Valmont Industries, Inc. · NYSE:VMI

Valmont Industries — Investor Day (2016)

150 slides from Valmont Industries's investor day presentation, 2016

1. Slide 1: 2016 Investor Day

   2016 INVESTOR DAY Valmont Industries, Inc. | 2016 Investor Day

2. Slide 2: Agenda

   Agenda 8:30 Company Direction, Strategy, Market Overview Mogens Bay  Coatings Segment Rick Cornish  Energy & Mining Segment Barry Ruffalo  Utility Segment Steve Kaniewski 10:05 Q&A 10:15 Break  Engineered Support Structures Segment David LeBlanc  Irrigation Segment Lenny Adams  Operational Exc

3. Slide 3: 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

4. Slide 4: Company & Strategy Overview

   Company & Strategy Overview Mogens Bay Chairman and Chief Executive Officer Valmont Industries, Inc. | 2016 Investor Day

5. Slide 5: Valmont Snapshot

   Valmont Snapshot Focused On Agriculture And Infrastructure End Markets Market-cap $2.4 B 2015 Sales $2.6 B Global Footprint 84 Manufacturing Sites in 23 Countries Employees 10,700, Incl. 500 Engineers #1 or #2 in All of Our Markets 2015 Revenue by Segment by Geography 13% 7% 3% 28% 11% 10% 14% 65% 2

6. Slide 6: Valmont Business Model

   Valmont Business Model Strong, Global, Enduring Drivers TOTAL VALUE CULTURE IMPACT FOCUS &TALENT COMPETITIVE STRENTHS TVI GROWTH DISCIPLINE NICHE VALUE MARKETS CREATION GLOBAL MINDSET/ FOOTPRINT LEVERAGE PRODUCTS, OPERATIONAL MARKETS, FOCUS CAPABILITIES Expand Global Reach Valmont Industries, Inc. |

7. Slide 7: Total Value Impact Focus (TVI)

   TOTAL VALUE IMPACT FOCUS TVI TVI ($m) $/Share 140 160 TVI Stock Price 140 110 120 80 100 50 80 60 20 40 -10 20 -40 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013 2014 2015 Delta acquisition disrupted the financial calculation in a significant way for 2010 Total Value Impact (TVI

8. Slide 8: Niche Markets: Infrastructure and Agriculture Water Efficiency

   NICHE MARKETS 1 Economic Growth Requires Quality Infrastructure  Lighting and Traffic Poles  Wireless Communication Structures  Utility Structures  Access Systems  Corrosion Protection 2 Agriculture Needs to Increase Water Efficiency  Center Pivot Irrigation Equipment  Technology (Telemetry,

9. Slide 9: Leverage Products, Markets, Capabilities

   LEVERAGE PRODUCTS, MARKETS, CAPABILITIES  Leverage Current Product Offerings – Current Products to New Markets – Example: Global Expansion  Leverage Market Reach – New Products to Current Markets – Example: Different Materials, Highway Safety Products  Leverage Core Competencies – Skill Set – Eng

10. Slide 10: Culture & Talent

    CULTURE &TALENT Passion Integrity Continuous Deliver Improvement Results Valmont Industries, Inc. | 2016 Investor Day 10

11. Slide 11: Global Network of Design and Structural Engineers

     Global Network of 500 Design and Structural Engineers  24/7 Capability Utilizing China and India Teams  Recognized as North America’s Leading Design Expert in our Field Valmont Industries, Inc. | 2016 Investor Day 11

12. Slide 12: Global Mindset Footprint

    GLOBAL MINDSET FOOTPRINT Valmont Industries, Inc. | 2016 Investor Day 12

13. Slide 13: The Valmont Way

    OPERATIONAL FOCUS “The Valmont Way”  Safety  5 Core Competencies  LEAN  Best Practice Sharing  Playbooks  Resource Sharing Valmont Industries, Inc. | 2016 Investor Day 13

14. Slide 14: Resegmentation

    Resegmentation Operating Income Percentage 2015  More transparency Segment Before After Engineered Support Structures 7.7% 8.9%  Focused management Utility 8.9% 8.9% Irrigation 13.8% 15.2% Coatings 16.7% 16.7% Energy and Mining 3.9% Other 10.0% Former Segmentation Revenue Current Segmentation 6% 1

15. Slide 15: Long-term Financial Objectives

    Long-term Financial Objectives Metric Goal 5 yr. Average Revenue Growth 5-10% 9.2% EPS Growth > 10% 9.5% ROIC > 10% 11.6% Free Cash Flow Conversion > 1.0x net earnings 0.82 Valmont Industries, Inc. | 2016 Investor Day 15

16. Slide 16: Strong Segment and Corporate Management Team

    Strong Segment and Corporate Management Team Utility Irrigation Steve Kaniewski Lennie Adams Group President Group President Joined Valmont in 2010 Joined Valmont in 1979 21 years of experience 37 years of experience Engineered Support Structures Energy & Mining David LeBlanc Barry Ruffalo Group Pre

17. Slide 17: Global Coatings Segment

    Global Coatings Segment Rick Cornish Group President Valmont Industries, Inc. | 2016 Investor Day

18. Slide 18: Global Coatings Segment Overview

    Global Coatings Segment Overview Pounds Coated 1.3 B from 60 Coating Lines 2015 Active Accounts 15,000 Global Footprint 33 Locations in 6 Countries (From one in 1997) Employees 2,000 2015 Sales Three key product/service areas Corrosion Costs the US 4%  Hot Dip Galvanizing $400B+ Annually 16%  Pain

19. Slide 19: Total Addressable Market

    Total Addressable Market Total Global Market Galvanizing: ~$5B | Paint: ~$25B North America Galvanizing $1.6B EMEA Paint $5.3B Galvanizing $2.4B Paint $6.6B Asia-Pacific Galvanizing $1.2B Paint $10.0B Latin America Galvanizing $0.5B Paint $4.0B Valmont Industries, Inc. | 2016 Investor Day 19

20. Slide 20: Global Coatings Historical Performance

    Global Coatings Historical Performance Operating Profit Sales (Millions) 30.0% 320 25.4% 24.9% 25.0% 21.9% 300 20.1% 20.9% 20.0% 280 15.0% 260 10.0% 240 5.0% 220 $281 $282 $301 $278 $255 0.0% (1) 200 2011 2012 2013 2014 2015 Sales OP percent (1) Before restructuring, impairments and certain non-recu

21. Slide 21: Business Drivers

    Business Drivers Galvanizing – Intensity Business Drivers of Use (Pounds Per Capita)  GDP/Economic Growth and 30 Development  Mature Economies 25 – Replacement or Upgraded Infrastructure 20  Developing Economies – New Infrastructure 15  Government Programs 10 – Highway Bill – Alternative Energy

22. Slide 22: 2015 End Uses by Sales

    2015 End Uses by Sales Diverse End Market/Customer Exposure  Serving Over 15,000 Active Customers Across Multiple Industries  Extensive Coating/Value Added Service Offerings  Multiple Quality Process Approvals and Certifications – ISO 9001 – NADCAP – Automotive – Aerospace – Milspec – Company/Ind

23. Slide 23: Global Coatings – North America

    Global Coatings – North America Differentiators  Valmont brand and reputation  Distribution footprint, coast-to-coast locations Valmont Coatings Sites  Multi-plant coordination Recent Additions  Unmatched product breadth, capabilities and services  Engineering/technical expertise  Valmont Coat

24. Slide 24: Global Coatings – Asia and Australia

    Global Coatings – Asia and Australia Australia – 8 Locations  Access to 80% of the market  Divested of Perth facility in 2013  Idled Port Kembla kettle in 2015; now a distribution site  Valmont Coatings Operating Valmont Coatings Sites System implemented in 2015 Australian Galvanizing Market(1)

25. Slide 25: Hot Dip Galvanizing

    Hot Dip Galvanizing  Process of dipping fabricated steel into a kettle or vat of molten zinc  Factory applied; extremely controlled, which results in a distinct advantage over other corrosion protection methods  Full immersion enables full protection – both external and internal exposed surfaces

26. Slide 26: Case Study: Hot Dip Galvanizing and Life Cycle Cost

    Case Study: Hot Dip Galvanizing and Life Cycle Cost American Galvanizing Association (AGA) Golden Gate Bridge Brooklyn Bridge  Opened in 1937  Opened in 1883  24,000 tons of the two main suspension  World’s first hot dip galvanized steel cables and accessories were hot dip wire cable suspension

27. Slide 27: Zinc – Sources, Uses, Availability

    Zinc – Sources, Uses, Availability  Traded on the London Metal Exchange Uses of Zinc(1) Rolled Zinc Misc  All natural, durable mineral essential for 6% 3% – Human Health Compounds 9% – Environment – Crops Brass/Bronze 10%  A Sustainable Resource Galvanizing 58% Die Casting 14% Zinc Producing Regi

28. Slide 28: Additional Coatings Services

    Additional Coatings Services Duplex Systems – Paint (Wet or Powder) Over Galvanizing  Premier, synergistic coatings solution  Further protects zinc surface from environmental conditions, extending life and achieving color aesthetic requirements Powder Coating  Powder material is applied then heat

29. Slide 29: Key Strategic Growth Priorities

    Key Strategic Growth Priorities  Drive growth through targeted acquisitions, globally – Leverage existing Valmont manufacturing locations (North America and Latin America, EMEA, APAC) – Expand market share where we currently are – Enter developing markets  Drive growth through “Greenfield” constru

30. Slide 30: The Valmont Way – Coatings

    The Valmont Way – Coatings  Unique combination of operational, financial, communications, technology and performance management/development systems  Developed over the past 20 years to serve our customers better  Documented, readily exportable to new opportunities and continually improving 2015 R

31. Slide 31: Valmont Coatings Summary

    Valmont Coatings Summary Scale, Footprint & Capability Of Operations Generate Opportunities Unique To Valmont  Global footprint creates global opportunity  Respected brand  Broadest portfolio of services and capabilities in the industry  Highly diversified customer base serving multiple industri

32. Slide 32: Energy and Mining Segment

    Energy and Mining Segment Barry Ruffalo Group President Valmont Industries, Inc. | 2016 Investor Day

33. Slide 33: Energy and Mining Segment Overview

    Energy and Mining Segment Overview 2015 Revenues $338 million Manufacturing Facilities 21 in 12 countries Employees 1,742 Revenue By End Market Revenue By Business Differentiators Mining  Leading Brands - #1 Large complex structure manufacturer in Northern Europe Oil and Gas - #1 in grinding media

34. Slide 34: Energy and Mining Historical Performance

    Energy and Mining Historical Performance Operating Profit Sales (Millions) 12.0% $500 10.4% 10.3% 10.1% $450 10.0% 9.3% $400 $350 8.0% $300 6.0% $250 3.9% $200 4.0% $150 $100 2.0% $50 $300 $320 $340 $444 $333 0.0% $- (1) 2011 2012 2013 2014 2015 Revenue OP percent (1) Before restructuring, impairmen

35. Slide 35: Energy and Mining: Webforge/Locker

    Energy and Mining Segment: Webforge/Locker Markets Served Access Systems Industrial Conveyance Extractive Screening  Oil & Gas, Industrial, Commercial and Civil Construction Core Capabilities Functional Architectural Screening Civil Grating  Customized Access Systems and Components Valmont Industr

36. Slide 36: Webforge/Locker: Global Opportunity

    Energy and Mining Segment: Webforge/Locker #1 in Asia Pacific, Opportunity to Expand Globally APAC~$1B Americas ~$2B EMEA~$2B No Clear Global # 1 – Dominated by Regional Leaders Valmont Industries, Inc. | 2016 Investor Day 36

37. Slide 37: Webforge/Locker: Growth Opportunities

    Energy and Mining Segment: Webforge/Locker Positioned to Capitalize on Growth Opportunities Moving Forward Strong Position  Leverage Brand with Customers e.g. Global Engineering Procurement  Webforge/Locker Brands Construction (EPC) Firms  Manufacturing Footprint in Asia  Diversify from Oil and

38. Slide 38: Energy and Mining: Valmont SM

    Energy and Mining Segment: Valmont SM The #1 Player in Northern Europe Markets Served Wind Towers and Rotor Houses Utility Structures  Wind Energy, Oil & gas and Civil Construction Core Capabilities  Large Tower Conveyers Civil Steel Compensators fabrication  Large-Scale Complex Steel Structures

39. Slide 39: Valmont SM: Core Capabilities and Value Propositions

    Energy and Mining Segment: Valmont SM Leverage Core Capabilities and Unique Value Propositions Moving Forward Strong Position  Continued Growth of Investments  Excellent Reputation in Off-Shore Wind  Building Large-Scale Complex  Growth in Utility Transmission Structures in Northern Europe Steel

40. Slide 40: Valmont SM: Target Solutions

    Energy and Mining Segment: Valmont SM Target Solutions for Wind, Utility and Civil Markets Unique Value Proposition  Global supplier of very large complex steel structures  Deep domain expertise in wind energy  Full design, project management and machine building skills  Leverage Valmont global

41. Slide 41: Energy and Mining: Donhad

    Energy and Mining Segment: Donhad The Grinding Media Market Leader in Australia Markets Served  Primarily Copper & Gold mining Core Capabilities  Service-focused forged grinding media provider Up to 40’ diameter  Customer-driven product development – Size – Metallurgy – Testing Valmont Industries

42. Slide 42: Grinding Media and Fasteners in Mining

    Grinding Media and Fasteners are Critical Ingredients in Mining Donhad’s Consumable Products are Designed to Elevate Mill Efficiency Process Flow – Copper Production Comminution / Use of Grinding Media Drilling & Loading & Crushing & Concentrating Smelting Refining Blasting Hauling Conveying  Large

43. Slide 43: Donhad: Growth Through Product Development

    Energy and Mining Segment: Donhad Grow Through Product Development and Operational Excellence Moving Forward Strong Position  New Materials for Product Improved Quality and  Excellent Operational Efficiency Capability  Drive Operational Excellence  Donhad Brand  Export Sales Supported by  Stro

44. Slide 44: Energy and Mining Segment Summary

    Energy and Mining Segment Summary  Energy and Mining has leading brands – Can be leveraged outside of current regions and end markets  Low cost manufacturing footprint – Leverage cost in current and new markets  Untapped global opportunity – Leverage brands, strengths and capabilities  Opportuni

45. Slide 45: Utility Segment

    Utility Segment Steve Kaniewski Group President Valmont Industries, Inc. | 2016 Investor Day

46. Slide 46: Utility Segment Overview

    Utility Segment Overview Utility Market Leader in Engineered Tubular Steel & Concrete Support Structures & Services Primary Products Transmission, Distribution and Substation Structures Facilities 14 (9 US,1 Mexico, 1 Canada(1), 3 China(1)) Employees ~1,975 Competitive Advantages  Global Manufactur

47. Slide 47: Global High Level Market Drivers

    Global High Level Market Drivers Reliability, Renewables and Integration Will Continue to Drive Transmission Investment Grid reliability growing in importance  Electric grid requires significant investment due to many decades of underinvestment  Average age of typical U.S. transmission line more t

48. Slide 48: Utility Performance Over Time

    Performance Over Time Valmont Global Utility Revenue $M OP % $1,000 25% 23.1% $900 $962 $874 $800 $825 20% 18.2% $700 $701 14.8% $675 $600 13.6% 15% 12.9% $624 $500 10.9% 11.3% 10.1% $465 8.9% $400 11.5% 10% $474 $300 $345 $299 $200 5% $100 $- 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015(1)

49. Slide 49: Utility North American Market Overview

    Utility North American Market Overview Sales are Still Primarily Utilities Through Rep Agencies Customers Access to Market Distributor Coop EPC 5% 2% 1% Transmission Inside Sales Company 25% 6% Utility Sales Agent 86% 75% Valmont Industries, Inc. | 2016 Investor Day 49

50. Slide 50: Global Utility Market Overview

    Global Utility Market Overview Planned Line Kilometer Additions by Voltage Classification (2016 – 2018) By Region By Voltage Classification 80,000 50,000 73,720 45,000 43,577 70,000 40,000 37,073 60,000 35,000 50,000 29,022 30,000 40,000 25,000 21,387 20,000 30,000 15,000 20,000 18,095 14,493 13,549

51. Slide 51: Addressable North American Market Sizes

    Addressable North American Market Sizes Opportunities for Growth Replacing Other Materials & Structures Current Phase 1 Expansion Phase 2 Expansion Served Market Increase Served Market Increase Served Market $1.3B $2.8B $4.0B Wood Wood Wood Wood Transmission Wood Transmission Wood Transmission Distr

52. Slide 52: Utility Strategy Overview

    Utility Strategy Overview Strengthen, Grow, and Expand Core Markets Expand the Core Electrify the World International Markets Go-to-Market Grow the Core Lean Global Enterprise Footprint Product Breadth Talent Customer Strengthen & Innovation Management Service the Core Valmont Industries, Inc. | 201

53. Slide 53: Product Breadth & Innovation – Strengthen the Core

    Product Breadth & Innovation – Strengthen the Core Percentage of Sales by Type 9% Transmission 11% BOLD™ Subtransmission (SW) Designed Poles Substation Distribution 12% 68% Future Growth Opportunities  PyraMax™ Lattice Alternative  Proprietary engineering design  Real opportunities for future gro

54. Slide 54: Talent and Customer Service – Strengthen the Core

    Talent and Customer Service – Strengthen the Core  Leadership development allows us to excel with our customers  Hire and retain outstanding people with passion and integrity  Encouraging an environment of innovation, creativity, collaboration and operational excellence  World class engineering

55. Slide 55: Lean Enterprise – Grow the Core

    Lean Enterprise – Grow the Core Lean Focus Over Time Allows for Margin Expansion Despite the Market  Began in earnest within Utility division in 2014  Synonymous with continuous improvement  Focus on Safety, Quality, Delivery and Cost  One measure of productivity improved 15% YOY in 2015 – 2 yea

56. Slide 56: Utility Global Footprint – Grow the Core

    Utility Global Footprint – Grow the Core Strongest geographic footprint within the industry  Best freight optimization  Proximity to galvanizing  Time to market  Close to sources of steel and cement Steel Pole Manufacturing Facility Concrete Pole Manufacturing Facility Expand Grow Strengthen THE

57. Slide 57: Global Footprint – Grow the Core

    Global Footprint – Grow the Core Continued Analysis of Footprint Critical as Market Becomes More Bid Oriented  Maximizing use of low-cost manufacturing facilities  Rationalized capacity (Mansfield, Brenham, Bay Minette, Mojave) over last two years  Using S&OP process to maintain focus on use of l

58. Slide 58: Go-to-Market – Grow the Core

    Go-to-Market – Grow the Core  Our market delivery initiatives drive our organic growth  Accommodate regional product and construction differences, minimize freight  Increase ‘share of wallet’ at existing customers via product offering  Continue to strengthen alliance relationships Expand Grow St

59. Slide 59: International Markets – Grow the Core

    International Markets – Grow the Core Increase Opportunities to Serve the Markets  International markets currently dominated by lattice towers and inexpensive distribution poles – Move to monopoles will occur as aesthetics and right of way concerns gain prominence – Expand product range to increase

60. Slide 60: Electrify the World – Expand the Core

    Electrify the World – Expand the Core Consider All Market Synergies and Adjacencies Over the long-term we will look to support utilities outside of monopole structures  Adaptation of available products Expand the Core to increase served market Electrify  Value-added service partnerships with EPCs

61. Slide 61: Q&A

    Q&A 2 0 1 6 I N V E S T O R D AY Valmont Industries, Inc. | 2016 Investor Day

62. Slide 62: Break

    Break 2 0 1 6 I N V E S T O R D AY Valmont Industries, Inc. | 2016 Investor Day

63. Slide 63: Engineered Support Structures Segment

    Engineered Support Structures Segment David LeBlanc Group President Valmont Industries, Inc. | 2016 Investor Day

64. Slide 64: Engineered Support Structures Segment Overview

    Engineered Support Structures Segment Overview 2015 Revenues $771 million Manufacturing Facilities 28 in 12 countries Employees 3,400 Leading Shares Around the World 2015 Revenue by Region  #1 in North America  #2 in Europe APAC  Strong in key niches in China & India 23% Complete Product Line & I

65. Slide 65: Products and Sub-Segments: Roadway, Traffic

    Products and Sub-Segments Product Overview Roadway & Residential Traffic & Mass Transit Valmont Industries, Inc. | 2016 Investor Day 65

66. Slide 66: Products and Sub-Segments: Lighting, Telecom Towers

    Products and Sub-Segments Product Overview High Mast & Sports Lighting Telecommunications Towers Valmont Industries, Inc. | 2016 Investor Day 66

67. Slide 67: ESS Historical Performance

    Engineered Support Structures Historical Performance Operating Profit Sales (Millions) 10.0% 1,000 8.9% 9.0% 8.4% 900 8.1% 8.0% 800 7.0% 700 6.0% 600 5.0% 5.0% 500 3.7% 4.0% 400 3.0% 300 2.0% 200 1.0% 100 $682 $723 $800 $810 $772 0.0% - 2011 2012 2013 2014 2015 Sales OP percent (1) Before restructur

68. Slide 68: ESS Market Context

    Engineered Support Structures Market Context North America $1.3B Europe $1.1B Asia $1.5B India $0.3B Africa $0.3B Latin America Pacific $0.4B $0.3B $5 B+ Global Market Valmont Industries, Inc. | 2016 Investor Day 68

69. Slide 69: ESS Global Footprint

    Engineered Support Structures Global Footprint Finland Poland Estonia Netherlands UK Canada France USA China Morocco India Philippines Australia Markets with manufacturing presence Export markets served Facilities Unmatched Penetration Provides Broad Operating & Commercial Leverage Valmont Industrie

70. Slide 70: ESS Market Context: Regional Growth

    Engineered Support Structures Market Context North America – Pockets of Growth  Commercial & Residential Construction still recovering to 2006 peaks  Increasing use of technology driving demand for smart poles  US Highway Bill provides necessary support for project planning & execution Europe – T

71. Slide 71: Solid Growth in NA Commercial & Residential Construction

    Engineered Support Structures Market Context Solid Growth in NA Commercial & Residential Construction Valmont Industries, Inc. | 2016 Investor Day 71

72. Slide 72: ESS Business Drivers

    Engineered Support Structures Business Drivers North American Market is approx. $1B, key end markets include:  Traffic signal & roadway lighting  Residential street lighting & Area lighting  Intelligent Traffic Signal pole applications Fixing America’s Surface Transportation Act or “FAST Act”  $

73. Slide 73: The Future of Smart Poles

    Engineered Support Structures Market Context The Future of Street Light Smart Poles Air Quality Monitor Public Security Camera 4G Local Wi-Fi Electric Car Charging Station Emergency Hotline Valmont Industries, Inc. | 2016 Investor Day 73

74. Slide 74: Emerging Market Roadway Investment

    Engineered Support Structures Market Context Emerging market roadway investment should experience sustained growth Source: International Energy Agency Global Land Transport and Infrastructure Requirements Study - 2013 Global Road Traffic Activity to Nearly Double to 43 trillion Annual Vehicle km is

75. Slide 75: Strong Growth in Key Sub-Segments

    Engineered Support Structures Market Context Strong Growth in Key Sub-Segments ESS Utility Valmont Industries, Inc. | 2016 Investor Day 75

76. Slide 76: Fragmented Market Provides Inorganic Growth Potential

    Engineered Support Structures Market Context Fragmented Market Provides Inorganic Growth Potential Other $5B market. Valmont is Clear Leader and Only Global Player Valmont Industries, Inc. | 2016 Investor Day 76

77. Slide 77: ESS Core Strategy: Driving Global Growth

    Engineered Support Structures Core Strategy Driving Global Growth Deploying An Unmatched Global Supply Network Winning An Increasingly Globalized Competition Intensifying Operational Focus Deep Institutional Knowledge Across The Value Chain Delivering A Broad Value Proposition Leveraging Scale In En

78. Slide 78: Deploying an Unmatched Global Supply Chain

    Engineered Support Structures Driving Profitable Growth Deploying an Unmatched Global Supply Chain Global Sourcing in 2005 Global Sourcing in 2016  Labor & Overhead savings largely  Steel Cost Differentials + growing offset by Freight Costs - Bulky and Labor & Overhead savings + Heavy Products Dec

79. Slide 79: Global Supply Chain Driving Growth

    Engineered Support Structures Driving Profitable Growth Finland Poland Estonia Netherlands UK Canada France USA China Morocco India Philippines Australia Deploying an Unmatched Global Supply Chain and Driving Growth Commercial Reach & Low Cost Supply Chain are Unique Competitive Advantages Valmont I

80. Slide 80: Intensifying Operational Focus

    Engineered Support Structures Driving Profitable Growth Intensifying Operational Focus  Leveraging Deep Institutional Knowledge Across the entire value chain  Focus on the critical few  Execute with intensity and rigor Near Term Targets…  Lower Material Costs  Lower Conversion Costs  Lower Fre

81. Slide 81: Broadening our Competitive Advantage

    Broadening our Competitive Advantage Driving Profitable Growth RESEARCH DESIGN SOURCE MAKE MARKET SELL SERVICE & Apps Delivering a Broad Value Proposition  Growing Markets & Driving New Specifications – Offering Technical Innovation, Optimal Material Choices and Great Aesthetics – With unmatched re

82. Slide 82: Case Study: New Doha International Airport Project

    Engineered Support Structures Case Study: Leveraging Market Reach & Global Capabilities The New Doha International Airport (NDIA) Project  Project originally surfaced through Valmont India who directed it to Valmont France  Valmont France won the $20M+ project over several other competitors  Tech

83. Slide 83: ESS Segment Strategy Over Time

    Engineered Support Structures Segment Strategy Over Time Short Medium Long Leverage global supply chain Intensify Operational Focus Broaden value proposition and commercial excellence Accelerate growth in less developed geographies Expand product and service offerings Acquire Develop new technology

84. Slide 84: Irrigation Segment

    Irrigation Segment Lennie Adams Group President Valmont Industries, Inc. | 2016 Investor Day

85. Slide 85: Irrigation Segment Overview

    Irrigation Segment Overview Who Is Valley Irrigation? 2015 Segment Revenue $612M Locations 8 Manufacturing, 11 Warehouse, 7 Sales in 10 countries Employees 1,700 Global Distribution ~ 500 Independent Dealers, 4 Distribution Centers  First to commercialize Center Pivot irrigation in 1954  The globa

86. Slide 86: Irrigation Key Points

    Irrigation Key Points  Long Term Historical Financial Performance is Strong  Several Key Business Drivers Enabling Global Growth  Leading Industry Position – World’s #1 Brand – Valley – We Created The Industry – Global Dealer Strength  Several Growth Strategies  Technology Leadership Is Providi

87. Slide 87: Valley Products & Solutions

    Valley Products & Solutions Valley Product Breadth  Center Pivots Linear Machines  Linear Machines  Corner Machines Center Pivots  Towable Machines  Control Panels  Remote Telemetry  GPS  Variable Rate Irrigation BaseStation 3  Scheduling  Design VRI AgSense Control Panels Valmont Industri

88. Slide 88: Global Footprint & Strength

    Global Footprint & Strength Warehousing Locations Manufacturing Locations Sales Offices Valmont Industries, Inc. | 2016 Investor Day 88

89. Slide 89: Education & Training

    Education & Training Competitive Differentiator Internal Facing External Facing  Established in 2013  Established in 2015  Global Reach  Thought leadership  Classroom & Online  Online  Available in 5 Languages  Grower education focus  234 courses available  Specific equipment training  Si

90. Slide 90: Historical Revenue Performance

    Historical Revenue Performance 1985 – 2015 30 year CAGR = 6.96% 20 year CAGR = 6.25% 10 year CAGR = 7.68% 5 year CAGR = 1.48% $M 900 800 700 600 500 400 300 200 100 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201

91. Slide 91: Historical Operating Profit

    Historical Operating Profit Historical Performance Operating Profit % Operating Profit (Millions) 25.0% $250 21.3% 20.2% 20.0% $200 18% 17.9% 16.5% 14.5% 15.4% 15.2% 15.0% $150 12.0% 11.6% 10.0% $100 5.0% $50 $48 $70 $109 $48 $79 $132 $170 $206 $152 $93 0.0% $0 (1) 2006 2007 2008 2009 2010 2011 2012

92. Slide 92: The Global Irrigation Story

    The Global Irrigation Story Irrigated Land Produces More Crop & More Value Type of Irrigation Efficiency Range 20% Total Cultivated Gravity/Flood 50-85% Area under Drip 75-95% Irrigation Mechanized (Pivot) 75-95% Mechanized Irrigation Supports Global Total Production Sustainability 40% Output on  R

93. Slide 93: Irrigated Acres 2013 – Total USA

    Irrigated Acres 2013 – Total USA Irrigated Acres Where (55.3M Acres) we Play Mechanized 48% Travelers 1% Hand Move Valley Equipment 1% by Crop Type Permanent Potatoes Other Grains 3% 5% 4% 4% Side Roll 3% Cotton 7% Sub-Surface Drip 1% Corn & Beans Surface-Low Flow 58% Drip Hay Crops 7% Flood 22% 36%

94. Slide 94: Macro Drivers

    Macro Drivers Increasing global population, becoming Increasing income / meat consumption more urban in developing countries Increasing non-food agricultural products, such as fiber and biofuels Global agricultural output must double by 2050 Source: virtus-equipment.com Valmont Industries, Inc. | 20

95. Slide 95: Efficient Water Usage

    Efficient Water Usage Limited Fresh Water Requires Efficient and Effective Use All Earth’s Water Salt Water Freshwater ~3% Freshwater Ice Caps Other Freshwater ~1/3 Use of accessible Freshwater All Other Agriculture ~2/3 Source: FAO Agriculture Uses Two-thirds of Available Fresh Water Valmont Indust

96. Slide 96: Valley Long-Term Strategy

    Valley Long-Term Strategy Mission: To Be The Leader In Efficient Use Of Water For Agriculture 1 Continue International Market Penetration & Development 2 Drive Lean Operational Excellence 3 Continue Technology Leadership & Innovation Valmont Industries, Inc. | 2016 Investor Day 96

97. Slide 97: Increase Global Penetration

    Increase Global Penetration Go-To-Market Value Proposition  Total Life Cycle Cost  Value vs. Price Leverage Valley Brand  Penetrating with strong branding Invest In Local Presence  Valley University & Training  Cultivating Strong Local Relationships  Service & After Sales Support 97 Valmont In

98. Slide 98: Driving Lean Operational Excellence

    Driving Lean Operational Excellence Lean is Critical for Valley to Win Globally Safety, Quality, Delivery & Cost Why Do We do it?  Flex Capacity  Cost Containment/Reduction  Standard Work  Eliminate Waste  Implement Best Practices Globally Leverage Best Cost Global Production & Sourcing  Split

99. Slide 99: Valley Technology Leadership

    Valley Technology Leadership Significant Valley Firsts in the Irrigation Market 1950 1970 1980 1990 2000 2010 2014 1975 – Introduces the 1990 – Launches the Corner machine for first computerized bringing extra acres irrigation control into production panel 2010 – Introduces Variable Rate 1995 – Pock

100. Slide 100: Valley Remote Monitoring & Control

     Valley Remote Monitoring & Control Most Robust & Versatile Telemetry Solutions in the Market  Customized Enterprise Solution  Cloud-Based Connection  On-Farm Server  Targeted to Small-Medium Farms  Targeted to Large Farms  Low Initial Investment For User  Software Maintenance Model  Subscrip

101. Slide 101: Shifting Focus To Remote Monitoring & Control Leadership

     Shifting Focus To Remote Monitoring & Control Leadership North America has Approximately 265,000 Installed Mechanical Irrigation Machines Approximate Share Connected North American Machines * All Others Valley/AgSense Source: 3rd Party Market Study Currently Only 1/4 Of All Machines In North America

102. Slide 102: Simplifying Data

     Simplifying Data Grower in Today’s World Overwhelmed with Disparate Data that Does Not Easily Integrate Across Systems Pump Control Crop Prices Weather Flow Rate Soil Composition Yield Analysis Fertilizer Prescription Soil Moisture VRI Prescription Equipment Maintenance Seed Prescription Crop Health

103. Slide 103: Enabling The Grower's Data

     Enabling The Grower’s Data Valley Irrigation Exchange Enables The Grower  Irrigation Exchange creates organization & ease of data transfer  Provides seamless integration of Irrigation data into other Farm Management Applications  Provides Real-time Irrigation data to be sent anywhere the grower d

104. Slide 104: Valmont Provides Irrigation Exchange

     Valmont Provides Irrigation Exchange Source: Harvard Business Review, Valmont Valmont Industries, Inc. | 2016 Investor Day 104

105. Slide 105: Irrigation Summary

     Summary Valley Delivers Strong Reliable Historic Financial Performance The Global Industry Leader  Brand Leader  Price Leader  Technology Leadership  Highest Quality, Proven Durability & Reliability Global Distribution Network Leadership  Deep, Long Lasting relationships with our Dealers  Inve

106. Slide 106: Operational Excellence

     Operational Excellence Barry Ruffalo Executive Vice President, Operational Excellence Valmont Industries, Inc. | 2016 Investor Day

107. Slide 107: The Valmont Way

     The Valmont Way The Valmont Way is how we will conduct business at Valmont. It must be our competitive advantage and will represent our roadmap to excellence Operating Philosophy  Independent division management leveraging common corporate processes across businesses  Value creation and growth fac

108. Slide 108: The Valmont Way: Exceptional Operational Core

     The Valmont Way Exceptional Operational Core Customer Service Excellence Values Focus on Customer Engaging employees to solve Living the Core Values Service as a true problems, create uniform every day differentiator processes, and utilize Lean tools Valmont Industries, Inc. | 2016 Investor Day 108

109. Slide 109: The Valmont Way – Plan

     The Valmont Way – Plan  Disciplined planning is key to good execution  Each process is not an event but part of our normal operating cycle Market &  Rigor in capital spend and utilization review Economic Analysis Forecast Strategic Planning Organizational Capability Assessment Annual  Strategic

110. Slide 110: The Valmont Way – Do

     The Valmont Way – Do  Execute Strategy Deployment – Aligned resources, objectives, and metrics of goals at all levels of the organization  Deploy Lean – Playbook Execution, Aligned and Cascaded Lean Committees,  Strategy Deployment  Leverage Playbooks Training Program, Support  Employee Engagem

111. Slide 111: The Valmont Way – Check

     The Valmont Way – Check  Drive accountability  Assess market dynamics SQDC Business Results Board  Sales  Valmont Way Meeting Utilization  Cost - Evaluate Scorecards  Profit  Market assessment Key Performance Indicators  Customer engagement  Safety, Quality, Delivery and Cost  Working Capi

112. Slide 112: The Valmont Way – Act

     The Valmont Way – ACT Every person and business within Valmont must ACT: Act involves understanding variances. Better than plan?  New baseline for future plans which supports continuous improvement  Share best practices Worse than plan?  Find root cause  Corrective actions and counter measures i

113. Slide 113: The Valmont Way Foundation

     The Valmont Way Valmont Way Provides the Tools: Leadership Creates the Spirit  Strategy Deployment  Valmont Way Meeting  Leverage Playbooks - Evaluate  Employee Engagement Scorecards  Market assessment  Customer engagement  Best Practice sharing  Strategic Planning  Problem Solving  Annual

114. Slide 114: Financial Review

     Financial Review Mark Jaksich Executive V.P. and CFO Valmont Industries, Inc. | 2016 Investor Day

115. Slide 115: 2015 Results

     2015 Results 2015 Sales & OI Contracted 16% & 34%, Respectively, Amidst Deep Cyclical Pressure YoY Change YoY Change (16%) (34%) Ex. FX (10%) Sales Ex. FX (30%) Operating Income $3,123 $358 $2,619 $237 Adj. $132 GAAP (63%) 2014 2015 2014 2015 Adj. EPS $8.17 $5.63 (31%) Adj. OI% 11.5% 9.1% EPS $7.09

116. Slide 116: 2015 Revenue and Operating Income by Segment

     2015 Revenue and Operating Income – By Newly Announced Segment Structure $ millions Net Sales Adjusted Operating Income $2.6B $237M* 23% 28% 24% 33% 13% 21% 10% 26% 5% 18% ESS Utility Coatings Energy and Mining Irrigation ESS Utility Coatings Energy and Mining Irrigation Adjusted Operating income is

117. Slide 117: 2015 Results – Segment Revenue

     2015 Results – Segment Revenue Contraction Was Broad-Based Across The Portfolio 2015 YoY Change In Revenue Energy and ESS Utility Coatings Mining Irrigation 2% Total Company (16%) -8% -18% -25% Revenue Decrease Absent FX is 10% -28% Valmont Industries, Inc. | 2016 Investor Day 117

118. Slide 118: 2015 Revenue By Geography

     2015 Revenue By Geography 39% of Revenue Is Outside US, Where Dollar Strength Exacted Its Toll Revenue by Geography Other Asia 6% 7% EMEA 13% United States ANZ 61% 13% Sales $188 2015 FX Impact: OI $17 Currencies Most Affecting Translation Were Euro, Australian Dollar and Brazilian Real 118 Valmont

119. Slide 119: 2015 Restructuring Recap

     2015 Restructuring Recap  Cost - $39.8 million – 50% Cash, 50% Non-Cash  Benefits - $30 million annualized savings – Rationalized Footprint But Maintained Ability to Serve Markets 1. Australia: Reduced sites from 37 to 30 (manufacturing & distribution) 2. North America: Consolidated 5 manufacturin

120. Slide 120: Cycle Dynamics – Revenue and Operating Income

     Cycle Dynamics – Revenue and Operating Income 2013 Was Top Of The Cycle For Valmont… $m $3.5 16.0% $3.0 14.0% 14.3% 12.0% $2.5 12.6% 11.5% 10.0% $2.0 9.9% (1) 9.0% 9.1% 8.0% $1.5 5.0% 6.0% GAAP(1) $1.0 4.0% $0.5 2.0% $2.0 $2.7 $3.0 $3.3 $3.1 $2.6 $- 0.0% 2010 2011 2012 2013 2014 2015 1 Excluding imp

121. Slide 121: Cycle Dynamics – Segment EBITDA

     Cycle Dynamics – Segment EBITDA EBITDA Peaked In 2013 But Still Very Strong At Cyclical Trough* $M Segments have different drivers – variations amongst the total are less than individual segments. $630 $600 $504 $501 $500 $400 $383 $372 $300 $289 $200 $100 $0 2010 2011 2012 2013 2014 2015 Irrigation

122. Slide 122: Cycle Dynamics - Free Cash Flow

     Cycle Dynamics - Free Cash Flow Free Cash Flow Has Been Robust Throughout The Cycle… $ millions $290 $227 $116 $100 $101 $67 2010 2011 2012 2013 2014 2015 …Averaging $150M Annually Valmont Industries, Inc. | 2016 Investor Day 122

123. Slide 123: Balance Sheet – 2015

     Balance Sheet – 2015 Goal: Maintain Investment-grade rating; Keep Debt/EBITDA from 1.5 to 2.5x 2015 Actual Credit Rating Free Cash Flow $227M S&P BBB+ Negative Cash At 12/31 $349M ($283 Ex. US) Moody’s Baa3 Stable Total Debt $766M Debt/Adjusted 2.66x Adjusted EBITDA Adj. Debt/Capital 43% See the Com

124. Slide 124: Liquidity and Debt Maturities

     Liquidity and Debt Maturities More Than Ample Liquidity And Debt Is Mostly Long Dated Maturities Liquidity Debt Maturities  $349M Cash $250 $250 $250  $600M Revolver With $200M Accordion Feature – None Drawn  Avg. FCF ~$150M ($227M in ’15) '16 '17 '18 '19 20 '44 '54 Liquidity > $1 B No Issue With

125. Slide 125: Capital Allocation Philosophy

     Capital Allocation Philosophy Support Growth & Bolt-on Return Cash to Operations of Existing Acquisitions Shareholders Businesses  Working Capital  Acquisitions Must  Dividends – targeted Investment to Support Fit Strategically payout ratio of 15% Sales Growth of earnings  Clear path to returns

126. Slide 126: Capital Deployment Track Record

     Capital Deployment Track Record Excess Capital Increasingly Allocated To Repurchase At This Stage In Cycle $686 $301 $263 $195 $164 $103 2010 2011 2012 2013 2014 2015 Dividends Share Repurchase Acquisitions Capital Spending Valmont Industries, Inc. | 2016 Investor Day 126

127. Slide 127: Dividend

     Dividend Dividend Is An Important Commitment – Has Increased 13 Out of last 15 Years Dividend Per Share $1.50 15 Year CAGR = 12.4% $0.65 $0.34 $0.26 '00 '05 '10 '15 Remains A Key Element of Shareholder Return Valmont Industries, Inc. | 2016 Investor Day 127

128. Slide 128: Growth Track Record: Organic and Acquisition

     Growth Track Record: Organic and Acquisition $B 3.5 3.0 15-Yr Total Growth Rate of 14% 2.5 2.0 1.5 15-Yr Organic Growth Rate of 3% 1.0 0.5 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Organic Acquisitions Valmont Industries, Inc. | 2016 Investor Day 1

129. Slide 129: Acquisition Strategy Is Disciplined

     Acquisition Strategy Is Disciplined Three Critical Hurdles Ability to Leverage Target  Market  Product  Competency  Cultural Fit Business Outlook  Growth prospects and business drivers  Industry structure and position  Financial performance Financial Projections  Path to beat after-tax cost

130. Slide 130: 2016 Outlook – Key Market Assumptions

     2016 Outlook – Key Market Assumptions Expecting Slightly Lower Revenue Revenue  Modest volume decline vs. 2015  Reasonable N.A. pricing backdrop  Stable markets for lighting, Irrigation ESS communication  GDP level growth Coatings Energy and Utility Mining  NPI Drives modest growth  Pricing pr

131. Slide 131: 2016 Guidance

     2016 Guidance Re-establishing Full Year EPS Guidance EPS Walk –in2015-2016 2016 General Assumptions:  FX Rates Similar to Current Rates  Stable raw material costs $6.31 - $6.47 $5.63 2015 FX Cost Take-Out Tax Rate Share Repurchase Acquistion Possible Market Improvements 2016 Productivity Contracti

132. Slide 132: Long-Term Financial Objectives

     Long-Term Financial Objectives Objectives Provide Roadmap For Substantial Shareholder Value Creation Metric Goal 5 yr. Average Revenue Growth 5-10% 9.2% EPS Growth > 10% 9.5% ROIC > 10% 11.6% Free Cash Flow Conversion > 1.0x net earnings 0.82 Valmont Industries, Inc. | 2016 Investor Day 132

133. Slide 133: Summary

     Summary  Portfolio of businesses with attractive secular growth characteristics  2015 revenue contraction was unusual – Cyclical businesses with drivers that historically did not correlate – All segments endured downward market pressure  Excluding exacerbated macro weakness, appear to be at or ne

134. Slide 134: Q&A

     Q&A 2 0 1 6 I N V E S T O R D AY Valmont Industries, Inc. | 2016 Investor Day

135. Slide 135: Lunch

     Lunch 2 0 1 6 I N V E S T O R D AY Valmont Industries, Inc. | 2016 Investor Day

136. Slide 136: Appendix Reg G

     Appendix 1 Reg G Valmont Industries, Inc. | 2016 Investor Day

137. Slide 137: Reg G Reconciliation

     Reg G Reconciliation SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS Unaudited and (Dollars in thousands, except per share amounts) The non-GAAP tables below disclose the 2015 impact on (a) diluted earnings per share of (1) restructuring costs, (2) goodwill and trade name im

138. Slide 138: Reg G Reconciliation (continued)

     Reg G Reconciliation (continued) For the Year Ended Dec. 26, 2015 Engineered Utility Support Energy & Support Other/ Segment Operating Income Reconciliation Structures Mining Structures Coatings Irrigation Corporate Operating income (loss) - as reported $ 59,592 (18,762) 37,847 27,369 84,537 (58,888

139. Slide 139: Calculation of Annual TVI

     Calculation of Annual TVI TVI is calculated as Operating Income (after-tax) less 8.5% times the average of beginning and ending Invested Capital. Invested Capital represents total assets minus total liabilities (excluding interest-bearing debt). 2001 2002 2003 2004 2005 2006 2007 2008 2009 TVI Calcu

140. Slide 140: Calculation of Annual TVI (continued)

     Calculation of Annual TVI (continued) 2010 2011 2012 2013 2014 2015 TVI Calculation 3 1 Operating Income $ 193,720 $ 263,310 $ 382,296 $ 473,069 $ 357,716 $ 237,520 2 Tax rate 36.0% 30.2% 35.2% 35.1% 33.4% 32.2% Tax effected Operating Income $ 123,981 $ 183,790 $ 247,728 $ 307,022 $ 238,239 $ 161,03

141. Slide 141: Calculation of Adjusted EBITDA Contribution by Segments

     Calculation of Adjusted EBITDA Contribution by Segments 2015 2014 2013 2012 2011 Net earnings attributable to Valmont Industries, Inc. $40,117 $183,976 $278,489 $234,072 $228,308 Interest expense 44,621 36,790 32,502 31,625 36,175 Income tax expense 47,427 94,894 157,781 126,502 4,590 Depreciation a

142. Slide 142: Appendix Management Biographies

     Appendix 2 Management Biographies Valmont Industries, Inc. | 2016 Investor Day

143. Slide 143: Mogens C. Bay

     Mogens C. Bay Chairman and Chief Executive Officer  Joined Valmont in 1979 – Chairman and CEO (1997) – President and CEO (1993) – President and General Manager, Valmont Irrigation – President and General Manager, Valmont International  Prior Experience – Manager, East Asiatic Company – China (1974

144. Slide 144: Mark C. Jaksich

     Mark C. Jaksich Executive Vice President and Chief Financial Officer  Joined Valmont in 1983 – CFO 2014 to present – Vice President and Corporate Controller – Controller International Division – Manager Internal Audit – Assistant Controller Retail Irrigation – Auditor Peat Marwick & Mitchell (now K

145. Slide 145: Lennie Adams

     Lennie Adams Group President Global Irrigation Segment  Joined Valmont in 1978 – Vice President Operations Poles – Vice President and General Manager, Tubing – President Coatings and Tubing – President North America Irrigation and Tubing  BS Accounting, Wayne State University, Nebraska  Received

146. Slide 146: Barry A. Ruffalo

     Barry A. Ruffalo Executive Vice President and Group President Energy and Mining  Joined Valmont in 2015  20+ years industry experience – 9 years with Lindsay Corporation  President – Irrigation  President – Infrastructure – 11 years with Joy Global & Case New Holland  Joy Global – Director of N

147. Slide 147: Rick Cornish

     Rick Cornish Group President Global Coatings  Joined Valmont in 1996 as Founding Member of Coatings Division  Previously with Kinark (1988 – 1996) – Several roles of increasing responsibility, including Vice President of Galvanizing Operations  BS Business, University of Kansas, (1978)  MBA Univ

148. Slide 148: Stephen G. Kaniewski

     Stephen G. Kaniewski Group President Utility Support Structures  Joined Valmont in 2010 – Vice President of Information Technology (IT) – Vice President of Global Operations, Irrigation Division  20+ years industry experience – Belden (1999 – 2010) – 11 years working overseas  8 years – Mexico 

149. Slide 149: David M. LeBlanc

     David M. LeBlanc Group President Engineered Support Structures  Joined Valmont in 2015  25 year career managing global industrial businesses – 20+ years with Lincoln Electric, leader in arc welding products – Overseas assignments  8 years – Mexico City  5 years – Europe  3 years – China – Early

150. Slide 150: 2016 Investor Day

     2 0 1 6 I N V E S T O R D AY Valmont Industries, Inc. | 2016 Investor Day

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