Headwaters Co., Ltd. · TSE:4011
Headwaters — Investor Presentation (September 2009)
28 slides from Headwaters's investor presentation, Sep 17, 2009
Slide 1: Headwaters Incorporated Presentation
HEADWATERS INCORPORATED > PRESENTATION
Slide 2: Forward-looking statements
page Management may make forward-looking statements during this presentation. Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor crea
Slide 3: Vision Statement
Vision Statement Headwaters improves sustainability by transforming underutilized resources into valuable products
Slide 4: Transaction Overview
Transaction Overview Issuer: Headwaters Incorporated Offering Type: Registered Direct Offering Size: $25 million Security Offered: Common Stock Use of Proceeds: Prepay a portion of Senior Debt Exchange / Ticker: NYSE:HW Pricing: Expected week of September 14 th
Slide 5: Headwaters Incorporated
page Headwaters Incorporated Low cost coal producer Sustainable alternative energy platform Refined coal products qualify for tax credits Leading market positions Diversified revenue stream Extensive national distribution network Market leader in fly ash Increasing market share Broad national footpr
Slide 6: Resources
page RESOURCES FISCAL YEAR 2008 Revenue $313 Million Operating Income: $59.0 Million
Slide 7: Coal Combustion Products
page Coal Combustion Products Converting Residual Waste Into Valuable Products Improved Product Performance – More durable – Greater long-term strength – More workable and pumpable – Mitigates problems caused by salts, chemicals, and some aggregates Cost Savings – 20% to 60% less expensive Positive
Slide 8: Coal Combustion Products: Competitive Advantages
Coal Combustion Products Competitive Advantages Exclusive Long-Term Contracts -100 power plants in 35 states -Control 50% of available supply Nationwide Infrastructure -Over 30 terminals -90 plant site supply facilities -100+ trucks -1,200+ railcars Technology Advancements -Ammonia Slip -Carbon Fixa
Slide 9: Fly Ash Shipments and Estimated Market Share
page Coal Combustion Products Headwaters Resources’ Fly Ash Shipments Estimated Market Share* Boral Lafarge Headwaters Other * Estimated Industry Data Provided by ACAA.
Slide 10: Coal Combustion Products
page Coal Combustion Products Our capital investments in storage and rail terminals have allowed us to increase market share * Estimated Industry Total provided by ACAA.
Slide 11: Forecasted Cement Consumption
Forecasted Cement Consumption *August 2009 Portland Cement Association Forecast
Slide 12: Opportunities
page Opportunities Increase and optimize supply – Continue to extend existing agreements – Continue to expand infrastructure – Acquire new supply Site service work – Leverage existing experience and expertise – Work is not economy dependent Continuous Improvement
Slide 13: Headwaters Energy Services Coal Cleaning
Headwaters Energy Services Coal Cleaning FISCAL YEAR 2008 Revenue: $38.7 Million
Slide 14: Headwaters Coal Cleaning Business
page Headwaters Coal Cleaning Business Coal is America's Most Abundant Energy Resource Inexpensive and abundant More than half of U.S. electricity generation Usage for electricity growing New market potential for synthetic natural gas or liquid transportation fuels Coal has Great Environmental Chall
Slide 15: Coal Recovery
page Coal Recovery Converting Waste Coal Into a Valuable Product Eleven facilities (7 in operation) – Wet and dry processing technologies Large addressable market – 3-5 billion tons of waste High margins drive economic potential Environmental benefits – Solid waste utilization – Land reclamation – E
Slide 16: Annualized Production Capacity
Annualized Production Capacity - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Annualized Production at Facilities Currently Operating Nameplate Capacity at Facilities Currently Operating Total Facility Capacity Tons
Slide 17: Headwaters Building Products
page Headwaters Building Products Fiscal Year 2008 Revenue: $457.0 Million *Operating Income: $18.5 Million *Excludes goodwill impairment
Slide 18: Leading Positions in Attractive Markets
page Leading Positions in Attractive Markets Variety of concrete based masonry unit products Regional branding Regional distribution Most authentic natural manufactured stone Multiple national brands for optimal customer segmentation National manufacturing platform Low cost competitive manufacturing
Slide 19: Building Products Competitors
page Building Products Competitors Source: management estimate
Slide 20: Leading National Manufacturer
Leading National Manufacturer #1 in resin shutters & siding accessories #1 in architectural stone veneer #1 Texas concrete block ESTIMATED REVENUE BY CATEGORY
Slide 21: Building Products Growth Initiatives
Building Products Growth Initiatives Developed and introduced new niche products featuring: – Early stage product life cycle – Faster than average growth – Examples • Specialty siding • Functional Shutters • Dutch Quality and Stone Craft brands • Synthetic slate roofing Leverage distribution channel
Slide 22: Sustainability Within Building Products
Sustainability Within Building Products Headwaters Building Products division is committed to continuous improvement in its processes and products – Tapco utilizes roughly 25% of its internal regrind material in various products – Foundry plans on purchasing 30% recycled raw materials from other sou
Slide 23: Financial Strategy
Financial Strategy Liquidity – ABL with availability up to $70 million (under negotiation) – Reduced capital expenditures 2010 Refinancing of 2011 and 2012 Maturities – Maturities balance as of June 30 was $352.4 million – Reduce maturities by $100 million • Successfully completed Equity for Convert
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (in $ millions) For the period ended 6/30/2009 Assets: Cash & Equivalents $14.0 Other Current Assets 188.7 Total Current Assets $202.7 Property, Plant & Equipment (Net) $324.5 Goodwill 116.0 Other Intangibles 209.1 Other Long-Term Assets 50.3 Total Assets $902.6 Liabilitie
Slide 25: Revenue
Revenue (excludes Section 45K Results) (dollars in millions) $768 $861 $858 $819 $479* YTD * Excludes sold mortar/stucco business $520 $573 $544 $457 $249 YTD Revenues for Building Products Segment Reported Revenue $1,065 $1,121 $1,208 $886 $479 YTD
Slide 26: Consolidated EBITDA & Net Income
$117 $128 $145 $30 $11 $14 2007* 2008* EBITDA Net Income Consolidated EBITDA & Net Income * Excludes goodwill impairment of $98 million and $205 million in 2007 and 2008 respectively ** Segment EBITDA calculated as operating income plus depreciation (Excludes Section 45K Business) (Dollars in Millio
Slide 27: Earnings per Share from Continuing Operations
* Excludes goodwill impairment of $98 million ** Excludes goodwill impairment of $205 million ***Excludes goodwill impairment of $465.7 million Earnings per Share from Continuing Operations (Excludes Section 45K Business) * Excludes goodwill impairment $0.69 $0.29 $0.27 $0.02 2007* 2008** YTD*** *EP
Slide 28: Headwaters
page HEADWATERS Company Update September 2009 “Improving sustainability by transforming underutilized resources into valuable products”