Azz Inc. · NYSE:AZZ
Azz — Non-Deal Roadshow (April 2025)
36 slides from Azz's roadshow presentation, Apr 25, 2025
Slide 1: Roadshow Presentation: Investor Presentation April 2025
ROADSHOW PRESENTATION Investor Presentation April 2025 (NYSE: AZZ)
Slide 2: Disclaimers
2INVESTOR PRESENTATION Disclaimers Cautionary Statements Regarding Forward Looking Statements — 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 Ac
Slide 3: Why Invest in AZZ?
3INVESTOR PRESENTATION Why Invest in AZZ? Differentiated, high value-add metal coatings provider with scale, expertise and customer centric technology uniquely positioned to serve the growing North American steel and aluminum markets Strong business foundation capable of growing sales and margins at
Slide 4: AZZ Snapshot
4INVESTOR PRESENTATION 47% 53% 58% 42% Segment Sales3 Segment Adj. EBITDA3 AZZ is North America’s leading independent post- fabrication hot-dip galvanizing & coil coating solutions company with #1 positions in both markets AZZ Precoat MetalsAZZ Metal Coatings (1) 41 galvanizing locations and 6 surfa
Slide 5: AZZ's Strategic Journey
5INVESTOR PRESENTATION AZZ’s Strategic Journey 2 2013-2018 Optimized Legacy Footprint • Improved capabilities and profitability of Metal Coatings • Combined Electrical and Industrial assets into one operating segment (infrastructure Solutions) 2019-2022 Strategic Transformation – Positioning for the
Slide 6: Achievements Against Stated Commitments
6INVESTOR PRESENTATION Achievements Against Stated Commitments 2 Commitments Achievements to Date • Reduce net leverage from 5.0x to 3.0x by FYE 2024; Maintain net leverage target range of 1.5X -2.5X • Total net leverage of 2.5x as of February 28, 2025 • Preliminary FY25E Adj. EBITDA1 guidance of
Slide 7: Mission-Driven, Experienced Management Team
7INVESTOR PRESENTATION Tom Ferguson President and Chief Executive Officer David Nark Chief Marketing, Communications and Investor Relations Officer Tara Mackey Chief Legal Officer Chris Bacius Vice President Business Development Jeff Vellines President & COO Precoat Metals Bryan Stovall President &
Slide 8: End Markets & Drivers
8INVESTOR PRESENTATION 8 End Markets1 & Drivers 57% 8% 9% 8% 8% (1) Based on AZZ FY2025 full year financial results ended 02/28/2025
Slide 9: Uniquely Positioned to Capitalize on Generational Infrastructure Investment in U.S.
9INVESTOR PRESENTATION 9 Uniquely Positioned to Capitalize on Generational Infrastructure Investment in U.S. Source: American Infrastructure Investment and Jobs Act
Slide 10: Operating Segments
10INVESTOR PRESENTATION Operating Segment Production Route Value-Added Capabilities Market Size and Share2 Historical Adjusted EBITDA Performance3 ($ in millions) Metal Coatings Precoat Metals Batch Processing Continuous Processing Hot-Dip Galvanizing Spin Galvanizing Powder Coating Plating Anodizin
Slide 11: Strategic Value Proposition Built on Common Business Models
11INVESTOR PRESENTATION Strategic Value Proposition Built on Common Business Models Standout Market Leaders with Best-in-Class Financial Profiles Proprietary Systems Driving Efficiencies in Operations, Procurement, Supply Chain, IT and Back Office Tolling Based Businesses with Minimal Commodity and
Slide 12: Metal Coatings Value Proposition
12INVESTOR PRESENTATION Technology: Digital Galvanizing System (DGS) provides customers with near real-time updates and operational efficiencies Metal Coatings Value Proposition Key Value Propositions Embracing Complexity: Quick turns on special projects to meet demanding customer schedules Value
Slide 13: Metal Coatings Footprint
13INVESTOR PRESENTATION Metal Coatings Footprint Well-Positioned to Serve Key End-Markets Superior Capabilities Enable Leading Position Across All End-Markets2 North America’s leading post-fabrication hot-dip galvanizer with unmatched competitive moat Spin GalvanizingHot-Dip Galvanizing Powder Coati
Slide 14: Metal Coatings Historical Financials
14INVESTOR PRESENTATION Metal Coatings Historical Financials $499 $458 $519 $637 $656 $665 FY20 FY21 FY22 FY23 FY24 FY25 $138 $126 $157 $189 $197 $205 27.7% 27.6% 30.3% 29.7% 30.0% 30.9% FY20 FY21 FY22 FY23 FY24 FY25 Sales Historical Performance ($ in millions) 11 Adjusted EBITDA1 % Margin (1) Adjus
Slide 15: Precoat Metals Value Proposition
15INVESTOR PRESENTATION Precoat Metals Value Proposition Key Value Propositions Technology: Coilzone provides customers with near real-time access to inventory, production and shipping information generating operational efficiencies Embracing Complexity: Quickly accommodate customer needs by offer
Slide 16: Precoat Metals Footprint
16INVESTOR PRESENTATION Precoat Metals Footprint Well-Positioned to Serve Key End-Markets Critical Service Provider to Diverse End-Markets2 Construction (78%) Appliance (7%) Transportation (3%)Container (4%)HVAC (4%) Industry leader with entrenched advantages as a unique independent toll coater Stat
Slide 17: Precoat Metals Historical Financials
17INVESTOR PRESENTATION Precoat Metals Historical Financials $587 $605 $710 $882 $881 $913 FY20 FY21 FY22 FY23 FY24 FY25 $103 $115 $155 $165 $168 $179 17.5% 18.9% 21.8% 18.7% 19.0% 19.6% FY20 FY21 FY22 FY23 FY24 FY25 Sales Adjusted EBITDA3 ($ in millions) Historical Performance 13 % Margin Note: FY
Slide 18: Investing in Future Growth: New Aluminum Coil Coating Line
18INVESTOR PRESENTATION Enables AZZ to benefit from secular shift to aluminum cans Run-rate contracted sales of $50+ million exiting FY 2026 at an EBITDA margin above Precoat overall margin ROIC well in excess of cost of capital Long-term contractual customer commitment for 75% of the new capacity T
Slide 19: Technology Transformation – A Key Differentiator
19INVESTOR PRESENTATION Digital Galvanizing System (DGS) is a distinct competitive advantage - Near elimination of paper with proprietary, state-of-the-art tool linked to Oracle ERP system - Fully integrated; Allows real-time decisions and enhanced customer experience - Provides real-time order stat
Slide 20: Sustainability
20INVESTOR PRESENTATION 20 Investing in Future Growth Sustai ability • Sustainability is intrinsic to our products as both hot-dip galvanized steel and coil coated steel and aluminum are 100% recyclable • Hot-dip galvanized steel is an infinitely renewable building material and used in renewable ene
Slide 21: Consistent Top-Line Growth and Profitability
21INVESTOR PRESENTATION $138 $126 $157 $189 $197 $205 $103 $115 $155 $165 $168 $179 22.2% 22.7% 25.4% 23.3% 23.7% 24.4% FY20 FY21 FY22 FY23 FY24 FY25 Precoat MetalsMetal Coatings ($ in millions) COVID Year COVID Year $499 $458 $519 $637 $656 $665 $587 $605 $710 $882 $881 $913 FY20 FY21 FY22 FY23 FY2
Slide 22: AZZ's Attractive Financial Metrics Relative to Related Industrial Companies
22INVESTOR PRESENTATION 10.2% 11.2% 12.5% 18.1% 15.1% AZZ Coatings Building Products Service Centers Steel Mills 4.4% 1.0% 0.9% (2.3%) (2.7%) AZZ Coatings Building Products Service Centers Steel Mills AZZ’s Attractive Financial Metrics Relative to Related Industrial Companies CY23A – CY25E Revenue G
Slide 23: Impactful Deleveraging Post Transformational Acquisition
23INVESTOR PRESENTATION Impactful Deleveraging Post Transformational Acquisition Net Leverage Since Precoat Metals Acquisition1 Note: Financials exclude AIS in which AZZ divested 60% into a joint venture in September 2022 (1) Reflects net leverage inclusive of credit agreement-related adjustments; A
Slide 24: AZZ - Proven Resilience Through Prior Cycles
INVESTOR PRESENTATION 24 AZZ - Proven Resilience Through Prior Cycles 17 Metal Coatings EBITDA Precoat Metals EBITDA $51 $81 $85 $85 $98 $51 $59 $42 $57 $71 $102 $140 $127 $142 $169 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 Modest Decline (9%) Strong Recovery +15% CAGR ($ in millions)Limited exposure
Slide 25: Our Capital Allocation Priorities
25INVESTOR PRESENTATION Our Capital Allocation Priorities Return Capital Committed to sustaining dividends Manage Leverage(1) Net Leverage target range of 1.5x – 2.5x High ROIC Investments Organic growth, Strategic customer partnerships & Productivity Improvements Strategic M&A Bolt-on acquisitions,
Slide 26: FY 2026 Guidance
26INVESTOR PRESENTATION FY 2026 Guidance(1) Sales $1.625 - $1.725 billion Adjusted EBITDA(2) $360 - $400 million EPS Range $5.50 - $6.10 (1) FY2026 Guidance Assumptions: Results include approximately $15-$18 million of equity income from AZZ’s minority interest in its unconsolidated subsidiary; The
Slide 27: Why Invest in AZZ?
27INVESTOR PRESENTATION Why Invest in AZZ? Differentiated, high value add metal coatings provider with scale, expertise and customer centric technology uniquely positioned to serve the growing North American steel and aluminum markets Strong business foundation capable of growing sales and margins a
Slide 28: Appendix
ROADSHOW PRESENTATION Appendix
Slide 29: Net Leverage Calculations
29INVESTOR PRESENTATION Net Leverage Calculations The table presented above is an excerpt from the Company’s FY2025 financial results found in the Company’s 10K filed 4/21/2025. Please see page 35 of this presentation for footnotes.
Slide 30: Reg "G" Tables
Reg “G” Tables
Slide 31: Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA
Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA 31 The table presented above is an excerpt from the Company’s FY2025 results found in the Company’s 10K filed with the SEC on 4/21/2025. Please see page 35 of this presentation for footnotes.
Slide 32: Continuing Operations Non-GAAP Disclosure
Continuing Operations Non-GAAP Disclosure 32 The table presented above is an excerpt from the Company’s FY2025 results found in the Company’s 10K filed with the SEC on 4/21/2025. Please see page 35 of this presentation for footnotes.
Slide 33: Non-GAAP Segment Disclosure from Continuing Operations
Non-GAAP Segment Disclosure from Continuing Operations (Metal Coatings and Precoat Metals) 33 The tables presented above are an excerpt from the Company’s FY2025 results found in the Company’s 10K filed with the SEC on 4/21/2025. Please see page 35 of this presentation for footnotes.
Slide 34: Non-GAAP Segment Disclosure from Continuing Operations
Non-GAAP Segment Disclosure from Continuing Operations (Metal Coatings and Precoat Metals) 34 The table presented above is an excerpt from the Company’s FY2025 results found in the Company’s 10K filed with the SEC on 4/21/2025. Please see page 35 of this presentation for footnotes.
Slide 35: Non-GAAP Disclosure of Free Cash Flow and Free Cash Flow Conversion Reconciliation
Non-GAAP Disclosure of Free Cash Flow and Free Cash Flow Conversion Reconciliation 35 February 28, 2025 February 29, 2024 Cash Flow from Operations 249,909$ 244,468$ Less: Capital Expenditures (115,883)$ (95,119)$ Free Cash Flow 134,026$ 149,349$ Net Income from Continuing Operations available to co
Slide 36: Notes for Non-GAAP Disclosure Slides
Notes for Non-GAAP Disclosure Slides 36