Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Wachovia Securities 17th Annual Nantucket Equity Conference (June 2007)
26 slides from Trinity Industries's conference presentation, Jun 25, 2007
Slide 1: Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward looking statements" as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These st
Slide 3: Trinity is a Multi-Industry Company
Trinity is a Multi-Industry Company Trinity is focused on infrastructure products and services in five distinct business groups: Note: Revenue and Operating Profit percentages for Last Twelve Months Ended March 31, 2007 for outside revenues.
Slide 4: Trinity's Key Market Leadership Positions
Trinity's Key Market Leadership Positions Trinity's Rail Group Largest manufacturer of railcars in North America Largest railcar axle manufacturer in North America Largest railcar coupler manufacturer in North America Trinity's Rail Leasing and Management Services Group Leading provider of railcar l
Slide 5: Trinity Has Experienced Significant Growth
Trinity Has Experienced Significant Growth Trinity's businesses provide a strong platform for growth The vast majority of Trinity's recent growth has been organic Revenues have grown by nearly $2 billion, or 155%, since 2003: 2003 2004 2005 2006 2003 1260 1965 2709.71 3218.9 $705mm growth $509mm gro
Slide 6: Trinity Today
Trinity Today Leasing and Management Services Aggressively Grow our Leasing Business Expand Relationships with End-users of railcars Introduce New Products through Leasing Business Diversify Earnings Base for Trinity Manufacturing Businesses Maximize Returns Expand Manufacturing Footprint in Mexico
Slide 7: Maximize Returns
Maximize Returns Trinity's manufacturing businesses have shown strong operating profit growth: 2005 2006 LTM 3/07 2003 148.3 276.1 299
Slide 8: Trinity Has an Excellent Competitive Position in Mexico
Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico Over five decades of in-country operating experience Multiple plants in Mexico - over 4,000 employees Trinity's significant manufact
Slide 9: Trinity's Unique Manufacturing Flexibility Creates Value
Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's manufacturing flexibility enhances its opportunistic approach
Slide 10: Trinity's Companies Have Continuous Synergistic Connections
Trinity's Companies Have Continuous Synergistic Connections Trinity continuously generates synergies across its businesses: Networking Customer Relationships Internal Sourcing of Components & Sub- Assemblies INTERNALLY GENERATED SYNERGIES Centralized Cost Savings Continued Transition to Low Cost Fac
Slide 11: Trinity's Railcar Lease Fleet is Growing Aggressively
Trinity's Railcar Lease Fleet is Growing Aggressively Trinity added $620 million of railcars to our fleet in 2006 and expects to add another $750-850 million in 2007 At March 31: Trinity's lease fleet totaled 32,500 railcars, an increase of 274% since 2000, representing over $1.7 billion of net flee
Slide 12: Trinity's Operating Profit from Leasing Has Grown Substantially
Trinity's Operating Profit from Leasing Has Grown Substantially 2004 2005 2006 LTM 3/07 2003 42 55.8 106.5 116.7
Slide 13: Financial Highlights - Manufacturing and Leasing
Financial Highlights - Manufacturing and Leasing Leasing and Management Services Last Twelve Months, March 31 2007: Revenues of $318 million Reflects 53% growth over LTM 3/06 Operating Profit of $117 million Accounts for 25% of Trinity's operating profit As of March 31 2007: Total Debt of $598 milli
Slide 14: Consolidated Financial Highlights
Consolidated Financial Highlights Last Twelve Months, March 31 2007: Revenues of $3.3 billion Reflects 17% growth over LTM 3/06 Operating Profit of $416 million Reflects 62% growth over LTM 3/06 EPS from Continuing Operations of $2.97 per share ROE of 18.5% As of March 31 2007: Cash of $224 million
Slide 15: Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
Slide 16: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 17: Trinity's Growth Continues
$500 $294 $98 $101 $0 $100 $200 $300 $400 $500 2003 2004 2005 2006 Trinity's Growth Continues Trinity's Earnings Summary 2003 - 2006 (1) (1) Earnings from Continuing Operations 2006 results reflect rate of improvements Revenues grew 19% from $2.7 billion to $3.2 billion, led by: 18% growth ($326mm)
Slide 18: Rail Group
($50) $0 $50 $100 $150 $200 $250 $300 2003 2004 2005 2006 Industry shipments of 74,800 during LTM 3/31/07 with a backlog of 80,700 cars as of 3/31/07 Trinity shipments totaled 25,640 during LTM 3/31/07, compared to 8,300 in all of 2003 Trinity orders totaled 36,670, representing 54% of the Industry
Slide 19: Rail Industry Shipment Summary and Projections
Industry Shipments 1956 67080 1957 99590 1958 42760 1959 37819 1960 57047 1961 31720 1962 36554 1963 44960 1964 69330 1965 77828 1966 90104 1967 83095 1968 56232 1969 69028 1970 65970 1971 54696 1972 47460 1973 59875 1974 66563 1975 72337 1976 52504 1977 51142 1978 67286 1979 84869 1980 80470 1981 4
Slide 20: Railcar Leasing and Management Services Group (TILC)
$41.0 $42.0 $55.8 $106.5 $0 $25 $50 $75 $100 $125 2003 2004 2005 2006 Railcar Leasing and Management Services Group ("TILC") Leading provider of comprehensive railcar fleet leasing and management services Trinity's owned and leased fleet was approximately 32,500 railcars at 3/31/07 as compared to 26
Slide 21: Inland Barge Group
$(14.8) $15.7 $44.5 $(4.7) ($20) ($10) $0 $10 $20 $30 $40 $50 2003 2004 2005 2006 Revenues up 33% in Q1 07 vs. Q1 06 Profitability dramatically improved - Operating Profit/(Loss) margins increased from (7%) in FY 2004 to 12% during 2006 Trinity backlog grew to $569mm at Q1 07 vs. $464MM at Q4 06 and
Slide 22: Inland Barge Segment: Growth Expected to be Driven by Replacement Demand
Estimated Retirements New Builds 1999 1019 931 2000 1201 831 2001 862 655 2002 1139 596 2003 947 280 2004 942 510 2005 714 328 2006 713 740 Age 0-5 Years 2679 6-10 Years 5049 11-15 Years 3203 16-20 Years 1640 21-25 Years 992 26+ Years 7131 39% are 21+ years old Inland Barge Segment: Growth is Expect
Slide 23: Congressional & Regulation Improvements Positive for Construction and Energy Segments
Congressional & Regulation Improvements Positive for Growth of Construction and Energy Segments Federal Highway Bill provides growth opportunity Bill provides $286.5 billion over six years The Bill provides a 31% increase over the previous funding levels Each state guaranteed at least a 21% increase
Slide 24: Construction Products Group
$37.5 $35.1 $55.3 $61.5 $0 $10 $20 $30 $40 $50 $60 $70 2003 2004 2005 2006 Revenues up 10% in Q1 07 vs. Q1 06 Operating profit up 6% over Q1 06 Nationwide producer of Highway products Positioned in Texas with Concrete, Aggregates, and Bridge Structures Demand tied to construction projects and federa
Slide 25: Energy Equipment Group
$10.9 $15.3 $31.9 $45.7 $0 $10 $20 $30 $40 $50 2003 2004 2005 2006 Tank Containers: Consistent and mature business Trinity has taken cost out of the business Improved processes Elimination of non-profitable products Consolidated North American operations Structural Wind Towers: Revenues will grow fr
Slide 26: Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
Trinity Industries, Inc. Wachovia Securities 17th Annual Nantucket Equity Conference
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