AZZ : Oppenheimer 19th Annual Industrial Growth Conference Presentation

Investor Presentation

Oppenheimer 19th Annual Industrial Growth Conference May 7, 2024

(NYSE: AZZ)

Disclaimers

This presentation shall not constitute an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification of such securities under the securities law of any such jurisdiction.

AZZ has filed a shelf registration statement (including a prospectus) with the Securities and Exchange Commission (the "SEC") for the offering to which this presentation relates. Before you invest in any securities of AZZ, you should read the prospectus in that registration statement and any other documents AZZ has filed with the SEC for more complete information about AZZ and the offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, AZZ, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting: Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at [phone] or by email at [e-mail]; or Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at [phone] or by email at [e-mail].

Cautionary Statements Regarding Forward Looking Statements - 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, including the statements regarding our strategic and financial initiatives. You can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward- looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Certain factors could affect the outcome of the matters described herein. This presentation may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our products and services, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the metal coatings markets. In addition, within each of the markets we serve, we also continue to experience additional increases in labor costs, components, and raw materials including zinc and natural gas which are used in the hot-dip galvanizing process; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition or disposition opportunities; currency exchange rates; availability of experienced management and employees to implement the Company's growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility or changes in the political stability in the United States and other foreign markets in which we operate; acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. The Company has provided additional information regarding risks associated with the business in the Company's Annual Report on Form 10-K for the fiscal year ended February 29, 2024, and other filings with the Securities and Exchange Commission ("SEC"), available for viewing on the Company's website at www.azz.comand on the SEC's website at www.sec.gov.You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and the Company's assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP- Regulation G Disclosures - In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA, Adjusted EBITDA, Net Debt, Net Leverage, Free Cash Flow and Free Cash Flow Conversion which are non-GAAP measures, which should be considered supplemental to, not a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Management believes that the presentation of these measures provides investors with a greater transparency comparison of operating results across a broad spectrum of companies, which provides a more complete understanding of AZZ's financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, to assess operating performance and that such measures may highlight trends in the Company's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents. For example, AZZ's definitions of non-GAAP financial measures may differ from non-GAAP financial measures used by other companies. For reconciliations to the most directly comparable GAAP measure, see the appendix to this presentation.

INVESTOR

PRESENTATION

2

Why Invest in AZZ?

Differentiated, high value-addmetal coatings provider with scale, expertise and customer centric technology uniquely positioned to serve the growing North American steel and aluminum markets

Strong business foundation capable of growing sales and margins at or above market levels, supported by multi-yearsecular growth drivers; while generating significant free cash flow

Coil coating and hot dip galvanizing provide environmentally friendly solutions that reduce emissions and extend the life cycle of the coated materials

Focused capital allocation to reduce debt and improve leverage while supporting high ROIC investments, and returning capital to shareholders

Commitment to EPS growth driven by operational improvement creates compelling investment opportunity and long-term shareholder value

INVESTOR

PRESENTATION

3

AZZ Snapshot (NYSE: AZZ)

AZZ is North America's

leading independent post-

fabrication hot-dip

galvanizing & coil coating solutions company with #1 positions in both markets

FORT WORTH, TEXAS		3,873
Headquarter:		Employees:

Segment Sales

Metal Coatings	48		Coil Coating	13
locations1:		Locations2:

Segment Adj. EBITDA3

43%

46%

57%54%

AZZ Metal Coatings

AZZ Precoat Metals

~$1.5B

Sales

AZZ Metal Coatings

AZZ Precoat Metals

$379M / $334M4

Adj. EBITDA

Excl. / Incl. Corporate Costs

24.7% / 21.7%4

Adj. EBITDA Margin

Excl. / Incl. Corporate Costs

(1)	41 galvanizing locations and 6 surface technologies locations; 1 tubular products location	ROADSHOW
(2)	Currently 13 plants with 15 processing lines, and new plant being constructed in Washington, MO	4	1
(3)	Segment Adjusted EBITDA excludes corporate costs and Infrastructure Solutions results	PRESENTATION
(4)	For a reconciliation to the most directly comparable GAAP measure, see the appendix to this presentation.

AZZ's Strategic Journey

$469$810$1,537

Sales, in millions

FY25+

FY13 - FY18

Optimized Legacy Footprint

• Improved capabilities and profitability of Metal Coatings
• Combined Electrical and Industrial assets into one operating segment (infrastructure Solutions)

FY19 - FY24

Strategic Transformation -

Positioning for the future

• Divested nuclear related businesses
• Divested majority stake (60%) of non-core Infrastructure Solutions segment to a joint venture
• Acquired Precoat Metals
• Returned $79 million to shareholders through stock repurchases FY2021-FY2022
• Reduced net leverage from 4.2X to 2.9X

Focused Metal Coatings

Company

• Investing in our future - New aluminum coil coating facility, progressing according to plan for full production in fiscal year 2026
• Driving operational excellence with ESG focus
• Expanding use of customer-centric technologies (DGS and Coil Zone)
• Capturing opportunities associated with long- term growth drivers in end markets
• Strategic acquisitions to support growth
• Maintaining debt to leverage range of 2.5-3.0X

ROADSHOW

PRESENTATION

5 2

Achievements Against Stated Commitments

Target Leverage

Cash Flow Generation

Acquisition Policy

Dividend Policy

Debt Reduction

Original Commitment								Achievements to Date
							•
• Reduce Net Leverage from 5.0x to 3.0x by FYE 2024				Total Net Leverage finished FY 2024 at 2.9x
• Preliminary FY24E Adj. EBITDA1 guidance of $300 - $325							•	TTM 2/29/2024 Adj. EBITDA1 of $334 million
		
million
• Adj. EBITDA Margin of 21.2% at mid-point of guidance1						•	Adj. EBITDA Margin of 21.7%1
• Near-term focus on reduction of debt; Prudently evaluate				•	No acquisitions since May 2022
M&A Opportunities
						•
• Commitment to Dividend Payment				AZZ continues to pay common dividends
• Near-term focus on reduction of debt; Committed to							•	Reduced debt as of 2/29/24 by $115 million, while
		
reducing debt by $75 million to $100 million during fiscal						investing >$35 million in the Washington, MO land
2024			and buildings (originally planned as sale leaseback)

(1) Adjusted EBITDA inclusive of corporate costs; For a reconciliation to the most directly comparable GAAP measure, see the appendix to this presentation

ROADSHOW

PRESENTATION

6 2

Mission-Driven, Experienced Management Team

Our Mission

Create superior value in a culture where people can

grow and TRAITS matter.

We are diverse, collaborative, and service-minded, operating in a culture of TRAITS…Trust, Respect, Accountability, Integrity, Teamwork, and Sustainability

Leadership Highlights

+200 years of combined industry experience

Senior corporate leadership with tenure and track record at AZZ

Proven industry leaders at respective coatings businesses

Executed and integrated multiple acquisitions, including

transformational M&A

Track record of success

Tom Ferguson	Philip Schlom	Jason Crawford	Bryan Stovall	Kurt Russell
President and Chief	Chief Financial	Chief Financial	President & COO	COO
Executive Officer	Officer	Officer	Metal Coatings	Precoat Metals
	(Retiring)	(Incoming)

Tara Mackey	Matt Emery	Tiffany Moseley	David Nark	Chris Bacius
Chief Legal Officer	Chief Information and	Chief Accounting	SVP of Marketing,	Vice President
	Human Resources	Officer	Communications	Business Development
	Officer		and
			Investor Relations

ROADSHOW

PRESENTATION

7 3

Diverse End Market Exposure

North American steel shipments by end-market2

8%

	5%	Construction
7%
	Automotive
	43%
10%	Machinery
	Energy
		Appliance
		Other
	27%

AZZ FY2024 Sales by end-market3

	11%
7%		Construction
		Industrial
8%		Transportation
	55%	Consumer
9%	Electrical

Other

10%

Total Construction starts are expected to rise by 7% to $1.2 trillion in 20241

Non-building(which includes sectors such as infrastructure) has more public funding, is more resilient, and has an

expected growth rate of 7% in calendar year 2024; highways and bridges have an expected growth rate of 23% in calendar year 2024

Institutional construction, including healthcare and education, are expected to grow at 5% and 4%, respectively, in calendar

year 2024

Residential (single family) construction expected to rise by 9% and multifamily by 14% calendar year 2024

Manufacturing expected to grow at 16%, while construction (warehouses) expected to decline by 11%

1. Dodge Construction Network 2024 forecast as of January 2024
2. Based on Worldsteel
3. Based on AZZ FY2024 financial results

ROADSHOW

PRESENTATION

8 4

Secular Drivers

Enhancing Outlook

Infrastructure and

Renewables

Investment

Reshoring

Manufacturing

Pre-painted Steel

and Aluminum

Migration

Conversion from

Plastics to

Aluminum

ROADSHOW	9	5
PRESENTATION

Uniquely Positioned to Capitalize on Generational Infrastructure Investment in U.S.

Roads, Bridges and

Major Projects

Investment: +$110bn

Investment to repair over 45,000 bridges and roughly 1 in

5 miles of highways currently in poor condition

Our Metal Coatings segment provides hot-dip

galvanizing for many end uses including guardrails, signs, bridges and light poles

Clean Energy and Power

Investment: +$65bn

Investment in clean energy transmission and grid by building thousands of miles of transmission lines

Our Metal Coatings segment provides hot-dip galvanizing for transmission, distribution and solar, including monopoles and lattice towers

Water, Airports and Other

Investment: +$75bn

Investment to improve critical infrastructure for water including both waste and drinking water, airports and data centers among many other areas

Our Precoat Metals segment provides aesthetic coatings for the metal used in data centers, airports, and other critical infrastructure

Source: American Infrastructure Investment and Jobs Act

ROADSHOW

PRESENTATION

10 6