Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (October 2021)
25 slides from Azz's investor presentation, Oct 26, 2021
Slide 1: AZZ Inc. Strategy and Governance Update Fall 2021
AZZ Inc. Strategy and Governance Update Fall 2021
Slide 2: Safe Harbor Statement
STRATEGY AND GOVERNANCE UPDATE 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 sta
Slide 3: Vision and Values
STRATEGY AND GOVERNANCE UPDATE 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 wi
Slide 4: AZZ at a Glance
STRATEGY AND GOVERNANCE UPDATE PRESENTATION $59 $77 $96 $84 FY18 FY19 FY20 FY21 $745 $856 $987 $819 FY18 FY19 FY20 FY21 4 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 append
Slide 5: Our Current Portfolio
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 5 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 ■
Slide 6: Strategic and Financial Initiatives to Enhance Shareholder Value
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 6 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 N
Slide 7: Targeting Increased Capital Return to Shareholders
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 7 Targeting Increased Capital Return to Shareholders ■ Board authorized $100M share repurchase program ■ Continued prioritization of coatings acquisitions ■ Deploy balance sheet to target a net leverage ratio of 2.5x ■ Subject to macro environment Capital
Slide 8: Corporate Governance
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 8 Corporate Governance Board Independence ■ Independent Board (8 of 9 directors) ■ Independent Board Chair ■ All Board Committees comprised of independent directors ■ Regular executive sessions of independent directors Board Practices Board Accountability
Slide 9: Our Board of Directors
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 9 Our Board of Directors Daniel Feehan Chairman, FirstCash ■ Brings significant executive leadership experience with financial reporting, business controls, accounting and strategic planning expertise ■ Former Chairman & CEO at Cash America Experienced lea
Slide 10: Board Composition
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 10 Board Composition We have thoughtfully constructed our Board to advance our strategy Summary of Director Experience, Qualifications, Attributes and Skills Feehan Ferguson Berce Eisman Grannum Jackson McCellon- Allen McGough Purvis CEO / Senior Executive
Slide 11: Board Commitment to Diversity
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 2 Directors 6 - 9 Years 2 Directors Less Than 1 Year 2 Directors Greater Than 10 Years 3 Directors 51 - 60 Years Old 11 Board Commitment to Diversity Diversity of Age We believe that diversity helps to create a high functioning Board Diversity of Tenure Ge
Slide 12: Our Board's Evaluation and Refreshment Process
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 12 Our Board’s Evaluation and Refreshment Process Process Overview Commitment to regular refreshment to evolve our Board in line with our strategy Key Selection Criteria ■ Relevant industry knowledge and diversity of background and experience ■ Practical w
Slide 13: Board Committees and Risk Oversight
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 13 Board Committees and Risk Oversight Our approach to committee composition and responsibilities ■ Our Board has overall responsibility for the effective oversight of risk, whether financial, operational or strategic ■ The Board has delegated responsibili
Slide 14: Shareholder Engagement
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 14 Shareholder Engagement Maintaining an active dialogue with our shareholders is important to our commitment to deliver sustainable, long-term value Process Overview FY 2021 Engagement Activities Our Chair and members of our executive management team regu
Slide 15: Prioritizing Corporate Responsibility and Sustainability
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 15 Prioritizing Corporate Responsibility and Sustainability Approach to Sustainability Committed to growing our business in a sustainable and socially responsible manner ■ Our sustainability framework is integrated into our overall business strategy throug
Slide 16: Recent ESG Highlights
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 16 Recent ESG Highlights Over the last 18 months, we have made progress on a number of fronts related to our ESG practices Enhanced our environmental, social and governance policies and practices Formed a council, led by the Company’s Chief Legal Offic
Slide 17: Environmental Stewardship
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 17 Environmental Stewardship Committed to managing our business is an environmentally responsible manner and prioritizing health and safety Meet or exceed all applicable environment, health and safety (“EHS”) regulations and company standards and continuou
Slide 18: Commitment to Human Capital Management
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 18 Commitment to Human Capital Management Our Culture Our employees are our greatest asset – our success is dependent on the expertise of our people ■ AZZ understands the importance of employees who feel valued and united through shared beliefs and guiding
Slide 19: Executive Compensation Philosophy and Design
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 19 Executive Compensation Philosophy and Design Compensation Aligned with Value Creation FY 2021 Target Pay MixIncentives Aligned with Strategic Plan Base Salary 23% Short-Term Incentive 24% Long-Term Incentive 53% Base Salary 42% Long-Term Incentive 36% C
Slide 20: Our Path to Delivering Long-Term Shareholder Value
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 20 Our Path to Delivering Long-Term Shareholder Value Experienced Board is Advising on Strategy, Overseeing Risk and Supporting Long Term Value Creation Completing Comprehensive Review in Infrastructure Solutions Focusing on Driving Profitable Growth in Me
Slide 21: Appendix and Additional Information
Appendix and Additional Information
Slide 22: Reconciliation of Segment Financials
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 21 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
Slide 23: Reconciliation of Segment Financials (Cont'd)
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 22 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
Slide 24: Reconciliation of Segment Financials (Cont'd)
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 23 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 divestiture
Slide 25: Thank You
Thank You