Slide 1: AZZ Inc. Q1 FY2024 Earnings Release Presentation
AZZ Inc. Q1 FY2024 Earnings Release Presentation July 10, 2023
Slide 2: Disclaimers
Q1 FY2024 Earnings 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
Slide 3: Q1 FY2024 Company Highlights
Q1 FY2024 Earnings Presentation Q1 FY2024 Company Highlights Q1 Fiscal 2024 Sales $391 million(1) Metal Coatings Precoat Metals Segment Segment $168.8M $222.1M Key Accomplishments in the Quarter • Record-level Metal Coatings sales, up 3.3% from prior year and 13% sequentially • Precoat sales improve
Slide 4: Q1 FY2024 Continuing Operations Results
Q1 FY2024 Earnings Presentation Q1 FY2024 Continuing Operations Results In millions $, except percentages and per share amounts Three Months Ended May 31, Change vs. Prior 2023 2022 Year(1) Sales $ 390.9 $ 207.1 +88.7% Gross profit $ 97.0 $ 60.1 +61.6% Gross margin 24.8 % 29.0 % (420)bps Selling, ge
Slide 5: YTD FY2024 AZZ Cash Flow Highlights – Continuing Operations
Q1 FY2024 Earnings Presentation YTD FY2024 AZZ Cash Flow Highlights – Continuing Operations In millions $, except percentages Three Months Ended May 31, 2023 2022 Net cash provided by operating activities $ 46.9 $ 21.7 Less: capital expenditures $ (17.0) $ (6.5) Free cash flow(1) $ 29.9 $ 15.2 Adjus
Slide 6: FY2024 Capital Allocation Priorities
Q1 FY2024 Earnings Presentation FY2024 Capital Allocation Priorities High ROIC Reduce Return Acquisitions Investments Leverage Capital •3.0x leverage target •Committed to •Deferred •Organic growth sustaining dividends •Strategic customer partnerships •Productivity and efficiency enhancements 6
Slide 7: Focused on Deleveraging
Q1 FY2024 Earnings Presentation Focused on Deleveraging > 3/4 turn reduction in net leverage since 4.25x close • Total debt repayment of $20.0 million in Q1 FY2024; Target debt reduction of $75-$100 million in FY2024 3.5x • Net leverage 3.5X at the end of Q1 FY2024 represents 3.0x Long-Term 0.7X imp
Slide 8: Reaffirming Previously Issued Guidance
Q1 FY2024 Earnings Presentation In millions $, except per share amounts Reaffirming Previously Issued Guidance FY2024 Guidance - Continuing Operations $1,400 - $1,550m Sales Sales Adjusted $300 - $325m EBITDA Adjusted EBITDA Adjusted $3.85 - $4.35 EPS(1) Adjusted EPS (1) Adjusted earnings and Adjust
Slide 9: Q&A
Q&A 9
Slide 10: Appendix
Appendix 10
Slide 11: Fiscal Year 2024 Earnings Per Share (EPS) Walk - Continuing Operations
Q1 FY2024 Earnings Presentation Fiscal Year 2024 Earnings Per Share (EPS) Walk - Continuing Operations (1) (1) Earnings per share amounts included in the chart above may not sum due to rounding differences 11
Slide 12: Reg “G” Tables
Reg “G” Tables 12
Slide 13: Continuing Operations Non-GAAP Disclosure
Q1 FY2024 Earnings Presentation Continuing Operations Non-GAAP Disclosure Three Months Ended May 31, 2023 2022 Per Per Amount Diluted Share(1) Amount Diluted Share(1) Net income from continuing operations $ 28,522 $ 15,353 Less: preferred stock dividends (3,600) — Net income from continuing operatio
Slide 14: Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA
Q1 FY2024 Earnings Presentation Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA Three Months Ended May 31, 2023 2022 Net income from continuing operations $ 28,522 $ 15,353 Interest expense 28,706 7,472 Income tax expense 9,650 5,111 Depreciation and amortization 18,523 11,973 Acquisiti
Slide 15: Non-GAAP Segment Disclosure from Continuing Operations
Q1 FY2024 Earnings Presentation Non-GAAP Segment Disclosure from Continuing Operations Three Months Ended May 31, 2023 2022 Metal Coatings Operating income $ 45,470 $ 45,270 Depreciation and amortization expense 6,416 8,389 EBITDA $ 51,862 $ 53,669 Precoat Metals Operating income $ 37,691 $ 6,648 De