Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — 2014 RBC Capital Markets' Global Industrials Conference
26 slides from Advanced Drainage Systems's conference presentation, Sep 9, 2014
Slide 1: 2014 RBC Capital Markets' Global Industrials Conference
Exhibit 99.1 2014 RBC Capital September LEADERSHIP2014• GROWTH Markets’ Global • MOMENTUM IndustrialsTHROUGH Conference STRENGTH
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward Financial Certain 1934, thereto. identify availability which residential corrugated thermoplastic operations processes; programs; environmental risks the all. Company This Those other LEADERSHIP 2THROUGH inclusion Investors presentation and risks companies. as we disclosures statements Words
Slide 3: Management Presenters
Management Joseph Chairman, Mark Executive Years LEADERSHIP 3THROUGH Sturgeon atChlapaty in theVice President Company: Industry: STRENGTH Presenters President, • GROWTH &33 33 CEOFinance • MOMENTUM & CFO
Slide 4: The ADS Track Record
ADSonly The Track Large Demonstrated Experienced LEADERSHIP 4THROUGH leading –record addressable Ancomplete Industrial player STRENGTH management ofability •market GROWTH opportunity in solutions Growth to theshare deliver industry team •provider Company gains MOMENTUM across above withwith signific
Slide 5: ADS at a Glance: Company Snapshot
Company Significant ADS infrastructure Core Superior Network Highly FY2014 88% Domestic 12% International Agriculture Non- 19% 21% Residential 9% Infrastructure Our 1. LEADERSHIP Does Culture: 51% Construction: products At is Note: diversified the not A Revenue Sales Domestic physical ofSnapshot Gla
Slide 6: Comprehensive Product Portfolio
PipeUnits $809mm Dual StormTech® Single Inserta Nyloplast® Tee Comprehensive Note: 6LEADERSHIP Products Wall Net Wall Water of& Sales (N-12) Triple FY2014 FleXstorm Filters Chambers Quality Portfolio: •product Product based GROWTH HP Wall Net Storm on Geotextiles Structures Allied offering Portfolio
Slide 7: Water Management Solutions Across the Project Lifecycle
Water Chambers StormTech Pipe Wastewater Fittings Structures Nyloplast Downspout Culverts Project Technical INFLUENCE Initiation TO LEADERSHIP TIME ABILITY PROJECT Disposal Management Life /Financial Design Edge Water Foundation /Cycle Landscape Concept Feasibility •Drains Quality GROWTH Solutions /
Slide 8: The Clear Market Leader
The Clear Clear Unmatched Fleet Unrivaled Manufacturing Long-standing Sole LEADERSHIP 8THROUGH provider of market approximately Market technical Operating operating STRENGTH leading ofrelationships Plant • holistic GROWTH Leader expertise positions scale Platform 625 water tractor-trailers and with
Slide 9: Significant Customer Relationships and Competitive Advantages
Significant Customer Customers Supply & Field Approvals Relationships ADS’ Competitors Offering Product Comprehensive Specifications LEADERSHIP 9THROUGH Logistics Personnel product Chain, Service, /Competitive STRENGTH portfolio, •/ GROWTH Advantages technical • MOMENTUM expertise, history of approv
Slide 10: Superior Strength and Corrugated HDPE vs. Alternatives
A Strength Reinforced Corrugated Fully-installed Ease Installation Structural Resistance Joint Flow = Overall Commentary HDPE All Failure Key RCP in under-performs High LEADERSHIP THROUGH 10 Superior the 3problem resistance is /integrity Density equal characteristics lab speed /as due PPbut good int
Slide 11: Three-Pronged Growth Strategy
Three-Pronged Focus Provide Allied offerings Portfolio Allows Differentiates Market Current Experts end New Well LEADERSHIP THROUGH 11 market positioned housing on Products Conversion Recovery us addressable predict aof displacing strong tostorm STRENGTH offer starts usGrowth •solid to value as GROW
Slide 12: HDPE Market Conversion Continues
A Strong Corrugated Contractors, We 1. 2. LEADERSHIP HDPE THROUGH 12 Based Source: continue share on History MarketLine. HDPE Management’s STRENGTH engineers, of to capture strom • GROWTH ofpipe Market sever market and has estimates. been municipalities market(1) Conversion • MOMENTUM share displaci
Slide 13: New and Established Products Comprehensive Offering
New Established 2014 2013 Baysaver 2012 2011 2010 MC4500 Product 2009 Allied MC3500 ($ $250 $249 $260 $300 $350 FY11 $100 $150 $200 $195 HP FleXstorm Chambers Comprehensive 1. LEADERSHIP THROUGH 13 Historical mm) N-12 Product Acquired $231 FY12 Products Product introduction: StormTech® joint ‘11 Nyl
Slide 14: Addressable Domestic Market Opportunity
Addressable FY2014 ($ 164 200 150 111 Non- Agriculture 51% 19% Total Thousands Infrastructure 9% 1,875 1,355 Residential 21% 02571 625 Domestic 1. 2. LEADERSHIP THROUGH 14 007 005 Total Non-residential bn) 2,068 105 155 122 604 Construction: 2008 2006 U.S. 100 1,525 1,325 U.S. 110 124 631 Domestic m
Slide 15: Track Record of Above-Market Growth
Track FY2010A Non-Residential 15% 10% 6% 5% 0% -5% -10% (6%) ADS Our 1. LEADERSHIP Based 17% 0% 10% holistic 3% 15% 22% 2% Growth 0% Record -5%(4%) 20% on -10% 10% – management FY2014A water Market of30% •0% Above Residential GROWTH management Growth Domestic Market estimates. Infrastructure • (1) M
Slide 16: Operational Scale and Technical Expertise
Operational Scale 58 152 Fleet Advanced, Significant Industry Team Unique, Cutting Ability Vertically Our LEADERSHIP 16 manufacturing global leading of and ofto edge ~625 proprietary 50 Leading Capacity utilize integrated pipe versatile production field-based Excellence market resin tractor-trailers
Slide 17: Emerging International Markets Focus
Emerging Creating Focus Mexico Canada South A 100% ~30 Infrastructure JV Manufacturing Distribution Established LEADERSHIP THROUGH 17leading strategy exclusive America owned on/ strong Central attractive HDPE Markets in platform Center STRENGTH primarily Brazil, territory Plant •growth GROWTH Americ
Slide 18: Financial Overview
Financial Overview LEADERSHIP THROUGH STRENGTH • GROWTH • MOMENTUM
Slide 19: Financial Highlights
Financial Above-Market Strong Attractive Unmatched Ability Poised Ongoing Significant Minimal Proven Well LEADERSHIP THROUGH 19 positioned Earnings to history tointerest focus benefit Highlights deliver End Cash production track STRENGTH Market of Growth on •Flow to Momentum expense GROWTH from reco
Slide 20: First Quarter of Fiscal 2015 Highlights
FirstofFiscal Quarterly Adjusted As Note: section LEADERSHIP July Historical ofearnings EBITDA net our 30, Quarter sales web 2014; •financial GROWTH per site of increased 2015 fully $49.2 fully – ADS-Pipe.com Highlights information converted converted million •12.0% MOMENTUM shares share available o
Slide 21: Historical Revenue, Adjusted EBITDA and Free Cash Flow
Historical Actively Commentary Muted Improving Revenue $1,100 $1,200 $1,014 $900 $1,000 $500 $600 $700 $800 FY Adj. $160 $140 25% $120 $117 $101 $100 14% $80 $40 309% 10% $60 $20 5% 121% $0 2011 (3) Note: 1. 2. 3. LEADERSHIP THROUGH 21 EBITDA Free Excludes 0% Adjusted Revenue Free 12% 200% 178% EBIT
Slide 22: Appendix
LEADERSHIP Appendix THROUGH STRENGTH • GROWTH • MOMENTUM
Slide 23: Shares Outstanding
Shares June stock Weighted July As Period outstanding: Common Unvested Convertible Total LEADERSHIP THROUGH 23 of30, 30, Shares outstanding: June July Ending Outstanding 2014 2014 Stock Average Restricted 30, 30, Preferred STRENGTH Outstanding (Post-IPO) (Pre-IPO) 2014 Shares 2014, •52,876,151 47,53
Slide 24: Quarterly Adjusted EBITDA Reconciliation
Three Ended (Amounts Net Depreciation Interest Income EBITDA Derivative Foreign Unconsolidated Management Share-based ESOP Transaction Adjusted Note: a) of b) LEADERSHIP THROUGH 24 Includes unconsolidated Represents income Fiscal Months deferred June expense, tax currency and 42,880 EBITDA in fair o
Slide 25: Fiscal Year Adjusted EBITDA Reconciliation
EBITDA FY2011 Fiscal (Amounts Net Depreciation Interest Income EBITDA(1) Derivative Foreign Unconsolidated Gain Management Special Contingent Stock ESOP Transaction Adjusted Note: 1.EBITDA 2. LEADERSHIP THROUGH 25 Adjusted income on from Fiscal based Year deferred dividend expense, tax currency sale
Slide 26: Leading Distribution Network and Highly Supported Sales Force
Leading Network Highly Supported Help Consistently Extensive [Graphic Our RSHIP broad technical educate trained • Sales GROWTH Appears ofNetwork product by over maintain design approximately expertise, Force and 230 Here] suite qualified of•engineers dedicated MOMENTUM thousands Distributors Distrib
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