Slide 1: Q4 and Full Year FY2023 Earnings Release Presentation
AZZ Inc. Q4 and Full Year FY2023 Earnings Release Presentation April 26, 2023
Slide 2: Disclaimers
Q4 and Full Year FY2023 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 Securit
Slide 3: Fiscal Year 2023 Company Highlights
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 Company Highlights Full Year Sales $1.32 billion(1) Metal Coatings Precoat Metals Segment Segment(2) $637.0M $686.7M +21.2% vs. FY2022 +19.9% vs. Comparable FY2022 Key Accomplishments in the Year • Completed strategic acquisition of Prec
Slide 4: Fiscal Year 2023 Summary – Continuing Operations Results
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 Summary – Continuing Operations Results (1) In millions $, except percentages and per share amounts Sales Adjusted EBITDA Net Income (2) Diluted EPS (3) +151.8% +136.6% +33.2% / (a) +54.8% +17.1% / (a) +55.4% • Solid performance across b
Slide 5: Fiscal Year 2023 Segment Results – Metal Coatings Segment
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 Segment Results – Metal Coatings Segment In millions $, except percentages Sales Operating Income Adjusted EBITDA(1) +21.2% +21.1% Key Statistics +18.7% FY2022 Sales $525.6 Organic $86.6 Acquisitions $24.8 30.3% 29.7% 24.5% 24.5% 24.5% 2
Slide 6: Fiscal Year 2023 Segment Results – Precoat Metals
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 Segment Results – Precoat Metals(1) In millions $, except percentages Sales Operating Income Adjusted EBITDA(2) Key Statistics FY2022 Sales $0.0 Organic $0.0 Acquisitions $686.7 16.0% 11.6% 17.4% FY2023 Sales $686.7 AZZ Precoat Metals Se
Slide 7: Q4 FY2023 Continuing Operations Results
Q4 and Full Year FY2023 Earnings Presentation Q4 FY2023 Continuing Operations Results In millions $, except percentages and per share amounts Three Months ended February 28, Change vs. Prior 2023 2022 Year(1) Sales $ 336.5 $ 130.1 +158.6% Gross Profit $ 61.3 $ 36.3 +68.9% Gross Margin 18.2 % 27.9 %
Slide 8: Fiscal Year 2023 Continuing Operations Results
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 Continuing Operations Results In millions $, except percentages and per share amounts Year Ended February 28, Change vs. 2023 2022 Prior Year(1) Sales $ 1,323.6 $ 525.6 +151.8% Gross Profit $ 295.9 $ 146.2 +102.5% Gross Margin 22.4 % 27.
Slide 9: YTD FY2023 AZZ Cash Flow Highlights – Continuing Operations
Q4 and Full Year FY2023 Earnings Presentation YTD FY2023 AZZ Cash Flow Highlights – Continuing Operations In millions $, except percentages Year Ended February 28, 2023 2022 Net Cash Provided by Operating Activities $ 91.4 $ 60.6 Less: Capital Expenditures $ (57.1) $ (23.6) Free Cash Flow(1) $ 34.3
Slide 10: Our Capital Allocation Priorities
Q4 and Full Year FY2023 Earnings Presentation Our Capital Allocation Priorities High ROIC Reduce Acquisitions Return Investments Leverage Capital •Organic growth •3.0x leverage target •Opportunistic, highly •Committed to accretive bolt-on sustaining dividends •Strategic customer acquisitions partner
Slide 11: Rapid Deleveraging Profile
Q4 and Full Year FY2023 Earnings Presentation Rapid Deleveraging Profile > 3/4 turn reduction in net leverage since 4.25x close • Total debt repayment of $237.5 million in FY2023 3.5x • Net leverage 3.5X at the end of Q4 FY2023 represents 0.7X improvement since closing the 3.0x Long-Term Precoat tra
Slide 12: Q1 Outlook And Financial Guidance
Q1 Outlook And Financial Guidance 12
Slide 13: Q1 FY2024 Outlook
Q4 and Full Year FY2023 Earnings Presentation Q1 FY2024 Outlook Metal Coatings Segment • Sequential improvement over Q4, driven by Bridge and Highway, Utility Transmission and Distribution, and Solar, inclusive of infrastructure spending • Fabrication activity remains solid, with many customers no
Slide 14: Reaffirming Previously Issued Guidance
Q4 and Full Year FY2023 Earnings Presentation 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 earnings per share includes afte
Slide 15: Investment Thesis
Q4 and Full Year FY2023 Earnings Presentation North America’s leading independent hot-dip galvanizing and coil coating company with #1 positions in both markets Irreplaceable footprint provides cost advantages and enables service capabilities to customers Investment Diversified and resilient end mar
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: Q4 FY2023 Company Highlights
Q4 and Full Year FY2023 Earnings Presentation Q4 FY2023 Company Highlights Q4 Fiscal 2023 Sales $337 million(1) Metal Coatings Precoat Metals Segment Segment $149.4M $187.1M +14.8% vs. Q4 FY2022 +17.0% vs. Comparable Q4 Key Accomplishments in the Quarter • Metal Coatings and Precoat Metals sales up,
Slide 19: Q4 Fiscal Year 2023 Summary – Continuing Operations Results
Q4 and Full Year FY2023 Earnings Presentation Q4 Fiscal Year 2023 Summary – Continuing Operations Results In millions $, except percentages and per share amounts Sales Adjusted EBITDA Net Income(1) Diluted EPS(2) +158.6% +112.6% (34.4)% / (a) (44.9)% (66.7)% / (a) (46.4)% • Solid fourth quarter sale
Slide 20: Q4 Fiscal Year 2023 Segment Results – Metal Coatings Segment
Q4 and Full Year FY2023 Earnings Presentation Q4 Fiscal Year 2023 Segment Results – Metal Coatings Segment In millions $, except percentages Sales Operating Income Adjusted EBITDA(1) +14.8% +0.6% +1.3% Key Statistics FY2022 Sales $130.1 Organic $14.5 Acquisitions $4.8 24.6% 30.6% 27.0% 24.5% 21.5% 2
Slide 21: Q4 Fiscal Year 2023 Segment Results – Precoat Metals
Q4 and Full Year FY2023 Earnings Presentation Q4 Fiscal Year 2023 Segment Results – Precoat Metals (acquisition date May 13, 2022) In millions $, except percentages Sales Operating Income Adjusted EBITDA(1) Key Statistics FY2022 Sales $0.0 Organic $0.0 Acquisitions $187.1 8.3% 13.8% FY2023 Sales $18
Slide 22: Fiscal Year 2023 Earnings Per Share (EPS) Walk - Continuing Operations
Q4 and Full Year FY2023 Earnings Presentation Fiscal Year 2023 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 22
Slide 23: Reg “G” Tables
Reg “G” Tables 23
Slide 24: Continuing Operations Non-GAAP Disclosure
Q4 and Full Year FY2023 Earnings Presentation Continuing Operations Non-GAAP Disclosure Three Months ended February 28, Year Ended February 28, 2023 2022 2023 2022 Per Per Per Per Amount Diluted Share(1) Amount Diluted Share(1) Amount Diluted Share(1) Amount Diluted Share(1) Net income from continui
Slide 25: Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA
Q4 and Full Year FY2023 Earnings Presentation Non-GAAP Disclosure of Continuing Operations Adjusted EBITDA Three Months Ended Year Ended February 28, February 28, 2023 2022 2023 2022 Net income from continuing operations $ 7,427 $ 11,322 $ 66,339 $ 49,817 Interest expense 27,061 1,345 88,800 6,363 I
Slide 26: Non-GAAP Segment Disclosure from Continuing Operations
Q4 and Full Year FY2023 Earnings Presentation Non-GAAP Segment Disclosure from Continuing Operations (Metal Coatings and Precoat Metals) Three Months Ended Year Ended February 28, February 28, 2023 2022 2023 2022 Metal Coatings Operating income $ 32,141 $ 31,960 $ 155,954 $ 128,758 Depreciation and