Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (February 2008)
29 slides from Azz's investor presentation, Feb 29, 2008
Slide 1: March 2008
March 2008 NYSE: AZZ Exhibit 99.1
Slide 2: Forward Looking Statement
Except for the statements of historical fact, this presentation may contain forward-looking statements that involve risks and uncertainties some of which are detailed from time to time in documents filed by the Company with the SEC. Those risks and uncertainties include, but are not limited to: chan
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
Galvanizing 42% Galvanizing 43% Electrical and Industrial 58% Electrical and Industrial 57% Galvanizing 37% Electrical and Industrial 63% Total Company Sales By Segment FY2007 $260.3 (in millions) Projected FY2008 $315 to $325 (in millions) Projected FY2009 $320 to $330 (in millions)
Slide 5: Total Company Sales By Market Segment
66% 6% 28% 28% 13% 59% 55% 14% 31% Total Company Sales By Market Segment Industrial Transmission & Distribution Power Generation FY2007 $260.3 (in millions) Projected FY2008 $315 to $325 (in millions) Projected FY2009 $320 to $330 (in millions)
Slide 6: Industrial Utilization
Industrial Utilization Federal Reserve Statistical Release 76.0 76.6 77.2 77.4 78.6 78.7 79.0 79.7 79.9 80.3 81.1 79.8 79.6 80.1 80.4 79.9 Quarter Ending
Slide 7: Electrical and Industrial Products
Electrical and Industrial Products
Slide 8: Electrical and Industrial Products
40% 11% 49% 42% 20% 37% 44% 20% 36% Electrical and Industrial Products Industrial Transmission & Distribution Power Generation FY2007 $150.3 (in millions) Projected FY2008 $180 to $185 (in millions) Projected FY2009 $205 to $210 (in millions)
Slide 9: Power Plant Generation
Power Plant GENERATION
Slide 10: Power Transmission
Power Transmission
Slide 11: Power Distribution
Power Distribution
Slide 12: Industrial / Commercial
ane INDUSTRIAL / COMMERCIAL >
Slide 13: Backlog ($ In Millions)
$0 $20 $40 $60 $80 $100 $120 $140 $160 Backlog ($ In Millions)
Slide 14: Backlog and Book to Ship Ratio
105% $149.2 $81.6 $86.0 $144.8 nd Qtr 98% $147.1 $86.6 $84.5 $149.2 rd Qtr 132% $144.8 $75.4 $99.5 $120.7 1st Qtr 118% $120.7 $260.3 $307.2 $73.8 Fiscal 105% $73.8 $187.2 $196.2 $64.8 Fiscal Book to Ship Ratio Ending Backlog Shipments Bookings Beginning Backlog Backlog ($ In Millions)
Slide 15: Galvanizing Services
Galvanizing Services
Slide 16: Galvanizing Services
Application: “After-fabrication” steel corrosion protection Locations: 11 14 facilities in 6 8 states Galvanizing Services
Slide 17: Galvanizing Services
9% 34% 19% 17% 21% Electrical & Telecommunications OEM's Industrial Bridge & Highway Petrochemical Galvanizing Services
Slide 18: March 2008
March 2008 NYSE: AZZ
Slide 19: Consolidated Net Sales
Consolidated Net Sales ($ In Millions) $152.4 $187.2 $260.3 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 Fiscal Year Actual Projected $315 to $325 $320 to $330
Slide 20: Consolidated Net Sales First Nine Months FY08
Consolidated Net Sales First Nine Months FY08 ($ In Millions) $180.7 $243.6 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 YTD 11/30/06 YTD 11/30/07
Slide 21: Earnings Per Share (Fully Diluted)
$0.44 $0.69 $1.83 $2.20 to $2.30 $2.12 to $2.22 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 Fiscal year Actual Projected Earnings Per Share (Fully Diluted)
Slide 22: Earnings Per Share First Nine Months FY08
Earnings Per Share First Nine Months FY08 (Fully Diluted) $1.24 $1.67 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 YTD 11/30/06 YTD 11/30/07
Slide 23: Operating Margins
Electrical and Industrial Products 9.2% 14.2% 16% 16% 7.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Actual Projected Galvanizing Services 20% 29% 24.0% 20.5% 18.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Actual Projected Operating Margins
Slide 24: Operating Margins First Nine Months FY08
Operating Margins First Nine Months FY08 13.8% 16.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% YTD 11/30/06 YTD 11/30/07 Galvanizing Services 30.8% 24.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% YTD 11/30/06 YTD 11/30/07 Electrical and Industrial Products
Slide 25: Cash Provided By Operations/EBITDA/Free Cash Flow
Cash Provided By Operations/ EBITDA/Free Cash Flow ($ In Millions) ($5.0) $5.0 $15.0 $25.0 $35.0 $45.0 $55.0 Fiscal Year Cash Pro. By Oper. Free Cash Flow EBITDA Projected
Slide 26: Total Bank Debt/Long Term Debt to Equity
Total Bank Debt/Long Term Debt to Equity ($ In Millions) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 0.2 0.4 0.6 0.8 1.2 Debt Debt to Equity Ratio Projected Fiscal Year
Slide 27: Capital Expenditures/Depreciation
Capital Expenditures/ Depreciation $6.6 $6.6 $11.4 $10.0 $10.3 $6.7 $5.6 $5.7 $8.5 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Projected Projected Capital Expenditures Depreciation Projected CE Projected Depr. ($ In Millions) $8.7
Slide 28: Return On Assets
Return On Assets Electrical and Industrial Products 9% 14% 22% 0% 5% 10% 15% 20% 25% Galvanizing Services 21.0% 27% 49% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Slide 29: NYSE: AZZ
NYSE: AZZ