Slide 1: Investor Update August 2012
INVESTOR UPDATE August 2012 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
2 S AFE H ARBOR S TATEMENT 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 m
Slide 3: Investment Highlights
3 x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Recent acquisition of Walker Group Holdings accelerates diversification x Best - in - class, technologically innovative products x Truc
Slide 4: Company History
4 C OMPANY H ISTORY Acquired assets of leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position 1985 1991 1994 1996 1997 1999 2006 2008 2009 2011 2012 Introduced the DuraPlate ® composite dry van trailer Record trailer production of 70,000 units
Slide 5: Strategic Segments and Business Units
5 S TRATEGIC S EGMENTS AND B USINESS U NITS Commercial Trailer Products Wabash National Corporation Diversified Products Retail • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers • Wabash Composites • Wabash Energy & Environmental Solutions • Walker Group Companies • Wabash Woo
Slide 6: Commercial Trailer Products
6 C OMMERCIAL T RAILER P RODUCTS Commercial Trailer Products Wabash National Corporation • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers
Slide 7: Commercial Trailer Key Strengths
7 C OMMERCIAL T RAILER P RODUCTS : K EY S TRENGTHS x #1 in van and platform trailer production for 18 of the past 24 years* x #1 in dry van semi - trailer production* x #3 in refrigerated van semi - trailer production* x Top 3 in platform trailer production* x Blue - chip customer base x 60+ patents
Slide 8: Commercial Trailer Long History of Innovation
8 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Leading the way in transportation technologies that deliver value Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum.
Slide 9: Commercial Trailer Products
9 C OMMERCIAL T RAILER P RODUCTS Dry Freight Vans: 82% / Total Refrigerated Vans: 12% / Total Platform Trailers: 4% / Total Specialty Equipment: 2% / Total Note: Percentages based on WNC shipments 2009 - 2011 Comprehensive Product Line Dry Vans 82% Refrigerated Vans 12% Platforms 4% Other Trailers 2
Slide 10: Commercial Trailer Customers
10 C OMMERCIAL T RAILER P RODUCTS : C USTOMERS Wabash National Customers • 54% of Top 50 For - Hire Fleets • 41% of Top 100 For - Hire Fleets Preferred by the industry’s leading carriers Source: 2010 Transport Topics 100
Slide 11: Commercial Trailer Distribution
11 Extensive sales and support network with 200+ locations Wabash National Trailer Centers retail network Platform Dealer Dry/Refrigerated Dealer C OMMERCIAL T RAILER P RODUCTS : D ISTRIBUTION
Slide 12: Commercial Trailer Demand
12 C OMMERCIAL T RAILER P RODUCTS Tonnage is at higher levels than in 2010 and 2011 Source: ATA C OMMERCIAL T RAILER P RODUCTS : D EMAND -20% -15% -10% -5% 0% 5% 10% 15% 20% 90 95 100 105 110 115 120 125 130 2006 2007 2008 2009 2010 2011 2012 Truck Tonnage Index (ATA) TTI (Seas. Adjusted) Y/Y % Chan
Slide 13: Industry Outlook
13 C OMMERCIAL T RAILER P RODUCTS Early innings of trailer cycle that could be one of the longest and strongest in history Source: ACT Research and FTR Associates. FTR numbers represent trailer production . ACT Forecast by Segment 2011 2012 2013 2014 2015 2016 Dry Van (Wabash) 116,618 135,300 150,00
Slide 14: 2012 Outlook: Industry Forecast
14 DRY VANS: Population & Average Age 1979 - 2017 ACT Research Co., LLC: Copyright 2012 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Population (000s) 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 Age (in Years) POPULATION AVERAGE AGE 0 50,
Slide 15: Trucking boosts share of total tonnage
15 C OMMERCIAL T RAILER P RODUCTS Trucking boosts share of total tonnage to 70% by 2022 Source: ATA Freight Transportation Forecast to 2023 Overall Growth Trends • Total tonnage will increase an estimated 13.7B tons in 2011 to 16.6B tons in 2023 • Estimated Freight Increase ’12 - ’17 ’18 - ’23 Gener
Slide 16: Diversified Products
16 D IVERSIFIED P RODUCTS : Wabash National Corporation Diversified Products • Wabash Composites • Wabash Energy & Environmental Solutions • Walker Group Companies • Wabash Wood Products
Slide 17: Diversified: Walker Group
17 D IVERSIFIED P RODUCTS : W ALKER G ROUP x #1 in Liquid Transportation Systems in North America x Complements Wabash National’s position as #1 van semi - trailer manufacturer in North America x Commonality of culture and history of innovation x Strong brand and premium products x Blue - chip and n
Slide 18: Walker Group Market Position
18 D IVERSIFIED P RODUCTS : W ALKER G ROUP Market Position Products and Markets Market Share Brands # 1 ALL liquid - transportation systems in North America 33% # 1 Stainless - steel liquid - transportation systems in North America 61% # 1 Stainless - steel liquid - tank trailers for the North Ameri
Slide 19: Walker Group Products
19 D IVERSIFIED P RODUCTS : W ALKER G ROUP Stainless - Steel Dairy Trailer Refined Petroleum Truck 7,000 Gallon Refueler Towable Hydrant Dispenser Liquid Tank Trailers Truck - Mounted Tanks Aviation Refuelers Carts and Hydrant Dispensers Stainless - Steel Vertical Silos WEP Processor Pharmair Contai
Slide 20: Walker Group End-Markets and Geographies
20 D IVERSIFIED P RODUCTS : W ALKER G ROUP End - Markets Geographies Products and Services Blue - Chip Customer Base Oil, Gas & Energy Services Dairy, Food and Beverage Chemical Pharmaceuticals Aviation Defense Environmental Note: 1. All information based off of 2011 revenues US, 87% Australia, 0% A
Slide 21: Diversified: Wabash Composites
21 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES x Established parent company and brand x Preferred industry partner: DOT, DOE, Navistar, etc. x Growing blue - chip customer base x Proven Performance: 400,000+ DuraPlate trailers on the road x Strong research and development x Flexible, scalable manuf
Slide 22: Wabash Composites New Product Offerings
22 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES New product offerings constantly in evaluation and development DuraPlate® Composite Material • Pre - coated, galvanized steel skins • Foamed HDPE Core • Extremely strong • Light weight • Damage resistant • Multiple industrial applications Steel Skins H
Slide 23: Wabash Composites Demand Drivers
23 200,000 300,000 400,000 500,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Units Cl. 3 - 7 Truck NAFTA Retail Sales Forecast D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES Demand Drivers • Forecasted growth in Truck Body market drives DuraPlate® panel sales growth • CARB (California Air Reso
Slide 24: Wabash Energy & Environmental Solutions
24 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL S OLUTIONS x Leveraged existing physical assets for expedited market entry x Well - established best practices and continuous improvement x Corporate purchasing leverage for greater economies of scale x Extensive experience with raw materi
Slide 25: Expanding Energy & Environmental Product Portfolio
25 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Rapidly expanding our Energy & Environmental product portfolio Further Penetration of Energy Sector • Leverage industrial expertise in welding, forming, fabrication, and assembly into products outside of our traditional trailer business •
Slide 26: Energy & Environmental Opportunities
26 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Numerous opportunities being evaluated and pursued… Sample Types of Equipment Used in the Oil and Gas Production Process Production Drilling Wellbore Preparation Fracking Production Vacuum Boxes Roll - Off Containers Mixers Container Trail
Slide 27: Energy sector projects long-term strength
27 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Energy sector projects long - term strength Source: U.S. Energy Information Administration Source: Baker Hughes Inc. Source: Baker Hughes Inc. Source: U.S. Energy Information Administration
Slide 28: Financials
FINANCIALS
Slide 29: Financial Highlights
29 0 200 400 600 800 1,000 1,200 2007 2008 2009 2010 2011 2Q12 YTD $1,103 $836 $338 $640 $1,187 $640 -8% -4% 0% 4% 8% 12% 2007 2008 2009 2010 2011 2Q12 YTD 8% 3% - 7% 4% 6% 9% Revenue ($ millions) Gross Margin Net Working Capital as % of Revenue (3) (1) 2008 operating income excludes a non - cash im
Slide 30: TTM Revenue and Operating EBITDA
30 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 ($60) ($40) ($20) $0 $20 $40 $60 $80 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 TTM Revenue ($ millions) TTM Operating E
Slide 31: Capital Structure and Liquidity
31 Capital Structure and Liquidity Strong Liquidity & Flexible Capital Structure 0 50 100 150 200 250 300 2012 2013 2014 2015 2016 2017 2018 2019 ($ millions) Required Minimum Maturities (3)(4) Cost Effective Debt Structure • $150 Million ABL Revolving Facility – Sr. Secured, matures 5/2017, floatin
Slide 32: Walker and Wabash Financial Information
32 240 257 344 20.6% 19.4% 21.0% 0 100 200 300 400 2009 2010 2011 19% 20% 21% 22% Walker Wabash & Walker Financial Information Revenue Adj. EBITDA Adj. EBITDA Margin EBIT EBIT Margin Capex Employees $1,187MM $344MM $39MM $53MM 3.3% 15.4% $19MM $39MM 1.6% 11.2% $7MM $3MM 4,200 1,200 Wabash National C
Slide 33: Appendix
APPENDIX
Slide 34: Consolidated Income Statement
34 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands, except per share amounts) 2007 2008 2009 2010 2011 YTD Q2 2012 Net sales 1,102,544$ 836,213$ 337,840$ 640,372$ 1,187,244$ 640,090$ Cost of sales 1,010,823 815,289 360,750 612,289 1,120,524 580,680 Gross profit 91,721$ 20,924$ (22,910)$ 28,083$ 66,
Slide 35: Consolidated Balance Sheet
35 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2007 2008 2009 2010 2011 6/30/2012 ASSETS Current assets Cash and cash equivalents 41,224$ 29,766$ 1,108$ 21,200$ 19,976$ 31,601$ Accounts receivable 68,752 37,925 17,081 37,853 52,219 102,997 Inventories 113,125 92,896 51,801 110,850 189,533 250,163
Slide 36: Consolidated Cash Flows
36 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2007 2008 2009 2010 2011 YTD Q2 2012 Cash flows from operating activities Net income (loss) 16,285$ (125,826)$ (101,765)$ (141,760)$ 15,042$ 7,006$ Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreci
Slide 37: Reconciliation of Non-GAAP Measures
37 R ECONCILIATION OF N ON - GAAP M EASURES Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA ($ in millions) 2007 2008 2009 2010 2011 Net income (loss) 16.3$ (125.8)$ (101.8)$ (141.8)$ 15.0$ Income tax expense (benefit) 8.4
Slide 38: Reconciliation of Non-GAAP Measures (TTM)
38 Notes: R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA 2008 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net (loss) income (125.8)$ (147.7)$ (16
Slide 39: Reconciliation of Non-GAAP Measures – Walker
39 R ECONCILIATION OF N ON - GAAP M EASURES – W ALKER ($ in millions) Note: This table reconciles annual net income for the periods presented to the non - GAAP measure of Adjusted EBITDA (1) 2009 includes charges related to prior acquisitions, an asset impairment, restructuring and the relocation of
Slide 40: 2011 Product Line Revenue
40 2011 P RODUCT L INE R EVENUE ($ 000s) Commercial Diversified Corporate & Commercial Diversified Corporate & Trailer Products Products Retail Eliminations Trailer Products Products Retail Eliminations $ $ $ $ $ % $ $ $ $ $ % New trailers 194,966 - 13,567 (14,370) 194,163 87.5 246,847 - 20,558 (15,
Slide 41: 2010 Product Line Revenue
41 2010 P RODUCT L INE R EVENUE ($ 000s) Commercial Diversified Corporate & Trailer Products Products Retail Eliminations $ $ $ $ $ % New trailers 543,963 - 38,497 (31,990) 550,470 86.0 Used trailers 9,215 - 13,404 - 22,619 3.5 Components, parts and service 3,703 23,425 37,150 (2,622) 61,656 9.6 Equ