Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (March 2018)
28 slides from Trinity Industries's investor presentation, Mar 12, 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018 Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intent
Slide 3: Agenda
Agenda I. Trinity Industries, Inc. Overview Today II. Overview and Rationale for Planned Spin-off III. Spin-off Timeline and Progress Report IV. Appendix 3
Slide 4: Trinity Industries overview
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Rail Group Leasing Barge CPG EEG All Other EPS, Total Company-Diluted • Trinity Industries, Inc. is a diversified industrial company that owns complementary mark
Slide 5: Leading Market Positions by Segment
Rail Group Leading manufacturer of railcars Leading manufacturer of railcar axles Leading manufacturer of railcar coupling devices Railcar Leasing and Management Services Group Leading provider of railcar leasing and management services Inland Barge Group Leading manufacturer of inland bar
Slide 6: Diversified Portfolio of Businesses
6 Diversified Portfolio of Businesses PRESENT (FY 2017) Elevating Our Financial Performance Total Revenues = $3.7 B PAST (FY 2000) Total Revenues = $2.7 B All Footnotes throughout the presentation are listed on Slide 28. (2) (2) We strive to outperform prior cyclical peaks with higher EPS and better
Slide 7: Flexible and Cost-Effective Manufacturing
7 Flexible and Cost-Effective Manufacturing In recent years, Trinity has invested significantly in its manufacturing footprint establishing a strong manufacturing platform and ability to respond to changes in market demand Flexibility Cost-Effective Trinity's manufacturing flexibility across product
Slide 8: Seasoned Performer Across Market Conditions
Incorporated in 1933 with a strong corporate culture and commitment to Company values Seasoned management team knows how to assess the market, proactively plan for cycles and quickly adapt to changing market conditions Cost-effective and flexible manufacturing footprint is a competitive advant
Slide 9: Conservative and Liquid Balance Sheet
9 Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Cash, Cash Equivalents, & Short Term Marketable Securities $1,098 Corporate Revolver Availability 521 Warehouse
Slide 10: Financial Highlights
$443 $470 $612 $774 $989 $1,502 $1,713 $1,032 $851 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0.67 $0.43 $0.88 $1.59 $2.38 $4.19 $5.08 $2.25 $1.52 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 10 Fi
Slide 11: FY 2018 Guidance and Outlook
~ $1.15 - $1.35 ~ $1.00 - $1.20 ~ $130 - $150mm ~ $25mm ~ $0.05 ~ 24% ~ $100 - $150mm 11 FY 2018 Guidance and Outlook (As of February 22, 2018) Any forward-looking statements made by the Company speak only as of the date on which they are made. The Company is under no obligation to, and expressly di
Slide 12: Overview and Rationale for Planned Spin-Off
12 II. Overview and Rationale for Planned Spin-Off
Slide 13: Spin-off of Infrastructure-Related Businesses
13 • On December 12, 2017, Trinity Industries announced a plan to pursue the spin-off of its infrastructure-related businesses to shareholders • Transaction is expected to result in two separate public companies that will benefit from: – Leading positions in their respective industries – Strong free
Slide 14: Strategic Rationale
14 Strategic Rationale • Enhances Overall Growth Potential through Focused Companies – New infrastructure company to focus on growing market opportunity in North American infrastructure spending – Trinity Industries to operate industry-leading integrated rail leasing, manufacturing, and services bus
Slide 15: Maintains Benefits of TrinityRail's Integrated Structure
15 Maintains Benefits of TrinityRail’s Integrated Structure • The spin-off will preserve the TrinityRail integrated business model and its expansive market platforms • As the premier provider of rail products and services, offers an unparalleled value proposition for customers • Creates a “one-stop-
Slide 16: Infrastructure Company Positioned for Success
16 Infrastructure Company Positioned for Success • New growth-oriented company that is focused on infrastructure-related products and services • Businesses have leading positions in construction, energy, and marine markets • Positioned to grow free cash flows • Will have the balance sheet strength a
Slide 17: Spin-off Timeline / Execution Plan
III. Spin-off Timeline/ Execution Plan 17 Announcement December 2017 Expected Completion Q4 2018 • Continued analysis and planning • Refinement of new corporate and organizational structures • Form 10 filing and SEC review process • Organization preparation • IRS private letter ruling on tax-free st
Slide 18: Separation Progress Report
Separation Progress Report (As of 2/22/18) • Internal Separation Planning Teams identified and project plans defined • CEO/CFO announcements of both companies – Continued progress of reorganized senior management teams • Internal refinement of business segment alignment under each company • Private
Slide 19: Management Announcements Post Spin
19 Management Announcements-Post Spin (As of 2/22/18) Management-Trinity Industries Management-Infrastructure Company Current CEO/CFO to remain in place following the spin-off Timothy R. Wallace, Trinity’s Chairman, Chief Executive Officer and President, will remain in his current role with Trin
Slide 20: Appendix
20 IV. Appendix
Slide 21: Rail Group Revenues and OP Margin
$895 $522 $1,275 $2,013 $2,868 $3,817 $4,462 $3,077 $2,084 -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Railcar Revenue Parts & Components Revenue OP Margin Market Positioning 21 Rail
Slide 22: Railcar Leasing and Management Services Group
$329 $461 $493 $529 $587 $632 $700 $701 $744 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 $700 $800 2009 2010 2011 2012 2013 2014 2015 2016 2017 TILC Revenue Operations Margin PBT Margin - 20,000 40,000 60,000 80,000 100,000 120,000 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 23: Construction Products Group Revenues and OP Margin
$281 $354 $453 $484 $525 $552 $533 $523 $505 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% $0 $100 $200 $300 $400 $500 $600 2009 2010 2011 2012 2013 2014 2015 2016 2017 Highway Products Aggregates Other OP Margin 23 Business Conditions/Demand Outlook Market Positioning Current Performance
Slide 24: Energy Equipment Group Revenues and OP Margin
$510 $420 $473 $559 $ 665 $992 $1,114 $1,013 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% $0 $200 $400 $600 $800 $1,000 $1,200 2009 2010 2011 2012 2013 2014 2015 2016 2017 Wind Tower and Utility Structures Revenues Other Revenues OP Margin $975 24 Business Conditions/Demand Outlook Market Positi
Slide 25: Inland Barge Group Revenues and OP Margin
$527 $422 $549 $675 $577 $639 $653 $403 $158 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0% $0 $100 $200 $300 $400 $500 $600 $700 $800 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues OP Margin Business Conditions/Demand Outlook Market Positioning Current Performance Inland Barge Group Reven
Slide 26: Reconciliation of EBITDA
26 Reconciliation of EBITDA (1)(2) (in millions) “EBITDA” is defined as income (loss) from continuing operations plus interest expense, income taxes, and depreciation and amortization including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles
Slide 27: Reconciliation of PBT Margin – Leasing Group
27 Reconciliation of PBT Margin – Railcar Leasing and Management Services Group (in millions except for PBT Margin) 2009 2010 2011 2012 2013 2014 2015 2016 2017 From Leasing Operations: Revenue 329$ 461$ 493$ 529$ 587$ 632$ 700$ 701$ 744$ Operating Profit 129$ 200$ 225$ 243$ 267$ 288$ 331$ 313$ 341$
Slide 28: Footnotes
Slide 4 (1) Intersegment Revenues are eliminated and Leasing Revenues include revenues related to TRIP Holdings beginning in FY 2010; CPG Revenues for prior years have also been adjusted as a result of the divestiture of its Concrete business in March 2013 (2) FY 2009 EPS excludes a $325 million pre
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