Mueller Water Products · NYSE:MWA
Mueller Water Products — BB&T Capital Markets Commercial and Industrial Conference April 2011
32 slides from Mueller Water Products's conference presentation, Apr 7, 2011
Slide 1: BB&T Capital Markets Commercial and Industrial Conference April 2011
Exhibit 99.1 BB&T7,Capital Industrial April 2011 Conference Markets Commercial and
Slide 2: Safe Harbor Statement
Mueller Safe This activities, looking residential operations, experience •forward-looking Undue 2 the Harbor presentation spending demand Company’s other reliance statements Water events factors construction and Statement level level Products perception should the statements ability or contains that
Slide 3: Non-GAAP Financial Measures
Mueller Non-GAAP The measures. excluding securities loss items. presented investment net accounting A 3 reconciliation debt Company onThese early Water have analysts, as Adjusted impairment, principles community Financial aitems extinguishment limitations measurement presents Products of are non-GAA
Slide 4: Investment Highlights
Increasing One Leading Leveraging Low-cost Mueller 4 of the Water North brands manufacturing investment largest brands Products American in installed water to expand needed Investment infrastructure processes provider bases smart in water inofwater the Highlights water infrastructure U.S. infrastruc
Slide 5: Mueller Water Products overview
•Our Mueller FY2010 Net Repair Non-residential Residential The (1) (2) * 5 Valves $1.3B Portfolio Fire Pipe Ductile Metering Leak Specified More Residential Valves Based Sales largest Business hydrants fittings detection and than LTM Water Co. Primary iron $1.3B on or includes: systems replacement i
Slide 6: Broad Product Portfolio
Broad ($ HISTORICAL SEGMENT DEPRECIATION ADJUSTED Mueller PORTFOLIO PRODUCT Iron Hydrants $123 $49 $74 $609 Butterfly, Metering US Ductile ($32) $19 ($51) $373 Restrained Joint Anvil Est. Cast $40 $15 $25 $330 Fittings Pipe Hangers Note: (1) of (2) 6 inSegment restructuring. PIPE 1857 1899 1999 Gate
Slide 7: Complete Drinking Water Product Offering
Complete Drinking Ductile Office Gate Fire Corporation Curb Leak Fittings, Metering Gate, Residential Pipe Pump Fabricated Water •This Mueller 7 Anvil Muller U.S. Hydrant Protection Restraint Condition diagram Valve and Valve Detection Butterfly, Station Treatment Discharge Pipe Building Internation
Slide 8: Water Infrastructure Competitive Landscape
Water FIRE GATE BUTTERFLY BRASS DUCTILE Mueller A.Y. ACIPCO Ford DeZURIK Griffin * McWane 8 Company McDonald Meter HYDRANTS Infrastructure VALVES Pipe Water WATER IRON Box estimates AND Products PRODUCTS PIPE BALL Landscape* based Position VALVES on internal #1 #1 #1 analysis #2 #1 and information f
Slide 9: Strategy and Objectives
Mueller internationally Strategy Capitalize Maintain Continue Broaden Expand 9 Water And breadth leadership toonenhance Objectives the Products and large, positions operational depth attractive of with products and and customers organizational growing and services and water endexcellence infrastruct
Slide 10: Our End Markets
Mueller Our EndWater Markets Products
Slide 11: Primary End Markets, FY2006 vs FY2010
Mueller Primary FY Net Non-residenetial Repair Non-residential Residential Since Source: *Residential 11 2006 2010 Sales: 2006, and Management Water End$1.9B $1.3B replacement construction* our construction Markets: Products construction exposure construction estimates 2006-2010 ofto 40% 5% is munic
Slide 12: Historical Seasonally Adjusted Housing Starts
Mueller Historical Seasonally 2,400 Units 1,400 Bottom April 1991 Jan-91 12 –2009 (thousands) 2,150 1,150 Jan-92 2011 of Water Housing prior Adjusted –900 1,900 Average Lowest Jan-93 Products down 650 1,650 Starts Annualized 400 starts 1,417 Jan-94 cycle (1991 (477) (798) Jan-95 - since February Jan
Slide 13: Non-Residential Construction Trends
Non-Residential Exhibit 20% 2% Change Note: 1990 Architecture AIA (Diffusion 65 1999 Source: We 13 60 continue -14% Architecture 15% 1991 2001 Excludes 5513: Census IHS in50 -5% 10% Value index, 1992 2003 Zelman 45 Global Billings to7% 5% 40 see Manufacturing Bureau, 1993 2005 Construction Put-in-Pl
Slide 14: A Significant Opportunity
Mueller A Significant WaterMarket Products Opportunity
Slide 15: Aging Drinking Water Infrastructure
Mueller Aging Drinking 1988 1998 2001 2005 1American *National “America’s water 2009 15 B* D D- Report regulations. Water Water Water1 Council Society drinking Card Infrastructure Products This for on ofwater America’s Public Civil doessystems Engineers not Works account Infrastructure face Improvem
Slide 16: The Repair and Replacement Market Is Significant
Mueller The Repair •Funding Source: (2) (3) (4) Future Infrastructure Source, Storage, Treatment, Other, Transmission Area 20-YR 16 Aging Valves UpGovernment Emphasis 90% 29% Global EPA Market to inof funded $2.3B Drinking and Need 15% which $19.8B water (1) Water Clean and $36.9B water Water $75.1B
Slide 17: Aging Water Infrastructure
Mueller Aging 2.0% Percentage 2.5% Accelerating 2000 Figure Year Average (1) 17 The Installed 2010 1.5% 2.0% Water 2–10: 2–11: EPA Water life2020 of 1.0% 1.5% of Clean Age Infrastructure Projected Need Inventory Replacement Products 100 2030 0.5% 1.0% Distribution Water year 2040 Annual 0.0% 0.5% an
Slide 18: Increasing Awareness and Stronger Regulation
Mueller Increasing •Stronger — “New produces The 18 At 1974/1996 2011 Atlanta Washington, Baltimore Kansas Cincinnati $1.3B least Clean Jersey proposed Water EPA the 40 for Water $4.0B City Federal cities Safe can lowest Drinking City $1.5B regulations Products $2.5B D.C. federal maintain Council Dr
Slide 19: Funding and Historical Water Rate Increases
Mueller Funding Historical Long-term 350 1913 —Water —Local —Natural —ALL —Telephone —Electricity (CPI) Exhibit The (1) Sources: (2) (3) Sources Operational Rate Other Bonds Grants Loans From 19 AWWA Bureau Black 325 index Increases 1916 2007-2009, 15% 16% 9% 3% ITEMS 1. Water of 300 Phone Water and
Slide 20: Business Actions & Results
Mueller & Actions Water Business Products Results
Slide 21: Management Actions and Objectives
Mueller Management Reduce Objectives Manage Leverage •Closed Actions •Reduced Sigma manufacturing by turn •Acquired •Entered 21 $116.6 at and the costs six Water working into Mueller headcount million end and leak other plants Actions/Initiatives and advanced of Products invested facilities detectio
Slide 22: Historical Financial Performance
Mueller History (see ($ NET $509 $492 $393 ADJUSTED 25.7% $131 8.8% $44 12.3% $48 2002 a) 2009; b) environmental-related charges c) in 22 Fiscal Excludes 2010 in$38 Financial $16 appendices millions) SALES $536 $465 $387 $139 2003 3.3% restructuring 25.9% 9.7% of Water $26 $47 year Strong $18.3 $618
Slide 23: Consolidated First Quarter Results
Mueller Consolidated First $ Net •Adj. FY 23 Financial Mueller Plant Higher in1Q10 1Q11 sales millions income operating net EBITDA Quarter closure, Water loss sales $287.6 results Co. results (loss) per (except Fiscal Non-GAAP shipment prices $17.7 %Products income manufacturing exclude share $313.1
Slide 24: Debt Refinancing Highlights
Mueller Refinancing Debt ($ $450 $226 $0 FY2010 •New 24 Recapitalization Extended Locked Preserved Expect Eliminated More Reduced $420 $225 $275 in $0millions) structure: Maturity $400 $420 $0 million than Water FY2011 greater $0 inlimitations $350 $225 maturities deleveraging long-term $123 $0 High
Slide 25: Key Financial Metrics
Mueller Key Free $73 $140 $37 Total Debt $1,800 $1,549 Mar-2006 Capital ($ $100 $71 FY2006 * ** *** 25FY2007 in FY2009 million $115 $88 FY2010 Financial Cash millions) has $120 $90 Debt $1,600 $1,127 Expenditures Water $88 FY2007* FY2007 declined $94 $80 FY2006 Flow results $100 results free $40 res
Slide 26: Why Mueller Water Products?
Mueller Why Water Strong Operating •Leveraging 26 Driven Limited Leading Comprehensive Low-cost Recovery Increased Operating Expand Develop Strategic Invest industry competitive Water by smart diagnostic number brand municipal smart leverage acquisitions/partnerships manufacturing municipal of stren
Slide 27: Supplemental Data
Mueller WaterData Supplemental Products
Slide 28: Segment Results Reconciliation
Segment (in Three Mueller GAAP Gross Selling, Non-GAAP Income Impairment Restructuring Depreciation Interest Restructuring, Adjusted Capital Free Current Long-term Total Less Net 28 millions, sales loss cash debt cash debt months profit results: expenditures expense, tax (loss) rate portion general
Slide 29: Segment Results Reconciliation
Segment (in Three Mueller GAAP Gross Selling, Interest Non-GAAP Income Restructuring Depreciation Restructuring, Adjusted Capital Free Current Long-term Total Less Net 29 millions, sales loss cash debt cash debt months profit results: expenditures expense, tax (loss) portion general Water Co. per $
Slide 30: Segment Results Reconciliation
Segment (in Mueller GAAP Gross Selling, Non-GAAP Income Restructuring Depreciation Restructuring, Interest Loss Tax Adjusted Capital Free Current Long-term Total Less Net 30 millions, sales loss cash debt on cash on debt profit results: repatriation expenditures expense, tax (loss) rate portion gene
Slide 31: Segment Results Reconciliation
Segment (in Mueller GAAP Gross Selling, Income Non-GAAP Depreciation Impairment Interest Loss Adjusted Capital Free Current Long-term Total Less Net 31 millions, sales loss cash debt cash from on debt profit results: expenditures expense, tax rate portion general early Water Co. per $(end $ provided
Slide 32: Questions
Mueller Water Products Questions
Mueller Water Products — BB&T Capital Markets Commercial and Industrial Conference April 2011 on 6ix