Azz Inc. · NYSE:AZZ
Azz — Investor Presentation (November 2006)
29 slides from Azz's investor presentation, Nov 3, 2006
Slide 1: AZZ incorporated Corporate Presentation
AZZ incorporated (NYSE: AZZ) Corporate Presentation November 2006 * * * * * * * * * * * * * * * Exhibit 99.1
Slide 2: Forward Looking Statement
Forward Looking Statement Except for the statements of historical fact, this presentation may contain forward-looking statements that involve risks and uncertainties some of which are detailed from time to time in documents filed by the Company with the SEC. Those risks and uncertainties include, bu
Slide 3: Company Overview
Company Overview … 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.
Slide 4: Total Company Sales By Segment
Galvanizing 34% Galvanizing 40% Electrical and Industrial 66% Electrical and Industrial 60% Total Company Sales By Segment FY2006 $187.2 (in millions) Projected FY2007 $240 to $250 (in millions)
Slide 5: Total Company Sales By Market Segment
63% 8% 29% 67% 5% 28% Total Company Sales By Market Segment Industrial Transmission & Distribution Power Generation FY2006 $187.2 (in millions) Projected FY2007 $240 to $250 (in millions)
Slide 6: Industrial Utilization
Industrial Utilization Federal Reserve Statistical Release 77.3 77.9 78.9 78.6 78.8 79.9 80.4 80.5 Quarter Ending
Slide 7: Electrical and Industrial Products
Electrical and Industrial Products
Slide 8: Electrical and Industrial Products
39% 11% 50% 43% 10% 47% Electrical and Industrial Products Industrial Transmission & Distribution Power Generation FY2006 $123.7 (in millions) Projected FY2007 $145 to $150 (in millions)
Slide 9: Power Generation
Power Generation
Slide 10: Power Transmission
Power Transmission
Slide 11: Power Distribution
Power Distribution
Slide 12: Industrial / Commercial
Industrial / Commercial
Slide 13: Backlog ($ In millions)
$78 $66 $60 $49 $46 $49 $53 $53 $52 $54 $60 $65 $65 $77 $83 $74 $92 $99 $85 $0 $20 $40 $60 $80 $100 $120 Backlog ($ In millions)
Slide 14: Backlog
Backlog 135% $92.1 $52.5 $70.8 $73.8 st Qtr 2007 101% $65.0 $44.7 $44.9 $64.8 st Qtr 2006 124% $76.6 $47.8 $59.4 $65.0 nd Qtr 2006 115% $83.1 $44.4 $50.9 $76.6 rd Qtr 2006 81% $73.8 $50.3 $40.9 $83.1 th Qtr 2006 105% $73.8 $187.2 $196.2 $64.8 Fiscal 2006 110% $98.7 $62.9 $69.5 $92.1 nd Qtr 2007 Book
Slide 15: Galvanizing Services
Galvanizing Services
Slide 16: Galvanizing Services
Galvanizing Services Application: “After-fabrication” steel corrosion protection Locations: 11 14 facilities in 6 8 states
Slide 17: Galvanizing Services Markets
5% 26% 23% 26% 20% Electrical & Telecommunications OEM's Industrial Bridge & Highway Petrochemical Galvanizing Services
Slide 18: Financial Review
Financial Review Dana Perry * * * * * * * * * * * * * * *
Slide 19: Consolidated Net Sales
Consolidated Net Sales ($ In Millions) $136.2 $152.4 $187.2 $240 to $250 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2004 2005 2006 2007 Fiscal Year Actual Projected
Slide 20: Earnings Per Share
Earnings Per Share (Fully Diluted) $0.79 $0.87 $1.38 $2.65 to $2.75 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2004 2005 2006 2007 Fiscal year Actual Projected
Slide 21: Operating Margins
Operating Margins Electrical and Industrial Products 7.2% 7.2% 9.2% 12.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2004 2005 2006 2007 Actual Projected Galvanizing Services 18.3% 18.4% 20% 25.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2004 2005 2006 2007 Actual Projected
Slide 22: Consolidated Net Sales First Six Months FY07
Consolidated Net Sales First Six Months FY07 ($ In Millions) $92.6 $115.3 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 YTD 8/31/05 YTD 8/31/06
Slide 23: Earnings Per Share First Six Months FY07
Earnings Per Share First Six Months FY07 $0.63 $1.60 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 YTD 8/31/05 YTD 8/31/06
Slide 24: Operating Margins First Six Months FY07
Operating Margins First Six Months FY07 7.2% 13.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% YTD 8/31/05 YTD 8/31/06 Electrical and Industrial Products Galvanizing Services 31.8% 20.3% 0.05 0.1 0.15 0.2 0.25 0.3 0.35 YTD 8/31/05 YTD 8/31/06
Slide 25: Cash Provided By Operations/EBITDA/Free Cash Flow
Cash Provided By Operations/ EBITDA/Free Cash Flow ($ In Millions) ($5.0) $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2002 2003 2004 2005 2006 2007 Fiscal Year Cash Pro. By Oper. Free Cash Flow EBITDA Projected
Slide 26: Total Bank Debt
Total Bank Debt ($ In Millions) $63.6 $44.6 $30.9 $29.4 $19.9 $22.0 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2002 2003 2004 2005 2006 2007 Fiscal Year Actual Projected
Slide 27: Capital
$8.5 $6.6 $6.6 Capital Expenditures .23 to 1 .16 to 1 .32 to 1 Long Term Debt to Equity $22,000 $19,875 $29,375 Total Bank Debt Projected Period Ended 2/28/07 Actual Period Ended 2/28/06 Actual Period Ended 2/28/05
Slide 28: Return On Assets
Return On Assets Electrical and Industrial Products 8% 9% 14% 0% 5% 10% 15% 20% 2004 2005 2006 Galvanizing Services 20.0% 21.0% 27% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2004 2005 2006
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