Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (January 2012)
27 slides from Azz's investor presentation, Jan 24, 2012
Slide 1: Forward With Momentum
FORWARD WITH MOMENTUM
Slide 2: Forward Looking 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 statements by terminology such as, “may,” “should,”
Slide 3: Company Overview
AZZ is a specialty electrical equipment manufacturer serving the global markets of power generation, transmission, distribution and industrial as well as a leading provider of hot dip galvanizing services to the steel fabrication market nationwide. Company Overview
Slide 4: Total Company Sales By Segment
57% 59% 43% 41% Total Company Sales By Segment Actual FY2011 $381 (in millions) Projected FY2012 $465 to $475 (in millions) Projected FY2013 $475 to $510 (in millions) Galvanizing Electrical and Industrial
Slide 5: Total Company Sales Actual and Projected
Actual FY2011 $381 (in millions) Projected FY2012 $465 to $475 (in millions) Projected FY2013 $475 to $510 (in millions)
Slide 6: Electrical and Industrial Products
Electrical and Industrial Products
Slide 7: Electrical and Industrial Products
Electrical and Industrial Products Actual FY2011 $163 (in millions) Projected FY2012 $190 to $195 (in millions) Projected FY2013 $195 to $205 (in millions)
Slide 8: Forward With Momentum
FORWARD WITH MOMENTUM
Slide 9: Power Transmission
Power Transmission
Slide 10: Power Lines
A Power Lines ~~ 8 8} FORWARD WITH MOMENTUM
Slide 11: Industrial / Commercial
age INDUSTRIAL / COMMERCIAL FORWARD WITH MOMENTUM
Slide 12: Backlog
Backlog ($ In Millions)
Slide 13: Backlog ($ In Millions)
Fiscal 2010 Fiscal 2011 1 st Qtr 2012 2 nd Qtr 2012 3 rd Qtr 2012 Beginning Backlog $174.8 $109.9 $108.4 $114.7 $123.2 Bookings $292.1 $379.1 $120.7 $123.1 $125.4 Shipments $357.0 $380.6 $114.4 $114.6 $116.5 Ending Backlog $109.9 $108.4 $114.7 $123.2 $132.1 Book to Ship Ratio 82% 100% 106% 107% 108%
Slide 14: Galvanizing Services
Galvanizing Services
Slide 15: Application: After-fabrication steel corrosion protection
Application: “After-fabrication” steel corrosion protection
Slide 16: Galvanizing Services
Galvanizing Services Projected FY2012 $275 to $280 (in millions) Projected FY2013 $280 to $305 (in millions)
Slide 17: Consolidated Net Sales
Consolidated Net Sales ($ In Millions) $465 to $475 $475 to $510
Slide 18: Earnings Per Share
Earnings Per Share (Fully Diluted) $3.25 to $3.55 $3.00 to $3.15
Slide 19: Consolidated Net Sales/Earnings Per Share
Consolidated Net Sales/Earnings Per Share First Nine Months FY12
Slide 20: Operating Margins by Segment
PLZ Electrical and Industrial Products 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 20.0% 16.7% 14% 15% 2009 2010 2011 2012 2013 Actual Projected 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Galvanizing Services 24. 978.5% 26.1% 26% 25% 2009 2010 2011 2012 2013 "Actual | Projected FORWARD
Slide 21: Operating Margins
Operating Margins First Nine Months FY12
Slide 22: Cash Provided By Operations / EBITDA / Free Cash Flow
PLZ Cash Provided By Operations / EBITDA / Free Cash Flow (S$ In Millions) $95.0 5 $75.0 5 $55.0 | $35.0 | $15.0 5 ($5.0) “2993 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year -®Cash Pro. By Oper. -tFreeCashFlow ~-®-EBITDA -- FORWARD WITH MOMENTUM
Slide 23: Projected Debt
Projected Debt Projected Debt to Equity Ratio Projected Cash Fiscal Year
Slide 24: Capital Expenditures / Depreciation
PLZ Capital Expenditures / Depreciation (S$ In Millions) @ Capital Expenditures @ Depreciation mProjected CE «Projected Depr. .0 $25.0 $25.0 4 $24.0 $24.0 $26.08 $22.2 20.0 $20.0 | . $17.5 $16.4 14. $15.0 | ica $12. $10.0 4 $5.0 7 $0.0 2009 2010 2011 2012 2013 FORWARD WITH MOMENTUM
Slide 25: Segment Returns
ALZ 30% 25% 20% 15% 10% 5% 0% Electrical and Industrial Products 29% 29% 26% 22% 21.0% H . 2007 2008 2009 2010 2011 50% 40% 30% 20% 10% 0% Galvanizing Services 49% 50% 46% 2007 2008 2009 2010 2011 FORWARD WITH MOMENTUM
Slide 26: Investment Summary
Investment Summary • Strong Historical Performance • FY11 is the 24 th consecutive year of profitability • 5 Yr CAGR - Revenues 15%, Net Income 35%, EPS 32% • Significant Operating Margins (above industry averages) • Key Growth Drivers • Domestic & international demand for electrical power and energ
Slide 27: AZZ NYSE Listed
PLZ AZZ LISTED] NYSE