gonna explain to you how we're gonna do that. This is a shift in focus from a pro product perspective, but it's not a shift in focus in taking care of our customers and ultimately the end users that they serve. As we really break this down, you're gonna see some of the you know, retail partners that we serve there today, how they're going after the pro. You can see examples of pro distribution partners. There's some that we do business with today and some that we will do business with in the future. That's really what you wanna understand here today, is that we are gonna continue to take the products we have today and sell them, more of those products to the customers that we're already serving. Now back to the overall market share. As we connect these two pieces, so we have the markets that we frame, the three that we have: retail, pro distribution, industrial MRO, and then we have the share in each of those areas. The 20% share that we have in the core, again, pro products will help us continue to expand and grow there. Brett gave you numerous examples of how we're gonna grow. We gotta support the DIY or the pro because retail will continue to expand in those areas, and we believe we have a right to continue to grow there. The real exciting opportunity that we're gonna focus on in this section is gonna be pro distribution. We have a relatively small piece of the portfolio, and that's where we're gonna show you how we're gonna unpack that and break it down into the different pieces. That, to me, is what's most exciting about the opportunity that's in front of us. I'll turn here to what you're probably all asking is, "Okay, what does this business really look like that you say you're serving the pro?" You know we're a $1.6 billion company. About $1.1 billion is our DIY business, and over $400 million of it is in pro today, and that's made up of the three buckets. Our retail pro is over $215 million. We have our pro distribution piece, over $200 million that we have there, and then another $35 million industrial MRO. We're already servicing those customers today and ultimately those end users through that channel. What you should be excited about is this is not where Hillman's going to uncharted territories. We're there today, and we have. That's really what you're gonna hear us is we've been putting investments in in 2025 into 2026 to be able to go after these opportunities. You saw the team. I know I flashed it very quickly earlier in the presentation. Shortly, you're gonna hear from James Daly and Chris Martin. Both are now have pro responsibilities on our leadership team. Those roles did not exist a year ago. That is our commitment. It's not just those two individuals, the teams that they have that they're focused on in taking care of the pro, and that's why we know we're confident, and that's why we know we're gonna be successful in these areas, 'cause we're already starting to see the flywheel turn. We're already servicing these markets today. This is about us building on it. We're gonna go into greater detail about those pieces of how we actually do that in the splits in a moment. It's really about you taking away from this page is we are making and creating the products necessary to serve these channels. I'm really excited about what Chris and Tim and some of our product teams are gonna share with you, and some of you are on a demo taking the example, the Power Pro product we have today. We're designing and engineering those products in our facilities. We have great engineers up in Canada and in the U.S. here working together to innovate screws and fasteners. We're not just taking things off the shelf and show 'em, throw 'em into this channel. We're driving innovative products that we're selling through our channels today that we're gonna sell more of over in the future. This extension in where we are, I hope you can see not only the confidence, but the passion I have behind this, because this is an area that is not being served the way they need to be served today, and I know that the Hillman team can go capitalize on that. Moving forward, we'll turn into what do these buckets really look like. First, scaling with our retail partners. We said earlier how our retail partners are continuing to grow in Pro. Many of you cover them and spend time on them today. They are not only in their core four walls of the big retailers there today, but they're acquiring businesses in this space. They are asking for true partners to continue to move forward with them. That's what we're doing. We're supporting them today in their Pro initiatives, and we're gonna even support them more greatly in the future. James is gonna go really deep on this, so I'll just touch the surface. Specialty distribution. We don't talk about it publicly in great detail, but we have, for example, our ST Fastening Systems business down in Texas, where we design, develop, and manufacture innovative hardware products and fasteners for the metal roofing, metal siding industry. Chris will go really deep on what it takes to win there, but we're already in this space here today with great products, and we lead our categories in that area as well, and we'll build on it. I'll talk to you a little bit about LBM. This is not about us selling building materials into the LBM channel. This is about selling fasteners and our other hardware products to the LBM channel. We already do $100 million of business there today. Our men and women out in the field that we love, they go drive our business, are out there servicing the showroom. We don't spend the time on the yard in the planned purchase, and that's what's gonna change in the future. We're putting resources to go after it. That gives you a roadmap of where we're going, and now we'll go into more detail about how we're gonna capitalize on it. If I was you, I'd be asking, okay, you have the competencies to win in retail. Brett did a great job of framing this up earlier, but how does it translate to pro? We'll break this down in each of the sections, but what's really important here is the foundation we have as I started out this section, and what we've accomplished and what we put in place from our global sourcing and our operations team to our sales team, to our product teams, are out there servicing and developing the products and getting them to our customers. We're gonna build on that. We're gonna use those competencies like our product breadth, things like innovation, our ability to category manage and give them the product they need, drive sales, distribution, and operations. The idea is we're gonna cross that over, and we're gonna actually make it make sense inside of each of the channels 'cause they do operate differently. We're not gonna just take our retail playbook and think we're gonna go win with the pro. This is about tailoring the resources and making sure that we capitalize on the capability we have today. I wanna bring up the point here also is that we have businesses that have been serving the pro for decades. I mentioned Paulin up in Canada, over 100 years servicing the pro. We've been doing the same thing here in the Hillman business for over 60 years. That's where some of our first sales started, was in the LBM channels. This is not us about starting out in an area where we haven't been before. That's why we're excited about it 'cause we gained traction. Our customers in those channels are excited we wanna bring them more products and more services and more capability. As we move into the next chapter here, I wanted to really focus on Power Pro. Really passionate about this brand, and it is a brand that's been built over 20 years. Our teams has designed and innovative products. You all have samples here, those of you in the room, of Power Pro fasteners. They're industry's best. You're gonna see this in action on the product demo tours. It's not just one fastener or one idea. Our team's been really leaning into this category and developing innovative products that we can actually bring to the market to be able to give pros and DIYers alike what they need in a, the great performance. Just last month, we were at IBS, so the International Builders' Show. We're proud to show off Power Pro. It's the second time we've ever been there. This is something we leaned into. We got to interact with customers, with end users, and different people, show them the comprehensive scale and breadth of that category. It's not just one set of screws. We've got Structural Screws. As you, if you went through the demo, you could see all the different parts of a structure where our fasteners come into play. That's what's really exciting about this brand, that we've grown from what it started at 0 to $100 million, we've really only leaned into in the last three or four years. What I'm really excited, in the last year, we grew this at 9% because of the product marketing teams really driving this brand. We're gonna continue to power it with our focus on the Pro, and we have the positioning to do it. That's our overview of where we are and how, hopefully, you can take away from this section how we have the capability, the foundation, we're taking care of the customers today, and how we're gonna translate that and grow with the Pro in the different areas. With that, I'd like to welcome up to the stage James Daly, our SVP of Pro, and he's gonna walk you through the residential Pro and how he's gonna expand in those areas. Thank you. Thanks, Jamie. Good afternoon. Let's talk a little Pro. Okay. We've been talking about it all day a little bit here and there. We're gonna get into some more detail. Okay. We're pretty excited about the Pro, as you can hear from Jon Michael Adinolfi and the team. Chris Martin will get up and talk a little bit about specialty, and then we'll do some Q&A. We'll start with James Daly, Senior Vice President of Pro. I bring extensive experience in the fastening and hardware industry channels. Seven years with ABC Supply, six years with Home Depot, a couple years with Mohawk Industries. I joined Hillman in 2021. Best decision I ever made. Fantastic. I've been here since 2021. I've managed several areas of the business development, sales, product category, all focused on driving sales, expanding margins. Throughout my career, I've had an interest in the pro, either through the retail channel or through distribution. I've always had to take retail programs and then tailor them to the pro, so it's a dual sourcing or a dual sales channel. The Pro has been part of what we do since the beginning, and now we're really leaning in, and we're gonna really focus on that Pro, and I am excited to leverage all that experience to lead us into the Pro channel. Let's begin. Let's take a look at the Pro landscape with our retail partners. Today, we already do $215 million in Hillman retail Pro revenue, serving Pro customers through our retail partners. We support in-store unplanned Pro purchases through our Pro product assortments on retail shelves, capturing that ever-important last mile purchase. That is an important part for the Pro because they cannot finish the job unless we are there in stock, on shelf, with the Pro materials they need to finish that job. Okay? This service has made our retail Pro business very strong and very respected. We own the shelf. We're there to support our pro partners as they need that last mile run. Now we will take those learnings and those capabilities and start to expand them. The opportunity at retail continues to grow. Our customers are adding dedicated pro divisions to better serve medium to large-sized pros, fulfilling purchases through flatbed and bulk distribution centers. Increasingly, they're also delivering direct to the job site, okay, completing that circle. This creates significant opportunity for Hillman to expand our share of wallet, support our retail partners, and grow rapidly into the expanding pro market. Okay. Hillman is a trusted partner to the largest retailers in home improvement. With more than 60 years of leadership in fastening and hardware categories. We built this business by supporting retail channel and partnering closely with our customers. Now, we are extending those capabilities into the residential pro channel, continuing to support our valued partners while unlocking new sales potential for Hillman. The unlock here is what's key, okay, 'cause we have the last mile. Now we're unlocking new opportunities and new ways to get at that existing pro customer. We have won 17 Vendor of the Year awards from our retail partners over the last several years. Our track record, we aim to continue as we expand into pro. Our dedicated residential pro sales team works daily to drive results for Hillman and our customers. With strong positioning across primary categories at key retailers, this extension is a natural evolution for us to continue to grow this company, okay. This is not that different than what we do today. We're just expanding these capabilities, okay. Our retail partners trust Hillman to expand pro with them because of our product depth, sourcing capabilities, credibility, and our service mindset. We see four main advantages that position us to win in the pro market. First, and most importantly, product is always king. You have to have the products. We already have nearly all the products contractors need. Historically, these were packaged for retail shelves, as Jon Michael mentioned. Now we are reconfiguring pack sizes and piece counts with our engineering and sourcing teams to align with how pro customers buy at competitive price points. We also bring brands. For example, Power Pro has been in the market for over 20 years. Contractors know and trust it. It started in the pro space, okay. We already have a full line of professional-grade products from trim screws to structural screws in our portfolio for the professional customers. We will continue to expand that product category and that brand. Okay, second, sourcing. As Bob Davis shared earlier, we bring in thousands of containers annually, moving freight at competitive rates, and negotiating directly with our factories. Our sourcing offices across Southeast Asia, combined with some of the most experienced teams in the industry, provide scale and cost advantages. As Bob mentioned, he'll be in Asia next month, hand-to-hand combat, making sure we're getting them both the best prices, the best qualities with some of the best factories that are out there. Our dual faucet strategy allows us to react quickly to changing market conditions, ensuring product flows through our distribution centers that pro customers get what they need when they need it. There's no option to not be in stock when a pro customer needs an item. Okay, we are the job completers. We are the hardware department, so we will be there for them. Once product lands, we move them efficiently through our national network of 24 DCs, shipping directly to our customers, flatbed, and their bulk DCs. Okay. Ensuring consistent supply, competitive pricing, and job lot quantities that pros require. Third, most near and dear to my heart, is our sales team. Our sales team for the Pro averages more than 20 years of industry experience. Retail Pro, residential Pro, construction experience over 20 years. They call directly on Pro merchants and field selling teams. In-market teams are selling to the end users, okay. We are supporting the folks that are selling to those end users. Think about everything we're covering here. They have a big basket of stuff that they could do and leverage to go sell to those customers. We are also supported by over 4,000 employees, more than 1,000 in service, logistics, and operations, ensuring that when the Pro calls and picks up the phone, somebody at Hillman is here to answer the phone, okay. If they can't get a hold of somebody, they can call me directly. Our pro sales team adapts quickly to customer needs and resolves issues as they arrive by combining deep product knowledge with a world-class operations model, and they deliver a seamless solution-based approach that supports all of our pro customers' needs. Finally, our financial strength. Hillman's strong balance sheet positions us to scale effectively as we grow in the pro channel, providing the resources to capture opportunities and drive incremental growth. The opportunity here is clear. We have the products, operational infrastructure, and the trusted brands that pros know. Backed by an experienced sales team and well-positioned, we are well-positioned to capture the market and accelerate our growth in this space. One example of how we're entering the pro market is with a complete bulk product offering. This approach simplifies procurement for pro distribution and increases fastener attach rate. As a reminder, attach rate is how often a customer buys a secondary item with a primary item. Think drywall screws and drywall. It's a very important part of our business. Our bulk products are configured to pro expectations and volumes, okay, those volumes that support wholesale pricing. A simple brown box with a practical piece count can drive attach rates upward, driving more revenue and value for us and our customers and our distributors. Currently, the average pro attach rate is a fraction of what it is in store. By ensuring fasteners become a well-adapted planned purchase, we can grow sales, gain market share from local suppliers, and unlock long-term stable growth. You know, as I conclude my section, several key points stand out to me. First, our large retail customers have already moved, and they will continue to move into this pro space. We are uniquely positioned to support them. Second, we have the products that pros want, the supply chain to support the business, and a dedicated pro sales team ready to drive incremental sales for both Hillman and our customers. Third, significant growth opportunities already exist within the channel, such as bulk offering, which can increase attach rates in pro and pro distribution. Overall, Hillman is well-positioned to capture pro market share and drive meaningful growth. We are locked in, and we are ready to go. Thank you very much for your time today. I'll hand it over to Chris Martin to talk about specialty pro distribution. Thanks, James. I'm Chris Martin. I lead Hillman Specialty Distribution and Industrial MRO Business. Before I joined Hillman, I spent time at HD Supply, Beacon Roofing Supply, Stanley Black & Decker, and Keurig Dr Pepper. I was primarily focused on supply chain distribution, acquisition integration, and professional contractor markets. Our team at Hillman serves professional contractors, specialty distributors, and industrial customers with fastening and supply solutions used in various applications. An example of this is our ST fastening business, which Jon Michael mentioned earlier. It's a $100 million specialty fastener platform, and it supports demanding applications like metal roofing and other building systems. What's important to understand is that in the professional fastener market, there's two different product needs. First, are high volume construction fasteners. These are products used in large quantities for applications like drywall, framing, and the building envelope. Second are specialized fasteners that are engineered for specific materials, coatings, environments, or performance requirements like metal roofing screws. Hillman's advantage is that our platform supports both. For construction fasteners, customers value availability, price, and sourcing scale. For specialty fasteners, customers value engineering expertise, product breadth, and application knowledge. What connects both segments is Hillman's ability to manage tens of thousands of SKUs, source globally at scale, and deliver reliably through our distribution network. Those are the same core capabilities that made Hillman the category leader in retail, and they translate directly into the professional market. As we expand further into professional distribution, the dynamic becomes even more important. Distributors who are serving contractors, they need a partner who's gonna reliably supply both those high-volume construction fasteners and a wide range of specialized products. For construction fasteners, priority is simple. It's availability and cost competitiveness. Contractors can't afford any job site delays, so distributors need confidence that those core products are always gonna be available. Hillman's global sourcing scale and logistics network are gonna allow us to deliver that availability consistently. At the same time, contractors require thousands of specialized fasteners designed for specific materials, environments, and installation requirements. Managing that breadth of SKUs can be extremely difficult for distributors to handle internally. This is where Hillman becomes such an important partner. We bring global sourcing scale, extensive product breadth, reliable distribution infrastructure, and trusted contractor brands. These capabilities allow Hillman to support both bulk volume construction fasteners and of course, the highly specialized long-tail products within that same platform. Importantly, many of our large retail partners have invested in or acquired professional distribution businesses that are serving contractors directly. This creates a natural opportunity for Hillman to grow alongside them as they expand their business further into the Pro channel. The strategy James described earlier around expanding with pro customers translates quite naturally into these distribution channels. The bottom line is we're not building a new operating model. We're just extending the capabilities that Hillman's been developing for decades. I wanna demonstrate this with a real example from our ST fastening business. In a market like metal roofing, the fastener is a critical component of the whole building system. For a given job, a contractor is gonna need thousands of color-matched fasteners for a single installation. The fastener has to provide structural strength, maintain a watertight seal, withstand decades of environmental exposure, and match the aesthetic color of the roofing panel itself. If the contractor runs short of that correct fastener during installation, the project just stops. Their crews are idle, their schedules slip, and the cost of downtime quickly exceeds the cost of the fasteners themselves. In these markets, availability and reliability are, in essence, the product. The person who has the product is the one who gets the order. Through our ST Fastening Systems operation in Tyler, Texas, Hillman finishes these fasteners that are designed specifically for this application. We support thousands of specialized SKUs, we can color-match virtually any roofing panel, and we deliver these fasteners in job-specific quantities aligned to the contractor installation requirements, typically in less than a few days. Today, this specialty fastener platform is a $100 million business for us, and it continues to grow as the adoption of metal roofing and other specialty building systems expand. More importantly, this illustrates the broader point. When Hillman combines its product engineering, global sourcing, manufacturing capabilities, and reliable distribution, we can serve these highly specialized markets that many competitors simply can't. These types of product-led specialty solutions represent a meaningful and growing component of Hillman's pro strategy. Importantly, the capabilities that allow us to win in these specialized applications are the same capabilities that allow Hillman to expand more broadly in the pro market. Our ability to manage a complex assortment, source globally at scale, and deliver with extremely high service levels creates a platform that's very, very difficult to replicate. We believe that platform positions Hillman extremely well to capture additional share with our contractors and professional customers over time. With that, I'm gonna turn it over to Jon Michael to discuss our lumber and building materials pro strategy and how we plan to leverage these capabilities across that channel. Thanks, Chris. All right, now we'll turn into the LBM business. We're excited about this area because it's one we play there today. I think hopefully you've taken away from a couple of these different areas. I shared with you the Power Pro example about the great brand that we have. I think it's really important to understand that we have a solid foundation and base here. What I'm gonna share with you over the next handful of slides is a couple of key takeaways. One is that we're in this channel, but even more importantly, we're in a portion of the channel. I'll explain that in more detail. We focus on the showroom today, and we believe we have an opportunity to expand to the yard. I think that's what's exciting. What we heard from James and Chris is we have unique capabilities in each part of this business that give us permission to play, and that we also gives us permission to win, and that's why we're winning in these categories. The, you know, the retail pro and the res, you know, the resi pro piece of it, the opportunity we have there, that natural extension, those ideas and capabilities, plus what Chris outlined, really give us the ability to win in all of these channels. As we break it down and we think through where we're going, I, you know, I'm gonna walk you through what a location could look like. Now, many of these locations in the LBM channel look different. This is obviously just an illustration to give you an idea. The takeaway from this is focus on there's the front or the showroom. That's where anyone can walk in. Typically, you have a pro who comes in. They may be working on a takeoff or a design for a remodeling project or a build, but when they walk in, they see actually some retail merchandising. Could be all different types depending on the outlet. It's gonna vary. In many of those installations, the $100 million business we have today, it could be 4, 6, 8, 12 feet of merchandised product that we have in there. Our people, we leverage the category management, the products we have to optimize that space to be able to capture that unplanned purchase. I wanna make that point clear. That unplanned purchase is where we actually win today. We're gonna continue to win. That's part of our model. That's what extends. I think that's an important point for you to take away. The exciting thing is, as you can see here, not only depicted in size and scale, but a lot of the activity from some of these lumber building material locations is activity out from the yard. It is that planned purchase where somebody's putting together a job. The value that those locations create and the value that they deliver for their customers is they can package the job and give them the building materials, the fasteners and everything to go extend the project and complete it. What we're doing on in the front is we make sure that those pro packs, that merchandise solution that I shared earlier, we outfit in the front. Brett's team and the traditional, you know, folks that service those locations, they do a great job taking care of that showroom, making sure that that product's showable. We have some of our people with their own focus have said, "Hey, we're gonna go win some of those opportunities in the yard and get some of that planned purchase." That's not an area that we focus because we've typically focused on the actual showroom itself. When you think through what does it take to take care of the yard and to actually deliver the products necessary for that pro? I thought it was important to think about all the things that we do on the left here in the showroom. Think about product, innovation, category management, the things that we do well at Hillman that we invest in each and every day, they translate to the showroom. That's probably not a surprise for anybody in the audience or listening in. That's what we do today. They do correlate, and I think they connect to what we're doing in the yard and the loading area. To be able to operate there, you gotta make sure you have job lot quantities. We've touched on that numerous times through the presentation. Some of that is different pack size, some of it's different packaging. We have that capability. We introduce thousands of SKUs each year. This is about how we run the business. Some of you may ask, "Is that a heavy lift for Hillman?" This is what we do each and every day. By focusing on it, by having James' team, our LBM team focused on those areas, we're now gonna work with the product teams to be able to add those job lot quantities, make sure we have building code compliant products, making sure we have the application specifics. Part of the reason Chris walked up here, what did he talk about? Having the fasteners for the application of attaching that metal roof. That is about having the pro quantities for the projects that these LBM yards perform. It's also about having LBM specialists. We've been adding some resources, brought somebody in to actually focus on LBM, and that's something that team is building some momentum. We'll be adding those resources as we scale this area. The just-in-time delivery, I think, and I hope you see that we're not only do we have a world-class operations team, Bob and his team are upgrading that and making sure we have the capabilities for not only today but also tomorrow. That high quality competitive cost. We all know to be able to win in the channel, you got to give them the quality they want at the cost that's competitive, and we can do that. We're doing it today, and that's where we really see the opportunity. To me, this page really summarizes and really encapsulates why we're gonna win in this section, in this area. Then there are some of the examples of some of the partners that we're gonna go out there. We sell some of these folks today. This is not, again, all new call cycles. This is about bringing, extending the products we have today into those channels and building on it. That's why we're really excited about where we're going because it is really thinking about the convenience buys in the showroom, unplanned purchase. It is the opportunity for the orders and the volume from the yard, that planned purchase. It's about changing the mindset and empowering our people to go after those different opportunities. It is gonna take some time. That's why this is gonna be a build for us. We're already doing it today in some locations where we have some, I'll say, really aggressive and capable salespeople. We're already doing it, where we serve them and bring them what they need. We've got to be able to make sure that we add those products, expand the quantities and the pack sizes, and empower that team to go forward. That's why we know we can be successful in this area. What gives me the high confidence that we're gonna go take share here, that $9.5 billion market, and those over 3,000 locations that we're already calling on today. This is about focus and making sure you don't let your core slip. That's very important to us. That'll be one of my points when we close, and then capitalize on this opportunity in this market. That's a little bit about where we're going and why we're excited. We think about LBM coming together, the simple message is we have the capabilities. We have the people in the stores today. We're gonna add the resources necessary and the pack sizes, and we're gonna go focus on this business and do what we do. We take care of the customer. This is another example where we're gonna be able to do just that. With that, I wanna take it and get ready here to bring Michael up here. He's gonna talk to you a little bit about our M&A opportunities and how we're gonna continue to augment this growth strategy. With that, I'll introduce Michael Koehler, our VP of Investor Relations and M&A. Here we go. Thanks, JMA. As you know, I'm Michael Koehler and run Investor Relations, Treasury, and I also co-lead the M&A team. I spent the last 15 years doing investor relations and capital markets consulting, having worked with over 35 public companies. I sit at a busy street corner and have my fingers close to the pulse of what's happening in the markets. Today, I'll walk through our M&A strategy, how it acts as a powerful accelerator for our growth, and why it's an important part of our long-term strategy to expand the core and win the pro. Our M&A expertise is rooted in over six decades of execution. Throughout our history, Hillman has built value by compounding accretive growth, both organically and via acquisition. The focus has always been prioritizing returns over purely buying growth at any cost. We've expanded categories and acquired capabilities at disciplined multiples, ensuring near-term accretion with a long-term strategic fit. Our M&A track record is built on around 30 successfully integrated transactions. We provide the scale and the platform that can turn a small or specialty business into a category leader. In many cases, we are the buyer of choice because we're a strategic buyer that has the market access, customer relationships, a 1,200-member field sales team, and supply chain leverage. Our history of successful integration gives us the confidence to expand across channels that we have discussed today. We categorize our targets into three different areas, expand categories, pro distribution, and industrial MRO, like you've heard today. We prioritize targets that are a logical fit for Hillman, ones that our sales team can grow, ones where our category management can add value, ones where our global supply chain can lower costs and targets that are a good cultural fit, those that align with Hillman's core values. In retail, the objectives are driving sales and category management. We want to expand the core by acquiring fastener-related categories or categories in adjacent aisles. As Brett mentioned earlier, near neighbor categories like plumbing, electrical, and even protection and safety gear are high on our radar. In Pro distribution, we target distributors with strong customer relationships, where we can leverage our global sourcing network and national distribution capabilities. Today, we're underrepresented in the Pro, and there's a lot of white space for us to grow, as you've heard. Examples of Pro distribution product categories include collated fasteners and adhesives, where we have minimal to no presence today. You've heard the team today talk about how we can grow organically with our customers in Pro distribution and LBM. M&A can help win that Pro by acquiring into the specialty Pro distribution space, which has many unique product niches that make M&A particularly attractive. Industrial MRO, the focus here is centered on the master distributor model. Our value proposition is built on scale and long-tail SKU complexity, something Hillman has done very well for a long time. Gaining meaningful traction in industrial will be M&A-driven. Across the vast number of end markets in the industrial space, we're looking for master distributors with long-tail complexity and high-spec SKU requirements. Here, we can achieve synergies with our enhanced scale and dependable global sourcing network. As I mentioned, in addition to hardware and fastening, we are currently seeking opportunities to acquire new adjacent categories like adhesives, door hardware, and plumbing. We believe these categories make a lot of sense for us from a strategic and product offering standpoint. We can add tremendous value and synergies, applying our core competencies to distributors and/or suppliers in this space. More broadly, our primary focus remains on a number of high-margin key product categories. We maintain a robust pipeline representing healthy growth opportunities. Today, our pipeline consists of several candidates within our typical deal range. Well, what does that mean? Well, in 2024, we paid in the mid-$30 million range for both Koch and Intex, and we have the ability to flex up several times over that for the right deal if necessary. Staying in this range allows us to avoid bidding wars over larger assets, maintain attractive EBITDA multiples, and keep our leverage in check. We've got the financial guardrails in place, and we've proven to be patient for the right deals. Taking a bit of a step back, our M&A strategy exists within a balanced capital allocation plan that you will hear Rocky talk more about in a few minutes. We're able to invest in the business to capture organic growth, both in retail and in the pro. We can buy back stock under our share repurchase program and execute our M&A strategy. We can do all three at the same time. While our growth is not dependent on M&A, it is a key part of our strategy to grow share within our expanded $18 billion target market. We're confident this will accelerate our earnings growth and deliver high-quality returns for our shareholders. Let me give you an example. We acquired Koch Rope and Chain in January of 2024, and it's a great one that showcases our M&A capabilities. We identified this company and patiently waited for over three years for this deal to come to us at the right multiple. Rope and Chain are heavy, complex products, so this category was perfect. It's perfect adjacency to our existing hardware categories and at the time, our recently launched Rope and Chain accessory line. Upon the closing, we got to work to integrate Koch, and the results were transformative. Within a short period, we leveraged the combined strength of Hillman and Koch into a new win, resulting in 20% top-line growth for Koch via a nationwide rollout at just one major retailer. We are confident that there are more wins to come in this category. With our foundation in Rope and Chain established, we now have the ability to drive additional benefits in this space from an M&A standpoint. Today, we source 100% of products sold in this category from overseas. Currently, there are additional M&A targets in this vertical that can allow us to expand into the industrial MRO channel and in-source production, which can give us supply chain flexibility as well as potentially capture additional margin in this category. Koch's been a great acquisition for us, and we believe we can replicate that model going forward. The playbook is simple. Identify a category that we want to expand in, successfully acquire an attractive player in the space, and leverage Hillman's core competencies to drive profitable top and bottom line growth. This concludes the M&A session, and we'll now open it up for Q&A. We'll have Rodney run the mic, and we'll ask the speakers to come up. As a reminder, please remember to state your name and firm when you ask a question. One question, one follow-up. Andrew Carter, Stifel. Question on the kinda Pro going into this. Do you believe that you can accomplish kinda the ambitions you've laid out here with the current capabilities in hand, or do you need to take another step change in the sales force? Obviously, M&A out there would give you a thing, but just anything incremental to that, like, to kinda contextualize resources in hand versus incremental investments you might need to turbocharge this. Thanks. I'll start. Andrew, thank you for the question. You know, we believe we've got the, I'll say, investments in place for us to build the, I'll say, long-term objectives that we framed there. Rocky will go into more details about how we're breaking down the pieces. Andrew, that was part of why putting James in the role and hiring his team up at the end of 2025 to be able to get that framework on the retail pro. You know, Chris' team has already got, you know, a team in place. I think LBM is an area where we've got resources in place, in Brett's team. We feel like we have the the feet on the street to be able to drive that incremental growth, and we'll throttle those investments, and add to it. We hope to, as we gain more traction there. Andrew, we think we have it baked in. This is not about us coming out and changing our financial, you know, I'll say, objective because of these initiatives. We feel like we are absorbing them, and that's what we're driving inside of our guide today. I don't know if anything you guys wanna add. Yeah, I mean, I think the only thing I would add is the team that we're bringing on is very experienced, deep relationships, and they are hitting the ground running. You know, as JMA mentioned, in 2025, we were hired, and they are in market, in field today with customers trying to drive sales. Really proud of the team we assembled. It's a good experienced team. Reuben Garner with Benchmark. Thanks for taking the question. Just a follow-up on that. How does it work, the $100 million in LBM business you have today? Is that entirely through a dedicated sales force? You mentioned hiring LBM specialists, like, long term, is this a distinct, separate sales process from the retail customer? You know, we have actually our field sales team that actually is out in the field that runs in one organization. They actually call on, you know, different hardware stores and lumber yards today. Reuben, those are the folks that are actually calling on them today. The LBM specialists that we're putting on Brett's team, we brought in, you know, two professionals that are fully dedicated to LBM. We haven't done that before. They're the leadership, and now we're evaluating the strategy to go infill the resources necessary to go after, you know, the yard opportunity that we framed up. That'll be an evolution of where we're going and how we see it going as we move forward here. Lee Jagoda, CJS. Going back, I guess, way back to Slide 61, I guess, there was a whole bunch of logos around potential pro opportunities, and there was five of them where they're owned by your current customer base. How much of the growth that we're projecting through 2030 is gonna come from growth within the existing channel where the customers are saying to you, "If you had more different form factor, different ways that we can buy this, we wanna do more with you," versus you having to go out and displace somebody less willingly? It's a great question. 2025 is all about or 2026 is all about laying the foundation with the folks that we talked about in my presentation, okay? As we build with those customers, we build those capabilities, we expand into the folks that are in the box here. As you know, you know, these folks were acquired by these large retail pros. It is certainly on our roadmap. We're very excited about it. We're gonna build this stable foundation and then build upon that with expansion. When I talk about unlocking sales potential, this screen certainly would represent that. Does that answer your question? Yeah. I guess, is there a way to quantify some of that? Like, in the framework of if it's 1 or 2 points a year of Pro growth on average from now through 2030. Yeah How much of that growth comes from existing relationships versus going out and beating the street where you're not? Sure. I mean, I would think at least a point, a point and a half would come from existing relationships and then potentially another half a point, you know, from these folks as we expand. The key here is the capability, the product. That sales team has all the current capabilities that we have. We don't need to add incremental to do that. It's just as we pace ourselves here. Lee, it's gonna be a mix. I mean, it's a great question. I mean, I think it's gonna be. We already got some great trajectory and momentum with some of these Pro customers today. Then getting into that channel, we wanna make sure we have the service model that they need. You know, that's why we think we have the capabilities to do it. It's gonna be an evolution, and we'll certainly update you on that journey. Great. Oh. Sam Darkatsh, Raymond James. Don't know how to ask this question, but what are the current service gaps that the pro customers are seeing in their planned categories? I think, you know, steel and wire products, PrimeSource, they are getting serviced right now. Where are the service gaps that you feel you're really being differentiated? I'm gonna give you a small example to give you an idea. We had and I won't go into the name of the customer, but we were on a West Coast walk a month ago with. You know, Brett and I were out there. We went to one of our customers, great retail partner that we have today that's in there supplying the Pro. They're selling product out the back, and we have one of our top sales people in that store. Great guy, great walk. We asked him about some of the products we sell at the back, and he's like, "I didn't even know that you guys can do bulk packaging and quantity." That's the kind of opportunity we have out there, Sam. He's buying today from a local supplier, and he's like, "I'll let you guys quote the entire mix." To me, I think, Sam, it's about going out there and unlocking where there's either opportunity because they don't know that we have the capability, or there's an unmet need. You're right, we have viable competitors in the space. This isn't gonna be where people are gonna be knocking down our door saying, "Take my orders." To me, awareness is huge. I'll give you another example. We were at a show with a large partner not that long ago, in the last couple of weeks. Totally different individual. They didn't know that we did what we did in B2B, and that person came out and said, "Hey, we'd like you to quote our entire mix," and showed us pictures of the warehouse that they stock all their pro-grade product. They didn't even know we did bulk quantity. I'm not saying it's gonna be easy, Sam, but a lot of it's awareness. We never focused on those areas before. That's not what we put in our retail catalog, so our salespeople aren't even aware of some of the capabilities we have. It's gonna be building awareness and putting programs into place, and that's what James, Brett, and their teams are doing today. I've got a follow-up. Sure. Thank you. Are you currently servicing the unplanned category with your existing retail sales team? If so, I'm guessing the new team or the nascent but new team will maybe do both unplanned and planned, which might either free up that retail space or maybe allow for a little more leverage. Yeah, very good question. Brett's organization today, which he has all just to break this down, we have our retail sales organization. Brett's got several different teams that he focuses on. His traditional team, which was the national sales team we just mentioned, those folks are calling on LBM locations, hardware stores, and the like across the nation. We believe that it'll be adding more resources within that pool and then augmenting them with LBM specialists. We're not really prepared to walk through the detailed strategy of what that's gonna be because we got competitors listening to this, but that is how we're thinking about framing this up, Sam, is it's gonna be leveraging our core resources and then adding resources where we think there's growth opportunities. Hopefully that answers enough of your question to get a sense of where we're going. Kind of following up a little bit there. Can you help me on the LBM side? How does the pro purchase, particularly on the fasteners in the, you know, right now at an LBM, are they currently getting that product in the back at an LBM? Are they getting it somewhere else? Or how does it generally work today for that pro? Yeah. I mean, in many of the markets, the yard is supplied by, if you will, what the needs are and the demands are in the marketplace. That pro today that's buying those bulk quantities, contractor, you know, lot sizes, they're actually specifying, "Hey, here's my build." They're working with that professional in that location who's saying, "Hey, you need XYZ quantity of type whatever fastener." There is a spec component to it, meaning there's a specific need of a size fastener for that application, and that's driven by what's going on in that market. Each market's different. That's why we have people in each market. Today, that is being driven by the contractor's needs. Some of that's driven by the lumber yard and what they're specifying. Some of it can be driven by the designs and the plans, and that's part of what our teams are out there working on, is giving them availability. If they've got a they need an inch and a quarter drywall screw, as an example, that we have that product in the quantity that they want to purchase it. So, we're working with them, and we'll be working with them to supply them in the quantities they purchase. That is part of the curve. That's why this isn't gonna be overnight. If you win $50 million of business, we'll build this over time by meeting the needs of that customer. Similar to what Sam asked is, this is about making it aware that we have the products and the capability, and then be able to fulfill their needs and what they're actually delivering for the pro. Just a quick follow-up. That's helpful. Thank you. You're welcome. How about the gross margin for that type of business for a planned bulk purchase at, like, an LBM or something? I'm assuming that industry generally has a lower gross margin than your normal business. Is that directionally the right way to think about it? Directionally, I'd ask you to save some time here for Rocky. He'll walk you through a way to think about that. I'll save that for the financial section. It's up next. Good question. Hi. Anu Khan with Baird here. Kind of following up on the previous question. As you are leaning into these, you know, specified structural applications in the pro, kind of how should we think about the changes in terms of, like, the sales approach, required expertise, the risk, liability profile of the business, maybe some of the hurdles you foresee and maybe the competitive landscape as well? Just any additional commentary. Yeah, I mean, I'll give you a couple of nuggets. I think I'm gonna go back to the sales meeting we talked about earlier. I think actually, you know, educating on how to sell into that channel is a really important element. That's why we have two people specialized in it today, and we'll continue to add resource. I think the sales cycle's a little bit different. The way that we actually sell is different. And then we are spending a lot more time with you know, Chris Paterson, who's here, and his team as far as building, going after application-specific products. It's a lot of what we displayed at IBS show, and we've gotten great feedback and by having Structural Screws for a needed application. We've had to build out that product range. That's what we've been working on. I think that's part of the product equation. We're working on the sales equation, which I shared, you know, that we drove at the national sales meeting. Those would be areas that we have to be able to be successful in. We're putting feet on the street now, so we'll update you on that progress as we go forward. Sales, product, I'm very comfortable with where we are from a delivery perspective. We have a world-class operations team, so I feel like that's in check and aligned. I think this is gonna be about building the capability and adding the resources that are focused on that type of sale 'cause it is different than what we do today. When you're selling to the showroom is a different sales cycle and a different process than the yard, and we're gonna have to build some momentum there. What, again, gives me confidence in this is we have some really talented territory managers on the field that are doing this today that sell pallets of our product out the back because they have a relationship. We're gonna now empower that team and really open up the opportunity, and that's why we're excited and confident it's gonna work. Just a real quick question on the TAM is big in the pro distribution side. Your share is really small. Can you talk a little bit more about the competitive set out there. Is this a super fragmented market? Are there big players that you're competing against? When you compete, do you think is your advantage that you've got this wonderful product that's been created on the retail side with a great brand, and therefore you have a better brand opportunity? Is it a pricing advantage that you might have? Maybe just talk a little bit about that. Yeah. You gave me a lot of good nuggets there, so I'll try and hit those the way I think about it. It is a very fragmented market, and there are some very capable competitors. I mean, PrimeSource's name has already been brought up. We respect those guys. They have a good business model. There are a lot of regions as we go out there, where there are small regional players that are driving and delivering bulk contractor grade quality fasteners. That is an area for us, and then it's where we have partnerships where we have already the fastener set in the front of the store. That's part of the extension in Nashville, and I. That was not a made-up story. I'm not gonna go into the name. I was blown away. Brett and I were blown away. This is one of our best, I guess, Brett, you'd call it hardware locations. We go to the store. It's amazing. We just got into the conversation of Pro, and he's like, "I didn't even know you guys had the quantities." This guy went to lunch with us, meaning this wasn't like he'd never seen us before. He loves our sales guy there. I'm not saying that's every location in America or, you know, North America, but that to me gives me the confidence that there's connectivity. When you take care of the customer, they're willing to give you other opportunities. That's fragmented, yes, and opportunities that we need to lean into. Now, let's not underestimate the fact that you gotta have the pack sizes, you gotta have the demand, you gotta be able to bring it in. I'm really confident the guy sitting in the back of the room and his team that are out there, we have a world-class sourcing organization and great manufacturing partners that we're able to build and line that up. It's gonna take some time. That's why we're not coming out here and saying, "Hey, there's an incremental 10% growth in this category." I really think it's about making sure we have the right product, making sure that we have the right sales strategy, and then putting the right resources to it. You gotta give us a little bit of time to get the traction, but there's opportunity there. That's. Hopefully, that gives you a little bit more. I know that was somewhat redundant to the last question, but that's really how we think about it, and that's why we believe it works. When you can get the sales team fired up, and you give them something to go sell, and then you give them the training so they have the confidence, is super important. For me, I believe in this story and this vision. That's why I can get up here in front and talk about it. It's the same idea that's in front of a customer. You go out there and you give them the product, and they have the company behind them to back it up, they can go out there and execute. That's what's really exciting about it. That's why we love our sales force and what they do. We gotta go give them the ammunition to fire the gun. Just on, I guess, on the back of that question. On the large format stuff, is the market today rational in general? How big a differentiator is a quality brand in large format versus pack size in the front of the store, both to your buyer and then to their customer? Yeah, a couple of things there. You know, will we expand our category into some of the more bulk or, you know, bulk products that, you know, may be more price sensitive? We are gonna evaluate that over time. Michael mentioned collated, James has talked about collated before. We're gonna evaluate that. This is not about trying to be everything to everybody. We're not gonna go out there and say, "Hey, our business is growing 12 penny nails out there in the marketplace." That's a commodity type item. Where you see the difference is we've seen the evolution, and I'm gonna geek out for a second, but fasteners, you go from lag bolts, which is a big part of our business today, to construction fasteners by driving innovation. Lag bolts have declined over time because people are using structural screws to complete their applications. By us focusing our product development there, that's where we think we can win, and that's where the Pro brand that you reference, where it means something. It's exciting to see when you can give people a good Power Pro product, and I'm shamelessly plugging that again because when you get it in people's hand and they see the use case of it, they go drive it. That's what that brand really grew out of, you know, 10+ years ago when we launched Power Pro ONE because it was a great fastener, multipurpose pro-grade fastener that everybody can use. Once you got it in their hands, people started, "Hey, I need Power Pro." That's what they thought of. It's gonna take time. This is a, you know, evolution, not a revolution, but that's I think where there's a space for branded product line, and I think there's an opportunity for us to grow, and there's a massive market for us to go take share. Thanks, everyone. That will conclude our Q&A session for Wynn, the Pro and M&A. We'll take a 10-minute break. We wanna stay on time here, so let's do 10 minutes, and then we'll turn it over to Rocky Kraft for the financial section.

Speaker 13: All right. Good morning, everyone. Welcome to Hillman's first ever Investor Day. I'm Michael Koehler, Vice President of Investor Relations and Treasury. Thank you for joining us on the webcast and a special thank you to those who traveled here to our customer support center in Cincinnati. We appreciate you taking the time to join us and your continued interest and engagement you show in Hillman. Please make note of the forward-looking statements and our presentation of non-GAAP financial metric disclosures on Slide 2. Today is about giving you a clear view of where we are, where we're going, and how we plan to create long-term value for our shareholders. Over the course of the day, you'll hear from members of our executive leadership team about four key topics. First, you'll hear about Hillman Strong. All right. all right Good morning, everyone. good morning everyone Welcome to Hillman's first ever Investor Day. welcome to hillman's first ever investor day I'm Michael Koehler, Vice President of Investor Relations and Treasury. i'm michael koehler vice president of investor relations and treasury Thank you for joining us on the webcast and a special thank you to those who traveled here to our customer support center in Cincinnati. thank you for joining us on the webcast and a special thank you to those who traveled here to our customer support center in cincinnati We appreciate you taking the time to join us and your continued interest and engagement you show in Hillman. we appreciate you taking the time to join us and your continued interest and engagement you show in hillman Please make note of the forward-looking statements and our presentation of non-GAAP financial metric disclosures on Slide 2 . please make note of the forward-looking statements and our presentation of non-gaap financial metric disclosures on slide 2 Today is about giving you a clear view of where we are, where we're going, and how we plan to create long-term value for our shareholders. today is about giving you a clear view of where we are where we're going and how we plan to create long-term value for our shareholders Over the course of the day, you'll hear from members of our executive leadership team about four key topics. over the course of the day you'll hear from members of our executive leadership team about four key topics First, you'll hear about Hillman Strong. first you'll hear about hillman strong We will talk about our vision, our strategy, and the strength of this business. Second, you'll hear about owning and expanding the core, diving into how we win and grow our core business. Third, you'll hear about how we plan to leverage our core competencies to win the Pro. Finally, you'll hear about how all of these work together to drive our compelling long-term financial framework. Our goal today is to provide transparency into our strategy, demonstrate the durability of our model and our right to win the Pro, and show how we are positioned to grow this business in the years ahead. With that, I'll turn it over to our President and CEO, Jon Michael Adinolfi. JMA, let's get started. We will talk about our vision, our strategy, and the strength of this business. we will talk about our vision our strategy and the strength of this business Second, you'll hear about owning and expanding the core, diving into how we win and grow our core business. second you'll hear about owning and expanding the core diving into how we win and grow our core business Third, you'll hear about how we plan to leverage our core competencies to win the Pro. third you'll hear about how we plan to leverage our core competencies to win the pro Finally, you'll hear about how all of these work together to drive our compelling long-term financial framework. finally you'll hear about how all of these work together to drive our compelling long-term financial framework Our goal today is to provide transparency into our strategy, demonstrate the durability of our model and our right to win the Pro, and show how we are positioned to grow this business in the years ahead. our goal today is to provide transparency into our strategy demonstrate the durability of our model and our right to win the pro and show how we are positioned to grow this business in the years ahead With that, I'll turn it over to our President and CEO, Jon Michael Adinolfi. with that i'll turn it over to our president and ceo jon michael adinolfi JMA, let's get started. jma let's get started

Speaker 11: Well, good morning, everyone, and thank you for joining us. We're excited to have you here today to talk about our vision and our strategy. As Michael said, we've got a good solid morning for you here. We're really excited about where Hillman is today and where Hillman is gonna be going in the next five years. To share this strategy, we're excited to present that to everyone here today. I'm Jon Michael Adinolfi. I go by JMA. Been in the industry for about 25 years, and I'm proud to say I've been with Hillman for about seven years. We're gonna start and just talk a little bit about how we're a category leader. For some of you know this story, you know how we take care of our customer. You know how we're actually number one in many of the categories we serve. Well, good morning, everyone, and thank you for joining us. well good morning everyone and thank you for joining us We're excited to have you here today to talk about our vision and our strategy. we're excited to have you here today to talk about our vision and our strategy As Michael said, we've got a good solid morning for you here. as michael said we've got a good solid morning for you here We're really excited about where Hillman is today and where Hillman is gonna be going in the next five years. we're really excited about where hillman is today and where hillman is gonna be going in the next five years To share this strategy, we're excited to present that to everyone here today. to share this strategy we're excited to present that to everyone here today I'm Jon Michael Adinolfi. i'm jon michael adinolfi I go by JMA. i go by jma Been in the industry for about 25 years, and I'm proud to say I've been with Hillman for about seven years. been in the industry for about 25 years and i'm proud to say i've been with hillman for about seven years We're gonna start and just talk a little bit about how we're a category leader. we're gonna start and just talk a little bit about how we're a category leader For some of you know this story, you know how we take care of our customer. for some of you know this story you know how we take care of our customer You know how we're actually number one in many of the categories we serve. you know how we're actually number one in many of the categories we serve If you're new to this story, it's important for you to understand that we focus on taking care of the customer. Since this company started over 62 years ago, we have focused on putting the customer first. When Max Hillman started the business, he focused on fasteners, putting the customer first and moving the business forward. We're proud to say over the last over 60 years, we've been able to do that by amassing close to $1.6 billion in revenue and driving EBIT margins to 17.7%. What you'll hear today that's a bit different is the fact that we have a much larger team than we've talked about in the past. We focused our business on the retail side of our opportunities. We love our retail customers. We're gonna continue to grow with them. If you're new to this story, it's important for you to understand that we focus on taking care of the customer. if you're new to this story it's important for you to understand that we focus on taking care of the customer Since this company started over 62 years ago, we have focused on putting the customer first. since this company started over 62 years ago we have focused on putting the customer first When Max Hillman started the business, he focused on fasteners, putting the customer first and moving the business forward. when max hillman started the business he focused on fasteners putting the customer first and moving the business forward We're proud to say over the last over 60 years, we've been able to do that by amassing close to $1.6 billion in revenue and driving EBIT margins to 17.7%. we're proud to say over the last over 60 years we've been able to do that by amassing close to $1.6 billion in revenue and driving ebit margins to 17.7% What you'll hear today that's a bit different is the fact that we have a much larger team than we've talked about in the past. what you'll hear today that's a bit different is the fact that we have a much larger team than we've talked about in the past We focused our business on the retail side of our opportunities. we focused our business on the retail side of our opportunities We love our retail customers. we love our retail customers We're gonna continue to grow with them. we're gonna continue to grow with them Today, we're gonna talk about the Pro and how we're gonna continue to expand our TAM. In the past, we talked about a TAM of roughly $6.5 billion. I'll talk to you about it turning into almost $18 billion with our opportunities around retail, Pro distribution, and industrial MRO. Our customers and their end users are very important to understand. We look at our business; it's 70% DIY and 30% Pro. This is not us going into an area that we haven't been before, and we're gonna share with you just how much progress we've made in the area of Pro and how we're gonna continue to expand that as we go forward. The strong financial performance should give you confidence that we're gonna be able to continue to move this business forward. Today, we're gonna talk about the Pro and how we're gonna continue to expand our TAM. today we're gonna talk about the pro and how we're gonna continue to expand our tam In the past, we talked about a TAM of roughly $6.5 billion. in the past we talked about a tam of roughly $6.5 billion I'll talk to you about it turning into almost $18 billion with our opportunities around retail, Pro distribution, and industrial MRO. i'll talk to you about it turning into almost $18 billion with our opportunities around retail pro distribution and industrial mro Our customers and their end users are very important to understand. our customers and their end users are very important to understand We look at our business; it's 70% DIY and 30% Pro. we look at our business it's 70% diy and 30% pro This is not us going into an area that we haven't been before, and we're gonna share with you just how much progress we've made in the area of Pro and how we're gonna continue to expand that as we go forward. this is not us going into an area that we haven't been before and we're gonna share with you just how much progress we've made in the area of pro and how we're gonna continue to expand that as we go forward The strong financial performance should give you confidence that we're gonna be able to continue to move this business forward. the strong financial performance should give you confidence that we're gonna be able to continue to move this business forward We've expanded our gross margins by over 600 basis points. We've improved net EBITDA by 300 basis points, and we've re-reduced our leverage down over two times. That should give you confidence that we're gonna continue to move this business forward, and that we have the team on the field to be able to do just that. Let's talk a little bit about that progress. We've improved EBITDA by close to $70 million over the last five years in a challenging market. Again, I already mentioned about the leverage improvement, but we've driven down net debt over $250 million. That should give you the confidence that this business can perform in good times and bad. That's really what we're about to talk about here today is about the opportunities we have to move forward. We've expanded our gross margins by over 600 basis points. we've expanded our gross margins by over 600 basis points We've improved net EBITDA by 300 basis points, and we've re-reduced our leverage down over two times. we've improved net ebitda by 300 basis points and we've re-reduced our leverage down over two times That should give you confidence that we're gonna continue to move this business forward, and that we have the team on the field to be able to do just that. that should give you confidence that we're gonna continue to move this business forward and that we have the team on the field to be able to do just that Let's talk a little bit about that progress. let's talk a little bit about that progress We've improved EBITDA by close to $70 million over the last five years in a challenging market. we've improved ebitda by close to $70 million over the last five years in a challenging market Again, I already mentioned about the leverage improvement, but we've driven down net debt over $250 million. again i already mentioned about the leverage improvement but we've driven down net debt over $250 million That should give you the confidence that this business can perform in good times and bad. that should give you the confidence that this business can perform in good times and bad That's really what we're about to talk about here today is about the opportunities we have to move forward. that's really what we're about to talk about here today is about the opportunities we have to move forward If you think about our profit and our improvement over that period of time, I think it's important to break down the different pieces. We're proud to say that we've doubled the net income CAGR compared to our peers over the last five years. At the same time, we've improved our EBITDA margins by over 150 basis points over our peers. Then we've driven this business to a nice, profitable point to where we can grow off of as we go forward. The big question here, I think for all of you and for us, is how do we continue to improve this business? It's gonna be through growth. We think that's why there's tremendous opportunity with this company. As you look that we trade to over a 50% discount to our peer set. If you think about our profit and our improvement over that period of time, I think it's important to break down the different pieces. if you think about our profit and our improvement over that period of time i think it's important to break down the different pieces We're proud to say that we've doubled the net income CAGR compared to our peers over the last five years. we're proud to say that we've doubled the net income cagr compared to our peers over the last five years At the same time, we've improved our EBITDA margins by over 150 basis points over our peers. at the same time we've improved our ebitda margins by over 150 basis points over our peers Then we've driven this business to a nice, profitable point to where we can grow off of as we go forward. then we've driven this business to a nice profitable point to where we can grow off of as we go forward The big question here, I think for all of you and for us, is how do we continue to improve this business? the big question here i think for all of you and for us is how do we continue to improve this business It's gonna be through growth. it's gonna be through growth We think that's why there's tremendous opportunity with this company. we think that's why there's tremendous opportunity with this company As you look that we trade to over a 50% discount to our peer set. as you look that we trade to over a 50% discount to our peer set What we're gonna talk about here today with, between myself and the rest of the leadership team, is about how we're gonna actually do just that. We're gonna show you how we're gonna grow the business. We're gonna continue to expand and move forward. To start there, we got to talk about the platform and the business. It's important to understand we have three businesses that we focus on. The fastening and hardware business, close to 70% of our portfolio. It's where the company started, and we've continued to grow. It's the vast majority of our over 111,000 SKUs that we serve our customers with excellence day in and day out. It's everything from common nuts and bolts to engineered fasteners that those of you in person are gonna be able to see later here today. We're proud of this portfolio. What we're gonna talk about here today with, between myself and the rest of the leadership team, is about how we're gonna actually do just that. what we're gonna talk about here today with between myself and the rest of the leadership team is about how we're gonna actually do just that We're gonna show you how we're gonna grow the business. we're gonna show you how we're gonna grow the business We're gonna continue to expand and move forward. we're gonna continue to expand and move forward To start there, we got to talk about the platform and the business. to start there we got to talk about the platform and the business It's important to understand we have three businesses that we focus on. it's important to understand we have three businesses that we focus on The fastening and hardware business, close to 70% of our portfolio. the fastening and hardware business close to 70% of our portfolio It's where the company started, and we've continued to grow. it's where the company started and we've continued to grow It's the vast majority of our over 111,000 SKUs that we serve our customers with excellence day in and day out. it's the vast majority of our over 111,000 skus that we serve our customers with excellence day in and day out It's everything from common nuts and bolts to engineered fasteners that those of you in person are gonna be able to see later here today. it's everything from common nuts and bolts to engineered fasteners that those of you in person are gonna be able to see later here today We're proud of this portfolio. we're proud of this portfolio We're gonna continue to build it, and we have the products to serve not only the DIY, but also the Pro. Turning to Protective Solutions, another important part of our category, it is the gloves, the protective gear that you need to do, whether it's a DIY project or a Pro project. We'll talk about some of the advancements we have in that business as well. RDS, our Robotics and Digital Solutions. It's our key business. Scott's gonna come up and talk to you about some of the exciting technology advancements we have in that area. These three businesses are the platform that we're gonna continue to build off of as we move forward. Our end markets. As I mentioned, the Pro is an important part of our equation as we move forward. We're gonna continue to build it, and we have the products to serve not only the DIY, but also the Pro. we're gonna continue to build it and we have the products to serve not only the diy but also the pro Turning to Protective Solutions, another important part of our category, it is the gloves, the protective gear that you need to do, whether it's a DIY project or a Pro project. turning to protective solutions another important part of our category it is the gloves the protective gear that you need to do whether it's a diy project or a pro project We'll talk about some of the advancements we have in that business as well. we'll talk about some of the advancements we have in that business as well RDS, our Robotics and Digital Solutions. rds our robotics and digital solutions It's our key business. it's our key business Scott's gonna come up and talk to you about some of the exciting technology advancements we have in that area. scott's gonna come up and talk to you about some of the exciting technology advancements we have in that area These three businesses are the platform that we're gonna continue to build off of as we move forward. these three businesses are the platform that we're gonna continue to build off of as we move forward Our end markets. our end markets As I mentioned, the Pro is an important part of our equation as we move forward. as i mentioned the pro is an important part of our equation as we move forward We wanna continue to serve the DIYer, but it's important that we'll break out here what we call retail pro distribution, industrial MRO. James Daly, our SVP of Pro, Chris Martin, our EVP of C&I, and I will come up and talk to you about those three businesses and explain to you how we're gonna continue to advance those markets. Then the geography. You know, we focus on North America, and we're proud of that market. We believe we have a tremendous opportunity and a lot of runways for us to go after in those markets where we are today. Next, we'll turn to the blueprint, and this is something I'm really excited about. It's something that we developed over the course of the last year as a team. We wanna continue to serve the DIYer, but it's important that we'll break out here what we call retail pro distribution, industrial MRO. we wanna continue to serve the diyer but it's important that we'll break out here what we call retail pro distribution industrial mro James Daly, our SVP of Pro, Chris Martin, our EVP of C&I, and I will come up and talk to you about those three businesses and explain to you how we're gonna continue to advance those markets. james daly our svp of pro chris martin our evp of c&i and i will come up and talk to you about those three businesses and explain to you how we're gonna continue to advance those markets Then the geography. then the geography You know, we focus on North America, and we're proud of that market. you know we focus on north america and we're proud of that market We believe we have a tremendous opportunity and a lot of runways for us to go after in those markets where we are today. we believe we have a tremendous opportunity and a lot of runways for us to go after in those markets where we are today Next, we'll turn to the blueprint, and this is something I'm really excited about. next we'll turn to the blueprint and this is something i'm really excited about It's something that we developed over the course of the last year as a team. it's something that we developed over the course of the last year as a team We didn't just create it for Investor Day, but I'm proud to say this is not only what we're doing and sharing with you in Investor Day, but it's what we're doing and how we're running the business. We developed this in 2025, and we rolled it out in 2026. The simple blueprint here that will go into greater detail throughout the presentation is about how we own the core. We're gonna focus on taking care of our customers, which we've been doing for over 60 years. We're gonna show you and explain to you how we're gonna grow that core through category expansion, both organic and inorganic, and then winning the pro. We didn't just create it for Investor Day, but I'm proud to say this is not only what we're doing and sharing with you in Investor Day, but it's what we're doing and how we're running the business. we didn't just create it for investor day but i'm proud to say this is not only what we're doing and sharing with you in investor day but it's what we're doing and how we're running the business We developed this in 2025, and we rolled it out in 2026. we developed this in 2025 and we rolled it out in 2026 The simple blueprint here that will go into greater detail throughout the presentation is about how we own the core. the simple blueprint here that will go into greater detail throughout the presentation is about how we own the core We're gonna focus on taking care of our customers, which we've been doing for over 60 years. we're gonna focus on taking care of our customers which we've been doing for over 60 years We're gonna show you and explain to you how we're gonna grow that core through category expansion, both organic and inorganic, and then winning the pro. we're gonna show you and explain to you how we're gonna grow that core through category expansion both organic and inorganic and then winning the pro It's where that we are today with the Pro and how we extend that and grow it into the channels where we have permission to play and where we are today, and we're gonna show you how we're gonna do just that. The key here is the ROIC focus. It's the way we've been running the business for a while, but we've now expanded the way we look at ROIC. It's not just me and Rocky talking about projects and initiatives. It's how the leadership team looks at growth. Any growth capital, M&A, all goes through the lens of ROIC. That's why we're confident that we're gonna maintain the strong profitability, the improvement in the balance sheet, and we're gonna grow this business as we move forward. Now we'll talk to the value creation catalysts. For us, it's very important. We have a very resilient business. It's where that we are today with the Pro and how we extend that and grow it into the channels where we have permission to play and where we are today, and we're gonna show you how we're gonna do just that. it's where that we are today with the pro and how we extend that and grow it into the channels where we have permission to play and where we are today and we're gonna show you how we're gonna do just that The key here is the ROIC focus. the key here is the roic focus It's the way we've been running the business for a while, but we've now expanded the way we look at ROIC. it's the way we've been running the business for a while but we've now expanded the way we look at roic It's not just me and Rocky talking about projects and initiatives. it's not just me and rocky talking about projects and initiatives It's how the leadership team looks at growth. it's how the leadership team looks at growth Any growth capital, M&A, all goes through the lens of ROIC. any growth capital m&a all goes through the lens of roic That's why we're confident that we're gonna maintain the strong profitability, the improvement in the balance sheet, and we're gonna grow this business as we move forward. that's why we're confident that we're gonna maintain the strong profitability the improvement in the balance sheet and we're gonna grow this business as we move forward Now we'll talk to the value creation catalysts. now we'll talk to the value creation catalysts For us, it's very important. for us it's very important We have a very resilient business. we have a very resilient business For many of you who've been following the story for a long period of time, we do well in tough times. We're able to take care of our customers. We are resilient. It's what part is what makes Hillman such a great company. In tough times, this business does well, but what we have also is that resilience to grow when there's opportunities, and that's what we're gonna explain to you here today. Our teams are focused on moving the business forward, and I'm excited about the path that we're gonna share with you. We have a large untapped TAM. As I'll break down in the next couple of slides, you'll see that we have the opportunity to grow in each of our markets. Integrated operations. I'm excited. For many of you who've been following the story for a long period of time, we do well in tough times. for many of you who've been following the story for a long period of time we do well in tough times We're able to take care of our customers. we're able to take care of our customers We are resilient. we are resilient It's what part is what makes Hillman such a great company. it's what part is what makes hillman such a great company In tough times, this business does well, but what we have also is that resilience to grow when there's opportunities, and that's what we're gonna explain to you here today. in tough times this business does well but what we have also is that resilience to grow when there's opportunities and that's what we're gonna explain to you here today Our teams are focused on moving the business forward, and I'm excited about the path that we're gonna share with you. our teams are focused on moving the business forward and i'm excited about the path that we're gonna share with you We have a large untapped TAM. we have a large untapped tam As I'll break down in the next couple of slides, you'll see that we have the opportunity to grow in each of our markets. as i'll break down in the next couple of slides you'll see that we have the opportunity to grow in each of our markets Integrated operations. integrated operations I'm excited. i'm excited Bob Davis is gonna walk you through our operations and then what we've been working on for many years to continue to strengthen our operations and get better and stronger and service our customers better each and every day. In 2025, we had one of the best, if not the best, service year that we've ever had in our company's history in a pretty challenging time. That should give you confidence. It gives us confidence that we're ready to move this business forward and grow. A solid balance sheet. As I mentioned, we're in the range of our target leverage. Rocky will go into much greater detail later, but that's an important thing. Bob Davis is gonna walk you through our operations and then what we've been working on for many years to continue to strengthen our operations and get better and stronger and service our customers better each and every day. bob davis is gonna walk you through our operations and then what we've been working on for many years to continue to strengthen our operations and get better and stronger and service our customers better each and every day In 2025, we had one of the best, if not the best, service year that we've ever had in our company's history in a pretty challenging time. in 2025 we had one of the best if not the best service year that we've ever had in our company's history in a pretty challenging time That should give you confidence. that should give you confidence It gives us confidence that we're ready to move this business forward and grow. it gives us confidence that we're ready to move this business forward and grow A solid balance sheet. a solid balance sheet As I mentioned, we're in the range of our target leverage. as i mentioned we're in the range of our target leverage Rocky will go into much greater detail later, but that's an important thing. rocky will go into much greater detail later but that's an important thing We have a solid balance sheet that we're gonna continue to maintain and grow as we go forward, meaning we're gonna continue to invest in this business, and we have the ability to do so. Then a highly experienced team. We got Rocky will be up here. Many of the members of the leadership team are here are gonna be presenting, but they're also gonna be out here for Q&A and doing product demos, different things. You that are in person are gonna be able to interact with them firsthand to see that this leadership team is deep and strong. That's what's gonna give you the confidence that we're gonna be able to grow this business and move it forward. We're excited to share that we have a path to grow this business to $2.5 billion over the next five years. We have a solid balance sheet that we're gonna continue to maintain and grow as we go forward, meaning we're gonna continue to invest in this business, and we have the ability to do so. we have a solid balance sheet that we're gonna continue to maintain and grow as we go forward meaning we're gonna continue to invest in this business and we have the ability to do so Then a highly experienced team. then a highly experienced team We got Rocky will be up here. we got rocky will be up here Many of the members of the leadership team are here are gonna be presenting, but they're also gonna be out here for Q&A and doing product demos, different things. many of the members of the leadership team are here are gonna be presenting but they're also gonna be out here for q&a and doing product demos different things You that are in person are gonna be able to interact with them firsthand to see that this leadership team is deep and strong. you that are in person are gonna be able to interact with them firsthand to see that this leadership team is deep and strong That's what's gonna give you the confidence that we're gonna be able to grow this business and move it forward. that's what's gonna give you the confidence that we're gonna be able to grow this business and move it forward We're excited to share that we have a path to grow this business to $2.5 billion over the next five years. we're excited to share that we have a path to grow this business to $2.5 billion over the next five years That solid path and trajectory, as I outlined earlier, is because we've proven that we can run this business well, and these are the buckets that we're gonna focus on as we go forward. We will talk in the future and update you on core growth. That's the day-to-day of how we run the business. It's things like market growth. It's customer footprint changes. It's category management. It's price. It's how we run the business. We'll update you on that on a quarterly basis as we go forward, but that is how we actually run the core. New business wins. The way we run the business day in and day out, you're gonna be excited to see here today that we're gonna increase our focus on new business wins. In the past, we've said we're gonna be 2%+. That solid path and trajectory, as I outlined earlier, is because we've proven that we can run this business well, and these are the buckets that we're gonna focus on as we go forward. that solid path and trajectory as i outlined earlier is because we've proven that we can run this business well and these are the buckets that we're gonna focus on as we go forward We will talk in the future and update you on core growth. we will talk in the future and update you on core growth That's the day-to-day of how we run the business. that's the day-to-day of how we run the business It's things like market growth. it's things like market growth It's customer footprint changes. it's customer footprint changes It's category management. it's category management It's price. it's price It's how we run the business. it's how we run the business We'll update you on that on a quarterly basis as we go forward, but that is how we actually run the core. we'll update you on that on a quarterly basis as we go forward but that is how we actually run the core New business wins. new business wins The way we run the business day in and day out, you're gonna be excited to see here today that we're gonna increase our focus on new business wins. the way we run the business day in and day out you're gonna be excited to see here today that we're gonna increase our focus on new business wins In the past, we've said we're gonna be 2%+. in the past we've said we're gonna be 2%+ We're gonna increase that to 4%+ over the next five years, and that's gonna be largely driven by our focus on pro and some of the great momentum we have in that business. M&A. While it's always been part of our history, we've done well over 20 deals. It's a part of how we believe we can augment and continue to grow our business, and Michael will walk you through great detail on what we're doing there and some of the exciting activity that we have in place. When we drive all these activities and deliver it, you're gonna see that we're gonna be a $2.5 billion+ company. We're really excited about the momentum we have, and today we're gonna walk through and share with you where we're going. The five-year financial objectives. On the previous page, I showed you that walk. We're gonna increase that to 4%+ over the next five years, and that's gonna be largely driven by our focus on pro and some of the great momentum we have in that business. we're gonna increase that to 4%+ over the next five years and that's gonna be largely driven by our focus on pro and some of the great momentum we have in that business M&A. m&a While it's always been part of our history, we've done well over 20 deals. while it's always been part of our history we've done well over 20 deals It's a part of how we believe we can augment and continue to grow our business, and Michael will walk you through great detail on what we're doing there and some of the exciting activity that we have in place. it's a part of how we believe we can augment and continue to grow our business and michael will walk you through great detail on what we're doing there and some of the exciting activity that we have in place When we drive all these activities and deliver it, you're gonna see that we're gonna be a $2.5 billion+ company. when we drive all these activities and deliver it you're gonna see that we're gonna be a $2.5 billion+ company We're really excited about the momentum we have, and today we're gonna walk through and share with you where we're going. we're really excited about the momentum we have and today we're gonna walk through and share with you where we're going The five-year financial objectives. the five-year financial objectives On the previous page, I showed you that walk. on the previous page i showed you that walk That's averaging between 8%-12% over the five-year period. Rocky will go into more detail on how we actually get to that revenue CAGR, but we're excited we have a path and we're gonna continue to grow. Low double-digit EBITDA, we're gonna continue to grow profitably. We are gonna maintain our net leverage at 2.5 and below. If we do any deals that move us above 2.5, we'll have a path to get back to it. We're gonna maintain that balance sheet discipline that we've put in place in the last several years. Newer for our story is we're gonna focus on our ROIC. Rocky will walk you through the calculation in more detail, but our team is driven and incented to drive profitable growth, and ROIC is gonna be our measure. This is the team that you'll see that's gonna execute. That's averaging between 8%-12% over the five-year period. that's averaging between 8%-12% over the five-year period Rocky will go into more detail on how we actually get to that revenue CAGR, but we're excited we have a path and we're gonna continue to grow. rocky will go into more detail on how we actually get to that revenue cagr but we're excited we have a path and we're gonna continue to grow Low double-digit EBITDA, we're gonna continue to grow profitably. low double-digit ebitda we're gonna continue to grow profitably We are gonna maintain our net leverage at 2.5 and below. we are gonna maintain our net leverage at 2.5 and below If we do any deals that move us above 2.5, we'll have a path to get back to it. if we do any deals that move us above 2.5 we'll have a path to get back to it We're gonna maintain that balance sheet discipline that we've put in place in the last several years. we're gonna maintain that balance sheet discipline that we've put in place in the last several years Newer for our story is we're gonna focus on our ROIC. newer for our story is we're gonna focus on our roic Rocky will walk you through the calculation in more detail, but our team is driven and incented to drive profitable growth, and ROIC is gonna be our measure. rocky will walk you through the calculation in more detail but our team is driven and incented to drive profitable growth and roic is gonna be our measure This is the team that you'll see that's gonna execute. this is the team that you'll see that's gonna execute Very proud of this leadership team. We have years of industry experience, but we also bring experience from other parts of the world. It's very important that as you think about Hillman's evolution, we continue to grow through challenging times and good times. You've got to continue to build your business and bring in talent that can move you forward. This is the leadership team that's doing just that. Very proud of this leadership team. very proud of this leadership team We have years of industry experience, but we also bring experience from other parts of the world. we have years of industry experience but we also bring experience from other parts of the world It's very important that as you think about Hillman's evolution, we continue to grow through challenging times and good times. it's very important that as you think about hillman's evolution we continue to grow through challenging times and good times You've got to continue to build your business and bring in talent that can move you forward. you've got to continue to build your business and bring in talent that can move you forward This is the leadership team that's doing just that. this is the leadership team that's doing just that I'm excited to share them with you today, and you'll be able to hear from the leaders firsthand on what they're doing to move the business forward. I'm proud of this team that's on the field, and we look forward to winning in the next five years, and we're gonna demonstrate the performance that we can deliver. Now many of you are probably thinking about, well, JMA, we've heard you talk about retail. We've heard you talk about all the great growth and partners that you have. How are you thinking about that $18 billion TAM? Well, here it is. We spent quite a bit of time in 2025 into 2026 really breaking down our business, thinking about our core, how we take care of our customers, how we actually grow them. I'm excited to share them with you today, and you'll be able to hear from the leaders firsthand on what they're doing to move the business forward. i'm excited to share them with you today and you'll be able to hear from the leaders firsthand on what they're doing to move the business forward I'm proud of this team that's on the field, and we look forward to winning in the next five years, and we're gonna demonstrate the performance that we can deliver. i'm proud of this team that's on the field and we look forward to winning in the next five years and we're gonna demonstrate the performance that we can deliver Now many of you are probably thinking about, well, JMA, we've heard you talk about retail. now many of you are probably thinking about well jma we've heard you talk about retail We've heard you talk about all the great growth and partners that you have. we've heard you talk about all the great growth and partners that you have How are you thinking about that $18 billion TAM? how are you thinking about that $18 billion tam Well, here it is. well here it is We spent quite a bit of time in 2025 into 2026 really breaking down our business, thinking about our core, how we take care of our customers, how we actually grow them. we spent quite a bit of time in 2025 into 2026 really breaking down our business thinking about our core how we take care of our customers how we actually grow them It was important to break down first and say, "Where do you play today, and what are the channels you serve?" We identified three areas that are very important for us. Retail. We love our retail business. We're focused on. This is not a shift away from retail. This is supporting our retail partners, continuing to support them and what they do today. They service DIY as well as Pro. James will walk you through how we're gonna grow with them as they continue to shift and focus on the Pro. Pro distribution. Chris will come and talk to you about specialty distribution and one of the businesses we have today, one of our solid businesses where we actually focus on the Pro day in and day out, and how we're gonna grow that and what it means to play and win in that area. It was important to break down first and say, "Where do you play today, and what are the channels you serve?" We identified three areas that are very important for us. it was important to break down first and say "where do you play today and what are the channels you serve?" we identified three areas that are very important for us Retail. retail We love our retail business. we love our retail business We're focused on. we're focused on This is not a shift away from retail. this is not a shift away from retail This is supporting our retail partners, continuing to support them and what they do today. this is supporting our retail partners continuing to support them and what they do today They service DIY as well as Pro. they service diy as well as pro James will walk you through how we're gonna grow with them as they continue to shift and focus on the Pro. james will walk you through how we're gonna grow with them as they continue to shift and focus on the pro Pro distribution. pro distribution Chris will come and talk to you about specialty distribution and one of the businesses we have today, one of our solid businesses where we actually focus on the Pro day in and day out, and how we're gonna grow that and what it means to play and win in that area. chris will come and talk to you about specialty distribution and one of the businesses we have today one of our solid businesses where we actually focus on the pro day in and day out and how we're gonna grow that and what it means to play and win in that area I'll also talk about LBM, which is in part of our pro distribution space. Industrial MRO. Some may say, "Well, we didn't even know you were in that space." It's actually that we've been in that business for over 100 years. Our Paulin Industrial business in Canada that we acquired has actually been in that business for over 100 years, servicing the industrial maintenance and repair professionals. That's another area where we have a common theme in what we can do. We have leverage across these areas. We have great products, and in many cases, we have the products necessary to serve the pro. It's about giving them the products the way they want, and we'll explain what that means as we go through the presentation. I'll also talk about LBM, which is in part of our pro distribution space. i'll also talk about lbm which is in part of our pro distribution space Industrial MRO. industrial mro Some may say, "Well, we didn't even know you were in that space." It's actually that we've been in that business for over 100 years. some may say "well we didn't even know you were in that space." it's actually that we've been in that business for over 100 years Our Paulin Industrial business in Canada that we acquired has actually been in that business for over 100 years, servicing the industrial maintenance and repair professionals. our paulin industrial business in canada that we acquired has actually been in that business for over 100 years servicing the industrial maintenance and repair professionals That's another area where we have a common theme in what we can do. that's another area where we have a common theme in what we can do We have leverage across these areas. we have leverage across these areas We have great products, and in many cases, we have the products necessary to serve the pro. we have great products and in many cases we have the products necessary to serve the pro It's about giving them the products the way they want, and we'll explain what that means as we go through the presentation. it's about giving them the products the way they want and we'll explain what that means as we go through the presentation With that, I think it's important to really look at where's the retail position and how do we grow into the pro presence. This is how we break down the markets. There's $6.5 billion that we have in retail, and we're gonna grow with our retail partners. We're gonna talk about that as we go throughout the day. I will thread back to this page numerous times throughout the presentation to make sure you understand that we have a 20% share there with opportunity to grow. Brett's gonna go into great detail what we're gonna do there. Pro distribution, again, we have small share, $200 million business, 3% share in a massive market. With that, I think it's important to really look at where's the retail position and how do we grow into the pro presence. with that i think it's important to really look at where's the retail position and how do we grow into the pro presence This is how we break down the markets. this is how we break down the markets There's $6.5 billion that we have in retail, and we're gonna grow with our retail partners. there's $6.5 billion that we have in retail and we're gonna grow with our retail partners We're gonna talk about that as we go throughout the day. we're gonna talk about that as we go throughout the day I will thread back to this page numerous times throughout the presentation to make sure you understand that we have a 20% share there with opportunity to grow. i will thread back to this page numerous times throughout the presentation to make sure you understand that we have a 20% share there with opportunity to grow Brett's gonna go into great detail what we're gonna do there. brett's gonna go into great detail what we're gonna do there Pro distribution, again, we have small share, $200 million business, 3% share in a massive market. pro distribution again we have small share $200 million business 3% share in a massive market No, this is not to say we're gonna be able to go capture all that share, but we were gonna make meaningful traction in our organic as well as inorganically in this space. Industrial MRO, another area that we serve today and believe that we can serve in a greater way tomorrow. That'll be organic. We will grow there, and also inorganically, we have opportunities to grow. This is how you should be thinking about the landscape that Hillman is gonna be operating in and why we are gonna have permission to grow. We're excited about sharing this in more detail as we go throughout the presentation here today. As we get ready to shift, I want you to get ready for Brett Hillman. He's gonna come up here. He's our EVP of Sales. No, this is not to say we're gonna be able to go capture all that share, but we were gonna make meaningful traction in our organic as well as inorganically in this space. no this is not to say we're gonna be able to go capture all that share but we were gonna make meaningful traction in our organic as well as inorganically in this space Industrial MRO, another area that we serve today and believe that we can serve in a greater way tomorrow. industrial mro another area that we serve today and believe that we can serve in a greater way tomorrow That'll be organic. that'll be organic We will grow there, and also inorganically, we have opportunities to grow. we will grow there and also inorganically we have opportunities to grow This is how you should be thinking about the landscape that Hillman is gonna be operating in and why we are gonna have permission to grow. this is how you should be thinking about the landscape that hillman is gonna be operating in and why we are gonna have permission to grow We're excited about sharing this in more detail as we go throughout the presentation here today. we're excited about sharing this in more detail as we go throughout the presentation here today As we get ready to shift, I want you to get ready for Brett Hillman. as we get ready to shift i want you to get ready for brett hillman He's gonna come up here. he's gonna come up here He's our EVP of Sales. he's our evp of sales Brett is gonna walk you through how we own the core and how we expand it. We're really excited about the opportunities we have to share with you there today. With that, I would like to welcome Brett up to the stage. Brett? Brett is gonna walk you through how we own the core and how we expand it. brett is gonna walk you through how we own the core and how we expand it We're really excited about the opportunities we have to share with you there today. we're really excited about the opportunities we have to share with you there today With that, I would like to welcome Brett up to the stage. with that i would like to welcome brett up to the stage Brett? brett

Speaker 5: All right. Well, thank you, J.M.A., and good morning, everyone. I'm Brett Hillman, I lead our retail sales business. I've been with Hillman for 21 years, spending 18 of those on the sales side and in front of customers. Selling at Hillman is literally in my blood, and I couldn't be more excited to share our retail growth strategy with all of you today. Let's start with how we win the core. First, let's define the core. The core are the existing categories that we sell into our existing customers today. All right. all right Well, thank you, J.M.A., and good morning, everyone. well thank you j.m.a and good morning everyone I'm Brett Hillman, I lead our retail sales business. i'm brett hillman i lead our retail sales business I've been with Hillman for 21 years, spending 18 of those on the sales side and in front of customers. i've been with hillman for 21 years spending 18 of those on the sales side and in front of customers Selling at Hillman is literally in my blood, and I couldn't be more excited to share our retail growth strategy with all of you today. selling at hillman is literally in my blood and i couldn't be more excited to share our retail growth strategy with all of you today Let's start with how we win the core. let's start with how we win the core First, let's define the core. first let's define the core The core are the existing categories that we sell into our existing customers today. the core are the existing categories that we sell into our existing customers today This strong foundation has been built over 62 years, product by product, customer by customer, and has provided us a differentiated solution that allows us to win. We are truly in a league of our own. Said differently, there's nobody quite like us. Our scale, from our product breadth to our direct-to-store distribution, to the people in the stores serving our customers every single day, we are the only true comprehensive solution in hardware. That moat starts with deep relationships with all of our customers, big and small. Our customers want to buy from Hillman. More importantly, they wanna buy more from Hillman because we offer a solution that manages their complexity while also growing their retail sales. Now let's talk about where we play. As you can see here, we span across a lot of categories. This strong foundation has been built over 62 years, product by product, customer by customer, and has provided us a differentiated solution that allows us to win. this strong foundation has been built over 62 years product by product customer by customer and has provided us a differentiated solution that allows us to win We are truly in a league of our own. we are truly in a league of our own Said differently, there's nobody quite like us. said differently there's nobody quite like us Our scale, from our product breadth to our direct-to-store distribution, to the people in the stores serving our customers every single day, we are the only true comprehensive solution in hardware. our scale from our product breadth to our direct-to-store distribution to the people in the stores serving our customers every single day we are the only true comprehensive solution in hardware That moat starts with deep relationships with all of our customers, big and small. that moat starts with deep relationships with all of our customers big and small Our customers want to buy from Hillman. our customers want to buy from hillman More importantly, they wanna buy more from Hillman because we offer a solution that manages their complexity while also growing their retail sales. more importantly they wanna buy more from hillman because we offer a solution that manages their complexity while also growing their retail sales Now let's talk about where we play. now let's talk about where we play As you can see here, we span across a lot of categories. as you can see here we span across a lot of categories This extensive portfolio, as JMA mentioned, started with core fasteners 62 years ago, and it's evolved over time through a combination of M&A and new category launches. Our strategy has always been to enter new categories that we believe we can leverage that moat that you've heard of so many times to be number one. We develop categories like Builders Hardware because our customers asked us. We develop categories like power screws or SmartKey because we knew that's where the market was going. We've also acquired into categories like Rope and Chain and gloves because we believe that our value proposition gives us the right to win, all while maintaining 90% brand ownership. All right. Why we win. These six core competencies are incredibly important. In combination, we believe we have a distinct advantage versus the competition. Let's start with our product breadth. This extensive portfolio, as JMA mentioned, started with core fasteners 62 years ago, and it's evolved over time through a combination of M&A and new category launches. this extensive portfolio as jma mentioned started with core fasteners 62 years ago and it's evolved over time through a combination of m&a and new category launches Our strategy has always been to enter new categories that we believe we can leverage that moat that you've heard of so many times to be number one. our strategy has always been to enter new categories that we believe we can leverage that moat that you've heard of so many times to be number one We develop categories like Builders Hardware because our customers asked us. we develop categories like builders hardware because our customers asked us We develop categories like power screws or SmartKey because we knew that's where the market was going. we develop categories like power screws or smartkey because we knew that's where the market was going We've also acquired into categories like Rope and Chain and gloves because we believe that our value proposition gives us the right to win, all while maintaining 90% brand ownership. we've also acquired into categories like rope and chain and gloves because we believe that our value proposition gives us the right to win all while maintaining 90% brand ownership All right. all right Why we win. why we win These six core competencies are incredibly important. these six core competencies are incredibly important In combination, we believe we have a distinct advantage versus the competition. in combination we believe we have a distinct advantage versus the competition Let's start with our product breadth. let's start with our product breadth We manage over 111,000 SKUs, selling into 29,000 retail locations with an average store carrying over 8,000 of our products. We manage over 111,000 SKUs, selling into 29,000 retail locations with an average store carrying over 8,000 of our products. we manage over 111,000 skus selling into 29,000 retail locations with an average store carrying over 8,000 of our products This breadth of product, especially in categories like fasteners, is critical for our retailer to win and to be able to provide that one-stop solution to meet the needs of their customers. The age-old slogan from our retailers, "If we don't have it, you don't need it," still exists today. Now, not everywhere, but it is a real thing, and they count on Hillman to deliver that comprehensive solution. Next is innovation. We'll talk more about this in just a few minutes, but we invest heavily in new product development as the consumer continues to pursue better-performing products, especially the pro, who's always looking to save on time and battery life for their tools. Our customers consistently ask us what's new and count on us to bring those innovative solutions. Category management. This breadth of product, especially in categories like fasteners, is critical for our retailer to win and to be able to provide that one-stop solution to meet the needs of their customers. this breadth of product especially in categories like fasteners is critical for our retailer to win and to be able to provide that one-stop solution to meet the needs of their customers The age-old slogan from our retailers, "If we don't have it, you don't need it," still exists today. the age-old slogan from our retailers "if we don't have it you don't need it," still exists today Now, not everywhere, but it is a real thing, and they count on Hillman to deliver that comprehensive solution. now not everywhere but it is a real thing and they count on hillman to deliver that comprehensive solution Next is innovation. next is innovation We'll talk more about this in just a few minutes, but we invest heavily in new product development as the consumer continues to pursue better-performing products, especially the pro, who's always looking to save on time and battery life for their tools. we'll talk more about this in just a few minutes but we invest heavily in new product development as the consumer continues to pursue better-performing products especially the pro who's always looking to save on time and battery life for their tools Our customers consistently ask us what's new and count on us to bring those innovative solutions. our customers consistently ask us what's new and count on us to bring those innovative solutions Category management. category management Because our extensive product breadth and consistently bringing new products to the market, our customers heavily rely on us to manage those categories and drive their core. We partner every day with our customers in retail across all channels, from big box to local hardware store, to create customized and localized solutions, maximizing that customer experience. We base these decisions on data, whether it's point-of-sale data, shipment data, or consumer insights to know where the market's going. Field sales team, also known as the secret sauce, you've heard that. Our 1,200 sales and service folks provide the ultimate differentiation from the competition. These folks are directly responsible for driving growth at the shelf in every retail location. They maintain our displays. They manage the inventory. They write orders. They do PK sessions. They train associates. They sell new products. Because our extensive product breadth and consistently bringing new products to the market, our customers heavily rely on us to manage those categories and drive their core. because our extensive product breadth and consistently bringing new products to the market our customers heavily rely on us to manage those categories and drive their core We partner every day with our customers in retail across all channels, from big box to local hardware store, to create customized and localized solutions, maximizing that customer experience. we partner every day with our customers in retail across all channels from big box to local hardware store to create customized and localized solutions maximizing that customer experience We base these decisions on data, whether it's point-of-sale data, shipment data, or consumer insights to know where the market's going. we base these decisions on data whether it's point-of-sale data shipment data or consumer insights to know where the market's going Field sales team, also known as the secret sauce, you've heard that. field sales team also known as the secret sauce you've heard that Our 1,200 sales and service folks provide the ultimate differentiation from the competition. our 1,200 sales and service folks provide the ultimate differentiation from the competition These folks are directly responsible for driving growth at the shelf in every retail location. these folks are directly responsible for driving growth at the shelf in every retail location They maintain our displays. they maintain our displays They manage the inventory. they manage the inventory They write orders. they write orders They do PK sessions. they do pk sessions They train associates. they train associates They sell new products. they sell new products Most importantly, they own the relationship from maybe the hardware store owner, the store manager, or even the associate in the aisle. They are an invaluable asset to our retailers. The last two, direct-to-store distribution and dual faucet global sourcing. Look, we have a very unique operating model that allows us to do all that other stuff, but I don't want to steal Bob Davis's thunder, so I'll let him talk with all of you about those capabilities. In summary, all these superior capabilities provide us an overall value that nobody else can offer, grounded in customer relationships that go back decades. We are a strategic partner. We're the one-stop-shop. We manage their complexity. We innovate. We deliver operationally every day, and we prioritize those customer relationships from the senior executives at our largest customers down to the associate in a store. This is why we win. Most importantly, they own the relationship from maybe the hardware store owner, the store manager, or even the associate in the aisle. most importantly they own the relationship from maybe the hardware store owner the store manager or even the associate in the aisle They are an invaluable asset to our retailers. they are an invaluable asset to our retailers The last two, direct-to-store distribution and dual faucet global sourcing. the last two direct-to-store distribution and dual faucet global sourcing Look, we have a very unique operating model that allows us to do all that other stuff, but I don't want to steal Bob Davis's thunder, so I'll let him talk with all of you about those capabilities. look we have a very unique operating model that allows us to do all that other stuff but i don't want to steal bob davis's thunder so i'll let him talk with all of you about those capabilities In summary, all these superior capabilities provide us an overall value that nobody else can offer, grounded in customer relationships that go back decades. in summary all these superior capabilities provide us an overall value that nobody else can offer grounded in customer relationships that go back decades We are a strategic partner. we are a strategic partner We're the one-stop-shop. we're the one-stop-shop We manage their complexity. we manage their complexity We innovate. we innovate We deliver operationally every day, and we prioritize those customer relationships from the senior executives at our largest customers down to the associate in a store. we deliver operationally every day and we prioritize those customer relationships from the senior executives at our largest customers down to the associate in a store This is why we win. this is why we win We put our customers first. Those relationships are diverse. Let me tell you what that means. We are entrenched with our retailers across dozens of categories, leveraging our portfolio and our field team. Said differently, we're very sticky and our customers across all retail channels. Example, both of our big box customers, in addition to our largest hardware chain customer, we earn on average of seven different departments. There are an average of 19 merchant buyers that we call on managing thousands of SKUs every day. There's a little risk of lost business with only one category at a single customer representing more than 4% of our total revenue. Most importantly, this stickiness gives us a right to win new business, and we have significant runway with every one of our customers. We put our customers first. we put our customers first Those relationships are diverse. those relationships are diverse Let me tell you what that means. let me tell you what that means We are entrenched with our retailers across dozens of categories, leveraging our portfolio and our field team. we are entrenched with our retailers across dozens of categories leveraging our portfolio and our field team Said differently, we're very sticky and our customers across all retail channels. said differently we're very sticky and our customers across all retail channels Example, both of our big box customers, in addition to our largest hardware chain customer, we earn on average of seven different departments. example both of our big box customers in addition to our largest hardware chain customer we earn on average of seven different departments There are an average of 19 merchant buyers that we call on managing thousands of SKUs every day. there are an average of 19 merchant buyers that we call on managing thousands of skus every day There's a little risk of lost business with only one category at a single customer representing more than 4% of our total revenue. there's a little risk of lost business with only one category at a single customer representing more than 4% of our total revenue Most importantly, this stickiness gives us a right to win new business, and we have significant runway with every one of our customers. most importantly this stickiness gives us a right to win new business and we have significant runway with every one of our customers Now let's talk about how we grow the core organically outside of the footprints that we serve today through category expansion and new product innovation. Our strategy to expand categories will come in two forms. First, we're gonna leverage existing categories in the moat and gain incremental shelf space, both with existing customers as well as new prospects. We call this new business, and this is part of our DNA as a sales-driven organization. Second, we're gonna expand new categories to drive meaningful growth over the long haul. These categories are selected based on where we believe the moat can make the biggest difference and where we believe we can be number one. In some cases, like I said earlier, our customers will push us into a category like Builders Hardware, which we built and launched back in 2011. Now let's talk about how we grow the core organically outside of the footprints that we serve today through category expansion and new product innovation. now let's talk about how we grow the core organically outside of the footprints that we serve today through category expansion and new product innovation Our strategy to expand categories will come in two forms. our strategy to expand categories will come in two forms First, we're gonna leverage existing categories in the moat and gain incremental shelf space, both with existing customers as well as new prospects. first we're gonna leverage existing categories in the moat and gain incremental shelf space both with existing customers as well as new prospects We call this new business, and this is part of our DNA as a sales-driven organization. we call this new business and this is part of our dna as a sales-driven organization Second, we're gonna expand new categories to drive meaningful growth over the long haul. second we're gonna expand new categories to drive meaningful growth over the long haul These categories are selected based on where we believe the moat can make the biggest difference and where we believe we can be number one. these categories are selected based on where we believe the moat can make the biggest difference and where we believe we can be number one In some cases, like I said earlier, our customers will push us into a category like Builders Hardware, which we built and launched back in 2011. in some cases like i said earlier our customers will push us into a category like builders hardware which we built and launched back in 2011 In other cases, we enter a category because that's where the market trends are going. Like with a pro, where we launch Structural Screws, which is replacing commodity-type products like lag screws and carriage bolts. Again, we're leaning in on both fronts because we have the broadest range of core competencies in our space that allows us to win. Some recent examples. Displacing a competitor in the hinge category at one of our big box customers. Partnering with a big box customer to create an innovative Tool Rig solution to meet the needs of the pro. Displacing a long-standing competitor in the Rope and Chain category at our largest hardware chain customer and continually launching new products that help us maximize our performance on the shelf so our retailers can win. This innovation I talked about, it's critical. As the saying goes, innovate or die. In other cases, we enter a category because that's where the market trends are going. in other cases we enter a category because that's where the market trends are going Like with a pro, where we launch Structural Screws, which is replacing commodity-type products like lag screws and carriage bolts. like with a pro where we launch structural screws which is replacing commodity-type products like lag screws and carriage bolts Again, we're leaning in on both fronts because we have the broadest range of core competencies in our space that allows us to win. again we're leaning in on both fronts because we have the broadest range of core competencies in our space that allows us to win Some recent examples. some recent examples Displacing a competitor in the hinge category at one of our big box customers. displacing a competitor in the hinge category at one of our big box customers Partnering with a big box customer to create an innovative Tool Rig solution to meet the needs of the pro. partnering with a big box customer to create an innovative tool rig solution to meet the needs of the pro Displacing a long-standing competitor in the Rope and Chain category at our largest hardware chain customer and continually launching new products that help us maximize our performance on the shelf so our retailers can win. displacing a long-standing competitor in the rope and chain category at our largest hardware chain customer and continually launching new products that help us maximize our performance on the shelf so our retailers can win This innovation I talked about, it's critical. this innovation i talked about it's critical As the saying goes, innovate or die. as the saying goes innovate or die We focus on the consumer, not where they'll be tomorrow, but where they'll be three to five years. Our goal is always to elevate our premium brands to ensure we stay one step ahead of the competition. The latest example is Power Pro 4.0. This is our fourth generation Power Pro screw, head and shoulders above any other screw out there. The development took three years. We focus on the consumer, not where they'll be tomorrow, but where they'll be three to five years. we focus on the consumer not where they'll be tomorrow but where they'll be three to five years Our goal is always to elevate our premium brands to ensure we stay one step ahead of the competition. our goal is always to elevate our premium brands to ensure we stay one step ahead of the competition The latest example is Power Pro 4.0. the latest example is power pro 4.0 This is our fourth generation Power Pro screw, head and shoulders above any other screw out there. this is our fourth generation power pro screw head and shoulders above any other screw out there The development took three years. the development took three years While Power Pro 3.0 was a great screw, we felt obligated to raise the bar and create something that both the DIY and the pro could benefit from. This has been a great win since we launched in 2024, and continues to help us win the pro. All of you here in Cincinnati are gonna see this innovation come to life later today in our product demos. Where does all this category opportunity take us in expansion? Well, simple. We partner with our retailers. There happens to be a ton of runway with the customers and the channels that we serve today, both in categories that we already sell today, as well as categories that we could potentially build and/or buy someday in the future. We could nearly double our share by expanding our footprints and leveraging the moat. While Power Pro 3.0 was a great screw, we felt obligated to raise the bar and create something that both the DIY and the pro could benefit from. while power pro 3.0 was a great screw we felt obligated to raise the bar and create something that both the diy and the pro could benefit from This has been a great win since we launched in 2024, and continues to help us win the pro. this has been a great win since we launched in 2024 and continues to help us win the pro All of you here in Cincinnati are gonna see this innovation come to life later today in our product demos. all of you here in cincinnati are gonna see this innovation come to life later today in our product demos Where does all this category opportunity take us in expansion? where does all this category opportunity take us in expansion Well, simple. well simple We partner with our retailers. we partner with our retailers There happens to be a ton of runway with the customers and the channels that we serve today, both in categories that we already sell today, as well as categories that we could potentially build and/or buy someday in the future. there happens to be a ton of runway with the customers and the channels that we serve today both in categories that we already sell today as well as categories that we could potentially build and/or buy someday in the future We could nearly double our share by expanding our footprints and leveraging the moat. we could nearly double our share by expanding our footprints and leveraging the moat This will be our North Star for growth in retail over the next three to five years. Thanks, everyone. I appreciate your time. Now I'm gonna hand it over to Scott Moore, our President of RDS. This will be our North Star for growth in retail over the next three to five years. this will be our north star for growth in retail over the next three to five years Thanks, everyone. thanks everyone I appreciate your time. i appreciate your time Now I'm gonna hand it over to Scott Moore, our President of RDS. now i'm gonna hand it over to scott moore our president of rds

Speaker 17: Good morning, everyone. Thanks, Brett. My name is Scott Moore. I'm the Divisional President of Robotics and Digital Solutions, what we call RDS. I wanna thank you all for being here today. Super excited to talk to you about the business, not only how we're gonna own the core, but how we're gonna leverage our reputation and our investments to grow the core. I have a deep history with this business. I was one of the early founders back in 2011, serving as the CTO essentially through the 2018 acquisition by Hillman in 2018. Went on to serve as the CTO for Hillman in 2022. Good morning, everyone. good morning everyone Thanks, Brett. thanks brett My name is Scott Moore. my name is scott moore I'm the Divisional President of Robotics and Digital Solutions, what we call RDS. i'm the divisional president of robotics and digital solutions what we call rds I wanna thank you all for being here today. i wanna thank you all for being here today Super excited to talk to you about the business, not only how we're gonna own the core, but how we're gonna leverage our reputation and our investments to grow the core. super excited to talk to you about the business not only how we're gonna own the core but how we're gonna leverage our reputation and our investments to grow the core I have a deep history with this business. i have a deep history with this business I was one of the early founders back in 2011, serving as the CTO essentially through the 2018 acquisition by Hillman in 2018. i was one of the early founders back in 2011 serving as the cto essentially through the 2018 acquisition by hillman in 2018 Went on to serve as the CTO for Hillman in 2022. went on to serve as the cto for hillman in 2022 In 2024, I was asked to return to lead the business, which I was super excited about because not only do I love the people, I love the products, and I love what we have to offer our customers. You hear JMA talk about how we take care of our customers. You just heard Brett talk about how we define our core. Let me tell you about how we own the core at RDS. We've built our reputation on four things. Quality product, convenience for our customer, competitive pricing, and a 100% money-back guarantee. That's why we've cut over 300 million keys on Mini Key machines. Our customers have come to know and trust our brand over the last 15 years. Let's take a look at the business. In 2024, I was asked to return to lead the business, which I was super excited about because not only do I love the people, I love the products, and I love what we have to offer our customers. in 2024 i was asked to return to lead the business which i was super excited about because not only do i love the people i love the products and i love what we have to offer our customers You hear JMA talk about how we take care of our customers. you hear jma talk about how we take care of our customers You just heard Brett talk about how we define our core. you just heard brett talk about how we define our core Let me tell you about how we own the core at RDS. let me tell you about how we own the core at rds We've built our reputation on four things. we've built our reputation on four things Quality product, convenience for our customer, competitive pricing, and a 100% money-back guarantee. quality product convenience for our customer competitive pricing and a 100% money-back guarantee That's why we've cut over 300 million keys on Mini Key machines. that's why we've cut over 300 million keys on mini key machines Our customers have come to know and trust our brand over the last 15 years. our customers have come to know and trust our brand over the last 15 years Let's take a look at the business. let's take a look at the business Today, we have a very healthy and profitable organization that's generating $220 million net sales for last year. We did that with over 3,000 machines in very high retail foot traffic locations. As you can see, Minute Key is our flagship, 45% of our revenues. We're gonna talk more about the Minute Key machine in a minute. Second is our manual key business at 32% of revenues. This is roughly 9,000 machines out there that are store associate operated. They cut 150 different types of keys. It's a direct-to-store inventory model. Serviced by our sales folks who are in these stores on a regular basis. This is a very consistent, very profitable business that we still consider a big piece of our core. Pet tag engraving is third, at 18% of revenues. Today, we have a very healthy and profitable organization that's generating $220 million net sales for last year. today we have a very healthy and profitable organization that's generating $220 million net sales for last year We did that with over 3,000 machines in very high retail foot traffic locations. we did that with over 3,000 machines in very high retail foot traffic locations As you can see, Minute Key is our flagship, 45% of our revenues. as you can see minute key is our flagship 45% of our revenues We're gonna talk more about the Minute Key machine in a minute. we're gonna talk more about the minute key machine in a minute Second is our manual key business at 32% of revenues. second is our manual key business at 32% of revenues This is roughly 9,000 machines out there that are store associate operated. this is roughly 9,000 machines out there that are store associate operated They cut 150 different types of keys. they cut 150 different types of keys It's a direct-to-store inventory model. it's a direct-to-store inventory model Serviced by our sales folks who are in these stores on a regular basis. serviced by our sales folks who are in these stores on a regular basis This is a very consistent, very profitable business that we still consider a big piece of our core. this is a very consistent very profitable business that we still consider a big piece of our core Pet tag engraving is third, at 18% of revenues. pet tag engraving is third at 18% of revenues We have roughly 7,000 of these machines. We're in the top 3 big brick-and-mortar retailers out there today. Rounding out the mix is our Resharp machines. We have roughly 1,000 of those, and then we do some third-party servicing for others. Regardless of what machine we're talking about in our fleet, they all have one thing in common, and that's unmatched quality. 100% assembled in the USA in our Tempe facility. We design, we engineer, we manufacture, we refurb there. We take great pride in what we do. We have unmatched accuracy on our machines. We cut keys to ±2 thou. We have excellent uptime, very high reliability, and very low customer return rates. Helping us drive that is our technology behind the scenes. We do advanced remote management, predictive maintenance, and a lot of data analytics. We have roughly 7,000 of these machines. we have roughly 7,000 of these machines We're in the top 3 big brick-and-mortar retailers out there today. we're in the top 3 big brick-and-mortar retailers out there today Rounding out the mix is our Resharp machines. rounding out the mix is our resharp machines We have roughly 1,000 of those, and then we do some third-party servicing for others. we have roughly 1,000 of those and then we do some third-party servicing for others Regardless of what machine we're talking about in our fleet, they all have one thing in common, and that's unmatched quality. 100% assembled in the USA in our Tempe facility. regardless of what machine we're talking about in our fleet they all have one thing in common and that's unmatched quality 100% assembled in the usa in our tempe facility We design, we engineer, we manufacture, we refurb there. we design we engineer we manufacture we refurb there We take great pride in what we do. we take great pride in what we do We have unmatched accuracy on our machines. we have unmatched accuracy on our machines We cut keys to ±2 thou. we cut keys to ±2 thou We have excellent uptime, very high reliability, and very low customer return rates. we have excellent uptime very high reliability and very low customer return rates Helping us drive that is our technology behind the scenes. helping us drive that is our technology behind the scenes We do advanced remote management, predictive maintenance, and a lot of data analytics. we do advanced remote management predictive maintenance and a lot of data analytics We designed our systems around one principle, and that's why we like to think of kiosks like Mars rovers. We build these things, you send them into space, and you can never touch them again. We do everything we can remotely. We even design them to be self-healing. If they lose power, they lose cell connectivity, they can heal themselves. They can continue to talk to the mothership, serve our customer. That's what's helped us, along with our 250 people out in the field, to maintain 99% uptime. Today, we troubleshoot over 90% of our problems without a customer or a store even knowing. We track every single touch of every single screen on every single machine 24/7. We generate 4.5 million events per day, and we use that data to improve our customer experience and to improve our reliability. We designed our systems around one principle, and that's why we like to think of kiosks like Mars rovers. we designed our systems around one principle and that's why we like to think of kiosks like mars rovers We build these things, you send them into space, and you can never touch them again. we build these things you send them into space and you can never touch them again We do everything we can remotely. we do everything we can remotely We even design them to be self-healing. we even design them to be self-healing If they lose power, they lose cell connectivity, they can heal themselves. if they lose power they lose cell connectivity they can heal themselves They can continue to talk to the mothership, serve our customer. they can continue to talk to the mothership serve our customer That's what's helped us, along with our 250 people out in the field, to maintain 99% uptime. that's what's helped us along with our 250 people out in the field to maintain 99% uptime Today, we troubleshoot over 90% of our problems without a customer or a store even knowing. today we troubleshoot over 90% of our problems without a customer or a store even knowing We track every single touch of every single screen on every single machine 24/7. we track every single touch of every single screen on every single machine 24/7 We generate 4.5 million events per day, and we use that data to improve our customer experience and to improve our reliability. we generate 4.5 million events per day and we use that data to improve our customer experience and to improve our reliability Let's talk about the newest version of our MinuteKey 3.5. This one is opening up four new growth opportunities for us. The first is auto keys, not only the traditional keys, but also transponders and smartphones. We have over 1,200 auto keys in our catalog today, and we're constantly growing our coverage on a monthly basis. We also are offering a DIY dongle for our customers to do the programming themselves if they wish. It's about the size of this clicker here. You can use this thing paired with a smartphone to program it to your car. Exciting option for DIY. Next is Endless Aisle. This has really been fantastic for us. This gives our customer access to our entire catalog of keys regardless of where they are. Let's talk about the newest version of our MinuteKey 3.5. let's talk about the newest version of our minutekey 3.5 This one is opening up four new growth opportunities for us. this one is opening up four new growth opportunities for us The first is auto keys, not only the traditional keys, but also transponders and smartphones. the first is auto keys not only the traditional keys but also transponders and smartphones We have over 1,200 auto keys in our catalog today, and we're constantly growing our coverage on a monthly basis. we have over 1,200 auto keys in our catalog today and we're constantly growing our coverage on a monthly basis We also are offering a DIY dongle for our customers to do the programming themselves if they wish. we also are offering a diy dongle for our customers to do the programming themselves if they wish It's about the size of this clicker here. it's about the size of this clicker here You can use this thing paired with a smartphone to program it to your car. you can use this thing paired with a smartphone to program it to your car Exciting option for DIY. exciting option for diy Next is Endless Aisle. next is endless aisle This has really been fantastic for us. this has really been fantastic for us This gives our customer access to our entire catalog of keys regardless of where they are. this gives our customer access to our entire catalog of keys regardless of where they are For example, if we don't have a key at the kiosk available to them, we can scan, we can cut and ship it to them directly from Tempe within 24 hours. If you happen to be a Cincinnati Bengals fan or Ohio State fan living elsewhere in the U.S., we can get you that key sent to you in 24 hours. Although we still have 1,000 of these things to put out, we're already doing 18,000 orders per month of Endless Aisle. It's a big success for the old home and office key. RFID is our number three capability here. We've got 90% coverage of this market. It's a pretty cool piece of engineering. You simply scan your RFID fob at the machine. We dispense it fully programmed and packaged. For example, if we don't have a key at the kiosk available to them, we can scan, we can cut and ship it to them directly from Tempe within 24 hours. for example if we don't have a key at the kiosk available to them we can scan we can cut and ship it to them directly from tempe within 24 hours If you happen to be a Cincinnati Bengals fan or Ohio State fan living elsewhere in the U.S., we can get you that key sent to you in 24 hours. if you happen to be a cincinnati bengals fan or ohio state fan living elsewhere in the u.s we can get you that key sent to you in 24 hours Although we still have 1,000 of these things to put out, we're already doing 18,000 orders per month of Endless Aisle. although we still have 1,000 of these things to put out we're already doing 18,000 orders per month of endless aisle It's a big success for the old home and office key. it's a big success for the old home and office key RFID is our number three capability here. rfid is our number three capability here We've got 90% coverage of this market. we've got 90% coverage of this market It's a pretty cool piece of engineering. it's a pretty cool piece of engineering You simply scan your RFID fob at the machine. you simply scan your rfid fob at the machine We dispense it fully programmed and packaged. we dispense it fully programmed and packaged You'll get an opportunity to see it firsthand over here. At lunchtime we do a demo. Last but not least, our content management system. We can deploy ads to the kiosks, not only for our own services, but for others, sort of paid advertising. Now comes the exciting part. We talked about the auto keys. This new platform we get to leverage into this new TAM for us. It's a $250 million market, which we have less than 10% today. We are confident we can take it to 30%. Let me tell you why. First, we've been in the auto business for a long time. We have a retail program with one of our largest partners, and we've been doing it for over 10 years. You'll get an opportunity to see it firsthand over here. you'll get an opportunity to see it firsthand over here At lunchtime we do a demo. at lunchtime we do a demo Last but not least, our content management system. last but not least our content management system We can deploy ads to the kiosks, not only for our own services, but for others, sort of paid advertising. we can deploy ads to the kiosks not only for our own services but for others sort of paid advertising Now comes the exciting part. now comes the exciting part We talked about the auto keys. we talked about the auto keys This new platform we get to leverage into this new TAM for us. this new platform we get to leverage into this new tam for us It's a $250 million market, which we have less than 10% today. it's a $250 million market which we have less than 10% today We are confident we can take it to 30%. we are confident we can take it to 30% Let me tell you why. let me tell you why First, we've been in the auto business for a long time. first we've been in the auto business for a long time We have a retail program with one of our largest partners, and we've been doing it for over 10 years. we have a retail program with one of our largest partners and we've been doing it for over 10 years The catalyst here is we get to take that knowledge and experience of the retail program and combine it with the convenience of our kiosk in 5,000 new locations to drive this business. The second reason we're confident is this market is terribly underserved, and we know there's a huge need. Think about locksmiths. Think about dealerships. Right? These are painful experiences and very expensive. I have my own personal experience from several years ago. My daughter turned 16. I gave her my used SUV. Unfortunately, I only had one key for it. Well, come Saturday morning, about three minutes later, she's panicking. She's late for a soccer game. She can't find the key. She blocked me in to the garage, so mom gets to take her to the game. Dad has to stay behind and look for a key. The catalyst here is we get to take that knowledge and experience of the retail program and combine it with the convenience of our kiosk in 5,000 new locations to drive this business. the catalyst here is we get to take that knowledge and experience of the retail program and combine it with the convenience of our kiosk in 5,000 new locations to drive this business The second reason we're confident is this market is terribly underserved, and we know there's a huge need. the second reason we're confident is this market is terribly underserved and we know there's a huge need Think about locksmiths. think about locksmiths Think about dealerships. think about dealerships Right? right These are painful experiences and very expensive. these are painful experiences and very expensive I have my own personal experience from several years ago. i have my own personal experience from several years ago My daughter turned 16. my daughter turned 16 I gave her my used SUV. i gave her my used suv Unfortunately, I only had one key for it. unfortunately i only had one key for it Well, come Saturday morning, about three minutes later, she's panicking. well come saturday morning about three minutes later she's panicking She's late for a soccer game. she's late for a soccer game She can't find the key. she can't find the key She blocked me in to the garage, so mom gets to take her to the game. she blocked me in to the garage so mom gets to take her to the game Dad has to stay behind and look for a key. dad has to stay behind and look for a key Long story short, I looked all weekend for this thing along with the family, and we never found it. Come Monday morning, I have to go to work. We had to tow that thing to the dealership. I contact the dealership. They say, "Oh, it's gonna be probably Thursday before we can get it to you. We've got to order a special order this thing. We gotta look up the VIN. We gotta program it, cut it, et cetera." They were right. Thursday, I go pick it up. Guess what the bill was? Over $1,100. Guys, the Blue Book on this car was $2,400. Right? Tell me I was a happy customer. Bottom line, there is a huge need for this, and we have an excellent solution. You can do a car key at our kiosk in less than five minutes. Long story short, I looked all weekend for this thing along with the family, and we never found it. long story short i looked all weekend for this thing along with the family and we never found it Come Monday morning, I have to go to work. come monday morning i have to go to work We had to tow that thing to the dealership. we had to tow that thing to the dealership I contact the dealership. i contact the dealership They say, "Oh, it's gonna be probably Thursday before we can get it to you. they say "oh it's gonna be probably thursday before we can get it to you We've got to order a special order this thing. we've got to order a special order this thing We gotta look up the VIN. we gotta look up the vin We gotta program it, cut it, et cetera." They were right. we gotta program it cut it et cetera." they were right Thursday, I go pick it up. thursday i go pick it up Guess what the bill was? guess what the bill was Over $1,100. over $1,100 Guys, the Blue Book on this car was $2,400. guys the blue book on this car was $2,400 Right? right Tell me I was a happy customer. tell me i was a happy customer Bottom line, there is a huge need for this, and we have an excellent solution. bottom line there is a huge need for this and we have an excellent solution You can do a car key at our kiosk in less than five minutes. you can do a car key at our kiosk in less than five minutes Up to 60% dealership savings and over 91% of our customers have said they would use us again or refer us to others. Let's talk about how we see the financials moving forward. We have spent the last three years investing significant capital, as many of you know, in this platform. We are now shifting our focus to driving excellent returns and free cash flow. Our goal is to generate steady, predictable revenue growth with a gross margin and EBITDA margin that you see here on this page. We're gonna continue to leverage our 3.5 technology for the home and office market with these newer offerings. Where we're going is auto, and we're gonna do for auto keys what we've done for home and office keys. Up to 60% dealership savings and over 91% of our customers have said they would use us again or refer us to others. up to 60% dealership savings and over 91% of our customers have said they would use us again or refer us to others Let's talk about how we see the financials moving forward. let's talk about how we see the financials moving forward We have spent the last three years investing significant capital, as many of you know, in this platform. we have spent the last three years investing significant capital as many of you know in this platform We are now shifting our focus to driving excellent returns and free cash flow. we are now shifting our focus to driving excellent returns and free cash flow Our goal is to generate steady, predictable revenue growth with a gross margin and EBITDA margin that you see here on this page. our goal is to generate steady predictable revenue growth with a gross margin and ebitda margin that you see here on this page We're gonna continue to leverage our 3.5 technology for the home and office market with these newer offerings. we're gonna continue to leverage our 3.5 technology for the home and office market with these newer offerings Where we're going is auto, and we're gonna do for auto keys what we've done for home and office keys. where we're going is auto and we're gonna do for auto keys what we've done for home and office keys I'm confident we can do that because we've done it with home office keys in the same way, right? Quality product, convenience, great pricing, and a 100% money-back guarantee. With that, thank you again, and we'll hand it over to Bob Davis. I'm confident we can do that because we've done it with home office keys in the same way, right? i'm confident we can do that because we've done it with home office keys in the same way right Quality product, convenience, great pricing, and a 100% money-back guarantee. quality product convenience great pricing and a 100% money-back guarantee With that, thank you again, and we'll hand it over to Bob Davis. with that thank you again and we'll hand it over to bob davis

Speaker 4: Thank you, sir. Thank you, sir. thank you sir Good morning. First, let me thank all of you for joining us today and learning more about Hillman and our global supply chain. I'm Bob Davis. I'm the Executive Vice President of Global Supply Chain. Some of you may know me as your Uber driver from last night. I appreciate the five stars that you guys gave me for getting you back to the hotel safe. Just a little bit about me. I'm a veteran of the U.S. Navy. I spent 12 years at Target Corporation, 16 years at Home Depot, all in supply chain, and I'm on my fifth year here at Hillman and loving it here. I know Jon Michael Adinolfi spoke a little bit about our margin expansion today. Good morning. good morning First, let me thank all of you for joining us today and learning more about Hillman and our global supply chain. first let me thank all of you for joining us today and learning more about hillman and our global supply chain I'm Bob Davis. i'm bob davis I'm the Executive Vice President of Global Supply Chain. i'm the executive vice president of global supply chain Some of you may know me as your Uber driver from last night. some of you may know me as your uber driver from last night I appreciate the five stars that you guys gave me for getting you back to the hotel safe. i appreciate the five stars that you guys gave me for getting you back to the hotel safe Just a little bit about me. just a little bit about me I'm a veteran of the U.S. i'm a veteran of the u.s Navy. navy I spent 12 years at Target Corporation, 16 years at Home Depot, all in supply chain, and I'm on my fifth year here at Hillman and loving it here. i spent 12 years at target corporation 16 years at home depot all in supply chain and i'm on my fifth year here at hillman and loving it here I know Jon Michael Adinolfi spoke a little bit about our margin expansion today. i know jon michael adinolfi spoke a little bit about our margin expansion today You know, those margin gains are directly tied to our structural supply chain actions here at Hillman, and we built these over the years rather than just temporary market forces. Hillman owns its core. We're gonna spend some time talking about that this morning. We've constructed a structural moat here at Hillman that is a direct driver of the bottom line. The moat really begins with our integrated supply chain. So, let's jump into it. Basically, what this tells you is we own it from end to end. We own it from the sourcing piece of it that we work directly with the factories all across the globe. We own it from planning and procurement, the ocean transit, customs clearance, dray to our DCs, and the final mile delivery from our distribution centers to our customers. We own the whole process from end to end. You know, those margin gains are directly tied to our structural supply chain actions here at Hillman, and we built these over the years rather than just temporary market forces. you know those margin gains are directly tied to our structural supply chain actions here at hillman and we built these over the years rather than just temporary market forces Hillman owns its core. hillman owns its core We're gonna spend some time talking about that this morning. we're gonna spend some time talking about that this morning We've constructed a structural moat here at Hillman that is a direct driver of the bottom line. we've constructed a structural moat here at hillman that is a direct driver of the bottom line The moat really begins with our integrated supply chain. the moat really begins with our integrated supply chain So, let's jump into it. so let's jump into it Basically, what this tells you is we own it from end to end. basically what this tells you is we own it from end to end We own it from the sourcing piece of it that we work directly with the factories all across the globe. we own it from the sourcing piece of it that we work directly with the factories all across the globe We own it from planning and procurement, the ocean transit, customs clearance, dray to our DCs, and the final mile delivery from our distribution centers to our customers. we own it from planning and procurement the ocean transit customs clearance dray to our dcs and the final mile delivery from our distribution centers to our customers We own the whole process from end to end. we own the whole process from end to end You're gonna see down at the bottom, it talks a little bit about dual faucet. I'm gonna get into that a little bit more on the next slide, and really enjoy talking about that because that's really where we win out there. The end-to-end logistics, when we look at this, we own this through our in-house team. When I say that we own it. We contract directly with our ocean carriers. We don't use a brokerage service for that. We contract directly with our freight agents. We contract directly with our LTL and our small package providers. We have an entire logistics team that does that for us. We also have our own booking team that handles our bookings across the globe, located in Vietnam. You're gonna see down at the bottom, it talks a little bit about dual faucet. you're gonna see down at the bottom it talks a little bit about dual faucet I'm gonna get into that a little bit more on the next slide, and really enjoy talking about that because that's really where we win out there. i'm gonna get into that a little bit more on the next slide and really enjoy talking about that because that's really where we win out there The end-to-end logistics, when we look at this, we own this through our in-house team. the end-to-end logistics when we look at this we own this through our in-house team When I say that we own it. when i say that we own it We contract directly with our ocean carriers. we contract directly with our ocean carriers We don't use a brokerage service for that. we don't use a brokerage service for that We contract directly with our freight agents. we contract directly with our freight agents We contract directly with our LTL and our small package providers. we contract directly with our ltl and our small package providers We have an entire logistics team that does that for us. we have an entire logistics team that does that for us We also have our own booking team that handles our bookings across the globe, located in Vietnam. we also have our own booking team that handles our bookings across the globe located in vietnam On the customs and trade side, we've got two licensed customs brokers on staff, and we needed them this year, that's for sure. When you look at that, they keep us compliant, you know, within the current model changes in customs that we've seen over the past 12 months. Finally, looking at our optimized distribution network, what that really means is having the DCs in the right location. We don't do this by accident. It's about keeping our DCs close to our customers so that we can take advantage of that final mile delivery. As everyone knows, in distribution, freight is the most expensive piece of it. Any way that we can reduce that gives us an advantage over the competition. Let's talk a little bit about dual faucet. On the customs and trade side, we've got two licensed customs brokers on staff, and we needed them this year, that's for sure. on the customs and trade side we've got two licensed customs brokers on staff and we needed them this year that's for sure When you look at that, they keep us compliant, you know, within the current model changes in customs that we've seen over the past 12 months. when you look at that they keep us compliant you know within the current model changes in customs that we've seen over the past 12 months Finally, looking at our optimized distribution network, what that really means is having the DCs in the right location. finally looking at our optimized distribution network what that really means is having the dcs in the right location We don't do this by accident. we don't do this by accident It's about keeping our DCs close to our customers so that we can take advantage of that final mile delivery. it's about keeping our dcs close to our customers so that we can take advantage of that final mile delivery As everyone knows, in distribution, freight is the most expensive piece of it. as everyone knows in distribution freight is the most expensive piece of it Any way that we can reduce that gives us an advantage over the competition. any way that we can reduce that gives us an advantage over the competition Let's talk a little bit about dual faucet. let's talk a little bit about dual faucet What this really means to us is years ago in sourcing, all the focus was on FOB costing. How much does it actually cost to buy the product at origin? Today, that's not what's important. Today, what's important is what is the landed cost of the product. With tariffs, with duties, with freight costs, all these things are important to us. We look at it in its entirety, and that's how we solve for it. When you look at the dual faucet, you know, basically it's pretty simple. I've got a faucet on over here in one country of origin with a particular vendor, or I may have multi sources within that country that I've got a faucet on. Over here in another country, I've got that faucet as a trickle. In other words, I've already qualified the supplier there. What this really means to us is years ago in sourcing, all the focus was on FOB costing. what this really means to us is years ago in sourcing all the focus was on fob costing How much does it actually cost to buy the product at origin? how much does it actually cost to buy the product at origin Today, that's not what's important. today that's not what's important Today, what's important is what is the landed cost of the product. today what's important is what is the landed cost of the product With tariffs, with duties, with freight costs, all these things are important to us. with tariffs with duties with freight costs all these things are important to us We look at it in its entirety, and that's how we solve for it. we look at it in its entirety and that's how we solve for it When you look at the dual faucet, you know, basically it's pretty simple. when you look at the dual faucet you know basically it's pretty simple I've got a faucet on over here in one country of origin with a particular vendor, or I may have multi sources within that country that I've got a faucet on. i've got a faucet on over here in one country of origin with a particular vendor or i may have multi sources within that country that i've got a faucet on Over here in another country, I've got that faucet as a trickle. over here in another country i've got that faucet as a trickle In other words, I've already qualified the supplier there. in other words i've already qualified the supplier there If something happens that impacts capacity, you know, it could be a geopolitical event, it could be a tariff, it could be, you know, some other cause. I can simply change the plumbing. I can turn the faucet on here, and I can dial down the faucet over here. To give you a real-world example of that occurred this past year with everything going on with tariffs, we are a pretty large seller of umbrellas. If you've ever been out in one of our major retailers and a thunderstorm broke loose, you're going to find a box of our umbrellas right there by the front door, you know, 'cause it's very convenient to pick that up and be able to make it out to your car. Well, we produced all of our umbrellas out of China. If something happens that impacts capacity, you know, it could be a geopolitical event, it could be a tariff, it could be, you know, some other cause. if something happens that impacts capacity you know it could be a geopolitical event it could be a tariff it could be you know some other cause I can simply change the plumbing. i can simply change the plumbing I can turn the faucet on here, and I can dial down the faucet over here. i can turn the faucet on here and i can dial down the faucet over here To give you a real- world example of that occurred this past year with everything going on with tariffs, we are a pretty large seller of umbrellas. to give you a real- world example of that occurred this past year with everything going on with tariffs we are a pretty large seller of umbrellas If you've ever been out in one of our major retailers and a thunderstorm broke loose, you're going to find a box of our umbrellas right there by the front door, you know, 'cause it's very convenient to pick that up and be able to make it out to your car. if you've ever been out in one of our major retailers and a thunderstorm broke loose you're going to find a box of our umbrellas right there by the front door you know 'cause it's very convenient to pick that up and be able to make it out to your car Well, we produced all of our umbrellas out of China. well we produced all of our umbrellas out of china When Liberation Day occurred, tariffs came in, and within about four days, they shot up to about 100% in China. Well, that impacted our cost on umbrellas. We were easily able to shut down that tap, open up a tap in India, where there's a major manufacturer there, and be able to take advantage of that reduced landed cost and be able to do that quickly. What happened next? Tariffs went up in India; tariffs came down in China. We were able to shift again right back to China just by changing where we were cutting the POs to, again, to take advantage of that landed cost. Tariffs came back down in India, and due to their FOB cost, we were able to shift back again. When Liberation Day occurred, tariffs came in, and within about four days, they shot up to about 100% in China. when liberation day occurred tariffs came in and within about four days they shot up to about 100% in china Well, that impacted our cost on umbrellas. well that impacted our cost on umbrellas We were easily able to shut down that tap, open up a tap in India, where there's a major manufacturer there, and be able to take advantage of that reduced landed cost and be able to do that quickly. we were easily able to shut down that tap open up a tap in india where there's a major manufacturer there and be able to take advantage of that reduced landed cost and be able to do that quickly What happened next? what happened next Tariffs went up in India; tariffs came down in China. tariffs went up in india tariffs came down in china We were able to shift again right back to China just by changing where we were cutting the POs to, again, to take advantage of that landed cost. we were able to shift again right back to china just by changing where we were cutting the pos to again to take advantage of that landed cost Tariffs came back down in India, and due to their FOB cost, we were able to shift back again. tariffs came back down in india and due to their fob cost we were able to shift back again That gives us a unique advantage of having what we call our dual faucet strategy, and we've worked very hard on that. We've done that all over Southeast Asia with our partners there. One of the things that you can see when you look at the graphs up here from 2018 to 2025, and this is really talking more about the dependency that may exist from a China perspective. We went from 49% of their product sourced out of China to 32% of our product sourced out of China. What's even more important is if you look over to year ending this year, our capabilities, and I'm going to reiterate this, but our capabilities is we could reduce our sourcing impact coming out of China down to 10%. What I want to stress, though, is that is a capability. That gives us a unique advantage of having what we call our dual faucet strategy, and we've worked very hard on that. that gives us a unique advantage of having what we call our dual faucet strategy and we've worked very hard on that We've done that all over Southeast Asia with our partners there. we've done that all over southeast asia with our partners there One of the things that you can see when you look at the graphs up here from 2018 to 2025, and this is really talking more about the dependency that may exist from a China perspective. one of the things that you can see when you look at the graphs up here from 2018 to 2025 and this is really talking more about the dependency that may exist from a china perspective We went from 49% of their product sourced out of China to 32% of our product sourced out of China. we went from 49% of their product sourced out of china to 32% of our product sourced out of china What's even more important is if you look over to year ending this year, our capabilities, and I'm going to reiterate this, but our capabilities is we could reduce our sourcing impact coming out of China down to 10%. what's even more important is if you look over to year ending this year our capabilities and i'm going to reiterate this but our capabilities is we could reduce our sourcing impact coming out of china down to 10% What I want to stress, though, is that is a capability. what i want to stress though is that is a capability It's not a mandate. We're not going to box ourselves into a corner, right? Wherever we can provide a quality product at the most competitive price to give Hillman and our customers a competitive advantage, that's where we're going to source from. Again, not a mandate. We have that capability, but I can easily move that volume across. All that's really coming through the partnerships that we've developed over the years with our suppliers. Jon Michael mentioned earlier in his presentation, you know, about the long-term partnerships we have with suppliers. Some of our suppliers we've been doing business with for over 60 years. That's very important to us because when we went down this road and said, "This is going to be very important to us to be able to have this dual sourcing strategy," it's very difficult to bring new suppliers on board. It's not a mandate. it's not a mandate We're not going to box ourselves into a corner, right? we're not going to box ourselves into a corner right Wherever we can provide a quality product at the most competitive price to give Hillman and our customers a competitive advantage, that's where we're going to source from. wherever we can provide a quality product at the most competitive price to give hillman and our customers a competitive advantage that's where we're going to source from Again, not a mandate. again not a mandate We have that capability, but I can easily move that volume across. we have that capability but i can easily move that volume across All that's really coming through the partnerships that we've developed over the years with our suppliers. all that's really coming through the partnerships that we've developed over the years with our suppliers Jon Michael mentioned earlier in his presentation, you know, about the long-term partnerships we have with suppliers. jon michael mentioned earlier in his presentation you know about the long-term partnerships we have with suppliers Some of our suppliers we've been doing business with for over 60 years. some of our suppliers we've been doing business with for over 60 years That's very important to us because when we went down this road and said, "This is going to be very important to us to be able to have this dual sourcing strategy," it's very difficult to bring new suppliers on board. that's very important to us because when we went down this road and said "this is going to be very important to us to be able to have this dual sourcing strategy," it's very difficult to bring new suppliers on board You got to teach them about your product. You got to qualify them as a supplier. You know, several audits that these suppliers have to go through to meet the requirements of our customers. It's about the product. The product has to be qualified. Does it meet our specifications consistently from a quality perspective? Can they meet our packaging requirements? Can they ship on time? In doing that, the easiest way to do that is you take partners that you get long relationships with. You work with them to open factories in other countries. Over the past year and a half, we've been successful in working with long-term suppliers and opened factory, over 45 factories in other Southeast Asian countries. That gives us that quick ability to shift. You got to teach them about your product. you got to teach them about your product You got to qualify them as a supplier. you got to qualify them as a supplier You know, several audits that these suppliers have to go through to meet the requirements of our customers. you know several audits that these suppliers have to go through to meet the requirements of our customers It's about the product. it's about the product The product has to be qualified. the product has to be qualified Does it meet our specifications consistently from a quality perspective? does it meet our specifications consistently from a quality perspective Can they meet our packaging requirements? can they meet our packaging requirements Can they ship on time? can they ship on time In doing that, the easiest way to do that is you take partners that you get long relationships with. in doing that the easiest way to do that is you take partners that you get long relationships with You work with them to open factories in other countries. you work with them to open factories in other countries Over the past year and a half, we've been successful in working with long-term suppliers and opened factory, over 45 factories in other Southeast Asian countries. over the past year and a half we've been successful in working with long-term suppliers and opened factory over 45 factories in other southeast asian countries That gives us that quick ability to shift. that gives us that quick ability to shift What that means for us is they already know our product, they already know our business, they already know our packaging. We already know them as far as being able to qualify them. We can bring them up quickly. We'll be opening another eight factories this year in those partnerships with those suppliers. When you have to go out and do that with a brand-new supplier, what happens to you is you have to go through that long, lengthy process of getting them on board. More importantly, what happens to you is your first PO that you cut with a brand-new supplier, your lead time from PO to ship date is gonna be roughly 150 days. That's what the average is. Our partners that we work with day to day, they can, from a PO to ship date, 45 days. What that means for us is they already know our product, they already know our business, they already know our packaging. what that means for us is they already know our product they already know our business they already know our packaging We already know them as far as being able to qualify them. we already know them as far as being able to qualify them We can bring them up quickly. we can bring them up quickly We'll be opening another eight factories this year in those partnerships with those suppliers. we'll be opening another eight factories this year in those partnerships with those suppliers When you have to go out and do that with a brand- new supplier, what happens to you is you have to go through that long, lengthy process of getting them on board. when you have to go out and do that with a brand- new supplier what happens to you is you have to go through that long lengthy process of getting them on board More importantly, what happens to you is your first PO that you cut with a brand- new supplier, your lead time from PO to ship date is gonna be roughly 150 days. more importantly what happens to you is your first po that you cut with a brand- new supplier your lead time from po to ship date is gonna be roughly 150 days That's what the average is. that's what the average is Our partners that we work with day to day, they can, from a PO to ship date, 45 days. our partners that we work with day to day they can from a po to ship date 45 days You think of that gap. That's a lot of inventory that I have to carry, which is not good for our cash flow, right? By keeping these suppliers close to us, working with them, we improve our lead time, which means I have to hold less inventory, which that's a benefit to our cash flow. Okay, let's talk a little bit about our network design. We have 24 distribution centers across North America. In those 24 distribution centers, 97% of our customers we can reach in two days. 85% we can reach in one day. You know, again, this isn't by accident. We can turn an order in 24 hours. From the time we get the order to the time we ship the order, we can turn that order for them in 24 hours, and we do that at a 98% fill rate. You think of that gap. you think of that gap That's a lot of inventory that I have to carry, which is not good for our cash flow, right? that's a lot of inventory that i have to carry which is not good for our cash flow right By keeping these suppliers close to us, working with them, we improve our lead time, which means I have to hold less inventory, which that's a benefit to our cash flow. by keeping these suppliers close to us working with them we improve our lead time which means i have to hold less inventory which that's a benefit to our cash flow Okay, let's talk a little bit about our network design. okay let's talk a little bit about our network design We have 24 distribution centers across North America. we have 24 distribution centers across north america In those 24 distribution centers, 97% of our customers we can reach in two days. 85% we can reach in one day. in those 24 distribution centers 97% of our customers we can reach in two days 85% we can reach in one day You know, again, this isn't by accident. you know again this isn't by accident We can turn an order in 24 hours. we can turn an order in 24 hours From the time we get the order to the time we ship the order, we can turn that order for them in 24 hours, and we do that at a 98% fill rate. from the time we get the order to the time we ship the order we can turn that order for them in 24 hours and we do that at a 98% fill rate I know, Brett earlier mentioned stickiness. That gives you stickiness for the customer. Where a competitor may come in and offer them something else, it's hard to give up a 98% fill rate and that consistency of receiving their orders to keep the product on their shelf. We're constantly optimizing our network. You know, if you take a recent expansion that we just did in Bakersfield, we added 100,000 sq ft to it. The reason that we did that wasn't really due to capacity in Bakersfield. If we had opportunity for product that we had located in Dallas, that we could move that product closer to our customer by putting it in Bakersfield. That's significant savings to us from a freight cost perspective. Again, freight cost is that number one priority that we look at when we're looking at our distribution network. I know, Brett earlier mentioned stickiness. i know brett earlier mentioned stickiness That gives you stickiness for the customer. that gives you stickiness for the customer Where a competitor may come in and offer them something else, it's hard to give up a 98% fill rate and that consistency of receiving their orders to keep the product on their shelf. where a competitor may come in and offer them something else it's hard to give up a 98% fill rate and that consistency of receiving their orders to keep the product on their shelf We're constantly optimizing our network. we're constantly optimizing our network You know, if you take a recent expansion that we just did in Bakersfield, we added 100,000 sq ft to it. you know if you take a recent expansion that we just did in bakersfield we added 100,000 sq ft to it The reason that we did that wasn't really due to capacity in Bakersfield. the reason that we did that wasn't really due to capacity in bakersfield If we had opportunity for product that we had located in Dallas, that we could move that product closer to our customer by putting it in Bakersfield. if we had opportunity for product that we had located in dallas that we could move that product closer to our customer by putting it in bakersfield That's significant savings to us from a freight cost perspective. that's significant savings to us from a freight cost perspective Again, freight cost is that number one priority that we look at when we're looking at our distribution network. again freight cost is that number one priority that we look at when we're looking at our distribution network That enabled to reduce our cost again by doing that and improved our service levels for that customer. We've done these same things in other DCs as far as expansions. We've applied the same logic in Kansas City, recent optimization that we did in Jacksonville. Again, I'm just gonna remind you, nothing's more expensive in distribution than freight. We keep a very close eye on that. By doing that makes us the most efficient supplier in the aisle for our customers. Let's talk a little bit about building a smarter and faster supply chain. I know it was dark this morning when you came in, and I was hoping it'd be a little bit lighter 'cause you would've noticed off to the right of the interstate, there's a large construction site going on over there. That enabled to reduce our cost again by doing that and improved our service levels for that customer. that enabled to reduce our cost again by doing that and improved our service levels for that customer We've done these same things in other DCs as far as expansions. we've done these same things in other dcs as far as expansions We've applied the same logic in Kansas City, recent optimization that we did in Jacksonville. we've applied the same logic in kansas city recent optimization that we did in jacksonville Again, I'm just gonna remind you, nothing's more expensive in distribution than freight. again i'm just gonna remind you nothing's more expensive in distribution than freight We keep a very close eye on that. we keep a very close eye on that By doing that makes us the most efficient supplier in the aisle for our customers. by doing that makes us the most efficient supplier in the aisle for our customers Let's talk a little bit about building a smarter and faster supply chain. let's talk a little bit about building a smarter and faster supply chain I know it was dark this morning when you came in, and I was hoping it'd be a little bit lighter 'cause you would've noticed off to the right of the interstate, there's a large construction site going on over there. i know it was dark this morning when you came in and i was hoping it'd be a little bit lighter 'cause you would've noticed off to the right of the interstate there's a large construction site going on over there We say this, you know, with a lot of love, but a former zombie mall that we had here in Cincinnati that had been vacant, really an eyesore for the community. We worked close with the local community and a national builder. They acquired that site, and what you're gonna see going up there is a 715,000 sq ft distribution site. We call it our DC of the future. That's going up now. The construction is in process, and we'll see that building up early next year. Now, that'll be a consolidation opportunity for us for multiple facilities that we have in the marketplace. This facility will be fully automated, and it'll be a multipurpose facility. When you think of this, it's gonna be our flagship. Basically, we'll be deploying state-of-the-art systems there. We say this, you know, with a lot of love, but a former zombie mall that we had here in Cincinnati that had been vacant, really an eyesore for the community. we say this you know with a lot of love but a former zombie mall that we had here in cincinnati that had been vacant really an eyesore for the community We worked close with the local community and a national builder. we worked close with the local community and a national builder They acquired that site, and what you're gonna see going up there is a 715,000 sq ft distribution site. they acquired that site and what you're gonna see going up there is a 715,000 sq ft distribution site We call it our DC of the future. we call it our dc of the future That's going up now. that's going up now The construction is in process, and we'll see that building up early next year. the construction is in process and we'll see that building up early next year Now, that'll be a consolidation opportunity for us for multiple facilities that we have in the marketplace. now that'll be a consolidation opportunity for us for multiple facilities that we have in the marketplace This facility will be fully automated, and it'll be a multipurpose facility. this facility will be fully automated and it'll be a multipurpose facility When you think of this, it's gonna be our flagship. when you think of this it's gonna be our flagship Basically, we'll be deploying state-of-the-art systems there. basically we'll be deploying state-of-the-art systems there It'll include goods-to-person. It'll include auto pallet retrieval and storage, autonomous vehicles, top-tier transportation management system. While all that will live here physically, it'll benefit the entire network. You know, we invest in our DCs based on what the needs of our customers are. The investment in automation and robotics in the facilities are very attractive upgrade for us. That automation will drive efficiencies for the business. That's how they pay for themselves. You'll have the opportunity today to actually walk one of our facilities, which is the Carillon for those of you that are joining the tours. My hat's off to the Hillman family 'cause 25 years ago, they built a facility that was state-of-the-art at that time, and that launched their business forward, which is why we're doing the same thing today. The only problem is it's 25 years old. It'll include goods-to-person. it'll include goods-to-person It'll include auto pallet retrieval and storage, autonomous vehicles, top-tier transportation management system. it'll include auto pallet retrieval and storage autonomous vehicles top-tier transportation management system While all that will live here physically, it'll benefit the entire network. while all that will live here physically it'll benefit the entire network You know, we invest in our DCs based on what the needs of our customers are. you know we invest in our dcs based on what the needs of our customers are The investment in automation and robotics in the facilities are very attractive upgrade for us. the investment in automation and robotics in the facilities are very attractive upgrade for us That automation will drive efficiencies for the business. that automation will drive efficiencies for the business That's how they pay for themselves. that's how they pay for themselves You'll have the opportunity today to actually walk one of our facilities, which is the Carillon for those of you that are joining the tours. you'll have the opportunity today to actually walk one of our facilities which is the carillon for those of you that are joining the tours My hat's off to the Hillman family 'cause 25 years ago, they built a facility that was state-of-the-art at that time, and that launched their business forward, which is why we're doing the same thing today. my hat's off to the hillman family 'cause 25 years ago they built a facility that was state-of-the-art at that time and that launched their business forward which is why we're doing the same thing today The only problem is it's 25 years old. the only problem is it's 25 years old You know, the automation's antiquated. You can't keep up with it anymore, and it's time to evolve and move into the future. I think you'll be quite impressed with the facility when you have a chance to walk it today. The biggest win is we get to consolidate multiple aging facilities into this one. It's gonna be a modern hub. It'll be located right here in Cincinnati, which is where the majority of our volume ships out of to a lot of our current customers. Cincinnati's been our home for over 60 years. It gives us an advantage as well, since we're consolidating multiple facilities into this, that I don't have to go out and rehire employees. We're only two miles down the road from where we'll be moving them from. All of that expense goes away. You know, the automation's antiquated. you know the automation's antiquated You can't keep up with it anymore, and it's time to evolve and move into the future. you can't keep up with it anymore and it's time to evolve and move into the future I think you'll be quite impressed with the facility when you have a chance to walk it today. i think you'll be quite impressed with the facility when you have a chance to walk it today The biggest win is we get to consolidate multiple aging facilities into this one. the biggest win is we get to consolidate multiple aging facilities into this one It's gonna be a modern hub. it's gonna be a modern hub It'll be located right here in Cincinnati, which is where the majority of our volume ships out of to a lot of our current customers. it'll be located right here in cincinnati which is where the majority of our volume ships out of to a lot of our current customers Cincinnati's been our home for over 60 years. cincinnati's been our home for over 60 years It gives us an advantage as well, since we're consolidating multiple facilities into this, that I don't have to go out and rehire employees. it gives us an advantage as well since we're consolidating multiple facilities into this that i don't have to go out and rehire employees We're only two miles down the road from where we'll be moving them from. we're only two miles down the road from where we'll be moving them from All of that expense goes away. all of that expense goes away We get to gain the experience that's valuable to us here. That's a big win for us. This facility will be a true omnichannel facility. We can service the pro out of it. We can service retail out of it. We can service e-commerce out of it. We can do it all out of this facility. We're very excited about this facility coming online. Okay, this is where we're gonna bring it all together. Everything I've talked about today, the integrated operations, the dual faucet sourcing, the automation in Cincinnati, it all culminates in Hillman being ready to take care of our customers. The smarter, faster supply chain, the DC of the future, it's gonna give us scale or scale and more efficiency. The result of that you can see right here. We get to gain the experience that's valuable to us here. we get to gain the experience that's valuable to us here That's a big win for us. that's a big win for us This facility will be a true omnichannel facility. this facility will be a true omnichannel facility We can service the pro out of it. we can service the pro out of it We can service retail out of it. we can service retail out of it We can service e-commerce out of it. we can service e-commerce out of it We can do it all out of this facility. we can do it all out of this facility We're very excited about this facility coming online. we're very excited about this facility coming online Okay, this is where we're gonna bring it all together. okay this is where we're gonna bring it all together Everything I've talked about today, the integrated operations, the dual faucet sourcing, the automation in Cincinnati, it all culminates in Hillman being ready to take care of our customers. everything i've talked about today the integrated operations the dual faucet sourcing the automation in cincinnati it all culminates in hillman being ready to take care of our customers The smarter, faster supply chain, the DC of the future, it's gonna give us scale or scale and more efficiency. the smarter faster supply chain the dc of the future it's gonna give us scale or scale and more efficiency The result of that you can see right here. the result of that you can see right here If you look at 2025, 49% gross margin, that's up 600 basis points. 100% free cash flow conversion, that's our average from 2022 to 2025. These results speak to the power of our integrated approach. At Hillman, our global supply chain operation gives us a structural advantage over our competition. We don't just hope for stability, we engineered it. Our supply chain is a profit engine. If you look at 2025, 49% gross margin, that's up 600 basis points. 100% free cash flow conversion, that's our average from 2022 to 2025. if you look at 2025 49% gross margin that's up 600 basis points 100% free cash flow conversion that's our average from 2022 to 2025 These results speak to the power of our integrated approach. these results speak to the power of our integrated approach At Hillman, our global supply chain operation gives us a structural advantage over our competition. at hillman our global supply chain operation gives us a structural advantage over our competition We don't just hope for stability, we engineered it. we don't just hope for stability we engineered it Our supply chain is a profit engine. our supply chain is a profit engine

Speaker 17: It is the reason we're set to continue to outperform in the market. I'm gonna turn it over to our next presenter now, Aaron Parker. Thank you very much, and I'll be around for Q&A later. It is the reason we're set to continue to outperform in the market. it is the reason we're set to continue to outperform in the market I'm gonna turn it over to our next presenter now, Aaron Parker. i'm gonna turn it over to our next presenter now aaron parker Thank you very much, and I'll be around for Q&A later. thank you very much and i'll be around for q&a later

Speaker 1: Thanks, Bob. Good morning. I'm Aaron Parker, and I serve as the Chief People Officer. Now, don't worry, this isn't a training session. No icebreakers or personality assessments today. I'm here to talk about our talent and culture that gives us a competitive advantage. Prior to Hillman, I held HR leadership roles in the banking and retail industries. I'm entering my sixth year at Hillman, and from my experience, what sets Hillman apart is that we recognize our greatest impact starts with the people in the field who directly serve our customers. Far today, you have heard about our strategic blueprint to own the core and expand categories. Delivering on this strategy starts with a strong foundation, one rooted in service, and as we have shifted and became a public company in 2021, we've also streamlined our organization and improved SG&A discipline. Thanks, Bob. thanks bob Good morning. good morning I'm Aaron Parker, and I serve as the Chief People Officer. i'm aaron parker and i serve as the chief people officer Now, don't worry, this isn't a training session. now don't worry this isn't a training session No icebreakers or personality assessments today. no icebreakers or personality assessments today I'm here to talk about our talent and culture that gives us a competitive advantage. i'm here to talk about our talent and culture that gives us a competitive advantage Prior to Hillman, I held HR leadership roles in the banking and retail industries. prior to hillman i held hr leadership roles in the banking and retail industries I'm entering my sixth year at Hillman, and from my experience, what sets Hillman apart is that we recognize our greatest impact starts with the people in the field who directly serve our customers. i'm entering my sixth year at hillman and from my experience what sets hillman apart is that we recognize our greatest impact starts with the people in the field who directly serve our customers Far today, you have heard about our strategic blueprint to own the core and expand categories. far today you have heard about our strategic blueprint to own the core and expand categories Delivering on this strategy starts with a strong foundation, one rooted in service, and as we have shifted and became a public company in 2021, we've also streamlined our organization and improved SG&A discipline. delivering on this strategy starts with a strong foundation one rooted in service and as we have shifted and became a public company in 2021 we've also streamlined our organization and improved sg&a discipline Recently, we refreshed our vision, mission, and values to reflect who we are, where we're going, and what we expect of our employees. JMA mentioned earlier how we are a resilient company. In fact, one of our core values is resilience. It's truly a part of our DNA. Whether navigating the pandemic and most recently, tariffs in 2025, we have shown time after time our business is ready for whatever comes our way. As we focus on strategic growth and building for the future, we have intentionally invested in bringing in talent into our field sales, business development, and Pro leadership teams with a focus on growing now and into the future. Now, the power of our company starts with our people. Brett shared earlier the ways we win. It starts with our 1,200 field sales and service team members. Recently, we refreshed our vision, mission, and values to reflect who we are, where we're going, and what we expect of our employees. recently we refreshed our vision mission and values to reflect who we are where we're going and what we expect of our employees JMA mentioned earlier how we are a resilient company. jma mentioned earlier how we are a resilient company In fact, one of our core values is resilience. in fact one of our core values is resilience It's truly a part of our DNA. it's truly a part of our dna Whether navigating the pandemic and most recently, tariffs in 2025, we have shown time after time our business is ready for whatever comes our way. whether navigating the pandemic and most recently tariffs in 2025 we have shown time after time our business is ready for whatever comes our way As we focus on strategic growth and building for the future, we have intentionally invested in bringing in talent into our field sales, business development, and Pro leadership teams with a focus on growing now and into the future. as we focus on strategic growth and building for the future we have intentionally invested in bringing in talent into our field sales business development and pro leadership teams with a focus on growing now and into the future Now, the power of our company starts with our people. now the power of our company starts with our people Brett shared earlier the ways we win. brett shared earlier the ways we win It starts with our 1,200 field sales and service team members. it starts with our 1,200 field sales and service team members Our focus on safety and retention continues to outperform industry benchmarks with lower incident rates and higher average tenure, which all helps to fuel our strong EBITDA margin performance. We truly believe our people make the difference in giving us the ability to successfully execute our blueprint strategy. Now, as we enter year five of being publicly traded, we are excited to share we are being recognized as a USA TODAY Top Workplaces. Only 100 organizations with 2,500+ employees will be recognized with this award. Last year, 83% of our employees chose to share their experience at Hillman through our survey, which I see as a strong indicator of the engagement and commitment across our workforce. This recognition strengthens our employer brand and helps us further attract and retain high-quality talent. Ultimately, this recognition validates that our culture is a competitive advantage. Our focus on safety and retention continues to outperform industry benchmarks with lower incident rates and higher average tenure, which all helps to fuel our strong EBITDA margin performance. our focus on safety and retention continues to outperform industry benchmarks with lower incident rates and higher average tenure which all helps to fuel our strong ebitda margin performance We truly believe our people make the difference in giving us the ability to successfully execute our blueprint strategy. we truly believe our people make the difference in giving us the ability to successfully execute our blueprint strategy Now, as we enter year five of being publicly traded, we are excited to share we are being recognized as a USA TODAY Top Workplaces. now as we enter year five of being publicly traded we are excited to share we are being recognized as a usa today top workplaces Only 100 organizations with 2,500+ employees will be recognized with this award. only 100 organizations with 2,500+ employees will be recognized with this award Last year, 83% of our employees chose to share their experience at Hillman through our survey, which I see as a strong indicator of the engagement and commitment across our workforce. last year 83% of our employees chose to share their experience at hillman through our survey which i see as a strong indicator of the engagement and commitment across our workforce This recognition strengthens our employer brand and helps us further attract and retain high-quality talent. this recognition strengthens our employer brand and helps us further attract and retain high-quality talent Ultimately, this recognition validates that our culture is a competitive advantage. ultimately this recognition validates that our culture is a competitive advantage Next, I will turn over to JMA and Michael Koehler for Q&A. Next, I will turn over to JMA and Michael Koehler for Q&A. next i will turn over to jma and michael koehler for q&a

Speaker 13: Thanks, Aaron. We'll open it up for Q&A for about 15 minutes or so. Just some housekeeping. Andrew, I see you've already got your hand up so, please raise your hand. I'll bring you the microphone, and we ask that you limit your question, one question and a follow-up. Let's keep our questions on topic with the speakers we've got up here. Thanks, Aaron. thanks aaron We'll open it up for Q&A for about 15 minutes or so. we'll open it up for q&a for about 15 minutes or so Just some housekeeping. just some housekeeping Andrew, I see you've already got your hand up so, please raise your hand. andrew i see you've already got your hand up so please raise your hand I'll bring you the microphone, and we ask that you limit your question, one question and a follow-up. i'll bring you the microphone and we ask that you limit your question one question and a follow-up Let's keep our questions on topic with the speakers we've got up here. let's keep our questions on topic with the speakers we've got up here

Speaker 18: Thank you very much. Andrew Carter, Stifel. Curious on the RDS. Really appreciate the presentation and the granularity there. In terms of, number one, you said kinda steady growth from here. That was kinda something that I believe used to be a double-digit grower. Wanna confirm what you're thinking about that business. Obviously, it's a great business with the placement you have, the technology. As far as, you know, keeping it within Hillman, do you think that you have the necessary resources for R&D to keep up with tech, also potential for, you know, capital, whatever, to really get everything you need out of this business to really fully realize its potential? Thanks. Thank you very much. thank you very much Andrew Carter, Stifel. andrew carter stifel Curious on the RDS. curious on the rds Really appreciate the presentation and the granularity there. really appreciate the presentation and the granularity there In terms of, number one, you said kinda steady growth from here. in terms of number one you said kinda steady growth from here That was kinda something that I believe used to be a double-digit grower. that was kinda something that i believe used to be a double-digit grower Wanna confirm what you're thinking about that business. wanna confirm what you're thinking about that business Obviously, it's a great business with the placement you have, the technology. obviously it's a great business with the placement you have the technology As far as, you know, keeping it within Hillman, do you think that you have the necessary resources for R&D to keep up with tech, also potential for, you know, capital, whatever, to really get everything you need out of this business to really fully realize its potential? as far as you know keeping it within hillman do you think that you have the necessary resources for r&d to keep up with tech also potential for you know capital whatever to really get everything you need out of this business to really fully realize its potential Thanks. thanks

Speaker 17: Thanks, Andrew. Can you guys hear me? Good. Yeah, thank you for that question. I think the first part was where do you see it going in terms of growth? Yeah, I think that's gonna be in line, obviously, with what you're gonna see here for the overall business. We're gonna be in step with that. I don't wanna give exact numbers, but I'm gonna be happy with it. Let's put it that way. Second of all, in terms of being under Hillman and having access to all the resources, certainly. We have already made, as I suggested, a significant investment in this platform. Thanks, Andrew. thanks andrew Can you guys hear me? can you guys hear me Good. good Yeah, thank you for that question. yeah thank you for that question I think the first part was where do you see it going in terms of growth? i think the first part was where do you see it going in terms of growth Yeah, I think that's gonna be in line, obviously, with what you're gonna see here for the overall business. yeah i think that's gonna be in line obviously with what you're gonna see here for the overall business We're gonna be in step with that. we're gonna be in step with that I don't wanna give exact numbers, but I'm gonna be happy with it. i don't wanna give exact numbers but i'm gonna be happy with it Let's put it that way. let's put it that way Second of all, in terms of being under Hillman and having access to all the resources, certainly. second of all in terms of being under hillman and having access to all the resources certainly We have already made, as I suggested, a significant investment in this platform. we have already made as i suggested a significant investment in this platform We're where we need to be to leverage it, and I think we have a bright future in terms of everything R&D, everything Tempe, everything we need to do. I'm super excited about where we're going. We're where we need to be to leverage it, and I think we have a bright future in terms of everything R&D, everything Tempe, everything we need to do. we're where we need to be to leverage it and i think we have a bright future in terms of everything r&d everything tempe everything we need to do I'm super excited about where we're going. i'm super excited about where we're going

Speaker 1: Yeah, I mean, Scott, good answer to the question, Andrew. Appreciate the interest there. I mean, one of the things I'll turn to is Scott talked a lot about 3.5. We're really excited about the technology. I think you know how, you know, my approach is. We're gonna tell you about it as it continues to exceed expectations. We're pleased with how we performed in 2025. We're excited 'cause we're gonna improve on that even in 2026. I'll say firsthand, Brett and I were just actually out in the field with our, you know, our 3.5, I'll call it, team with one of our West Coast blitzes just a few weeks ago. Yeah, I mean, Scott, good answer to the question, Andrew. yeah i mean scott good answer to the question andrew Appreciate the interest there. appreciate the interest there I mean, one of the things I'll turn to is Scott talked a lot about 3.5. i mean one of the things i'll turn to is scott talked a lot about 3.5 We're really excited about the technology. we're really excited about the technology I think you know how, you know, my approach is. i think you know how you know my approach is We're gonna tell you about it as it continues to exceed expectations. we're gonna tell you about it as it continues to exceed expectations We're pleased with how we performed in 2025. we're pleased with how we performed in 2025 We're excited 'cause we're gonna improve on that even in 2026. we're excited 'cause we're gonna improve on that even in 2026 I'll say firsthand, Brett and I were just actually out in the field with our, you know, our 3.5, I'll call it, team with one of our West Coast blitzes just a few weeks ago. i'll say firsthand brett and i were just actually out in the field with our you know our 3.5 i'll call it team with one of our west coast blitzes just a few weeks ago To see the action and the power of the Hillman, I'll say what machine or what we can do that's bringing all of our people in the field together with our product teams and seeing the action out there and getting excitement. It just gives you an example of where and how that fits with the portfolio and how we're gonna be able to build on it. Andrew, I think there's some really good opportunities. A lot of that was driven around automotive, and we're gonna continue to lean into it. I think we got some exciting days ahead. We really believe in the technology and the path forward. To see the action and the power of the Hillman, I'll say what machine or what we can do that's bringing all of our people in the field together with our product teams and seeing the action out there and getting excitement. to see the action and the power of the hillman i'll say what machine or what we can do that's bringing all of our people in the field together with our product teams and seeing the action out there and getting excitement It just gives you an example of where and how that fits with the portfolio and how we're gonna be able to build on it. it just gives you an example of where and how that fits with the portfolio and how we're gonna be able to build on it Andrew, I think there's some really good opportunities. andrew i think there's some really good opportunities A lot of that was driven around automotive, and we're gonna continue to lean into it. a lot of that was driven around automotive and we're gonna continue to lean into it I think we got some exciting days ahead. i think we got some exciting days ahead We really believe in the technology and the path forward. we really believe in the technology and the path forward

Speaker 15: I'm in the questions today. Brett, I was wondering if you could talk about the similarities or differences between you guys getting into different categories 15 years ago within the hardware aisle and expanding into the Pro channel. Is this something that's gonna be more driven by organic like you did in, say, Builders Hardware or more of a broken chain situation where you got to buy more access to that customer base? I'm in the questions today. i'm in the questions today Brett, I was wondering if you could talk about the similarities or differences between you guys getting into different categories 15 years ago within the hardware aisle and expanding into the Pro channel. brett i was wondering if you could talk about the similarities or differences between you guys getting into different categories 15 years ago within the hardware aisle and expanding into the pro channel Is this something that's gonna be more driven by organic like you did in, say, Builders Hardware or more of a broken chain situation where you got to buy more access to that customer base? is this something that's gonna be more driven by organic like you did in say builders hardware or more of a broken chain situation where you got to buy more access to that customer base

Speaker 11: Reuben, I'll start it. I'll let Brett add on to it. It is a mix of the two, Reuben, and you're gonna hear a lot more about Pro here in the next section, where we're gonna go pretty deep on how we break it down. You know, in retail, I mean, Brett's team has done a great job. I'll let him expand on it. You know, for us, we really believe that this is one where we've got the products. A matter of fact, I'll start out my presentation talking a little bit about what we have in the core, the moat we have today, and how we're gonna expand that and take care of the Pro. Be patient on that part of the answer. Brett, anything you want to add a little bit of what we're doing. Reuben, I'll start it. reuben i'll start it I'll let Brett add on to it. i'll let brett add on to it It is a mix of the two, Reuben, and you're gonna hear a lot more about Pro here in the next section, where we're gonna go pretty deep on how we break it down. it is a mix of the two reuben and you're gonna hear a lot more about pro here in the next section where we're gonna go pretty deep on how we break it down You know, in retail, I mean, Brett's team has done a great job. you know in retail i mean brett's team has done a great job I'll let him expand on it. i'll let him expand on it You know, for us, we really believe that this is one where we've got the products. you know for us we really believe that this is one where we've got the products A matter of fact, I'll start out my presentation talking a little bit about what we have in the core, the moat we have today, and how we're gonna expand that and take care of the Pro. a matter of fact i'll start out my presentation talking a little bit about what we have in the core the moat we have today and how we're gonna expand that and take care of the pro Be patient on that part of the answer. be patient on that part of the answer Brett, anything you want to add a little bit of what we're doing. brett anything you want to add a little bit of what we're doing

Speaker 5: I would agree. I would say it depends on the category. It depends on whether it's retail or whether it's pro. I think the larger the category, the more likely we'll have to buy our way into that. There's gonna be some called bolt-on categories that we'll build. Different than maybe what it was 15 years ago when we got into Builders Hardware. The good news is our customers are encouraging us to explore those opportunities. I would agree. i would agree I would say it depends on the category. i would say it depends on the category It depends on whether it's retail or whether it's pro. it depends on whether it's retail or whether it's pro I think the larger the category, the more likely we'll have to buy our way into that. i think the larger the category the more likely we'll have to buy our way into that There's gonna be some called bolt-on categories that we'll build. there's gonna be some called bolt-on categories that we'll build Different than maybe what it was 15 years ago when we got into Builders Hardware. different than maybe what it was 15 years ago when we got into builders hardware The good news is our customers are encouraging us to explore those opportunities. the good news is our customers are encouraging us to explore those opportunities

Speaker 15: Okay, thanks. I'm gonna change my follow-up then, since I think I got ahead of myself. So Bob, I was gonna be disappointed if you didn't say dual faucet today. Can you walk through, I guess, how the competition has reacted, if you have insight, meaning are the others also pivoting like you are? Or how big of a differentiator is it for you that you're able to kind of move with your suppliers to other countries? Okay, thanks. okay thanks I'm gonna change my follow-up then, since I think I got ahead of myself. i'm gonna change my follow-up then since i think i got ahead of myself So Bob, I was gonna be disappointed if you didn't say dual faucet today. so bob i was gonna be disappointed if you didn't say dual faucet today Can you walk through, I guess, how the competition has reacted, if you have insight, meaning are the others also pivoting like you are? can you walk through i guess how the competition has reacted if you have insight meaning are the others also pivoting like you are Or how big of a differentiator is it for you that you're able to kind of move with your suppliers to other countries? or how big of a differentiator is it for you that you're able to kind of move with your suppliers to other countries

Speaker 4: Well, I would assume the competition is doing similar things. It's hard for me to know that because, unfortunately, they don't share a lot of that information with us. I do feel comfortable that we've been out in front and leading in this area. The reason that I can say that is because as we're on boots on the ground, I'll be leaving again for Asia at the end of this month, that's what we're hearing from the factories there. I do feel like that we got a jump on this to be able to get out in front of it. This wasn't something that we took on immediately when tariffs were announced. We started this road two years ago. Well, I would assume the competition is doing similar things. well i would assume the competition is doing similar things It's hard for me to know that because, unfortunately, they don't share a lot of that information with us. it's hard for me to know that because unfortunately they don't share a lot of that information with us I do feel comfortable that we've been out in front and leading in this area. i do feel comfortable that we've been out in front and leading in this area The reason that I can say that is because as we're on boots on the ground, I'll be leaving again for Asia at the end of this month, that's what we're hearing from the factories there. the reason that i can say that is because as we're on boots on the ground i'll be leaving again for asia at the end of this month that's what we're hearing from the factories there I do feel like that we got a jump on this to be able to get out in front of it. i do feel like that we got a jump on this to be able to get out in front of it This wasn't something that we took on immediately when tariffs were announced. this wasn't something that we took on immediately when tariffs were announced We started this road two years ago. we started this road two years ago I've always been a firm believer that you had to be multi-sourced, because you just never know what's gonna happen in the marketplace. The expansion and pushing that across to other countries of origin have been a benefit for our suppliers as well as because it gives them the opportunity to grow as well. They've been very anxious to meet us there because you got to think about it, you know, the alternative to that is when somebody imposes a 150% tariff on, you're out of business. It's been very good for us. I've always been a firm believer that you had to be multi-sourced, because you just never know what's gonna happen in the marketplace. i've always been a firm believer that you had to be multi-sourced because you just never know what's gonna happen in the marketplace The expansion and pushing that across to other countries of origin have been a benefit for our suppliers as well as because it gives them the opportunity to grow as well. the expansion and pushing that across to other countries of origin have been a benefit for our suppliers as well as because it gives them the opportunity to grow as well They've been very anxious to meet us there because you got to think about it, you know, the alternative to that is when somebody imposes a 150% tariff on, you're out of business. they've been very anxious to meet us there because you got to think about it you know the alternative to that is when somebody imposes a 150% tariff on you're out of business It's been very good for us. it's been very good for us

Speaker 12: Hi, Lee Jagoda, CJS. I guess one for Scott, one for Bob. For Scott, just on the 3.5 rollout, in particular with the auto key fobs, can you give us some real-world examples on how you plan to market it to the consumer to drive adoption other than just, you know, having the picture on the side of the machine? Hi, Lee Jagoda, CJS. hi lee jagoda cjs I guess one for Scott, one for Bob. i guess one for scott one for bob For Scott, just on the 3.5 rollout, in particular with the auto key fobs, can you give us some real-world examples on how you plan to market it to the consumer to drive adoption other than just, you know, having the picture on the side of the machine? for scott just on the 3.5 rollout in particular with the auto key fobs can you give us some real-world examples on how you plan to market it to the consumer to drive adoption other than just you know having the picture on the side of the machine

Speaker 5: Sure. Great question. We've been doing market blitzes to raise awareness because for years, we did not offer auto keys on the machine, right? We have been attacking this by market as we get density of our machine conversions. That's one of the things that you know JMA alluded to. It's been going extremely well. We've done Dallas, we've done L.A., we've done some Florida. We're now moving to North Carolina and others. We're taking it market by market, but we also have a large digital campaign as well. You know, email marketing, influencers, the whole nine that are driving awareness in the market, and we're seeing results. Sure. sure Great question. great question We've been doing market blitzes to raise awareness because for years, we did not offer auto keys on the machine, right? we've been doing market blitzes to raise awareness because for years we did not offer auto keys on the machine right We have been attacking this by market as we get density of our machine conversions. we have been attacking this by market as we get density of our machine conversions That's one of the things that you know JMA alluded to. that's one of the things that you know jma alluded to It's been going extremely well. it's been going extremely well We've done Dallas, we've done L.A., we've done some Florida. we've done dallas we've done l.a we've done some florida We're now moving to North Carolina and others. we're now moving to north carolina and others We're taking it market by market, but we also have a large digital campaign as well. we're taking it market by market but we also have a large digital campaign as well You know, email marketing, influencers, the whole nine that are driving awareness in the market, and we're seeing results. you know email marketing influencers the whole nine that are driving awareness in the market and we're seeing results

Speaker 12: For Bob, obviously, the DC of the future is pretty exciting with all the automation and robotics. What kind of opportunity is there in those areas with your legacy DCs, or is it just a build strategy and then consolidate from there? For Bob, obviously, the DC of the future is pretty exciting with all the automation and robotics. for bob obviously the dc of the future is pretty exciting with all the automation and robotics What kind of opportunity is there in those areas with your legacy DCs, or is it just a build strategy and then consolidate from there? what kind of opportunity is there in those areas with your legacy dcs or is it just a build strategy and then consolidate from there

Speaker 4: No, actually, we do look at all of our DCs as far as what opportunity we can bring to improve our efficiency. We talk about the DC of the future, but Jacksonville is an example. We use robotics in our Jacksonville DC. We have more automation there. We are automating in other facilities based on the need to serve the customer. It's not just a one big bang. The big bang is just because of the sheer volume that we do out of this marketplace. We look at all of our DCs for opportunities to improve our efficiency. No, actually, we do look at all of our DCs as far as what opportunity we can bring to improve our efficiency. no actually we do look at all of our dcs as far as what opportunity we can bring to improve our efficiency We talk about the DC of the future, but Jacksonville is an example. we talk about the dc of the future but jacksonville is an example We use robotics in our Jacksonville DC. we use robotics in our jacksonville dc We have more automation there. we have more automation there We are automating in other facilities based on the need to serve the customer. we are automating in other facilities based on the need to serve the customer It's not just a one big bang. it's not just a one big bang The big bang is just because of the sheer volume that we do out of this marketplace. the big bang is just because of the sheer volume that we do out of this marketplace We look at all of our DCs for opportunities to improve our efficiency. we look at all of our dcs for opportunities to improve our efficiency

Speaker 16: Sam Darkatsh, Raymond James. By the way, thank you for all this. I know it's a lot of work that goes on behind the scenes. This is terrific. I think this question is for Brett. So, you mentioned some of the categories that you're not in yet at retail: electrical, plumbing, sealants, adhesives. There may have been a couple others. It's exciting. First off, what's the TAM of those? Are they included within the $6.5 billion, or are they incremental to that? Second part of that would be, we've heard about some of these categories for a while being opportunities. Does this imply that the ability to get into them organically is challenged, or which of them maybe in particular might make sense to go organically? Sam Darkatsh, Raymond James. sam darkatsh raymond james By the way, thank you for all this. by the way thank you for all this I know it's a lot of work that goes on behind the scenes. i know it's a lot of work that goes on behind the scenes This is terrific. this is terrific I think this question is for Brett. i think this question is for brett So, you mentioned some of the categories that you're not in yet at retail: electrical, plumbing, sealants, adhesives. so you mentioned some of the categories that you're not in yet at retail electrical plumbing sealants adhesives There may have been a couple others. there may have been a couple others It's exciting. it's exciting First off, what's the TAM of those? first off what's the tam of those Are they included within the $6.5 billion, or are they incremental to that? are they included within the $6.5 billion or are they incremental to that Second part of that would be, we've heard about some of these categories for a while being opportunities. second part of that would be we've heard about some of these categories for a while being opportunities Does this imply that the ability to get into them organically is challenged, or which of them maybe in particular might make sense to go organically? does this imply that the ability to get into them organically is challenged or which of them maybe in particular might make sense to go organically

Speaker 11: Great question. I'll start, Sam, and then I'll let Brett add on to it. The electrical and plumbing, as you see it there, those are not included in the TAM that we have. Sam, those are ones that we think are still attractive categories for us. We've been talking about that since we went public. You know, we believe that those would be acquisition opportunities. Those would be ones where, as Brett talked about on that page, he framed up that some of this is category expansion organically, some of it could be inorganic. Those would be inorganic opportunities for us. To your point, that is consistent with our thesis. We've not changed our positioning there. We'll look for opportunities when they arise. Great question. great question I'll start, Sam, and then I'll let Brett add on to it. i'll start sam and then i'll let brett add on to it The electrical and plumbing, as you see it there, those are not included in the TAM that we have. the electrical and plumbing as you see it there those are not included in the tam that we have Sam, those are ones that we think are still attractive categories for us. sam those are ones that we think are still attractive categories for us We've been talking about that since we went public. we've been talking about that since we went public You know, we believe that those would be acquisition opportunities. you know we believe that those would be acquisition opportunities Those would be ones where, as Brett talked about on that page, he framed up that some of this is category expansion organically, some of it could be inorganic. those would be ones where as brett talked about on that page he framed up that some of this is category expansion organically some of it could be inorganic Those would be inorganic opportunities for us. those would be inorganic opportunities for us To your point, that is consistent with our thesis. to your point that is consistent with our thesis We've not changed our positioning there. we've not changed our positioning there We'll look for opportunities when they arise. we'll look for opportunities when they arise You know, we look at deals, candidly, we looked at one not that long ago that could have gotten us into the plumbing side. It wasn't the right fit for us, so we, you know, we still maintain that discipline, looking through ROIC lens and making sure that we're doing deals that are right for Hillman. Sometimes the best deals are the ones you don't do. We've looked at several of those in the last couple of years, and we feel like when the right deal comes up, we'll go for it. I think that's really how you'd wanna think about those areas. We like. You know, when we did our market study, and we spent quite a bit of time and effort on really identifying what makes sense for Hillman, adhesives is something that came up higher on the radar. You know, we look at deals, candidly, we looked at one not that long ago that could have gotten us into the plumbing side. you know we look at deals candidly we looked at one not that long ago that could have gotten us into the plumbing side It wasn't the right fit for us, so we, you know, we still maintain that discipline, looking through ROIC lens and making sure that we're doing deals that are right for Hillman. it wasn't the right fit for us so we you know we still maintain that discipline looking through roic lens and making sure that we're doing deals that are right for hillman Sometimes the best deals are the ones you don't do. sometimes the best deals are the ones you don't do We've looked at several of those in the last couple of years, and we feel like when the right deal comes up, we'll go for it. we've looked at several of those in the last couple of years and we feel like when the right deal comes up we'll go for it I think that's really how you'd wanna think about those areas. i think that's really how you'd wanna think about those areas We like. we like You know, when we did our market study, and we spent quite a bit of time and effort on really identifying what makes sense for Hillman, adhesives is something that came up higher on the radar. you know when we did our market study and we spent quite a bit of time and effort on really identifying what makes sense for hillman adhesives is something that came up higher on the radar We think that as you think about everything fastening, we're very proud of our, you know, DNA in fastening, and what we do. It is at the core, and it's something that really connects the entire business, no pun intended. We think that fastening is the evolution of fasteners and building materials, you know. We are looking at opportunities in the adhesive area. That's something that we think is very interesting to us, especially as the advancements in construction and those materials move forward. We think we have to be looking at them. So, that would be, again, acquisition oriented. We have looked at some opportunities, and Chris and his team have explored some opportunities for us to do maybe some partnerships, but I think that would be acquisition, joint venture-ish if we went down that road. We think that as you think about everything fastening, we're very proud of our, you know, DNA in fastening, and what we do. we think that as you think about everything fastening we're very proud of our you know dna in fastening and what we do It is at the core, and it's something that really connects the entire business, no pun intended. it is at the core and it's something that really connects the entire business no pun intended We think that fastening is the evolution of fasteners and building materials, you know. we think that fastening is the evolution of fasteners and building materials you know We are looking at opportunities in the adhesive area. we are looking at opportunities in the adhesive area That's something that we think is very interesting to us, especially as the advancements in construction and those materials move forward. that's something that we think is very interesting to us especially as the advancements in construction and those materials move forward We think we have to be looking at them. we think we have to be looking at them So, that would be, again, acquisition oriented. so that would be again acquisition oriented We have looked at some opportunities, and Chris and his team have explored some opportunities for us to do maybe some partnerships, but I think that would be acquisition, joint venture-ish if we went down that road. we have looked at some opportunities and chris and his team have explored some opportunities for us to do maybe some partnerships but i think that would be acquisition joint venture-ish if we went down that road

Speaker 3: What are the sizes and the channels? That was general. What are the sizes and the channels? what are the sizes and the channels That was general. that was general

Speaker 11: I mean, they're sizable. As you know, some of the big players in this space, we think there's an opportunity, especially on the pro side of our business, where we can expand it, especially with the brand Power Pro, 'cause, you know, as you'll hear me talk a little bit later about it, Power Pro is a brand that started in fastening. We think it can extend beyond that. That would be an example of what we can do there. More to come on what that would look like in the future. I mean, they're sizable. i mean they're sizable As you know, some of the big players in this space, we think there's an opportunity, especially on the pro side of our business, where we can expand it, especially with the brand Power Pro, 'cause, you know, as you'll hear me talk a little bit later about it, Power Pro is a brand that started in fastening. as you know some of the big players in this space we think there's an opportunity especially on the pro side of our business where we can expand it especially with the brand power pro 'cause you know as you'll hear me talk a little bit later about it power pro is a brand that started in fastening We think it can extend beyond that. we think it can extend beyond that That would be an example of what we can do there. that would be an example of what we can do there More to come on what that would look like in the future. more to come on what that would look like in the future

Speaker 5: I mean, not much to add. I mean, categories like plumbing and electrical, high SKU count, low line value, complex, difficult to manage. That's why it's attractive, but, you know, we're gonna enter in the categories that we can be number one, and that one's most likely gonna be a build. I mean, not much to add. i mean not much to add I mean, categories like plumbing and electrical, high SKU count, low line value, complex, difficult to manage. i mean categories like plumbing and electrical high sku count low line value complex difficult to manage That's why it's attractive, but, you know, we're gonna enter in the categories that we can be number one, and that one's most likely gonna be a build. that's why it's attractive but you know we're gonna enter in the categories that we can be number one and that one's most likely gonna be a build

Speaker 11: Right. Thanks. Right. right Thanks. thanks

Speaker 6: Yeah. Brian McNamara, Canaccord Genuity here. Thanks, guys, for doing this today. Really helpful. I guess, can you expound upon doubling your kinda contribution of new business wins from 2%-4%? What gives you confidence in that? I love the fact that there's not one housing-related slide in your deck today because it's something easy to kinda blame. It's great to see that. What gives you confidence on that? Maybe Brett Hillman can kinda speak on, like, some of the sales cycles of some of these new business ones that you expect. Yeah. yeah Brian McNamara, Canaccord Genuity here. brian mcnamara canaccord genuity here Thanks, guys, for doing this today. thanks guys for doing this today Really helpful. really helpful I guess, can you expound upon doubling your kinda contribution of new business wins from 2%-4%? i guess can you expound upon doubling your kinda contribution of new business wins from 2%-4% What gives you confidence in that? what gives you confidence in that I love the fact that there's not one housing-related slide in your deck today because it's something easy to kinda blame. i love the fact that there's not one housing-related slide in your deck today because it's something easy to kinda blame It's great to see that. it's great to see that What gives you confidence on that? what gives you confidence on that Maybe Brett Hillman can kinda speak on, like, some of the sales cycles of some of these new business ones that you expect. maybe brett hillman can kinda speak on like some of the sales cycles of some of these new business ones that you expect

Speaker 11: Yeah. I'll start it, and if you want, Brett, go through it because it. You know, that's one where, Brian, to that point, it's an excellent question, and you're welcome for us not putting the housing slides in there. I mean, we really feel about the resilience of this business. We use it sometimes as through bad times. We think our resilience in the positive areas. I mean, Brett's team has done a great job of going out there, winning new business, taking care of our customers. That's why we have confidence in moving that 2%-4%. A lot of that growth will be on the pro side, and we'll talk about that in more detail shortly. But Brett, why don't you give me some examples of some of the things you guys are doing on winning new business, even some of the BD things? Yeah. yeah I'll start it, and if you want, Brett, go through it because it. i'll start it and if you want brett go through it because it You know, that's one where, Brian, to that point, it's an excellent question, and you're welcome for us not putting the housing slides in there. you know that's one where brian to that point it's an excellent question and you're welcome for us not putting the housing slides in there I mean, we really feel about the resilience of this business. i mean we really feel about the resilience of this business We use it sometimes as through bad times. we use it sometimes as through bad times We think our resilience in the positive areas. we think our resilience in the positive areas I mean, Brett's team has done a great job of going out there, winning new business, taking care of our customers. i mean brett's team has done a great job of going out there winning new business taking care of our customers That's why we have confidence in moving that 2%-4%. that's why we have confidence in moving that 2%-4% A lot of that growth will be on the pro side, and we'll talk about that in more detail shortly. a lot of that growth will be on the pro side and we'll talk about that in more detail shortly But Brett, why don't you give me some examples of some of the things you guys are doing on winning new business, even some of the BD things? but brett why don't you give me some examples of some of the things you guys are doing on winning new business even some of the bd things

Speaker 5: Yeah. I mean, we've, you know, recently launched a business development team. Folks that are completely focused, dedicated on going out and driving our top initiatives and selling the most important things, working with our sales teams, our customers, and, you know, we need that 2% to obviously get to 4%. A lot of it's gonna be the Pro. You know, we do believe that we have opportunities to lean into even, you know, bigger ways and categories with our customers that are out there. This business development team, we have folks that are focused on new channels, getting into things like convenience and grocery and areas that we're just not in today. Then obviously partnering with our existing channel customers and, you know, looking at those category opportunities or when we launch new products and we displace a competitor. Yeah. yeah I mean, we've, you know, recently launched a business development team. i mean we've you know recently launched a business development team Folks that are completely focused, dedicated on going out and driving our top initiatives and selling the most important things, working with our sales teams, our customers, and, you know, we need that 2% to obviously get to 4%. folks that are completely focused dedicated on going out and driving our top initiatives and selling the most important things working with our sales teams our customers and you know we need that 2% to obviously get to 4% A lot of it's gonna be the Pro. a lot of it's gonna be the pro You know, we do believe that we have opportunities to lean into even, you know, bigger ways and categories with our customers that are out there. you know we do believe that we have opportunities to lean into even you know bigger ways and categories with our customers that are out there This business development team, we have folks that are focused on new channels, getting into things like convenience and grocery and areas that we're just not in today. this business development team we have folks that are focused on new channels getting into things like convenience and grocery and areas that we're just not in today Then obviously partnering with our existing channel customers and, you know, looking at those category opportunities or when we launch new products and we displace a competitor. then obviously partnering with our existing channel customers and you know looking at those category opportunities or when we launch new products and we displace a competitor Having that business development team has been a great asset. Having that business development team has been a great asset. having that business development team has been a great asset

Speaker 11: Even to give them a little feel for National Sales Meeting and what you guys kinda got very revved up. Even to give them a little feel for National Sales Meeting and what you guys kinda got very revved up. even to give them a little feel for national sales meeting and what you guys kinda got very revved up

Speaker 5: Yeah. We had our traditional hardware national sales meeting in Denver, Colorado a few weeks ago, and this is when we had all 275 people that call in the hardware store channel in one room. We were able to not only share where we wanna go with the business but also what our plans are for 2026, what are those new products, what are the areas that we really want them to focus on and sell into the hardware store channel. We spent two days, we trained on them. We had business development there to help train them, things like Power Pro and how we really wanna go after the LBM yards that we've been calling on for 40 years and really expanding our moat in some of these other areas. It was a great two days. Yeah. yeah We had our traditional hardware national sales meeting in Denver, Colorado a few weeks ago, and this is when we had all 275 people that call in the hardware store channel in one room. we had our traditional hardware national sales meeting in denver colorado a few weeks ago and this is when we had all 275 people that call in the hardware store channel in one room We were able to not only share where we wanna go with the business but also what our plans are for 2026, what are those new products, what are the areas that we really want them to focus on and sell into the hardware store channel. we were able to not only share where we wanna go with the business but also what our plans are for 2026 what are those new products what are the areas that we really want them to focus on and sell into the hardware store channel We spent two days, we trained on them. we spent two days we trained on them We had business development there to help train them, things like Power Pro and how we really wanna go after the LBM yards that we've been calling on for 40 years and really expanding our moat in some of these other areas. we had business development there to help train them things like power pro and how we really wanna go after the lbm yards that we've been calling on for 40 years and really expanding our moat in some of these other areas It was a great two days. it was a great two days I think, Jay, maybe you would agree with that. The team was really fired up, and they look at this business development team as now a new resource that they have to break down walls, whether it be internally, candidly, or externally, so that they can go out there and do what they do best, which is sell. I think, Jay, maybe you would agree with that. i think jay maybe you would agree with that The team was really fired up, and they look at this business development team as now a new resource that they have to break down walls, whether it be internally, candidly, or externally, so that they can go out there and do what they do best, which is sell. the team was really fired up and they look at this business development team as now a new resource that they have to break down walls whether it be internally candidly or externally so that they can go out there and do what they do best which is sell

Speaker 11: It was so powerful. I mean, Brett's being modest. I mean, it, that's what gives me confidence is that, seeing that team revved up and fired up, starting on Friday, going Friday, Saturday, Sunday, and talking about all the great stuff we're doing. I mean, it was really, really amazing. Brett and team did a great job. That's the example of what gives us confidence we're gonna go out there and crush it in 2026 and beyond. It was so powerful. it was so powerful I mean, Brett's being modest. i mean brett's being modest I mean, it, that's what gives me confidence is that, seeing that team revved up and fired up, starting on Friday, going Friday, Saturday, Sunday, and talking about all the great stuff we're doing. i mean it that's what gives me confidence is that seeing that team revved up and fired up starting on friday going friday saturday sunday and talking about all the great stuff we're doing I mean, it was really, really amazing. i mean it was really really amazing Brett and team did a great job. brett and team did a great job That's the example of what gives us confidence we're gonna go out there and crush it in 2026 and beyond. that's the example of what gives us confidence we're gonna go out there and crush it in 2026 and beyond

Speaker 6: Squeeze a quick one in for Scott on RDS. I know you guys have had your techs in the stores servicing other kiosks. I'm just curious what learnings you've gotten there and anything to make of that, any opportunities there, good or bad? Squeeze a quick one in for Scott on RDS. squeeze a quick one in for scott on rds I know you guys have had your techs in the stores servicing other kiosks. i know you guys have had your techs in the stores servicing other kiosks I'm just curious what learnings you've gotten there and anything to make of that, any opportunities there, good or bad? i'm just curious what learnings you've gotten there and anything to make of that any opportunities there good or bad

Speaker 5: Yeah. Thanks. That's a great question. What we have learned is basically how good we are. I mean, I hate to be that, but it's true. We have learned, as I had mentioned, our exceptional uptime, our engineering, all the things that have gone on behind the scenes to make our fleet as reliable and as efficient as we can. We now have opportunities in front of us, because of our excellent servicing and what they've seen with our fleet. There's opportunities there for us to do more of that business. They're asking us, and I've quite frankly said, when we're ready, because we don't want to overdo it in that area. You know, our uptime is what matters. Yeah. yeah Thanks. thanks That's a great question. that's a great question What we have learned is basically how good we are. what we have learned is basically how good we are I mean, I hate to be that, but it's true. i mean i hate to be that but it's true We have learned, as I had mentioned, our exceptional uptime, our engineering, all the things that have gone on behind the scenes to make our fleet as reliable and as efficient as we can. we have learned as i had mentioned our exceptional uptime our engineering all the things that have gone on behind the scenes to make our fleet as reliable and as efficient as we can We now have opportunities in front of us, because of our excellent servicing and what they've seen with our fleet. we now have opportunities in front of us because of our excellent servicing and what they've seen with our fleet There's opportunities there for us to do more of that business. there's opportunities there for us to do more of that business They're asking us, and I've quite frankly said, when we're ready, because we don't want to overdo it in that area. they're asking us and i've quite frankly said when we're ready because we don't want to overdo it in that area You know, our uptime is what matters. you know our uptime is what matters To the extent that we can service others, great, but, only when it makes most sense for us. We've learned a lot. We really have. To the extent that we can service others, great, but, only when it makes most sense for us. to the extent that we can service others great but only when it makes most sense for us We've learned a lot. we've learned a lot We really have. we really have

Speaker 10: Hey, guys. Jamie Simonson from Jefferies. Thanks for this great morning so far. I guess my first question is probably for Bob, on the dual faucet side of things. You know, how quickly are you able to sort of shift, you know, the supply chain from one country to another? And then on sort of, you know, looking at that decision, is it really just pure looking at the total landed cost and going with the cheaper one, or is there any, you know, other factors that would go into that decision? Hey, guys. hey guys Jamie Simonson from Jefferies. jamie simonson from jefferies Thanks for this great morning so far. thanks for this great morning so far I guess my first question is probably for Bob, on the dual faucet side of things. i guess my first question is probably for bob on the dual faucet side of things You know, how quickly are you able to sort of shift, you know, the supply chain from one country to another? you know how quickly are you able to sort of shift you know the supply chain from one country to another And then on sort of, you know, looking at that decision, is it really just pure looking at the total landed cost and going with the cheaper one, or is there any, you know, other factors that would go into that decision? and then on sort of you know looking at that decision is it really just pure looking at the total landed cost and going with the cheaper one or is there any you know other factors that would go into that decision

Speaker 4: Well, definitely, you know, good question, but definitely the landed cost is where our focus is because that's how we provide a competitive advantage for the business. As far as how quickly we can shift, it's a matter of we make that change, and it's the next PO can go to the next vendor. You know, when you look at the scope of what we have set up in that, and I'll just give you an example. Last October, we had our vendor conference in Hồ Chí Minh City in Vietnam. We had over 200 suppliers in attendance at that conference from 11 different countries. Those are all suppliers that we do business with and have the ability to move spend back and forth with. It's very fast for us. Well, definitely, you know, good question, but definitely the landed cost is where our focus is because that's how we provide a competitive advantage for the business. well definitely you know good question but definitely the landed cost is where our focus is because that's how we provide a competitive advantage for the business As far as how quickly we can shift, it's a matter of we make that change, and it's the next PO can go to the next vendor. as far as how quickly we can shift it's a matter of we make that change and it's the next po can go to the next vendor You know, when you look at the scope of what we have set up in that, and I'll just give you an example. you know when you look at the scope of what we have set up in that and i'll just give you an example Last October, we had our vendor conference in Hồ Chí Minh City in Vietnam. last october we had our vendor conference in hồ chí minh city in vietnam We had over 200 suppliers in attendance at that conference from 11 different countries. we had over 200 suppliers in attendance at that conference from 11 different countries Those are all suppliers that we do business with and have the ability to move spend back and forth with. those are all suppliers that we do business with and have the ability to move spend back and forth with It's very fast for us. it's very fast for us It's simply a matter of we put it into our table, and the next PO that goes out goes to the vendor with the most competitive cost. It's simply a matter of we put it into our table, and the next PO that goes out goes to the vendor with the most competitive cost. it's simply a matter of we put it into our table and the next po that goes out goes to the vendor with the most competitive cost

Speaker 10: Perfect. Maybe just switching gears slightly, to the RDS side. I'm curious, you know, obviously the automotive example, you know, that you gave is pretty clear in terms of the, you know, the high cost of going with the dealership. I guess over time, you know, as you guys grow penetration on that business, is there any risk that, you know, the dealerships might come down in price, or are you not really worried about that? Perfect. perfect Maybe just switching gears slightly, to the RDS side. maybe just switching gears slightly to the rds side I'm curious, you know, obviously the automotive example, you know, that you gave is pretty clear in terms of the, you know, the high cost of going with the dealership. i'm curious you know obviously the automotive example you know that you gave is pretty clear in terms of the you know the high cost of going with the dealership I guess over time, you know, as you guys grow penetration on that business, is there any risk that, you know, the dealerships might come down in price, or are you not really worried about that? i guess over time you know as you guys grow penetration on that business is there any risk that you know the dealerships might come down in price or are you not really worried about that

Speaker 4: I personally don't worry about that. I think, that's not a big piece of their business, and I think they take advantage of the consumer because of it, but that's, you know, that's my opinion. Yeah, I think we're where we need to be there, and I'm not worried at all about that. There's a big market for us to address, and we're going after it. I personally don't worry about that. i personally don't worry about that I think, that's not a big piece of their business, and I think they take advantage of the consumer because of it, but that's, you know, that's my opinion. i think that's not a big piece of their business and i think they take advantage of the consumer because of it but that's you know that's my opinion Yeah, I think we're where we need to be there, and I'm not worried at all about that. yeah i think we're where we need to be there and i'm not worried at all about that There's a big market for us to address, and we're going after it. there's a big market for us to address and we're going after it

Speaker 8: Hi. You have Elizabeth Langan from Barclays. I had a question for Bob. Specifically, you touched on your ability to kind of move suppliers very quickly. Just in light of recent events, could you talk a little bit about where your rest of world exposure is, just generally as outside of China? Hi. hi You have Elizabeth Langan from Barclays. you have elizabeth langan from barclays I had a question for Bob. i had a question for bob Specifically, you touched on your ability to kind of move suppliers very quickly. specifically you touched on your ability to kind of move suppliers very quickly Just in light of recent events, could you talk a little bit about where your rest of world exposure is, just generally as outside of China? just in light of recent events could you talk a little bit about where your rest of world exposure is just generally as outside of china

Speaker 4: Oh, let's see. Exposure, that's a tough question. I didn't bring my crystal ball with me again today, so I don't know what's coming tomorrow. You know, we are constantly monitoring what's going on with tariffs. We all know what the Supreme Court decision was. You know, that's still unsettled as far as how that's gonna work. We know that immediately Section 122 were imposed, which could go up another 5%. So far that's been globally, so it hadn't individually picked out any particular country. I think the thing that we'll be focused on most looking into the future is where the new Section 301 tariffs focus at. That's where they'll be able to pinpoint tariffs on any particular country, on any particular product, and that will lead us to shift based on where that guides us to. Oh, let's see. oh let's see Exposure, that's a tough question. exposure that's a tough question I didn't bring my crystal ball with me again today, so I don't know what's coming tomorrow. i didn't bring my crystal ball with me again today so i don't know what's coming tomorrow You know, we are constantly monitoring what's going on with tariffs. you know we are constantly monitoring what's going on with tariffs We all know what the Supreme Court decision was. we all know what the supreme court decision was You know, that's still unsettled as far as how that's gonna work. you know that's still unsettled as far as how that's gonna work We know that immediately Section 122 were imposed, which could go up another 5%. we know that immediately section 122 were imposed which could go up another 5% So far that's been globally, so it hadn't individually picked out any particular country. so far that's been globally so it hadn't individually picked out any particular country I think the thing that we'll be focused on most looking into the future is where the new Section 301 tariffs focus at. i think the thing that we'll be focused on most looking into the future is where the new section 301 tariffs focus at That's where they'll be able to pinpoint tariffs on any particular country, on any particular product, and that will lead us to shift based on where that guides us to. that's where they'll be able to pinpoint tariffs on any particular country on any particular product and that will lead us to shift based on where that guides us to

Speaker 8: Thank you. Thank you. thank you

Speaker 11: We've got time for one more question, and then we'll go to break. All right. We've got time for one more question, and then we'll go to break. we've got time for one more question and then we'll go to break All right. all right

Speaker 10: All right. Great. All right. all right Great. great

Speaker 11: We'll wrap it up. We'll have about a 15-minute break. It's about 9:40 right now, so we'll be back here at 9:55. Thanks. Yeah. Test. Test. Test. All right. Thank you everyone. We're gonna get started with the next section. Everybody ready? I know I do. All right, we're gonna get started with Win the Pro. Thank you everybody for rejoining the presentation here today. We're excited to walk you through this section and really unpack what winning the pro means. Hopefully out of the, you know, the last section, you understood a bit more about owning the core, and you heard from, you know, Brett about how we're gonna continue to expand our business through category expansions. You heard from Bob and talked about, you know, operations. We'll wrap it up. we'll wrap it up We'll have about a 15-minute break. we'll have about a 15-minute break It's about 9:40 right now, so we'll be back here at 9:55. it's about 9:40 right now so we'll be back here at 9:55 Thanks. thanks Yeah. yeah Test. test Test. test Test. test All right. all right Thank you everyone. thank you everyone We're gonna get started with the next section. we're gonna get started with the next section Everybody ready? everybody ready I know I do. i know i do All right, we're gonna get started with Win the Pro. all right we're gonna get started with win the pro Thank you everybody for rejoining the presentation here today. thank you everybody for rejoining the presentation here today We're excited to walk you through this section and really unpack what winning the pro means. we're excited to walk you through this section and really unpack what winning the pro means Hopefully out of the, you know, the last section, you understood a bit more about owning the core, and you heard from, you know, Brett about how we're gonna continue to expand our business through category expansions. hopefully out of the you know the last section you understood a bit more about owning the core and you heard from you know brett about how we're gonna continue to expand our business through category expansions You heard from Bob and talked about, you know, operations. you heard from bob and talked about you know operations You heard from Scott, talked about our RDS business, and Aaron wrapped up the people portion, which is very important for us. It's one of our core values, our people first. I think when you bring all that together, the idea that you wanna take away from there is we have a solid core business, and we're ready to grow. That's how I wanna really start off where we are today. We've built this $1.6 billion company by taking care of our customers. You heard me say that. You're gonna hear me continue to say it. It's that important for us to make sure that that's the foundation. As we move into the pro markets, it's really important for us to understand a few things because when I talk about the pro internally, we get our teams excited. You heard from Scott, talked about our RDS business, and Aaron wrapped up the people portion, which is very important for us. you heard from scott talked about our rds business and aaron wrapped up the people portion which is very important for us It's one of our core values, our people first. it's one of our core values our people first I think when you bring all that together, the idea that you wanna take away from there is we have a solid core business, and we're ready to grow. i think when you bring all that together the idea that you wanna take away from there is we have a solid core business and we're ready to grow That's how I wanna really start off where we are today. that's how i wanna really start off where we are today We've built this $1.6 billion company by taking care of our customers. we've built this $1.6 billion company by taking care of our customers You heard me say that. you heard me say that You're gonna hear me continue to say it. you're gonna hear me continue to say it It's that important for us to make sure that that's the foundation. it's that important for us to make sure that that's the foundation As we move into the pro markets, it's really important for us to understand a few things because when I talk about the pro internally, we get our teams excited. as we move into the pro markets it's really important for us to understand a few things because when i talk about the pro internally we get our teams excited Brett shared about the national sales meeting where we talked about Power Pro for hours with our teams, and they rotated through. When you show them the power of the product, and no pun intended there, it's really important that they understand that they have that pro product that they can build off of. We've focused our pro businesses on pro products, but we've really done it from a retail lens in most cases. What you're gonna hear us talk about is the planned and the unplanned purchase. You think about the unplanned purchase. Brett shared about the national sales meeting where we talked about Power Pro for hours with our teams, and they rotated through. brett shared about the national sales meeting where we talked about power pro for hours with our teams and they rotated through When you show them the power of the product, and no pun intended there, it's really important that they understand that they have that pro product that they can build off of. when you show them the power of the product and no pun intended there it's really important that they understand that they have that pro product that they can build off of We've focused our pro businesses on pro products, but we've really done it from a retail lens in most cases. we've focused our pro businesses on pro products but we've really done it from a retail lens in most cases What you're gonna hear us talk about is the planned and the unplanned purchase. what you're gonna hear us talk about is the planned and the unplanned purchase You think about the unplanned purchase. you think about the unplanned purchase That is when somebody comes into a location, could be a retailer, could be an LBM yard, and they pick up something because they gotta finish up a job or a product. They're buying a pro product. That's this Power Pro screw that you all here in person see, but it's merchandised for a retail application. It's not for out the. Hear us talk about different terms, but that is important for us when you the pro and the opportunity, it's about having the right products and the infrastructure to deliver them. I want you to start with that foundation. I hope you felt that and saw that from our original presentation. As we move into it here, unlocking that pro and really building off of that foundation is very important. That is when somebody comes into a location, could be a retailer, could be an LBM yard, and they pick up something because they gotta finish up a job or a product. that is when somebody comes into a location could be a retailer could be an lbm yard and they pick up something because they gotta finish up a job or a product They're buying a pro product. they're buying a pro product That's this Power Pro screw that you all here in person see, but it's merchandised for a retail application. that's this power pro screw that you all here in person see but it's merchandised for a retail application It's not for out the. it's not for out the Hear us talk about different terms, but that is important for us when you the pro and the opportunity, it's about having the right products and the infrastructure to deliver them. hear us talk about different terms but that is important for us when you the pro and the opportunity it's about having the right products and the infrastructure to deliver them I want you to start with that foundation. i want you to start with that foundation I hope you felt that and saw that from our original presentation. i hope you felt that and saw that from our original presentation As we move into it here, unlocking that pro and really building off of that foundation is very important. as we move into it here unlocking that pro and really building off of that foundation is very important With our core secure, that's why we believe Hillman is ready to capitalize on this opportunity. What you're gonna hear over this section is from the leaders of the business about how we're gonna grow the pro opportunity. As we expand, it's let's start with where we play and where we'll grow. I already framed up the fact that we have a large, strong, solid retail business. We're not gonna waver there. We're gonna continue to build on that solid foundation. Part of that retail business is serving the pro. That is very important for us to understand. We're already in that market today, again, with the retail packages, the fasteners I just explained and shared with you is how we get there. With our core secure, that's why we believe Hillman is ready to capitalize on this opportunity. with our core secure that's why we believe hillman is ready to capitalize on this opportunity What you're gonna hear over this section is from the leaders of the business about how we're gonna grow the pro opportunity. what you're gonna hear over this section is from the leaders of the business about how we're gonna grow the pro opportunity As we expand, it's let's start with where we play and where we'll grow. as we expand it's let's start with where we play and where we'll grow I already framed up the fact that we have a large, strong, solid retail business. i already framed up the fact that we have a large strong solid retail business We're not gonna waver there. we're not gonna waver there We're gonna continue to build on that solid foundation. we're gonna continue to build on that solid foundation Part of that retail business is serving the pro. part of that retail business is serving the pro That is very important for us to understand. that is very important for us to understand We're already in that market today, again, with the retail packages, the fasteners I just explained and shared with you is how we get there. we're already in that market today again with the retail packages the fasteners i just explained and shared with you is how we get there As we move forward, it's really about the untapped opportunity that we're exploring and we'll exploit in the pro distribution side, and that's where we'll start to give you some insight as to how we're breaking down the market and the business. To this section, we'll really focus in on that retail pro distribution, and then industrial MRO about how we're gonna continue to take share. We have the products today. We have the infrastructure and the team to go drive it. Now it's about powering those resources and going after that growth. Enlarging our core markets is about how we actually take that center of the core, the $6.5 billion market that I shared earlier, and we expand it by looking at the categories where we can expand and grow outside into the pro. You take Builders Hardware. As we move forward, it's really about the untapped opportunity that we're exploring and we'll exploit in the pro distribution side, and that's where we'll start to give you some insight as to how we're breaking down the market and the business. as we move forward it's really about the untapped opportunity that we're exploring and we'll exploit in the pro distribution side and that's where we'll start to give you some insight as to how we're breaking down the market and the business To this section, we'll really focus in on that retail pro distribution, and then industrial MRO about how we're gonna continue to take share. to this section we'll really focus in on that retail pro distribution and then industrial mro about how we're gonna continue to take share We have the products today. we have the products today We have the infrastructure and the team to go drive it. we have the infrastructure and the team to go drive it Now it's about powering those resources and going after that growth. now it's about powering those resources and going after that growth Enlarging our core markets is about how we actually take that center of the core, the $6.5 billion market that I shared earlier, and we expand it by looking at the categories where we can expand and grow outside into the pro. enlarging our core markets is about how we actually take that center of the core the $6.5 billion market that i shared earlier and we expand it by looking at the categories where we can expand and grow outside into the pro You take Builders Hardware. you take builders hardware It's an example that Brett shared earlier. Pros are buying Builders Hardware today. They're not buying them from us because we focused on retail packaging. That's an opportunity for us to explore and give that Pro the product they need in the future. Pro distribution is. You're gonna hear us talk a little bit more about how going through Pro distribution, going purely to Pros the way they wanna be served is important and different. You all, we'll unpack and share with you exactly how we're gonna go after and do that. That $9.5 billion market as you expand away from the center is not a different market that we're not in today. We're already serving that Pro. We're gonna do it in a more meaningful way, and we'll explain to you how we're gonna do it. Then industrial MRO. It's an example that Brett shared earlier. it's an example that brett shared earlier Pros are buying Builders Hardware today. pros are buying builders hardware today They're not buying them from us because we focused on retail packaging. they're not buying them from us because we focused on retail packaging That's an opportunity for us to explore and give that Pro the product they need in the future. that's an opportunity for us to explore and give that pro the product they need in the future Pro distribution is. pro distribution is You're gonna hear us talk a little bit more about how going through Pro distribution, going purely to Pros the way they wanna be served is important and different. you're gonna hear us talk a little bit more about how going through pro distribution going purely to pros the way they wanna be served is important and different You all, we'll unpack and share with you exactly how we're gonna go after and do that. you all we'll unpack and share with you exactly how we're gonna go after and do that That $9.5 billion market as you expand away from the center is not a different market that we're not in today. that $9.5 billion market as you expand away from the center is not a different market that we're not in today We're already serving that Pro. we're already serving that pro We're gonna do it in a more meaningful way, and we'll explain to you how we're gonna do it. we're gonna do it in a more meaningful way and we'll explain to you how we're gonna do it Then industrial MRO. then industrial mro While it's a smaller market share opportunity, it is a big piece of our business in an area where we believe they focus on fastening. As I shared during the Q&A, adhesives in some of those different areas, that's where we can actually bring all these pieces together and give our end users what they need through our partners, whether retail, pro distribution, or industrial MRO. With that, I'll move over to market framing. This is where I'll go a little bit deeper. There's a lot on this slide, I understand. The big, big takeaway here is you understand that there's the markets that we serve, retail, pro distribution, industrial MRO. It's the customers we're gonna support in those areas. They are gonna continue to service the end users. This is not about a new strategy of us going direct to customer. While it's a smaller market share opportunity, it is a big piece of our business in an area where we believe they focus on fastening. while it's a smaller market share opportunity it is a big piece of our business in an area where we believe they focus on fastening As I shared during the Q&A, adhesives in some of those different areas, that's where we can actually bring all these pieces together and give our end users what they need through our partners, whether retail, pro distribution, or industrial MRO. as i shared during the q&a adhesives in some of those different areas that's where we can actually bring all these pieces together and give our end users what they need through our partners whether retail pro distribution or industrial mro With that, I'll move over to market framing. with that i'll move over to market framing This is where I'll go a little bit deeper. this is where i'll go a little bit deeper There's a lot on this slide, I understand. there's a lot on this slide i understand The big, big takeaway here is you understand that there's the markets that we serve, retail, pro distribution, industrial MRO. the big big takeaway here is you understand that there's the markets that we serve retail pro distribution industrial mro It's the customers we're gonna support in those areas. it's the customers we're gonna support in those areas They are gonna continue to service the end users. they are gonna continue to service the end users This is not about a new strategy of us going direct to customer. this is not about a new strategy of us going direct to customer We are gonna continue to focus on the concept of a master distributor, which we already have that model in our industrial MRO, but that's really how we operate in our retail business as well. We wanna bring our customers all the products they need to serve their end users, and that's where I turn to the end users. You think about retail. We've got DIY customers. You know that. You understand that today. Many of us in this room are DIY customers of those channels buying our products. We also have the small, medium remodelers, the home builders that are on the small side. They're buying pro-oriented products in retail today. We are gonna continue to focus on the concept of a master distributor, which we already have that model in our industrial MRO, but that's really how we operate in our retail business as well. we are gonna continue to focus on the concept of a master distributor which we already have that model in our industrial mro but that's really how we operate in our retail business as well We wanna bring our customers all the products they need to serve their end users, and that's where I turn to the end users. we wanna bring our customers all the products they need to serve their end users and that's where i turn to the end users You think about retail. you think about retail We've got DIY customers. we've got diy customers You know that. you know that You understand that today. you understand that today Many of us in this room are DIY customers of those channels buying our products. many of us in this room are diy customers of those channels buying our products We also have the small, medium remodelers, the home builders that are on the small side. we also have the small medium remodelers the home builders that are on the small side They're buying pro-oriented products in retail today. they're buying pro-oriented products in retail today Many of those pros are also buying through pro distribution, but we're not getting them the products they need because we've not focused on those areas, and we're gonna explain to you how we're gonna do that. This is a shift in focus from a pro product perspective, but it's not a shift in focus in taking care of our customers and ultimately the end users that they serve. As we really break this down, you're gonna see some of the you know, retail partners that we serve there today, how they're going after the pro. You can see examples of pro distribution partners. There's some that we do business with today and some that we will do business with in the future. Many of those pros are also buying through pro distribution, but we're not getting them the products they need because we've not focused on those areas, and we're gonna explain to you how we're gonna do that. many of those pros are also buying through pro distribution but we're not getting them the products they need because we've not focused on those areas and we're gonna explain to you how we're gonna do that This is a shift in focus from a pro product perspective, but it's not a shift in focus in taking care of our customers and ultimately the end users that they serve. this is a shift in focus from a pro product perspective but it's not a shift in focus in taking care of our customers and ultimately the end users that they serve As we really break this down, you're gonna see some of the you know, retail partners that we serve there today, how they're going after the pro. as we really break this down you're gonna see some of the you know retail partners that we serve there today how they're going after the pro You can see examples of pro distribution partners. you can see examples of pro distribution partners There's some that we do business with today and some that we will do business with in the future. there's some that we do business with today and some that we will do business with in the future That's really what you wanna understand here today, is that we are gonna continue to take the products we have today and sell them, more of those products to the customers that we're already serving. Now back to the overall market share. As we connect these two pieces, so we have the markets that we frame, the three that we have: retail, pro distribution, industrial MRO, and then we have the share in each of those areas. The 20% share that we have in the core, again, pro products will help us continue to expand and grow there. Brett gave you numerous examples of how we're gonna grow. We gotta support the DIY or the pro because retail will continue to expand in those areas, and we believe we have a right to continue to grow there. That's really what you wanna understand here today, is that we are gonna continue to take the products we have today and sell them, more of those products to the customers that we're already serving. that's really what you wanna understand here today is that we are gonna continue to take the products we have today and sell them more of those products to the customers that we're already serving Now back to the overall market share. now back to the overall market share As we connect these two pieces, so we have the markets that we frame, the three that we have: retail, pro distribution, industrial MRO, and then we have the share in each of those areas. as we connect these two pieces so we have the markets that we frame the three that we have retail pro distribution industrial mro and then we have the share in each of those areas The 20% share that we have in the core, again, pro products will help us continue to expand and grow there. the 20% share that we have in the core again pro products will help us continue to expand and grow there Brett gave you numerous examples of how we're gonna grow. brett gave you numerous examples of how we're gonna grow We gotta support the DIY or the pro because retail will continue to expand in those areas, and we believe we have a right to continue to grow there. we gotta support the diy or the pro because retail will continue to expand in those areas and we believe we have a right to continue to grow there The real exciting opportunity that we're gonna focus on in this section is gonna be pro distribution. We have a relatively small piece of the portfolio, and that's where we're gonna show you how we're gonna unpack that and break it down into the different pieces. That, to me, is what's most exciting about the opportunity that's in front of us. I'll turn here to what you're probably all asking is, "Okay, what does this business really look like that you say you're serving the pro?" You know we're a $1.6 billion company. About $1.1 billion is our DIY business, and over $400 million of it is in pro today, and that's made up of the three buckets. Our retail pro is over $215 million. The real exciting opportunity that we're gonna focus on in this section is gonna be pro distribution. the real exciting opportunity that we're gonna focus on in this section is gonna be pro distribution We have a relatively small piece of the portfolio, and that's where we're gonna show you how we're gonna unpack that and break it down into the different pieces. we have a relatively small piece of the portfolio and that's where we're gonna show you how we're gonna unpack that and break it down into the different pieces That, to me, is what's most exciting about the opportunity that's in front of us. that to me is what's most exciting about the opportunity that's in front of us I'll turn here to what you're probably all asking is, "Okay, what does this business really look like that you say you're serving the pro?" You know we're a $1.6 billion company. i'll turn here to what you're probably all asking is "okay what does this business really look like that you say you're serving the pro?" you know we're a $1.6 billion company About $1.1 billion is our DIY business, and over $400 million of it is in pro today, and that's made up of the three buckets. about $1.1 billion is our diy business and over $400 million of it is in pro today and that's made up of the three buckets Our retail pro is over $215 million. our retail pro is over $215 million We have our pro distribution piece, over $200 million that we have there, and then another $35 million industrial MRO. We're already servicing those customers today and ultimately those end users through that channel. What you should be excited about is this is not where Hillman's going to uncharted territories. We're there today, and we have. That's really what you're gonna hear us is we've been putting investments in in 2025 into 2026 to be able to go after these opportunities. You saw the team. I know I flashed it very quickly earlier in the presentation. Shortly, you're gonna hear from James Daly and Chris Martin. Both are now have pro responsibilities on our leadership team. Those roles did not exist a year ago. That is our commitment. We have our pro distribution piece, over $200 million that we have there, and then another $35 million industrial MRO. we have our pro distribution piece over $200 million that we have there and then another $35 million industrial mro We're already servicing those customers today and ultimately those end users through that channel. we're already servicing those customers today and ultimately those end users through that channel What you should be excited about is this is not where Hillman's going to uncharted territories. what you should be excited about is this is not where hillman's going to uncharted territories We're there today, and we have. we're there today and we have That's really what you're gonna hear us is we've been putting investments in in 2025 into 2026 to be able to go after these opportunities. that's really what you're gonna hear us is we've been putting investments in in 2025 into 2026 to be able to go after these opportunities You saw the team. you saw the team I know I flashed it very quickly earlier in the presentation. i know i flashed it very quickly earlier in the presentation Shortly, you're gonna hear from James Daly and Chris Martin. shortly you're gonna hear from james daly and chris martin Both are now have pro responsibilities on our leadership team. both are now have pro responsibilities on our leadership team Those roles did not exist a year ago. those roles did not exist a year ago That is our commitment. that is our commitment It's not just those two individuals, the teams that they have that they're focused on in taking care of the pro, and that's why we know we're confident, and that's why we know we're gonna be successful in these areas, 'cause we're already starting to see the flywheel turn. We're already servicing these markets today. This is about us building on it. We're gonna go into greater detail about those pieces of how we actually do that in the splits in a moment. It's really about you taking away from this page is we are making and creating the products necessary to serve these channels. I'm really excited about what Chris and Tim and some of our product teams are gonna share with you, and some of you are on a demo taking the example, the Power Pro product we have today. It's not just those two individuals, the teams that they have that they're focused on in taking care of the pro, and that's why we know we're confident, and that's why we know we're gonna be successful in these areas, 'cause we're already starting to see the flywheel turn. it's not just those two individuals the teams that they have that they're focused on in taking care of the pro and that's why we know we're confident and that's why we know we're gonna be successful in these areas 'cause we're already starting to see the flywheel turn We're already servicing these markets today. we're already servicing these markets today This is about us building on it. this is about us building on it We're gonna go into greater detail about those pieces of how we actually do that in the splits in a moment. we're gonna go into greater detail about those pieces of how we actually do that in the splits in a moment It's really about you taking away from this page is we are making and creating the products necessary to serve these channels. it's really about you taking away from this page is we are making and creating the products necessary to serve these channels I'm really excited about what Chris and Tim and some of our product teams are gonna share with you, and some of you are on a demo taking the example, the Power Pro product we have today. i'm really excited about what chris and tim and some of our product teams are gonna share with you and some of you are on a demo taking the example the power pro product we have today We're designing and engineering those products in our facilities. We have great engineers up in Canada and in the U.S. here working together to innovate screws and fasteners. We're not just taking things off the shelf and show 'em, throw 'em into this channel. We're driving innovative products that we're selling through our channels today that we're gonna sell more of over in the future. This extension in where we are, I hope you can see not only the confidence, but the passion I have behind this, because this is an area that is not being served the way they need to be served today, and I know that the Hillman team can go capitalize on that. Moving forward, we'll turn into what do these buckets really look like. First, scaling with our retail partners. We're designing and engineering those products in our facilities. we're designing and engineering those products in our facilities We have great engineers up in Canada and in the U.S. here working together to innovate screws and fasteners. we have great engineers up in canada and in the u.s here working together to innovate screws and fasteners We're not just taking things off the shelf and show 'em, throw 'em into this channel. we're not just taking things off the shelf and show 'em throw 'em into this channel We're driving innovative products that we're selling through our channels today that we're gonna sell more of over in the future. we're driving innovative products that we're selling through our channels today that we're gonna sell more of over in the future This extension in where we are, I hope you can see not only the confidence, but the passion I have behind this, because this is an area that is not being served the way they need to be served today, and I know that the Hillman team can go capitalize on that. this extension in where we are i hope you can see not only the confidence but the passion i have behind this because this is an area that is not being served the way they need to be served today and i know that the hillman team can go capitalize on that Moving forward, we'll turn into what do these buckets really look like. moving forward we'll turn into what do these buckets really look like First, scaling with our retail partners. first scaling with our retail partners We said earlier how our retail partners are continuing to grow in Pro. Many of you cover them and spend time on them today. They are not only in their core four walls of the big retailers there today, but they're acquiring businesses in this space. They are asking for true partners to continue to move forward with them. That's what we're doing. We're supporting them today in their Pro initiatives, and we're gonna even support them more greatly in the future. James is gonna go really deep on this, so I'll just touch the surface. Specialty distribution. We don't talk about it publicly in great detail, but we have, for example, our ST Fastening Systems business down in Texas, where we design, develop, and manufacture innovative hardware products and fasteners for the metal roofing, metal siding industry. We said earlier how our retail partners are continuing to grow in Pro. we said earlier how our retail partners are continuing to grow in pro Many of you cover them and spend time on them today. many of you cover them and spend time on them today They are not only in their core four walls of the big retailers there today, but they're acquiring businesses in this space. they are not only in their core four walls of the big retailers there today but they're acquiring businesses in this space They are asking for true partners to continue to move forward with them. they are asking for true partners to continue to move forward with them That's what we're doing. that's what we're doing We're supporting them today in their Pro initiatives, and we're gonna even support them more greatly in the future. we're supporting them today in their pro initiatives and we're gonna even support them more greatly in the future James is gonna go really deep on this, so I'll just touch the surface. james is gonna go really deep on this so i'll just touch the surface Specialty distribution. specialty distribution We don't talk about it publicly in great detail, but we have, for example, our ST Fastening Systems business down in Texas, where we design, develop, and manufacture innovative hardware products and fasteners for the metal roofing, metal siding industry. we don't talk about it publicly in great detail but we have for example our st fastening systems business down in texas where we design develop and manufacture innovative hardware products and fasteners for the metal roofing metal siding industry Chris will go really deep on what it takes to win there, but we're already in this space here today with great products, and we lead our categories in that area as well, and we'll build on it. I'll talk to you a little bit about LBM. This is not about us selling building materials into the LBM channel. This is about selling fasteners and our other hardware products to the LBM channel. We already do $100 million of business there today. Our men and women out in the field that we love, they go drive our business, are out there servicing the showroom. Chris will go really deep on what it takes to win there, but we're already in this space here today with great products, and we lead our categories in that area as well, and we'll build on it. chris will go really deep on what it takes to win there but we're already in this space here today with great products and we lead our categories in that area as well and we'll build on it I'll talk to you a little bit about LBM. i'll talk to you a little bit about lbm This is not about us selling building materials into the LBM channel. this is not about us selling building materials into the lbm channel This is about selling fasteners and our other hardware products to the LBM channel. this is about selling fasteners and our other hardware products to the lbm channel We already do $100 million of business there today. we already do $100 million of business there today Our men and women out in the field that we love, they go drive our business, are out there servicing the showroom. our men and women out in the field that we love they go drive our business are out there servicing the showroom We don't spend the time on the yard in the planned purchase, and that's what's gonna change in the future. We're putting resources to go after it. That gives you a roadmap of where we're going, and now we'll go into more detail about how we're gonna capitalize on it. If I was you, I'd be asking, okay, you have the competencies to win in retail. Brett did a great job of framing this up earlier, but how does it translate to pro? We don't spend the time on the yard in the planned purchase, and that's what's gonna change in the future. we don't spend the time on the yard in the planned purchase and that's what's gonna change in the future We're putting resources to go after it. we're putting resources to go after it That gives you a roadmap of where we're going, and now we'll go into more detail about how we're gonna capitalize on it. that gives you a roadmap of where we're going and now we'll go into more detail about how we're gonna capitalize on it If I was you, I'd be asking, okay, you have the competencies to win in retail. if i was you i'd be asking okay you have the competencies to win in retail Brett did a great job of framing this up earlier, but how does it translate to pro? brett did a great job of framing this up earlier but how does it translate to pro We'll break this down in each of the sections, but what's really important here is the foundation we have as I started out this section, and what we've accomplished and what we put in place from our global sourcing and our operations team to our sales team, to our product teams, are out there servicing and developing the products and getting them to our customers. We're gonna build on that. We're gonna use those competencies like our product breadth, things like innovation, our ability to category manage and give them the product they need, drive sales, distribution, and operations. The idea is we're gonna cross that over, and we're gonna actually make it make sense inside of each of the channels 'cause they do operate differently. We're not gonna just take our retail playbook and think we're gonna go win with the pro. We'll break this down in each of the sections, but what's really important here is the foundation we have as I started out this section, and what we've accomplished and what we put in place from our global sourcing and our operations team to our sales team, to our product teams, are out there servicing and developing the products and getting them to our customers. we'll break this down in each of the sections but what's really important here is the foundation we have as i started out this section and what we've accomplished and what we put in place from our global sourcing and our operations team to our sales team to our product teams are out there servicing and developing the products and getting them to our customers We're gonna build on that. we're gonna build on that We're gonna use those competencies like our product breadth, things like innovation, our ability to category manage and give them the product they need, drive sales, distribution, and operations. we're gonna use those competencies like our product breadth things like innovation our ability to category manage and give them the product they need drive sales distribution and operations The idea is we're gonna cross that over, and we're gonna actually make it make sense inside of each of the channels 'cause they do operate differently. the idea is we're gonna cross that over and we're gonna actually make it make sense inside of each of the channels 'cause they do operate differently We're not gonna just take our retail playbook and think we're gonna go win with the pro. we're not gonna just take our retail playbook and think we're gonna go win with the pro This is about tailoring the resources and making sure that we capitalize on the capability we have today. I wanna bring up the point here also is that we have businesses that have been serving the pro for decades. I mentioned Paulin up in Canada, over 100 years servicing the pro. We've been doing the same thing here in the Hillman business for over 60 years. That's where some of our first sales started, was in the LBM channels. This is not us about starting out in an area where we haven't been before. That's why we're excited about it 'cause we gained traction. Our customers in those channels are excited we wanna bring them more products and more services and more capability. As we move into the next chapter here, I wanted to really focus on Power Pro. This is about tailoring the resources and making sure that we capitalize on the capability we have today. this is about tailoring the resources and making sure that we capitalize on the capability we have today I wanna bring up the point here also is that we have businesses that have been serving the pro for decades. i wanna bring up the point here also is that we have businesses that have been serving the pro for decades I mentioned Paulin up in Canada, over 100 years servicing the pro. i mentioned paulin up in canada over 100 years servicing the pro We've been doing the same thing here in the Hillman business for over 60 years. we've been doing the same thing here in the hillman business for over 60 years That's where some of our first sales started, was in the LBM channels. that's where some of our first sales started was in the lbm channels This is not us about starting out in an area where we haven't been before. this is not us about starting out in an area where we haven't been before That's why we're excited about it 'cause we gained traction. that's why we're excited about it 'cause we gained traction Our customers in those channels are excited we wanna bring them more products and more services and more capability. our customers in those channels are excited we wanna bring them more products and more services and more capability As we move into the next chapter here, I wanted to really focus on Power Pro. as we move into the next chapter here i wanted to really focus on power pro Really passionate about this brand, and it is a brand that's been built over 20 years. Our teams has designed and innovative products. You all have samples here, those of you in the room, of Power Pro fasteners. They're industry's best. You're gonna see this in action on the product demo tours. It's not just one fastener or one idea. Our team's been really leaning into this category and developing innovative products that we can actually bring to the market to be able to give pros and DIYers alike what they need in a, the great performance. Just last month, we were at IBS, so the International Builders' Show. We're proud to show off Power Pro. It's the second time we've ever been there. This is something we leaned into. Really passionate about this brand, and it is a brand that's been built over 20 years. really passionate about this brand and it is a brand that's been built over 20 years Our teams has designed and innovative products. our teams has designed and innovative products You all have samples here, those of you in the room, of Power Pro fasteners. you all have samples here those of you in the room of power pro fasteners They're industry's best. they're industry's best You're gonna see this in action on the product demo tours. you're gonna see this in action on the product demo tours It's not just one fastener or one idea. it's not just one fastener or one idea Our team's been really leaning into this category and developing innovative products that we can actually bring to the market to be able to give pros and DIYers alike what they need in a, the great performance. our team's been really leaning into this category and developing innovative products that we can actually bring to the market to be able to give pros and diyers alike what they need in a the great performance Just last month, we were at IBS, so the International Builders' Show. just last month we were at ibs so the international builders' show We're proud to show off Power Pro. we're proud to show off power pro It's the second time we've ever been there. it's the second time we've ever been there This is something we leaned into. this is something we leaned into We got to interact with customers, with end users, and different people, show them the comprehensive scale and breadth of that category. It's not just one set of screws. We've got Structural Screws. As you, if you went through the demo, you could see all the different parts of a structure where our fasteners come into play. That's what's really exciting about this brand, that we've grown from what it started at 0 to $100 million, we've really only leaned into in the last three or four years. What I'm really excited, in the last year, we grew this at 9% because of the product marketing teams really driving this brand. We're gonna continue to power it with our focus on the Pro, and we have the positioning to do it. We got to interact with customers, with end users, and different people, show them the comprehensive scale and breadth of that category. we got to interact with customers with end users and different people show them the comprehensive scale and breadth of that category It's not just one set of screws. it's not just one set of screws We've got Structural Screws. we've got structural screws As you, if you went through the demo, you could see all the different parts of a structure where our fasteners come into play. as you if you went through the demo you could see all the different parts of a structure where our fasteners come into play That's what's really exciting about this brand, that we've grown from what it started at 0 to $100 million, we've really only leaned into in the last three or four years. that's what's really exciting about this brand that we've grown from what it started at 0 to $100 million we've really only leaned into in the last three or four years What I'm really excited, in the last year, we grew this at 9% because of the product marketing teams really driving this brand. what i'm really excited in the last year we grew this at 9% because of the product marketing teams really driving this brand We're gonna continue to power it with our focus on the Pro, and we have the positioning to do it. we're gonna continue to power it with our focus on the pro and we have the positioning to do it That's our overview of where we are and how, hopefully, you can take away from this section how we have the capability, the foundation, we're taking care of the customers today, and how we're gonna translate that and grow with the Pro in the different areas. With that, I'd like to welcome up to the stage James Daly, our SVP of Pro, and he's gonna walk you through the residential Pro and how he's gonna expand in those areas. Thank you. That's our overview of where we are and how, hopefully, you can take away from this section how we have the capability, the foundation, we're taking care of the customers today, and how we're gonna translate that and grow with the Pro in the different areas. that's our overview of where we are and how hopefully you can take away from this section how we have the capability the foundation we're taking care of the customers today and how we're gonna translate that and grow with the pro in the different areas With that, I'd like to welcome up to the stage James Daly, our SVP of Pro, and he's gonna walk you through the residential Pro and how he's gonna expand in those areas. with that i'd like to welcome up to the stage james daly our svp of pro and he's gonna walk you through the residential pro and how he's gonna expand in those areas Thank you. thank you

Speaker 9: Thanks, Jamie. Good afternoon. Let's talk a little Pro. Okay. We've been talking about it all day a little bit here and there. We're gonna get into some more detail. Okay. We're pretty excited about the Pro, as you can hear from Jon Michael Adinolfi and the team. Thanks, Jamie. thanks jamie Good afternoon. good afternoon Let's talk a little Pro. let's talk a little pro Okay. okay We've been talking about it all day a little bit here and there. we've been talking about it all day a little bit here and there We're gonna get into some more detail. we're gonna get into some more detail Okay. okay We're pretty excited about the Pro, as you can hear from Jon Michael Adinolfi and the team. we're pretty excited about the pro as you can hear from jon michael adinolfi and the team Chris Martin will get up and talk a little bit about specialty, and then we'll do some Q&A. We'll start with James Daly, Senior Vice President of Pro. I bring extensive experience in the fastening and hardware industry channels. Seven years with ABC Supply, six years with Home Depot, a couple years with Mohawk Industries. I joined Hillman in 2021. Best decision I ever made. Fantastic. I've been here since 2021. I've managed several areas of the business development, sales, product category, all focused on driving sales, expanding margins. Throughout my career, I've had an interest in the pro, either through the retail channel or through distribution. I've always had to take retail programs and then tailor them to the pro, so it's a dual sourcing or a dual sales channel. Chris Martin will get up and talk a little bit about specialty, and then we'll do some Q&A. chris martin will get up and talk a little bit about specialty and then we'll do some q&a We'll start with James Daly, Senior Vice President of Pro. we'll start with james daly senior vice president of pro I bring extensive experience in the fastening and hardware industry channels. i bring extensive experience in the fastening and hardware industry channels Seven years with ABC Supply, six years with Home Depot, a couple years with Mohawk Industries. seven years with abc supply six years with home depot a couple years with mohawk industries I joined Hillman in 2021. i joined hillman in 2021 Best decision I ever made. best decision i ever made Fantastic. fantastic I've been here since 2021. i've been here since 2021 I've managed several areas of the business development, sales, product category, all focused on driving sales, expanding margins. i've managed several areas of the business development sales product category all focused on driving sales expanding margins Throughout my career, I've had an interest in the pro, either through the retail channel or through distribution. throughout my career i've had an interest in the pro either through the retail channel or through distribution I've always had to take retail programs and then tailor them to the pro, so it's a dual sourcing or a dual sales channel. i've always had to take retail programs and then tailor them to the pro so it's a dual sourcing or a dual sales channel The Pro has been part of what we do since the beginning, and now we're really leaning in, and we're gonna really focus on that Pro, and I am excited to leverage all that experience to lead us into the Pro channel. Let's begin. Let's take a look at the Pro landscape with our retail partners. Today, we already do $215 million in Hillman retail Pro revenue, serving Pro customers through our retail partners. We support in-store unplanned Pro purchases through our Pro product assortments on retail shelves, capturing that ever-important last mile purchase. That is an important part for the Pro because they cannot finish the job unless we are there in stock, on shelf, with the Pro materials they need to finish that job. Okay? This service has made our retail Pro business very strong and very respected. The Pro has been part of what we do since the beginning, and now we're really leaning in, and we're gonna really focus on that Pro, and I am excited to leverage all that experience to lead us into the Pro channel. the pro has been part of what we do since the beginning and now we're really leaning in and we're gonna really focus on that pro and i am excited to leverage all that experience to lead us into the pro channel Let's begin. let's begin Let's take a look at the Pro landscape with our retail partners. let's take a look at the pro landscape with our retail partners Today, we already do $215 million in Hillman retail Pro revenue, serving Pro customers through our retail partners. today we already do $215 million in hillman retail pro revenue serving pro customers through our retail partners We support in-store unplanned Pro purchases through our Pro product assortments on retail shelves, capturing that ever-important last mile purchase. we support in-store unplanned pro purchases through our pro product assortments on retail shelves capturing that ever-important last mile purchase That is an important part for the Pro because they cannot finish the job unless we are there in stock, on shelf, with the Pro materials they need to finish that job. that is an important part for the pro because they cannot finish the job unless we are there in stock on shelf with the pro materials they need to finish that job Okay? okay This service has made our retail Pro business very strong and very respected. this service has made our retail pro business very strong and very respected We own the shelf. We're there to support our pro partners as they need that last mile run. Now we will take those learnings and those capabilities and start to expand them. The opportunity at retail continues to grow. Our customers are adding dedicated pro divisions to better serve medium to large-sized pros, fulfilling purchases through flatbed and bulk distribution centers. We own the shelf. we own the shelf We're there to support our pro partners as they need that last mile run. we're there to support our pro partners as they need that last mile run Now we will take those learnings and those capabilities and start to expand them. now we will take those learnings and those capabilities and start to expand them The opportunity at retail continues to grow. the opportunity at retail continues to grow Our customers are adding dedicated pro divisions to better serve medium to large-sized pros, fulfilling purchases through flatbed and bulk distribution centers. our customers are adding dedicated pro divisions to better serve medium to large-sized pros fulfilling purchases through flatbed and bulk distribution centers Increasingly, they're also delivering direct to the job site, okay, completing that circle. This creates significant opportunity for Hillman to expand our share of wallet, support our retail partners, and grow rapidly into the expanding pro market. Okay. Hillman is a trusted partner to the largest retailers in home improvement. With more than 60 years of leadership in fastening and hardware categories. We built this business by supporting retail channel and partnering closely with our customers. Now, we are extending those capabilities into the residential pro channel, continuing to support our valued partners while unlocking new sales potential for Hillman. The unlock here is what's key, okay, 'cause we have the last mile. Now we're unlocking new opportunities and new ways to get at that existing pro customer. We have won 17 Vendor of the Year awards from our retail partners over the last several years. Increasingly, they're also delivering direct to the job site, okay, completing that circle. increasingly they're also delivering direct to the job site okay completing that circle This creates significant opportunity for Hillman to expand our share of wallet, support our retail partners, and grow rapidly into the expanding pro market. this creates significant opportunity for hillman to expand our share of wallet support our retail partners and grow rapidly into the expanding pro market Okay. okay Hillman is a trusted partner to the largest retailers in home improvement. hillman is a trusted partner to the largest retailers in home improvement With more than 60 years of leadership in fastening and hardware categories. with more than 60 years of leadership in fastening and hardware categories We built this business by supporting retail channel and partnering closely with our customers. we built this business by supporting retail channel and partnering closely with our customers Now, we are extending those capabilities into the residential pro channel, continuing to support our valued partners while unlocking new sales potential for Hillman. now we are extending those capabilities into the residential pro channel continuing to support our valued partners while unlocking new sales potential for hillman The unlock here is what's key, okay, 'cause we have the last mile. the unlock here is what's key okay 'cause we have the last mile Now we're unlocking new opportunities and new ways to get at that existing pro customer. now we're unlocking new opportunities and new ways to get at that existing pro customer We have won 17 Vendor of the Year awards from our retail partners over the last several years. we have won 17 vendor of the year awards from our retail partners over the last several years Our track record, we aim to continue as we expand into pro. Our dedicated residential pro sales team works daily to drive results for Hillman and our customers. With strong positioning across primary categories at key retailers, this extension is a natural evolution for us to continue to grow this company, okay. This is not that different than what we do today. We're just expanding these capabilities, okay. Our retail partners trust Hillman to expand pro with them because of our product depth, sourcing capabilities, credibility, and our service mindset. We see four main advantages that position us to win in the pro market. First, and most importantly, product is always king. You have to have the products. We already have nearly all the products contractors need. Historically, these were packaged for retail shelves, as Jon Michael mentioned. Our track record, we aim to continue as we expand into pro. our track record we aim to continue as we expand into pro Our dedicated residential pro sales team works daily to drive results for Hillman and our customers. our dedicated residential pro sales team works daily to drive results for hillman and our customers With strong positioning across primary categories at key retailers, this extension is a natural evolution for us to continue to grow this company, okay. with strong positioning across primary categories at key retailers this extension is a natural evolution for us to continue to grow this company okay This is not that different than what we do today. this is not that different than what we do today We're just expanding these capabilities, okay. we're just expanding these capabilities okay Our retail partners trust Hillman to expand pro with them because of our product depth, sourcing capabilities, credibility, and our service mindset. our retail partners trust hillman to expand pro with them because of our product depth sourcing capabilities credibility and our service mindset We see four main advantages that position us to win in the pro market. we see four main advantages that position us to win in the pro market First, and most importantly, product is always king. first and most importantly product is always king You have to have the products. you have to have the products We already have nearly all the products contractors need. we already have nearly all the products contractors need Historically, these were packaged for retail shelves, as Jon Michael mentioned. historically these were packaged for retail shelves as jon michael mentioned Now we are reconfiguring pack sizes and piece counts with our engineering and sourcing teams to align with how pro customers buy at competitive price points. We also bring brands. For example, Power Pro has been in the market for over 20 years. Contractors know and trust it. It started in the pro space, okay. We already have a full line of professional-grade products from trim screws to structural screws in our portfolio for the professional customers. We will continue to expand that product category and that brand. Okay, second, sourcing. As Bob Davis shared earlier, we bring in thousands of containers annually, moving freight at competitive rates, and negotiating directly with our factories. Our sourcing offices across Southeast Asia, combined with some of the most experienced teams in the industry, provide scale and cost advantages. Now we are reconfiguring pack sizes and piece counts with our engineering and sourcing teams to align with how pro customers buy at competitive price points. now we are reconfiguring pack sizes and piece counts with our engineering and sourcing teams to align with how pro customers buy at competitive price points We also bring brands. we also bring brands For example, Power Pro has been in the market for over 20 years. for example power pro has been in the market for over 20 years Contractors know and trust it. contractors know and trust it It started in the pro space, okay. it started in the pro space okay We already have a full line of professional-grade products from trim screws to structural screws in our portfolio for the professional customers. we already have a full line of professional-grade products from trim screws to structural screws in our portfolio for the professional customers We will continue to expand that product category and that brand. we will continue to expand that product category and that brand Okay, second, sourcing. okay second sourcing As Bob Davis shared earlier, we bring in thousands of containers annually, moving freight at competitive rates, and negotiating directly with our factories. as bob davis shared earlier we bring in thousands of containers annually moving freight at competitive rates and negotiating directly with our factories Our sourcing offices across Southeast Asia, combined with some of the most experienced teams in the industry, provide scale and cost advantages. our sourcing offices across southeast asia combined with some of the most experienced teams in the industry provide scale and cost advantages As Bob mentioned, he'll be in Asia next month, hand-to-hand combat, making sure we're getting them both the best prices, the best qualities with some of the best factories that are out there. Our dual faucet strategy allows us to react quickly to changing market conditions, ensuring product flows through our distribution centers that pro customers get what they need when they need it. There's no option to not be in stock when a pro customer needs an item. Okay, we are the job completers. We are the hardware department, so we will be there for them. Once product lands, we move them efficiently through our national network of 24 DCs, shipping directly to our customers, flatbed, and their bulk DCs. Okay. Ensuring consistent supply, competitive pricing, and job lot quantities that pros require. Third, most near and dear to my heart, is our sales team. As Bob mentioned, he'll be in Asia next month, hand-to-hand combat, making sure we're getting them both the best prices, the best qualities with some of the best factories that are out there. as bob mentioned he'll be in asia next month hand-to-hand combat making sure we're getting them both the best prices the best qualities with some of the best factories that are out there Our dual faucet strategy allows us to react quickly to changing market conditions, ensuring product flows through our distribution centers that pro customers get what they need when they need it. our dual faucet strategy allows us to react quickly to changing market conditions ensuring product flows through our distribution centers that pro customers get what they need when they need it There's no option to not be in stock when a pro customer needs an item. there's no option to not be in stock when a pro customer needs an item Okay, we are the job completers. okay we are the job completers We are the hardware department, so we will be there for them. we are the hardware department so we will be there for them Once product lands, we move them efficiently through our national network of 24 DCs, shipping directly to our customers, flatbed, and their bulk DCs. once product lands we move them efficiently through our national network of 24 dcs shipping directly to our customers flatbed and their bulk dcs Okay. okay Ensuring consistent supply, competitive pricing, and job lot quantities that pros require. ensuring consistent supply competitive pricing and job lot quantities that pros require Third, most near and dear to my heart, is our sales team. third most near and dear to my heart is our sales team Our sales team for the Pro averages more than 20 years of industry experience. Retail Pro, residential Pro, construction experience over 20 years. They call directly on Pro merchants and field selling teams. In-market teams are selling to the end users, okay. We are supporting the folks that are selling to those end users. Think about everything we're covering here. They have a big basket of stuff that they could do and leverage to go sell to those customers. We are also supported by over 4,000 employees, more than 1,000 in service, logistics, and operations, ensuring that when the Pro calls and picks up the phone, somebody at Hillman is here to answer the phone, okay. If they can't get a hold of somebody, they can call me directly. Our sales team for the Pro averages more than 20 years of industry experience. our sales team for the pro averages more than 20 years of industry experience Retail Pro, residential Pro, construction experience over 20 years. retail pro residential pro construction experience over 20 years They call directly on Pro merchants and field selling teams. they call directly on pro merchants and field selling teams In-market teams are selling to the end users, okay. in-market teams are selling to the end users okay We are supporting the folks that are selling to those end users. we are supporting the folks that are selling to those end users Think about everything we're covering here. think about everything we're covering here They have a big basket of stuff that they could do and leverage to go sell to those customers. they have a big basket of stuff that they could do and leverage to go sell to those customers We are also supported by over 4,000 employees, more than 1,000 in service, logistics, and operations, ensuring that when the Pro calls and picks up the phone, somebody at Hillman is here to answer the phone, okay. we are also supported by over 4,000 employees more than 1,000 in service logistics and operations ensuring that when the pro calls and picks up the phone somebody at hillman is here to answer the phone okay If they can't get a hold of somebody, they can call me directly. if they can't get a hold of somebody they can call me directly Our pro sales team adapts quickly to customer needs and resolves issues as they arrive by combining deep product knowledge with a world-class operations model, and they deliver a seamless solution-based approach that supports all of our pro customers' needs. Finally, our financial strength. Hillman's strong balance sheet positions us to scale effectively as we grow in the pro channel, providing the resources to capture opportunities and drive incremental growth. The opportunity here is clear. We have the products, operational infrastructure, and the trusted brands that pros know. Backed by an experienced sales team and well-positioned, we are well-positioned to capture the market and accelerate our growth in this space. One example of how we're entering the pro market is with a complete bulk product offering. This approach simplifies procurement for pro distribution and increases fastener attach rate. Our pro sales team adapts quickly to customer needs and resolves issues as they arrive by combining deep product knowledge with a world-class operations model, and they deliver a seamless solution-based approach that supports all of our pro customers' needs. our pro sales team adapts quickly to customer needs and resolves issues as they arrive by combining deep product knowledge with a world-class operations model and they deliver a seamless solution-based approach that supports all of our pro customers' needs Finally, our financial strength. finally our financial strength Hillman's strong balance sheet positions us to scale effectively as we grow in the pro channel, providing the resources to capture opportunities and drive incremental growth. hillman's strong balance sheet positions us to scale effectively as we grow in the pro channel providing the resources to capture opportunities and drive incremental growth The opportunity here is clear. the opportunity here is clear We have the products, operational infrastructure, and the trusted brands that pros know. we have the products operational infrastructure and the trusted brands that pros know Backed by an experienced sales team and well-positioned, we are well-positioned to capture the market and accelerate our growth in this space. backed by an experienced sales team and well-positioned we are well-positioned to capture the market and accelerate our growth in this space One example of how we're entering the pro market is with a complete bulk product offering. one example of how we're entering the pro market is with a complete bulk product offering This approach simplifies procurement for pro distribution and increases fastener attach rate. this approach simplifies procurement for pro distribution and increases fastener attach rate As a reminder, attach rate is how often a customer buys a secondary item with a primary item. Think drywall screws and drywall. It's a very important part of our business. As a reminder, attach rate is how often a customer buys a secondary item with a primary item. as a reminder attach rate is how often a customer buys a secondary item with a primary item Think drywall screws and drywall. think drywall screws and drywall It's a very important part of our business. it's a very important part of our business Our bulk products are configured to pro expectations and volumes, okay, those volumes that support wholesale pricing. A simple brown box with a practical piece count can drive attach rates upward, driving more revenue and value for us and our customers and our distributors. Currently, the average pro attach rate is a fraction of what it is in store. By ensuring fasteners become a well-adapted planned purchase, we can grow sales, gain market share from local suppliers, and unlock long-term stable growth. You know, as I conclude my section, several key points stand out to me. First, our large retail customers have already moved, and they will continue to move into this pro space. We are uniquely positioned to support them. Our bulk products are configured to pro expectations and volumes, okay, those volumes that support wholesale pricing. our bulk products are configured to pro expectations and volumes okay those volumes that support wholesale pricing A simple brown box with a practical piece count can drive attach rates upward, driving more revenue and value for us and our customers and our distributors. a simple brown box with a practical piece count can drive attach rates upward driving more revenue and value for us and our customers and our distributors Currently, the average pro attach rate is a fraction of what it is in store. currently the average pro attach rate is a fraction of what it is in store By ensuring fasteners become a well-adapted planned purchase, we can grow sales, gain market share from local suppliers, and unlock long-term stable growth. by ensuring fasteners become a well-adapted planned purchase we can grow sales gain market share from local suppliers and unlock long-term stable growth You know, as I conclude my section, several key points stand out to me. you know as i conclude my section several key points stand out to me First, our large retail customers have already moved, and they will continue to move into this pro space. first our large retail customers have already moved and they will continue to move into this pro space We are uniquely positioned to support them. we are uniquely positioned to support them Second, we have the products that pros want, the supply chain to support the business, and a dedicated pro sales team ready to drive incremental sales for both Hillman and our customers. Third, significant growth opportunities already exist within the channel, such as bulk offering, which can increase attach rates in pro and pro distribution. Overall, Hillman is well-positioned to capture pro market share and drive meaningful growth. We are locked in, and we are ready to go. Thank you very much for your time today. I'll hand it over to Chris Martin to talk about specialty pro distribution. Second, we have the products that pros want, the supply chain to support the business, and a dedicated pro sales team ready to drive incremental sales for both Hillman and our customers. second we have the products that pros want the supply chain to support the business and a dedicated pro sales team ready to drive incremental sales for both hillman and our customers Third, significant growth opportunities already exist within the channel, such as bulk offering, which can increase attach rates in pro and pro distribution. third significant growth opportunities already exist within the channel such as bulk offering which can increase attach rates in pro and pro distribution Overall, Hillman is well-positioned to capture pro market share and drive meaningful growth. overall hillman is well-positioned to capture pro market share and drive meaningful growth We are locked in, and we are ready to go. we are locked in and we are ready to go Thank you very much for your time today. thank you very much for your time today I'll hand it over to Chris Martin to talk about specialty pro distribution. i'll hand it over to chris martin to talk about specialty pro distribution

Speaker 7: Thanks, James. I'm Chris Martin. I lead Hillman Specialty Distribution and Industrial MRO Business. Before I joined Hillman, I spent time at HD Supply, Beacon Roofing Supply, Stanley Black & Decker, and Keurig Dr Pepper. Thanks, James. thanks james I'm Chris Martin. i'm chris martin I lead Hillman Specialty Distribution and Industrial MRO Business. i lead hillman specialty distribution and industrial mro business Before I joined Hillman, I spent time at HD Supply, Beacon Roofing Supply, Stanley Black & Decker, and Keurig Dr Pepper. before i joined hillman i spent time at hd supply beacon roofing supply stanley black & decker and keurig dr pepper I was primarily focused on supply chain distribution, acquisition integration, and professional contractor markets. Our team at Hillman serves professional contractors, specialty distributors, and industrial customers with fastening and supply solutions used in various applications. An example of this is our ST fastening business, which Jon Michael mentioned earlier. It's a $100 million specialty fastener platform, and it supports demanding applications like metal roofing and other building systems. What's important to understand is that in the professional fastener market, there's two different product needs. First, are high volume construction fasteners. These are products used in large quantities for applications like drywall, framing, and the building envelope. Second are specialized fasteners that are engineered for specific materials, coatings, environments, or performance requirements like metal roofing screws. Hillman's advantage is that our platform supports both. For construction fasteners, customers value availability, price, and sourcing scale. I was primarily focused on supply chain distribution, acquisition integration, and professional contractor markets. i was primarily focused on supply chain distribution acquisition integration and professional contractor markets Our team at Hillman serves professional contractors, specialty distributors, and industrial customers with fastening and supply solutions used in various applications. our team at hillman serves professional contractors specialty distributors and industrial customers with fastening and supply solutions used in various applications An example of this is our ST fastening business, which Jon Michael mentioned earlier. an example of this is our st fastening business which jon michael mentioned earlier It's a $100 million specialty fastener platform, and it supports demanding applications like metal roofing and other building systems. it's a $100 million specialty fastener platform and it supports demanding applications like metal roofing and other building systems What's important to understand is that in the professional fastener market, there's two different product needs. what's important to understand is that in the professional fastener market there's two different product needs First, are high volume construction fasteners. first are high volume construction fasteners These are products used in large quantities for applications like drywall, framing, and the building envelope. these are products used in large quantities for applications like drywall framing and the building envelope Second are specialized fasteners that are engineered for specific materials, coatings, environments, or performance requirements like metal roofing screws. second are specialized fasteners that are engineered for specific materials coatings environments or performance requirements like metal roofing screws Hillman's advantage is that our platform supports both. hillman's advantage is that our platform supports both For construction fasteners, customers value availability, price, and sourcing scale. for construction fasteners customers value availability price and sourcing scale For specialty fasteners, customers value engineering expertise, product breadth, and application knowledge. What connects both segments is Hillman's ability to manage tens of thousands of SKUs, source globally at scale, and deliver reliably through our distribution network. Those are the same core capabilities that made Hillman the category leader in retail, and they translate directly into the professional market. As we expand further into professional distribution, the dynamic becomes even more important. Distributors who are serving contractors, they need a partner who's gonna reliably supply both those high-volume construction fasteners and a wide range of specialized products. For construction fasteners, priority is simple. It's availability and cost competitiveness. Contractors can't afford any job site delays, so distributors need confidence that those core products are always gonna be available. For specialty fasteners, customers value engineering expertise, product breadth, and application knowledge. for specialty fasteners customers value engineering expertise product breadth and application knowledge What connects both segments is Hillman's ability to manage tens of thousands of SKUs, source globally at scale, and deliver reliably through our distribution network. what connects both segments is hillman's ability to manage tens of thousands of skus source globally at scale and deliver reliably through our distribution network Those are the same core capabilities that made Hillman the category leader in retail, and they translate directly into the professional market. those are the same core capabilities that made hillman the category leader in retail and they translate directly into the professional market As we expand further into professional distribution, the dynamic becomes even more important. as we expand further into professional distribution the dynamic becomes even more important Distributors who are serving contractors, they need a partner who's gonna reliably supply both those high- volume construction fasteners and a wide range of specialized products. distributors who are serving contractors they need a partner who's gonna reliably supply both those high- volume construction fasteners and a wide range of specialized products For construction fasteners, priority is simple. for construction fasteners priority is simple It's availability and cost competitiveness. it's availability and cost competitiveness Contractors can't afford any job site delays, so distributors need confidence that those core products are always gonna be available. contractors can't afford any job site delays so distributors need confidence that those core products are always gonna be available Hillman's global sourcing scale and logistics network are gonna allow us to deliver that availability consistently. At the same time, contractors require thousands of specialized fasteners designed for specific materials, environments, and installation requirements. Managing that breadth of SKUs can be extremely difficult for distributors to handle internally. This is where Hillman becomes such an important partner. We bring global sourcing scale, extensive product breadth, reliable distribution infrastructure, and trusted contractor brands. These capabilities allow Hillman to support both bulk volume construction fasteners and of course, the highly specialized long-tail products within that same platform. Importantly, many of our large retail partners have invested in or acquired professional distribution businesses that are serving contractors directly. This creates a natural opportunity for Hillman to grow alongside them as they expand their business further into the Pro channel. Hillman's global sourcing scale and logistics network are gonna allow us to deliver that availability consistently. hillman's global sourcing scale and logistics network are gonna allow us to deliver that availability consistently At the same time, contractors require thousands of specialized fasteners designed for specific materials, environments, and installation requirements. at the same time contractors require thousands of specialized fasteners designed for specific materials environments and installation requirements Managing that breadth of SKUs can be extremely difficult for distributors to handle internally. managing that breadth of skus can be extremely difficult for distributors to handle internally This is where Hillman becomes such an important partner. this is where hillman becomes such an important partner We bring global sourcing scale, extensive product breadth, reliable distribution infrastructure, and trusted contractor brands. we bring global sourcing scale extensive product breadth reliable distribution infrastructure and trusted contractor brands These capabilities allow Hillman to support both bulk volume construction fasteners and of course, the highly specialized long-tail products within that same platform. these capabilities allow hillman to support both bulk volume construction fasteners and of course the highly specialized long-tail products within that same platform Importantly, many of our large retail partners have invested in or acquired professional distribution businesses that are serving contractors directly. importantly many of our large retail partners have invested in or acquired professional distribution businesses that are serving contractors directly This creates a natural opportunity for Hillman to grow alongside them as they expand their business further into the Pro channel. this creates a natural opportunity for hillman to grow alongside them as they expand their business further into the pro channel The strategy James described earlier around expanding with pro customers translates quite naturally into these distribution channels. The bottom line is we're not building a new operating model. We're just extending the capabilities that Hillman's been developing for decades. I wanna demonstrate this with a real example from our ST fastening business. In a market like metal roofing, the fastener is a critical component of the whole building system. For a given job, a contractor is gonna need thousands of color-matched fasteners for a single installation. The fastener has to provide structural strength, maintain a watertight seal, withstand decades of environmental exposure, and match the aesthetic color of the roofing panel itself. If the contractor runs short of that correct fastener during installation, the project just stops. The strategy James described earlier around expanding with pro customers translates quite naturally into these distribution channels. the strategy james described earlier around expanding with pro customers translates quite naturally into these distribution channels The bottom line is we're not building a new operating model. the bottom line is we're not building a new operating model We're just extending the capabilities that Hillman's been developing for decades. we're just extending the capabilities that hillman's been developing for decades I wanna demonstrate this with a real example from our ST fastening business. i wanna demonstrate this with a real example from our st fastening business In a market like metal roofing, the fastener is a critical component of the whole building system. in a market like metal roofing the fastener is a critical component of the whole building system For a given job, a contractor is gonna need thousands of color-matched fasteners for a single installation. for a given job a contractor is gonna need thousands of color-matched fasteners for a single installation The fastener has to provide structural strength, maintain a watertight seal, withstand decades of environmental exposure, and match the aesthetic color of the roofing panel itself. If the contractor runs short of that correct fastener during installation, the project just stops. the fastener has to provide structural strength maintain a watertight seal withstand decades of environmental exposure and match the aesthetic color of the roofing panel itself. if the contractor runs short of that correct fastener during installation the project just stops Their crews are idle, their schedules slip, and the cost of downtime quickly exceeds the cost of the fasteners themselves. In these markets, availability and reliability are, in essence, the product. The person who has the product is the one who gets the order. Through our ST Fastening Systems operation in Tyler, Texas, Hillman finishes these fasteners that are designed specifically for this application. We support thousands of specialized SKUs, we can color-match virtually any roofing panel, and we deliver these fasteners in job-specific quantities aligned to the contractor installation requirements, typically in less than a few days. Today, this specialty fastener platform is a $100 million business for us, and it continues to grow as the adoption of metal roofing and other specialty building systems expand. More importantly, this illustrates the broader point. Their crews are idle, their schedules slip, and the cost of downtime quickly exceeds the cost of the fasteners themselves. their crews are idle their schedules slip and the cost of downtime quickly exceeds the cost of the fasteners themselves In these markets, availability and reliability are, in essence, the product. in these markets availability and reliability are in essence the product The person who has the product is the one who gets the order. the person who has the product is the one who gets the order Through our ST Fastening Systems operation in Tyler, Texas, Hillman finishes these fasteners that are designed specifically for this application. through our st fastening systems operation in tyler texas hillman finishes these fasteners that are designed specifically for this application We support thousands of specialized SKUs, we can color-match virtually any roofing panel, and we deliver these fasteners in job-specific quantities aligned to the contractor installation requirements, typically in less than a few days. we support thousands of specialized skus we can color-match virtually any roofing panel and we deliver these fasteners in job-specific quantities aligned to the contractor installation requirements typically in less than a few days Today, this specialty fastener platform is a $100 million business for us, and it continues to grow as the adoption of metal roofing and other specialty building systems expand. today this specialty fastener platform is a $100 million business for us and it continues to grow as the adoption of metal roofing and other specialty building systems expand More importantly, this illustrates the broader point. more importantly this illustrates the broader point When Hillman combines its product engineering, global sourcing, manufacturing capabilities, and reliable distribution, we can serve these highly specialized markets that many competitors simply can't. These types of product-led specialty solutions represent a meaningful and growing component of Hillman's pro strategy. Importantly, the capabilities that allow us to win in these specialized applications are the same capabilities that allow Hillman to expand more broadly in the pro market. Our ability to manage a complex assortment, source globally at scale, and deliver with extremely high service levels creates a platform that's very, very difficult to replicate. We believe that platform positions Hillman extremely well to capture additional share with our contractors and professional customers over time. With that, I'm gonna turn it over to Jon Michael to discuss our lumber and building materials pro strategy and how we plan to leverage these capabilities across that channel. When Hillman combines its product engineering, global sourcing, manufacturing capabilities, and reliable distribution, we can serve these highly specialized markets that many competitors simply can't. when hillman combines its product engineering global sourcing manufacturing capabilities and reliable distribution we can serve these highly specialized markets that many competitors simply can't These types of product-led specialty solutions represent a meaningful and growing component of Hillman's pro strategy. these types of product-led specialty solutions represent a meaningful and growing component of hillman's pro strategy Importantly, the capabilities that allow us to win in these specialized applications are the same capabilities that allow Hillman to expand more broadly in the pro market. importantly the capabilities that allow us to win in these specialized applications are the same capabilities that allow hillman to expand more broadly in the pro market Our ability to manage a complex assortment, source globally at scale, and deliver with extremely high service levels creates a platform that's very, very difficult to replicate. our ability to manage a complex assortment source globally at scale and deliver with extremely high service levels creates a platform that's very very difficult to replicate We believe that platform positions Hillman extremely well to capture additional share with our contractors and professional customers over time. we believe that platform positions hillman extremely well to capture additional share with our contractors and professional customers over time With that, I'm gonna turn it over to Jon Michael to discuss our lumber and building materials pro strategy and how we plan to leverage these capabilities across that channel. with that i'm gonna turn it over to jon michael to discuss our lumber and building materials pro strategy and how we plan to leverage these capabilities across that channel

Speaker 11: Thanks, Chris. All right, now we'll turn into the LBM business. We're excited about this area because it's one we play there today. I think hopefully you've taken away from a couple of these different areas. I shared with you the Power Pro example about the great brand that we have. I think it's really important to understand that we have a solid foundation and base here. What I'm gonna share with you over the next handful of slides is a couple of key takeaways. One is that we're in this channel, but even more importantly, we're in a portion of the channel. I'll explain that in more detail. We focus on the showroom today, and we believe we have an opportunity to expand to the yard. I think that's what's exciting. Thanks, Chris. thanks chris All right, now we'll turn into the LBM business. all right now we'll turn into the lbm business We're excited about this area because it's one we play there today. we're excited about this area because it's one we play there today I think hopefully you've taken away from a couple of these different areas. i think hopefully you've taken away from a couple of these different areas I shared with you the Power Pro example about the great brand that we have. i shared with you the power pro example about the great brand that we have I think it's really important to understand that we have a solid foundation and base here. i think it's really important to understand that we have a solid foundation and base here What I'm gonna share with you over the next handful of slides is a couple of key takeaways. what i'm gonna share with you over the next handful of slides is a couple of key takeaways One is that we're in this channel, but even more importantly, we're in a portion of the channel. one is that we're in this channel but even more importantly we're in a portion of the channel I'll explain that in more detail. i'll explain that in more detail We focus on the showroom today, and we believe we have an opportunity to expand to the yard. we focus on the showroom today and we believe we have an opportunity to expand to the yard I think that's what's exciting. i think that's what's exciting What we heard from James and Chris is we have unique capabilities in each part of this business that give us permission to play, and that we also gives us permission to win, and that's why we're winning in these categories. The, you know, the retail pro and the res, you know, the resi pro piece of it, the opportunity we have there, that natural extension, those ideas and capabilities, plus what Chris outlined, really give us the ability to win in all of these channels. As we break it down and we think through where we're going, I, you know, I'm gonna walk you through what a location could look like. Now, many of these locations in the LBM channel look different. This is obviously just an illustration to give you an idea. The takeaway from this is focus on there's the front or the showroom. What we heard from James and Chris is we have unique capabilities in each part of this business that give us permission to play, and that we also gives us permission to win, and that's why we're winning in these categories. what we heard from james and chris is we have unique capabilities in each part of this business that give us permission to play and that we also gives us permission to win and that's why we're winning in these categories The, you know, the retail pro and the res, you know, the resi pro piece of it, the opportunity we have there, that natural extension, those ideas and capabilities, plus what Chris outlined, really give us the ability to win in all of these channels. the you know the retail pro and the res you know the resi pro piece of it the opportunity we have there that natural extension those ideas and capabilities plus what chris outlined really give us the ability to win in all of these channels As we break it down and we think through where we're going, I, you know, I'm gonna walk you through what a location could look like. as we break it down and we think through where we're going i you know i'm gonna walk you through what a location could look like Now, many of these locations in the LBM channel look different. now many of these locations in the lbm channel look different This is obviously just an illustration to give you an idea. this is obviously just an illustration to give you an idea The takeaway from this is focus on there's the front or the showroom. the takeaway from this is focus on there's the front or the showroom That's where anyone can walk in. Typically, you have a pro who comes in. They may be working on a takeoff or a design for a remodeling project or a build, but when they walk in, they see actually some retail merchandising. Could be all different types depending on the outlet. It's gonna vary. In many of those installations, the $100 million business we have today, it could be 4, 6, 8, 12 feet of merchandised product that we have in there. Our people, we leverage the category management, the products we have to optimize that space to be able to capture that unplanned purchase. I wanna make that point clear. That unplanned purchase is where we actually win today. We're gonna continue to win. That's part of our model. That's what extends. I think that's an important point for you to take away. That's where anyone can walk in. that's where anyone can walk in Typically, you have a pro who comes in. typically you have a pro who comes in They may be working on a takeoff or a design for a remodeling project or a build, but when they walk in, they see actually some retail merchandising. they may be working on a takeoff or a design for a remodeling project or a build but when they walk in they see actually some retail merchandising Could be all different types depending on the outlet. could be all different types depending on the outlet It's gonna vary. it's gonna vary In many of those installations, the $100 million business we have today, it could be 4, 6, 8, 12 feet of merchandised product that we have in there. in many of those installations the $100 million business we have today it could be 4 6 8 12 feet of merchandised product that we have in there Our people, we leverage the category management, the products we have to optimize that space to be able to capture that unplanned purchase. our people we leverage the category management the products we have to optimize that space to be able to capture that unplanned purchase I wanna make that point clear. i wanna make that point clear That unplanned purchase is where we actually win today. that unplanned purchase is where we actually win today We're gonna continue to win. we're gonna continue to win That's part of our model. that's part of our model That's what extends. that's what extends I think that's an important point for you to take away. i think that's an important point for you to take away The exciting thing is, as you can see here, not only depicted in size and scale, but a lot of the activity from some of these lumber building material locations is activity out from the yard. It is that planned purchase where somebody's putting together a job. The value that those locations create and the value that they deliver for their customers is they can package the job and give them the building materials, the fasteners and everything to go extend the project and complete it. What we're doing on in the front is we make sure that those pro packs, that merchandise solution that I shared earlier, we outfit in the front. Brett's team and the traditional, you know, folks that service those locations, they do a great job taking care of that showroom, making sure that that product's showable. The exciting thing is, as you can see here, not only depicted in size and scale, but a lot of the activity from some of these lumber building material locations is activity out from the yard. the exciting thing is as you can see here not only depicted in size and scale but a lot of the activity from some of these lumber building material locations is activity out from the yard It is that planned purchase where somebody's putting together a job. it is that planned purchase where somebody's putting together a job The value that those locations create and the value that they deliver for their customers is they can package the job and give them the building materials, the fasteners and everything to go extend the project and complete it. the value that those locations create and the value that they deliver for their customers is they can package the job and give them the building materials the fasteners and everything to go extend the project and complete it What we're doing on in the front is we make sure that those pro packs, that merchandise solution that I shared earlier, we outfit in the front. what we're doing on in the front is we make sure that those pro packs that merchandise solution that i shared earlier we outfit in the front Brett's team and the traditional, you know, folks that service those locations, they do a great job taking care of that showroom, making sure that that product's showable. brett's team and the traditional you know folks that service those locations they do a great job taking care of that showroom making sure that that product's showable We have some of our people with their own focus have said, "Hey, we're gonna go win some of those opportunities in the yard and get some of that planned purchase." That's not an area that we focus because we've typically focused on the actual showroom itself. When you think through what does it take to take care of the yard and to actually deliver the products necessary for that pro? I thought it was important to think about all the things that we do on the left here in the showroom. Think about product, innovation, category management, the things that we do well at Hillman that we invest in each and every day, they translate to the showroom. That's probably not a surprise for anybody in the audience or listening in. That's what we do today. We have some of our people with their own focus have said, "Hey, we're gonna go win some of those opportunities in the yard and get some of that planned purchase." That's not an area that we focus because we've typically focused on the actual showroom itself. we have some of our people with their own focus have said "hey we're gonna go win some of those opportunities in the yard and get some of that planned purchase." that's not an area that we focus because we've typically focused on the actual showroom itself When you think through what does it take to take care of the yard and to actually deliver the products necessary for that pro? when you think through what does it take to take care of the yard and to actually deliver the products necessary for that pro I thought it was important to think about all the things that we do on the left here in the showroom. i thought it was important to think about all the things that we do on the left here in the showroom Think about product, innovation, category management, the things that we do well at Hillman that we invest in each and every day, they translate to the showroom. think about product innovation category management the things that we do well at hillman that we invest in each and every day they translate to the showroom That's probably not a surprise for anybody in the audience or listening in. that's probably not a surprise for anybody in the audience or listening in That's what we do today. that's what we do today They do correlate, and I think they connect to what we're doing in the yard and the loading area. To be able to operate there, you gotta make sure you have job lot quantities. We've touched on that numerous times through the presentation. Some of that is different pack size, some of it's different packaging. We have that capability. We introduce thousands of SKUs each year. This is about how we run the business. Some of you may ask, "Is that a heavy lift for Hillman?" This is what we do each and every day. By focusing on it, by having James' team, our LBM team focused on those areas, we're now gonna work with the product teams to be able to add those job lot quantities, make sure we have building code compliant products, making sure we have the application specifics. They do correlate, and I think they connect to what we're doing in the yard and the loading area. they do correlate and i think they connect to what we're doing in the yard and the loading area To be able to operate there, you gotta make sure you have job lot quantities. to be able to operate there you gotta make sure you have job lot quantities We've touched on that numerous times through the presentation. we've touched on that numerous times through the presentation Some of that is different pack size, some of it's different packaging. some of that is different pack size some of it's different packaging We have that capability. we have that capability We introduce thousands of SKUs each year. we introduce thousands of skus each year This is about how we run the business. this is about how we run the business Some of you may ask, "Is that a heavy lift for Hillman?" This is what we do each and every day. some of you may ask "is that a heavy lift for hillman?" this is what we do each and every day By focusing on it, by having James' team, our LBM team focused on those areas, we're now gonna work with the product teams to be able to add those job lot quantities, make sure we have building code compliant products, making sure we have the application specifics. by focusing on it by having james' team our lbm team focused on those areas we're now gonna work with the product teams to be able to add those job lot quantities make sure we have building code compliant products making sure we have the application specifics Part of the reason Chris walked up here, what did he talk about? Having the fasteners for the application of attaching that metal roof. That is about having the pro quantities for the projects that these LBM yards perform. It's also about having LBM specialists. We've been adding some resources, brought somebody in to actually focus on LBM, and that's something that team is building some momentum. We'll be adding those resources as we scale this area. The just-in-time delivery, I think, and I hope you see that we're not only do we have a world-class operations team, Bob and his team are upgrading that and making sure we have the capabilities for not only today but also tomorrow. That high quality competitive cost. Part of the reason Chris walked up here, what did he talk about? part of the reason chris walked up here what did he talk about Having the fasteners for the application of attaching that metal roof. having the fasteners for the application of attaching that metal roof That is about having the pro quantities for the projects that these LBM yards perform. that is about having the pro quantities for the projects that these lbm yards perform It's also about having LBM specialists. it's also about having lbm specialists We've been adding some resources, brought somebody in to actually focus on LBM, and that's something that team is building some momentum. we've been adding some resources brought somebody in to actually focus on lbm and that's something that team is building some momentum We'll be adding those resources as we scale this area. we'll be adding those resources as we scale this area The just-in-time delivery, I think, and I hope you see that we're not only do we have a world-class operations team, Bob and his team are upgrading that and making sure we have the capabilities for not only today but also tomorrow. the just-in-time delivery i think and i hope you see that we're not only do we have a world-class operations team bob and his team are upgrading that and making sure we have the capabilities for not only today but also tomorrow That high quality competitive cost. that high quality competitive cost We all know to be able to win in the channel, you got to give them the quality they want at the cost that's competitive, and we can do that. We're doing it today, and that's where we really see the opportunity. To me, this page really summarizes and really encapsulates why we're gonna win in this section, in this area. Then there are some of the examples of some of the partners that we're gonna go out there. We sell some of these folks today. This is not, again, all new call cycles. This is about bringing, extending the products we have today into those channels and building on it. That's why we're really excited about where we're going because it is really thinking about the convenience buys in the showroom, unplanned purchase. We all know to be able to win in the channel, you got to give them the quality they want at the cost that's competitive, and we can do that. we all know to be able to win in the channel you got to give them the quality they want at the cost that's competitive and we can do that We're doing it today, and that's where we really see the opportunity. we're doing it today and that's where we really see the opportunity To me, this page really summarizes and really encapsulates why we're gonna win in this section, in this area. to me this page really summarizes and really encapsulates why we're gonna win in this section in this area Then there are some of the examples of some of the partners that we're gonna go out there. then there are some of the examples of some of the partners that we're gonna go out there We sell some of these folks today. we sell some of these folks today This is not, again, all new call cycles. this is not again all new call cycles This is about bringing, extending the products we have today into those channels and building on it. this is about bringing extending the products we have today into those channels and building on it That's why we're really excited about where we're going because it is really thinking about the convenience buys in the showroom, unplanned purchase. that's why we're really excited about where we're going because it is really thinking about the convenience buys in the showroom unplanned purchase It is the opportunity for the orders and the volume from the yard, that planned purchase. It's about changing the mindset and empowering our people to go after those different opportunities. It is gonna take some time. That's why this is gonna be a build for us. We're already doing it today in some locations where we have some, I'll say, really aggressive and capable salespeople. We're already doing it, where we serve them and bring them what they need. We've got to be able to make sure that we add those products, expand the quantities and the pack sizes, and empower that team to go forward. That's why we know we can be successful in this area. It is the opportunity for the orders and the volume from the yard, that planned purchase. it is the opportunity for the orders and the volume from the yard that planned purchase It's about changing the mindset and empowering our people to go after those different opportunities. it's about changing the mindset and empowering our people to go after those different opportunities It is gonna take some time. it is gonna take some time That's why this is gonna be a build for us. that's why this is gonna be a build for us We're already doing it today in some locations where we have some, I'll say, really aggressive and capable salespeople. we're already doing it today in some locations where we have some i'll say really aggressive and capable salespeople We're already doing it, where we serve them and bring them what they need. we're already doing it where we serve them and bring them what they need We've got to be able to make sure that we add those products, expand the quantities and the pack sizes, and empower that team to go forward. we've got to be able to make sure that we add those products expand the quantities and the pack sizes and empower that team to go forward That's why we know we can be successful in this area. that's why we know we can be successful in this area What gives me the high confidence that we're gonna go take share here, that $9.5 billion market, and those over 3,000 locations that we're already calling on today. This is about focus and making sure you don't let your core slip. That's very important to us. That'll be one of my points when we close, and then capitalize on this opportunity in this market. That's a little bit about where we're going and why we're excited. We think about LBM coming together, the simple message is we have the capabilities. We have the people in the stores today. We're gonna add the resources necessary and the pack sizes, and we're gonna go focus on this business and do what we do. We take care of the customer. This is another example where we're gonna be able to do just that. What gives me the high confidence that we're gonna go take share here, that $9.5 billion market, and those over 3,000 locations that we're already calling on today. what gives me the high confidence that we're gonna go take share here that $9.5 billion market and those over 3,000 locations that we're already calling on today This is about focus and making sure you don't let your core slip. this is about focus and making sure you don't let your core slip That's very important to us. that's very important to us That'll be one of my points when we close, and then capitalize on this opportunity in this market. that'll be one of my points when we close and then capitalize on this opportunity in this market That's a little bit about where we're going and why we're excited. that's a little bit about where we're going and why we're excited We think about LBM coming together, the simple message is we have the capabilities. we think about lbm coming together the simple message is we have the capabilities We have the people in the stores today. we have the people in the stores today We're gonna add the resources necessary and the pack sizes, and we're gonna go focus on this business and do what we do. we're gonna add the resources necessary and the pack sizes and we're gonna go focus on this business and do what we do We take care of the customer. we take care of the customer This is another example where we're gonna be able to do just that. this is another example where we're gonna be able to do just that With that, I wanna take it and get ready here to bring Michael up here. He's gonna talk to you a little bit about our M&A opportunities and how we're gonna continue to augment this growth strategy. With that, I'll introduce Michael Koehler, our VP of Investor Relations and M&A. Here we go. With that, I wanna take it and get ready here to bring Michael up here. with that i wanna take it and get ready here to bring michael up here He's gonna talk to you a little bit about our M&A opportunities and how we're gonna continue to augment this growth strategy. he's gonna talk to you a little bit about our m&a opportunities and how we're gonna continue to augment this growth strategy With that, I'll introduce Michael Koehler, our VP of Investor Relations and M&A. with that i'll introduce michael koehler our vp of investor relations and m&a Here we go. here we go

Speaker 13: Thanks, JMA. As you know, I'm Michael Koehler and run Investor Relations, Treasury, and I also co-lead the M&A team. I spent the last 15 years doing investor relations and capital markets consulting, having worked with over 35 public companies. I sit at a busy street corner and have my fingers close to the pulse of what's happening in the markets. Thanks, JMA. thanks jma As you know, I'm Michael Koehler and run Investor Relations, Treasury, and I also co-lead the M&A team. as you know i'm michael koehler and run investor relations treasury and i also co-lead the m&a team I spent the last 15 years doing investor relations and capital markets consulting, having worked with over 35 public companies. i spent the last 15 years doing investor relations and capital markets consulting having worked with over 35 public companies I sit at a busy street corner and have my fingers close to the pulse of what's happening in the markets. i sit at a busy street corner and have my fingers close to the pulse of what's happening in the markets Today, I'll walk through our M&A strategy, how it acts as a powerful accelerator for our growth, and why it's an important part of our long-term strategy to expand the core and win the pro. Our M&A expertise is rooted in over six decades of execution. Throughout our history, Hillman has built value by compounding accretive growth, both organically and via acquisition. The focus has always been prioritizing returns over purely buying growth at any cost. We've expanded categories and acquired capabilities at disciplined multiples, ensuring near-term accretion with a long-term strategic fit. Our M&A track record is built on around 30 successfully integrated transactions. We provide the scale and the platform that can turn a small or specialty business into a category leader. Today, I'll walk through our M&A strategy, how it acts as a powerful accelerator for our growth, and why it's an important part of our long-term strategy to expand the core and win the pro. today i'll walk through our m&a strategy how it acts as a powerful accelerator for our growth and why it's an important part of our long-term strategy to expand the core and win the pro Our M&A expertise is rooted in over six decades of execution. our m&a expertise is rooted in over six decades of execution Throughout our history, Hillman has built value by compounding accretive growth, both organically and via acquisition. throughout our history hillman has built value by compounding accretive growth both organically and via acquisition The focus has always been prioritizing returns over purely buying growth at any cost. the focus has always been prioritizing returns over purely buying growth at any cost We've expanded categories and acquired capabilities at disciplined multiples, ensuring near-term accretion with a long-term strategic fit. we've expanded categories and acquired capabilities at disciplined multiples ensuring near-term accretion with a long-term strategic fit Our M&A track record is built on around 30 successfully integrated transactions. our m&a track record is built on around 30 successfully integrated transactions We provide the scale and the platform that can turn a small or specialty business into a category leader. we provide the scale and the platform that can turn a small or specialty business into a category leader In many cases, we are the buyer of choice because we're a strategic buyer that has the market access, customer relationships, a 1,200-member field sales team, and supply chain leverage. Our history of successful integration gives us the confidence to expand across channels that we have discussed today. We categorize our targets into three different areas, expand categories, pro distribution, and industrial MRO, like you've heard today. We prioritize targets that are a logical fit for Hillman, ones that our sales team can grow, ones where our category management can add value, ones where our global supply chain can lower costs and targets that are a good cultural fit, those that align with Hillman's core values. In retail, the objectives are driving sales and category management. We want to expand the core by acquiring fastener-related categories or categories in adjacent aisles. In many cases, we are the buyer of choice because we're a strategic buyer that has the market access, customer relationships, a 1,200-member field sales team, and supply chain leverage. in many cases we are the buyer of choice because we're a strategic buyer that has the market access customer relationships a 1,200-member field sales team and supply chain leverage Our history of successful integration gives us the confidence to expand across channels that we have discussed today. our history of successful integration gives us the confidence to expand across channels that we have discussed today We categorize our targets into three different areas, expand categories, pro distribution, and industrial MRO, like you've heard today. we categorize our targets into three different areas expand categories pro distribution and industrial mro like you've heard today We prioritize targets that are a logical fit for Hillman, ones that our sales team can grow, ones where our category management can add value, ones where our global supply chain can lower costs and targets that are a good cultural fit, those that align with Hillman's core values. we prioritize targets that are a logical fit for hillman ones that our sales team can grow ones where our category management can add value ones where our global supply chain can lower costs and targets that are a good cultural fit those that align with hillman's core values In retail, the objectives are driving sales and category management. in retail the objectives are driving sales and category management We want to expand the core by acquiring fastener-related categories or categories in adjacent aisles. we want to expand the core by acquiring fastener-related categories or categories in adjacent aisles As Brett mentioned earlier, near neighbor categories like plumbing, electrical, and even protection and safety gear are high on our radar. In Pro distribution, we target distributors with strong customer relationships, where we can leverage our global sourcing network and national distribution capabilities. Today, we're underrepresented in the Pro, and there's a lot of white space for us to grow, as you've heard. Examples of Pro distribution product categories include collated fasteners and adhesives, where we have minimal to no presence today. You've heard the team today talk about how we can grow organically with our customers in Pro distribution and LBM. M&A can help win that Pro by acquiring into the specialty Pro distribution space, which has many unique product niches that make M&A particularly attractive. Industrial MRO, the focus here is centered on the master distributor model. As Brett mentioned earlier, near neighbor categories like plumbing, electrical, and even protection and safety gear are high on our radar. as brett mentioned earlier near neighbor categories like plumbing electrical and even protection and safety gear are high on our radar In Pro distribution, we target distributors with strong customer relationships, where we can leverage our global sourcing network and national distribution capabilities. in pro distribution we target distributors with strong customer relationships where we can leverage our global sourcing network and national distribution capabilities Today, we're underrepresented in the Pro, and there's a lot of white space for us to grow, as you've heard. today we're underrepresented in the pro and there's a lot of white space for us to grow as you've heard Examples of Pro distribution product categories include collated fasteners and adhesives, where we have minimal to no presence today. examples of pro distribution product categories include collated fasteners and adhesives where we have minimal to no presence today You've heard the team today talk about how we can grow organically with our customers in Pro distribution and LBM. you've heard the team today talk about how we can grow organically with our customers in pro distribution and lbm M&A can help win that Pro by acquiring into the specialty Pro distribution space, which has many unique product niches that make M&A particularly attractive. m&a can help win that pro by acquiring into the specialty pro distribution space which has many unique product niches that make m&a particularly attractive Industrial MRO, the focus here is centered on the master distributor model. industrial mro the focus here is centered on the master distributor model Our value proposition is built on scale and long-tail SKU complexity, something Hillman has done very well for a long time. Gaining meaningful traction in industrial will be M&A-driven. Across the vast number of end markets in the industrial space, we're looking for master distributors with long-tail complexity and high-spec SKU requirements. Here, we can achieve synergies with our enhanced scale and dependable global sourcing network. As I mentioned, in addition to hardware and fastening, we are currently seeking opportunities to acquire new adjacent categories like adhesives, door hardware, and plumbing. We believe these categories make a lot of sense for us from a strategic and product offering standpoint. We can add tremendous value and synergies, applying our core competencies to distributors and/or suppliers in this space. More broadly, our primary focus remains on a number of high-margin key product categories. We maintain a robust pipeline representing healthy growth opportunities. Our value proposition is built on scale and long-tail SKU complexity, something Hillman has done very well for a long time. our value proposition is built on scale and long-tail sku complexity something hillman has done very well for a long time Gaining meaningful traction in industrial will be M&A-driven. Across the vast number of end markets in the industrial space, we're looking for master distributors with long-tail complexity and high-spec SKU requirements. gaining meaningful traction in industrial will be m&a-driven. across the vast number of end markets in the industrial space we're looking for master distributors with long-tail complexity and high-spec sku requirements Here, we can achieve synergies with our enhanced scale and dependable global sourcing network. here we can achieve synergies with our enhanced scale and dependable global sourcing network As I mentioned, in addition to hardware and fastening, we are currently seeking opportunities to acquire new adjacent categories like adhesives, door hardware, and plumbing. as i mentioned in addition to hardware and fastening we are currently seeking opportunities to acquire new adjacent categories like adhesives door hardware and plumbing We believe these categories make a lot of sense for us from a strategic and product offering standpoint. we believe these categories make a lot of sense for us from a strategic and product offering standpoint We can add tremendous value and synergies, applying our core competencies to distributors and/or suppliers in this space. we can add tremendous value and synergies applying our core competencies to distributors and/or suppliers in this space More broadly, our primary focus remains on a number of high-margin key product categories. more broadly our primary focus remains on a number of high-margin key product categories We maintain a robust pipeline representing healthy growth opportunities. we maintain a robust pipeline representing healthy growth opportunities Today, our pipeline consists of several candidates within our typical deal range. Well, what does that mean? Well, in 2024, we paid in the mid-$30 million range for both Koch and Intex, and we have the ability to flex up several times over that for the right deal if necessary. Staying in this range allows us to avoid bidding wars over larger assets, maintain attractive EBITDA multiples, and keep our leverage in check. We've got the financial guardrails in place, and we've proven to be patient for the right deals. Taking a bit of a step back, our M&A strategy exists within a balanced capital allocation plan that you will hear Rocky talk more about in a few minutes. Today, our pipeline consists of several candidates within our typical deal range. today our pipeline consists of several candidates within our typical deal range Well, what does that mean? well what does that mean Well, in 2024, we paid in the mid-$30 million range for both Koch and Intex, and we have the ability to flex up several times over that for the right deal if necessary. well in 2024 we paid in the mid-$30 million range for both koch and intex and we have the ability to flex up several times over that for the right deal if necessary Staying in this range allows us to avoid bidding wars over larger assets, maintain attractive EBITDA multiples, and keep our leverage in check. staying in this range allows us to avoid bidding wars over larger assets maintain attractive ebitda multiples and keep our leverage in check We've got the financial guardrails in place, and we've proven to be patient for the right deals. we've got the financial guardrails in place and we've proven to be patient for the right deals Taking a bit of a step back, our M&A strategy exists within a balanced capital allocation plan that you will hear Rocky talk more about in a few minutes. taking a bit of a step back our m&a strategy exists within a balanced capital allocation plan that you will hear rocky talk more about in a few minutes We're able to invest in the business to capture organic growth, both in retail and in the pro. We can buy back stock under our share repurchase program and execute our M&A strategy. We can do all three at the same time. While our growth is not dependent on M&A, it is a key part of our strategy to grow share within our expanded $18 billion target market. We're confident this will accelerate our earnings growth and deliver high-quality returns for our shareholders. Let me give you an example. We acquired Koch Rope and Chain in January of 2024, and it's a great one that showcases our M&A capabilities. We identified this company and patiently waited for over three years for this deal to come to us at the right multiple. Rope and Chain are heavy, complex products, so this category was perfect. We're able to invest in the business to capture organic growth, both in retail and in the pro. we're able to invest in the business to capture organic growth both in retail and in the pro We can buy back stock under our share repurchase program and execute our M&A strategy. we can buy back stock under our share repurchase program and execute our m&a strategy We can do all three at the same time. we can do all three at the same time While our growth is not dependent on M&A, it is a key part of our strategy to grow share within our expanded $18 billion target market. while our growth is not dependent on m&a it is a key part of our strategy to grow share within our expanded $18 billion target market We're confident this will accelerate our earnings growth and deliver high-quality returns for our shareholders. we're confident this will accelerate our earnings growth and deliver high-quality returns for our shareholders Let me give you an example. let me give you an example We acquired Koch Rope and Chain in January of 2024, and it's a great one that showcases our M&A capabilities. we acquired koch rope and chain in january of 2024 and it's a great one that showcases our m&a capabilities We identified this company and patiently waited for over three years for this deal to come to us at the right multiple. we identified this company and patiently waited for over three years for this deal to come to us at the right multiple Rope and Chain are heavy, complex products, so this category was perfect. rope and chain are heavy complex products so this category was perfect It's perfect adjacency to our existing hardware categories and at the time, our recently launched Rope and Chain accessory line. Upon the closing, we got to work to integrate Koch, and the results were transformative. Within a short period, we leveraged the combined strength of Hillman and Koch into a new win, resulting in 20% top-line growth for Koch via a nationwide rollout at just one major retailer. We are confident that there are more wins to come in this category. With our foundation in Rope and Chain established, we now have the ability to drive additional benefits in this space from an M&A standpoint. Today, we source 100% of products sold in this category from overseas. It's perfect adjacency to our existing hardware categories and at the time, our recently launched Rope and Chain accessory line. it's perfect adjacency to our existing hardware categories and at the time our recently launched rope and chain accessory line Upon the closing, we got to work to integrate Koch, and the results were transformative. upon the closing we got to work to integrate koch and the results were transformative Within a short period, we leveraged the combined strength of Hillman and Koch into a new win, resulting in 20% top-line growth for Koch via a nationwide rollout at just one major retailer. within a short period we leveraged the combined strength of hillman and koch into a new win resulting in 20% top-line growth for koch via a nationwide rollout at just one major retailer We are confident that there are more wins to come in this category. we are confident that there are more wins to come in this category With our foundation in Rope and Chain established, we now have the ability to drive additional benefits in this space from an M&A standpoint. with our foundation in rope and chain established we now have the ability to drive additional benefits in this space from an m&a standpoint Today, we source 100% of products sold in this category from overseas. today we source 100% of products sold in this category from overseas Currently, there are additional M&A targets in this vertical that can allow us to expand into the industrial MRO channel and in-source production, which can give us supply chain flexibility as well as potentially capture additional margin in this category. Koch's been a great acquisition for us, and we believe we can replicate that model going forward. The playbook is simple. Identify a category that we want to expand in, successfully acquire an attractive player in the space, and leverage Hillman's core competencies to drive profitable top and bottom line growth. This concludes the M&A session, and we'll now open it up for Q&A. We'll have Rodney run the mic, and we'll ask the speakers to come up. Currently, there are additional M&A targets in this vertical that can allow us to expand into the industrial MRO channel and in-source production, which can give us supply chain flexibility as well as potentially capture additional margin in this category. currently there are additional m&a targets in this vertical that can allow us to expand into the industrial mro channel and in-source production which can give us supply chain flexibility as well as potentially capture additional margin in this category Koch's been a great acquisition for us, and we believe we can replicate that model going forward. koch's been a great acquisition for us and we believe we can replicate that model going forward The playbook is simple. the playbook is simple Identify a category that we want to expand in, successfully acquire an attractive player in the space, and leverage Hillman's core competencies to drive profitable top and bottom line growth. identify a category that we want to expand in successfully acquire an attractive player in the space and leverage hillman's core competencies to drive profitable top and bottom line growth This concludes the M&A session, and we'll now open it up for Q&A. this concludes the m&a session and we'll now open it up for q&a We'll have Rodney run the mic, and we'll ask the speakers to come up. we'll have rodney run the mic and we'll ask the speakers to come up

Speaker 14: As a reminder, please remember to state your name and firm when you ask a question. One question, one follow-up. As a reminder, please remember to state your name and firm when you ask a question. as a reminder please remember to state your name and firm when you ask a question One question, one follow-up. one question one follow-up

Speaker 2: Andrew Carter, Stifel. Question on the kinda Pro going into this. Do you believe that you can accomplish kinda the ambitions you've laid out here with the current capabilities in hand, or do you need to take another step change in the sales force? Obviously, M&A out there would give you a thing, but just anything incremental to that, like, to kinda contextualize resources in hand versus incremental investments you might need to turbocharge this. Thanks. Andrew Carter, Stifel. andrew carter stifel Question on the kinda Pro going into this. question on the kinda pro going into this Do you believe that you can accomplish kinda the ambitions you've laid out here with the current capabilities in hand, or do you need to take another step change in the sales force? do you believe that you can accomplish kinda the ambitions you've laid out here with the current capabilities in hand or do you need to take another step change in the sales force Obviously, M&A out there would give you a thing, but just anything incremental to that, like, to kinda contextualize resources in hand versus incremental investments you might need to turbocharge this. obviously m&a out there would give you a thing but just anything incremental to that like to kinda contextualize resources in hand versus incremental investments you might need to turbocharge this Thanks. thanks

Speaker 13: I'll start. Andrew, thank you for the question. You know, we believe we've got the, I'll say, investments in place for us to build the, I'll say, long-term objectives that we framed there. Rocky will go into more details about how we're breaking down the pieces. Andrew, that was part of why putting James in the role and hiring his team up at the end of 2025 to be able to get that framework on the retail pro. You know, Chris' team has already got, you know, a team in place. I think LBM is an area where we've got resources in place, in Brett's team. We feel like we have the the feet on the street to be able to drive that incremental growth, and we'll throttle those investments, and add to it. I'll start. i'll start Andrew, thank you for the question. andrew thank you for the question You know, we believe we've got the, I'll say, investments in place for us to build the, I'll say, long-term objectives that we framed there. you know we believe we've got the i'll say investments in place for us to build the i'll say long-term objectives that we framed there Rocky will go into more details about how we're breaking down the pieces. rocky will go into more details about how we're breaking down the pieces Andrew, that was part of why putting James in the role and hiring his team up at the end of 2025 to be able to get that framework on the retail pro. andrew that was part of why putting james in the role and hiring his team up at the end of 2025 to be able to get that framework on the retail pro You know, Chris' team has already got, you know, a team in place. you know chris' team has already got you know a team in place I think LBM is an area where we've got resources in place, in Brett's team. i think lbm is an area where we've got resources in place in brett's team We feel like we have the the feet on the street to be able to drive that incremental growth, and we'll throttle those investments, and add to it. we feel like we have the the feet on the street to be able to drive that incremental growth and we'll throttle those investments and add to it We hope to, as we gain more traction there. Andrew, we think we have it baked in. This is not about us coming out and changing our financial, you know, I'll say, objective because of these initiatives. We feel like we are absorbing them, and that's what we're driving inside of our guide today. I don't know if anything you guys wanna add. We hope to, as we gain more traction there. we hope to as we gain more traction there Andrew, we think we have it baked in. andrew we think we have it baked in This is not about us coming out and changing our financial, you know, I'll say, objective because of these initiatives. this is not about us coming out and changing our financial you know i'll say objective because of these initiatives We feel like we are absorbing them, and that's what we're driving inside of our guide today. we feel like we are absorbing them and that's what we're driving inside of our guide today I don't know if anything you guys wanna add. i don't know if anything you guys wanna add

Speaker 2: Yeah, I mean, I think the only thing I would add is the team that we're bringing on is very experienced, deep relationships, and they are hitting the ground running. You know, as JMA mentioned, in 2025, we were hired, and they are in market, in field today with customers trying to drive sales. Really proud of the team we assembled. It's a good experienced team. Yeah, I mean, I think the only thing I would add is the team that we're bringing on is very experienced, deep relationships, and they are hitting the ground running. yeah i mean i think the only thing i would add is the team that we're bringing on is very experienced deep relationships and they are hitting the ground running You know, as JMA mentioned, in 2025, we were hired, and they are in market, in field today with customers trying to drive sales. you know as jma mentioned in 2025 we were hired and they are in market in field today with customers trying to drive sales Really proud of the team we assembled. really proud of the team we assembled It's a good experienced team. it's a good experienced team

Speaker 15: Reuben Garner with Benchmark. Thanks for taking the question. Just a follow-up on that. How does it work, the $100 million in LBM business you have today? Is that entirely through a dedicated sales force? You mentioned hiring LBM specialists, like, long term, is this a distinct, separate sales process from the retail customer? Reuben Garner with Benchmark. reuben garner with benchmark Thanks for taking the question. thanks for taking the question Just a follow-up on that. just a follow-up on that How does it work, the $100 million in LBM business you have today? how does it work the $100 million in lbm business you have today Is that entirely through a dedicated sales force? is that entirely through a dedicated sales force You mentioned hiring LBM specialists, like, long term, is this a distinct, separate sales process from the retail customer? you mentioned hiring lbm specialists like long term is this a distinct separate sales process from the retail customer

Speaker 13: You know, we have actually our field sales team that actually is out in the field that runs in one organization. They actually call on, you know, different hardware stores and lumber yards today. Reuben, those are the folks that are actually calling on them today. The LBM specialists that we're putting on Brett's team, we brought in, you know, two professionals that are fully dedicated to LBM. We haven't done that before. They're the leadership, and now we're evaluating the strategy to go infill the resources necessary to go after, you know, the yard opportunity that we framed up. That'll be an evolution of where we're going and how we see it going as we move forward here. You know, we have actually our field sales team that actually is out in the field that runs in one organization. you know we have actually our field sales team that actually is out in the field that runs in one organization They actually call on, you know, different hardware stores and lumber yards today. they actually call on you know different hardware stores and lumber yards today Reuben, those are the folks that are actually calling on them today. reuben those are the folks that are actually calling on them today The LBM specialists that we're putting on Brett's team, we brought in, you know, two professionals that are fully dedicated to LBM. the lbm specialists that we're putting on brett's team we brought in you know two professionals that are fully dedicated to lbm We haven't done that before. we haven't done that before They're the leadership, and now we're evaluating the strategy to go infill the resources necessary to go after, you know, the yard opportunity that we framed up. they're the leadership and now we're evaluating the strategy to go infill the resources necessary to go after you know the yard opportunity that we framed up That'll be an evolution of where we're going and how we see it going as we move forward here. that'll be an evolution of where we're going and how we see it going as we move forward here

Speaker 12: Lee Jagoda, CJS. Going back, I guess, way back to Slide 61, I guess, there was a whole bunch of logos around potential pro opportunities, and there was five of them where they're owned by your current customer base. How much of the growth that we're projecting through 2030 is gonna come from growth within the existing channel where the customers are saying to you, "If you had more different form factor, different ways that we can buy this, we wanna do more with you," versus you having to go out and displace somebody less willingly? Lee Jagoda, CJS. lee jagoda cjs Going back, I guess, way back to Slide 61, I guess, there was a whole bunch of logos around potential pro opportunities, and there was five of them where they're owned by your current customer base. going back i guess way back to slide 61 i guess there was a whole bunch of logos around potential pro opportunities and there was five of them where they're owned by your current customer base How much of the growth that we're projecting through 2030 is gonna come from growth within the existing channel where the customers are saying to you, "If you had more different form factor, different ways that we can buy this, we wanna do more with you," versus you having to go out and displace somebody less willingly? how much of the growth that we're projecting through 2030 is gonna come from growth within the existing channel where the customers are saying to you "if you had more different form factor different ways that we can buy this we wanna do more with you," versus you having to go out and displace somebody less willingly

Speaker 13: It's a great question. 2025 is all about or 2026 is all about laying the foundation with the folks that we talked about in my presentation, okay? As we build with those customers, we build those capabilities, we expand into the folks that are in the box here. As you know, you know, these folks were acquired by these large retail pros. It is certainly on our roadmap. We're very excited about it. We're gonna build this stable foundation and then build upon that with expansion. When I talk about unlocking sales potential, this screen certainly would represent that. Does that answer your question? It's a great question. 2025 is all about or 2026 is all about laying the foundation with the folks that we talked about in my presentation, okay? it's a great question 2025 is all about or 2026 is all about laying the foundation with the folks that we talked about in my presentation okay As we build with those customers, we build those capabilities, we expand into the folks that are in the box here. as we build with those customers we build those capabilities we expand into the folks that are in the box here As you know, you know, these folks were acquired by these large retail pros. as you know you know these folks were acquired by these large retail pros It is certainly on our roadmap. it is certainly on our roadmap We're very excited about it. we're very excited about it We're gonna build this stable foundation and then build upon that with expansion. we're gonna build this stable foundation and then build upon that with expansion When I talk about unlocking sales potential, this screen certainly would represent that. when i talk about unlocking sales potential this screen certainly would represent that Does that answer your question? does that answer your question

Speaker 12: Yeah. I guess, is there a way to quantify some of that? Like, in the framework of if it's 1 or 2 points a year of Pro growth on average from now through 2030. Yeah. yeah I guess, is there a way to quantify some of that? i guess is there a way to quantify some of that Like, in the framework of if it's 1 or 2 points a year of Pro growth on average from now through 2030. like in the framework of if it's 1 or 2 points a year of pro growth on average from now through 2030

Speaker 11: Yeah Yeah yeah

Speaker 12: How much of that growth comes from existing relationships versus going out and beating the street where you're not? How much of that growth comes from existing relationships versus going out and beating the street where you're not? how much of that growth comes from existing relationships versus going out and beating the street where you're not

Speaker 13: Sure. I mean, I would think at least a point, a point and a half would come from existing relationships and then potentially another half a point, you know, from these folks as we expand. The key here is the capability, the product. That sales team has all the current capabilities that we have. We don't need to add incremental to do that. It's just as we pace ourselves here. Sure. sure I mean, I would think at least a point, a point and a half would come from existing relationships and then potentially another half a point, you know, from these folks as we expand. i mean i would think at least a point a point and a half would come from existing relationships and then potentially another half a point you know from these folks as we expand The key here is the capability, the product. the key here is the capability the product That sales team has all the current capabilities that we have. that sales team has all the current capabilities that we have We don't need to add incremental to do that. we don't need to add incremental to do that It's just as we pace ourselves here. it's just as we pace ourselves here

Speaker 11: Lee, it's gonna be a mix. I mean, it's a great question. I mean, I think it's gonna be. We already got some great trajectory and momentum with some of these Pro customers today. Then getting into that channel, we wanna make sure we have the service model that they need. You know, that's why we think we have the capabilities to do it. It's gonna be an evolution, and we'll certainly update you on that journey. Lee, it's gonna be a mix. lee it's gonna be a mix I mean, it's a great question. i mean it's a great question I mean, I think it's gonna be. i mean i think it's gonna be We already got some great trajectory and momentum with some of these Pro customers today. we already got some great trajectory and momentum with some of these pro customers today Then getting into that channel, we wanna make sure we have the service model that they need. then getting into that channel we wanna make sure we have the service model that they need You know, that's why we think we have the capabilities to do it. you know that's why we think we have the capabilities to do it It's gonna be an evolution, and we'll certainly update you on that journey. it's gonna be an evolution and we'll certainly update you on that journey

Speaker 12: Great. Great. great

Speaker 11: Oh. Oh. oh

Speaker 16: Sam Darkatsh, Raymond James. Don't know how to ask this question, but what are the current service gaps that the pro customers are seeing in their planned categories? I think, you know, steel and wire products, PrimeSource, they are getting serviced right now. Where are the service gaps that you feel you're really being differentiated? Sam Darkatsh, Raymond James. sam darkatsh raymond james Don't know how to ask this question, but what are the current service gaps that the pro customers are seeing in their planned categories? don't know how to ask this question but what are the current service gaps that the pro customers are seeing in their planned categories I think, you know, steel and wire products, PrimeSource, they are getting serviced right now. i think you know steel and wire products primesource they are getting serviced right now Where are the service gaps that you feel you're really being differentiated? where are the service gaps that you feel you're really being differentiated

Speaker 11: I'm gonna give you a small example to give you an idea. We had and I won't go into the name of the customer, but we were on a West Coast walk a month ago with. You know, Brett and I were out there. We went to one of our customers, great retail partner that we have today that's in there supplying the Pro. They're selling product out the back, and we have one of our top sales people in that store. Great guy, great walk. We asked him about some of the products we sell at the back, and he's like, "I didn't even know that you guys can do bulk packaging and quantity." That's the kind of opportunity we have out there, Sam. I'm gonna give you a small example to give you an idea. i'm gonna give you a small example to give you an idea We had and I won't go into the name of the customer, but we were on a West Coast walk a month ago with. we had and i won't go into the name of the customer but we were on a west coast walk a month ago with You know, Brett and I were out there. you know brett and i were out there We went to one of our customers, great retail partner that we have today that's in there supplying the Pro. we went to one of our customers great retail partner that we have today that's in there supplying the pro They're selling product out the back, and we have one of our top sales people in that store. they're selling product out the back and we have one of our top sales people in that store Great guy, great walk. great guy great walk We asked him about some of the products we sell at the back, and he's like, "I didn't even know that you guys can do bulk packaging and quantity." That's the kind of opportunity we have out there, Sam. we asked him about some of the products we sell at the back and he's like "i didn't even know that you guys can do bulk packaging and quantity." that's the kind of opportunity we have out there sam He's buying today from a local supplier, and he's like, "I'll let you guys quote the entire mix." To me, I think, Sam, it's about going out there and unlocking where there's either opportunity because they don't know that we have the capability, or there's an unmet need. You're right, we have viable competitors in the space. This isn't gonna be where people are gonna be knocking down our door saying, "Take my orders." To me, awareness is huge. I'll give you another example. We were at a show with a large partner not that long ago, in the last couple of weeks. Totally different individual. He's buying today from a local supplier, and he's like, "I'll let you guys quote the entire mix." To me, I think, Sam, it's about going out there and unlocking where there's either opportunity because they don't know that we have the capability, or there's an unmet need. he's buying today from a local supplier and he's like "i'll let you guys quote the entire mix." to me i think sam it's about going out there and unlocking where there's either opportunity because they don't know that we have the capability or there's an unmet need You're right, we have viable competitors in the space. you're right we have viable competitors in the space This isn't gonna be where people are gonna be knocking down our door saying, "Take my orders." To me, awareness is huge. this isn't gonna be where people are gonna be knocking down our door saying "take my orders." to me awareness is huge I'll give you another example. i'll give you another example We were at a show with a large partner not that long ago, in the last couple of weeks. we were at a show with a large partner not that long ago in the last couple of weeks Totally different individual. totally different individual They didn't know that we did what we did in B2B, and that person came out and said, "Hey, we'd like you to quote our entire mix," and showed us pictures of the warehouse that they stock all their pro-grade product. They didn't even know we did bulk quantity. I'm not saying it's gonna be easy, Sam, but a lot of it's awareness. We never focused on those areas before. That's not what we put in our retail catalog, so our salespeople aren't even aware of some of the capabilities we have. It's gonna be building awareness and putting programs into place, and that's what James, Brett, and their teams are doing today. They didn't know that we did what we did in B2B, and that person came out and said, "Hey, we'd like you to quote our entire mix," and showed us pictures of the warehouse that they stock all their pro-grade product. they didn't know that we did what we did in b2b and that person came out and said "hey we'd like you to quote our entire mix," and showed us pictures of the warehouse that they stock all their pro-grade product They didn't even know we did bulk quantity. they didn't even know we did bulk quantity I'm not saying it's gonna be easy, Sam, but a lot of it's awareness. i'm not saying it's gonna be easy sam but a lot of it's awareness We never focused on those areas before. we never focused on those areas before That's not what we put in our retail catalog, so our salespeople aren't even aware of some of the capabilities we have. that's not what we put in our retail catalog so our salespeople aren't even aware of some of the capabilities we have It's gonna be building awareness and putting programs into place, and that's what James, Brett, and their teams are doing today. it's gonna be building awareness and putting programs into place and that's what james brett and their teams are doing today

Speaker 16: I've got a follow-up. I've got a follow-up. i've got a follow-up

Speaker 11: Sure. Sure. sure

Speaker 16: Thank you. Are you currently servicing the unplanned category with your existing retail sales team? If so, I'm guessing the new team or the nascent but new team will maybe do both unplanned and planned, which might either free up that retail space or maybe allow for a little more leverage. Thank you. thank you Are you currently servicing the unplanned category with your existing retail sales team? are you currently servicing the unplanned category with your existing retail sales team If so, I'm guessing the new team or the nascent but new team will maybe do both unplanned and planned, which might either free up that retail space or maybe allow for a little more leverage. if so i'm guessing the new team or the nascent but new team will maybe do both unplanned and planned which might either free up that retail space or maybe allow for a little more leverage

Speaker 11: Yeah, very good question. Brett's organization today, which he has all just to break this down, we have our retail sales organization. Brett's got several different teams that he focuses on. His traditional team, which was the national sales team we just mentioned, those folks are calling on LBM locations, hardware stores, and the like across the nation. We believe that it'll be adding more resources within that pool and then augmenting them with LBM specialists. We're not really prepared to walk through the detailed strategy of what that's gonna be because we got competitors listening to this, but that is how we're thinking about framing this up, Sam, is it's gonna be leveraging our core resources and then adding resources where we think there's growth opportunities. Hopefully that answers enough of your question to get a sense of where we're going. Yeah, very good question. yeah very good question Brett's organization today, which he has all just to break this down, we have our retail sales organization. brett's organization today which he has all just to break this down we have our retail sales organization Brett's got several different teams that he focuses on. brett's got several different teams that he focuses on His traditional team, which was the national sales team we just mentioned, those folks are calling on LBM locations, hardware stores, and the like across the nation. his traditional team which was the national sales team we just mentioned those folks are calling on lbm locations hardware stores and the like across the nation We believe that it'll be adding more resources within that pool and then augmenting them with LBM specialists. we believe that it'll be adding more resources within that pool and then augmenting them with lbm specialists We're not really prepared to walk through the detailed strategy of what that's gonna be because we got competitors listening to this, but that is how we're thinking about framing this up, Sam, is it's gonna be leveraging our core resources and then adding resources where we think there's growth opportunities. we're not really prepared to walk through the detailed strategy of what that's gonna be because we got competitors listening to this but that is how we're thinking about framing this up sam is it's gonna be leveraging our core resources and then adding resources where we think there's growth opportunities Hopefully that answers enough of your question to get a sense of where we're going. hopefully that answers enough of your question to get a sense of where we're going

Speaker 16: Kind of following up a little bit there. Can you help me on the LBM side? How does the pro purchase, particularly on the fasteners in the, you know, right now at an LBM, are they currently getting that product in the back at an LBM? Are they getting it somewhere else? Or how does it generally work today for that pro? Kind of following up a little bit there. kind of following up a little bit there Can you help me on the LBM side? can you help me on the lbm side How does the pro purchase, particularly on the fasteners in the, you know, right now at an LBM, are they currently getting that product in the back at an LBM? how does the pro purchase particularly on the fasteners in the you know right now at an lbm are they currently getting that product in the back at an lbm Are they getting it somewhere else? are they getting it somewhere else Or how does it generally work today for that pro? or how does it generally work today for that pro

Speaker 11: Yeah. I mean, in many of the markets, the yard is supplied by, if you will, what the needs are and the demands are in the marketplace. That pro today that's buying those bulk quantities, contractor, you know, lot sizes, they're actually specifying, "Hey, here's my build." They're working with that professional in that location who's saying, "Hey, you need XYZ quantity of type whatever fastener." There is a spec component to it, meaning there's a specific need of a size fastener for that application, and that's driven by what's going on in that market. Each market's different. That's why we have people in each market. Today, that is being driven by the contractor's needs. Some of that's driven by the lumber yard and what they're specifying. Yeah. yeah I mean, in many of the markets, the yard is supplied by, if you will, what the needs are and the demands are in the marketplace. i mean in many of the markets the yard is supplied by if you will what the needs are and the demands are in the marketplace That pro today that's buying those bulk quantities, contractor, you know, lot sizes, they're actually specifying, "Hey, here's my build." They're working with that professional in that location who's saying, "Hey, you need XYZ quantity of type whatever fastener." There is a spec component to it, meaning there's a specific need of a size fastener for that application, and that's driven by what's going on in that market. that pro today that's buying those bulk quantities contractor you know lot sizes they're actually specifying "hey here's my build." they're working with that professional in that location who's saying "hey you need xyz quantity of type whatever fastener." there is a spec component to it meaning there's a specific need of a size fastener for that application and that's driven by what's going on in that market Each market's different. each market's different That's why we have people in each market. that's why we have people in each market Today, that is being driven by the contractor's needs. today that is being driven by the contractor's needs Some of that's driven by the lumber yard and what they're specifying. some of that's driven by the lumber yard and what they're specifying Some of it can be driven by the designs and the plans, and that's part of what our teams are out there working on, is giving them availability. If they've got a they need an inch and a quarter drywall screw, as an example, that we have that product in the quantity that they want to purchase it. So, we're working with them, and we'll be working with them to supply them in the quantities they purchase. That is part of the curve. That's why this isn't gonna be overnight. If you win $50 million of business, we'll build this over time by meeting the needs of that customer. Similar to what Sam asked is, this is about making it aware that we have the products and the capability, and then be able to fulfill their needs and what they're actually delivering for the pro. Some of it can be driven by the designs and the plans, and that's part of what our teams are out there working on, is giving them availability. some of it can be driven by the designs and the plans and that's part of what our teams are out there working on is giving them availability If they've got a they need an inch and a quarter drywall screw, as an example, that we have that product in the quantity that they want to purchase it. if they've got a they need an inch and a quarter drywall screw as an example that we have that product in the quantity that they want to purchase it So, we're working with them, and we'll be working with them to supply them in the quantities they purchase. so we're working with them and we'll be working with them to supply them in the quantities they purchase That is part of the curve. that is part of the curve That's why this isn't gonna be overnight. that's why this isn't gonna be overnight If you win $50 million of business, we'll build this over time by meeting the needs of that customer. if you win $50 million of business we'll build this over time by meeting the needs of that customer Similar to what Sam asked is, this is about making it aware that we have the products and the capability, and then be able to fulfill their needs and what they're actually delivering for the pro. similar to what sam asked is this is about making it aware that we have the products and the capability and then be able to fulfill their needs and what they're actually delivering for the pro

Speaker 16: Just a quick follow-up. That's helpful. Thank you. Just a quick follow-up. just a quick follow-up That's helpful. that's helpful Thank you. thank you

Speaker 11: You're welcome. You're welcome. you're welcome

Speaker 16: How about the gross margin for that type of business for a planned bulk purchase at, like, an LBM or something? I'm assuming that industry generally has a lower gross margin than your normal business. Is that directionally the right way to think about it? How about the gross margin for that type of business for a planned bulk purchase at, like, an LBM or something? how about the gross margin for that type of business for a planned bulk purchase at like an lbm or something I'm assuming that industry generally has a lower gross margin than your normal business. i'm assuming that industry generally has a lower gross margin than your normal business Is that directionally the right way to think about it? is that directionally the right way to think about it

Speaker 11: Directionally, I'd ask you to save some time here for Rocky. He'll walk you through a way to think about that. I'll save that for the financial section. It's up next. Good question. Directionally, I'd ask you to save some time here for Rocky. directionally i'd ask you to save some time here for rocky He'll walk you through a way to think about that. he'll walk you through a way to think about that I'll save that for the financial section. i'll save that for the financial section It's up next. it's up next Good question. good question

Speaker 3: Hi. Anu Khan with Baird here. Kind of following up on the previous question. As you are leaning into these, you know, specified structural applications in the pro, kind of how should we think about the changes in terms of, like, the sales approach, required expertise, the risk, liability profile of the business, maybe some of the hurdles you foresee and maybe the competitive landscape as well? Just any additional commentary. Hi. hi Anu Khan with Baird here. anu khan with baird here Kind of following up on the previous question. kind of following up on the previous question As you are leaning into these, you know, specified structural applications in the pro, kind of how should we think about the changes in terms of, like, the sales approach, required expertise, the risk, liability profile of the business, maybe some of the hurdles you foresee and maybe the competitive landscape as well? as you are leaning into these you know specified structural applications in the pro kind of how should we think about the changes in terms of like the sales approach required expertise the risk liability profile of the business maybe some of the hurdles you foresee and maybe the competitive landscape as well Just any additional commentary. just any additional commentary

Speaker 11: Yeah, I mean, I'll give you a couple of nuggets. I think I'm gonna go back to the sales meeting we talked about earlier. I think actually, you know, educating on how to sell into that channel is a really important element. That's why we have two people specialized in it today, and we'll continue to add resource. I think the sales cycle's a little bit different. The way that we actually sell is different. And then we are spending a lot more time with you know, Chris Paterson, who's here, and his team as far as building, going after application-specific products. It's a lot of what we displayed at IBS show, and we've gotten great feedback and by having Structural Screws for a needed application. We've had to build out that product range. That's what we've been working on. Yeah, I mean, I'll give you a couple of nuggets. yeah i mean i'll give you a couple of nuggets I think I'm gonna go back to the sales meeting we talked about earlier. i think i'm gonna go back to the sales meeting we talked about earlier I think actually, you know, educating on how to sell into that channel is a really important element. i think actually you know educating on how to sell into that channel is a really important element That's why we have two people specialized in it today, and we'll continue to add resource. that's why we have two people specialized in it today and we'll continue to add resource I think the sales cycle's a little bit different. i think the sales cycle's a little bit different The way that we actually sell is different. the way that we actually sell is different And then we are spending a lot more time with you know, Chris Paterson, who's here, and his team as far as building, going after application-specific products. and then we are spending a lot more time with you know chris paterson who's here and his team as far as building going after application-specific products It's a lot of what we displayed at IBS show, and we've gotten great feedback and by having Structural Screws for a needed application. it's a lot of what we displayed at ibs show and we've gotten great feedback and by having structural screws for a needed application We've had to build out that product range. we've had to build out that product range That's what we've been working on. that's what we've been working on I think that's part of the product equation. We're working on the sales equation, which I shared, you know, that we drove at the national sales meeting. Those would be areas that we have to be able to be successful in. We're putting feet on the street now, so we'll update you on that progress as we go forward. Sales, product, I'm very comfortable with where we are from a delivery perspective. We have a world-class operations team, so I feel like that's in check and aligned. I think this is gonna be about building the capability and adding the resources that are focused on that type of sale 'cause it is different than what we do today. I think that's part of the product equation. i think that's part of the product equation We're working on the sales equation, which I shared, you know, that we drove at the national sales meeting. we're working on the sales equation which i shared you know that we drove at the national sales meeting Those would be areas that we have to be able to be successful in. those would be areas that we have to be able to be successful in We're putting feet on the street now, so we'll update you on that progress as we go forward. we're putting feet on the street now so we'll update you on that progress as we go forward Sales, product, I'm very comfortable with where we are from a delivery perspective. sales product i'm very comfortable with where we are from a delivery perspective We have a world-class operations team, so I feel like that's in check and aligned. we have a world-class operations team so i feel like that's in check and aligned I think this is gonna be about building the capability and adding the resources that are focused on that type of sale 'cause it is different than what we do today. i think this is gonna be about building the capability and adding the resources that are focused on that type of sale 'cause it is different than what we do today When you're selling to the showroom is a different sales cycle and a different process than the yard, and we're gonna have to build some momentum there. What, again, gives me confidence in this is we have some really talented territory managers on the field that are doing this today that sell pallets of our product out the back because they have a relationship. We're gonna now empower that team and really open up the opportunity, and that's why we're excited and confident it's gonna work. When you're selling to the showroom is a different sales cycle and a different process than the yard, and we're gonna have to build some momentum there. when you're selling to the showroom is a different sales cycle and a different process than the yard and we're gonna have to build some momentum there What, again, gives me confidence in this is we have some really talented territory managers on the field that are doing this today that sell pallets of our product out the back because they have a relationship. what again gives me confidence in this is we have some really talented territory managers on the field that are doing this today that sell pallets of our product out the back because they have a relationship We're gonna now empower that team and really open up the opportunity, and that's why we're excited and confident it's gonna work. we're gonna now empower that team and really open up the opportunity and that's why we're excited and confident it's gonna work

Speaker 12: Just a real quick question on the TAM is big in the pro distribution side. Your share is really small. Can you talk a little bit more about the competitive set out there. Is this a super fragmented market? Are there big players that you're competing against? When you compete, do you think is your advantage that you've got this wonderful product that's been created on the retail side with a great brand, and therefore you have a better brand opportunity? Is it a pricing advantage that you might have? Maybe just talk a little bit about that. Just a real quick question on the TAM is big in the pro distribution side. just a real quick question on the tam is big in the pro distribution side Your share is really small. your share is really small Can you talk a little bit more about the competitive set out there. can you talk a little bit more about the competitive set out there Is this a super fragmented market? is this a super fragmented market Are there big players that you're competing against? are there big players that you're competing against When you compete, do you think is your advantage that you've got this wonderful product that's been created on the retail side with a great brand, and therefore you have a better brand opportunity? when you compete do you think is your advantage that you've got this wonderful product that's been created on the retail side with a great brand and therefore you have a better brand opportunity Is it a pricing advantage that you might have? is it a pricing advantage that you might have Maybe just talk a little bit about that. maybe just talk a little bit about that

Speaker 11: Yeah. You gave me a lot of good nuggets there, so I'll try and hit those the way I think about it. It is a very fragmented market, and there are some very capable competitors. I mean, PrimeSource's name has already been brought up. We respect those guys. They have a good business model. There are a lot of regions as we go out there, where there are small regional players that are driving and delivering bulk contractor grade quality fasteners. That is an area for us, and then it's where we have partnerships where we have already the fastener set in the front of the store. That's part of the extension in Nashville, and I. That was not a made-up story. I'm not gonna go into the name. I was blown away. Brett and I were blown away. Yeah. yeah You gave me a lot of good nuggets there, so I'll try and hit those the way I think about it. you gave me a lot of good nuggets there so i'll try and hit those the way i think about it It is a very fragmented market, and there are some very capable competitors. it is a very fragmented market and there are some very capable competitors I mean, PrimeSource's name has already been brought up. i mean primesource's name has already been brought up We respect those guys. we respect those guys They have a good business model. they have a good business model There are a lot of regions as we go out there, where there are small regional players that are driving and delivering bulk contractor grade quality fasteners. there are a lot of regions as we go out there where there are small regional players that are driving and delivering bulk contractor grade quality fasteners That is an area for us, and then it's where we have partnerships where we have already the fastener set in the front of the store. that is an area for us and then it's where we have partnerships where we have already the fastener set in the front of the store That's part of the extension in Nashville, and I. that's part of the extension in nashville and i That was not a made-up story. that was not a made-up story I'm not gonna go into the name. i'm not gonna go into the name I was blown away. i was blown away Brett and I were blown away. brett and i were blown away This is one of our best, I guess, Brett, you'd call it hardware locations. We go to the store. It's amazing. We just got into the conversation of Pro, and he's like, "I didn't even know you guys had the quantities." This guy went to lunch with us, meaning this wasn't like he'd never seen us before. He loves our sales guy there. I'm not saying that's every location in America or, you know, North America, but that to me gives me the confidence that there's connectivity. When you take care of the customer, they're willing to give you other opportunities. That's fragmented, yes, and opportunities that we need to lean into. Now, let's not underestimate the fact that you gotta have the pack sizes, you gotta have the demand, you gotta be able to bring it in. This is one of our best, I guess, Brett, you'd call it hardware locations. this is one of our best i guess brett you'd call it hardware locations We go to the store. we go to the store It's amazing. it's amazing We just got into the conversation of Pro, and he's like, "I didn't even know you guys had the quantities." This guy went to lunch with us, meaning this wasn't like he'd never seen us before. we just got into the conversation of pro and he's like "i didn't even know you guys had the quantities." this guy went to lunch with us meaning this wasn't like he'd never seen us before He loves our sales guy there. he loves our sales guy there I'm not saying that's every location in America or, you know, North America, but that to me gives me the confidence that there's connectivity. i'm not saying that's every location in america or you know north america but that to me gives me the confidence that there's connectivity When you take care of the customer, they're willing to give you other opportunities. when you take care of the customer they're willing to give you other opportunities That's fragmented, yes, and opportunities that we need to lean into. that's fragmented yes and opportunities that we need to lean into Now, let's not underestimate the fact that you gotta have the pack sizes, you gotta have the demand, you gotta be able to bring it in. now let's not underestimate the fact that you gotta have the pack sizes you gotta have the demand you gotta be able to bring it in I'm really confident the guy sitting in the back of the room and his team that are out there, we have a world-class sourcing organization and great manufacturing partners that we're able to build and line that up. It's gonna take some time. That's why we're not coming out here and saying, "Hey, there's an incremental 10% growth in this category." I really think it's about making sure we have the right product, making sure that we have the right sales strategy, and then putting the right resources to it. You gotta give us a little bit of time to get the traction, but there's opportunity there. That's. Hopefully, that gives you a little bit more. I know that was somewhat redundant to the last question, but that's really how we think about it, and that's why we believe it works. I'm really confident the guy sitting in the back of the room and his team that are out there, we have a world-class sourcing organization and great manufacturing partners that we're able to build and line that up. i'm really confident the guy sitting in the back of the room and his team that are out there we have a world-class sourcing organization and great manufacturing partners that we're able to build and line that up It's gonna take some time. it's gonna take some time That's why we're not coming out here and saying, "Hey, there's an incremental 10% growth in this category." I really think it's about making sure we have the right product, making sure that we have the right sales strategy, and then putting the right resources to it. that's why we're not coming out here and saying "hey there's an incremental 10% growth in this category." i really think it's about making sure we have the right product making sure that we have the right sales strategy and then putting the right resources to it You gotta give us a little bit of time to get the traction, but there's opportunity there. you gotta give us a little bit of time to get the traction but there's opportunity there That's. that's Hopefully, that gives you a little bit more. hopefully that gives you a little bit more I know that was somewhat redundant to the last question, but that's really how we think about it, and that's why we believe it works. i know that was somewhat redundant to the last question but that's really how we think about it and that's why we believe it works When you can get the sales team fired up, and you give them something to go sell, and then you give them the training so they have the confidence, is super important. For me, I believe in this story and this vision. That's why I can get up here in front and talk about it. It's the same idea that's in front of a customer. You go out there and you give them the product, and they have the company behind them to back it up, they can go out there and execute. That's what's really exciting about it. That's why we love our sales force and what they do. We gotta go give them the ammunition to fire the gun. When you can get the sales team fired up, and you give them something to go sell, and then you give them the training so they have the confidence, is super important. when you can get the sales team fired up and you give them something to go sell and then you give them the training so they have the confidence is super important For me, I believe in this story and this vision. for me i believe in this story and this vision That's why I can get up here in front and talk about it. that's why i can get up here in front and talk about it It's the same idea that's in front of a customer. it's the same idea that's in front of a customer You go out there and you give them the product, and they have the company behind them to back it up, they can go out there and execute. you go out there and you give them the product and they have the company behind them to back it up they can go out there and execute That's what's really exciting about it. that's what's really exciting about it That's why we love our sales force and what they do. that's why we love our sales force and what they do We gotta go give them the ammunition to fire the gun. we gotta go give them the ammunition to fire the gun

Speaker 12: Just on, I guess, on the back of that question. On the large format stuff, is the market today rational in general? How big a differentiator is a quality brand in large format versus pack size in the front of the store, both to your buyer and then to their customer? Just on, I guess, on the back of that question. just on i guess on the back of that question On the large format stuff, is the market today rational in general? on the large format stuff is the market today rational in general How big a differentiator is a quality brand in large format versus pack size in the front of the store, both to your buyer and then to their customer? how big a differentiator is a quality brand in large format versus pack size in the front of the store both to your buyer and then to their customer

Speaker 11: Yeah, a couple of things there. You know, will we expand our category into some of the more bulk or, you know, bulk products that, you know, may be more price sensitive? We are gonna evaluate that over time. Michael mentioned collated, James has talked about collated before. We're gonna evaluate that. This is not about trying to be everything to everybody. We're not gonna go out there and say, "Hey, our business is growing 12 penny nails out there in the marketplace." That's a commodity type item. Where you see the difference is we've seen the evolution, and I'm gonna geek out for a second, but fasteners, you go from lag bolts, which is a big part of our business today, to construction fasteners by driving innovation. Lag bolts have declined over time because people are using structural screws to complete their applications. Yeah, a couple of things there. yeah a couple of things there You know, will we expand our category into some of the more bulk or, you know, bulk products that, you know, may be more price sensitive? you know will we expand our category into some of the more bulk or you know bulk products that you know may be more price sensitive We are gonna evaluate that over time. we are gonna evaluate that over time Michael mentioned collated, James has talked about collated before. michael mentioned collated james has talked about collated before We're gonna evaluate that. we're gonna evaluate that This is not about trying to be everything to everybody. this is not about trying to be everything to everybody We're not gonna go out there and say, "Hey, our business is growing 12 penny nails out there in the marketplace." That's a commodity type item. we're not gonna go out there and say "hey our business is growing 12 penny nails out there in the marketplace." that's a commodity type item Where you see the difference is we've seen the evolution, and I'm gonna geek out for a second, but fasteners, you go from lag bolts, which is a big part of our business today, to construction fasteners by driving innovation. where you see the difference is we've seen the evolution and i'm gonna geek out for a second but fasteners you go from lag bolts which is a big part of our business today to construction fasteners by driving innovation Lag bolts have declined over time because people are using structural screws to complete their applications. lag bolts have declined over time because people are using structural screws to complete their applications By us focusing our product development there, that's where we think we can win, and that's where the Pro brand that you reference, where it means something. It's exciting to see when you can give people a good Power Pro product, and I'm shamelessly plugging that again because when you get it in people's hand and they see the use case of it, they go drive it. That's what that brand really grew out of, you know, 10+ years ago when we launched Power Pro ONE because it was a great fastener, multipurpose pro-grade fastener that everybody can use. Once you got it in their hands, people started, "Hey, I need Power Pro." That's what they thought of. It's gonna take time. By us focusing our product development there, that's where we think we can win, and that's where the Pro brand that you reference, where it means something. by us focusing our product development there that's where we think we can win and that's where the pro brand that you reference where it means something It's exciting to see when you can give people a good Power Pro product, and I'm shamelessly plugging that again because when you get it in people's hand and they see the use case of it, they go drive it. it's exciting to see when you can give people a good power pro product and i'm shamelessly plugging that again because when you get it in people's hand and they see the use case of it they go drive it That's what that brand really grew out of, you know, 10+ years ago when we launched Power Pro ONE because it was a great fastener, multipurpose pro-grade fastener that everybody can use. that's what that brand really grew out of you know 10+ years ago when we launched power pro one because it was a great fastener multipurpose pro-grade fastener that everybody can use Once you got it in their hands, people started, "Hey, I need Power Pro." That's what they thought of. once you got it in their hands people started "hey i need power pro." that's what they thought of It's gonna take time. it's gonna take time This is a, you know, evolution, not a revolution, but that's I think where there's a space for branded product line, and I think there's an opportunity for us to grow, and there's a massive market for us to go take share. This is a, you know, evolution, not a revolution, but that's I think where there's a space for branded product line, and I think there's an opportunity for us to grow, and there's a massive market for us to go take share. this is a you know evolution not a revolution but that's i think where there's a space for branded product line and i think there's an opportunity for us to grow and there's a massive market for us to go take share Thanks, everyone. That will conclude our Q&A session for Wynn, the Pro and M&A. We'll take a 10-minute break. We wanna stay on time here, so let's do 10 minutes, and then we'll turn it over to Rocky Kraft for the financial section. Thanks, everyone. thanks everyone That will conclude our Q&A session for Wynn, the Pro and M&A. that will conclude our q&a session for wynn the pro and m&a We'll take a 10-minute break. we'll take a 10-minute break We wanna stay on time here, so let's do 10 minutes, and then we'll turn it over to Rocky Kraft for the financial section. we wanna stay on time here so let's do 10 minutes and then we'll turn it over to rocky kraft for the financial section