EX-99.1 3 ex991presentation.htm AZZ FY Q1 PRESENTATION ex991presentation.htm
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June 2010
 
 

 
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  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,” “expects, “ “plans,” “anticipates,”
 “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable
 terminology. Such forward-looking statements are based on currently available competitive, financial and economic
 data and management’s views and assumptions regarding future events. Such forward-looking statements are
 inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in
 the forward-looking statements. In addition, certain factors could affect the outcome of the matters described herein.
 This presentation may contain forward-looking statements that involve risks and uncertainties including, but not
 limited to, changes in customer demand and response to products and services offered by AZZ, including demand by
 the electrical power generation markets, electrical transmission and distribution markets, the industrial markets, and
 the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot
 dip galvanizing process; changes in the economic conditions of the various markets that AZZ serves, foreign and
 domestic, customer request delays of shipments, acquisition opportunities, adequacy of financing, and availability of
 experienced management employees to implement AZZ’s growth strategy. AZZ has provided additional information
 regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the fiscal year ended February
 28, 2010 and other filings with the SEC, available for viewing on AZZ’s website at www.azz.com and on the SEC’s
 website at www.sec.gov.
  In addition, certain factors regarding AZZ’s proposed acquisition of North American Galvanizing & Coatings,
 Inc. (“NGA”) could affect the outcome of the matters described herein, including, but not limited to, (1) the occurrence
 of any event, change or other circumstances that could give rise to the termination of the Agreement and Plan of
 Merger by and among AZZ, Big Kettle Merger Sub, Inc. and NGA, dated as of March 31, 2010 (the “Merger
 Agreement”), (2) the outcome of any legal proceedings that may be instituted against us or others following the
 announcement of the Merger Agreement, (3) risks that the proposed transaction disrupts current plans and
 operations, (4) the costs, fees and expenses related to the transaction, (5) changes in customer demand and
 response to products and services offered by NGA, including demand by the hot dip galvanizing markets, and (6)
 changes in the economic conditions of the various markets that NGA serves.
  You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are
 cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this
 cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no
 obligation to update any forward-looking statements, whether as a result of new information, future events, or
 otherwise.
Forward Looking Statement
 
 

 
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 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
 
 

 
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Total Company
Sales By Segment
45%
43%
55%
57%
Actual
FY2009
$412.4
(in millions)
Actual
FY2010
$357
(in millions)
Projected
FY2011
$380 to $395
(in millions)
58%
42%
Galvanizing
Electrical and Industrial
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Total Company
Sales By Market Segment
Actual
FY2009
$412.4
(in millions)
Actual
FY2010
$357
(in millions)
Projected
FY2011
$380 to $395
(in millions)
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Electrical and Industrial Products
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Electrical and Industrial Products
Actual
FY2009
$225.8
(in millions)
Actual
FY2010
$203.5
(in millions)
Projected
2011
$158 to $165
(in millions)
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Power Generation
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Power Transmission
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Power Distribution
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Industrial / Commercial
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Backlog
($ In Millions)
 
 

 
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Backlog
($ In Millions)
 
Fiscal 2009
Fiscal 2010
1st Qtr 2011
Beginning
Backlog
$134.9
$174.8
$109.9
Bookings
$452.3
$292.1
$78.6
Shipments
$412.4
$357.0
$77.5
Ending Backlog
$174.8
$109.9
$111.0
Book to Ship
Ratio
106%
82%
101%
 
 

 
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Galvanizing Services
 
 

 
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Application: “After-fabrication”
steel corrosion protection
Locations: 33 facilities in 17 states
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Galvanizing Services
Actual
FY2010
$153.7
(in millions)
Projected
FY2011
$222 to $230
(in millions)
 
 

 
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Consolidated Net Sales
($ In Millions)
$380 to
$395
 
 

 
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Consolidated Net Sales
First Three Months FY11
($ In Millions)
 
 

 
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Earnings Per Share
(Fully Diluted)
$2.65 to
$2.80
 
 

 
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Earnings Per Share
First Three Months FY11
(Fully Diluted)
 
 

 
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Operating Margins
 
 

 
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Electrical and Industrial
Products
 
 

 
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Projected
 
 

 
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Projected Debt
Projected Debt to Equity Ratio
Projected Cash
Fiscal Year
 
 

 
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Capital Expenditures / Depreciation
($ In Millions)
$20.0
 
 

 
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Return On Assets
 
 

 
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Investment Summary
 Strong Historical Performance
 Ø FY10 was 23rd consecutive year of profitability
 Ø 5 Yr CAGR - Revenues 19%, Net Income 51%, EPS 47%
 Ø Significant Operating Margins (above industry averages)
 
 Key Growth Drivers
 Ø Domestic & international demand for electrical power and energy
 Ø U.S. infrastructure investment
 
 Niche products and value added services with strong market share
 position
 
 Strong Management Team
 
 Successful acquisition track record and opportunities for further
 expansion and growth
 
 Strong balance sheet and cash flows
 Reinstated quarterly cash dividend
 
 

 
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June 2010