Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Investor Presentation (2015)
22 slides from Valmont Industries's investor presentation, Sep 7, 2015
Slide 1: 2015 Investor Presentation
2015 INVESTOR PRESENTATION Valmont Industries, Inc. | 2015 Investor Presentation
Slide 2: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure These slides contain (and the accompanying oral discussion will contain) “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors tha
Slide 3: Overview
Overview • Founded in 1946 by Robert B. Daugherty • Revolutionized Production Agriculture by Commercializing Center Pivot Irrigation • Became Publicly Traded in 1968 • Good Geographic and Product Line Diversification • Over 11,000 Employees • Over 100 Global Manufacturing Locations • Culture of Perf
Slide 4: Valmont: Solutions to World Scale Problems
Valmont: Solutions to World Scale Problems Excluding energy, UTILITY SUPPORT STRUCTURES annual investment in infrastructure is 2.5% “The United States is a likely to account for SUPERPOWER of global GDP.1 with a third world transmission grid.” 3 ENGINEERED INFRASTRUCTURE PRODUCTS Corrosion costs ind
Slide 5: Strong, Global & Enduring Secular Growth Drivers
Strong, Global & Enduring Secular Growth Drivers Economic Growth Needs Agriculture Needs to Improve Quality Infrastructure Water Productivity 5 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 6: Business Model
Business Model • We are a Significant Player with Leadership Positions in Focused Niches, within the Large End Markets Of Infrastructure and Agriculture 6 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 7: Engineered Infrastructure Products
Engineered Infrastructure Products • Products and Services with Engineering Content, Similar Processes and Similar Materials, Serving Infrastructure Markets 7 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 8: Utility Support Structures (USS)
Utility Support Structures (USS) • Transporting Electricity 8 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 9: Coatings: Galvanizing
Coatings: Galvanizing • Zinc Coating for Corrosion Protection 9 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 10: Irrigation: Center Pivot
Irrigation: Center Pivot • Precision Irrigation Equipment 10 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 11: 2014 Revenue and Operating Income Mix
2014 Revenue and Operating Income Mix Net Sales $3,123 Operating Income $358 $ in millions $ in millions Other Other 6% 7% Irrigation 24% Irrigation EIP 31% 25% EIP 34% Coatings 9% Coatings Utility 15% Utility 26% 23% North America Revenues = 59% International Revenues = 41% 11 Valmont Industries, I
Slide 12: 2014 Results
2014 Results Total Sales (in thousands) 2013 2014 Yr-Yr Change Engineered Infrastructure Prod. $ 1,001.8 $ 1,137.9 13.6% Utility Support Structures 962.0 825.0 (14.2%) Coatings 357.6 333.8 (6.5%) Irrigation 882.2 759.2 (13.9%) Other 303.6 231.7 (23.7%) Intersegment Sales (203.0) (164.5) Total $ 3,30
Slide 13: First Quarter Results
First Quarter Results Total Sales (in thousands) 2014 2015 Yr-Yr Change Engineered Infrastructure Prod. $ 228,462 $ 238,393 4.3% Utility Support Structures 214,727 176,341 (17.9%) Coatings 82,171 74,360 (9.5%) Irrigation 212,733 154,476 (27.4%) Other 58,602 53,858 (8.1%) Intersegment Sales (44,955)
Slide 14: Revenue and Operating Income %
Revenue and Operating Income % 14 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 15: Return on Invested Capital
Return on Invested Capital 8.5% Cost of Capital 15 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 16: Consistent Dividend Growth
Consistent Dividend Growth 16 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 17: Disciplined Growth Strategy
Disciplined Growth Strategy • Leverage Current Product Offerings • Current Products to New Markets Products • Leverage Market Reach • New Products to Current Markets • Leverage Core Competencies Markets • Engineering • Manufacturing • Global Mindset Core Competencies 17 Valmont Industries, Inc. | 20
Slide 18: Capital Allocation Philosophy
Capital Allocation Philosophy • Priority 1: Working Capital Investment to Support Sales Growth • Priority 2: Capital Expenditures Approximately $340 million 2014-2016 (Likely Less in Current Environment) • Priority 3: Acquisitions • Priority 4: Dividends in Range of 15% Prior Year Diluted EPS • Prio
Slide 19: Near Term Challenges
Near Term Challenges • Reduced Funding for Infrastructure Spending • Lack of Multi-Year Highway Bill in the U.S. • Australian Economy • Lower Net Farm Income • Utility Industry Capacity and Pricing • Strengthening U.S. Dollar 19 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 20: Planned Restructuring
Planned Restructuring Announced Restructuring Plan on April 22 – up to $60 million in charges Due to current conditions in a number of our markets and near-term expectations, we reviewed opportunities to consolidate operations and reduce employment levels Consequence - Impairment of assets (in
Slide 21: Value of $10,000 Investment Valmont
Results To Date: Total Return 1993 - Today1 Valmont Total Compounded Annualized Return = 15.0% S&P 500 Total Compounded Annualized Return = 7.3% Value of $10,000 Investment Valmont $208,215 S&P 500 $45,808 1 May 27, 2015 21 Valmont Industries, Inc. | 2015 Investor Presentation
Slide 22: 2015 Investor Presentation
2015 INVESTOR PRESENTATION Valmont Industries, Inc. | 2015 Investor Presentation