Slide 1: AZZ incorporated: Vision Strategy Execution, October 2013
Atazz incorporated VISION STRATEGY EXECUTION October 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 global provider of specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market. Company Overview
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) 44% 56% Projected FY2014 $780 to $810 (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) 48% 14% 38% Projected FY2014 $780 to $810 (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 Revenue Mix
7 25% 29% 46% Actual FY2013 $234 (in millions) 33% 15% 52% Six Months Ended 8/31/13 $201 (in millions) 31% 37% 32% Actual FY2012 $189 (in millions) 40% 60% 94% 6% 77% 23% Revenue projected to be between $430 and $450 million in FY2014 Electrical and Industrial Products & Services Revenue Mix Transmi
Slide 8: Electrical and Industrial Products & Services
8 Electrical and Industrial Products & Services Fossil Power Oil & Gas Petrochemical Nuclear Renewable Industrial Transmission & Distribution The WSI acquisition expands AZZ’s capabilities to include complex repair and life extension solutions for critical process equipment Enclosure Systems Special
Slide 9: Backlog ($ In Millions)
9 Fiscal 2012 Fiscal 2013 1st Qtr 2014 2nd Qtr 2014 Beginning Backlog $108.4 $138.6 $221.7 $219.6 Bookings $499.3 $575.2 $181.1 $181.5 Acquired Backlog -0- $78.5 -0- -0- Shipments $469.1 $570.6 $183.2 $189.8 Ending Backlog $138.6 $221.7 $219.6 $211.4 Book to Ship Ratio 106% 101% 99% 96% Backlog ($ I
Slide 10: Vision Strategy Execution
VISION STRATEGY EXECUTION
Slide 11: AZZ Served Markets: Galvanizing Market Opportunity
11 Includes Galvanized: • Steel Sheet • Tube Steel Global Galvanized Steel Market Galvanizing Market Opportunity Post-Fabrication Galvanized Steel Electrical Utility Industrial Petrochemical Bridge & Highway OEM AZZ Served Markets
Slide 12: Galvanizing Services: Application and Locations
12 Application: “After-fabrication” steel corrosion protection Locations: 35 facilities in 17 states and 3 Canadian Provinces
Slide 13: Galvanizing Services Revenue
13 39% 11% 30% 8% 12% Actual FY 2013 $337 (in millions) Electrical & Telecommunication OEM's Industrial Bridge & Highway Petrochemical 34% 12% 34% 8% 12% 6mo Ended 8-31-13 $172 (in millions) Galvanizing Services Revenue projected to be between $350 and $360 million in FY2014
Slide 14: Consolidated Net Sales ($ In Millions)
14 $357 $381 $469 $571 $780 to $810 $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 15: Earnings Per Share (Fully Diluted)
15 $1.51 $1.39 $1.61 $2.37 $2.45 to $2.65 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2010 2011 2012 2013 2014 Fiscal Year Actual Projected Earnings Per Share (Fully Diluted)
Slide 16: Operating Margins by Segment
16 20.0% 16.7% 13.6% 14.7% 12% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2010 2011 2012 2013 2014 Electrical and Industrial Products and Services Actual Projected Operating Margins 29.2% 26.1% 26.1% 26.1% 28% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2010 2011 2012 2013 2014 Galvanizing Services Actual Projec
Slide 17: Cash Provided By Operations / EBITDA / Free Cash Flow
17 Cash Provided By Operations / EBITDA / Free Cash Flow ($ 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 *Excludes $12 million for the rebuild of the Joliet Ga
Slide 18: Total Bank Debt / Long Term Debt to Equity
18 0 0.2 0.4 0.6 0.8 1 1.2 1.4 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Debt Cash Debt to Equity Ratio Projected Total Bank Debt / Long Term Debt to Equity ($ In Millions) Capitalization as of Augu
Slide 19: Capital Expenditures / Depreciation & Amortization
19 $12.0 $16.4 $19.8 $24.9 $17.5 $22.2 $22.6 $29.4 * $38.0 $45.0 $0 $10 $20 $30 $40 $50 2010 2011 2012 2013 2014E Capital Expenditures D&A Projected CE Projected D&A Capital Expenditures / Depreciation & Amortization ($ In Millions) *Excludes $12 million for the rebuild of the Joliet Galvanizing fac
Slide 20: Return On Assets
20 21% 18% 17% 0% 5% 10% 15% 20% 25% 2011 2012 2013 Electrical and Industrial Products and Services Return On Assets 27% 25% 26% 0% 5% 10% 15% 20% 25% 30% 35% 2011 2012 2013 Galvanizing Services
Slide 21: AZZ Investment Summary
21 • 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 • Aging U.S. energy infrastructure and required investment • Emerging North Amer
Slide 22: AZZ NYSE Vision Strategy Execution
AZZ NYSE VISION STRATEGY EXECUTION