# EDGAR Filing Document

**Accession Number:** 0000102729
**File Stem:** 0000102729-23-000010
**Filing Date:** 2023-2
**Character Count:** 86158
**Document Hash:** 8c642f74c8886e68eee95fd42c4ece80
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000102729-23-000010.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0000102729-23-000010

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230222

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VALMONT INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000102729
- **STANDARD INDUSTRIAL CLASSIFICATION:** FABRICATED STRUCTURAL METAL PRODUCTS [3440]
- **IRS NUMBER:** 470351813
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31429
- **FILM NUMBER:** 23654822

**BUSINESS ADDRESS:**
- **STREET 1:** 15000 VALMONT PLAZA
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68154
- **BUSINESS PHONE:** 402-963-1000

**MAIL ADDRESS:**
- **STREET 1:** 15000 VALMONT PLAZA
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68154

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VALLEY MANUFACTURING CO
- **DATE OF NAME CHANGE:** 19680822

?xml version='1.0' encoding='UTF-8'?

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**February 22, 2023**

Date of Report (date of earliest event reported)

**Valmont Industries, Inc.**

(Exact name of registrant as specified in its charter)

**Delaware**

(State or other jurisdiction of incorporation)

---

| | |
|:---|:---|
| **1-31429** | **47-0351813** |
| (Commission File Number) | (I.R.S. Employer Identification No.) |
| **15000 Valmont Plaza** | **68154** |
| **Omaha NE** |  |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**(402) 963-1000**

Registrant's telephone number, including area code

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $1.00 par value | VMI | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

------

**Item 2.02. Results of Operations and Financial Condition.**

Valmont Industries, Inc. issued a press release on February 22, 2023 announcing its financial results for its fiscal quarter and year ended December 31, 2022. The press release, along with the presentation to be used during its earnings call on February 23, 2023, are furnished with this Form 8-K as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in this Item 2.02 is being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

**Item 9.01. Financial Statements and Exhibits.**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | [Press Release dated February 22, 2023](vmi-20230222xex99d1.htm) |
| 99.2 | [Presentation Slides for earnings call on February 23, 2023](vmi-20230222xex99d2.pdf) |
| 104 | Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document) |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Valmont Industries, Inc. | Valmont Industries, Inc. |
| Date: | February 22, 2023 |  |  |  |
|  |  | By: | /s/ AVNER M. APPLBAUM | /s/ AVNER M. APPLBAUM |
|  |  |  | Name: | Avner M. Applbaum |
|  |  |  | Title: | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

![Graphic](vmi-20230222xex99d1001.jpg)

**Exhibit 99.1**

---

| | | |
|:---|:---|:---|
|  |  | **FOR IMMEDIATE RELEASE** |
| **Contact:** | Renee Campbell  | Renee Campbell  |
| **Email:** | renee.campbell@valmont.com |  |
| **Date:** | February 22, 2023 |  |

---

**Valmont Reports Fourth Quarter and Full Year 2022 Results**

**Achieves Record Results and Provides Positive 2023 Full Year Net Sales and EPS Guidance**

Omaha, NE - Valmont Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the fourth quarter and fiscal year ended December 31, 2022.

**Fourth Quarter 2022 Highlights** *(all metrics compared to Fourth Quarter 2021 unless otherwise noted)* 

&nbsp;&nbsp;&nbsp;&nbsp;● Net Sales of $1.1 billion increased 17.5%, a fourth quarter record

&nbsp;&nbsp;&nbsp;&nbsp;● Operating Income increased 116.2% to $109.7 million, or 9.7% of net sales (increased 32.9% to $113.7 million or 10.1% adjusted <sup>1</sup>) compared to $50.8 million or 5.3% of net sales ($85.6 million or 8.9% adjusted <sup>1</sup>)

&nbsp;&nbsp;&nbsp;&nbsp;● Diluted Earnings per Share ("EPS") of $1.86 ($3.57 adjusted <sup>1</sup>) compared to $1.25 ($2.73 adjusted <sup>1</sup>)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o GAAP EPS includes a pre-tax loss of $33.3 million or $1.54 per diluted share from the divestiture of the offshore wind energy structures business

&nbsp;&nbsp;&nbsp;&nbsp;● Generated strong operating cash flows of $142.5 million

&nbsp;&nbsp;&nbsp;&nbsp;● Repurchased 60,200 shares of company stock for $20.0 million

&nbsp;&nbsp;&nbsp;&nbsp;● <u>Announced</u> and <u>completed</u> the divestiture of the offshore wind energy structures business, Valmont SM <sup>TM</sup> , which had been reported in the Renewable Energy product line in the Infrastructure segment and is now reported as "Other" <br>

&nbsp;&nbsp;&nbsp;&nbsp;● Incurred GAAP tax rate of 40.6%; adjusted tax rate was 27.4% excluding the loss generated from the divested offshore wind energy structures business which provided no tax benefit

**Full Year 2022 Highlights** *(all metrics compared to Full Year 2021 unless otherwise noted)* 

&nbsp;&nbsp;&nbsp;&nbsp;● Record Net Sales of $4.3 billion, an increase of 24.1%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Strong sales growth as Infrastructure grew to a record $2.9 billion and Agriculture grew to a record $1.3 billion, including 17.6% growth in agriculture technology products and services

&nbsp;&nbsp;&nbsp;&nbsp;● Operating Income increased 51.1% to $433.2 million, or 10.0% of net sales (increased 34.6% to $449.7 million or 10.3% adjusted <sup>1</sup>) compared to $286.8 million or 8.2% of net sales ($334.0 million or 9.5% adjusted <sup>1</sup>)

<sup>1</sup>Please see Reg G reconciliation to GAAP measures at end of document

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Higher operating income was led by favorable pricing and volume growth in both Infrastructure and Agriculture

&nbsp;&nbsp;&nbsp;&nbsp;● Diluted EPS of $11.62 ($13.82 adjusted <sup>1</sup>) compared to $9.10 ($10.92 adjusted <sup>1</sup>) <br>

&nbsp;&nbsp;&nbsp;&nbsp;● Generated strong operating cash flows of $326.3 million, a significant improvement compared to 2021, driven by higher net earnings and improvements in working capital performance

&nbsp;&nbsp;&nbsp;&nbsp;● Capital expenditures were $93.3 million, including approximately $30.0 million for strategic investments including a new concrete utility structures facility in Bristol, Indiana and irrigation capacity expansions in Brazil and Dubai

&nbsp;&nbsp;&nbsp;&nbsp;● Deployed $39.3 million of cash to acquire a majority interest in ConcealFab, accelerating the Infrastructure segment's global telecommunications growth strategy

&nbsp;&nbsp;&nbsp;&nbsp;● Returned $86.3 million of capital to shareholders through dividends of $45.8 million and share repurchases of $40.5 million <br>

&nbsp;&nbsp;&nbsp;&nbsp;● Achieved Return on Invested Capital of 12.9% (13.3% adjusted <sup>1</sup>) <br>

&nbsp;&nbsp;&nbsp;&nbsp;● Year-end backlog of approximately $1.7 billion, an increase of 2.1% since the end of fiscal 2021, reflecting sustained pricing and continued strong market demand across the portfolio

&nbsp;&nbsp;&nbsp;&nbsp;● <u>Realigned financial reporting</u> from four reportable segments to two: Infrastructure and Agriculture, to elevate focus on market growth strategies, capital allocation, and technology development

**Key Financial Metrics**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fourth Quarter 2022** | **GAAP** | **GAAP** | **GAAP** | **Adjusted**<sup>1</sup> | **Adjusted**<sup>1</sup> | **Adjusted**<sup>1</sup> |
|  | **14 weeks** | **13 weeks** |  | **14 weeks** | **13 weeks** |  |
| (000's except per share amounts) | **12/31/2022** | **12/25/2021** |  | **12/31/2022** | **12/25/2021** |  |
|  | **Q4 2022** | **Q4 2021** | **vs. Q4 2021** | **Q4 2022** | **Q4 2021** | **vs. Q4 2021** |
| Net Sales | $1131516 | $963278 | 17.5% | $1131516 | $963278 | 17.5% |
| Operating Income | 109716 | 50754 | 116.2% | 113734 | 85555 | 32.9% |
| &nbsp;&nbsp; *Operating Income as a % of Net Sales* | 9.7% | 5.3% |  | 10.1% | 8.9% |  |
| Net Earnings | 40332 | 26856 | 50.2% | 77256 | 58751 | 31.5% |
| Diluted Earnings Per Share | $1.86 | $1.25 | 48.8% | $3.57 | $2.73 | 30.8% |
| Average Shares Outstanding | 21656 | 21523 |  | 21656 | 21523 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Full Year 2022** | **GAAP** | **GAAP** | **GAAP** | **Adjusted**<sup>1</sup> | **Adjusted**<sup>1</sup> | **Adjusted**<sup>1</sup> |
|  | **53 weeks** | **52 weeks** |  | **53 weeks** | **52 weeks** |  |
| (000's except per share amounts) | **12/31/2022** | **12/25/2021** |  | **12/31/2022** | **12/25/2021** |  |
|  | **FY 2022** | **FY 2021** | **vs. FY 2021** | **FY 2022** | **FY 2021** | **vs. FY 2021** |
| Net Sales | $4345250 | $3501575 | 24.1% | $4345250 | $3501575 | 24.1% |
| Operating Income | 433249 | 286785 | 51.1% | 449725 | 334049 | 34.6% |
| &nbsp;&nbsp; *Operating Income as a % of Net Sales* | 10.0% | 8.2% |  | 10.3% | 9.5% |  |
| Net Earnings | 250863 | 195630 | 28.2% | 298139 | 234811 | 27.0% |
| Diluted Earnings Per Share | $11.62 | $9.10 | 27.7% | $13.82 | $10.92 | 26.6% |
| Average Shares Outstanding | 21580 | 21493 |  | 21580 | 21493 |  |

---

"The Valmont team delivered another strong quarter of continued growth and outstanding performance, achieving record net sales and further margin improvement year-over-year," said Stephen G. Kaniewski, President and Chief Executive Officer. "These results were driven by a continued commitment to our disciplined pricing strategies, robust demand for our industry-leading products and services, and solid execution by our global teams. Ongoing investments in grid reliability, transportation infrastructure, 5G buildouts, and the clean energy transition are leading to a multi-year runway for growth across our

<sup>1</sup>Please see Reg G reconciliation to GAAP measures at end of document

------

Infrastructure businesses. Continued positive agriculture market fundamentals are driving demand for our irrigation products and technology solutions as elevated commodity prices, global drought conditions and ongoing food security concerns are all supporting market demand. I am very pleased with our ability to effectively manage our operations to best serve our customers and meet this broad-based demand. Our results further demonstrate the value of our long-term strategy led by sustainable growth initiatives across our businesses, operational excellence and price leadership."

Kaniewski added, "Reflecting on 2022, our full-year results exceeded the goals we set at the beginning of the year, despite a continued volatile environment, demonstrating the resiliency and relentless focus of our global team. We achieved record net sales of $4.3 billion and delivered record diluted earnings per share of $13.82 on an adjusted basis, an increase of 26.5% year-over-year. We significantly improved return on invested capital through strategic capital allocation and improved working capital performance, which also contributed to a substantial improvement in free cash flow. We continue to profitably grow and perform at a high level, leveraging the strength and sustainability of our Valmont business model. I am extremely proud of our team of more than 11,000 employees around the world and want to congratulate and thank them for their dedication, hard work, and execution. Together, we remain committed to providing our customers with vital infrastructure products and solutions to advance agricultural productivity with an unwavering focus on employee safety and increasing shareholder value."

**Fourth Quarter 2022 Segment Review**

**Infrastructure** (67.6% *of Net Sales)*

*Products and solutions to serve the infrastructure markets of utility, renewable energy, lighting, transportation, and telecommunications, and coatings services to preserve metal products*

Sales of $771.3 million grew 15.0% year-over-year with double-digit sales growth across all product lines, net of 2.7% unfavorable foreign currency translation impacts. Higher sales were driven by favorable pricing globally, higher volumes, notably in the Lighting and Transportation and Renewable Energy product lines, and sales from the ConcealFab acquisition.

Operating Income improved to $99.6 million or 13.0% of net sales compared to $77.3 million or 11.6% of net sales ($77.8 million or 11.6% adjusted<sup>1</sup>) in 2021, driven by favorable pricing and higher volumes.

**Agriculture** *(29.4% of Net Sales)*

*Center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture*

Sales of $335.1 million increased 21.1% year-over-year, with global sales growth led by higher average selling prices of irrigation equipment and higher volumes, primarily driven by continued strength in North America and Brazil, and higher sales of technology products and services.

Operating Income improved to $40.5 million, or 12.2% of net sales ($44.5 million or 13.4% adjusted<sup>1</sup>) compared to $28.6 million or 10.5% of net sales ($33.0 million or 12.1% adjusted<sup>1</sup>) in 2021. The benefit of higher average selling prices and additional volume leverage was partially offset by higher SG&A, including incremental R&D expense for technology investments.

**Other** *(3.0% of Net Sales)*

*Offshore wind energy structures business*

Sales of $33.3 million grew 44.1% year-over-year and operating income was $1.4 million compared to an operating loss of $31.3 million in 2021. As previously announced, the divestiture of the offshore wind energy structures business was completed in December 2022.

<sup>1</sup>Please see Reg G reconciliation to GAAP measures at end of document

------

**Balance Sheet, Liquidity, and Capital Allocation**

The Company generated full-year 2022 operating cash flows of $326.3 million through strong earnings and effectively managing working capital while supporting strong sales growth. At the end of 2022, cash and cash equivalents were $185.4 million. Valmont purchased $20.0 million of company stock in the fourth quarter and $81.4 million remains on the current authorization with no expiration.

**Providing 2023 Full Year Financial Outlook and Key Assumptions** 

Based on an unchanged positive outlook for underlying business growth across the portfolio that was highlighted last quarter, the Company is providing its 2023 full-year net sales and diluted earnings per share outlook and key assumptions for the year.

● Net Sales Growth (vs. PY) of 4% to 7%, which reflects the divestiture of the offshore wind energy structures business

● GAAP Diluted Earnings per Share of $14.70 to $15.25 ($15.35 to $15.90 adjusted <sup>1</sup>)

● Effective tax rate of 28% to 29%, primarily due to expected geographic mix of earnings

● Minimal expected foreign currency translation impact to net sales

● Capital expenditures expected to be in the range of $105 to $125 million to support strategic growth and digital transformation initiatives

● Continued elevated inflation, stabilizing raw material costs and ongoing R&D investments

Kaniewski continued, "We are excited and confident about the opportunity to drive multi-year revenue and profitability growth by capitalizing on the strong market drivers across our businesses and continuing to support our customers. These factors, along with our proven track record of execution and a backlog of $1.7 billion, give us confidence in our 2023 outlook. The long-term need for critical infrastructure investment globally is driving sustainable demand across our Infrastructure businesses. Favorable agriculture economics and market trends globally, a strong international project pipeline and increasing adoption of innovative technology solutions are providing momentum for our Agriculture business. Our balance sheet remains strong, giving us the flexibility to execute on our strategies. We enter this year from a position of strength with a talented team and are investing in the future to meet the needs of our customers and deliver value to our stakeholders."

A live audio discussion with Stephen G. Kaniewski, President and Chief Executive Officer, and Avner M. Applbaum, Executive Vice President and Chief Financial Officer, will be accessible by telephone on Thursday, February 23, 2023 at 8:00 a.m. CST by dialing 1-877-407-6184 or 1-201-389-0877 (no Conference ID needed), or via webcast by pointing browsers to this link: <u>Valmont Industries 4Q and Full Year 2022 Earnings Conference Call.</u> A slide presentation will simultaneously be available for download on the <u>Investors</u> page of valmont.com. A replay of the event can be accessed three hours after the call at the above link or by telephone at 1-877-660-6853 or 1-201-612-7415. Please use access code 13734761. The replay will be available through 10:59 p.m. CST on March 02, 2023.

**About Valmont Industries, Inc.** 

For over 75 years, Valmont<sup>®</sup> has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we're *Conserving Resources. Improving Life.*<sup>®</sup> at <u>valmont.com</u>.

<sup>1</sup>Please see Reg G reconciliation to GAAP measures at end of document

------

**Concerning Forward-Looking Statements**

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management's perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic effects on the Company's business and that of its customers and suppliers, risk factors described from time to time in Valmont's reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.

###

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS**

*(Dollars in thousands, except per share amounts)*

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Fourth Quarter** | **Year-to-Date** | **Year-to-Date** |
|  | **14 and 13 Weeks Ended** | **14 and 13 Weeks Ended** | **53 and 52 Weeks Ended** | **53 and 52 Weeks Ended** |
|  | **31-Dec-22** | **25-Dec-21** | **31-Dec-22** | **25-Dec-21** |
| &nbsp;&nbsp;Net sales | $1131516 | $963278 | $4345250 | $3501575 |
| &nbsp;&nbsp;Cost of sales | 832557 | 740994 | 3219026 | 2617686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 298959 | 222284 | 1126224 | 883889 |
| &nbsp;&nbsp;Selling, general, and administrative expenses | 189243 | 165034 | 692975 | 590608 |
| &nbsp;&nbsp;Impairment of goodwill and intangible assets |  | 6496 |  | 6496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 109716 | 50754 | 433249 | 286785 |
| &nbsp;&nbsp;Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (13256) | (11146) | (47534) | (42612) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 996 | 298 | 2015 | 1192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on investments (unrealized) | 932 | 364 | (3374) | 1920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from divestiture of offshore wind energy structures business | (33273) |  | (33273) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 4268 | 2501 | 12805 | 12798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | (40333) | (7983) | (69361) | (26702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings before income taxes | 69383 | 42771 | 363888 | 260083 |
| &nbsp;&nbsp;Income tax expense | 28156 | 15092 | 108687 | 61414 |
| &nbsp;&nbsp;Equity in earnings (loss) of nonconsolidated subsidiaries | (19) | 135 | (950) | (944) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings | 41208 | 27814 | 254251 | 197725 |
| &nbsp;&nbsp;Less: Earnings attributable to non-controlling interests | (876) | (958) | (3388) | (2095) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings attributable to Valmont Industries, Inc. | $**40332** | $**26856** | $**250863** | $**195630** |
| &nbsp;&nbsp;Average shares outstanding (000's) - Basic | **21319** | **21227** | **21311** | **21193** |
| &nbsp;&nbsp;Earnings per share - Basic | $**1.89** | $**1.27** | $**11.77** | $**9.23** |
| &nbsp;&nbsp;Average shares outstanding (000's) - Diluted | **21656** | **21523** | **21580** | **21493** |
| &nbsp;&nbsp;Earnings per share - Diluted | $**1.86** | $**1.25** | $**11.62** | $**9.10** |
| &nbsp;&nbsp;Cash dividends per share | $**0.55** | $**0.50** | $**2.20** | $**2.00** |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**SUMMARY OPERATING RESULTS**

*(Dollars in thousands)*

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Fourth Quarter** | **Year-to-Date** | **Year-to-Date** |
|  | **14 and 13 Weeks Ended** | **14 and 13 Weeks Ended** | **53 and 52 Weeks Ended** | **53 and 52 Weeks Ended** |
|  | **31-Dec-22** | **25-Dec-21** | **31-Dec-22** | **25-Dec-21** |
| &nbsp;&nbsp;Net sales |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Infrastructure | $771337 | $670481 | $2928419 | $2372100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agriculture | 335066 | 276757 | 1346672 | 1028717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 33272 | 23087 | 100219 | 123001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 1139675 | 970325 | 4375310 | 3523818 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Intersegment sales | (8159) | (7047) | (30060) | (22243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1131516 | $963278 | $4345250 | $3501575 |
| &nbsp;&nbsp;Operating Income (Loss) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Infrastructure | $99591 | $77253 | $354499 | $273598 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agriculture | 40484 | 28560 | 179263 | 137027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1445 | (31268) | 2259 | (40192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | (31804) | (23791) | (102772) | (83648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $109716 | $50754 | $433249 | $286785 |

---

The backlog of orders for the principal products manufactured and marketed was $1,656.4 million at the end of the 2022 fiscal year and $1,621.9 at the end of the 2021 fiscal year. An order is reported in our backlog upon receipt of a purchase order from the customer or execution of a sales order contract. We anticipate that most of the 2022 backlog of orders will be filled during fiscal year 2023. At year-end, the segments with backlog were as follows (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **12/31/2022** | **12/25/2021** |
| &nbsp;&nbsp;Infrastructure | $1339.1 | $1086.3 |
| &nbsp;&nbsp;Agriculture | 317.3 | 471.0 |
| &nbsp;&nbsp;Other |  | 64.6 |
|  | $1656.4 | $1621.9 |

---

*Valmont has aggregated its business segments into two global reportable segments as follows.*

***Infrastructure****: This segment consists of the manufacture and distribution of products and solutions to serve infrastructure markets of utility, renewable energy, lighting, transportation, and telecommunications, and coatings services to preserve metal products.*

***Agriculture****: This segment consists of the manufacture of center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture.*

*In addition to these two reportable segments, the Company had a business and related activities that is not more than 10% of consolidated sales, operating income, or assets. This includes the offshore wind energy structures business and was reported in the "Other" segment until its divestiture in 2022.*

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**SUMMARY OPERATING RESULTS**

*(Dollars in thousands)*

*(Unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fourteen weeks ended December 31, 2022** | **Fourteen weeks ended December 31, 2022** | **Fourteen weeks ended December 31, 2022** | **Fourteen weeks ended December 31, 2022** | **Fourteen weeks ended December 31, 2022** |
|  | | | | ***Intersegment*** | |
|  | <br>***Infrastructure*** | <br>***Agriculture*** | <br>***Other*** | ***Sales*** | <br>***Consolidated*** |
| &nbsp;&nbsp;Geographical market: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;North America | $588867 | $202560 | $— | $(5932) | $785495 |
| &nbsp;&nbsp;&nbsp;&nbsp;International | 182470 | 132506 | 33272 | (2227) | 346021 |
| &nbsp;&nbsp;Total | $771337 | $335066 | $33272 | $(8159) | $1131516 |
| &nbsp;&nbsp;Product line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission, Distribution, and Substation | $302444 | $— | $— | $— | $302444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lighting and Transportation | 239453 |  |  |  | 239453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Coatings | 92441 |  |  | (4032) | 88409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunications | 87577 |  |  |  | 87577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Renewable Energy | 49422 |  | 33272 | (2228) | 80466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Irrigation Equipment and Parts,  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding Technology |  | 302965 |  | (1899) | 301066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology Products and Services |  | 32101 |  |  | 32101 |
| &nbsp;&nbsp;Total | $771337 | $335066 | $33272 | $(8159) | $1131516 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Thirteen weeks ended December 25, 2021** | **Thirteen weeks ended December 25, 2021** | **Thirteen weeks ended December 25, 2021** | **Thirteen weeks ended December 25, 2021** | **Thirteen weeks ended December 25, 2021** |
|  | | | | ***Intersegment*** | |
|  | <br>***Infrastructure*** | <br>***Agriculture*** | <br>***Other*** | ***Sales*** | <br>***Consolidated*** |
| &nbsp;&nbsp;Geographical market: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;North America | $478019 | $150478 | $— | $(7047) | $621450 |
| &nbsp;&nbsp;&nbsp;&nbsp;International | 192462 | 126279 | 23087 |  | 341828 |
| &nbsp;&nbsp;Total | $670481 | $276757 | $23087 | $(7047) | $963278 |
| &nbsp;&nbsp;Product line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission, Distribution, and Substation | $266625 | $— | $— | $— | $266625 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lighting and Transportation | 216198 |  |  |  | 216198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Coatings | 77747 |  |  | (2752) | 74995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunications | 75697 |  |  |  | 75697 |
| &nbsp;&nbsp;&nbsp;&nbsp;Renewable Energy | 34214 |  | 23087 |  | 57301 |
| &nbsp;&nbsp;&nbsp;&nbsp;Irrigation Equipment and Parts,  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding Technology |  | 251258 |  | (4295) | 246963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology Products and Services |  | 25499 |  |  | 25499 |
| &nbsp;&nbsp;Total | $670481 | $276757 | $23087 | $(7047) | $963278 |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**SUMMARY OPERATING RESULTS**

*(Dollars in thousands)*

*(Unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fifty-three weeks ended December 31, 2022** | **Fifty-three weeks ended December 31, 2022** | **Fifty-three weeks ended December 31, 2022** | **Fifty-three weeks ended December 31, 2022** | **Fifty-three weeks ended December 31, 2022** |
|  | | | | ***Intersegment*** | |
|  | <br>***Infrastructure*** | <br>***Agriculture*** | <br>***Other*** |  ***Sales*** | <br>***Consolidated*** |
| &nbsp;&nbsp;Geographical market: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;North America | $2234339 | $766929 | $— | $(26248) | $2975020 |
| &nbsp;&nbsp;&nbsp;&nbsp;International | 694080 | 579743 | 100219 | (3812) | 1370230 |
| &nbsp;&nbsp;Total | $2928419 | $1346672 | $100219 | $(30060) | $4345250 |
| &nbsp;&nbsp;Product line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission, Distribution, and Substation | $1184660 | $— | $— | $— | $1184660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lighting and Transportation | 940462 |  |  |  | 940462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Coatings | 356707 |  |  | (15327) | 341380 |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunications | 320342 |  |  |  | 320342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Renewable Energy | 126248 |  | 100219 | (3346) | 223121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Irrigation Equipment and Parts,  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding Technology |  | 1231587 |  | (11387) | 1220200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology Products and Services |  | 115085 |  |  | 115085 |
| &nbsp;&nbsp;Total | $2928419 | $1346672 | $100219 | $(30060) | $4345250 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fifty-two weeks ended December 25, 2021** | **Fifty-two weeks ended December 25, 2021** | **Fifty-two weeks ended December 25, 2021** | **Fifty-two weeks ended December 25, 2021** | **Fifty-two weeks ended December 25, 2021** |
|  | | | | ***Intersegment*** | |
|  | <br>***Infrastructure*** | <br>***Agriculture*** | <br>***Other*** |  ***Sales*** | <br>***Consolidated*** |
| &nbsp;&nbsp;Geographical market: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;North America | $1724531 | $545574 | $— | $(22243) | $2247862 |
| &nbsp;&nbsp;&nbsp;&nbsp;International | 647569 | 483143 | 123001 |  | 1253713 |
| &nbsp;&nbsp;Total | $2372100 | $1028717 | $123001 | $(22243) | $3501575 |
| &nbsp;&nbsp;Product line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission, Distribution, and Substation | $935099 | $— | $— | $— | $935099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lighting and Transportation | 825923 |  |  |  | 825923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Coatings | 309647 |  |  | (10575) | 299072 |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunications | 238527 |  |  |  | 238527 |
| &nbsp;&nbsp;&nbsp;&nbsp;Renewable Energy | 62904 |  | 123001 |  | 185905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Irrigation Equipment and Parts,  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding Technology |  | 930858 |  | (11668) | 919190 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology Products and Services |  | 97859 |  |  | 97859 |
| &nbsp;&nbsp;Total | $2372100 | $1028717 | $123001 | $(22243) | $3501575 |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**CONDENSED CONSOLIDATED BALANCE SHEETS**

*(Dollars in thousands)*

*(unaudited)*

---

| | | |
|:---|:---|:---|
|  | **12/31/2022** | **12/25/2021** |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $185406 | $177232 |
| &nbsp;&nbsp;Accounts receivable, net | 604181 | 571593 |
| &nbsp;&nbsp;Inventories | 728762 | 728834 |
| &nbsp;&nbsp;Contract assets - costs and profits in excess of billings | 174539 | 142643 |
| &nbsp;&nbsp;Prepaid expenses and other assets | 87697 | 83646 |
| &nbsp;&nbsp;Refundable income taxes |  | 8815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1780585 | 1712763 |
| Property, plant, and equipment, net | 595578 | 598605 |
| Goodwill and other assets | 1180833 | 1135881 |
|  | $**3556996** | $**3447249** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;Current installments of long-term debt | $1194 | $4884 |
| &nbsp;&nbsp;Notes payable to banks | 5846 | 13439 |
| &nbsp;&nbsp;Accounts payable | 360312 | 347841 |
| &nbsp;&nbsp;Accrued expenses | 248320 | 253330 |
| &nbsp;&nbsp;Contract liabilities - billings in excess of costs and earnings | 172915 | 135746 |
| &nbsp;&nbsp;Income taxes payable | 3664 |  |
| &nbsp;&nbsp;Dividends payable | 11742 | 10616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 803993 | 765856 |
| Long-term debt, excluding current installments | 870935 | 947072 |
| Operating lease liabilities | 155469 | 147759 |
| Other long-term liabilities | 84887 | 172965 |
| Shareholders' equity | 1641712 | 1413597 |
|  | $**3556996** | $**3447249** |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(Dollars in thousands)*

*(unaudited)*

---

| | | |
|:---|:---|:---|
|  | **53 Weeks Ended**<br>**31-Dec-22** | **52 Weeks Ended**<br>**25-Dec-21** |
| *Cash flows from operating activities* |  |  |
| &nbsp;&nbsp;Net Earnings | $254251 | $197725 |
| &nbsp;&nbsp;Depreciation and amortization | 97167 | 92577 |
| &nbsp;&nbsp;Impairment of long-lived assets |  | 27911 |
| &nbsp;&nbsp;Contribution to defined benefit pension plan | (17155) | (1924) |
| &nbsp;&nbsp;Loss on sale of offshore wind energy structures business | 33273 |  |
| &nbsp;&nbsp;Change in working capital | (56092) | (284739) |
| &nbsp;&nbsp;Other | 14821 | 34388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 326265 | 65938 |
| *Cash flows from investing activities* |  |  |
| &nbsp;&nbsp;Purchase of property, plant, and equipment | (93288) | (107790) |
| &nbsp;&nbsp;Acquisitions | (39287) | (312500) |
| &nbsp;&nbsp;Other | 495 | 2982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (132080) | (417308) |
| *Cash flows from financing activities* |  |  |
| &nbsp;&nbsp;Proceeds from long-term borrowings | 253999 | 312485 |
| &nbsp;&nbsp;Principal payments on long-term borrowings | (336403) | (91313) |
| &nbsp;&nbsp;Net payments on short-term borrowings | (7577) | (20241) |
| &nbsp;&nbsp;Purchase of treasury shares | (40474) | (26100) |
| &nbsp;&nbsp;Dividends to noncontrolling interests | (714) |  |
| &nbsp;&nbsp;Purchase of noncontrolling interests | (7338) |  |
| &nbsp;&nbsp;Dividends paid | (45813) | (41412) |
| &nbsp;&nbsp;Other | 2415 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | (181905) | 133500 |
| Effect of exchange rates on cash and cash equivalents | (4106) | (5624) |
| Net change in cash and cash equivalents | 8174 | (223494) |
| Cash and cash equivalents - beginning of year | 177232 | 400726 |
| Cash and cash equivalents - end of period | $185406 | $177232 |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS**

**REGULATION G RECONCILIATION**

*(Dollars in thousands, except per share amounts)*

*(unaudited)*

*The non-GAAP tables below disclose the impact of the loss from the divestiture of the offshore wind energy structures business on fiscal 2022 results. Further, the non-GAAP tables below disclose the impact of intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on fiscal 2022 and 2021 results. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. The non-GAAP tables below also disclose the impact of the nonrecurring impairment of long-lived assets for the offshore wind energy structures business, a write off a receivable following arbitration of a commercial transaction from 2014, acquisition diligence, severance expenses on segment operating income and net earnings, as well as the impact of the U.K. tax rate change on net earnings (adjusts GAAP tax rate from 19.0% to 22.5%) on fiscal 2021 results. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourteen**<br>**weeks ended**<br>**December 31, 2022** | **Diluted**<br>**earnings per**<br>**share** | **Fifty-three**<br>**weeks ended**<br>**December 31, 2022** | **Diluted**<br>**earnings per**<br>**share** |
| Net earnings attributable to Valmont Industries, Inc. - as reported | $40332 | $1.86 | $250863 | $11.62 |
| Loss from divestiture of offshore wind energy structures business | 33273 | 1.54 | 33273 | 1.54 |
| Prospera intangible asset amortization | 1645 | 0.08 | 6580 | 0.30 |
| Stock-based compensation - Prospera | 2373 | 0.11 | 9896 | 0.46 |
| Total Adjustments, pre-tax<sup>1</sup> | 37291 | 1.72 | 49749 | 2.31 |
| Tax effect of adjustments<sup>2</sup> | (367) | (0.02) | (2473) | (0.11) |
| Net earnings attributable to Valmont Industries, Inc. - Adjusted<sup>1</sup> | $77256 | $3.57 | $298139 | $13.82 |
| Average shares outstanding (000's) - Diluted |  | 21656 |  | 21580 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Thirteen**<br>**weeks ended**<br>**December 25, 2021** | **Diluted**<br>**earnings per**<br>**share** | **Fifty-two**<br>**weeks ended**<br>**December 25, 2021** | **Diluted**<br>**earnings per**<br>**share** |
| Net earnings attributable to Valmont Industries, Inc. - as reported | $26856 | $1.25 | $195630 | $9.10 |
| Impairment of long-lived assets - offshore wind energy structures business | 27911 | 1.30 | 27911 | 1.30 |
| Prospera intangible asset amortization | 1470 | 0.07 | 3396 | 0.16 |
| Stock-based compensation - Prospera | 2928 | 0.14 | 5240 | 0.24 |
| Write-off of a receivable, pre-tax |  |  | 5545 | 0.26 |
| Acquisition diligence expense, pre-tax |  |  | 1120 | 0.05 |
| Severance expense, pre-tax | 2492 | 0.12 | 4052 | 0.19 |
| Total Adjustments, pre-tax<sup>1</sup> | 34801 | 1.62 | 47264 | 2.20 |
| Change in U.K. statutory tax rate |  |  | (2819) | (0.13) |
| Valuation allowance against offshore wind energy structures business' tax assets | 5076 | 0.24 | 5076 | 0.24 |
| Tax effect of adjustments<sup>2</sup> | (7982) | (0.37) | (10340) | (0.48) |
| Net earnings attributable to Valmont Industries, Inc. - Adjusted<sup>1</sup> | $58751 | $2.73 | $234811 | $10.92 |
| Average shares outstanding (000's) - Diluted |  | 21523 |  | 21493 |

---

 <sup>1</sup>*Earnings per share includes rounding*

 <sup>2</sup>*The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction.*

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***Fourteen weeks ended December 31, 2022*** | ***Fourteen weeks ended December 31, 2022*** | ***Fourteen weeks ended December 31, 2022*** | ***Fourteen weeks ended December 31, 2022*** | ***Fourteen weeks ended December 31, 2022*** |
| <br>**Operating Income Reconciliation** | **Infrastructure** | **Agriculture** | **Other** | **Corporate** | **Valmont** |
| Operating income - as reported | $99591 | $40484 | $1445 | $(31804) | $109716 |
| Stock-based compensation - Prospera |  | 2373 |  |  | 2373 |
| Prospera intangible asset amortization |  | 1645 |  |  | 1645 |
| Adjusted Operating Income | $99591 | $44502 | $1445 | $(31804) | $113734 |
| Net Sales - as reported | 765077 | 333167 | 33272 | NM | 1131516 |
| Operating Income as a % of Net Sales | 13.0% | 12.2% | 4.3% | NM | 9.7% |
| Adj. Operating Income as a % of Net Sales | 13.0%  | 13.4%  | 4.3%  | NM | 10.1% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***Thirteen weeks ended December 25, 2021*** | ***Thirteen weeks ended December 25, 2021*** | ***Thirteen weeks ended December 25, 2021*** | ***Thirteen weeks ended December 25, 2021*** | ***Thirteen weeks ended December 25, 2021*** |
| <br>**Operating Income Reconciliation** | **Infrastructure** | **Agriculture** | **Other** | **Corporate** | **Valmont** |
| Operating income - as reported | $77253 | $28560 | $(31268) | $(23791) | $50754 |
| Impairment of long-lived assets |  |  | 27911 |  | 27911 |
| Stock-based compensation |  | 2928 |  |  | 2928 |
| Prospera intangible asset amortization |  | 1470 |  |  | 1470 |
| Severance expense, pre-tax | 500 |  | 1992 |  | 2492 |
| Adjusted Operating Income | $77753 | $32958 | $(1365) | $(23791) | $85555 |
| Net Sales - as reported | 667728 | 272463 | 23087 | NM | 963278 |
| Operating Income as a % of Net Sales | 11.6% | 10.5% | (135.4)% | NM | 5.3% |
| Adj. Operating Income as a % of Net Sales | 11.6%  | 12.1%  | (5.9)%  | NM | 8.9%  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***Fifty-three weeks ended December 31, 2022*** | ***Fifty-three weeks ended December 31, 2022*** | ***Fifty-three weeks ended December 31, 2022*** | ***Fifty-three weeks ended December 31, 2022*** | ***Fifty-three weeks ended December 31, 2022*** |
| <br>**Operating Income Reconciliation** | **Infrastructure** | **Agriculture** | **Other** | **Corporate** | **Valmont** |
| Operating income - as reported | $354499 | $179263 | $2259 | $(102772) | $433249 |
| Stock-based compensation - Prospera |  | 9896 |  |  | 9896 |
| Prospera intangible asset amortization |  | 6580 |  |  | 6580 |
| Adjusted Operating Income | $354499 | $195739 | $2259 | $(102772) | $449725 |
| Net Sales - as reported | 2909746 | 1335285 | 100219 | NM | 4345250 |
| Operating Income as a % of Net Sales | 12.2% | 13.4% | 2.3% | NM | 10.0% |
| Adj. Operating Income as a % of Net Sales | 12.2%  | 14.7%  | 2.3%  | NM | 10.3% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***Fifty-two weeks ended December 25, 2021*** | ***Fifty-two weeks ended December 25, 2021*** | ***Fifty-two weeks ended December 25, 2021*** | ***Fifty-two weeks ended December 25, 2021*** | ***Fifty-two weeks ended December 25, 2021*** |
| <br>**Operating Income Reconciliation** | **Infrastructure** | **Agriculture** | **Other** | **Corporate** | **Valmont** |
| Operating income - as reported | $273598 | $137027 | $(40192) | $(83648) | $286785 |
| Impairment of long-lived assets |  |  | 27911 |  | 27911 |
| Prospera intangible asset amortization |  | 3396 |  |  | 3396 |
| Stock-based compensation - Prospera |  | 5240 |  |  | 5240 |
| Write-off of a receivable, pre-tax |  |  | 5545 |  | 5545 |
| Acquisition diligence expense, pre-tax |  |  |  | 1120 | 1120 |
| Severance expense, pre-tax | 500 | 910 | 2642 |  | 4052 |
| Adjusted Operating Income | $274098 | $146573 | $(4094) | $(82528) | $334049 |
| Net Sales - as reported | 2361524 | 1017050 | 123001 | NM | 3501575 |
| Operating Income as a % of Net Sales | 11.6% | 13.5% | (32.7)% | NM | 8.2% |
| Adj. Operating Income as a % of Net Sales | 11.6%  | 14.4%  | (3.3)%  | NM | 9.5%  |

---

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**REGULATION G RECONCILIATION OF ADJUSTED RETURN ON INVESTED CAPITAL**

*(Dollars in thousands)*

*(unaudited)*

*Return on Invested Capital is a non-GAAP measure. Accordingly, Invested Capital and Return on Invested Capital should not be considered in isolation or as a substitute for net earnings, cash flows from operations or other income or cash flow data prepared in accordance with GAAP, or as a measure of our operating performance or liquidity. The table below shows how Invested Capital and Return on Invested Capital are calculated from our income statement and balance sheet. Return on Invested Capital is calculated as Operating Income (after-tax) divided by average of beginning and ending Invested Capital. Invested Capital represents total assets minus total liabilities (excluding interest-bearing debt). Return on Invested Capital is one of our key operating ratios, as it allows investors to analyze our operating performance in light of the amount of investment required to generate our operating profit. Return on Invested Capital is also a measure used to determine management incentives.*

---

| | |
|:---|:---|
|  | **2022** |
| &nbsp;&nbsp;Operating income | $433249 |
| &nbsp;&nbsp;Adjusted effective tax rate<sup>1</sup> | 27.7% |
| &nbsp;&nbsp;Tax effect on operating income | (119872) |
| &nbsp;&nbsp;After-tax operating income | 313377 |
| &nbsp;&nbsp;Average invested capital | 2437232 |
| &nbsp;&nbsp;Return on invested capital | 12.9% |
| &nbsp;&nbsp;Adjusted operating income | 449725 |
| &nbsp;&nbsp;Adjusted effective tax rate<sup>1</sup> | 27.7% |
| &nbsp;&nbsp;Tax effect on operating income | (124431) |
| &nbsp;&nbsp;After-tax operating income | 325294 |
| &nbsp;&nbsp;Average invested capital | 2437232 |
| &nbsp;&nbsp;Adjusted return on invested capital | 13.3% |
| &nbsp;&nbsp;Total assets | 3556996 |
| &nbsp;&nbsp;Less: Accounts payable | (360312) |
| &nbsp;&nbsp;Less: Accrued expenses | (248320) |
| &nbsp;&nbsp;Less: Income taxes payable | (3664) |
| &nbsp;&nbsp;Less: Defined benefit pension asset | (24216) |
| &nbsp;&nbsp;Less: Deferred compensation | (30316) |
| &nbsp;&nbsp;Less: Other noncurrent liabilities | (13480) |
| &nbsp;&nbsp;Less: Dividends payable | (11742) |
| &nbsp;&nbsp;Less: Lease liability | (155469) |
| &nbsp;&nbsp;Less: Contract liability | (172915) |
| &nbsp;&nbsp;Less: Deferred tax liability | (41091) |
| &nbsp;&nbsp;Total invested capital | $2495471 |
| &nbsp;&nbsp;Beginning of year invested capital | $2378992 |
| &nbsp;&nbsp;Average invested capital | $2437232 |

---

<sup>1</sup>*The adjusted effective tax rate for 2022 excludes the $33,273 loss from divestiture of the offshore wind energy structures business which is not deductible for tax purposes. The effective tax rate including the loss on the divestiture is 29.9%.*

*Return on invested capital, as presented, may not be comparable to similarly titled measures of other companies.*

------

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

**REGULATION G RECONCILIATION OF FORECASTED GAAP AND ADJUSTED EARNINGS**

*(Dollars in thousands, except per share amounts)*

*The non-GAAP tables below disclose the impact on the range of estimated diluted earnings per share of the (1) amortization of the intangible asset (Prospera) and (2) stock-based compensation for Prospera employees. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.*

---

| | | | |
|:---|:---|:---|:---|
| <u>Reconciliation of Range of Net Earnings - 2023 Guidance</u> | **Low End** | **High End** | **Adjustments** |
| *Estimated net earnings - GAAP* | $*318900* | $*330800* |  |
| Prospera intangible asset (proprietary technology) amortization, pre-tax |  |  | 6700 |
| Stock-based compensation - Prospera, pre-tax |  |  | 10000 |
| Total pre-tax adjustments |  |  | 16700 |
| Estimated tax benefit from above expenses\* |  |  | (2500) |
| &nbsp;&nbsp;Total Adjustments, after-tax |  |  | $14200 |
| *Estimated net earnings - Adjusted* | $*333100* | $*345000* |  |
| **Diluted Earnings Per Share Range - GAAP** | $14.70 | $15.25 |  |
| **Diluted Earnings Per Share Range - Adjusted** | $15.35 | $15.90 |  |

---

------

*\* The tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction.*

###

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### Attached PDF Documents

**Attachment 1:** `vmi-20230222xex99d2.pdf`

![img-0.jpeg](img-0.jpeg)

# **Valmont Industries, Inc.**  
**Fourth Quarter and Full Year 2022**  
**Earnings Presentation**

February 23, 2023

© 2023 Valmont® Industries, Inc.

# Disclosure Regarding Forward-Looking Statements

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 that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries including the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic responses to the Company’s products and services, the overall market acceptance of such products and services, the integration of acquisitions and other factors disclosed in the Company’s periodic reports filed with the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks and actions, and policy changes of domestic and foreign governments. Consequently, such forward-looking statements should be regarded as the Company’s current plans, estimates and beliefs. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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![img-1.jpeg](img-1.jpeg)

# STEVE KANIEWSKI
PRESIDENT & CHIEF EXECUTIVE OFFICER

3 February 23, 2023 | Valmont Industries, Inc.

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# 4Q and Full Year 2022 Key Messages

01

4Q was a great end to the year as we grew revenue, improved margins and achieved key strategic milestones

02

The global Valmont team persevered through a volatile year and continues to deliver outstanding results

03

Valmont business model drives operational excellence across the organization

04

Strong end-market demand across both Infrastructure and Agriculture segments

05

Valmont is strategically built for sustainable performance and growth, positioned well for success in 2023 and beyond

![img-2.jpeg](img-2.jpeg)

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# 4Q 2022 Summary

TOTAL 4Q 2022 SALES

$1,131.5 M; + 18% Y/Y

- Record 4Q sales as strong broad-based demand drove higher volumes despite macroeconomic volatility
- 9th consecutive quarter of double-digit year-over-year sales growth
- Disciplined pricing strategies to capture the value delivered
- Delivering differentiated, sustainable solutions to our customers

INFRASTRUCTURE

$771.3 M; + 15% Y/Y

68% of Sales

- Double-digit sales growth for all product lines
- Higher sales were driven by favorable pricing globally, higher volumes, notably in the Lighting and Transportation and Renewable Energy product lines, and sales from the ConcealFab acquisition.
- Demand being driven by broad-based stimulus programs, continued 5G buildouts and densification efforts and the energy transition to renewables
- Increasing investments in infrastructure hardening and resiliency initiatives

![img-3.jpeg](img-3.jpeg)

AGRICULTURE

$335.1 M; + 21% Y/Y

29% of Sales

- Led by higher average selling prices of irrigation equipment and higher volumes, primarily driven by continued strength in North America and Brazil, and higher sales of technology products and services
- 2023 net farm income levels are projected to remain elevated and input costs are expected to stabilize or potentially decline
- Pressure on crop yields and expected stock levels due to persistent drought conditions, keeping global commodity prices elevated

![img-4.jpeg](img-4.jpeg)

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# Full Year 2022 Summary

TOTAL 2022 SALES

$4,345.3 M; + 24% Y/Y

- Record sales driven by deliberate pricing strategies, strong markets and focused execution
- Adding incremental volume through investments, operational efficiencies and lean methodologies
- Successfully navigated difficult labor market constraints and lingering pandemic impacts earlier in the year
- Year end global backlog of $1.7 billion, reflecting strong market demand

INFRASTRUCTURE

$2,928.4 M; + 23% Y/Y

67% of Sales

- Led by strong underlying demand across global markets for all product lines
- Demand is driven by broad-based stimulus programs, continued 5G buildouts and densification efforts and the energy transition to renewables
- Increasing investments in infrastructure hardening and resiliency initiatives

![img-5.jpeg](img-5.jpeg)

AGRICULTURE

$1,346.7 M; + 31% Y/Y

31% of Sales

- Led by sustained pricing and volume growth; Record year of sales in Brazil
- Pressure on crop yields and expected stock levels due to persistent drought conditions, keeping global commodity prices elevated
- Agriculture Technology sales grew ~18%, in line with our expectations

![img-6.jpeg](img-6.jpeg)

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# Sustainability in Action: New African Irrigation Projects

*Delivering proprietary solutions to solve sustainability challenges*

## The Challenge

Food security concerns are increasing due to the lingering effects of the pandemic, escalation of geo-political tensions and population growth.

## Our Solution

We secured an $85 million order to supply the region with irrigation equipment and industry-leading technologies that enable increased land productivity and reliable food production. Our global supply chain, unparalleled footprint, and localized dealer network uniquely position us to deliver solutions.

## Impact

Utilizing our proprietary remote monitoring and controls, this project will become one of the world's largest installations of connected pivots.

Addresses one of our identified
United Nations Sustainability
Development Goals

![img-7.jpeg](img-7.jpeg)

Uniquely Positioned to Deliver Technology that Helps Farmers Do More With Less

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![img-8.jpeg](img-8.jpeg)

# AVNER APPLBAUM
EVP & CHIEF FINANCIAL OFFICER

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# 4Q 2022 Financial Summary

SALES ($M)

+ 17.5%

![img-9.jpeg](img-9.jpeg)

OPERATING INCOME ($M)

GAAP
+ 116.2%

![img-10.jpeg](img-10.jpeg)

DILUTED EPS

GAAP
+ 48.8%

![img-11.jpeg](img-11.jpeg)

- Mid-single-digit volume growth on strong demand across the portfolio and a relentless focus on price management; 9th consecutive quarter of double-digit Y/Y sales growth
- Operating margin improved to 9.7% (10.1% adjusted1) reflecting execution of our disciplined pricing strategies, higher volumes, and improved fixed-cost leverage
- EPS growth driven by higher operating income, partially offset by higher tax expense due to changes in the geographic mix of earnings

1 Please see Reg G reconciliation to GAAP measures at end of document.

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# 4Q 2022 Results | Infrastructure

SALES ($M)

+ 15.0%

![img-12.jpeg](img-12.jpeg)

OPERATING INCOME ($M)

GAAP
+28.9%

![img-13.jpeg](img-13.jpeg)

SALES ($M)

2021 2022 %

| Transmission, Distribution, and Substation (TD&S) | $266.6 | $302.4 | +13% |
| --- | --- | --- | --- |
| Lighting and Transportation (L&T) | 216.2 | 239.5 | +11% |
| Coatings | 77.7 | 92.4 | +19% |
| Telecommunications | 75.7 | 87.6 | +16% |
| Renewable Energy | 34.2 | 49.4 | +44% |

- Double-digit sales growth across all product lines, net of 2.7% FX headwind, on strong demand and favorable pricing globally and higher volumes notably in the Lighting and Transportation and Renewable Energy product lines, and sales from the ConcealFab acquisition
- Operating margin improved to 13.0%, due to the advancement of our growth strategy and deliberate focus on products and services that generate higher returns and deliver exceptional value

1 Please see Reg G reconciliation to GAAP measures at end of document.

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# 4Q 2022 Results | Agriculture

SALES ($M)

+ 21.1%

![img-0.jpeg](img-0.jpeg)

OPERATING INCOME ($M)

GAAP
+ 41.8%

![img-1.jpeg](img-1.jpeg)

Adjusted1
+ 35.0%

SALES ($M)

2021

2022

%

| North American Irrigation | $150.5 | $202.6 | +35% |
| --- | --- | --- | --- |
| International Irrigation | 126.3 | 132.5 | +5% |
| Agricultural Technology2 | 25.5 | 32.1 | +26% |

- Global sales growth led by higher average selling prices of irrigation equipment and higher volumes, primarily driven by continued strength in North America and Brazil and higher sales of technology products and solutions
- Operating margins improved due to the benefit of higher average selling prices and additional volume leverage, partially offset by higher SG&A, including incremental R&D expense for technology investments

1 Please see Reg G reconciliation to GAAP measures at end of document. 2 Technology sales are reported as a subset of total Agriculture segment sales.

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# Full Year Cash Flow Highlights

| ($M) | YTD 12/31/22 |
| --- | --- |
| Net Cash Flows from Operating Activities | $326 |
| Net Cash Flows from Investing Activities | (132) |
| Net Cash Flows from Financing Activities | (182) |
| Net Cash Flows from Operating Activities | $326 |
| Purchase of Property, Plant, & Equipment | (93) |
| Free Cash Flows | $233 |

![img-2.jpeg](img-2.jpeg)

## FCF Improvement Driven By Diligent Working Capital Management

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# Balanced Approach to Capital Allocation

2022 Full-Year Capital Deployment: $218M

GROWING OUR BUSINESS

RETURNING CASH TO SHAREHOLDERS

$93M

Capital Expenditures

$39M

Acquisitions

$40M

Share Repurchases

$46M

Dividends

- Investments to support strategic growth initiatives and Industry 4.0 advanced manufacturing
- Approximately $30.0 million for strategic investments including a new concrete utility structures facility in Bristol, Indiana and irrigation capacity expansions in Brazil and Dubai

- Acquired a majority interest in ConcealFab, accelerating the global telecommunications growth strategy
- Targeting high growth opportunities in end markets with favorable and global long-term demand trends
- Returns exceeding cost of capital within 3 years

- Opportunistic approach, supported by free cash flow
- ~$81M remains on current authorization

- 10% dividend increase announced February 2022
- Payout ratio target: 22% of earnings
- Current payout: ~16%

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# Strong Balance Sheet and Liquidity

As of December 31, 2022

| Cash | $185 M | Available Credit under Revolving Credit Facility 2 | $659 M |
| --- | --- | --- | --- |
| Total Long-Term Debt | $871 M | Cash | $185 M |
| Shareholders' Equity | $1,642 M | Total Available Liquidity | $844 M |
| Total Debt to Adj. EBITDA 1 | 1.5 x |  |  |

![img-3.jpeg](img-3.jpeg)

- ▶ **Long-term debt** mostly fixed-rate, with long-dated maturities to 2044 and 2054
- ▶ Total Debt to Adjusted EBITDA remains within our **desired range of 1.5 to 2.5 times**
- ▶ **Capital allocation strategy has not changed**, focused on strategically supporting business growth

$^{1}$See slide 33 for calculation of Adjusted EBITDA and Leverage Ratio. $^{2}$ $800M Total Revolver less borrowings and Standby LC's of $141M.

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# Full Year 2023 Outlook and Key Assumptions

4% - 7%

Increase in Net Sales Y/Y

$14.70 - $15.25

GAAP Diluted EPS

$15.35 - $15.90

Adj. Diluted EPS1

KEY ASSUMPTIONS

- 2023 full-year outlook in line with preliminary indications given in October 2022, based on an unchanged positive outlook for underlying business growth across the portfolio
- Full-year mid-to-high single-digit volume growth and price growth in the low single digits
- Minimal foreign currency translation impact on net sales growth
- Capital expenditures to be in the range of $105 - $125 million to support strategic growth initiatives
- Full-year tax rate of 28 - 29% due to the expected mix of earnings
- Continued elevated inflation, stabilizing raw material costs and ongoing R&D investments

1 Please see Reg G reconciliation to GAAP measures at end of document.

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# Fundamental Market Drivers Remain Resilient

## INFRASTRUCTURE

- Long-term need for critical infrastructure investment globally, supported by current and future stimulus
- Ongoing demand and necessity for renewables, grid hardening and resiliency and load growth in North America utility markets
- Ongoing investment in sustainable transportation infrastructure, including lighting systems and long bridge systems
- Increased number of economies actively fighting costs of corrosion will drive need to extend life of steel products globally over long term
- Rapid acceleration of 5G network deployment and carriers' investments support macro buildouts in suburban and rural communities
- Increasing demand for integrated smart technology solutions

## AGRICULTURE

- Favorable market conditions, including elevated commodity prices and positive farmer sentiment are leading to increasing demand for irrigation equipment and technology solutions globally
- Food security with a growing population and continued geo-political concerns are driving international governments' investment in agriculture
- Growth in technology adoption led by growers' increasing demand for connected crop management and advanced analytics to reduce input costs, increase land productivity and minimize farm labor costs
- Helping customers meet their own ESG initiatives through ag solar solutions

Backlog of $1.7B at the End of 2022

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# Summary

1

1. **Performing well with resilient end-market demand** across global Infrastructure and Agriculture markets with long-term favorable market drivers

2

2. **Delivering on our commitments** to our customers by exhibiting our core values and adhering to our Valmont business model to improve productivity and drive financial results

3

3. **Investing in our employees and technology** to drive innovative new products and services, and build upon the strength of our operation excellence framework

4

4. **Disciplined capital allocation** allocating capital to high-growth strategic investments while returning capital to shareholders through dividends and share repurchases

Poised for Sustainable Growth and Performance to Drive Stakeholder Value Well into the Future

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# Q&A

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# APPENDIX

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# 4Q 2022 and FY 2022 Financial Summary

$M, except for per share amounts

| Net Sales | 2022 | 2021 | Change |
| --- | --- | --- | --- |
| Infrastructure | $771.3 | $670.5 | 15.0% |
| Agriculture | 335.1 | 276.8 | 21.1% |
| Other | 33.3 | 23.1 | 44.1% |
| Intersegment Sales 1 | (8.2) | (7.1) | NM |
| Net Sales | $1,131.5 | $963.3 | 17.5% |
| Operating Income | $109.7 | $50.8 | 116.2% |
| Adjusted Operating Income 2 | $113.7 | $85.6 | 32.9% |
| Net Earnings | $40.3 | $26.9 | 50.2% |
| Adjusted Net Earnings 2 | $77.3 | $58.8 | 31.5% |
| Diluted Earnings Per Share (EPS) | $1.86 | $1.25 | 48.8% |
| Adjusted Diluted Earnings Per Share (EPS) 2 | $3.57 | $2.73 | 30.8% |

| FY 2022 | FY 2021 | Change |
| --- | --- | --- |
| $2,928.4 | $2,372.1 | 23.5% |
| 1,346.7 | 1,028.7 | 30.9% |
| 100.2 | 123.0 | -18.5% |
| (30.0) | (22.2) | NM |
| $4,345.3 | $3,501.6 | 24.1% |
| $433.2 | $286.8 | 51.1% |
| $449.7 | $334.0 | 34.6% |
| $250.9 | $195.6 | 28.2% |
| $298.1 | $234.8 | 27.0% |
| $11.62 | $9.10 | 27.7% |
| $13.82 | $10.92 | 26.6% |

$^{1}$Includes rounding; FY 4Q 2022 14 weeks and FY 4Q 2021 13 weeks; FY 2022 53 weeks and FY 2021 52 weeks

$^{2}$Please see Reg G reconciliation to GAAP measures at end of document.

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# U.S. Electric Utilities Capital Expenditures

![img-0.jpeg](img-0.jpeg)

Chart represents total company spending of U.S. Investor-Owned Electric Utilities, consolidated at the parent or appropriate holding company.

Note: At the industry level, CapEx tends to be overestimated for the current, or first year's projection and underestimated for the two following years. Although the chart indicates investments are trending down in 2024 relative to 2023 levels, we expect a continued level of elevated spending after accounting for the historical trend of over- and underestimation.

Source: EEI Finance Department, member company reports, and S&P Global Market Intelligence (updated Sept 2022).

1

EEI

Source: EEI Finance Department, member company reports, and S&P Global Market Intelligence (updated Sept 2022).

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# Infrastructure Investment and Jobs Act (IIJA)

Infrastructure Investment and Jobs Act Spending Breakdown (In Order - Most to Least)

![img-1.jpeg](img-1.jpeg)

- Previously-Passed Transportation Funding | $650B
- Roads, Bridges and Related Programs | $111B
- Energy, Power and Electric Grid Reliability | $107.5B
- Freight and Passenger Rail | $66B
- Broadband | $65B
- Water and Wastewater Infrastructure | $55B
- Public Transportation | $39.2B
- Airports | $25B
- Natural Disaster Prevention and Mitigation | $23.3B
- Cleaning-Up Abandoned Sites | $21B
- Army Corps of Engineers | $16.7B
- Highway and Pedestrian Safety | $11B
- Ports and Coast Guard | $7.8B
- Cybersecurity and other Infrastructure Programs | $10.11B

Source: Grassley.senate.gov

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# 5G Adoption and Capex Spend Forecasts

The transition to 5G is occurring at varying speeds, with pioneer markets racing ahead

5G adoption in 2025 (percentage of connections)

![img-2.jpeg](img-2.jpeg)

Mobile operators will invest $620 billion in their networks between 2022 and 2025, of which 85% will be on 5G

Capex (billion), 2022-2025

![img-3.jpeg](img-3.jpeg)

Source: GSM Association

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# U.S. Net Cash Farm Income by Year

U.S. net farm income and net cash farm income, inflation adjusted, 2002-2023F

![img-4.jpeg](img-4.jpeg)

Note: F = forecast. Data for 2022 and 2023 are forecasts. Values are adjusted for inflation using the U.S. Bureau of Economic Analysis Gross Domestic Product Price Index (BEA API series code: A191RG) rebased to 2023 by USDA, Economic Research Service.
Source: USDA, Economic Research Service, Farm Income and Wealth Statistics.
Data as of February 7, 2023.

Direct Government payments to U.S. farm producers, 2019-23F

![img-5.jpeg](img-5.jpeg)

F = forecast.

1/ Includes payments from the Coronavirus Food Assistance Program and other USDA pandemic assistance for producers.

2/ Includes forgiven loans from the Paycheck Protection Program.

3/ Includes Price Loss Coverage, Agriculture Risk Coverage, loan deficiency payments (excluding grazeout payments), marketing loan gains, certificate exchange gains, and dairy payments.

Source: USDA, Economic Research Service, Farm Income and Wealth Statistics.
Data as of February 7, 2023.

Source: USDA (February 7, 2023)

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# U.S. Drought Condition

![img-6.jpeg](img-6.jpeg)

## Intensity

- None
- D0 (Abnormally Dry)
- D1 (Moderate Drought)
- D2 (Severe Drought)
- D3 (Extreme Drought)
- D4 (Exceptional Drought)
- No Data

Source: Drought Monitor (February 14, 2023)

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# Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

*The non-GAAP tables below disclose the impact of the loss from divestiture of the offshore wind energy structures business on fiscal 2022 results. Further, the non-GAAP tables below disclose the impact of intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on fiscal 2022 results. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.*

|  | Fourteen weeks ended December 31, 2022 | Diluted earnings per share | Fifty-three weeks ended December 31, 2022 | Diluted earnings per share |
| --- | --- | --- | --- | --- |
| Net earnings attributable to Valmont Industries, Inc. - as reported | $40,332 | $1.86 | $250,863 | $11.62 |
| Loss from divestiture of offshore wind energy structures business | 33,273 | 1.54 | 33,273 | 1.54 |
| Prospera intangible asset amortization | 1,645 | 0.08 | 6,580 | 0.30 |
| Stock-based compensation - Prospera | 2,373 | 0.11 | 9,896 | 0.46 |
| Total Adjustments, pre-tax 1 | 37,291 | 1.72 | 49,749 | 2.31 |
| Tax effect of adjustments 2 | (367) | (0.02) | (2,473) | (0.11) |
| Net earnings attributable to Valmont Industries, Inc. - Adjusted 1 | $77,256 | $3.57 | $298,139 | $13.82 |
| Average shares outstanding (000's) - Diluted |  | 21,656 |  | 21,580 |

$^{1}$Earnings per share includes rounding

$^{2}$The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction

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# Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

| Operating Income Reconciliation | Fourteen weeks ended December 31, 2022 |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Infrastructure | Agriculture | Other | Corporate | Valmont |
| Operating income - as reported | $99,591 | $40,484 | $1,445 | $(31,804) | $109,716 |
| Stock-based compensation - Prospera | - | 2,373 | - | - | 2,373 |
| Prospera intangible asset amortization | - | 1,645 | - | - | 1,645 |
| Adjusted Operating Income | $99,591 | $44,502 | $1,445 | $(31,804) | $113,734 |
| Net Sales - as reported | 765,077 | 333,167 | 33,272 | NM | 1,131,516 |
| Operating Income as a % of Net Sales | 13.0% | 12.2% | 4.3% | NM | 9.7% |
| Adjusted Operating Income as a % of Net Sales | 13.0% | 13.4% | 4.3% | NM | 10.1% |

| Operating Income Reconciliation | Fifty-three weeks ended December 31, 2022 |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Infrastructure | Agriculture | Other | Corporate | Valmont |
| Operating income - as reported | $354,499 | $179,263 | $2,259 | $(102,772) | $433,249 |
| Stock-based compensation - Prospera | - | 9,896 | - | - | 9,896 |
| Prospera intangible asset amortization | - | 6,580 | - | - | 6,580 |
| Adjusted Operating Income | $354,499 | $195,739 | $2,259 | $(102,772) | $449,725 |
| Net Sales - as reported | 2,909,746 | 1,335,285 | 100,219 | NM | 4,345,250 |
| Operating Income as a % of Net Sales | 12.2% | 13.4% | 2.3% | NM | 10.0% |
| Adjusted Operating Income as a % of Net Sales | 12.2% | 14.7% | 2.3% | NM | 10.3% |

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# Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

*The non-GAAP tables below disclose the impact of intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on fiscal 2021 results. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. The non-GAAP tables below also disclose the impact of the nonrecurring impairment of long-lived assets for the offshore wind energy structures business, a write off a receivable following arbitration of a commercial transaction from 2014, acquisition diligence, and severance expenses on segment operating income and net earnings as well as the impact of the U.K. tax rate change on net earnings (adjusts GAAP tax rate from 19.0% to 22.5%) on fiscal 2021 results. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.*

|  | Thirteen weeks ended December 25, 2021 | Diluted earnings per share | Fifty-two weeks ended December 25, 2021 | Diluted earnings per share |
| --- | --- | --- | --- | --- |
| Net earnings attributable to Valmont Industries, Inc. - as reported | $26,856 | $1.25 | $195,630 | $9.10 |
| Impairment of long-lived assets - Offshore structures (SM) | 27,911 | 1.30 | 27,911 | 1.30 |
| Prospera intangible asset amortization | 1,470 | 0.07 | 3,396 | 0.16 |
| Stock-based compensation - Prospera | 2,928 | 0.14 | 5,240 | 0.24 |
| Write-off of a receivable, pre-tax | - | - | 5,545 | 0.26 |
| Acquisition diligence expense, pre-tax | - | - | 1,120 | 0.05 |
| Severance expense, pre-tax | 2,492 | 0.12 | 4,052 | 0.19 |
| Total Adjustments, pre-tax 1 | 34,801 | 1.62 | 47,264 | 2.20 |
| Change in U.K. statutory tax rate | - | - | (2,819) | (0.13) |
| Valuation allowance against Offshore structures (SM) tax assets | 5,076 | 0.24 | 5,076 | 0.24 |
| Tax effect of adjustments 2 | (7,982) | (0.37) | (10,340) | (0.48) |
| Net earnings attributable to Valmont Industries, Inc. - Adjusted 1 | $58,751 | $2.73 | $234,811 | $10.92 |
| Average shares outstanding (000's) - Diluted |  | 21,523 |  | 21,493 |

$^{1}$Earnings per share includes rounding

$^{2}$The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction

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# Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

| Operating Income Reconciliation | Thirteen weeks ended December 25, 2021 |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Infrastructure | Agriculture | Other | Corporate | Valmont |
| Operating income - as reported | $77,253 | $28,560 | $(31,268) | $(23,791) | $50,754 |
| Impairment of long-lived assets | - | - | 27,911 | - | 27,911 |
| Stock-based compensation | - | 2,928 | - | - | 2,928 |
| Prospera intangible asset amortization | - | 1,470 | - | - | 1,470 |
| Severance expense, pre-tax | 500 | - | 1,992 | - | 2,492 |
| Adjusted Operating Income | $77,753 | $32,958 | $(1,365) | $(23,791) | $85,555 |
| Net Sales - as reported | 667,728 | 272,463 | 23,087 | NM | 963,278 |
| Operating Income as a % of Net Sales | 11.6% | 10.5% | (135.4) % | NM | 5.3% |
| Adjusted Operating Income as a % of Net Sales | 11.6% | 12.1% | (5.9) % | NM | 8.9% |

| Operating Income Reconciliation | Fifty-two weeks ended December 25, 2021 |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Infrastructure | Agriculture | Other | Corporate | Valmont |
| Operating income - as reported | $273,598 | $137,027 | (40,192) | $(83,648) | $286,785 |
| Impairment of long-lived assets | - | - | 27,911 | - | 27,911 |
| Prospera intangible asset amortization | - | 3,396 | - | - | 3,396 |
| Stock-based compensation - Prospera | - | 5,240 | - | - | 5,240 |
| Write-off of a receivable, pre-tax | - | - | 5,545 | - | 5,545 |
| Acquisition diligence expense, pre-tax | - | - | - | 1,120 | 1,120 |
| Severance expense, pre-tax | 500 | 910 | 2,642 | - | 4,052 |
| Adjusted Operating Income | $274,098 | $146,573 | $(4,094) | $(82,528) | $334,049 |
| Net Sales - as reported | 2,361,524 | 1,017,050 | 123,001 | NM | 3,501,575 |
| Operating Income as a % of Net Sales | 11.6% | 13.5% | (32.7) % | NM | 8.2% |
| Adjusted Operating Income as a % of Net Sales | 11.6% | 14.4% | (3.3) % | NM | 9.5% |

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# Regulation G Reconciliation of Forecasted GAAP and Adjusted Earnings
(Dollars in thousands, except per share amounts)

The non-GAAP tables below disclose the impact on the range of estimated diluted earnings per share of the (1) amortization of the intangible asset (Prospera) and (2) stock-based compensation for Prospera employees. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.

| Reconciliation of Range of Net Earnings - 2022 Guidance | Low End | High End | Adjustment |
| --- | --- | --- | --- |
| Estimated net earnings - GAAP | $318,900 | $330,800 |  |
| Prospera intangible asset (proprietary technology) amortization, pre-tax |  |  | 6,700 |
| Stock-based compensation - Prospera, pre-tax |  |  | 10,000 |
| Total pre-tax adjustments |  |  | 16,700 |
| Estimated tax benefit from above expenses* |  |  | (2,500) |
| Total Adjustments, after-tax |  |  | $14,200 |
| Estimated net earnings - Adjusted | $333,100 | $345,000 |  |
| Diluted Earnings Per Share Range - GAAP | $14.70 | $15.25 |  |
| Diluted Earnings Per Share Range - Adjusted | $15.35 | $15.90 |  |

* The tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction.

30 February 23, 2023 | Valmont Industries, Inc.

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# 2013-2022 Historical Free Cash Flow$^{1,2}$

| ($M) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net cash flows from operating activities | $396.4 | $174.1 | $272.3 | $232.8 | $133.1 | $153.0 | $307.6 | $316.3 | $65.9 | $326.3 |
| Net cash flows from investing activities | (131.7) | (256.9) | (48.2) | (53.0) | (49.6) | (155.4) | (168.1) | (104.0) | (417.3) | (132.1) |
| Net cash flows from financing activities | (37.4) | (136.8) | (32.0) | (95.2) | (32.0) | (162.1) | (98.9) | (173.8) | 133.5 | (181.9) |
| Net cash flows from operating activities | $396.4 | $174.1 | $272.3 | $232.8 | $133.1 | $153.0 | $307.6 | $316.3 | $65.9 | $326.3 |
| Purchase of plant, property, and equipment | (106.8) | (73.0) | (45.5) | (57.9) | (55.3) | (72.0) | (97.4) | (106.7) | (107.8) | (93.3) |
| Free cash flows | 289.7 | 101.1 | 226.8 | 174.9 | 77.8 | 81.0 | 210.2 | 209.6 | (41.9) | 233.0 |
| Net earnings attributed to Valmont Industries, Inc. | $278.5 | $183.9 | $40.1 | $175.5 | $120.5 | $101.8 | $146.4 | $140.7 | $195.6 | $250.9 |
| Adjusted free cash flow net earnings attributed to Valmont Industries, Inc. | $295.1 | $187.7 | $131.7 | $139.9 | $162.7 | $130.4 | N/A | $159.8 | $222.3 | $284.2 |
| Free Cash Flow Conversion - GAAP | 1.04 | 0.55 | 5.66 | 1.00 | 0.65 | 0.80 | 1.44 | 1.49 | (0.21) | 0.93 |
| Free Cash Flow Conversion - Adjusted | 0.98 | 0.53 | 1.71 | 1.25 | 0.48 | 0.62 | N/A | 1.31 | (0.19) | 0.82 |
| 1) Reconciliation of Net Earnings to Adjusted Figures |  |  |  |  |  |  |  |  |  |  |
| Net earnings attributed to Valmont Industries, Inc. | $278.5 | $183.9 | $40.1 | $175.5 | $120.5 | $101.8 | $146.4 | $140.7 | $195.6 | $250.9 |
| Loss from divestiture of offshore wind energy structures business | - | - | - | - | - | - | - | - | - | 33.3 |
| Change in valuation allowance against deferred tax assets | - | - | 7.1 | (20.7) | 41.9 | - | - | - | 5.0 | - |
| Impairment of long-lived assets | 12.2 | - | 61.8 | 1.1 | - | 28.6 | - | 19.1 | 21.7 | - |
| Reversal of contingent liability | - | - | - | (16.6) | - | - | - | - | - | - |
| Other non-recurring expenses (non-cash) | - | - | 18.1 | - | - | - | - | - | - | - |
| Deconsolidation of Delta EMD, after-tax and NCI | 4.4 | - | - | - | - | - | - | - | - | - |
| Noncash loss from Delta EMD shares | - | 3.8 | 4.6 | 0.6 | 0.2 | - | - | - | - | - |
| Adjusted free cash flow net earnings attributed to Valmont Industries, Inc. | $295.1 | $187.7 | $131.7 | $139.9 | $162.7 | $130.4 | $146.4 | $159.8 | $222.3 | $284.2 |

10 Year Average FCF is $156M; Last 5 Years Has Averaged $138M

$^{1}$ Adjusted earnings for purposes of calculating FCF conversion may not agree to the adjusted net earnings. The difference is due to non-recurring expenses which were settled in cash in the year of occurrence as part of net cash flows from operating activities.

$^{2}$ We use the non-GAAP measure of FCF, which we define as GAAP net cash flows from operating activities reduced by capex. We believe that FCF is a useful performance measure for management and useful to investors as the basis for comparing our performance with other companies. Our measure of FCF may not be directly comparable to similar measures used by other companies.

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# Strong Free Cash Flow throughout the Cycle

2013 - 2022 Free Cash Flow1 ($M)

Years of rapid raw material cost inflation

![img-0.jpeg](img-0.jpeg)

Historical FCF Conversion by Year1

| GAAP | 1.04X | 0.55X | 5.66X | 1.00X | 0.65X | 0.80X | 1.44X | 1.49X | (0.21X) | 0.93X |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Adj. | 0.98X | 0.53X | 1.71X | 1.25X | 0.48X | 0.62X | N/A | 1.31X | (0.19X) | 0.82X |

1 We use the non-GAAP measure of FCF, which we define as GAAP net cash flows from operating activities reduced by capex. We believe that FCF is a useful performance measure for management and useful to investors as the basis for comparing our performance with other companies. Our measure of FCF may not be directly comparable to similar measures used by other companies.

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# Calculation of Adjusted EBITDA and Leverage Ratio

Certain of our debt agreements contain covenants that require us to maintain certain coverage ratios. Our Debt/Adjusted EBITDA may not exceed 3.5X Adjusted EBITDA (or 3.75X Adjusted EBITDA after certain material acquisitions) of the prior four quarters. See 'Leverage Ratio' below.

|  | ($000s) TTM 12/31/2022 |
| --- | --- |
| Net earnings attributable to Valmont Industries, Inc. | $250,863 |
| Interest expense | 47,534 |
| Income tax expense | 108,687 |
| Stock-based compensation | 41,850 |
| Depreciation and amortization expense | 97,167 |
| EBITDA | 546,101 |
| Loss on divestiture of offshore wind energy structures business | 33,273 |
| Adjusted EBITDA - last four quarters | $579,374 |
| Interest-bearing debt | $877,975 |
| Less: cash and cash equivalents in excess of $50 million | 135,406 |
| Net indebtedness | $742,569 |
| Net indebtedness | $742,569 |
| Leverage ratio | 1.28 |
| Interest-bearing debt | $877,975 |
| Total debt to adjusted EBITDA | 1.52 |

33 February 23, 2023 | Valmont Industries, Inc.

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