#1ZAZZ AZZ Inc. Investor Presentation May 2020#2ZAZZ MAY 2020 PRESENTATION Safe Harbor Statement 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. You can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "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 press release 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, our customers and our operations could potentially be adversely impacted by the ongoing COVID-19 pandemic. We could also experience fluctuations in prices and raw material cost, 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 opportunities; currency exchange rates; adequacy of financing; availability of experienced management and employees to implement AZZ'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. AZZ has provided additional information regarding risks associated with the business in AZZ's Annual Report on Form 10-K for the fiscal year ended February 29, 2020 and other filings with the Securities and Exchange Commission ("SEC"), available for viewing on AZZ's website at www.azz.com and 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 AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. 2#3ZAZZ Overview • MAY 2020 PRESENTATION AZZ is a global provider of galvanizing and metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. Solid Operating History 33 Consecutive Years of Profitability Revenue 10-year CAGR – 12% - Significant Cash Generation . Industry Leading Operating Margins Solid Balance Sheet • Debt to Equity Ratio: 0.32x Significant Barriers to Entry Largest North American Galvanizer 48 Metal Coatings Plants . Large Network of Plants - Economies of Scale and Quick Turnarounds (<24hrs) ~4,000 Customers DGS: High-tech Solutions Outperform Competitors Strong Performance Double Digit Top- and Bottom-Line Growth Record Fiscal Year 2020 Revenue: $1.1 Billion, up 14.5% Adjusted Net Income: $71.3 million, up 39% Adjusted EBITDA: $156.3 million, up 22% Valuation Trading Discount to Comparable Group: EV/EBITDA: 36% EV/Sales: 14% P/E Ratio: 31% *Data as of May 15, 2020 3#4ZAZZ COVID-19 Summary Impact on Financial Results Balance Sheet/ Liquidity ■ Discontinued previously issued guidance ■ Galvanizing business remains solid, Electrical business continuing to process backlog, Industrial seeing shift of projects out of Q1 and into Q2 and Q3. Cash balance of $36.7 million as of 2/29/2020; Free cash flow of $144.8 million for FY20 Debt balance of $203.0 million at end of FY20, Adjusted annual EBITDA of 157.3 million at end of FY20 Available revolving debt capacity of $357.1 million at end of FY20 - North America – All plants are open and operating Operational Impacts R.O.W - Poland, Brazil operations open; Remote field services constrained, China re-opening Following CDC and WHO guidelines for cleaning and disinfecting, social distancing, health and safety, PPE Limiting travel and plant visitations, increased telecommuting Froze executive compensation Mitigation Efforts Capital Allocation Decisions Situational Awareness Reducing capacity to align with demand through furlough's and RIF's Hiring restrictions imposed ■ Suspended share repurchase; Announced dividend to be paid on May 21, 2020 ■ Reduced CapEx to critical safety and operational needs Travel restrictions slowing acquisition activity ■ AZZ's Leadership team in direct contact with the White House, CDC, and other governmental agencies. Participating in several briefing calls and staying abreast of current situation as it evolves by country and state. 4 MAY 2020 PRESENTATION#5ZAZZ Full Year FY20 Segment Revenue and Market Drivers Total FY2020 Revenue: $1.06 Billion Metal Coatings Segment $499.0 +13.3% vs. prior year Energy Segment $562.8 +15.6% vs. prior year Market Drivers MAY 2020 PRESENTATION Strong hot-dip galvanizing demand in construction Growing revenue contribution from Surface Technologies Maintained price/value realization in Galvanizing Strong North American turnaround seasons Robust e-house market within T&D, Industrial, Power Nuclear market remains in secular decline; Continued weak demand in the Oil Patch sector 50#6ZAZZ Strategic Direction MAY 2020 PRESENTATION Long term strategy to grow Metal Coatings organically and with a robust acquisition program, while targeting 21-23% Operating Margins ● Focus on operating excellence and providing outstanding customer service Assumes continued inorganic growth in Galvanizing and Surface Technologies • Energy will focus on operational excellence and profitable growth in its core businesses while divesting or exiting the non-core ● Specialty Welding will grow through international expansion, offering the best customized welding technology, and reducing dependence on the nuclear market space • Electrical businesses will focus on improving profitability and focus more on domestic market growth 6#7ZAZZ Metal Coatings Galvanizing, Surface Technologies 1 19000 60000 Energy Segment Electrical Systems 2 MAY 2020 PRESENTATION Welding Solutions 3 Multiple Infrastructure Markets Hot Dip Galvanizing Powder Coating, Plating, Anodizing Industrial, T&D, Power, Electric Utility E-houses, Switchgear, Medium and High Voltage Bus Duct, Hazardous Duty Lighting, Tubular Products Refinery & Power Specialty Welding, Maintenance & Repair Services 7#8ZAZZ 1 The Metal Coatings Segment provides hot-dip galvanizing, powder coating, plating and other metal coatings to the steel fabrication industry through 48 facilities located throughout the United States and Canada MAY 2020 PRESENTATION#9MAY 2020 PRESENTATION ZAZZ Metal Coatings' leading hot-dip galvanizing market position in North America offers adjacency opportunities in corrosion protection. North America's largest galvanizer 41 locations throughout the U.S. and Canada Differentiate on service & quality. Expand into market adjacencies in North America: Grow share of wallet by offering additional services: • Powder coating, plating, anodizing, spinning, etc. New Product Introduction Leverage galvanizing expertise to launch new products to support North American infrastructure renewal. Continuous galvanized rebar plant opened in FY2018 Inorganic growth: Continue to acquire Hot-Dip galvanizing and Surface Technologies capabilities in select markets within North America. Several opportunities in the pipeline#10ZAZZ The Energy Segment is a manufacturer of specialty electrical equipment focusing on safe and reliable transmission of power from generation sources to end customers, and a specialty welding service provider that ensures the safety and reliability of critical infrastructure in the energy markets worldwide MAY 2020 PRESENTATION#11MAY 2020 PRESENTATION ZAZZ 2 AZZ builds, maintains, rehabilitates and strengthens electrical and industrial infrastructure globally Enclosure Systems Switchgear Systems High Voltage Bus Medium Voltage Bus Hazardous Duty Lighting Tubular Products Manufacturer of custom . modular electrical buildings • ("e-houses"), as well as relay panels Ballistic, HEMP options • 3 U.S. locations (Pittsburg, . Kansas, Chattanooga, Tennessee, and Millington, Maryland) serving 48 contiguous states and Canada • Leading independent • provider of 38kV switchgear Integration of customer furnished equipment Padmount and Arc-Resistant Switchgear • 2 U.S. locations (Fulton, Missouri and OshKosh Wisconsin) serving 48 contiguous states and Canada • Utility Transmission & Distribution • Industrial • Data Center • Energy Storage • Utility Transmission & Distribution • Industrial A2E/5E78181-2 אור כי טוומרן אור * X70/50101012 AZC/SCTO101.2 . • Global leader in high-voltage SF6 gas insulated bus products Voltage ranges from 115kV to 1,200kV • Location in Medway, . Massachusetts and China serving Worldwide market . . Innovative medium voltage bus duct products to meet a variety of demands Product line includes isolated phase duct, segregated and non-segregated phase duct Manufacturing location in Jackson, Mississippi . Harsh and Hazardous Duty Lighting manufacturer with 75 year history • . LED, HID, and incandescant product lines Manufacturing location in Houston, Texas serving the worldwide market . Producer of API tubular products from 1" through 2 1/16" Full length tubing as well as pup-joints Manufacturing location in Crowley, Texas serving the worldwide market • Transmission & Distribution 11 Power Generation • Transmission & Distribution ⚫ Industrial • Food Processing Oil and gas drilling Industrial Oil and gas drilling#12• ZAZZ 3 MAY 2020 PRESENTATION Worldwide leader in developing and delivering specialized maintenance solutions through automated welding, weld cladding and weld overlay technologies that extend the lifetime and maximize the value of assets throughout the energy industry. Coke Drum Repair Waterwall Services Heater and Furnace Services Boiler Services Pressure Vessel Services Pipe and Piping Services Industry leading life extension and repair processes to address low cycle fatigue failure in coke drums. ● • World's largest installed base for the mitigation of fireside corrosion Specialized machine welding solutions specifically configured to address difficult U- bend welds found in heaters and furnaces Boiler life extension solutions that are industry standards 12 • Permanent repair solutions that extend operational lifespan of a wide range of pressure vessels ● The largest provider of machine orbital pipe welding services for refineries, nuclear plants and fossil plants.#13Financial Overview 13#14ZAZZ Full Year FY20 Summary - Consolidated In $millions, except per share amounts Revenue +14.5% $927.1 $1,061.8 Net Income -5.8% Reported / +39.1% Adjusted $51.2 $48.2 $71.3 FY2019 FY2020 • Organic growth . Contribution from acquisitions Price realization FY2019 ■ FY2020 ■ FY2020 Adj. • Lower zinc costs • Improved operational efficiencies 14 MAY 2020 PRESENTATION Diluted EPS -6.1% Reported / +38.3% Adjusted $1.96 $1.84 2019 2020 $2.71 FY2020 Adj. • Improved margins • Strong cash generation Divested NLI business#15ZAZZ Full Year FY20 Segment Results - Metal Coatings In millions $ except percentages Revenue +13.3% Key Statistics Operating Income +29.1% MAY 2020 PRESENTATION Operating Margin +260 bps $499.0 $107.9 FY2019 Revenue $440.3 $440.3 $83.6 21.6% 19.0% Organic $25.5 Acquisitions $33.2 FY2020 Revenue $499.0 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 Segment Summary: Record revenue driven by improved demand in several end markets (Construction, T&D, Solar) Continuing to see market expansion with Galvabar; Surface Technologies strategic acquisitions paying off Lower zinc costs in Galvanizing offset higher wage expense Improved labor productivity and operational efficiency driven by Digital Galvanizing System (DGS) Operating Margins of 21.6%, compared to 19.0% for prior year 15#16ZAZZ Full Year FY20 Segment Results - Energy In millions $ except percentages Revenue MAY 2020 PRESENTATION Key Statistics FY19 Revenue $486.8 +15.6% Operating Income Operating Margin +4.8% Reported / +34.1 Adjusted -60 bps Reported / +110 bps Adjusted $562.8 $486.8 $42.0 $32.8 $31.3 7.5% 6.4% 5.8% FY19 Book to Ship 1.07 to 1 FY20 Revenue $562.8 FY20 Book to Ship 0.92 to 1 FY2019 FY2020 ■FY2019 ■FY2020 FY2020 Adj. FY2019 FY2020 FY2020 Adj. Segment Summary: Strong refinery turnaround business in FY2020 Recognized revenue and shipped Chinese orders; backlog down from prior year due to large China shipments Improved Electrical operational execution and customer service Adjusted Operating Margin of 7.5% in FY2020, versus 6.4% in prior year $9.2 million impairment of nuclear assets at WSI 16#17AZZ Full Year Financial Guidance FY2020 Range Reported Adjusted In millions, except for EPS Revenue $1,020-$1,060 $1,061 $1,061 Earnings Per Share $2.60-$2.90 $1.84 $2.71 FY2021 Range In millions, except for EPS Revenue $970-$1,060 Earnings Per Share $2.65-$3.15 Discontinuing FY21 Guidance 17 MAY 2020 PRESENTATION Key Drivers: Metal Coatings: ➤ Continued operational execution Lower zinc costs Energy ➤ Executed large refining projects ➤ Electrical platform operational execution Divested NLI at year end Adjustments (refer to non-GAAP table) $18.6 million NLI loss of sale $9.2 million impairment of WSI nuclear assets ➤ $1.9 tax adjustments NLI#18ZAZZ Full Year FY 2020 Consolidated Results In millions, except for EPS and percentages YTD FY 20 Adjusted YTD FY 20 Reported YTD FY 19 Revenue $1061.8 $1061.8 $927.1 Gross Profit Gross Margin % Change vs. Adjusted 14.5% $239.2 $237.2 $198.6 20.4% 22.5% 22.3% 21.4% 110 bps Operating Profit $107.1 $79.3 $77.0 39.1% Operating Margin 10.1% 7.5% 8.3% 180 bps EBITDA $156.3 $128.5 $128.2 21.9% Net Income (loss) $71.3 $48.2 $51.2 39.3% Diluted EPS $2.71 $1.84 $1.96 38.3% Diluted Shares Outstanding 26,281 26,281 26.107 0.7% 18 MAY 2020 PRESENTATION#19ZAZZ Full Year FY 2020 Cash Flow Highlights In millions, except for percentages Cash flows provided by operating activities Less: Capital Expenditures Free Cash Flow Net Income Free Cash Flow/Net Income Full Year FY 2020 $144.8 Full Year FY 2019 $111.5 $(35.0) $(25.6) $109.8 $85.9 $48.2 $51.2 227.8% 167.8% Acquisition of Subsidiaries, net of cash acquired $60.6 $8.0 Dividends $17.8 $17.7 Share Repurchases $5.8 $0.0 19 MAY 2020 PRESENTATION#20ZAZZ Capital Allocation Focused on Growth In millions FY 2020 Capital Deployment $60.6 $35.0 ■Capital Expenditures Acquisitions $5.8 $17.8 ■Share Repurchases ■ Dividends 20 Shareholder Return Growth Capital Expenditures Acquisitions · • . MAY 2020 PRESENTATION New business and product lines Systems and technology Safety, Health and Environmental Strategic fit Accretive within the first year North American market focus Share Repurchases Resumed share purchases in fourth quarter of FY2020, program now suspended in FY2021 Dividends na YTD payout ratio 36.9% on a reported basis#21Key Indicators 21#22ZAZZ Key Indicators Metal Coatings Segment Galvanizing Will fabrication activity remain stable through summer? Surface Technologies When will our major customers either reopen, or get back to normal production levels? Energy Segment _IPG EPG When will Europe and India open up? How will the fall turnaround season look in June? Corporate How will bookings activity flow into the summer? Does any level of rig activity materialize by August? Tightly monitor cash flow and customer credit 22 MAY 2020 PRESENTATION#23ZAZZ OUR MISSION AZZ will 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 Trust, Respect, Accountability, Integrity, Teamwork, and Safety. GUIDING VALUES We Value Our Dedicated Employees and their communities by fully training and equipping them, and providing a safe environment to grow spiritually, personally, and professionally. We Value Our Customers by reliably providing high-quality products and services with outstanding customer service. We Value Our Shareholders by consistently providing outstanding returns above our peer group and, preferably, above all industrial indices. 23 MAY 2020 PRESENTATION#24Reg G Tables#25ZAZZ Non-GAAP Disclosure of EBITDA MAY 2020 PRESENTATION . • In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA, and other financial metrics, which are non-GAAP measures. 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 other financial metrics, 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. 25#26ZAZZ Non-GAAP Disclosure of Consolidated EBITDA In millions GAAP Net Income Adjustments to reconcile GAAP to non- GAAP Financial Measures Consolidated YTD FY 20 $48.2 Consolidated YTD FY 19 $51.2 Consolidated Q4 FY 20 $(10.6) Consolidated Q4 FY 19 $8.8 Interest Expense $13.5 $15.0 $3.0 $3.4 Income Tax Expense $16.7 $11.8 $(0.3) $1.3 Depreciation and Amortization Expense $50.1 $50.2 $13.0 $12.2 Total GAAP adjustments $80.3 $77.0 $15.7 $16.9 Non-GAAP EBITDA $128.5 $128.2 $5.1 $25.7 26 MAY 2020 PRESENTATION#27ZAZZ Non-GAAP Disclosure of Metal Coatings and Energy EBITDA In millions GAAP Operating Income Adjustments to reconcile GAAP to non- GAAP Financial Measures Metal Coating Q4 FY 20 Metal Coating Q4 FY 19 $22.6 $18.0 Energy Q4 FY 20 Energy Q4 FY 19 $(1.4) $5.6 Other Income / Expense $0.0 $(0.1) $(0.5) $0.3 Interest Expense $0.0 $0.0 $0.0 $0.0 Depreciation and Amortization Expense $8.0 $7.1 $4.5 $4.7 Total GAAP Adjustments $8.0 $7.0 $4.0 $5.0 Non-GAAP EBITDA $30.6 $25.0 $2.6 $10.6 27 MAY 2020 PRESENTATION#28ZAZZ Non-GAAP Disclosure of Consolidated Adjustments MAY 2020 PRESENTATION Full Year FY2020 Consolidated $(millions) except EPS Revenue Gross Profit Gross Margin SG&A Loss on Disposal As Reported (a) Adjustment As Adjusted Q4 FY 2020 Consolidated $(millions) except EPS As Reported (a) Adjustment As Adjusted 1,061.8 1061.8 Revenue 245.4 245.4 237.2 22.3% 2.0 (1) 239.2 22.5% Gross Profit 139.3 7.2 (1) 132.1 Gross Margin SG&A 51.1 20.8% 2.0 (1) 53.1 21.6% 39.7 7.2 (1) 32.6 (18.6) 18.6 (2) 0.0 Loss on Disposal (18.6) 18.6 (2) 0.0 Operating Profit 79.3 Operating Margin 7.5% 107.1 10.1% Operating Profit (7.3) 20.5 Operating Margin -3.0% 8.4% Other (exp)/income net -1.0 -1.0 Other (exp) / income net -0.6 -0.6 Interest 13.5 13.5 Interest 3.0 3.0 Tax 16.7 -4.8 (3) 21.4 Tax -0.3 -4.8 (3) 4.5 Net Income 48.2 71.3 Net Income -10.6 12.4 Shares Diluted EPS 26.281 26.281 Shares 26.209 26.209 1.84 2.71 Diluted EPS -0.41 0.47 (a) - Reported in conformity with US GAAP (1) - $2M and $7.2M are related to the $9.2M impairment of certain assets in our WSI nuclear business (2) - $18.6M relates to the loss on the disposal of the NLI business (3) - Includes $1.9M tax adjustment related to NLI and $6.7M in favorable taxes related to (1) and (2). (a) - Reported in conformity with US GAAP (1) - $2M and $7.2M are related to the $9.2M impairment of certain assets in our WSI nuclear business (2) - $18.6M relates to the loss on the disposal of the NLI business - (3) Includes $1.9M tax adjustment related to NLI and $6.7M in favorable taxes related to (1) and (2). 28#29ZAZZ Non-GAAP Disclosure of Energy Adjustments Full Year FY 2020 Energy $(millions) except EPS Revenue Gross Profit Gross Margin SG&A Loss on Disposal Operating Profit Operating Margin MAY 2020 PRESENTATION Q4 FY 2020 Energy As Reported (a) Adjustment As Adjusted $(millions) except EPS As Reported (a) Adjustment As Adjusted 562.8 562.8 Revenue 122.6 122.6 112.2 19.9% 2.0 (1) 114.2 Gross Profit 20.3% Gross Margin 24.0 19.5% 2.0 (1) 26.0 21.2% 79.3 7.2 (1) 72.2 SG&A 25.3 7.2 (1) 18.2 0.0 Loss on Disposal 0.0 32.8 5.8% 42.0 Operating Profit 7.5% Operating Margin (1.4) -1.1% 7.8 6.3% (a) - Reported in conformity with US GAAP - (a) Reported in conformity with US GAAP (1) - $2M and $7.2M are related to the $9.2M impairment of certain assets in our WSI nuclear business (1) - $2M and $7.2M are related to the $9.2M impairment of certain assets in our WSI nuclear business 29#30ZAZZ Non-GAAP Disclosure of Consolidated "Adjusted" EBITDA In millions Non-GAAP Adjusted Net Income Adjustments to reconcile non-GAAP to non-GAAP Financial Measures Interest Expense Non-GAAP Income Tax Expense Depreciation and Amortization Expense Total Non-GAAP Adjustments Consolidated (1) YTD FY 20 $71.3 Consolidated (1) Q4 FY 20 $12.4 $13.5 $3.0 $21.4 $4.5 $50.1 $13.0 $85.0 $20.5 Non-GAAP EBITDA $156.3 $32.9 (1) Uses "adjusted" results - page 25 30 MAY 2020 PRESENTATION#31ZAZZ Non-GAAP Disclosure of Energy "Adjusted" EBITDA In millions Non-GAAP Adjusted Operating Income Adjustments to reconcile non-GAAP to non-GAAP Financial Measures Energy (1) Energy (1) YTD FY 20 Q4 FY 20 $42.0 $7.8 Other Income / Expense $(1.2) $(0.5) Interest Expense $0.0 $0.0 Depreciation and Amortization Expense $18.4 $4.5 Total GAAP adjustments $17.2 $4.0 Non-GAAP EBITDA (1) Uses "Adjusted" numbers from page 26 31 $59.2 $11.8 MAY 2020 PRESENTATION