Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (February 2010)
29 slides from Azz's investor presentation, Feb 17, 2010
Slide 1: Structured for sustainability
—_ Structured for sustainability
Slide 2: Forward Looking Statement
2 Except for the statements of historical fact, this report may contain forward-looking statements that involve risks and uncertainties some of which are detailed from time to time in documents filed by the company with the SEC. Those risks and uncertainties include, but are not limited to: changes
Slide 3: Company Overview
3 AZZ is a specialty electrical equipment manufacturer serving the global markets of power generation, transmission, distribution and industrial as well as a leading provider of hot dip galvanizing services to the steel fabrication market nationwide. Company Overview
Slide 4: Total Company Sales By Segment
45% 43% 55% 57% 51% 49% 4 Total Company Sales By Segment Actual FY2009 $412.4 (in millions) Projected FY2010 $350 to $355 (in millions) Projected FY2011 $310 to $330 (in millions) Galvanizing Electrical and Industrial
Slide 5: Total Company Sales By Market Segment
5 Total Company Sales By Market Segment Actual FY2009 $412.4 (in millions) Projected FY2010 $350 to $355 (in millions) Projected FY2011 $310 to $330 (in millions)
Slide 6: Electrical and Industrial Products
6 Electrical and Industrial Products
Slide 7: Electrical and Industrial Products
7 Electrical and Industrial Products Projected 2011 $150 to $160 (in millions)
Slide 8: Power Plant Generation
Power Plant GENERATION a Structured for sustainabilit
Slide 9: Structured for sustainability
Structured for sustainabilit
Slide 10: Power Distribution
10 Power Distribution
Slide 11: Industrial / Commercial
11 Industrial / Commercial
Slide 12: $200 DP $180 $160 $140 $120 $100 $80 $60 $40 $20 LELELESEREEELSENELEASSENEEEELSE Structured for
$200 DP $180 $160 $140 $120 $100 $80 $60 $40 $20 LELELESEREEELSENELEASSENEEEELSE Structured for sustainabilit
Slide 13: Backlog ($ In Millions)
13 Fiscal 2008 Fiscal 2009 1 st Qtr 2010 2 nd Qtr 2010 3 rd Qtr 2010 Beginning Backlog $120.7 $134.9 $174.8 $150.0 $139.4 Bookings $334.4 $452.3 $70.7 $84.5 $73.9 Shipments $320.2 $412.4 $95.5 $95.2 $81.5 Ending Backlog $134.9 $174.8 $150.0 $139.4 $131.8 Book to Ship Ratio 104% 106% 74% 89% 91% Back
Slide 14: Structured for sustainability
Structured for nabilit
Slide 15: Galvanizing Application and Locations
15 Application: “After-fabrication” steel corrosion protection Locations: 22 facilities in 13 states
Slide 16: Galvanizing Services
16 Galvanizing Services Projected FY2010 $150 to $155 (in millions) Projected FY2011 $160 to $170 (in millions)
Slide 17: Structured for sustainability
— Structured for sustainability
Slide 18: Consolidated Net Sales
18 Consolidated Net Sales ($ In Millions) $350 to $355 $310 to $330
Slide 19: Consolidated Net Sales First Nine Months FY10
19 Consolidated Net Sales First Nine Months FY10 ($ In Millions)
Slide 20: Earnings Per Share (Fully Diluted)
20 Earnings Per Share (Fully Diluted) $2.95 to $3.00 $1.85 to $2.20
Slide 21: Earnings Per Share First Nine Months FY10
21 Earnings Per Share First Nine Months FY10 (Fully Diluted)
Slide 22: Operating Margins by Segment
Electrical and Industrial Products 19.5% 20.0% , 18.0% | 16.3%417-2% 16.0% 14.5% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2007 2008 2009 2010 2011 Actual @ Projected 30% 25% 20% 15% 10% 5% 0% Galvanizing Services 29.0% 28.5% 29-5% 24.9% 25% 2007 2008 2009 2010 2011 BActual WProjected Structured fo
Slide 23: Operating Margins First Nine Months FY10
23 Operating Margins First Nine Months FY10 Electrical and Industrial Products
Slide 24: Cash Provided By Operations / EBITDA / Free Cash Flow
Cash Provided By Operations / EBITDA / Free Cash Flow ($ In Millions) T T T T 1 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year -—@Cash Pro. By Oper. -*-Free Cash Flow -®-EBITDA --
Slide 25: Total Bank Debt / Long Term Debt to Equity
25 Total Bank Debt / Long Term Debt to Equity ($ In Millions) Projected Debt Projected Debt to Equity Ratio Projected Cash Fiscal Year
Slide 26: Capital Expenditures / Depreciation
26 Capital Expenditures / Depreciation ($ In Millions) $17.0
Slide 27: Electrical and Industrial Products / Galvanizing Services
Electrical and Industrial Galvanizing Services Products 29% 30% 28% Sy 50% ° 26% 50% 9/2 46% me 25% 22% 40% , 20% a2 30% 15% 20% 10% 7 m 10% 0% O% 2007 2008 2009 2010 2007 2008 2009 2010 MActual Projected WActual = Projected Structured for sustainability
Slide 28: Investment Summary
28 Investment Summary • Strong Historical Performance Ø FY10 was 23 rd consecutive year of profitability Ø 5 Yr CAGR - Revenues 19%, Net Income 51%, EPS 38% Ø Significant Operating Margins (above industry averages) • Key Growth Drivers Ø Domestic & international demand for electrical power and energ
Slide 29: Structured for sustainability
—_ Structured for sustainability