Mueller Water Products · NYSE:MWA
Mueller Water Products — Janney Capital Markets Water Industry Summit 2011
32 slides from Mueller Water Products's conference presentation, Mar 21, 2011
Slide 1: Mueller Water Products - Janney Water Industry Summit
Exhibit 99.1 Mueller Janney 2011 MarchWater 24, Capital Water 2011 Industry Products Markets Summit
Slide 2: Safe Harbor Statement
Mueller Safe This or limited utilization, statements the •market 2Undue the developments timing Harbor presentation spending demand Company’s other reliance and to, Water of statements factors are the regulatory Statement events level level based Products recovery, should ability that contains that
Slide 3: Non-GAAP Financial Measures
Mueller Non-GAAP The (loss) and of the flow less net Company’s 3A reconciliation financial tax income amortization. cash Company represents from onWater and the (loss) operations results performance. Financial cash repatriation presents Products cash ofper The equivalents. as non-GAAP flows share, r
Slide 4: Investment Highlights
Increasing One Leading Leveraging Low-cost 4Mueller of the Water North brands manufacturing investment largest brands Products American in installed water to expand needed Investment infrastructure processes provider bases smart in water inofwater the Highlights water infrastructure U.S. infrastruct
Slide 5: Our Mueller Water Products Portfolio
•Our Mueller FY2010 Net Repair Non-residential Residential The (1) 5*(2) Valves $1.3B Portfolio Fire Pipe Ductile Metering Leak Specified More Residential Valves Based Sales largest Business hydrants fittings detection and than LTM Water Co. Primary iron $1.3B on or includes: systems replacement in
Slide 6: Broad Portfolio of Products and Historical Segment Results
Broad ($ HISTORICAL SEGMENT DEPRECIATION ADJUSTED Mueller PORTFOLIO PRODUCT Iron Hydrants $123 $49 $74 $609 Butterfly, Metering US Ductile ($32) $19 ($51) $373 Restrained Joint Anvil Est. Cast $40 $15 $25 $330 Fittings Pipe Hangers Note: (1) 6(2)inSegment PIPE 1857 1899 1999 Gate Nipples Iron millio
Slide 7: Complete Drinking Water Solutions
Complete Drinking Ductile Office Gate Fire Corporation Curb Leak Fittings, Metering Gate, Residential Pipe Pump Fabricated Water •This 7Mueller Anvil Muller U.S. Hydrant Protection Restraint Condition diagram Valve and Valve Detection Butterfly, Station Treatment Discharge Pipe Building Internationa
Slide 8: Water Infrastructure Landscape
Water FIRE GATE BUTTERFLY BRASS DUCTILE Mueller A.Y. ACIPCO Ford DeZURIK *Griffin 8McWane Company McDonald Meter HYDRANTS Infrastructure VALVES Pipe Water WATER IRON Box estimates AND Products PRODUCTS PIPE BALL Landscape* based Position VALVES on internal #1 #1 #1 analysis #2 #1 and information fro
Slide 9: Strategy and Objectives
Mueller internationally Strategy Capitalize Maintain Continue Broaden 9Expand Water And breadth leadership toonenhance Objectives the Products and large, positions operational depth attractive of with products and and customers organizational growing and services and water endexcellence infrastructu
Slide 10: Our End Markets
Mueller Our EndWater Markets Products
Slide 11: Primary End Markets
Mueller Primary FY Net Non-residenetial Repair Non-residential Residential Since Source: *Residential 11 2006 2010 Sales: 2006, and Management Water End$1.9B $1.3B replacement construction* our construction Markets: Products construction exposure construction estimates 2006-2010 ofto 40% 5% is munic
Slide 12: Historical Housing Starts
Mueller Historical Seasonally 2,400 Units 1,400 Bottom April 1991 Jan-91 12 –2009 (thousands) 2,150 1,150 Jan-92 2011 of Water Housing prior Adjusted –900 1,900 Average Lowest Jan-93 Products down 650 1,650 Starts Annualized 400 starts 1,417 Jan-94 cycle (1991 (477) (798) Jan-95 - since February Jan
Slide 13: Non-Residential Construction Indicators
Non-Residential Exhibit 20% 2% Change Note: 1990 Architecture AIA (Diffusion 65 1999 Source: We 13 60 continue -14% Architecture 15% 1991 2001 Excludes 5513: Census IHS in50 -5% 10% Value index, 1992 2003 Zelman 45 Global Billings to7% 5% 40 see Manufacturing Bureau, 1993 2005 Construction Put-in-Pl
Slide 14: A Significant Market Opportunity
Mueller A Significant WaterMarket Products Opportunity
Slide 15: Aging Drinking Water Infrastructure
Mueller Aging Drinking 1988 1998 2001 2005 1American *National “America’s This 2009 15 does B* D D- Report Water Water Water1 not Council Society drinking Card Infrastructure account Products for on ofwater America’s Public for Civil growth systems Engineers Works Infrastructure in face Improvements
Slide 16: The Repair and Replacement Market Opportunity
Mueller The Repair •Funding Source: (2) (3) (4) Future Infrastructure Source, Storage, Treatment, Other, Transmission Area 20-YR 16 Aging Valves UpGovernment Emphasis 90% 29% Global EPA Market to inof funded $2.3B Drinking and Need 15% which $19.8B water (1) Water Clean and $36.9B water Water $75.1B
Slide 17: Aging Water Infrastructure
Mueller Aging 2.0% Percentage 2.5% Accelerating 2000 Figure Year Average (1) 17 The Installed 2010 1.5% 2.0% Water 2–10: 2–11: EPA Water life2020 of 1.0% 1.5% of Clean Age Infrastructure Projected Need Inventory Replacement Products 100 2030 0.5% 1.0% Distribution Water year 2040 Annual 0.0% 0.5% an
Slide 18: Increasing Awareness of Funding Needs
Mueller Increasing •Stronger — “New life-cycle The 18At 1974/1996 2011 Atlanta Washington, Baltimore Kansas Cincinnati $1.3B least Clean Jersey proposed Water EPA 40 for cost.” Water $4.0B City Federal cities Safe can Drinking City $1.5B regulations Products $2.5B D.C. federal maintain Council Drink
Slide 19: Funding Water Infrastructure Repair
Mueller Funding Historical Long-term 350 1913 —Water —Local —Natural —ALL —Telephone —Electricity (CPI) Exhibit The (1) Sources: (2) (3) Sources Operational Rate Other Bonds Grants Loans From 19 AWWA Bureau Black 325 index Increases 1916 2007-2009, 15% 16% 9% 3% ITEMS 1. Water of 300 Phone Water and
Slide 20: Business Actions & Results
Mueller & Actions Water Business Products Results
Slide 21: Management Actions and Objectives
Mueller costs Management Reduce Objectives Manage Leverage •Closed Actions •Reduced manufacturing spending FY2010 •Acquired •Entered 21 six Water working •Reduced into decreased Mueller headcount and leak plants Actions/Initiatives and advanced Products invested improvements detection capital improv
Slide 22: Financial Performance History
Mueller History (see ($ NET $509 $492 $393 ADJUSTED 25.7% $131 8.8% $44 12.3% $48 2002 a) charges b) insurance impairment c) 22 Fiscal Excludes in$38 Financial $16 appendices millions) SALES $536 $465 $387 $139 2003 3.3% 25.9% 9.7% of Water $26 $47 year settlement Strong $0.1 $618 $551 $431 $167 200
Slide 23: First Quarter Consolidated Financial Results
Mueller Consolidated $First Net •Adj. FY 23 Financial Mueller Plant Higher in1Q10 1Q11 sales millions income operating net EBITDA Quarter closure, Water loss sales $287.6 results Co. results (loss) per (except Fiscal Non-GAAP shipment prices $17.7 %Products income manufacturing exclude share $313.1
Slide 24: Debt Refinancing
Mueller Refinancing Debt ($ $450 $226 $0 FY2010 •New 24 Recapitalization Extended Locked Preserved Expect Eliminated More Reduced $420 $225 $275 in $0millions) structure: Maturity $400 $420 $0 million than Water FY2011 greater $0 inlimitations $350 $225 maturities deleveraging long-term $123 $0 High
Slide 25: Key Financial Metrics
Mueller Key Free $73 $140 $37 Total Debt $1,800 $1,549 Mar-2006 Capital ($ $100 $71 *FY2006 ** *** 25FY2007 in FY2009 million $115 $88 FY2010 Financial Cash millions) has $120 $90 Debt $1,600 $1,127 Expenditures Water $88 FY2007* FY2007 declined $94 $80 FY2006 Flow results $100 results free $40 resu
Slide 26: Why Mueller Water Products?
Mueller Why Water Strong Operating •Leveraging 26 Driven Limited Leading Comprehensive Low-cost Recovery Increased Operating Expand Develop Strategic Invest industry competitive Water by smart diagnostic number brand municipal smart leverage acquisitions/partnerships manufacturing municipal of stren
Slide 27: Supplemental Data
Mueller WaterData Supplemental Products
Slide 28: Segment Results Reconciliation
Segment (in Three Mueller GAAP Gross Selling, Non-GAAP Income Impairment Restructuring Depreciation Interest Restructuring, Adjusted Capital Free Current Long-term Total Less Net 28 millions, sales loss cash debt cash debt months profit results: expenditures expense, tax (loss) rate portion general
Slide 29: Segment Results Reconciliation
Segment (in Three Mueller GAAP Gross Selling, Interest Non-GAAP Income Restructuring Depreciation Restructuring, Adjusted Capital Free Current Long-term Total Less Net 29 millions, sales loss cash debt cash debt months profit results: expenditures expense, tax (loss) portion general Water Co. $per $
Slide 30: Segment Results Reconciliation
Segment (in Mueller GAAP Gross Selling, Non-GAAP Income Restructuring Depreciation Restructuring, Interest Loss Tax Adjusted Capital Free Current Long-term Total Less Net 30 millions, sales loss cash debt on cash on debt profit results: repatriation expenditures expense, tax (loss) rate portion gene
Slide 31: Segment Results Reconciliation
Segment (in Mueller GAAP Gross Selling, Income Non-GAAP Depreciation Impairment Interest Loss Adjusted Capital Free Current Long-term Total Less Net 31 millions, sales loss cash debt cash from on debt profit results: expenditures expense, tax rate portion general early Water Co. $per $(end provided
Slide 32: Questions
Mueller Water Products Questions
Mueller Water Products — Janney Capital Markets Water Industry Summit 2011 on 6ix