Wabash National Corporation · NYSE:WNC
Wabash National — INVESTIndiana Equity Conference 2008
38 slides from Wabash National's conference presentation, Sep 11, 2008
Slide 1: INVESTIndiana Equity Conference September 11, 2008
INVESTIndiana Equity Conference September 11, 2008
Slide 2: Safe Harbor Statement
This presentation will contain certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are, however, subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by
Slide 3: Investment Highlights
Investment Highlights Market leader: #1 position in North American trailer market Superb brand recognition: Supported by diverse, long-standing customer relationships Innovation leader: Best-in-class technology (e.g., DuraPlate(r)) New leadership: Strong management team & Continuous Improvement (CI)
Slide 4: Company At-A-Glance
Company At-A-Glance Key Facts: Founded as a start-up in 1985 IPO in 1991 - NYSE: WNC Headquartered in Lafayette, IN 3,100 employees 2007 sales of $1.1B 2007 trailer production of ~ 46,500 units #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipme
Slide 5: WNC Product Offering
DuraPlate(r) Pups Arctic Lite(r) Vans Transcraft (r) Flatbeds DuraPlate HD(r) Dry Vans RoadRailer(r) DuraPlate(r) Dry Vans WNC Product Offering FreightPro(r) Dry Vans Dry Vans Refrigerated Doubles Vans Intermodal Platforms
Slide 6: WNC Customer Relationships
WNC Customer Relationships U.S. XPRESS ENTERPRISES, INC. ~ elation Roadway. AVERITT. iia ‘Soliitions
Slide 7: Industry Leading Innovations
Industry Leading Innovations Launch Date Description Innovation DuraPlate(r) Arched Roof 2009 Improved damage resistance and decreased weight Bonding Technologies TrustLock Plus Door Lock 2009 2009 Sidewalls and Logistics (Support Beams and Ties) Proprietary single-lock closing mechanism New DuraPla
Slide 8: Recognized Leader in Trailer Industry
Recognized Leader in Trailer Industry WNC Competition 45702 171318 WNC Competition 35319 83289 WNC Competition 4659 19259 2007 Total Trailers WNC Competition 5724 26621 WNC Competition 41043 109910 2007 Total Dry Vans 2007 Total Vans 2007 Total Platforms 2007 Total Reefers Source: ACT, WNC, TrailerB
Slide 9: Freight Tonnage
Freight Tonnage 116.2 July 1999 Peak = 108
Slide 10: Industry Outlook
Industry Outlook 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Class 8 Trucks 280722 206555 118682 148236 141429 216521 269408 296474 133586 135576 198604 173950 226456 244179 Total Trailers 314087 275223 140100 142658 183162 235953 256091 279047 216254 148024 163618 219
Slide 11: Van Trailer Forecast
Van Trailer Forecast Source: Van projections based on ACT Research: 1999-2010 - ACT August '08; 2011-2012 - ACT February '08. Dry Vans Wabash Market Share Reefers U.S. Dry & Refrigerated Van Trailer Forecast
Slide 12: DuraPlate Growth Opportunity
DuraPlate(r) Growth Opportunity DuraPlate Competition 19 81 Est. DuraPlate(r) Fleet Penetration >350,000 Units Sold Faster growth than existing penetration: >28% Dry Vans sold today are DuraPlate(r) Source: ACT Research - August '08; WNC estimates DuraPlate(r) replacement cycle is beginning 1997 199
Slide 13: WNC Expected Shipments
WNC Expected Shipments Full year shipments 32,000 - 33,000 units Better-than-the-industry outlook - market share gain - is predicated on a number of factors including: Quality of our customer base - Includes many of the largest and best- positioned organizations in the freight hauling business DuraP
Slide 14: DuraPlate Composite Panels
DuraPlate(r) Composite Panels High density polyethylene (HDPE) core bonded between two sheets of high-strength steel Composite panel is extremely strong, lightweight, and damage resistant Composite characteristics allow it to flex and absorb impact which helps reduce damage Pre-coated galvanized ste
Slide 15: Next Steps
NextSteps WABASH NATIONAL
Slide 16: Strategic Pyramid - Executable Initiatives
Develop New Non-core Business Opportunities Develop Global Joint Ventures/ Alliances Make Strategic Acquisitions Optimize Manufacturing Costs Accelerate Strategic Sourcing Initiative Optimize Inventory Mgmt. Create Purchasing Consortium Expand Customer Base Leverage the WNC Brand. Optimize and Grow
Slide 17: Key Elements of the Plan
Key Elements of the Plan Increase Diversification Improve Operational Excellence Capture Additional Growth Opportunities Reduce Cyclicality Improve Profitability Drive Higher Growth Goal: Transform Wabash National into a diversified industrial manufacturer and service provider by leveraging core com
Slide 18: DuraPlate Products Group Non-Core Business Development
DuraPlate(r) Products Group Non-Core Business Development Leverage materials and skills into business opportunities in addition to selling trailers Grow DuraPlate(r) product sales Find and develop new business opportunities to diversify and grow the company Corporate Growth Diversification into mark
Slide 19: Current DuraPlate Products Markets
Current DuraPlate(r) Products Markets Utility Truck Bodies/Cargo Trailers Expanding relationship with Utilimaster. Developing opportunities with other truck body OEMs. Working on Cargo Trailer OEM segment. segment. segment. segment. segment. segment. segment. segment. Portable Containers Industry Cu
Slide 20: Operational Excellence Initiatives
Operational Excellence Initiatives Optimize Manufacturing Process Southern Plant - On Hold Lafayette Transformation - Underway Strategic Sourcing Purchasing Consortium Inventory Optimization Offset the impact of rising raw materials prices Reduce capital allocation to inventory management Lower mate
Slide 21: Lafayette Transformation
Lafayette Transformation Enhance Manufacturing Process Lafayette Transformation Streamline production processes and improve manufacturing efficiency Optimize existing line configurations Drive margin improvement Improve material handling processes Consolidate dislocated warehouse facilities Reduce l
Slide 22: Lafayette North Campus - Future Layout
Lafayette North Campus - Future Layout Shipping Space Made Available Consolidated Warehouse Production Line Lafayette South Campus Over 190,000 square feet of space under roof made available for other opportunities. DCO 3
Slide 23: Inventory Management
Inventory Management Accomplishments: Warehouse consolidation (15 to 9) Improved ERP utilization $30M inventory reduction in 2007 Notable improvement in inventory turns Storage Off Site MFG Transcraft WWP Total PLAN 12/1/2006 30.7 4.4 11.2 4.5 7.3 58.1 59 1/1/2007 31 5.3 12 4.3 7.7 60.3 58 2/1/2007
Slide 24: Strategic Sourcing
Strategic Sourcing Continually improve purchasing activities Develop new suppliers, with focus internationally Emphasis in Asia Build low-cost global sourcing platform Currently 5% of materials are purchased internationally Goal is to move 20% of parts and components to low cost countries (LCC) Area
Slide 25: Purchase Consortium
Purchase Consortium Wabash National Utility Vans Cargo Vans Trailer Manufacturers Aftermarket Parts Key Participants: Participative Consortium (WNC as Principal) Initially four to five consortium members (Associate Members) Centrally administered and maintained by WNC with diminutive costs Leverage
Slide 26: Key Metrics Scorecard
Key Metrics Scorecard Reduce Cyclicality Top-Line Growth Improve Margins Productivity Improvements Earnings Growth Middle Market Strategy/Increased Market Share ^ ^ ^ ^ Process Technology Innovation ^ ^ ^ ERP System ^ ^ ^ Operational Excellence ^ ^ ^ Strategic Sourcing ^ ^ New Leg ^ ^ ^ New Products
Slide 27: Key Metrics Scorecard (cont.)
Key Metrics Scorecard (cont.) Strategic Initiative Key Metrics Operational Excellence Operational Excellence Southern Plant Full utilization within 24 months from start Lafayette Transformation Assembly line update completed in 1H'09 Warehouse consolidation completed by Q2-09 Strategic Sourcing 5% s
Slide 28: Benson - Background
Benson - Background Unique Situation 40 year history of building flat bed and dump trailers Unique opportunity - acquired the assets and intellectual property of a well respected aluminum trailer manufacturer in a distressed situation. Acquisition greatly accelerates our planned entry into the alumi
Slide 29: Benson - Product Line
Benson - Product Line The 524 is the standard duty trailer. The 724 model is the heavy duty trailer. 724 524 Aluminum Framed Dump Aluminum Frameless Dump Dump models are available with steel or aluminum frames, tandem or multi-axle.
Slide 30: Cadiz, KY - Facility
Cadiz, KY - Facility Flexible, 2 Year Old Facility Purpose Built Facility 26 acres in an industrial park (sole occupant) 9 acre adjoining option 180k sq. ft. rectangle production area at 360' x 500' Separate paint and blast building Attached administrative offices Fully fenced Expandable by up to 2
Slide 31: Benson Transaction
3 year operating lease for property and building with purchase option. Purchase selected assets. Purchase selected inventory No assumption of liabilities Purchase price - $5M Intellectual property included Opportunities for state and local tax Asset Transaction Purchasing - leverage buying power Sal
Slide 32: Financials
ee, WABASH, eet OUR INNOVATION MOVES THE WORLD™ Financials
Slide 33: Financial Highlights
Financial Highlights 2004 2005 2006 2007 1H'08 East 1041.1 1213.7 1312.2 1102.5 362.5 2004 2005 2006 2007 1H'08 East 1.8 3.06 0.3 0.52 -0.32 Revenue Diluted EPS ($ millions)
Slide 34: Financial Highlights (cont.)
Financial Highlights (cont.) 2004 2005 2006 2007 1H'08 East 0.12 0.110000000046565 0.081 0.08 0.05 Gross Margin EBITDA Margin 2004 2005 2006 2007 1H'08 East 0.086 0.079 0.033 0.05 -0.005
Slide 35: Financial Highlights (cont.)
Financial Highlights (cont.) 2004 2005 2006 2007 1H'08 East 56.9 50.5 51.8 59.3 16.6 Op. Cash Flow Consistent annual OCF ($ millions) 2004 2005 2006 2007 6/30/08 Total Equity $164.6 $278.7 $278.0 $279.9 $269.7 Debt $127.5 $125.5 $125.0 $104.5 $80.4 Cash $41.9 $67.4 $29.9 $41.2 $27.8 Inventory Turnov
Slide 36: Financial Outlook
Financial Outlook Expectations 2007 Long-term Revenue $1.1B >$1.5B Market Share (total trailers) 21% 23% Non-trailer Revenue <$5M > $75M Gross Margins 8% > 10% EBITDA Margins 5% > 8%
Slide 37: Uses of Cash
Uses of Cash Priority of capital allocation decisions Investment in the business Opportunistic investments Strategic bolt-on acquisitions Quarterly cash dividend Share repurchase program Offset dilution Refinance convertible notes
Slide 38: YWWABASH,
YWWABASH, ® OUR INNOVATION MOVES THE WORLD™
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