Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (November 2020)
18 slides from Azz's investor presentation, Nov 12, 2020
Slide 1: AZZ Inc. Investor Presentation
AZZ Inc. Investor Presentation NYSE:AZZ November 2020
Slide 2: Safe Harbor Statement
INVESTOR PRESENTATION 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, including the statements regarding our st
Slide 3: Vision and Values
INVESTOR PRESENTATION Vision and Values GUIDING VALUES Environmental, Social and ■ We Value Our Dedicated Employees and their Governance “ESG” communities by fully training and equipping them, and . Formed Sustainability Council with Board Oversight providing a safe environment to grow . Integrating
Slide 4: Strategic and Financial Initiatives to Enhance Shareholder Value
INVESTOR PRESENTATION Strategic and Financial Initiatives to Enhance Shareholder Value Metal Coatings Infrastructure Solutions Capital Allocation Targeting Increased Capital Returns to Focus on Driving Profitable Growth Conducting Comprehensive Review Shareholders ■ #1 in hot-dip galvanizing ■ Impac
Slide 5: AZZ at a Glance
INVESTOR PRESENTATION AZZ at a Glance (NYSE: AZZ) By Pro Forma Sales Pro Forma Sales Contribution ($ in millions) Headquarters Ft. Worth, Texas $987 $856 $899 $745 50% 50% Total Employees ~3,700 FY18 FY19 FY20 LTM Facilities >60 By Pro Forma Operating Income PF Adj. Operating Income Contribution Not
Slide 6: Our Current Portfolio
INVESTOR PRESENTATION Our Current Portfolio Metal Coatings Infrastructure Solutions (PF FY20 Sales: $496 million) (PF FY20 Sales: $491 million) #1 in Hot-Dip Galvanizing of Prefabricated Steel Diverse portfolio of Electrical and Industrial businesses Galvanizing Surface Technologies Electrical Produ
Slide 7: Our Leading Metal Coatings Business
INVESTOR PRESENTATION Our Leading Metal Coatings Business Key Facts Service Offerings Business Highlights End Markets Served Highly attractive margins and returns Pro Forma $496 Unmatched protection and FY20 Sales corrosion resistance for million prefabricated steel Strategic footprint offers
Slide 8: Hot-Dip Galvanizing Market Position in North America
INVESTOR PRESENTATION # 1 Hot-Dip Galvanizing Market Position in North America North America’s Largest Hot-Dip Galvanizer ■ Expansive footprint with 40 galvanizing locations throughout the U.S. and Canada ► Proximity to customers offers competitive advantage ► Strong back-office and logistics networ
Slide 9: We Expect to Continue our Outperformance in Metal Coatings
INVESTOR PRESENTATION We Expect to Continue our Outperformance in Metal Coatings Historical Growth Trajectory Near Term Priorities ($ in millions) ■ Maintain strong performance despite COVID $496 challenges $440 $375 $389 ► Q1 FY21 YoY sales decline (2.6%) vs. (13.6%) Industrial Average1 21.4% 22.1%
Slide 10: Considerations for Maximizing Value of Infrastructure Solutions
INVESTOR PRESENTATION Considerations for Maximizing Value of Infrastructure Solutions Portfolio Analysis Segment Overview PF Sales $309 million ■ Group of legacy businesses with minimal overlap or 3-Yr CAGR 17% synergies PF Adj. Operating Mid single digit margin ■ Businesses that do not currently me
Slide 11: Infrastructure Solutions is a Portfolio of Diverse Businesses
INVESTOR PRESENTATION Infrastructure Solutions is a Portfolio of Diverse Businesses % # of Segment1 Locations ■ Manufacturer of custom modular enclosures (“e-houses”), as well as relay panels Control Power Distr. Data Enclosures 19% 3 Centers Centers Centers ■ Integration of customer furnished equip
Slide 12: Infrastructure Solutions Segment: Market and Trends
INVESTOR PRESENTATION Infrastructure Solutions Segment: Market and Trends COVID Impact Outlook Business Dynamics E-housing growth driven by transmission & distribution (T&D) spending, modular datacenters, energy storage and Enclosures renewables Primarily driven by housing starts, population gro
Slide 13: Targeting Increased Capital Return to Shareholders
INVESTOR PRESENTATION Targeting Increased Capital Return to Shareholders ■ New coatings business and product lines ■ Deploy balance sheet to target a net Capital ■ Systems and technology leverage ratio of 2.5x Expenditures ■ Safety, Health and Environmental ■ North American coatings focus ■ Board au
Slide 14: Appendix and Additional Information
Appendix and Additional Information
Slide 15: Reconciliation of Segment Financials
INVESTOR PRESENTATION Reconciliation of Segment Financials Fiscal Year 2017 Segment Fiscal Year 2018 Segment $(millions) As Reported (a) Adjustment As Adjusted $(millions) As Reported (a) Adjustment As Adjusted ` Sales 863.5 (99.9) 763.6 Sales 810.4 (65.9) 744.5 Metal Coatings 375.5 (0.2) (1) 375.4
Slide 16: Reconciliation of Segment Financials (Cont'd)
INVESTOR PRESENTATION Reconciliation of Segment Financials (Cont’d) Fiscal Year 2019 Segment Fiscal Year 2020 Segment $(millions) As Reported (a) Adjustment As Adjusted $(millions) As Reported (a) Adjustment As Adjusted Sales 927.1 (71.3) 855.8 Sales 1,061.8 (74.9) 986.9 Metal Coatings 440.3 (0.7) (
Slide 17: Reconciliation of Segment Financials (Cont'd)
INVESTOR PRESENTATION Reconciliation of Segment Financials (Cont’d) LTM Segment $(millions) As Reported (a) Adjustment As Adjusted Sales 953.2 (54.2) 899.0 Metal Coatings 488.0 (2.8) (1) 485.3 Infrastructure Solutions 465.1 (51.4) (2) 413.7 Operating Profit 41.1 19.8 60.9 Metal Coatings 90.5 1.9 (1)
Slide 18: Thank You
Thank You NYSE:AZZ