AM Castle & — IPO Roadshow (May 2007)
27 slides from AM Castle &'s IPO roadshow presentation, May 2007
Slide 1: Roadshow Presentation
Roadshow Presentation May 2007
Slide 2: Forward Looking Statement & Non-GAAP Measures
Forward Looking Statement & Non-GAAP Measures This presentation may contain forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included i
Slide 3: Introduction
Introduction / A. M. CASTLE & CO.
Slide 4: Offering Summary
Offering Summary Issuer: A. M. Castle & Co. Offering Type: Follow-On Offering Shares Offered: Primary: 2.35 million Secondary: 2.00 million Total: 4,35 million Over-Allotment Option: 15% (100% from the Company) NYSE Ticker: CAS (currently AMEX: CAS)* Proposed Use of Debt repayment and general corpor
Slide 5: CAS Profile
CAS Profile Global distributor of specialty metal and plastic products and supply chain services – Serves the producer durable equipment sector – Customer base includes many Fortune 500 companies as well as thousands of medium and smaller-sized firms across a variety of industries – Specializes in t
Slide 6: Management Team
Management Team Michael H. Goldberg President and Chief Executive Officer Prior experience includes Executive Vice President of Integris Metals and Executive Vice President of the North American Metals Distribution Group, a division of Rio Algom Ltd Lawrence A. Boik VP, CFO and Treasurer Prior exper
Slide 7: Industry
| ndustry / A. M. CASTLE & CO.
Slide 8: MSCs are a Vital Link in the Metal Supply Chain
MSCs are a Vital Link in the Metal Supply Chain Ability to purchase metal at mill minimum order quantities Ability to leverage diverse mill relationships to achieve procurement advantages (price and product availability) Ability to deliver smaller quantities of metal products to a large and diverse
Slide 9: Industry Model − Next Evolution
Industry Model − Next Evolution Inventory management – Manage the gap between supplier lead-times and customer demand – Match metal performance specifications to customer needs and supplier capabilities – Ensure supply of constrained specialty metals Expanding mill relationships on a global scale –
Slide 10: Industry Model ― Next Evolution
Industry Model ― Next Evolution Sub Sub Global Mills MSC Sub OEMs Sub Sub Global Sub 7
Slide 11: Industry Trends
Industry Trends Supplier Consolidation Customer Consolidation Matching capacity to demand has OEMs are expanding their global stabilized pricing operations Impact of business cycles will be Supply chain complexity is increasing reduced Greater need for outsourcing non-core processes to partners Serv
Slide 12: A. M. Castle & Co. Overview
A. M. Castle & Co. Overview J A. M. CASTLE & CO.
Slide 13: Overview
Overview 117 year history in the metal service center industry One of the largest metal service center companies in the U.S., $1.4 billion pro-forma 2006 revenue Supplying over 5,000 products to 25,000 customers Foremost distributor of specialty grade, high performance metals Provider of specialty p
Slide 14: Recent History ― Key Milestones
Recent History ― Key Milestones CEO Mike Goldberg joined CAS in January 2006 - embarked upon new strategic direction Completed Transtar acquisition and expanded revolving credit line in September 2006 Realigned executive management in support of CAS new strategic direction and created aerospace vert
Slide 15: End Markets & Product Portfolio
End Markets & Product Portfolio Products Provided Markets Served All Other Titanium Transportation Plastics 2% 1% Plastics 5% 9% Aluminum 9% Aerospace 27% Oil & Gas Defense 10% 30% Carbon 19% Machine Tools & General Equip 10% Heavy Alloy Other Nickel & Stnls Equipment 21% 25% 21% 11% 11
Slide 16: Focused Specialty Metals Growth Strategy
Focused Specialty Metals Growth Strategy Expand upon specialty products and value-added services – Leverage long-standing experience and reputation in highly engineered metals, offering broader array of supply chain management solutions Invest in high growth vertical/industrial markets – Emphasize i
Slide 17: Blue-Chip Platform Support
Blue-Chip Platform Support Airbus A380 JSF End Market Key Platforms Supported Large Commercial Aircraft (1) Airbus A318, A319, A320, A321, A330, A380 Boeing 737, 747, 777 Regional Aircraft Bombardier, Embraer Military Aerospace C-17, C-27, C130, F15, F16, F18, F22 JSF (F-35), T50 Military Ground Veh
Slide 18: Expanding and Changing Global Fleet
Expanding and Changing Global Fleet Robust expansion of global air travel is fundamental driver of long-term fleet growth Wide-body commercial aircraft are gaining an increasing share of global fleet, creating significantly higher demand for alloy material content vs. narrow-body aircraft – Anticipa
Slide 19: Joint Strike Fighter
Joint Strike Fighter First fighter jet program serving Joint Strike Fighter Program joint demands of all branches of Branches of U.S. Military Supported: U.S. military – Air Force – Widely regarded as most – Navy important combat platform in – Marines military aerospace history Prime Contractor: Loc
Slide 20: Financial Overview
Financial Overview J A. M. CASTLE & CO.
Slide 21: Financial Summary
Financial Summary Revenue CAGR of 24.4% since 2004 Surpassed the $1 billion threshold for the first time in 2006 Able to effectively adjust selling prices in line with rising material costs over the last three years EBITDA more than doubled since 2004 surpassing $110 million in 2006 Inventory turnov
Slide 22: Focused on Profitable Growth
Focused on Profitable Growth Revenue $ in millions =2 4.4% $1,178 $1,200 CAGR $959 $1,000 $761 $800 =3 4.4% o w th $600 Gr $375 $400 $279 $200 $0 2004 2005 2006 1Q06 1Q07 17
Slide 23: Focused on Profitable Growth
Focused on Profitable Growth EBTIDA Growth Strong EBITDA Margin $ in millions $120 .7 % $110 12.0% 10.7% 55 = $100 GR 10.0% 9.3% 9.3% A $85 8.8% C $80 8.0% 6.0% $60 .9% 6.0% $45 Growth = 16 $40 $35 4.0% $30 $20 2.0% $0 0.0% 2004 2005 2006 1Q06 1Q07 2004 2005 2006 1Q06 1Q07 18
Slide 24: Solid Working Capital Measurements
Solid Working Capital Measurements Inventory Turns - DSI Receivables - DSO Days 130 48 46.7 125 46 122 120 119 119 44 43.7 43.2 43.1 117 115 42 110 40 2004 2005 2006 1Q07 2004 2005 2006 1Q07 19
Slide 25: Strong Financial Position
Strong Financial Position Debt to Total Capital Ratios 60% 51.2% 49.4% 50% 47.5% 40% 34.1% 31.3% 30% 20% 10% 0% (1) 2004 2005 2006 1Q07 Adj. 1Q07 (1) Pro forma analysis reflects impact of offering, net of expenses, using #32.15 per share the last reported sale price stock on May 8, 2007. Proceeds us
Slide 26: Investment Highlights
Investment Highlights High growth industry focus Diversified specialty product base Significant international opportunities for growth Extensive supplier relationships Supply chain management solutions Differentiated from peer group Experienced management team 21
Slide 27: / A. M. CASTLE & CO.
/ A. M. CASTLE & CO.