Slide 1: AZZ incorporated: Vision Strategy Execution
Atazz incorporated VISION STRATEGY EXECUTION February 28, 2014
Slide 2: Forward Looking Statement
2 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 and Vision
3 AZZ is a global provider of specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market Our Vision: To be the in
Slide 4: Focus for 2015
4 Expanding E&I operating margins through emphasis on operational excellence, supply chain cost improvement, and leveraging fixed costs through top-line growth Expanding our international sales efforts and operational footprint in E&I Leveraging our strong NLI sales presence in the Nuclear sec
Slide 5: Total Company Sales by Segment
5 59% 41% Actual FY2013 $571 (in millions) Total Company Sales by Segment 44% 56% Projected FY2014 $760 to $770 (in millions) 41% 59% Projected FY2015 $850 to $900 (in millions) Electrical and Industrial Galvanizing
Slide 6: Total Company Sales by Market Segment
6 47% 21% 32% Actual FY2013 $571 (in millions) Total Company Sales by Market Segment 45% 16% 39% Projected FY2014 $760to $770 (in millions) 49% 18% 33% Projected FY2015 $850 to $900 (in millions) Transmission & Distribution Industrial Power Generation
Slide 7: Electrical and Industrial Products & Services
7 Electrical and Industrial Products & Services
Slide 8: Electrical and Industrial Products & Services Revenue Mix
8 25% 29% 46% Actual FY2013 $234 (in millions) 33% 15% 52% Nine Months Ended 11/30/13 $313 (in millions) 31% 37% 32% Actual FY2012 $189 (in millions) 40% 60% 94% 6% 77% 23% Revenue projected to be between $425 and $430 million in FY2014 Electrical and Industrial Products & Services Revenue Mix Trans
Slide 9: Power Generation
9 Power Generation Our products power up the world from any generation source. Our services ensure the safety of lives and equipment. Bus Systems Nuclear Solutions Boiler Services Collector Substations for Renewables Power Distribution Centers
Slide 10: Transmission & Distribution
10 Transmission & Distribution Metal Clad Outdoor Switchgear Gas Insulated Bus Duct Portable Substations Power Distribution Centers Relay Panels Utility IPP EPC Co-ops OEM Our T&D products ensure that power is transmitted safely and reliably from generation source to end users.
Slide 11: Industrial & Commercial
11 Industrial & Commercial Mining Switchgear Power Distribution Centers Relay Panels Hazardous Duty Lighting Our products & services serve a broad range of industries, including refining, petrochemical, mining, pipeline, and more. Refining Services
Slide 12: Backlog ($ In Millions)
12 Fiscal 2012 Fiscal 2013 1st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 Beginning Backlog $108.4 $138.6 $221.7 $219.6 $211.4 Bookings $499.3 $575.2 $181.1 $181.5 $198.2 Acquired Backlog -0- $78.5 -0- -0- -0- Shipments $469.1 $570.6 $183.2 $189.8 $197.8 Ending Backlog $138.6 $221.7 $219.6 $211.4 $211.8 Boo
Slide 13: Vision Strategy Execution
VISION STRATEGY EXECUTION
Slide 14: Galvanizing Market Opportunity: AZZ Served Markets
14 Includes Galvanized: • Steel Sheet • Tube Steel Global Galvanized Steel Market Galvanizing Market Opportunity Post-Fabrication Galvanized Steel Electrical Utility Industrial Petrochemical Bridge & Highway OEM AZZ Served Markets
Slide 15: Galvanizing Services Locations
15 Application: “After-fabrication” steel corrosion protection Locations: 35 facilities in 17 states and 3 Canadian Provinces Galvanizing Services Locations
Slide 16: Galvanizing Services Revenue by Market
16 39% 11% 30% 8% 12% Actual FY 2013 $337 (in millions) Electrical Utility OEM's Industrial Bridge & Highway Petrochemical 34% 12% 36% 5% 13% 9mo Ended 11-30-13 $258 (in millions) Galvanizing Services Revenue projected to be between $335 and $340 million in FY2014
Slide 17: Consolidated Financials
Consolidated Financials VISION STRATEGY EXECUTION
Slide 18: Consolidated Net Sales ($ In Millions)
18 $381 $469 $571 $760 to $770 $850 to $900 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2011 2012 2013 2014 2015 Fiscal Year Actual Projected Consolidated Net Sales ($ In Millions)
Slide 19: Earnings Per Share (Fully Diluted)
19 $1.39 $1.61 $2.37 $2.30 to $2.40 $2.40 to $2.80 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2011 2012 2013 2014 2015 Fiscal Year Actual Projected Earnings Per Share (Fully Diluted)
Slide 20: Operating Margins by Segment
20 16.7% 13.6% 14.7% 11% 12% 0.0% 5.0% 10.0% 15.0% 20.0% 2011 2012 2013 2014 2015 Electrical and Industrial Products and Services Actual Projected Operating Margins 26.1% 26.1% 26.1% 28% 27% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2011 2012 2013 2014 2015 Galvanizing Services Actual Projected
Slide 21: Cash Provided By Operations / EBITDA / Free Cash Flow
21 Cash Provided By Operations / EBITDA / Free Cash Flow ($ In Millions) ($5.0) $15.0 $35.0 $55.0 $75.0 $95.0 $115.0 $135.0 $155.0 $175.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Year Cash Pro. By Oper. Free Cash Flow EBITDA *Excludes $12 million for the rebuild of the Joli
Slide 22: Total Bank Debt / Long Term Debt to Equity
22 0 0.2 0.4 0.6 0.8 1 1.2 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Year Bank Debt Cash Debt to Equity Ratio Projected Total Bank Debt / Long Term Debt to Equity ($ In Millions) Capitalization as o
Slide 23: Capital Expenditures / Depreciation & Amortization
23 Capital Expenditures / Depreciation & Amortization ($ In Millions) *Excludes $12 million for the rebuild of the Joliet Galvanizing facility in Fiscal 2014. * $16.4 $19.8 $24.9 $22.2 $22.6 $29.4 $38.0 $38.0 $45.0 $47.0 $0 $10 $20 $30 $40 $50 2011 2012 2013 2014E 2015 Capital Expenditures D&A Proje
Slide 24: Return On Assets
24 21% 18% 17% 0% 5% 10% 15% 20% 25% 2011 2012 2013 Electrical and Industrial Products and Services Return On Assets 27% 25% 26% 0% 5% 10% 15% 20% 25% 30% 35% 2011 2012 2013 Galvanizing Services
Slide 25: AZZ Investment Summary
25 • Strong Historical Performance • FY13 is the 26th consecutive year of profitability • 10 Yr CAGR – Revenues 12%, Net Income 22%, EPS 19% • Significant Operating Margins (above industry averages) • Key Growth Drivers • Aging U.S. energy infrastructure and required investment • Emerging North Amer
Slide 26: AZZ NYSE: Vision Strategy Execution
AZZ NYSE VISION STRATEGY EXECUTION