Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (July 2013)
24 slides from Azz's investor presentation, Jul 9, 2013
Slide 1: Vision Strategy Execution – July 2013
incorporate Laan ol RY wr = VISION STRATEGY EXECUTION July 2013
Slide 2: Forward Looking 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. You can identify forward- looking statements by terminology such as, “may,” “should
Slide 3: Company Overview
3 AZZ is a specialty electrical equipment manufacturer and provider of highly engineered services to the global markets of power generation, transmission, distribution and industrial as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market. Company
Slide 4: Total Company Sales by Segment
4 60% 40% Actual FY2012 $469 (in millions) Total Company Sales by Segment 59% 41% Actual FY2013 $571 (in millions) 42% 58% Projected FY2014 $825 to $900 (in millions) Electrical and Industrial Galvanizing
Slide 5: Total Company Sales by Market Segment
5 54% 25% 21% Actual FY2012 $469 (in millions) Total Company Sales by Market Segment 47% 21% 32% Actual FY2013 $571 (in millions) 45% 16% 39% Projected FY2014 $825 to $900 (in millions) Transmission & Distribution Industrial Power Generation
Slide 6: Electrical and Industrial Products & Services
6 Electrical and Industrial Products & Services
Slide 7: Electrical and Industrial Products & Services Sales by Market Segment
7 31% 37% 32% Actual FY2012 $189 (in millions) Electrical and Industrial Products & Services Sales by Market Segment 25% 29% 46% Actual FY2013 $234 (in millions) 33% 16% 51% Projected FY2014 $475 to $525 (in millions) Transmission & Distribution Industrial Power Generation
Slide 8: Power Generation
8 Power Generation Our products power up the world from any generation source. Our services ensure the safety of lives and equipment. Bus Systems Nuclear Solutions Boiler Services Collector Substations for Renewables Power Distribution Centers
Slide 9: Transmission & Distribution
9 Transmission & Distribution Metal Clad Outdoor Switchgear Gas Insulated Bus Duct Portable Substations Power Distribution Centers Relay Panels Utility IPP EPC Co-ops OEM Our T&D products ensure that power is transmitted safely and reliably from generation source to end users.
Slide 10: Industrial & Commercial
10 Industrial & Commercial Mining Switchgear Power Distribution Centers Relay Panels Hazardous Duty Lighting Our products & services serve a broad range of industries, including refining, petrochemical, mining, pipeline, and more. Refining Services
Slide 11: Backlog Electrical and Industrial Products & Services
11 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 Backlog Electrical and Industrial Products & Services ($ In Millions)
Slide 12: Backlog ($ In Millions)
12 Fiscal 2012 Fiscal 2013 1st Qtr 2013 Beginning Backlog $108.4 $138.6 $221.7 Bookings $499.3 $575.2 $181.1 Acquired Backlog -0- $78.5 -0- Shipments $469.1 $570.6 $183.2 Ending Backlog $138.6 $221.7 $219.6 Book to Ship Ratio 106% 101% 99% Backlog ($ In Millions)
Slide 13: Vision Strategy Execution
VISION STRATEGY EXECUTION
Slide 14: Galvanizing Services: after-fabrication steel corrosion protection
14 Application: “After-fabrication” steel corrosion protection Locations: 35 facilities in 17 states and 3 Canadian Provinces
Slide 15: Galvanizing Services Sales by Market
15 35% 15% 30% 10% 10% Actual FY 2013 $337 (in millions) Electrical & Telecommunication OEM's Industrial Bridge & Highway Petrochemical Galvanizing Services 39% 12% 29% 8% 12% Projected FY 2014 $350 to $375 (in millions)
Slide 16: Consolidated Net Sales
16 $357.0 $381.0 $469.0 $571.0 $825 to $900 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2010 2011 2012 2013 2014 Fiscal Year Actual Projected Consolidated Net Sales ($ In Millions)
Slide 17: Earnings Per Share (Fully Diluted)
17 $1.51 $1.39 $1.61 $2.37 $2.65 to $2.95 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2010 2011 2012 2013 2014 Fiscal Year Actual Projected Earnings Per Share (Fully Diluted)
Slide 18: Operating Margins by Segment
18 20.0% 16.7% 13.6% 14.7% 15% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2010 2011 2012 2013 2014 Electrical and Industrial Products Actual Projected Operating Margins 29.2% 26.1% 26.1% 26.1% 27% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2010 2011 2012 2013 2014 Galvanizing Services Actual Projected
Slide 19: Cash Provided By Operations / EBITDA / Free Cash Flow
19 Cash Provided By Operations / EBITDA / Free Cash Flow ($ In Millions) ($5.0) $15.0 $35.0 $55.0 $75.0 $95.0 $115.0 $135.0 $155.0 $175.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Cash Pro. By Oper. Free Cash Flow EBITDA Projected
Slide 20: Total Bank Debt / Long Term Debt to Equity
20 Total Bank Debt / Long Term Debt to Equity ($ In Millions) 0 0.2 0.4 0.6 0.8 1 1.2 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Debt Cash Debt to Equity Ratio Projected Debt Projected Debt to Equity Ratio Proje
Slide 21: Capital Expenditures / Depreciation
21 $12.0 $16.4 $19.8 $24.9 $17.5 $22.2 $22.6 $29.4 $40.0 $45.0 $0 $10 $20 $30 $40 $50 2010 2011 2012 2013 2014 Capital Expenditures Depreciation Projected CE Projected Depr. Capital Expenditures/Depreciation ($ In Millions)
Slide 22: Return On Assets by Segment
22 21% 18% 17% 0% 5% 10% 15% 20% 25% 2011 2012 2013 Electrical and Industrial Products Return On Assets 27% 25% 26% 0% 5% 10% 15% 20% 25% 30% 35% 2011 2012 2013 Galvanizing Services
Slide 23: AZZ Investment Summary
23 • Strong Historical Performance • FY13 is the 26th consecutive year of profitability • 10 Yr CAGR – Revenues 12%, Net Income 22%, EPS 19% • Significant Operating Margins (above industry averages) • Key Growth Drivers • Domestic & international demand for electrical power and energy • U.S. infrast
Slide 24: Vision Strategy Execution
VISION STRATEGY EXECUTION