Azz Inc. · NYSE:AZZ
Azz — CL King 18th Annual Best Ideas Conference (August 2020)
21 slides from Azz's conference presentation, August 2020
Slide 1: AZZ Inc. Investor Presentation
AZZ Inc. Investor Presentation August 2020
Slide 2: Safe Harbor Statement
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Safe Harbor Statement Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify for
Slide 3: Overview
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Overview AZZ is a global provider of galvanizing and metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. Significant B
Slide 4: AZZ at a Glance
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE AZZ at a Glance Company Profile Fiscal Year 2020 Results Headquarters Ft. Worth, Texas By Sales By Operating Income (in millions) (in millions) FY2020 Sales $1.06 Billion $32,845 23% Market Cap* $910 million $562,828 $498,989 53% 47% $107,926 77% Facilities
Slide 5: COVID-19 Update
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE COVID-19 Update Impact on Financial Suspended previously issued FY2021 guidance Results Energy platform has been negatively affected by turnaround deferrals and lower project bookings due to customer slow-downs Cash balance of $26.4 million as of Q1 F
Slide 6: Strategic Direction
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Strategic Direction • Long term strategy to grow Metal Coatings organically and with a robust acquisition program, while targeting 21-23% Operating Margins for the Segment • Grow share within hot-dip galvanizing and surface technologies markets • We current
Slide 7: Metal Coatings and Energy Segment
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Metal Coatings Energy Segment Galvanizing, Surface Technologies Electrical Products Industrial Solutions 1 2 3 Multiple Infrastructure Markets Industrial, T&D, Power, Electric Utility Refinery & Power Hot Dip Galvanizing E-houses, Switchgear, Medium and Spe
Slide 8: Metal Coatings
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Metal Coatings The Metal Coatings Segment provides hot-dip 1 galvanizing, powder coating, plating and other metal coatings to the steel fabrication industry through 46 facilities located throughout the United States and Canada 8
Slide 9: Metal Coatings end markets
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Electrical Utilities Industrial OEMs Recreation Petrochemical Agriculture Bridge & Highway Construction 9
Slide 10: Metal Coatings' leading hot-dip galvanizing market position offers adjacency opportunities
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Metal Coatings’ leading hot-dip galvanizing market position in North America offers adjacency opportunities in corrosion protection. North America’s largest galvanizer • 40 locations throughout the U.S. and Canada • Differentiate on service & quality Expand
Slide 11: The Energy Segment
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE The Energy Segment is a manufacturer of specialty electrical equipment focusing on safe and reliable transmission of power from generation sources to end customers, and a specialty welding service provider that ensures the safety and reliability of critical
Slide 12: AZZ builds, maintains, rehabilitates and strengthens electrical and industrial infrastructure
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE 2 AZZ builds, maintains, rehabilitates and strengthens electrical and industrial infrastructure globally Enclosure Systems Switchgear Systems High Voltage Bus Medium Voltage Bus Hazardous Duty Lighting Tubular Products • Manufacturer of custom • Leading ind
Slide 13: Specialized maintenance solutions through automated welding
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Worldwide leader in developing and delivering specialized maintenance solutions through 3 automated welding, weld cladding and weld overlay technologies that extend the lifetime and maximize the value of assets throughout the energy industry. Coke Drum Repa
Slide 14: Financial Overview
Financial Overview 14
Slide 15: Capital Allocation Focused on Growth
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Capital Allocation Focused on Growth In millions FY2020 Capital Deployment • New business and product lines $60.6 Capital • Systems and technology • Safety, Health and Environmental Expenditures Growth • Strategic fit • Accretive within the first year Acqui
Slide 16: Full Year Financial Guidance
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Full Year Financial Guidance FY2021 Range Key Drivers: In millions , except for EPS Metal Coatings: COVID-19 impact on future quarters Revenue $970-$1,060 Lower zinc costs & Digital Galvanizing System Suspended FY2021 Guidance Energy: $2.65-$3.15 Fall
Slide 17: Q1 FY2021 Summary - Consolidated
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Q1 FY2021 Summary - Consolidated In $millions, except per share amounts Revenue Net Income Diluted EPS -26.2% -74.0% -73.9% $289.1 $0.81 $213.3 $21.3 $0.21 $5.5 FY2020 FY2021 FY2020 FY2021 FY 2020 FY2021 • Lack of spring refining turnarounds • Industrial op
Slide 18: Q1 FY2021 Segment Results – Metal Coatings
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Q1 FY2021 Segment Results – Metal Coatings In millions $ except percentages Revenue Operating Income Operating Margin -2.6% -14.7% -300 bps Key Statistics FY2020 Revenue $122.2 $122.2 $119.0 $29.4 24.1% $25.1 21.1% Organic $(7.6) Acquisitions $4.4 FY2021 Re
Slide 19: Q1 FY2021 Segment Results – Energy
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE Q1 FY2021 Segment Results – Energy In millions $ except percentages Revenue Operating Income Operating Margin -43.5% -108.3% -860 bps Key Statistics $167.0 FY 2020 Revenue $167.0 $12.6 7.5% FY2020 Book to Ship .82 to 1 $94.3 FY2021 Revenue $94.3 FY2021 Book
Slide 20: CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE
CL KING 18 TH ANNUAL BEST IDEAS CONFERENCE 20
Slide 21: Thank You
Thank You
AZZ — CL King 18th Annual Best Ideas Conference (August 2020) on 6ix