Azz Inc. · NYSE:AZZ
Azz — Q1 FY2013 Earnings Presentation
27 slides from Azz's earnings presentation, Jul 10, 2012
Slide 1: July 5, 2012
July 5, 2012
Slide 2: Forward Looking Statement
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
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 North American steel fabrication market. Company Overview
Slide 4: Total Company Sales by Segment
Total Company Mt AZZ SalesbySegment = «=~ 0o@ Actual FY2011 Actual FY2012 Projected FY2013 $381 (in millions) $469 (in millions) $550 to $575 {in millions) Galvanizing m Electrical and Industrial -MsION! STRATEGY EXECUTION 7)
Slide 5: Total Company Sales by Market Segment
Total Company Sales by Market Segment 54% 54% 47% Actual FY2011 Actual FY2012 Projected FY2013 $381 (in millions) $469 (in millions) $550 to $575 {in millions) Industrial = Transmission & Distribution = Power Generation MISICIN SUYAIECY E24=CULICIN oe . es om
Slide 6: Electrical and Industrial Products
Electrical and Industrial Products
Slide 7: Electrical and Industrial Products Sales by Market Segment
Electrical and Industrial Products Sales by Market Segment Actual FY2011 Actual FY2012 Projected FY2013 $163 (in millions) $189 (in millions) $235 to $250 (in millions) Industrial _™ Transmission & Distribution ™ Power Generation WISTONNSTRATEG Yi eXECUTION NSS
Slide 8: Our products & services power up the world
Our products & services power up the world from any generation source. Bus Systems Nuclear Safety Electrical Enclosures Collector Substations for Renewables Switchgear
Slide 9: Metal Clad Outdoor Switchgear
Metal Clad Outdoor Switchgear Gas Insulated Bus Duct Power Control Centers Relay Panels Portable Substations Utility IPP EPC Co-ops OEM
Slide 10: Our products & services serve a broad range of industries
Our products & services serve a broad range of industries, including petrochemical, mining, pipeline, and more. Hazardous Duty Lighting Power Distribution Centers Mining Switchgear Oil & Gas Tubing Relay Panels
Slide 11: Backlog - Electrical & Industrial Products
Backlog - Electrical & Industrial Products ($ In Millions)
Slide 12: Backlog
Fiscal 2011 Fiscal 2012 1st Qtr 2013 Beginning Backlog $109.9 $108.4 $138.6 Bookings $379.1 $499.3 $124.7 Shipments $380.6 $469.1 $127.1 Ending Backlog $108.4 $138.6 $136.2 Book to Ship Ratio 100% 106% 98% Backlog ($ In Millions)
Slide 13: Galvanizing Services
VISIONS STRATE GYS XE UTT@ON ¢
Slide 14: Application: After-fabrication steel corrosion protection
Application: “After-fabrication” steel corrosion protection Locations: 34 facilities in 17 states and 1 Canadian Province
Slide 15: Galvanizing Sales by Market, FY2012 and Projected FY2013
Actual FY 2012 $280 (in millions) m Electrical & Telecommunication m OEM's Industrial = Bridge & Highway = Petrochemical Projected FY 2013 $315 to $325 (in millions)
Slide 16: Consolidated Net Sales
Consolidated Net Sales ($ In Millions)
Slide 17: Consolidated Net Sales - First Quarter
Consolidated Net Sales First Quarter
Slide 18: Earnings Per Share (Fully Diluted)
Earnings Per Share (Fully Diluted)
Slide 19: Earnings Per Share - First Quarter
Earnings Per Share First Quarter
Slide 20: Electrical and Industrial Products Galvanizing Services margins
Electrical and Industrial Products Galvanizing Services 25.0% 20.0% 0.0% 30.0% 78.5% 26.1% 26.1% 26% 16.7% ty 25.0% 15.0% 13.6% 20.0% Toe 15.0% 10.0% 5.0% Dae 0.0% : 1 0.0% 2010 2011 2012 2013 2010 2011 2012 2013 B Actual Projected Actual @ Projected VISIONS STRATE GYS XE UTT@ON
Slide 21: Operating Margins - First Quarter
Operating Margins First Quarter
Slide 22: Cash Flow
Cash Flow ($ In Millions) $135.0 $115.0 $95.0 $75.0 $55.0 $35.0 $15.0 ($5.0) + 1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year —*Cash Pro. By Oper. Free Cash Flow EBITDA -- REVISIONS STE
Slide 23: Total Bank Debt / Long Term Debt to Equity
Total Bank Debt / Long Term Debt to Equity ($ In Millions) Projected Debt Projected Debt to Equity Ratio Projected Cash Fiscal Year
Slide 24: Capital Expenditures/Depreciation
Capital Expenditures/Depreciation ($ In Millions)
Slide 25: Electrical and Industrial Products and Galvanizing Services
Electrical and Industrial Products 35% 30% 25% 20% 15% 10% 5% 0% Galvanizing Services 29% 35% 32% 30% 279 é 25% 21% 25% 4 18% 20% | 15% 10% | 5% - 0% : 2010 2011 2012 2010 2011 2012 VISIONS STRATE GYS XE UTT@ON
Slide 26: AZZ Investment Summary
AZZ Investment Summary • Strong Historical Performance • FY12 is the 25 th consecutive year of profitability • 10 Yr CAGR - Revenues 12%, Net Income 18%, EPS 16% • Significant Operating Margins (above industry averages) • Key Growth Drivers • Domestic & international demand for electrical power and
Slide 27: AZZ
AZZ [LISTED] NYSE. VISION STRATEGY EXECUTION ‘