Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (May 2021)
19 slides from Azz's investor presentation, May 4, 2021
Slide 1: AZZ Inc. Investor Presentation
AZZ Inc. Investor Presentation NYSE:AZZ May 4th, 2021
Slide 2: Safe Harbor Statement
INVESTOR PRESENTATION Safe Harbor Statement 2 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, including the statements regarding our
Slide 3: Vision and Values
INVESTOR PRESENTATION 3 Vision and Values GUIDING VALUES ■ We Value Our Dedicated Employees and their communities by fully training and equipping them, and providing a safe environment to grow ■ We Value Our Customers by reliably providing high- quality products and services with outstanding custome
Slide 4: Strategic and Financial Initiatives to Enhance Shareholder Value
INVESTOR PRESENTATION 4 Strategic and Financial Initiatives to Enhance Shareholder Value Metal Coatings ■ #1 in hot-dip galvanizing ■ Strategic plant network with superior service ■ Highly attractive margins and returns ■ Pipeline of synergistic Metal Coatings acquisitions in North America ■ Resilie
Slide 5: AZZ at a Glance
INVESTOR PRESENTATION $59 $77 $96 $84 FY18 FY19 FY20 FY21 $745 $856 $987 $819 FY18 FY19 FY20 FY21 5 56% 44% AZZ at a Glance (NYSE: AZZ) Headquarters Facilities Total Employees Note: Financials pro forma for divestitures of Galvabar, NLI and SMS and one-time expenses. See appendix for reconciliation
Slide 6: Our Current Portfolio
INVESTOR PRESENTATION 6 Our Current Portfolio Metal Coatings (PF FY21 Sales: $457 million) Infrastructure Solutions (PF FY21 Sales: $362 million) Galvanizing Surface Technologies Electrical Products Industrial Solutions ■ Protects, extends and enhances critical infrastructure ■ Powder coatings ■ Pla
Slide 7: Our Leading Metal Coatings Business
INVESTOR PRESENTATION 7 Our Leading Metal Coatings Business Pro Forma FY21 Sales $457 million Note: Financials pro forma for divestiture of Galvabar. See appendix for reconciliation to reported GAAP financials Key Facts End Markets ServedBusiness Highlights Highly attractive margins and returns
Slide 8: North America's Largest Hot-Dip Galvanizer
INVESTOR PRESENTATION 8 North America’s Largest Hot-Dip Galvanizer ■ Expansive footprint with 39 galvanizing locations throughout the U.S. and Canada ► Proximity to customers offers competitive advantage ► Strong back-office and logistics network drive sales and operational efficiencies ► Facilities
Slide 9: We Expect to Continue our Outperformance in Metal Coatings
INVESTOR PRESENTATION $375 $389 $440 $496 $457 21.4% 22.1% 19.6% 22.3% 23.5% FY17 FY18 FY19 FY20 FY21 9 We Expect to Continue our Outperformance in Metal Coatings Note: Financials pro forma for divestiture of Galvabar. See appendix for reconciliation to reported GAAP financials Growth Drivers Pro Fo
Slide 10: Considerations for Maximizing Value of Infrastructure Solutions
INVESTOR PRESENTATION $244 million Mid single digit ~57% T&D ~15% Industrial ~28% Power ~89% North America ~11% Other $119 million Low single digit ~60% Refining ~40% Other ~72% North America ~28% Other 10 Considerations for Maximizing Value of Infrastructure Solutions Note: Represents Fiscal Year 2
Slide 11: Infrastructure Solutions is a Portfolio of Diverse Businesses
INVESTOR PRESENTATION 11 Infrastructure Solutions is a Portfolio of Diverse Businesses 1. Proportion of Fiscal Year 2020 segment sales of $491mm pro forma for divestitures of NLI and SMS. See appendix for reconciliation to reported GAAP financials Enclosures Switchgear Bus Duct Tubular and Lighting
Slide 12: Infrastructure Solutions Segment: Market and Trends
INVESTOR PRESENTATION 12 Infrastructure Solutions Segment: Market and Trends E le c tr ic a l P ro d u c ts Enclosures In d u s tr ia l S o lu ti o n s Switchgear High Voltage Tubular and Lighting Specialty Weld Overlay E-housing growth driven by transmission & distribution (T&D) spending, modular
Slide 13: Targeting Increased Capital Return to Shareholders
INVESTOR PRESENTATION 13 Targeting Increased Capital Return to Shareholders ■ Deploy balance sheet to target a net leverage ratio of 2.5x ■ Board authorized $100M share repurchase program ■ Continued prioritization of coatings acquisitions ■ Subject to macro environment Capital Expenditures Acquisit
Slide 14: Q&A
Q&A
Slide 15: Appendix and Additional Information
Appendix and Additional Information
Slide 16: Reconciliation of Segment Financials
INVESTOR PRESENTATION 16 Reconciliation of Segment Financials Fiscal Year 2017 Segment $(millions) As Reported (a) Adjustment As Adjusted Sales 863.5 (99.9) 763.6 Metal Coatings 375.5 (0.2) (1) 375.4 Infrastructure Solutions 488.0 (99.7) (2) 388.3 Operating Profit 98.9 (8.7) 90.2 Metal Coatings 79.0
Slide 17: Reconciliation of Segment Financials (Cont'd)
INVESTOR PRESENTATION 17 Reconciliation of Segment Financials (Cont’d) Fiscal Year 2019 Segment $(millions) As Reported (a) Adjustment As Adjusted Sales 927.1 (71.3) 855.8 Metal Coatings 440.3 (0.7) (1) 439.5 Infrastructure Solutions 486.8 (70.6) (2) 416.2 Operating Profit 77.0 0.5 77.4 Metal Coatin
Slide 18: Reconciliation of Segment Financials (Cont'd)
INVESTOR PRESENTATION 18 Reconciliation of Segment Financials (Cont’d) (a) – Reported in conformity with US GAAP (1) – Reflects impact of Galvabar divestiture (closed in Jul. 2020) and related restructuring and impairment charges (2) – Reflects impact of NLI and SMS divestitures (closed in Feb. 2020
Slide 19: Thank You
Thank You NYSE:AZZ