Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (September 2020)
23 slides from Azz's investor presentation, Sep 22, 2020
Slide 1: AZZ Inc. Investor Presentation September 2020
AZZ Inc. Investor Presentation September 2020
Slide 2: Safe Harbor Statement
INVESTOR PRESENTATION Safe Harbor Statement 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 statemen
Slide 3: Overview
INVESTOR PRESENTATION Overview AZZ is a global provider of galvanizing and metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. Significant Barriers to Solid Oper
Slide 4: AZZ at a Glance
INVESTOR PRESENTATION AZZ at a Glance Company Profile Fiscal Year 2020 Results Headquarters Ft. Worth, Texas By Sales By Operating Income (in millions) (in millions) FY2020 Sales $1.06 Billion $32.8 23% Market Cap* $910 million $562.8 $498.8 53% 47% $107.9 77% Facilities 65 Total Metal Coatings Ener
Slide 5: COVID-19 Update
INVESTOR PRESENTATION COVID-19 Update Impact on Financial Suspended previously issued FY2021 guidance, evaluating issuing new guidance Results Energy platform has been negatively affected by turnaround deferrals and lower project bookings due to customer slow-downs Cash balance of $26.4 millio
Slide 6: Strategic Direction
INVESTOR PRESENTATION Strategic Direction • Long term strategy to grow Metal Coatings organically and with a robust acquisition program, while targeting 21-23% Operating Margins • Focus on operating excellence and providing outstanding customer service • Assumes continued inorganic growth in Galvani
Slide 7: Metal Coatings and Energy Segments
INVESTOR PRESENTATION Metal Coatings Energy Segment Galvanizing, Surface Technologies Electrical Products Industrial Solutions 1 2 3 Multiple Infrastructure Markets Industrial, T&D, Power, Electric Utility Refinery & Power Hot Dip Galvanizing E-houses, Switchgear, Medium and Specialty Welding, Powde
Slide 8: Metal Coatings
INVESTOR PRESENTATION Metal Coatings The Metal Coatings Segment provides hot-dip 1 galvanizing, powder coating, plating and other metal coatings to the steel fabrication industry through 48 facilities located throughout the United States and Canada 8
Slide 9: Metal Coatings end markets
INVESTOR PRESENTATION Electrical Utilities Industrial OEMs Recreation Petrochemical Agriculture Bridge & Highway Construction 9
Slide 10: Metal Coatings market position and adjacency opportunities
INVESTOR PRESENTATION Metal Coatings’ leading hot-dip galvanizing market position in North America offers adjacency opportunities in corrosion protection. North America’s largest galvanizer • 40 locations throughout the U.S. and Canada • Differentiate on service & quality Expand into market Inorgani
Slide 11: Energy Segment
INVESTOR PRESENTATION The Energy Segment is a manufacturer of specialty electrical equipment focusing on safe and reliable transmission of power from generation sources to end customers, and a specialty welding service provider that ensures the safety and reliability of critical infrastructure in th
Slide 12: AZZ builds, maintains, rehabilitates and strengthens infrastructure globally
INVESTOR PRESENTATION 2 AZZ builds, maintains, rehabilitates and strengthens electrical and industrial infrastructure globally Enclosure Systems Switchgear Systems High Voltage Bus Medium Voltage Bus Hazardous Duty Lighting Tubular Products • Manufacturer of custom • Leading independent • Global lea
Slide 13: Specialized maintenance solutions through automated welding
INVESTOR PRESENTATION Worldwide leader in developing and delivering specialized maintenance solutions through automated welding, weld cladding and weld overlay technologies that extend the lifetime and 3 maximize the value of assets throughout the energy industry. Coke Drum Repair Waterwall Services
Slide 14: Focus for the 2nd Half of FY 2021
INVESTOR PRESENTATION Focus for the 2nd Half of FY 2021 Metal Coatings Segment • Galvanizing • Complete acquisitions • Surface Technologies • Grow customer base, while continuing to focus on operations improvement Energy Segment • IPG • Execute domestic and international (fall turnaround) projects •
Slide 15: Full Year Financial Guidance
INVESTOR PRESENTATION Full Year Financial Guidance FY2021 Range Key Drivers: In millions , except for EPS Metal Coatings: COVID-19 impact on future quarters Revenue $970-$1,060 Zinc costs & Digital Galvanizing System Suspended FY2021 Guidance Energy: $2.65-$3.15 Fall refining turnaround uncert
Slide 16: Capital Allocation Focused on Growth
INVESTOR PRESENTATION Capital Allocation Focused on Growth In millions FY2020 Capital Deployment • New business and product lines $60.6 Capital • Systems and technology Expenditures • Safety, Health and Environmental • Strategic fit Growth • Accretive within the first year Acquisitions • North Ameri
Slide 17: Capital Allocation Focused on Growth
INVESTOR PRESENTATION Capital Allocation Focused on Growth Expressed as percentages FY2021 Capital Deployment Capital Expenditures 18% Growth Acquisitions 35% 8% Share Repurchases 39% Dividends Shareholder Return Shareholder 17
Slide 18: Guiding Values
VESTOR PRESENTATION 4 operating in a culture of Trust, Respect, Accountability, JAtegrity Teamwork, an GUIDING VALUES We Value Our Dedicated Employees and their communities by fully training and equipping them, and providing a safe environment to grow spiritually, personally, and professionally. We
Slide 19: Appendix
Appendix 19
Slide 20: Q1 FY2021 Summary - Consolidated
INVESTOR PRESENTATION Q1 FY2021 Summary - Consolidated In $millions, except per share amounts Revenue Net Income Diluted EPS -26.2% -74.0% -73.9% $289.1 $0.81 $213.3 $21.3 $0.21 $5.5 FY2020 FY2021 FY2020 FY2021 FY 2020 FY2021 • Lack of spring refining turnarounds • Industrial operating leverage • Im
Slide 21: Q1 FY2021 Segment Results – Metal Coatings
INVESTOR PRESENTATION Q1 FY2021 Segment Results – Metal Coatings In millions $ except percentages Revenue Operating Income Operating Margin Key Statistics -2.6% -14.7% -300 bps $122.2 $122.2 FY2020 Revenue $119.0 $29.4 24.1% $25.1 21.1% Organic $(7.6) Acquisitions $4.4 FY2021 Revenue $119.0 FY2020 F
Slide 22: Q1 FY2021 Segment Results – Energy
INVESTOR PRESENTATION Q1 FY2021 Segment Results – Energy In millions $ except percentages Revenue Operating Income Operating Margin Key Statistics -43.5% -108.3% -860 bps $167.0 FY 2020 Revenue $167.0 $12.6 7.5% FY2020 Book to Ship .82 to 1 $94.3 FY2021 Revenue $94.3 FY2021 Book to Ship .89 to 1 -$1
Slide 23: Thank You
Thank You