Investor Presentation November 2019 Forward Looking Statements Some - PowerPoint PPT Presentation

Investor Presentation November 2019

Forward Looking Statements Some statements in this presentation, which are not historical facts, are “forward - looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements about Arcosa Inc.’s (“Arcosa”, or the “Company”) estimates, expectations, be liefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” “vision”, and similar expressions to identify these forward -looking statements. Forward-looking statements speak only as of the date of this presentation, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward- looking statements are based on management’s current views and assumptions and involve risks and uncertainties that coul d cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa’s separation from Trinity Industries, Inc. (“Trinity”; NYSE:TRN); tax treatment of the separa tion; failure to successfully integrate the ACG Materials acquisition, or failure to achieve the expected benefits of the acquisition; market conditions and customer demand for Arcosa’s business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; improving mar gins; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see “Risk Factors” and the “Forward - Looking Statements” section of “Management’s Discussion and Analysis of Finan cial Condition and Results of Operations” in Arcosa’s Form 10 - K for the year ended December 31, 2018, as may be revised and updated by Arcosa’s Quarterly Repo rts on Form 10-Q and Current Reports on Form 8-K. Non-GAAP Financial Measures This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations of non-GAAP financial measures to the closest GAAP measure are provided in the Appendix. Presentation of Financials The spin- off of the Company by Trinity was completed on November 1, 2018. The Company’s financial statements for periods prior to November 1, 2018 were presented on a “carve - out” basis. The carve -out financials of the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an independent company during the applicable periods. / Moving Infrastructure Forward — Investor Presentation, November 2019 2

How to Find Us NYSE TICKER OUR WEBSITE ACA www.arcosa.com INVESTOR CONTACT HEADQUARTERS InvestorResources@arcosa.com Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, Tx 75201 / Moving Infrastructure Forward — Investor Presentation, November 2019 3

Agenda Company overview Financial highlights ESG update / Moving Infrastructure Forward — Investor Presentation, November 2019 4

Arcosa at a Glance A new public company with an established operating history and financial strength $1.78B $235M $107M Revenue Adjusted EBITDA Net Income 3 ~5,800 85+ Infrastructure-related Employees Years of Operating History Segments Arcosa separated from its former parent company and became an independent public company in November 2018 Note: Revenue, Net Income, and Adjusted EBITDA based on midpoints of 2019 Guidance as of 11/1/2019 / Moving Infrastructure Forward — Investor Presentation, November 2019 5

Arcosa Overview Provider of infrastructure-related products and solutions positioned for growth C ON STR U C TION EN ER GY TR A N SPOR TATION Markets Revenues $403M $436M $831M 21% 15% Adj.Segment 14% EBITDA Margin A G G R E G AT E S W I N D T O W E R S B A R G E S S P E C I A LT Y U T I L I T Y C O M P O N E N T S M AT E R I A L S S T R U C T U R E S C O N S T R U C T I O N S T O R A G E TA N K S S I T E S U P P O R T Revenues and Adjusted Segment EBITDA margin for the last twelve months ended 9/30/2019. See Adjusted Segment EBITDA reconciliation in Appendix. / Moving Infrastructure Forward — Investor Presentation, November 2019 6

Construction Products Segment Overview P R O D U C T S K E Y F I G U R E S R E V E N U E (LTM 9/30/2019) by product type ($M) Construction $403M site support SPECIALTY CONSTRUCTION Revenue 73 AGGREGATES MATERIALS SITE SUPPORT (18%) 74 21% Steel & aluminum Natural sand, gravel Lightweight trench shoring and limestone base aggregates; specialty Adjusted Segment EBITDA products and milled or processed Margin systems materials 330 (82%) $30B+ As of 12/31/18: ▪ Estimated proven and probable aggregate reserves exceeding 300 Aggregates and Estimated annual million tons, excluding ACG specialty materials market size ▪ Projected average reserve life of legacy business of at least 33 years Note: Aggregates and Specialty Materials grouped as “Construction Aggregates” in Financials. Construction Site Support classified as “Other”. See Adjusted Segment EBITDA reconciliation in Appendix. / Moving Infrastructure Forward — Investor Presentation, November 2019 7

Energy Equipment Segment Overview P R O D U C T S K E Y F I G U R E S R E V E N U E by product type ($M) (LTM 9/30/2019) Storage tanks $831M and other WIND TOWERS UTILITY STRUCTURES Revenue 206 (25%) Storage 15% 625 Adjusted Segment EBITDA (75%) Margin RESIDENTIAL/COMMERCIAL/ INDUSTRIAL SCALE & FIELD AGRICULTURAL ERECTED STORAGE Utility structures STORAGE and wind towers $564M Backlog in Utility Structures and Wind Towers as of 9/30/19 See Adjusted Segment EBITDA reconciliation in Appendix. Adjusted Segment EBITDA includes $2.9M of bad debt recovery recorded in 1Q 2019. / Moving Infrastructure Forward — Investor Presentation, November 2019 8

Transportation Products Segment Overview P R O D U C T S K E Y F I G U R E S R E V E N U E by product type ($M) (LTM 9/30/2019) $436M Barges FIBERGLASS TANK BARGES HOPPER BARGES Revenue COVERS 195 14% (45%) 240 Adjusted Segment EBITDA (55%) INDUSTRIAL & RAILCAR Margin MINING RAILCAR AXLES COUPLING COMPONENTS DEVICES $5B+ Components Estimated annual $364M Backlog in Barges as of market size 9/30/19 See Adjusted Segment EBITDA reconciliation in Appendix. / Moving Infrastructure Forward — Investor Presentation, November 2019 9

First Year Progress We celebrated our one year anniversary as a public company on November 1 st and remain encouraged by our progress and focused on the future Building our new Arcosa culture Executing on our Stage 1 Priorities ✓ Acquired ACG Materials + 3 additional Grow complementary acquisitions to expand regional Construction ✓ Entrepreneurial and growth-minded Products footprint Improve ✓ Focused on integrating ESG ✓ Grew Adjusted Segment EBITDA margins from 10% Energy in 2018 to 15% in LTM 2019 initiatives into our long-term strategy Equipment ✓ Turning focus to growth in adjacent product lines margins ✓ Performance accountability ✓ Ramped up barge facilities to grow revenue ~80% in Expand 2019, with healthy backlog headed into 2020 Transportation ✓ “We win together” Products ✓ Streamlined corporate structure to reduce layers Operate a flat corporate structure See Adjusted Segment EBITDA reconciliation in Appendix. / Moving Infrastructure Forward — Investor Presentation, November 2019 10

Long-Term Vision for Arcosa Integrate Environmental, Social, Improve and Governance Reduce long-term returns initiatives (ESG) into our on invested capital long-term strategy the complexity and Grow cyclicality of the overall in attractive markets business where we can achieve sustainable competitive advantages / Moving Infrastructure Forward — Investor Presentation, November 2019 11

Agenda Company overview Financial highlights ESG update / Moving Infrastructure Forward — Investor Presentation, November 2019 12

Third Quarter 2019 Financial Results Reported strong year-over-year growth across key metrics 3rd Quarter, ended September 30 ($M’s) Year-to- Date, ended September 30 ($M’s) Adjusted Adjusted Revenues Revenues Net Income Net Income EBITDA EBITDA +18% +35% +35% +33% +40% +19% 445.0 33.0 93.7 187.6 64.9 1,290.0 378.6 1,086.0 141.1 24.5 69.3 46.4 32.7 92.2 48.0 3.2 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 Margin Margin Adjusted Reported Adjusted Reported 12.3% 14.6% 13.0% 14.5% See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix . / Moving Infrastructure Forward — Investor Presentation, November 2019 13