Wabash National Corporation · NYSE:WNC
Wabash National — Bear Stearns 2006 SMid-Cap Investor Conference
25 slides from Wabash National's conference presentation, Nov 15, 2006
Slide 1: Bear Stearns 2006 SMid-Cap Investor Conference
Bear Stearns 2006 SMid-Cap Investor Conference November 15, 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 materi
Slide 3: Company Overview
Company Overview North American leader in designing, manufacturing and marketing truck trailers and related transportation equipment Founded as a start-up in 1985; headquartered in Lafayette, IN In 2005, trailer production of over 56,000 units* and over $1.2bn* in sales Acquired Transcraft Corporati
Slide 4: Investment Highlights
Investment Highlights Solid trailer demand environment Market leadership with significant growth opportunities Superb brand recognition “Best-in-class” technology Broad customer base & long-standing relationships Extensive sales & distribution capabilities Strong balance sheet Upside profitability p
Slide 5: Recognized Leader in Trailer Industry
Recognized Leader in Trailer Industry Market leadership -No. 1 in van trailers (29% market share in 2005) -No. 1 in total trailer production (23% share in 2005) -One of the two largest trailer manufacturers in North America in each of the last 14 years Best-known brands in the industry Transcraft Ea
Slide 6: Comprehensive Product Offering
Comprehensive Product Offering Product line: DuraPlate ® Dry VansDuraPlate HD ® Dry VansRefrigerated VansPups FlatbedsSheet & Post Dry VansRoadRailer ® Intermodal Innovations: LED Mini-DuraPlateSolarGuard MarkerEZ-7 ® PlugWP AxleDoor ® Roof ® 6
Slide 7: Customer (Fleet) Situation
Customer (Fleet) Situation Major fleets managing capacity to support pricing Driver shortage limits growth yet is the greatest catalyst for improved pricing Overall fleets are in great financial shape Second half of ‘06 “soft” Anticipate aggressive shipper price negotiations Some fleets deferring eq
Slide 8: Trailer OEM Situation
Trailer OEM Situation Anticipate cycle to continue through 2008 Late developing buying season as fleets finish pre-buy and negotiate new contracts Potential for some reduction in raw materials and components Tire availability/cost dependent on resolution of Goodyear strike Pricing: OEM’s work to rec
Slide 9: Wabash National Situation
Wabash National Situation ERP worst is over — much to do ALPHA improving WNC defending DuraPlate patents Initiatives moving forward -Mid-market growth -Alternative sourcing -Pricing Operations doing very well Working supply issues with tires 9
Slide 10: Operating Metrics Recovering
Operating Metrics Recovering 12 0 110 10 0 9 0 8 0 70 6 0 JanF ebM arA p rilM ayJuneJulyA ugSep tOct ProductivityProcess YieldThroughput Major turn-around Major turn-around 10
Slide 11: Freight Tonnage Slows
Freight Tonnage Slows ATA’s Truck Tonnage Index* 125 111.1 (Seasonally Adjusted; 2000=100) 08/2006 120 115 110 1999 Peak = 108 105 100 95 0123456 0 00 10 20 30 40 50 6 n -l — 0n -l — 0n -l — 0n -l — 0n -l — 0n -l — 0n -l — 0 J aJ uJ aJ uJ aJ uJ aJ uJ aJ uJ aJ uJ aJ u Recent decrease in index reflect
Slide 12: Key Trailer Industry Indicators
Key Trailer Industry Indicators TL Carrier Database: Trailers: Average Age 1994 — 2005 Months 60 55 50 45 40 35 30 25 9495 96 97 98 99 00 01 02 03 04 05 A.C.T. Research Co., LLC: Copyright 2006 Trailer to truck build ratio far below historical average. Trailer to truck build ratio far below historic
Slide 13: Positive Industry Outlook
Positive Industry Outlook U.S. Truck & Total Trailer Industry Shipments Class 8 Truck 350,000 Total Trailers 300,000 250,000 Trailer Replacement Units Truck Replacement 200,000 150,000 100,000 50,000 0 19992000200120022003200420052006E 2007E 2008E 2009E 2010E Trailer replacement and growth cycle exp
Slide 14: Van Trailer Forecast
Van Trailer Forecast Reefers Dry Vans Wabash Market Share 250,00040% (Units) 200,000 Production 150,000 30% 100,000 Industry 50,000 020% 200020012002200320042005 2006E 2007E 2008E 2009E Wabash’s share of the van trailer market rose to 29% in 2005. Wabash’s share of the van trailer market rose to 29%
Slide 15: Leader in Technological Innovation — DuraPlate
Leader in Technological Innovation — DuraPlate ® Proprietary composite trailers offer several advantages vs. standardized equipment - Longer trailer life - Low maintenance cost Reduced $: “Total Cost of Ownership” - Increased durability - Enhanced trade in values 50,00081%80%80%90% 78%79% 36,64936,7
Slide 16: DuraPlate Market Growth Forecast
DuraPlate Market Growth Forecast Composite Trailer Penetration of Dry Van Market Composite 70%Market Upside 60%Potential 50% 40% 30% 20% 10% 0% 9 69 79 89 90 00 10 20 30 40 50 60 70 80 91 0 1 91 91 91 92 02 02 02 02 02 02 02 02 02 02 0 DuraPlateCom petitionTotal Com posite Tremendous upside potentia
Slide 17: Truckload (TL) Carrier Customer Relationships
Truckload (TL) Carrier Customer Relationships 13 of the Top 20 TL Fleets are Wabash customers 13 of the Top 20 TL Fleets are Wabash customers 17
Slide 18: LTL Truckload Carrier Customer Relationships
LTL Truckload Carrier Customer Relationships 10 of the Top 20 LTL Fleets are Wabash customers 10 of the Top 20 LTL Fleets are Wabash customers 18
Slide 19: Refrigerated Carrier Customer Relationships
Refrigerated Carrier Customer Relationships 5 of the Top 10 Refrigerated Fleets are Wabash customers 5 of the Top 10 Refrigerated Fleets are Wabash customers 19
Slide 20: "Mid-Market" — Proven Growth Engine
“Mid-Market” — Proven Growth Engine Market driven by technology, service & productivity with 1,250 fleets (~1mm trailers) Results to date (2004 — 2Q 2006) -1050 new customers, 16,000 units ordered -150 Mid-Market customers, 12,000 units ordered -Over $320mm in new business Goal: 30% share by 2008 vs
Slide 21: Direct Materials Off-shore Sourcing
Direct Materials Off-shore Sourcing Today: $14mm from China $7mm from Germany 96%4%$2mm from Mexico NAOff-Shore Lots of opportunity! Lots of opportunity! 21
Slide 22: Financial Highlights
Financial Highlights Nine months ($ in millions) 2003*2004200520052006 Sales$829$1,041$1,214$873$958 Gross Profit$ 67$ 126$ 135$101$ 76 % Margin8%12%11%12 %8% Operating Cash Flow$ 58$ 57$ 51$ 1$ (6) CAPEX$ 7$ 15$ 31$ 23$ 11 D&A$ 21$ 19$ 16$ 12$ 16 Debt$227$ 128$ 126$126$162 Cash$ 13$ 42$ 67$ 29$ 16
Slide 23: Multiple Earnings Growth Catalysts
Multiple Earnings Growth Catalysts Income StatementCatalysts u Lengthening cycle u Share gain/mid-market Capacity Sales u DuraPlate ® /composite share growth availableu Reefer momentum u Continuous improvement — labor, materials & line rate u Automated assembly lines Gross Margin u Supply Chain — al
Slide 24: Wabash Commitment
Wabash Commitment Achieve operating results Diversify and grow customer base Prepare for all industry cycle dynamics Continue structural margin improvement Grow earnings and cash flow Strengthen balance sheet 24
Slide 25: Gr lat
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