Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (October 2009)
29 slides from Azz's investor presentation, Oct 7, 2009
Slide 1: Structured for sustainability
—_ Structured for sustainability
Slide 2: Forward Looking Statement
2 Except for the statements of historical fact, this release may contain forward-looking statements that involve risks and uncertainties some of which are detailed from time to time in documents filed by the company with the SEC. Those risks and uncertainties include, but are not limited to: changes
Slide 3: Company Overview
3 AZZ is a specialty electrical equipment manufacturer serving the global markets of power generation, transmission, distribution and industrial as well as a leading provider of hot dip galvanizing services to the steel fabrication market nationwide. Company Overview
Slide 4: Total Company Sales By Segment
44% 45% 56% 55% 42% 58% 4 Total Company Sales By Segment Actual FY2008 $320.2 (in millions) Actual FY2009 $412.4 (in millions) Projected FY2010 $370 to $380 (in millions) Galvanizing Electrical and Industrial
Slide 5: Total Company Sales By Market Segment
5 Total Company Sales By Market Segment Actual FY2008 $320.2 (in millions) Actual FY2009 $412.4 (in millions) Projected FY2010 $370 to $380 (in millions)
Slide 6: Electrical and Industrial Products
6 Electrical and Industrial Products
Slide 7: Electrical and Industrial Products
7 Electrical and Industrial Products Projected 2010 $215 to $220 (in millions)
Slide 8: Power Plant Generation
Power Plant GENERATION a Structured for sustainabilit
Slide 9: Structured for sustainabilit
Structured for sustainabilit
Slide 10: Power Distribution
10 Power Distribution
Slide 11: Industrial / Commercial
11 Industrial / Commercial
Slide 12: $200 QS $180 $160 $140 $120 $100 $80 $60 $40 $20 EE SEEL LEER
$200 QS $180 $160 $140 $120 $100 $80 $60 $40 $20 EE SEEL LEER STESSLESSELSSLEEAEES Structured for sustainabilit
Slide 13: Backlog
13 Fiscal 2008 Fiscal 2009 1 st Qtr 2010 2 nd Qtr 2010 Beginning Backlog $120.7 $134.9 $174.8 $150.0 Bookings $334.4 $452.3 $70.7 $84.5 Shipments $320.2 $412.4 $95.5 $95.2 Ending Backlog $134.9 $174.8 $150.0 $139.4 Book to Ship Ratio 104% 106% 74% 89% Backlog ($ In Millions)
Slide 14: Structured for nabilit
Structured for nabilit
Slide 15: Galvanizing application and locations
15 Application: “After-fabrication” steel corrosion protection Locations: 22 facilities in 13 states
Slide 16: Galvanizing Services
16 Galvanizing Services Actual FY2009 $186.6 (in millions) Projected FY2010 $155 to $160 (in millions)
Slide 17: Structured for sustainability
— Structured for sustainability
Slide 18: Consolidated Net Sales
18 Consolidated Net Sales ($ In Millions) $370 to $380
Slide 19: Consolidated Net Sales First Six Months FY10
19 Consolidated Net Sales First Six Months FY10 ($ In Millions)
Slide 20: Earnings Per Share
20 Earnings Per Share (Fully Diluted) $3.00 to $3.10
Slide 21: Earnings Per Share First Six Months FY10
21 Earnings Per Share First Six Months FY10 (Fully Diluted)
Slide 22: Operating Margins by Segment
Electrical and Industrial Products 30% 20.0% 18.0% 25% 16.0% , 14.0% 20% 12.0% 10.0% 15% 8.0% 5 6.0% ie 4.0% 5% 2.0% 0.0% 0% 2006 2007 2008 2009 2010 Actual @ Projected Galvanizing Services 29.0% 28.5% 29-5% 24.9% 20.0% 2006 2007 2008 2009 2010 @Actual WProjected Structured for sustainability
Slide 23: Operating Margins First Six Months FY10
23 Operating Margins First Six Months FY10 Electrical and Industrial Products
Slide 24: Cash Provided By Operations / EBITDA / Free Cash Flow
Cash Provided By Operations / EBITDA / Free Cash Flow ($ In Millions) $85.0 + $75.0 + $65.0 + $55.0 + $45.0 + $35.0 + $25.0 + $15.0 + $5.0 + ($5.0) J 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year -—@Cash Pro. By Oper. -*-Free Cash Flow -®-EBITDA --
Slide 25: Total Bank Debt / Long Term Debt to Equity
25 Total Bank Debt / Long Term Debt to Equity ($ In Millions) Projected Debt Projected Debt to Equity Ratio Projected Cash Fiscal Year
Slide 26: Capital Expenditures / Depreciation
26 Capital Expenditures / Depreciation ($ In Millions) $14.6
Slide 27: Electrical and Industrial Products / Galvanizing Services
Electrical and Industrial 30% Products 29.0% 26.0% 22.0% 2006 2007 2008 2009 @ Actual Galvanizing Services 50% 49.0% 46.0% 50.0% 40% 30% 427.0% 20% 10% 0% 2006 2007 2008 2009 @ Actual Structured for sustainability
Slide 28: Investment Summary
28 Investment Summary • Strong Historical Performance Ø FY09 was 22 nd consecutive year of profitability Ø 5 Yr CAGR - Revenues 25%, Net Income 58%, EPS 54% Ø Significant Operating Margins (above industry averages) • Key Growth Drivers Ø Domestic & international demand for electrical power and energ
Slide 29: Structured for sustainability
—_ Structured for sustainability