1. Jiazi Cui Ying Jiang Presented: April 24, 2014

2. Agenda  Company Overview  Relevant Macroeconomic Trends  Industry Structure Analysis  Financial Analysis  Projections/Assumptions  Valuation  Recommendation

3. Company Overview  Info:  Incorporated in Delaware in 1956  2,295 employees  Market Cap : 1.63 billion  Business:  Through Simpson Strong-Tie Company Inc.  Leading manufacturer of wood construction products and concrete construction products.  Markets:  residential construction, light industrial and commercial construction, DIY.  Channel:  Dealer, builder, home centers, and internet.  Goal:  Help people build safer and stronger homes and buildings.  Acquisition & expansion  Testing labs. Source: SSD 10-K report & FOURTH QUARTER AND FULL YEAR 2013 report By Products By Segments Sales Distribution

4. Products

5. Source: SSD website. Simpson Strong-Tie Locations

6. Management Information NamePositionAgeStart from Karen W ColoniasPresident/CEO561984 Brian MagstadtCFO462004 Jeffrey Eric MackenzieVice President522000 Source: Bloomberg

7. Source: Forecasting the numbers of people affected annually by natural disasters up to 2015 By Shamanthy Ganeshan, Oxfam GB, Research Intern (Economist) & Wayne Diamond, Oxfam GB, Global Research Methods Adviser, EM-DAT Industry Overview

8.  Building Construction Construction Product demand picks up Profit improves with the demands  Industry Performance Industry revenue is expected to keep increase due to an uptick in residential and commercial construction activity. Source: Bloomberg Industry Overview

9.  Increase in investor confidence will boost demand for this industry's services. In 2014, global investor confidence is expected to increase.  Measures private spending on home improvements, upgrades and repairs 2012 increase 2.9% 2013 increase 4.3% 2014 increase 5.1% Source: Bloomberg Industry Overview

10.  Global Steel Price Index  Global Steel Price declined  Recovery since 2015 Source: Bloomberg Industry Overview

11. Porter’s Five forces Rivalry Competition MED-High Competition ranges from subsidiaries of large national or international firms to small regional manufactures. Supplier’s bargaining power MED Mainly dependent on Steel. Purchase raw materials from a variety of commercial sources. Buyer’s bargaining power MED Buyers have several choices. Provide products to diversified customers. Substitutes LOW Required by the building. Supported by building code. Increasing amount of natural disaster. Threat of new entrants LOW Needs significant R&D input. Needs large quantity, high capital requirement. Regulations.

12. Wide Geographic Presence Extensive Distribution Channels Broad Range of Offerings World’s largest lab test Strengths High Inventory Dependence on a few customers Weaknesses Green and Sustainable Construction Market Growth in Building Construction Industry Production Innovation Opportunities Stringent Regulations Intensive Competitions Threats SWOT

13. Source: Yahoo Finance Stock Performance

14. Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg Revenue Growth Rate keep growing FY 2012 R&D expense increase rapidly Financial Analysis

15. Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

16. Financial Analysis Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

17. Financial Analysis

18. Comparable Companies Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

19. Comparable Companies Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

20. Revenue Forecast Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

21. Cost of Capital Source: SSD 2013 10-K, SSD 2010 10-K, Bloomberg

22. Valuation-DCF

25. Implied Share Price Current Stock Price: $33.84

26. Recommendation 26 Watch List