Gatx Corporation · NYSE:GATX
Gatx — Jefferies Financial Services Conference 2007
16 slides from Gatx's conference presentation, Jun 20, 2007
Slide 1: GATX Corporation Jefferies Financial Services Conference
GATX Corporation Jefferies Financial Services Conference June 20, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and t
Slide 3: GATX Corporation
GATX Corporation GATX Corporation provides lease financing and related services to customers operating rail, marine and other targeted assets GATX also: Provides an attractive risk-adjusted return to shareholders Is an excellent operator focused on providing quality services to customers Provides cl
Slide 4: GATX Corporate History
GATX Corporate History Founded in 1898 as a railcar lessor Listed on NYSE in 1916 Initiated quarterly dividends in 1919 Paid without interruption since Railcar leasing remains the foundation of GATX
Slide 5: Business Profile
Business Profile Rail Specialty ASC Other Assets 0.79 0.08 0.05 0.08 Strengths & Keys to Success GATX leases long-lived, widely- used assets Railcars - Marine Vessels Locomotives - Industrial Equipment Assets that GATX uniquely understands Assets requiring valuable services that GATX provides Rail 7
Slide 6: Rail
Rail GATX's largest, most valuable franchise One of the largest railcar and locomotive lessors in North America and the world A leading North American tank car lessor Own, manage or have interest in about 161,000 railcars worldwide Expanding European presence with approximately 41,000 cars Excellent
Slide 7: GATX Worldwide Fleet
GATX Worldwide Fleet General Service Tank Cars High Pressure Tank Cars Specialty Covered Hoppers Gravity Covered Hoppers Open Hoppers & Gondolas Other GATX Worldwide Owned Fleet (excl Spf) 0.4925 0.1117 0.1391 0.1139 0.0793 0.0636 GATX Worldwide Owned Fleet 129,000 railcars as of 12/31/06 Tank Cars
Slide 8: Rail Market Environment & GATX Market Environment
Rail Market Environment & GATX Market Environment Industry-wide order backlog high New car availability limited in near-term Car prices high by historic standards Rail traffic levels showing some weakness GATX Fleet utilization high Lease rates remaining relatively strong Extending lease term on new
Slide 9: Specialty
Specialty Marine Industrial Equipment Aircraft Engines Other Specialty Owned Portfolio 0.4 0.25 0.06 0.29 Specialty focuses primarily on marine and industrial equipment Marine: co-investments primarily in new builds with blue-water shipping pool operators Industrial Equipment Finance: provides tailo
Slide 10: Marine Blue Water Joint Ventures
Marine Blue Water Joint Ventures Partners are shipping pool operators with decades of shipping experience, reputations for outstanding service, and shared investment philosophy Our jointly-owned vessels are a small part of the overall pool of vessels operated by our partners Overlap with GATX's rail
Slide 11: Marine Current Market
Marine Current Market Market across all segments is firm to strong Freight rates (charter and day rates) and vessel values are higher than 10-year averages in most segments Termed the "China effect" as demand in China for a broad range of products produced internationally is very high GATX returns a
Slide 12: Industrial Equipment Finance (IEF)
Industrial Equipment Finance (IEF) Major emphasis on equipment values and GATX's expertise/experience in certain asset classes Target industries include: Transportation - Energy Agriculture - Food Processing Manufacturing - Construction Packaging - Automotive Mining Transaction size: $3-$30 million
Slide 13: American Steamship Company (ASC)
American Steamship Company (ASC) ASC provides transportation of dry-bulk commodities on the Great Lakes through a fleet of 18 self-unloading vessels Transport a variety of dry-bulk commodities including iron ore pellets, coal, and limestone aggregates ASC has been operating on the Great Lakes for 10
Slide 14: ASC Market
ASC Market 2000 2001 2002 2003 2004 2005 U.S.-Flag Cargo Carriage - Net Tons 114.1 101.9 101.5 94.7 111.1 107.7 2006 Iron Ore Coal Limestone Aggregates Other ASC Commodities Carried - Net Tons 0.4 0.35 0.15 0.03 Approximately 80% of the cargos carried by U.S.-Flag Great Lakes vessels are destined fo
Slide 15: Investment Volume (Continuing Operations)
Investment Volume (Continuing Operations) 2002 2003 2004 2005 2006 Rail 117.5 249.6 489.9 402.9 533.6 Specialty 327.3 130.9 22.7 92.6 94.1 ASC 0 0 20.6 3.2 127.7 Other 1.7 20.2 1.6 4.5 7.7 $446.5 $400.7 $534.8 $503.2 $763.1 $ Millions
Slide 16: Capitalizing on Strengths
Capitalizing on Strengths Company positioned for more stable, attractive, long-term growth Strengthening global rail franchise Disciplined investment across assets