Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (February 2010)
27 slides from Wabash National's investor presentation, Feb 10, 2010
Slide 1: Investor Update February 2010
mie, £ WABASH; ea OUR INNOVATION MOVES THE WORLD™ Investor Update February 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 materially
Slide 3: Company At-A-Glance
Company At-A-Glance #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipment + 23% market share in 2008 (5 -mitions) 2008 2009 + No. 1 in Van Trailer production Revenue By Segment Manufacturing $694.2 $265.5 + No. 2 in Platform Trailer production R
Slide 4: Comprehensive Product Offering
Comprehensive Product Offering Refrigerated Vans [aa 3%-6% of Sales _—_—_eoe DuraPlate® Dry Vans DuraPlate HD® Dry Vans Steel Platforms Eagle ® Flatbed == D-Eagle @ Drop Deck <2% of Sales _ (_<2%of Sales Benson ™ Dumps Aluminum Platforms Dump Trailers <2% of Sales rs Benson ™ Aluminum a 7 RoadRailer
Slide 5: Premier Carrier Relationships
Premier Carrier Relationships KENGHE GE Commay PELand DART TB . ‘olsitions SCHNEIDER, = _ ase AMERTT = XMS ERTS, 34% of Top 100 For-Hire Fleets are Wabash customer: 44% of Top 50 For-Hire Fleets are Wabash customers
Slide 6: Geographic Sales & Distribution Overview
Geographic Sales & Distribution Overview VANS + Factory Direct - 4 salespeople Independent Dealers + 25 Dealers - 57 Locations - 100+ salespeople FLATBEDS Full-Line - 39 Dealers - 83 locations + Steel & Combo Platform - 40 Dealers - 56 locations ‘Aluminum Platform - 2 Dealers - 2 locations Dump Deal
Slide 7: Key Initiatives
Key Initiatives bss + Product Portfolio Opportunities + Industry Leading Technology + DuraPlate® Products Group + Lafayette Manufacturing Transformation Excellence + Purchasing Consortium + Cost Reduction Initiatives + Recapitalization
Slide 8: Product Portfolio Opportunities
Product Portfolio Opportunities DuraPlate® * DuraPlate remains the product innovator and dry van leader ~ growing from 26% of new dry van sales in 2002 to Strong Wabash Position/Share (%) o Reefer + Wabash Reefer product is now viewed as equal to or superior to the competion. Wabash continues to inc
Slide 9: A History of Innovation
A History of Innovation Wabash National was established in 1985; Introduced the aluminum plate trailer, becoming the dominant industry producer; Developed new technologies by working with the world’s largest truckload carriers; In 1996 the first composite dry van, DuraPlate®, was introduced. Today t
Slide 10: Industry Leading Innovations
Industry Leading Innovations Innovation Launch Date Bonded Skylight 2008 Reduces leaks and simplifies repairs TrustLock Plus® Door Lock 2009 Proprietary single-lock closing mechanism DuraPlate® AeroSkit ™ & Support 2008 Proven 5.6% fuel efficiency improvement Bonding Technologies 2009 ‘Sidewalls and
Slide 11: Leveraging DuraPlate Innovation
Leveraging DuraPlate® Innovation Pre-coated galvanized steel skin DuraPlate Composite Sidewall Panels + High density polyethylene (HDPE) core bonded between two sheets of high-strength steel + Lower cost of ownership: + Longer life + Lower maintenance cost + Increased durability + Enhanced trade in
Slide 12: Purchasing Consortium
Purchasing Consortium Established to identify and increase efficiencies and economies of scale in the procurement of raw materials, component parts and services to the economic benefit of its Members Achieve incremental cost reduction not available through individual efforts Wabash Each Member assoc
Slide 13: Historical Trailer Cycles
Historical Trailer Cycles Industry Trailer Net Orders 1991 - Present Source: ACT Research 40,000 WNC Units cycle Lows | Units Feb."91 | 7,555 Dec.'95 | 4,468 vuly'o1 | 6,472 Dec.'08 | 2,682 Late '90s Cycle Current Cycle Ls n 3383883832538 3985 88 ¢ + Previous two cycles lasted 58 and 67 months. Curr
Slide 14: Historical Industry Volumes
Historical Industry Volumes Industry Production 1974 - Present 250,000 A L. \ J\ ‘ \_ £\ weopmhecll Natl SVN Pam: oa Vo ‘Source: 1974-1989:SMCC/TBB; 1989-2009: ACT Research 2009 Was the Lowest Trailer Industry Volume Since 1975 as asap —
Slide 15: Truck Tonnage
Truck Tonnage ATA’s Truck Tonnage Index (TTI) 7 pe VN - fe \, 95 90 > § 8 $$ 8 8 § 8 8 ¢ % MIM — the second consec!
Slide 16: Trailer Loadings
Trailer Loadings Loadings by Trailer Type [thous; SA] 25,000 omedie eee eee 20,000 10,000 ¢ S pork = § 15,000 toe 3 S 3 & 10,000 = i ae S 5,000 é 0 vo) SSsSSSSERSSSsssssssssee SSSeesteesesesesaseaesetezeazeas S222 2255 52252 2252555 —Dry Van ——Reefer —— Platform Hes Trailer Freight Loadings are expe
Slide 17: Industry Outlook
Industry Outlook Total Trailer Shipments 2010 2011 2012 2013 2014 ACT 102,525 175,400 224,550 247,500 (234,950 FTIR 93,212 143,945 210,265, 225,000 NIA 2010 2011 2012 2013 2014 ACT 42,000 90,000 125,000 140,000 135,000 % Change 41.2% 114.3% 38.9% 12.0% -3.6% Sou: ACT Resch and FT Aseoites Replacemen
Slide 18: Financials
mie, WABASH See OUR INNOVATION MOVES THE WORLD” Financials
Slide 19: Financial Highlights
Financial Highlights WABASH Revenue st 14007 $12137 ee $1.1025 1000 2 so 2 & «0 200 2005 2007 Gross Margin 12% “Ba 3% 13% 2007 $8362 2008 2008 $337.8 2008 Diluted EPS 6 $2.06 4 a oe eer . —- - 2 a 6 2005-2006 -~—« 007 ——«2008, Operating EBITDA Margin 12% 13% 2005 200620072008 Sea -BOS. = $3.48 2009
Slide 20: Cost Actions Implemented to Date
Cost Actions Implemented to Date Compensation & Benefit Reductions Headcount reductions of 250+ salaried positions; down 40% since 2007 15% reduction in all salary compensation; 17% for executives + Approximately 10% hourly pay reduction Reduction of standard work week hours for most associates + Su
Slide 21: Quarter Financial Highlights
8 Quarter Financial Highlights WABASH Revenue 2 $243.0 $930.7 $201.5 200 $161.1 150 100 $77.9 $86.2 S883 $854 _ | J | i ° Q108 208 Q308 Q408 Q109 Q209 a309 a409 Operating EBITDA 50 $3.5 (S millions) $19 og ao» a oj) - 646) && § (10.0 ao 10.7) E cso) (185) 200) ba ($216) Q108 Q208 308 Q408 Q109 209 Q
Slide 22: August 2009 Recapitalization
August 2009 Recapitalization Lincolnshire Investment Trailer Investments, LLC, purchased $35M of redeemable preferred stock in three separate and newly-issued series with annual dividend rates averaging 16%; Dividends payments may be accrued for the first two years to the extent cash flow does not p
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Waza "Sin 0008) Tee Tea bar Dae Accets Caan and Cas Ege 85 $1 S29765 § 1.108 Accouats Recei 062 732 37908 ros weston 1333 13,125 92.96 sigo1 Defered Tases 6 1431 Prepaid Expenses and Other 4 4016 5207 osm Total Curent Assets 308218 2a 661 165998 76857 PLANT ANDEQUPMENT, ne
Slide 24: Free Cash Flow
Free Cash Flow bonis ($ millions) 2005 2006 2007 2008 2009 | | 88) | ee [a | [ns a a alee ale ey | 26 | ne | saa | aaa | [ewe | ze ao r 629 | $ 503 | $ (11.0) r ra = EBITDA* $974
Slide 25: Core Strengths Today & Tomorrow
Core Strengths Today & Tomorrow Well positioned to manage through the current cycle.. + Flight to quality: Strong value proposition and unmatched suite of products with #1 position in North American trailer market + Strong customer relationships: Long-standing customer relationships with large carri
Slide 26: Reconciliation of Non-GAAP Measures
WABASH] Reconciliation of Non-GAAP Measures (Sin mitions) Net income (loss) Income tax (benefit) expense Increase in fair value of warrant Interest expense Depreciation and amortization Stock-based compensatio: Impairment of goodwill Other non-operating (income) expense Operating EBITDA Operating EB
Slide 27: Reconciliation of Non-GAAP Measures
WABASH] Reconciliation of Non-GAAP Measures “+ ‘Three Months Ended Cece March 31, Tune 30. ‘September30, _ December 31, 2009 2009 2009 2009 Net (loss) income > GS) S GH) S CAH S 109 Income tax expense (benefit) - - 1) S$ 3.0) Increase (Decrease) in fair value of warrant - - 540 S$ 20.5) Interest exp
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