Azz Inc. · NYSE:AZZ

Azz — FY2022 Earnings Presentation

22 slides from Azz's earnings presentation, Apr 22, 2022

  1. Slide 1: Q4 and Full Year FY2022 Earnings Presentation

    AZZ Inc. Q4 and Full Year FY2022 Earnings Presentation April 22, 2022

  2. Slide 2: Safe Harbor Statement

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Safe Harbor 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

  3. Slide 3: Fiscal Year 2022 Segment Performance Update

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Segment Performance Update Full Year FY2022 Sales: $902.7 million Metal Infrastructure Coatings Solutions Segment Segment $519.0 $383.7 +13.4% vs. FY2021 +0.7% vs. FY2021 Segment Updates • Record Metal Coatings segment sales driven by hi

  4. Slide 4: Fiscal Year 2022 Summary - Consolidated

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Summary - Consolidated In $ millions, except per share amounts Sales Net Income Diluted EPS +7.6% +112% reported; +52% adjusted +120% reported; +58% adjusted $84.0 $83.8 $3.35 $3.34 $902.7 $838.9 $39.6 $1.52 FY21 FY22 FY21 FY22 FY22(a) F

  5. Slide 5: Segment Results – Metal Coatings

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Segment Results – Metal Coatings In $ millions except percentages Sales Operating Income Operating Margin +13.4% +32.7% reported; 19.3% adjusted +350 bps reported; +120 bps adjusted Key Statistics FY2021 Sales $457.8 $127.3 24.5% $519.0

  6. Slide 6: Segment Results – Infrastructure Solutions

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Segment Results – Infrastructure Solutions In $ millions except percentages Sales Operating Income Operating Margin +0.7% +448% reported; +115.1% adjusted +760 bps reported; +470 bps adjusted Key Statistics FY 2021 Sales $381.1 9.3% 8.8%

  7. Slide 7: Fiscal Year 2023 Q1 Outlook

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2023 Q1 Outlook • Due to our recently announced, and pending acquisition of Precoat Metals, AZZ will not issue FY2023 guidance at this time. • Volumes in the Metal Coatings segment continue to be strong. We anticipate sales will exceed $150 m

  8. Slide 8: Q4 FY2022 Consolidated Results

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 FY2022 Consolidated Results In millions, except for EPS and percentages Q4 FY 22 Q4 FY 21 % Reported Reported Change Sales $224.7 $195.6 +14.8% Gross Profit $55.2 $45.8 +20.6% Gross Margin percent 24.6% 23.4% 120 bps Operating Profit $26.0 $18.8 38.5%

  9. Slide 9: Consolidated Results

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Consolidated Results In $ millions, except for EPS and FY 2022 FY 2022 FY 2021 FY 2021 percentages Reported Adjusted Reported Adjusted Sales $902.7 $902.7 $838.9 $838.9 Gross Profit $225.2 $225.2 $188.7 $188.7 Gross Margin 25.0% 25.0% 22

  10. Slide 10: Cash Flow Highlights

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Fiscal Year 2022 Cash Flow Highlights In $ millions, except for percentages FY 2022 FY 2021 Cash flows provided by operating activities $86.0 $92.0 Less: Capital Expenditures $(28.4) $(38.6) Free Cash Flow $57.6 $53.5 Net Income $84.0 $39.6 Free Cash Flo

  11. Slide 11: Capital Allocation Focused on Growth

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Capital Allocation Focused on Growth In $ millions Full Year FY2022 Capital Deployment • Safety, Health and Environmental Capital • Product/technology growth initiatives $61.2 • Facility expansion & spin plant Expenditures Growth • Two acquisitions compl

  12. Slide 12: Key Indicators and Initiatives

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Key Indicators and Initiatives Metal Coatings Segment • Cost of zinc in our kettles, which increased throughout FY2022, is expected to continue to rise • Emphasis on operating efficiency and productivity, supported by Digital Galvanizing System (“DGS”) i

  13. Slide 13: Strategic Direction

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Strategic Direction • Meaningfully advanced our strategy of becoming predominately a coatings company o Entered into definitive agreement to acquire Precoat Metals from Sequa/Carlyle o Expected to be accretive during first full year of operations o Obtai

  14. Slide 14: Q&A

    Q&A

  15. Slide 15: Q4 Segment Performance Update

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 Fiscal Year 2022 Segment Performance Update Total Q4 FY2022 Sales: $224.7 million Metal Coatings Infrastructure Segment Solutions $128.3 Segment $96.4 +20.9% vs. prior year +7.7% vs. prior year Market Drivers • Sales up 20.9% versus prior year’s quart

  16. Slide 16: Q4 Summary - Consolidated

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 Fiscal Year 2022 Summary - Consolidated In $millions, except per share amounts Sales Net Income Diluted EPS +14.8% +33.8% Reported; +34.4% Adjusted +38.1% Reported / +41.0% Adjusted $0.87 $0.86 $224.7 $21.6 $21.4 $195.6 $0.63 $16.2 FY21 FY22 FY21 FY22

  17. Slide 17: Q4 Segment Results – Metal Coatings

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 Fiscal Year 2022 Segment Results – Metal Coatings In millions $ except percentages Sales Operating Income Operating Margin +20.9% +18.3% -60 bps Key Statistics $128.3 $31.4 25.1% 24.5% FY2021 Sales $106.1 $106.1 $26.6 Organic $21.0 Acquisitions $1.2 F

  18. Slide 18: Q4 Segment Results – Infrastructure Solutions

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 Fiscal Year 2022 Segment Results – Infrastructure Solutions In millions $ except percentages Sales Operating Income Operating Margin +7.7% +155.1% Adjusted 470 bps Adjusted Key Statistics 10.1% $96.4 $9.7 FY21 Sales $89.5 $89.5 $7.9 8.2% FY21 Book to

  19. Slide 19: Appendix and Additional Information

    Appendix and Additional Information

  20. Slide 20: Non-GAAP Disclosure of EBITDA

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of EBITDA In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA and Adjusted EBITDA, which are non-GAAP measures. Management belie

  21. Slide 21: Q4 Fiscal 2022 - Non-GAAP Disclosure of Consolidated EBITDA

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Q4 Fiscal 2022 - Non-GAAP Disclosure of Consolidated EBITDA Current Year vs. Prior Year As Reported to As Adjusted In millions Consolidated Consolidated Q4 Consolidated FY2021 Q4 FY 22 Q4 FY 21 $(millions) except EPS As Reported (a) Adjustment As Adjuste

  22. Slide 22: Full Year Fiscal 2022 - Non-GAAP Disclosure of Consolidated EBITDA

    Q4 AND FULL YEAR FY2022 EARNINGS PRESENTATION Full Year Fiscal 2022 - Non-GAAP Disclosure of Consolidated EBITDA Current Year vs. Prior Year As Reported to As Adjusted In millions Consolidated Consolidated Full Year Consolidated FY2021 $(millions) except EPS As Reported (a) Adjustment As Adjusted FY

AZZ — FY2022 Earnings Presentation on 6ix