EX-99.1 2 ex991azzapresentation.htm AZZ PRESENTATION ex991azzapresentation.htm
1
September 2010
 
 

 
2
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,” “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.
  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
 
 

 
3
3
 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
 
 

 
4
Total Company
Sales By Segment
45%
43%
55%
57%
Actual
FY2009
$412.4
(in millions)
Actual
FY2010
$357
(in millions)
Projected
FY2011
$385 to $395
(in millions)
58%
42%
Galvanizing
Electrical and Industrial
4
 
 

 
5
Total Company
Sales By Market Segment
Actual
FY2009
$412.4
(in millions)
Actual
FY2010
$357
(in millions)
Projected
FY2011
$385 to $395
(in millions)
5
 
 

 
6
Electrical and Industrial Products
6
 
 

 
7
Electrical and Industrial Products
Actual
FY2009
$225.8
(in millions)
Actual
FY2010
$203.5
(in millions)
Projected
2011
$163 to $168
(in millions)
7
 
 

 
8
Power Generation
8
 
 

 
9
Power Transmission
9
 
 

 
10
Power Distribution
10
 
 

 
11
Industrial / Commercial
11
 
 

 
12
Backlog
 
 

 
13
13
Backlog
($ In Millions)
 
Fiscal 2009
Fiscal 2010
1st Qtr 2011
2nd Qtr 2011
Beginning
Backlog
$134.9
$174.8
$109.9
$110.0
Bookings
$452.3
$292.1
$78.6
$95.0
Shipments
$412.4
$357.0
$77.5
$99.6
Ending Backlog
$174.8
$109.9
$111.0
$106.4
Book to Ship
Ratio
106%
82%
101%
95%
 
 

 
14
Galvanizing Services
 
 

 
15
Application: “After-fabrication”
steel corrosion protection
Locations: 33 facilities in 17 states
15
 
 

 
16
16
Galvanizing Services
Actual
FY2010
$153.6
(in millions)
Projected
FY2011
$222 to $227
(in millions)
 
 

 
17
Consolidated Net Sales
($ In Millions)
$385 to
$395
 
 

 
18
18
Consolidated Net Sales
First Six Months FY11
($ In Millions)
 
 

 
19
19
Earnings Per Share
(Fully Diluted)
$2.70 to
$2.85
 
 

 
20
Earnings Per Share
First Six Months FY11
(Fully Diluted)
 
 

 
21
21
Operating Margins
 
 

 
22
22
Electrical and Industrial
Products
 
 

 
23
23
Projected
 
 

 
24
Projected Debt
Projected Debt to Equity Ratio
Projected Cash
Fiscal Year
 
 

 
25
Capital Expenditures / Depreciation
($ In Millions)
$20.0
 
 

 
26
26
Return On Assets
 
 

 
27
27
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
 
 

 
28
June 2010