Gatx Corporation · NYSE:GATX
Gatx — Investor Presentation (May 2019)
70 slides from Gatx's investor presentation, May 6, 2019
Slide 1: Company Overview Presentation | May 2019
COMPANY OVERVIEW PRESENTATION | MAY 2019
Slide 2: Table of Contents
TABLE OF CONTENTS History and Business Overview…......................................……………..………………….………………….........................................................................… 4 Business Model ……………....…...........................……………..………………….……….............................................
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this Presentation not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and c
Slide 4: History and Business Overview
121 HISTORY AND YEARS OF BUSINESS OVERVIEW EXPERIENCE 4
Slide 5: GATX's 121-Year History
GATX’S 121-YEAR HISTORY 1898 Established as railcar lessor with 28 railcars 1919 Initiated quarterly dividend 1936 Began rail investment in Canada 1973 Acquired American Steamship Company (ASC) 1985 Began locomotive investment 1994 Began rail investment in Europe & Mexico 1998 Formed Rolls-Royce Par
Slide 6: Disciplined and Proven
DISCIPLINED AND PROVEN We strive to be recognized as the finest railcar leasing VISION company in the world by our customers, our shareholders, our employees and the communities where we operate. FOCUSED DISCIPLINED PROVEN BUSINESS CAPITAL ALLOCATION RETURNS TO STRATEGY SHAREHOLDERS 6
Slide 7: Capital Allocation Framework: Invest in Core Assets
CAPITAL ALLOCATION FRAMEWORK PRIORITY 1 . Invest in core, service-intensive assets to maximize shareholder value . $9.4 billion* of investments over the period shown INVESTMENT VOLUME $1,031 $943 $860 $763 $781 $770 $715 $634 $615 $621 $603 $585 $480 $ $ MILLIONS 2006 2008 2010 2012 2014 2016 2018 *
Slide 8: Capital Allocation Framework: Optimize the Balance Sheet
CAPITAL ALLOCATION FRAMEWORK PRIORITY 2 . Optimize the balance sheet . Maintain a solid investment grade rating of BBB/Baa2 . Maintain capacity for opportunistic investments LEVERAGE & REDUCTION OF SECURED ASSETS 6.0x 50% 45% 5.0x 40% 4.0x 35% 30% 3.0x 25% 20% 2.0x 15% 1.0x 10% 5% 0.0x 0% 2002 2003
Slide 9: Capital Allocation Framework: Return Excess Cash to Shareholders
CAPITAL ALLOCATION FRAMEWORK PRIORITY 3 . In lockstep with Priorities 1 and 2, return excess cash to shareholders . Over the period shown below, $1.8 billion returned to shareholders CASH RETURNED TO SHAREHOLDERS $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $ $ MILLIONS $800 $600 $400 $200 $0 2006 2008
Slide 10: GATX Financial Highlights
GATX FINANCIAL HIGHLIGHTS EPS* $5.77 $5.37 $5.22 $4.48 $4.70 $3.50 $2.81 $2.01 $1.59 2010 2011 2012 2013 2014 2015 2016 2017 2018 ROE INVESTMENT VOLUME 18% 18% $1,031 $943 15% 14% $860 13% 13% $770 $715 11% $585 $615 $621 $603 9% 7% $ $ MILLIONS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011
Slide 11: GATX Today – Business Segments
GATX TODAY – BUSINESS SEGMENTS RAIL NORTH AMERICA NET BOOK VALUE OF ASSETS . Premier railcar lessor . Diversified fleet of approximately 122,000 wholly owned railcars 1% and more than 650 locomotives . Strong customer credit quality, diversification in car types and 4% commodities carried 8% . Over
Slide 12: GATX's Strong Global Presence
GATX’S STRONG GLOBAL PRESENCE GATX own approximately 148,000 railcars, over 650 locomotives, 11 vessels on the Great Lakes and has an interest in more than 450 aircraft spare engines. GATX Headquarters (Chicago, IL) American Steamship Company Headquarters (Williamsville, New York) Rolls-Royce & Part
Slide 13: Business Model
121 BUSINESS MODEL YEARS OF EXPERIENCE 13
Slide 14: Straightforward and Proven Business Model
STRAIGHTFORWARD AND PROVEN BUSINESS MODEL BUY LEASE SERVICE MAXIMIZE the railcar at an the railcar to a the railcar in a manner the value of the economically attractive quality customer at that maximizes safety, railcar by selling or and competitively an attractive rate for in-use time and scrapping
Slide 15: Business Model: Buy
BUSINESS MODEL: BUY DISCIPLINED INVESTMENT COMPETITIVE GATX NORTH AMERICAN RAIL APPROACH ASSET COST ACQUISITION SOURCE GATX achieves lower new GATX recognizes that railcars car cost by placing large orders $800 are long-lived assets and that at appropriate points in the each investment is measured b
Slide 16: Business Model: Buy – Railcar Supply Strategy
BUSINESS MODEL: BUY Railcar Supply Strategy GATX’S STRATEGY IS TO SECURE RAILCARS FROM A VARIETY OF SOURCES AS OPPOSED TO ALSO BEING A RAILCAR MANUFACTURER; COMBINING RAILCAR MANUFACTURING WITH A RAILCAR LEASING BUSINESS: . Adds significant volatility leading to a higher cost of capital . Can result
Slide 17: Business Model: Lease
BUSINESS MODEL: LEASE Customers prefer GATX because of its diverse fleet, technical expertise to meet unique needs and superior ongoing service; This results in high fleet utilization and strong lease renewal success CAR AVAILABILITY DELIVERY . Utilize multi-year committed orders with . Develop leas
Slide 18: Business Model: Service
BUSINESS MODEL: SERVICE GATX has built a strong market position by focusing on full-service leasing in North America and Europe. MAINTENANCE ENGINEERING TRAINING TECHNOLOGY REGULATORY . Customers rely on GATX . GATX’s engineering . GATX provides . MyGATXRail.com . As a full-service railcar to manage
Slide 19: GATX Rail North America: Fleet Optimization
GATX RAIL NORTH AMERICA: FLEET OPTIMIZATION GATX’s fleet of well-maintained modern railcars, leased to quality customers, allows us to realize significant remarketing income when we decide to sell cars in the secondary market. We also generate scrapping gains at the end of a railcar’s useful life. R
Slide 20: Business Model: Summary
BUSINESS MODEL: SUMMARY Attractive economic returns in railcar leasing are driven by: . Access to efficiently priced capital and appropriate financial leverage . Acquiring the right railcars at the right time at the right price . Fleet diversification across railcar types, commodities carried, and c
Slide 21: Business Segment Overview
121 BUSINESS SEGMENT YEARS OF OVERVIEW EXPERIENCE 21
Slide 22: GATX Rail North America Overview
GATX RAIL NORTH AMERICA OVERVIEW 2018 OVERVIEW INDUSTRIES SERVED UTILIZATION* WHOLLY OWNED FLEET COUNT 100% 99% 99% 122,000 10% CAR TYPE COUNT 7% 26% 98% 160+ 98% AVERAGE FLEET AGE 96% 20 Years 13% 96% LOCOMOTIVE COUNT 94% 650+ NUMBER OF CUSTOMERS 24% 20% 92% 850+ 91% COUNTRIES OF OPERATIONS 90% US,
Slide 23: GATX Actively Manages Through Cycles
GATX ACTIVELY MANAGES THROUGH CYCLES GATX proactively manages changing market conditions by utilizing our strong customer relationships and diversity of our fleet to adjust rate and term. STRONG MARKET WEAK MARKET STRONG MARKET WEAK MARKET 70 67 63 66 50% 60 62 40% 60 54 39% 30% 50 45 35% 41 32% 20%
Slide 24: GATX Rail International Overview
GATX RAIL INTERNATIONAL OVERVIEW 2018 OVERVIEW INDUSTRIES SERVED BY GRE GRE FLEET UTILIZATION FLEET COUNT 5% 100% 23,000+ in Europe (GRE) 99% 99% 2,400+ in India and Russia 13% 98% CAR TYPE COUNT 97% 97% 97% 97% 97% 35+ 96% AVERAGE FLEET AGE (GRE) 96% 96% 95% 18 Years 55% 95% 95% 27% 94% NUMBER OF C
Slide 25: Portfolio Management Overview
PORTFOLIO MANAGEMENT OVERVIEW 2018 RRPF OVERVIEW OWNED PORTFOLIO RRPF ENGINE TYPES 3% SPARE ENGINE COUNT 450+ 10% AVERAGE FLEET AGE 5% 21% 11 Years 31% 10% RRPF JV PRE-TAX INCOME (GATX’s SHARE) 11% $100 76% 11% 22% $80 $60 76% Aircraft Spare Engine 31% Trent XWB (A350) 10% V2500 (A320) 22% Trent 700
Slide 26: American Steamship Company Overview
AMERICAN STEAMSHIP COMPANY OVERVIEW 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Net Tons Carried 37.2 37.3 35.7 21.2 28.0 28.4 29.7 28.8 30.5 26.5 25.4 27.8 26.2 by ASC (in millions) ASC Vessels Operated 18 18 18 12 13 14 14 13 15 13 11 12 11 ASC COMMODITIES CARRIED 2% FLE
Slide 27: Rail North America
RAIL NORTH AMERICA 27
Slide 28: North America – Industry Railcar Ownership
NORTH AMERICA – INDUSTRY RAILCAR OWNERSHIP Approximately 1.6 million railcars NORTH AMERICAN FLEET RAILROADS (18%) LESSORS (54%) BY CAR TYPE . Ownership of railcars has been . Shift from railroad- and shipper- declining owned railcars to lessor market 5% . Virtually no tank car ownership due share 7
Slide 29: North America – Tank & Freight Industry Ownership
NORTH AMERICA – TANK & FREIGHT INDUSTRY OWNERSHIP RAILCARS BY TYPE TANK CAR OWNERSHIP SHARE (Based on approximately 1.6 million railcars) 19% 5% 81% Lessor 7% 19% Shipper/Other 25% <1% Railroad 8% Based on approximately 410,000 tank cars 81% 21% FREIGHT CAR OWNERSHIP SHARE 34% 13% 45% Lessor 18% 45%
Slide 30: North America – Lessor Market Share
NORTH AMERICA – LESSOR MARKET SHARE LESSOR OWNERSHIP SHARE TANK CAR LESSOR OWNERSHIP SHARE (Based on approximately 876,000 lessor-owned railcars) 2% 10% 18% 18% GATX 8% 36% Union Tank Car 14% 17% Trinity 23% 9% 9% CIT 8% SMBC 2% Wells Fargo Rail 17% 36% 16% 10% Other 6% Based on approximately 332,00
Slide 31: North America – Industry Shipments & Carloadings
NORTH AMERICA – INDUSTRY SHIPMENTS & CARLOADINGS INDUSTRY SHIPMENT COMPOSITION (Based on 2018 carloads of approximately 17.9 million) CARLOADS ORIGINATED (United States and Canada) 22 23% 28% 21.2 20.9 21 3% 20 19.4 6% 6% 19 MILLIONS 17.9 14% 18 13% 17.5 5% 17.1 17 16.9 2% 28% Coal & Coke 14% Farm P
Slide 32: North America – Industry Backlog
NORTH AMERICA – INDUSTRY BACKLOG INDUSTRY BACKLOGS 160,000 . Cyclicality of the industry is illustrated 140,000 by the backlog of orders at the railcar manufacturers 120,000 . The 2013 and 2014 spike in tank car 100,000 backlog was primarily due to the crude/ 80,000 fracking boom . Backlogs have 60,
Slide 33: GATX Rail North America Key Attributes
GATX RAIL NORTH AMERICA KEY ATTRIBUTES Diverse Customer Diverse Fleet Portfolio Continuous investment in approximately 160 car types Strong credit profiles serving over 500 commodities Extensive Training and Maintenance Network Regulatory Expertise Highly competitive quality, delivery times, cost me
Slide 34: Rail North America: Diverse Customer Portfolio
GATX RAIL NORTH AMERICA: DIVERSE CUSTOMER PORTFOLIO CREDIT RATINGS OF TOP 50 CUSTOMER FAMILIES Largest GATX serves more customer represents 18% than less than 6.0% 850 individual of total lease 30% customers revenue 14% Average Top 20 customers relationship tenure account for 38% of top ten customer
Slide 35: Rail North America: Diverse Fleet
GATX RAIL NORTH AMERICA: DIVERSE FLEET CAR TYPE COMMODITIES CARRIED % OF FLEET % OF NBV General Service Tank Cars: Liquid fertilizers, Fuel oils, Asphalt, Food-grade oils, Chemicals (styrene, glycols, etc.) 20k-25k gallon 15.1% 14.0% General Service Tank Cars: Ethanol & methanol, Food-grade oils, Lu
Slide 36: Rail North America: Continuous Investment
GATX RAIL NORTH AMERICA: CONTINUOUS INVESTMENT $6.0 130 Car count increased 8% $5.7 Assets increased 36% 120 $5.5 $5.4 $5.2 $5.1 110 $5.0 $5.0 100 $4.6 $4.5 $4.5 $4.4 90 $4.2 $4.2 $4.1 80 ASSETS IN $ $ BILLIONS IN ASSETS $4.0 RAILCARS IN THOUSANDS IN RAILCARS 70 $3.5 60 $3.0 50 2008 2009 2010 2011 2
Slide 37: Rail North America: Maintenance Network
GATX RAIL NORTH AMERICA: MAINTENANCE NETWORK GATX is known for its integrity, safety, and quality of our operations and superior execution. EXTENSIVE MAINTENANCE NETWORK CUSTOMERS RELY ON GATX MAINTENANCE . Eight maintenance facilities . In 2018, GATX Rail North America performed approximately 55,00
Slide 38: Rail North America: Training & Regulatory Expertise
GATX RAIL NORTH AMERICA: TRAINING & REGULATORY EXPERTISE 2005 First railcar lessor to achieve Partner certification 2010 First railcar lessor to be named Responsible Care Partner of the Year 2017 Repeat recipient of the Responsible Care Partner of the Year 38
Slide 39: Rail North America: Regulatory Environment
GATX RAIL NORTH AMERICA: REGULATORY ENVIRONMENT PARTICIPATION DEEP KNOWLEDGE ON INDUSTRY REGULATIONS TANK QUALIFICATION INTERVAL EXTENSION GATX is the only tank car owner to get FROM FRA/Transport Canada approval to extend 10 to 15 first tank qualification inspection from 10 to YEARS 15 years for ge
Slide 40: Rail North America: Engineering Expertise
GATX RAIL NORTH AMERICA: ENGINEERING EXPERTISE GATX’s engineering team, including experienced mechanical, structural, and chemical engineers, communicates regularly with customers and tailors solutions to meet their needs. AUTO CARRIER CONVERSION PROJECT . GATX Engineering successfully converted old
Slide 41: Rail North America: Technology Focus
GATX RAIL NORTH AMERICA: TECHNOLOGY FOCUS GATX continues to innovate for our customers. SHOP PORTAL . Provides repair instructions to maintenance network shops . Provides car and event-specific forms to assure that required inspection points and mandatory repair items are documented and addressed My
Slide 42: Rail North America: Locomotive Leasing
GATX RAIL NORTH AMERICA: LOCOMOTIVE LEASING GATX OWNS, MANAGES OR HAS AN INTEREST LOCOMOTIVE LEASE REVENUE IN MORE THAN 600 LOCOMOTIVES $39 $39 $39 $38 $35 $34 $32 $ $ MILLIONS 95% are four-axle locomotives leased to: . Regional and short-line railroads . Industrial users . Class I railroads 2012 20
Slide 43: Rail International
RAIL INTERNATIONAL 43
Slide 44: International – European Industry Snapshot
INTERNATIONAL – EUROPEAN INDUSTRY SNAPSHOT . Lease rate volatility is lower RAILCAR OWNERSHIP INDUSTRY CAR TYPES (Based on approximately 705,000 railcars in relative to North American standard-gauge countries) market . Key segments continue to 9% demonstrate need to replace 29% aging equipment for 3
Slide 45: Europe – Tank & Freight Industry Ownership
EUROPE – TANK & FREIGHT INDUSTRY OWNERSHIP RAILCARS BY TYPE TANK CAR OWNERSHIP SHARE (Based on approximately 705,000 railcars in standard-gauge countries) 9% 25% 75% Lessor 25% Railroad & Privately 29% Owned 15% Based on approximately 113,000 tank cars 75% FREIGHT CAR OWNERSHIP SHARE 16% 31% 21% 21%
Slide 46: Europe – Lessor Market Share
EUROPE – LESSOR MARKET SHARE LESSOR OWNERSHIP SHARE TANK CAR LESSOR OWNERSHIP SHARE (Based on approximately 212,000 lessor-owned railcars) 25% GRE 16% 36% VTG 11% 2% 16% 25% 14% Ermewa 7% 7% Wascosa 2% Touax 5% 14% 16% Other Based on approximately 85,000 7% 36% lessor-owned tank cars 40% FREIGHT CAR
Slide 47: GATX Rail Europe (GRE) Key Attributes
GATX RAIL EUROPE (GRE) Key Attributes Diverse customer Operations in the portfolio major rail markets with strong credit profiles across Europe Broad range of value offerings: maintenance, training, engineering support, regulatory assistance and other services 47
Slide 48: GRE: Diverse Customer Portfolio
GRE: DIVERSE CUSTOMER PORTFOLIO GRE’s newer and higher capacity fleet attracts top-tier customers. GRE HAS INVESTED MORE THAN $1 BILLION OVER TOP 20 CUSTOMER CREDIT RATING THE LAST 10 YEARS, RESULTING IN A NEWER AND HIGHER CAPACITY FLEET TO SERVE ITS CUSTOMERS . Today, the average remaining lease te
Slide 49: GRE: Major Rail Markets
GRE: MAJOR RAIL MARKETS Nearly 73% of GRE’s revenue is generated in Germany, Poland, and Austria – strong rail freight transport economies GEOGRAPHIES SERVED FLEET STRUCTURE 3% 11% 10% 4% 36% Germany 4% 36% 26% Poland 14% 59% Liquid 11% Austria Petroleum Products 5% 5% Switzerland 17% LPG 59% 4% The
Slide 50: GRE: Service Offerings
GRE: SERVICE OFFERINGS MAINTENANCE ENGINEERING ASSEMBLY SUPPORT MODERNIZATION . GRE’s goal is to ensure . Decades of . GRE’s own production . Comprehensive . With an average age maximum railcar engineering facility, combined customer service of 18 years, GRE has availability experience with extensiv
Slide 51: GATX India
GATX INDIA RAILCAR OWNERSHIP GATX’s GROWTH IN INDIA GATX OBTAINED THE (Based on approximately 290,000 railcars) FIRST-EVER WAGON LEASING LICENSE IN 2012 9% . GATX India Private Limited is $90 $7 the market leader in railcar leasing $80 $6 － Owns 2,000 car fleet of $70 container flat wagons, steel 91
Slide 52: GATX Russia
GATX RUSSIA GATX STARTED DEVELOPING BUSINESS OPERATIONS IN RUSSIA IN 2013 . Russia has one of the largest privately- owned railcar fleets in the world . GATX Russia owns a small fleet of timber flatcars, gondolas, boxcars and tankcars . Less than $20 million of investment . Leverages GATX Rail North
Slide 53: Portfolio Management
PORTFOLIO MANAGEMENT 53
Slide 54: Aircraft Spare Engine Leasing Industry Overview
AIRCRAFT SPARE ENGINE LEASING INDUSTRY OVERVIEW AIR TRAVEL 2X 2X 4.4% Growth Growth expected annual growth 1980 1995 2010 until 2035 AIRCRAFT GROWTH ENGINE GROWTH SPARE ENGINE GROWTH 37,000 75,000 7,900 new aircraft in new aircraft engines new aircraft spare engines with an the next 20 years estimat
Slide 55: Aircraft Spare Engine Leasing Industry Overview
AIRCRAFT SPARE ENGINE LEASING INDUSTRY OVERVIEW AIRCRAFT SPARE ENGINE OVERVIEW . Engines are very attractive and reliable leasing assets － Robust residual value characteristics － Retain value better over the long term compared to aircraft . Aircraft engines need regular scheduled maintenance (3-5 ye
Slide 56: RRPF Affiliates Overview
RRPF AFFILIATES OVERVIEW The RRPF affiliates portfolio has committed future lease receipts of more than $2.9 billion. RRPF OVERVIEW RRPF ENGINE TYPES . GATX established its first partnership with Rolls-Royce 10% plc in 1998 5% . Total NBV of engines upon 31% RRPF establishment was $350 10% million;
Slide 57: RRPF Market Leadership
RRPF MARKET LEADERSHIP RRPF enjoys leading market position in each targeted asset type. RRPF MARKET POSITION (% OF SPARE ENGINES ON OPERATING LEASE) 100% 100% 100% 93% 85% 44% 27% 15% 7% 0% 0% 0% Trent 700 Trent 900 Trent 1000 Trent 7000 Trent XWB V2500 RRPF 2nd Largest Spare Engine Lessor of the As
Slide 58: RRPF – Growth in Revenue & Net Book Value
RRPF - GROWTH IN REVENUE & NET BOOK VALUE CAGRs of 15.6% and 14.4% for NBV and Total Annual Revenue, respectively, since 1998. 2018 NBV: $4,429M Rev: $433M $5,000 $500 $4,500 $450 $4,000 $400 $3,500 1998 $350 $3,000 $300 $2,500 NBV: $243M $250 NBV (MILLIONS) NBV Rev: $29M $2,000 $200 REVENUE (MILLIO
Slide 59: American Steamship Company
AMERICAN STEAMSHIP COMPANY 59
Slide 60: Great Lakes Industry Overview
GREAT LAKES INDUSTRY OVERVIEW US-FLAGGED DRY BULK CARGO CARRIAGE CAPACITY OF US-FLAG VESSEL OPERATORS 120 7% 100 7% 27% 80 12% 60 22% 25% 40 20 27% ASC 12% Grand River Navigation 25% Interlake Steamship Company 7% Central Marine Logistics 0 22% Great Lakes Fleet, Inc. 7% Other 2007 2009 2011 2014 20
Slide 61: ASC Business Overview
ASC BUSINESS OVERVIEW BUSINESS FLEET CUSTOMER OVERVIEW OVERVIEW OVERVIEW . ASC provides . Fleet of 11 self- . ASC served 21 transportation of unloading vessels customers in dry bulk – No shore-side 2018 commodities assistance required . Top five across the Great – Operates 24-hours customers Lakes a
Slide 62: ASC Commodities Carried & Industries Served
ASC COMMODITIES CARRIED & INDUSTRIES SERVED COMMODITIES CARRIED BY ASC INDUSTRIES SERVED BY ASC 2% 4% 16% 12% 27% 27% 55% 57% 16% Limestone 55% Iron Ore 12% Construction 57% Steel 27% Coal 2% Other 27% Electric Utility 4% Other Based on 2018 ASC volume of 26.2 million net tons Based on 2018 ASC reve
Slide 63: Financial Highlights
121 FINANCIAL YEARS OF HIGLIGHTS EXPERIENCE 63
Slide 64: GATX Financial Highlights
GATX FINANCIAL HIGHLIGHTS EPS* $5.77 $5.37 $5.22 $4.48 $4.70 $3.50 $2.81 $2.01 $1.59 2010 2011 2012 2013 2014 2015 2016 2017 2018 ROE INVESTMENT VOLUME 18% 18% $1,031 $943 15% 14% $860 13% 13% $770 $715 11% $585 $615 $621 $603 9% 7% $ MILLIONS $ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011
Slide 65: GATX Is Well-Positioned with Strong Cash Flows
GATX IS WELL-POSITIONED WITH STRONG CASH FLOWS . GATX has nearly $3.4 billion in committed future lease receipts . Our strong operating cash flow provides tremendous capital allocation flexibility GATX COMMITTED FUTURE LEASE RECEIPTS OPERATING CASH FLOW & PORTFOLIO PROCEEDS (Continuing Operations) $
Slide 66: Financial Highlights: Strong Balance Sheet
FINANCIAL HIGHLIGHTS: STRONG BALANCE SHEET GATX primarily issues unsecured debt (leaving assets largely unencumbered), manages leverage, and balances debt maturity schedules LEVERAGE & REDUCTION OF SECURED ASSETS FUTURE DEBT OBLIGATIONS $2,710 6.0x Sold aircraft leasing 50% business & reduced 45% 5.
Slide 67: Financial Highlights: Strong Balance Sheet
FINANCIAL HIGHLIGHTS: STRONG BALANCE SHEET GATX has decreased borrowing costs and increased borrowing term. GATX issued $700 million of public unsecured debt in 2018 DECLINING COST OF DEBT & INCREASING BORROWING TERM 7.0% 10.0 9.0 6.0% 6.4% 9.2 8.9 8.0 5.0% 7.0 6.0 4.0% 4.0% 5.0 3.7% 3.0% 5.0 4.0 3.
Slide 68: Reconciliation of Non-GAAP Measures
RECONCILIATION 121 OF NON-GAAP YEARS OF EXPERIENCE MEASURES 68
Slide 69: Reconciliation of Non-GAAP Measures – Net Income Measures
RECONCILIATION OF NON-GAAP MEASURES – NET INCOME MEASURES Net Income 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (in millions) Net income (GAAP)$ 81.4 $ 80.8 $ 110.8 $ 137.3 $ 169.3 $ 205.0 $ 205.3 $ 257.1 $ 502.0 $ 211.3 Adjustments attributable to consolidated pre-tax income: Cost attributab
Slide 70: Reconciliation of Non-GAAP Measures – Balance Sheet Measures
RECONCILIATION OF NON-GAAP MEASURES – BALANCE SHEET MEASURES On- and Off-Balance Sheet Assets 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total assets (GAAP)$ 5,206.4 $ 5,442.4 $ 5,846.0 $ 6,044.7 $ 6,535.5 $ 6,919.9 $ 6,894.2 $ 7,105.4 $ 7,422.4 $ 7,616.7 Off-balance sheet assets: Rail North