Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Investor Presentation (2015)
74 slides from Astec Industries's investor presentation, Sep 20, 2015
Slide 1: Infrastructure, Aggregate & Mining, Energy
INFRASTRUCTURE AGGREGATE & MINING ENERGY INFRASTRUCTURE
Slide 2: Forward-Looking Statements
Forward-Looking Statements
Slide 3: Astec Industries, Inc.
ASTEC INDUSTRIES, INC. • Astec Industries builds equipment that can be found operating globally in the Infrastructure, Aggregate, Mining and Energy industries, among others.
Slide 4: Astec Industries, Inc.
ASTEC INDUSTRIES, INC. • We engineer, manufacture, sell and service our equipment. We also provide after-market parts for our equipment and our competitors’ equipment.
Slide 5: Mission Statement
ASTEC INDUSTRIES, INC. Mission Statement “To grow and prosper by designing, manufacturing and selling the most innovative, productive and reliable equipment for the industries we serve, coupled with unparalleled customer service.”
Slide 6: Core Values
ASTEC INDUSTRIES, INC. Core Values • Continuous devotion to meeting the needs of our customers. • Honesty and integrity in all aspects of business. • Respect for all individuals. • Preserving entrepreneurial spirit, innovation, and focus through decentralization. • Safety, profit and growth as means
Slide 7: Objectives for 2015
Objectives for 2015 Ø Top Line Growth Ø Focus on Margin Improvement Ø Grow Presence in Energy Sector Ø Expand in Mining Sector Ø Expand International Business Ø Increase Parts Sales Ø Acquisitions
Slide 8: Family of Companies – Financial Reporting
Family of Companies – Financial Reporting Astec Industries, Inc. 2015
Slide 9: Our Business Model
Our Business Model Operate Decentralized • Centralized Oversight and Synergies
Slide 10: Our Decentralized Model
ASTEC INDUSTRIES, INC. Our Decentralized Model • Niche Markets • Low Volume Products • Individual Product Champions • Close to Customers • Organic Growth • New Product Development
Slide 11: Innovation
ASTEC INDUSTRIES, INC. Innovation • 144 R&D Projects in process • 113 active patents, 107 applied for • 359 Engineering department employees
Slide 12: Service
ASTEC INDUSTRIES, INC. Service • 109 service schools in 2015 for 2,846 attendees • Average tuition per attendee $485 • 24/7 Service Policy. Home phone numbers in customers’ hands • 250 Service department employees • Advanced telematics e.g., Roadtec’s Guardian System
Slide 13: Industry Firsts
Innovations Industry Firsts Infrastructure Aggregate & Mining Energy Double Barrel Hydra-‐Jaw Crusher Helical Coil Heater Hot Mix Asphalt Silos With Fluid Seal T-‐Series Cone Crusher Thermo-‐Guard VerCcal Asphalt Tank Double Barrel Green Fast Pack Crushing System Firestorm Direct-‐Contact Water
Slide 14: Centralized Oversight and Synergies
ASTEC INDUSTRIES, INC. Centralized Oversight and Synergies • Procurement: Leveraged Purchasing • Manufacturing: Company-wide Lean Rankings • Banking and Finance • Commercial Insurance and Employee Benefits • Share Best Practices: Network via Summits o Presidents o Safety o Leadership Training o Manu
Slide 15: Company Statistics as of March 2015
Company Statistics as of March 31 2015 3983 Employees 18 Companies 20 Manufacturing Plants Plus 12 Sales/Service Facilities
Slide 16: Locations Around the World
L O C AT I O N S A R O U N D T H E W O R L D Northern Ireland Hameln Thornbury 1 Prairie du Chien 1 Mequon 1 1 1 Solon Tacoma 1 Eugene 2 7 Chattanooga Riverside 1 1 1 Orlando Albuquerque Enid 1 1 1 Sterling Yankton 1 1 Johannesburg 1 Belo Horizonte Brisbane 16
Slide 17: Over 220 Products
Company Statistics as of March 31 2015 3.2 Million Sq. Ft. Under Roof Products Delivered To All (Office/Mfg.) 50 States Products Delivered To Over Over 220 Products 150 Countries
Slide 18: Dividends
Dividends • Acquisitions A High Priority • Though Acquisitive, Excess Cash Has Been Generated • Provide a Tangible Return of Value to Shareholders • $0.10 Per Share Per Quarter – Initiated 1Q 2013
Slide 19: Our Strategy
Our Strategy In good times, we invest and grow our facilities. Over the last seven years we have invested $200 million in our facilities.
Slide 20: Our Strategy
Our Strategy We have announced six acquisitions in the last eight years.
Slide 21: Historical Highlights
Historical Highlights Adjusted to reflect continuing operations and unusual items (in Millions, except for percentage and EPS data) FY FY FY FY 2004 2005 2006FY 2007 2006 2010 2011 2012 2013 2014 Net Sales $737 $908 $936 $933 $975 Growth% 5% 23% 3% -‐0.3% 4.6% GM% 23.9% 23.3% 22.2% 22.2% 22.1% Net
Slide 22: Industries Served
Industries Served Infrastructure Highways, Bridges, Quarries, etc. Aggregate & Mining Limestone, Granite, Iron Ore, Diamonds, Platinum, etc. Energy Natural Gas, Oil, Biomass, etc. Each Subsidiary Strives to Serve at Least Two of These Three Industries
Slide 23: Industries Served: Infrastructure
_industries Served a Infrastructure yanlag pm on Ss — aa | , —_ ASTEC DILLMAN HEATEC’ CEI ENTERPRISES Chattanooga, Tennessee USA Prairie du Chien, Wisconsin USA — EBERISES ROADTEC Chattanooga, Tennessee USA Albuquerque, New Mexico USA Chattanooga, Tennessee USA Tacoma, Washington USA aos J°\ [BX cer
Slide 24: Industries Served: Aggregate & Mining
_industries Served a Aggregate & Mining f\ /&\ Asti TELSMITH OSBORN beet Gao eee enn Solon, Ohio USA Johannesburg, South Africa Riverside, California USA ASTEC. Mequon, Wisconsin USA Brisbane, Australia NPG!) PBJASTES ‘RyTelestack ASTEC DO BRASIL Yankton, South Dakota USA Sterling, Illinois USA Omag
Slide 25: Industries Served: Energy
Energy Lo | GEFCO G&G €©1 An Astoc Industries Co. CEI ENTERERISES Enid, Oklahoma USA HEATEC’ Albuquerque, New Mexico USA Peterson Chattanooga, Tennessee USA an Astec Industries Co. Eugene, Oregon USA. ASTEC MOBILE SCREENS: ASTEC DILLMAN Sterling, Illinois USA Sancannenetme ‘Areva Chattanooga, Tennes
Slide 26: Where We Are Today: Financial Reporting
W h e r e W e A r e To d a y : F i n a n c i a l R e p o r t i n g March 31, 2015 Energy 16% Infrastructure 47% Aggregate &Mining 37%
Slide 27: Where We Are Today: Products
W h e r e W e A r e To d a y : P r o d u c t s March 31, 2015 Infrastructure 60% 3 – 5 Years
Slide 28: Where We Are Today: Markets
W h e r e W e A r e To d a y : M a r k e t s March 31, 2015 3 – 5 Years International Domestic 50% 50%
Slide 29: Consolidated Statements of Operations
Consolidated Statements of Operations (In thousands) (Unaudited) Three Months Ended March 31 2015 2014 Net sales $ 288,748 $ 238,673 Cost of sales 222,703 181,916 Gross profit 66,045 56,757 Selling, general, administrative & engineering expenses 43,804 43,424 Income from operations 22,241 13,333 Int
Slide 30: Consolidated Balance Sheets
Consolidated Balance Sheets (In thousands) (Unaudited) March 31 March 31 2015 2014 Assets Current assets Cash and cash equivalents $ 12,464 $ 44,969 Investments 2,195 1,462 Receivables, net 129,919 109,080 Inventories 388,710 361,209 Prepaid expenses and other 34,923 28,717 Total current assets 568,
Slide 31: Parts Sales
Parts Sales Adjusted to reflect continuing operations (In Millions) % of Year End Sales 29% 28% 29%
Slide 32: International Sales
International Sales Adjusted to reflect continuing operations (In Millions) % of Year End Sales 39% 36% 36% 27% 26%
Slide 33: Backlog
Backlog Year-end Backlogs (In Millions)
Slide 34: Our End Markets
Our End Markets Infrastructure Aggregate & Mining Energy
Slide 35: Infrastructure: Relocatable Asphalt Plant
Infrastructure Relocatable Asphalt Plant
Slide 36: Infrastructure: Portable Asphalt Plant
Infrastructure Portable Asphalt Plant
Slide 37: Infrastructure
ASTEC INDUSTRIES, INC.
Slide 38: Infrastructure: Training of Customer Technicians
Infrastructure Training of Customer Technicians
Slide 39: Infrastructure: Portable Concrete Plant
Infrastructure Portable Concrete Plant
Slide 40: Infrastructure: Voyager for Brasil
Infrastructure Voyager 120 for Brasil
Slide 41: Infrastructure: New Product Soil Stabilizer
Infrastructure NEW PRODUCT Soil Stabilizer used to mix lime with soil to improve stability
Slide 42: Infrastructure: Roadtec Shuttle Buggy
Infrastructure Roadtec Shuttle Buggy SB 2500e Feeding Two Pavers
Slide 43: Infrastructure: Roadtec Shuttle Buggy SB 2600e
Infrastructure Roadtec Shuttle Buggy SB 2600e
Slide 44: Infrastructure: Asphalt Paver RP-190
Infrastructure Asphalt Paver RP-190
Slide 45: Infrastructure: Roadtec Milling Machine
Infrastructure Recycling Materials with Roadtec Milling Machine
Slide 46: Infrastructure: Carlson CP-100 Paver
Infrastructure Carlson CP-100 Paver
Slide 47: Aggregate & Mining: Dam Project in Turkey
Aggregate & Mining Dam Project in Turkey Telsmith/KPI-JCI Crushing plant consisting of two (2) lines with 450 mtph per line
Slide 48: Aggregate & Mining: Telsmith Project in NJ
Telsmith Project in NJ Module Cone Crusher Station Three (3) cones combined Aggregate & Mining 1,300 HP, fully automated
Slide 49: Aggregate & Mining: Highly Portable Crushing Plant
Aggregate & Mining Highly Portable Crushing Plant 500 Tons Per Hour Equipment consists of: Cone and Screen from JCI High-Frequency Screen from AMS Jaw Crusher and Screens from KPI
Slide 50: Aggregate & Mining: Track Mounted Crusher
Aggregate & Mining Track Mounted Crusher For Lower Volume Operations • First built in 2001, now 40% of equipment sales for KPI • Hand held remote control for all functions
Slide 51: Aggregate & Mining: KPI-JCI GT200CC Plant
Aggregate & Mining KPI-JCI GT200CC Track Mounted Cone/Screen Plant 51
Slide 52: Aggregate & Mining: Osborn Jaw Crusher
Aggregate & Mining Osborn Jaw Crusher Modular Design for Container Shipment 52
Slide 53: Aggregate & Mining: Rockbreaker System
Aggregate & Mining Rockbreaker System Mining application in Africa
Slide 54: Aggregate & Mining: Underground Salt Facility
Aggregate & Mining Underground Morton Salt facility in Canada. Scaler works the roof and side walls scaling the surface for any loose material prior to allowing mine workers in the area...a must for safer mine operations.
Slide 55: Aggregate & Mining: Osborn Rotary Coal Breaker
Aggregate & Mining Osborn Rotary Coal Breaker Station Angelo Coal Johannesburg, South Africa Unit Separates the coal from the aggregate before processing
Slide 56: Aggregate & Mining: 4248 Jaw Crusher
Aggregate & Mining 4248 Jaw Crusher installed underground
Slide 57: Aggregate & Mining: Modular Jaw Crushing Station
Aggregate & Mining Modular Jaw Crushing Station High calcium limestone mine that supplies the material for steel and power plant throughout the Great Lakes region.
Slide 58: Astec Group in front of Telsmith Cone Crusher
Astec Group in front of Telsmith 900 HP Mine Duty Cone Crusher 58
Slide 59: Aggregate & Mining: Radial Telescopic Conveyor
Aggregate & Mining Radial Telescopic Conveyor loading aggregate on barge 59
Slide 60: Aggregate & Mining: Track Conveyors
Aggregate & Mining Track conveyors stockpiling material 60
Slide 61: Aggregate & Mining: Astec do Brasil
Aggregate & Mining ASTEC DO BRASIL 61
Slide 62: Aggregate & Mining: Brasil Modular Crushing Plant
Aggregate & Mining Brasil – Modular Crushing and Screening Plant
Slide 63: Energy: Portable Frac Water Heater
Energy Portable Frac Water Heater
Slide 64: Energy: Rack and Pinion Rig
Energy Rack and Pinion Rig for Shallow or Deep Wells
Slide 65: Energy: Mobile Pump Unit
Energy Mobile Pump Unit for Purging After Fracking of Oil and Gas Wells
Slide 66: Energy: Drilling of Geothermal Wells
Energy Drilling of Geothermal Wells
Slide 67: Energy: Natural Gas Processing Heater
Energy Heater Used in Natural Gas Processing
Slide 68: Energy: Industrial Water Heater
Energy Industrial Water Heater
Slide 69: Energy: Peterson Asphalt Grinder
Energy Peterson Asphalt Grinder
Slide 70: Energy: Pellet Plant, Hazlehurst, Georgia
Energy 60 TPH Pellet Plant Hazlehurst, Georgia
Slide 71: Energy: Wood Pellet Plant
Energy 60 TPH WOOD PELLET PLANT Finshed Pellet LINE 1 LINE 2 LINE 3 Loadout Silos
Slide 72: Energy: Wood Pellets for European Power Plants
Energy Wood Pellets – Used by European power plants to meet Renewable Fuels Standards
Slide 73: Objectives for 2015
Objectives for 2015 Ø Top Line Growth Ø Focus on Margin Improvement Ø Grow Presence in Energy Sector Ø Expand in Mining Sector Ø Expand International Business Ø Increase Parts Sales Ø Acquisitions
Slide 74: Corporate Headquarters
Corporate Headquarters: 1725 Shepherd Road Chattanooga, Tennessee 37421 USA Tel. 423.899.5898 Fax 423.899.4456 www.astecindustries.com