Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (November 2020)
22 slides from Azz's investor presentation, Nov 24, 2020
Slide 1: AZZ Inc. Strategy and Governance Update Fall 2020
AZZ Inc. Strategy and Governance Update Fall 2020
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: Our Board is Implementing Initiatives to Enhance Shareholder Value
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 3 Our Board is Implementing Initiatives to Enhance Shareholder Value ■ Execution: Board and management are building on a strong foundation to advance our strategic and financial initiatives ► Highly attractive metal coatings segment with resilient performa
Slide 4: Vision and Values
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 4 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 5: AZZ at a Glance
STRATEGY AND GOVERNANCE UPDATE PRESENTATION $59 $77 $96 $61 FY18 FY19 FY20 LTM $745 $856 $987 $899 FY18 FY19 FY20 LTM 5 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 rec
Slide 6: Our Current Portfolio
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 6 Our Current Portfolio Metal Coatings (PF FY20 Sales: $496 million) Infrastructure Solutions (PF FY20 Sales: $491 million) Galvanizing Surface Technologies Electrical Products Industrial Solutions ■ Protects, extends and enhances critical infrastructure ■
Slide 7: Strategic and Financial Initiatives to Enhance Shareholder Value
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 7 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 8: Targeting Increased Capital Return to Shareholders
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 8 Targeting Increased Capital Return to Shareholders ■ Deploy balance sheet to target a net leverage ratio of 2.5x ■ Board authorized $100M share repurchase program in November 2020 ■ Continued prioritization of coatings acquisitions ■ Subject to macro env
Slide 9: Corporate Governance
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 9 Corporate Governance Board Independence ■ Independent Board (7 of 8 directors) ■ Separate Chairman and CEO ■ All Board Committees comprised of independent directors ■ Regular executive sessions of independent directors Board Practices Board Accountabilit
Slide 10: Our Board of Directors
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 10 Our Board of Directors Daniel Feehan Chairman, FirstCash ■ Brings significant executive leadership experience with financial reporting, business controls, accounting and strategic planning expertise ■ Prior Chairman and CEO, Cash America Experienced lea
Slide 11: Board Composition
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 11 Board Composition Feehan (C) Ferguson Berce Eisman Joyce McCellon- Allen McGough Purvis CEO / Senior Executive Leadership Experience P P P P P P P P Financial Expertise P P P P P Manufacturing and Distribution Expertise P P P P Technological Expertise P
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: Prioritizing Corporate Responsibility and Sustainability
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 14 Prioritizing Corporate Responsibility and Sustainability Approach to Sustainability Committed to growing our business in a sustainable and socially responsible manner ■ We strive to provide high quality products and services to our customers while maint
Slide 15: Commitment to Human Capital Management
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 15 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 16: Executive Compensation Philosophy and Design
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 16 Executive Compensation Philosophy and Design Compensation Aligned with Value Creation Fiscal Year 2020 Target Pay MixIncentives Aligned with Strategic Plan Base Salary 22% Short Term Incentive 34% Long Term Incentive 44% Base Salary 26% Short Term Incen
Slide 17: A Compelling Long-Term Investment
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 17 A Compelling Long-Term Investment Experienced Board is Advising on Strategy, Overseeing Risk and Supporting Long-Term Value Creation Conducting Comprehensive Review in Infrastructure Solutions Focusing on Driving Profitable Growth in Metal Coatings Targ
Slide 18: Appendix and Additional Information
Appendix and Additional Information
Slide 19: Reconciliation of Segment Financials
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 19 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 20: Reconciliation of Segment Financials (Cont'd)
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 20 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 21: Reconciliation of Segment Financials (Cont'd)
STRATEGY AND GOVERNANCE UPDATE PRESENTATION 21 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 Me
Slide 22: Thank You
Thank You