Gatx Corporation · NYSE:GATX
Gatx — BB&T Capital Markets 2008 Transportation Conference
16 slides from Gatx's conference presentation, Feb 14, 2008
Slide 1: GATX Corporation BB&T Capital Markets 2008 Transportation Conference
GATX Corporation BB&T Capital Markets 2008 Transportation Conference February 14, 2008
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and t
Slide 3: GATX Corporation
GATX Corporation GATX Corporation provides lease financing and related services to customers operating rail, marine and other targeted assets GATX also: Provides an attractive risk-adjusted return to shareholders Is an excellent operator focused on providing quality services to customers Provides cl
Slide 4: GATX Corporate History
GATX Corporate History Founded in 1898 as a railcar lessor Listed on NYSE in 1916 Initiated quarterly dividends in 1919 Paid without interruption since Recently increased 13% Railcar leasing remains the foundation of GATX
Slide 5: Business Profile
Business Profile Rail Specialty ASC Other Assets 0.85 0.09 0.05 0.01 Strengths & Keys to Success GATX leases long-lived, widely- used assets Railcars - Marine Vessels Locomotives - Industrial Equipment Assets that GATX uniquely understands Assets requiring valuable services that GATX provides Rail 8
Slide 6: Rail
Rail GATX's largest, most valuable franchise One of the largest railcar and locomotive lessors in North America and the world A leading North American tank car lessor Own, manage or have interest in about 165,000 railcars worldwide Expanding European presence with approximately 42,000 cars Service-i
Slide 7: GATX Worldwide Fleet
GATX Worldwide Fleet General Service Tank Cars High Pressure Tank Cars Specialty Covered Hoppers Gravity Covered Hoppers Open Hoppers & Gondolas Other GATX Worldwide Owned Fleet (excl Spf) 0.51 0.1 0.12 0.12 0.09 0.06 GATX Worldwide Owned Fleet 132,000 railcars as of 12/31/07 Tank Cars 61% (Approxim
Slide 8: Rail Market Environment & GATX Market Environment
Rail Market Environment & GATX Market Environment Industry-wide order backlog high Car prices high by historical standards, but declining in certain types Rail traffic levels showing some weakness GATX Fleet utilization solid Lease rates currently favorable vs. expiring rates Extended lease term on
Slide 9: Specialty
Specialty Marine Industrial Equipment Aircraft Engines Other Specialty Owned Portfolio 0.47 0.24 0.06 0.23 Specialty focuses primarily on marine and industrial equipment Marine: co-investments primarily in new builds with blue-water shipping pool operators Industrial Equipment Finance: provides tail
Slide 10: Marine Blue Water Joint Ventures
Marine Blue Water Joint Ventures Partners are shipping pool operators with decades of shipping experience, reputations for outstanding service, and shared investment philosophy Our jointly-owned vessels are a small part of the overall pool of vessels operated by our partners Overlap with GATX's rail
Slide 11: Industrial Equipment Finance (IEF)
Industrial Equipment Finance (IEF) Major emphasis on equipment values and GATX's expertise/experience in certain asset classes Target industries include: Transportation - Energy Agriculture - Food Processing Manufacturing - Construction Packaging - Automotive Mining Transaction size: $3-$30 million
Slide 12: American Steamship Company (ASC)
American Steamship Company (ASC) ASC provides transportation of dry-bulk commodities on the Great Lakes through a fleet of 18 self-unloading vessels Transports a variety of dry- bulk commodities including iron ore pellets, coal, and limestone aggregates ASC has been operating on the Great Lakes for
Slide 13: ASC Market
ASC Market 2002 2003 2004 2005 2006 2007 U.S.-Flag Cargo Carriage - Net Tons 101.5 94.7 111.1 107.7 109.7 104 2006 Iron Ore Coal Limestone Aggregates Other ASC Commodities Carried - Net Tons 0.4 0.35 0.16 0.02 Approximately 80% of the cargos carried by U.S.-Flag Great Lakes vessels are destined for
Slide 14: Investment Volume (Continuing Operations)
Investment Volume (Continuing Operations) 2003 2004 2005 2006 2007 Rail 249.6 489.9 402.9 533.6 494 Specialty 130.9 22.7 92.6 94.1 141 ASC 0 20.6 3.2 127.7 4 Other 20.2 1.6 4.5 7.7 2 $400.7 $534.8 $503.2 $763.1 $ Millions $640.8
Slide 15: Recourse Leverage
Recourse Leverage 2002 2003 2004 2005 2006 2007 Recourse Leverage 5.8 4.8 3.7 3.8 2.6 2.7 Total Recourse Debt = On Balance Sheet Recourse Debt + Off Balance Sheet Recourse Debt + Capital Lease Obligations + Commercial Paper and Bank Credit Facilities, Net of Unrestricted Cash
Slide 16: Summary
Summary Disciplined approach has positioned GATX to capitalize on more favorable investment environment Operational volatility substantially reduced Balance sheet very strong Substantial investment capacity
GATX — BB&T Capital Markets 2008 Transportation Conference on 6ix