Mueller Water Products · NYSE:MWA
Mueller Water Products — Brean Capital 2013 Global Resources & Infrastructure Conference
35 slides from Mueller Water Products's conference presentation, Jun 24, 2013
Slide 1: Brean Capital 2013 Global Resources & Infrastructure Conference
/ ] Brean Capital 2013 Global Resources & Infrastructure Conference June 25, 2013
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results under accounting principles g generally accepted in the United States “GAAP”), as well as through the use of non-GAAI (loss), adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that address acti , events or developments that we intend, expect, plan, project, believ
Slide 4: Mueller Water Products: Our Business
jueller Water Products: Our Business $1.1 billion LTM net sales (as of March 31, 2013)() FY2012 Primary End Markets 1 Portfolio includes: Net Sales $1B + Fire hydrants Valves + Metering systems Piping component systems + Leak detection Pipe condition assessment Residential Construction* Ey + Specifi
Slide 5: Investment Highlights
Investment Highlights Leading North American provider of water infrastructure and flow control aeaics and services Increasing investment and improved operating efficiencies needed in water infrastructure industry Leading brands in water infrastructure and one of the largest installed bases of valves
Slide 6: Business Performance: Long-Term Targets
eller Wate: hoducts: Business Performance: Long-Term Targets ‘Mueller Co. base business organic growth of 5% - 10%+ in normalized end market conditions Emerging technology products and services >20% + Mueller Co. adjusted EBITDA margins of 20%+ in normalized end market conditions it fcleenrices eeil
Slide 7: Broad Product Portfolio
eller Water Products Broad Product Portfolio Est. 1857 Est. 1999 (1850) $709 $376 ADJUSTED OPERA a $35 546 sta si “0 PRODUCT PORTFOLIO Hangers & Supports Metering r utterly, systems anew Pipe Nipples Plug Valves ? ei aaa ve: lattes ah 1.209 (9 abot ping 1} Der in exieer cn
Slide 8: Water Transmission Solutions
Water Transmission Solutions i , eee Mueller Water Products manufactures and markets products and services that are used in the transmission, distribution and of safe, clean drinking water and in water treatment facilities.
Slide 9: Fire Hydrants, Valves and Brass Water Products Competitors
6 6 # FIRE BUTTERFLY & BRASS WATER HYDRANTS | GATE VALVES BALL VALVES PRODUCTS a a a a) ACIPCO a ] A.Y. McDonald ts DeZURIK | Ford Meter Box af McWane a g a
Slide 10: Strategy and Objectives
jueller Water Products: Strategy and Objectives market: S uctul worldwide coc i = Maintain leadership positions with customers and end users brand . network products + and services Continue to enhance operational & organizational excellence Strengthened balance sheet + Consolidated plants + Implemen
Slide 11: Our End Markets
Uf — Seu Our End Markets
Slide 12: Historical Housing Starts
Historical Housing Starts tong Housing Stat 1959 May 2019) ‘Year Over Year ChangeinHoushald Formation (SAAR) YY a —_ y T Te | ad Ww eel || PUPPPRTTRL LTTE New household formation averaged 1.4 million in 2012, above the long-term average of 1.2 million, after falling to ~350K in 2009-2010 Source: U.S
Slide 13: Non-Residential Construction
eller Water Products Non-Residential Construction Non-Residential Construction Actual/Forecast ANA Architectural iling Index ‘hare Vain Pine Hon eer Bung Cnstcton EERRER ERG ys Source: Conur Guvau Znimon & Assocs a Dota as of May 2, 2013 Source: American institute of Architects Dota a of June 19,201
Slide 14: Anvil Highlights
Mueller Water Products Anvil Highlights y | #10 w I fi Y Cc Y | b y i nce y
Slide 15: Anvil Key Products
Anvil Key Products eae Market Drivers Products Key Competitor Mechanical: Grooved, Iron/Steel Victaulic, Ward, Erico, Fittings, Staple Hangers, Pipe Wisconsin, Bonney seat re ml Non-Residential | Nipples, Bull Plugs Forge, Westbrook & Fire Protecti Building Construction Fire Protection: O-Lets, Vict
Slide 16: Significant Market Opportunities
/ ] Significant Market Opportunities
Slide 17: The Market Opportunity Is Significant And Growing
jueller Water Products: The Market Opportunity Is Significant And Growing Future Drink Repair and Replacement Market Infrastructure E: + Valves and pears typically replaced at same time as pij Water nditure Needs’) + ASCE graded drinking water infrastructure a D() — Treatment $36.98 $75.18 + At leas
Slide 18: Funding Water Infrastructure Repair
eller Water Products Funding Water Infrastructure Repair Operations site ther Grants Other Loans/Debe eee ee) Majority of utilities have service connection fees sey eal recovery charges, with median fees of YTD through April 2013 new municipal bond issuances up 19% over the same period in 2012) From
Slide 19: Significant Growth Opportunities
Mueller Water Products Significant Growth Opportunities Investing in Smart Metering and Leak Detection/Condition Assessment Technology + Expect demand for Advanced Metering Infrastructure (AMI) to grow 20%/year through 2015 in water market* Leak detection and pipe condition assessment technology wil
Slide 20: Opportunities: AMI/Smart Metering
eller Water Products Opportunities: AMI/Smart Metering OPPORTUNITY | Smart Metering + Advanced Meterins pilicsidaaieks 20% of out $200 million today + Forecasted to grow an average of 20% per year through 2015* + Transition from one-way to two-way AMI systems SOLUTION + Two-way mesh network + Enhanc
Slide 21: Opportunities: Leak Detection and Pipe Condition Assessment
eller Water Products Opportunities: Leak Detection and Pipe Condition Assessment OPPORTUNITY SOLUTION END USERS COMPETITORS Leak detection and pipe condition echolo ICS Las Vegas, NV SSeS New Orleans, LA + Constrained + Pioneered acoustic, . municipal budgets non-invasive leak Port Authority of dete
Slide 22: Actions & Business Results
Actions & Business Results
Slide 23: Management Actions / Initiatives
Management Actions / Initiatives + Glatt sh panes since F200 wo non ove aeets of Anvil in FYZO10 + Dives! fed U.S. Pipe in FY201 : implemented Lean Six Sigma and other manufacturing improvements tn incres a production capacity without footprint expansion Reduce costs and improve operating leverage s
Slide 24: History of Strong Financial Performance
eller Water Products History of Strong Financial Performance see appendices for GAAP reconciliation) @ (Sin mittions) NET SALES ADJUSTED EBITDA & ‘ADJ. EBITDA tam 255) 294 306 ord 122% sou! Syg S81 320 ox 10% sez 361 Ho sao 05 $47 ae 5455s BESEERER ERR
Slide 25: Consolidated Non-GAAP Results
Water Products Consolidated Non-GAAP Results Second Quarter Fiscal $ in millions (except per share amounts) 2013 Net sales $283.1 $251.5 ‘Adj. operating income $24.7 $11.5 Adj. operating margin 8.7% 4.6% Adj. net income (loss) per diluted share $0.05 ($0.01) Adj. EBITDA $39.7 $26.7 14.0% 10.6% Adj.
Slide 26: Debt Structure
eller Water Products Debt Structure Depentauny (29912019) + Net debt leverage of 4.0x at March 31, 2013 150 m0 +0 + Debt maturities with no significant required = principal payments before 2017 0 20 0 + No financial maintenance covenants with excess ae availability at the greater of $22.5 million or
Slide 27: Why Invest in MWA?
Why Invest in MWA? Water industry has fundamentally strong long-term dynamics + Driven for new and upgraded infrastructure + Limited number of suppliers to end markets Strong competitive position Leading brand position with large installed base Leading municipal specification positions HSueray on :
Slide 28: Supplemental Data
V4 Ye ee ee Supplemental Data
Slide 29: Segment Results and Reconciliation of Non-GAAP to GAAP
Mueller Water Products Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts)
Slide 30: Segment Results and Reconciliation of Non-GAAP to GAAP
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts)
Slide 31: Segment Results and Reconciliation of Non-GAAP to GAAP
Mueller Water Products Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts)
Slide 32: Segment Results and Reconciliation of Non-GAAP to GAAP
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts)
Slide 33: Segment Results and Reconciliation of Non-GAAP to GAAP
Mueller Water Products Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts)
Slide 34: Segment Results and Reconciliation of Non-GAAP to GAAP
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Sinton. except per share amounts) at Co os —re7 a2) san som = “ips ug no i) a DA: ‘Orcas Sse sss my sm oma nH i H
Slide 35: Questions
LA ee Questions
Mueller Water Products — Brean Capital 2013 Global Resources & Infrastructure Conference on 6ix