Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Association for Corporate Growth, October 2007
20 slides from Trinity Industries's conference presentation, Oct 18, 2007
Slide 1: 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 2: Trinity's History
Trinity's History Trinity started as a small butane tank manufacturing company and was incorporated in 1933 The Company went public in 1958, diversified into a variety of metal products during the 1960s and 1970s, and was listed on the NYSE in 1972 (Ticker: TRN) Trinity grew its market leadership po
Slide 3: Trinity Today is a Multi-Industry Company - Financials Reported in 5 Segments
Trinity Today is a Multi-Industry Company - Financials are Reported in 5 Segments Trinity's businesses manufacture infrastructure products and provide services: Note: Revenue and Operating Profit percentages for Last Twelve Months Ended June 30, 2007 for outside revenues. Note: Revenue and Operating
Slide 4: Businesses Today are Market Leaders
Trinity's Businesses Today are Market Leaders 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 railc
Slide 5: Trinity is a Highly Successful Cyclical Growth Company
Trinity is a Highly Successful Cyclical Growth Company Notes: (1) 2002-2006 are reported on a calendar year basis and discontinued operations, for the Company's European business and Fittings business, have been removed. (2) Years prior to 2001 represent a fiscal year ended in March and discontinued
Slide 6: Rail and Barge Businesses Have Been Highly Cyclical
Trinity's Rail and Barge Businesses Have Been Highly Cyclical The events of September 11th caused a significant decrease in capital goods spending in the U.S. Industry Shipments 1998 75685 1999 74223 2000 55791 2001 34260 2002 17714 2003 32184 2004 47801 2005 69759 2006 75619 Industry Shipments 1998
Slide 7: Experienced a Full Seven-Year Cycle in Revenues
Trinity Experienced a Full Seven-Year Cycle in Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2003 2869.3 2132 1766.5 1268.9 1260 1965 2709.71 3218.9 Trinity's revenue decreased by $1.6 billion over three years Trinity's revenue increased by $1.9 billion over three years Notes: (1) 2002-2006 are r
Slide 8: Segments Have All Shown Revenue Growth
Trinity's Segments Have All Shown Revenue Growth Construction Barge Leasing Energy Rail Growth 0.57 1.51 1.66 2.01 2.79
Slide 9: Has Been Taking Steps to Minimize the Effects of Cyclicality
Trinity Has Been Taking Steps to Minimize the Effects of Cyclicality Establish long-term financing structure - 14 transactions over the last 7 years Expand railcar leasing business Aggressively expand Mexico manufacturing capacity Enhance operational excellence and manufacturing flexibility Drive po
Slide 10: Has Executed Numerous Long-Term Financing Transactions in the Last Few Years
Trinity Has Executed Numerous Long-Term Financing Transactions in the Last Few Years Corporate Railcar Leasing June 2002 Trinity Rail Leasing Trust II Non-Recourse Lease Warehouse Facility $200,000,000 August 2007 Trinity Rail Leasing Trust II Non-Recourse Lease Warehouse Facility Renewed and Upsize
Slide 11: Railcar Lease Fleet is Growing Aggressively
Trinity's Railcar Lease Fleet is Growing Aggressively Trinity added $620 million of railcars to its fleet in 2006 and expects to add another $525-$575 million (net) in 2007 - over $1 billion in two years At June 30, 2007: Trinity's lease fleet totaled 34,670 railcars, an increase of 299% since 2000,
Slide 12: 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 13: Wind Tower Business Has Seen Significant Growth
Trinity's Wind Tower Business Has Seen Significant Growth We have built our wind tower business by converting facilities 2003 2004 2005 2006 LTM 6/07 Revenues 1 11 67 138 177.4
Slide 14: Continuously Generates Synergies Across Its Businesses
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 Facilities Sharing Best Practices in Manufacturing Technologies
Slide 15: 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 16: Continues to Enhance its Portfolio
Trinity Continues to Enhance its Portfolio Trinity has added: Key assets to its concrete and aggregates business in Texas and surrounding states Asphalt assets to its portfolio A guardrail business with an acquisition Manufacturing facilities in Mexico Trinity has sold Non-operating plants and facil
Slide 17: Financial Metrics Have Been Improving
Trinity's Financial Metrics Have Been Improving 2004 2005 2006 LTM 06/07 Revenues 1965 2709.7 3218.9 3366.2 2004 2005 2006 LTM 06/07 EBITDA 98.3 294.5 500.2 552.6 2004 2005 2006 LTM 06/07 EPS -0.25 1.44 2.72 3.01 2004 2005 2006 LTM 06/07 ROE -0.012 0.079 0.178 0.165
Slide 18: Key Differentiator is its Employees
Trinity's Key Differentiator is its Employees Committed to our market leadership positions Highly Competent Resourceful Operationally Flexible Very Responsive Hardworking Extremely Loyal Down to Earth Trustworthy Trinity's employees are the key to our success Trinity's employees are the key to our s
Slide 19: Has an Enormous Amount of Positive Momentum Occurring as a Company
Trinity's Has an Enormous Amount of Positive Momentum Occurring as a Company Record revenues, profits, and margins Strong backlogs in rail, barge, and wind towers Ability to build and/or convert facilities to meet market demand Significant capacity in Mexico Platform for portfolio expansion through
Slide 20: Trinity Industries, Inc. - Association for Corporate Growth October 2007
Trinity Industries, Inc. Association for Corporate Growth October 2007
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