Slide 1: Trinity Industries, Inc. August 2008
Trinity Industries, Inc. August 2008
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 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 6/30/08 for outside revenues. Note: Revenue and Operating P
Slide 4: Trinity's Results Have Been Strong
EBITDA Margin Line 3 Revenue EBITDA Stack 2 Stack 3 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2002 0.07368587 1268.9 93.504 50 2003 0.080165092 1259.9 101 125 2004 0.049974555 1965 98.2 200 2005 0.108609809 2709.7 294.3 275 2006 0.
Slide 5: Trinity is Positioned to Respond in Today's Markets
Trinity is Positioned to Respond in Today's Markets Trinity's backlog in its Rail, Barge, and Wind Tower businesses totaled more than $4.6 billion at June 30, 2008 This gives Trinity visibility into 2008 and 2009 Trinity's manufacturing flexibility allows us to shift our sales and manufacturing focu
Slide 6: Trinity's Manufacturing Flexibility is a Differentiator
Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's manufacturing flexibility enhances its opportunistic approach Quic
Slide 7: 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 More than five decades of in-country operating experience Multiple plants in Mexico - more than 4,940 employees Trinity's significan
Slide 8: Trinity's Railcar Leasing Company Provides Stability
Trinity's Railcar Leasing Company Provides Stability Trinity's leasing company continues to provide strategic benefits to the manufacturing business in addition to its strong financial performance The leasing company's aggressive growth strengthens relationships with core customers while allowing su
Slide 9: Trinity's Railcar Lease Fleet is Growing Aggressively
Trinity's Railcar Lease Fleet is Growing Aggressively Trinity added $482 million (net) of railcars to its fleet in 2007 and expects to add another $700 - $800 million (net) in 2008 - more than $1 billion in two years At June 30, 2008: Trinity's lease fleet totaled 41,100 railcars, an increase of 372
Slide 10: Trinity's Companies Have Continuous Synergistic Connections
Trinity's Companies Have Continuous Synergistic Connections Trinity's businesses place a high priority on collaborating with each other to continuously generate synergies that provide competitive benefits: Networking Customer Relationships Internal Sourcing of Components & Sub- Assemblies INTERNALLY
Slide 11: Trinity's Key Market Leadership Positions
Trinity's Key Market Leadership Positions Trinity's portfolio of businesses consists of companies that have maintained market leading positions for over a decade Our businesses are led by experienced managers who know their markets, products and services We have an aggressive, competitive nature - w
Slide 12: 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 13: 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 14: Trinity's Revenues are Becoming More Diversified Over Time
Trinity's Revenues are Becoming More Diversified Over Time FY 2000 Total Consolidated Revenue was $2.7 billion *Total Consolidated Operating Profit Excluding All Other & Corporate LTM 6/30/2008 Total Consolidated Operating Profit Excluding All Other & Corporate was $726 million *Total Consolidated O
Slide 15: Trinity is Positioned for the Future
Trinity is Positioned for the Future Trinity's products supply the industrial core of North America Railroads, inland waterways, construction, and energy sectors Trinity's businesses should benefit from the economic stimulus package We manufacture capital goods, which have the opportunity for increa
Slide 16: Current Railcar Demand is Largely Driven by Replacement Needs
Current Railcar Demand is Largely Driven by Replacement Needs There are approximately 1.7 million railcars in the North American system Nearly 700,000 of those railcars are more than 25 years old The average life span of a railcar is 35 years The last major sustained build cycle was in the late 1970
Slide 17: 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 18: TrinityRail's Focus on Operational Excellence Continues to Drive Performance
TrinityRail's Focus on Operational Excellence Continues to Drive Performance In the LTM June 30, 2008, Trinity booked 42% of all railcars ordered in the industry and holds 46% of the backlog During 2007, Rail Group Operating Profit grew by 37%, or $94 million Revenue Operating Profit OP Margin Colum
Slide 19: Inland Barge Growth is 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 2007 761 931 Age 0-5 Years 3592 6-10 Years 5013 11-15 Years 3239 16-20 Years 1640 21-25 Years 953 26+ Years 6458 Inland Barge Growth is Expected to be Driven by
Slide 20: Cargo Movement by Barge is Highly Efficient
Cargo Movement by Barge is Highly Efficient For shippers with smaller volumes of freight that does not need to move along the rivers, rail is highly efficient as compared to truck For movement of large volume of cargo north and south, use of barges along the inland waterways is typically the most ef
Slide 21: Barge is More Energy Efficient than Railcar or Truck
Barge is More Energy Efficient than Railcar or Truck Barge Rail Truck Ton-Miles 576 413 155 Barges can move one ton of cargo 576 miles per gallon of fuel. A railcar would move the same ton of cargo 413 miles per gallon, and a truck would only move 155 miles. Source: Waterways Working For America, Te
Slide 22: Trinity is Aggressively Pursuing Synergistic Opportunities in the Wind Energy Market
Trinity is Aggressively Pursuing Synergistic Opportunities in the Wind Energy Market Opportunities in the Wind Energy Market Opportunities in the Wind Energy Market Trinity's Structural Wind Tower revenues have grown from $11 million in 2004 to an expected $425 million in 2008, while the backlog has
Slide 23: Opportunities Continue to Grow for Trinity Structural Wind Towers
Opportunities Continue to Grow for Trinity Structural Wind Towers Structural Wind Towers Structural Wind Towers
Slide 24: Financial Highlights - Manufacturing and Leasing
Financial Highlights - Manufacturing and Leasing Leasing and Management Services Last Twelve Months Ending June 30, 2008: Revenues of $605 million Reflects 48% growth over LTM 6/07 Operating Profit of $164 million Reflects 24% growth over LTM 6/07 As of June 30, 2008: Total Debt of $1.0 billion Inst
Slide 25: Consolidated Financial Highlights
Consolidated Financial Highlights Last Twelve Months Ending June 30, 2008 Revenues of $4.0 billion Reflects 18% growth over LTM 6/07 Operating Profit of $569 million Reflects 36% growth over LTM 6/07 Earnings from Continuing Operations of $3.93 per common diluted share Reflects 31% growth over LTM 6
Slide 26: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 27: Rail Group
Industry shipments of 60,160 during LTM 6/30/08 with a backlog of 62,320 cars as of 6/30/08 Trinity shipments totaled 26,408 during LTM 6/30/08, compared to 8,300 in all of 2003 Trinity orders totaled 23,310, representing approximately 42% of the Industry total during LTM 6/30/08 Trinity's order bac
Slide 28: Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group Leading provider of comprehensive railcar fleet leasing and management services Trinity's owned and leased fleet was approximately 41,100 railcars at 6/30/08 as compared to 34,670 at 6/30/07 Single point of contact for equipment and services Strengthens
Slide 29: Inland Barge Group
Revenue Operating profit Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 211.7 4.7 0.0222 2003 170.6 -4.7 -0.0275 2004 210.4 -14.8 -0.0703 2005 240.7 15.7 0.0652 2006 371.2 44.5 0.1199 2007 493.2 72.6 0.1472 LT
Slide 30: Construction Products Group
Revenues OP OP% Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 463.9 44.8 0.097 2003 457.4 37.5 0.082 2004 535.5 35.1 0.066 2005 621.6 55.3 0.089 2006 695.3 61.5 0.088 2007 733 58.2 0.079 LTM 6/08 761 65.6 0.086 Revenu
Slide 31: Energy Equipment Group
Revenue OP OP% Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 149.4 0.6 0.004 2003 124.3 10.9 0.088 2004 152.1 15.3 0.101 2005 234.8 31.9 0.136 2006 336.5 45.7 0.136 2007 433.9 50.1 0.1155 LTM 6/08 530 71.9 0.136 Tank Container