Wabash National Corporation · NYSE:WNC
Wabash National — FD Ashton / Barrington Industrials Conference 2008
34 slides from Wabash National's conference presentation, May 21, 2008
Slide 1: FD Ashton / Barrington Industrials Conference May 21, 2008
FD Ashton / Barrington Industrials Conference May 21, 2008
Slide 2: 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 from those implied by
Slide 3: Investment Highlights
Investment Highlights Market leader: #1 position in North American trailer market Superb brand recognition: Supported by diverse, long-standing customer relationships Innovation leader: Best-in-class technology (e.g., DuraPlate(r)) New leadership: Strong management team & Continuous Improvement (CI)
Slide 4: Company At-A-Glance
Company At-A-Glance Key Facts: Founded as a start-up in 1985 IPO in 1991 - NYSE: WNC Headquartered in Lafayette, IN 3,100 employees 2007 sales of $1.1B 2007 trailer production of ~ 46,500 units #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipme
Slide 5: WNC Product Offering
DuraPlate Pups Arctic Lite(r) Vans Transcraft (r) Flatbeds DuraPlate HD(r) Dry Vans RoadRailer(r) DuraPlate(r) Dry Vans WNC Product Offering FreightPro(r) Dry Vans Dry Vans Refrigerated Doubles Vans Intermodal Platforms
Slide 6: WNC Customer Relationships
WNC Customer Relationships U_S. XPRESS ENTERPRISES, INC. ~Celation Roadway. AVERITT cas ‘Yoliitions
Slide 7: Industry Leading Innovations
Industry Leading Innovations Launch Date Description Innovation DuraPlate Arched Roof 2009 Improved damage resistance and decreased weight Bonding Technologies TrustLock Plus Door Lock 2009 2009 Sidewalls and Logistics (Support Beams and Ties) Proprietary single-lock closing mechanism New DuraPlate
Slide 8: Recognized Leader in Trailer Industry
Recognized Leader in Trailer Industry WNC Competition 45702 171318 WNC Competition 35319 83289 WNC Competition 4659 19259 2007 Total Trailers WNC Competition 5724 26621 WNC Competition 41043 109910 2007 Total Dry Vans 2007 Total Vans 2007 Total Platforms 2007 Total Reefers Source: ACT, WNC, TrailerB
Slide 9: Freight Tonnage
Freight Tonnage DOT's Freight Transportation Services Index Seasonally Adjusted, 2000=100 113.4 March 95 Ko we S 2 © Sd s sv eo SF Ss g » s ys FE Se KK ST SK SK
Slide 10: Industry Outlook
Industry Outlook 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Class 8 Trucks 280722 206555 118682 148236 141429 216521 269408 296474 134518 138239 235028 181195 226456 244179 Total Trailers 314087 275223 140100 142658 183162 235953 256091 279047 216254 160183 186067 231
Slide 11: Van Trailer Forecast
Van Trailer Forecast Source: Van projections based on ACT Research Dry Vans Wabash Market Share Reefers U.S. Dry & Refrigerated Van Trailer Forecast
Slide 12: WNC Expected Shipments
WNC Expected Shipments Better-than-the-industry outlook - 2% market share gain - is predicated on a number of factors including: Quality of our customer base - Includes many of the largest and best- positioned organizations in the freight hauling business DuraPlate composite trailers - Performance a
Slide 13: DuraPlate Composite Panels
DuraPlate Composite Panels High density polyethylene (HDPE) core bonded between two sheets of high-strength steel Composite panel is extremely strong, lightweight, and damage resistant Composite characteristics allow it to flex and absorb impact which helps reduce damage Pre-coated galvanized steel
Slide 14: DuraPlate Growth Opportunity
DuraPlate(r) Growth Opportunity DuraPlate Competition 19 81 Est. DuraPlate(r) Fleet Penetration >330,000 Units Sold Faster growth than existing penetration: >28% Dry Vans sold today are DuraPlate(r) *Source: ACT Research; WNC estimates DuraPlate(r) replacement cycle is beginning 1997 1998 1999 2000
Slide 15: Strategic Plan
Strategic Plan NextSteps WABASH NATIONAL
Slide 16: Strategic Pyramid - Executable Initiatives
Develop New Non-core Business Opportunities Develop Global Joint Ventures/ Alliances Make Strategic Acquisitions Optimize Manufacturing Costs Accelerate Strategic Sourcing Initiative Optimize Inventory Mgmt. Create Purchasing Consortium Expand Customer Base Leverage the WNC Brand. Optimize and Grow
Slide 17: Key Elements of the Plan
Key Elements of the Plan Increase Diversification Improve Operational Excellence Capture Additional Growth Opportunities Reduce Cyclicality Improve Profitability Drive Higher Growth Goal: Transform Wabash National into a diversified industrial manufacturer and service provider by leveraging core com
Slide 18: DuraPlate Products Group Non-Core Business Development
DuraPlate(r) Products Group Non-Core Business Development Leverage materials and skills into business opportunities in addition to selling trailers Grow DuraPlate product sales Find and develop new business opportunities to diversify and grow the company Corporate Growth Diversification into markets
Slide 19: Current DuraPlate Products Markets
Current DuraPlate(r) Products Markets Utility Truck Bodies/Cargo Trailers Expanding relationship with Utilimaster. Developing opportunities with other truck body OEMs. Working on Cargo Trailer OEM segment. segment. segment. segment. segment. segment. segment. segment. Portable Containers Industry Cu
Slide 20: Operational Excellence Initiatives
Operational Excellence Initiatives Optimize Manufacturing Process Southern Plant Lafayette Transformation Strategic Sourcing Purchasing Consortium Inventory Optimization Offset the impact of rising raw materials prices Reduce capital allocation to inventory management Lower materials costs through g
Slide 21: Lafayette Transformation
Lafayette Transformation Enhance Manufacturing Process Lafayette Transformation Streamline production processes and improve manufacturing efficiency Optimize existing line configurations Drive margin improvement Improve material handling processes Consolidate dislocated warehouse facilities Reduce l
Slide 22: Lafayette North Campus - Future Layout
Lafayette North Campus - Future Layout Shipping Space Made Available Consolidated Warehouse Production Line Lafayette South Campus Over 190,000 square feet of space under roof made available for other opportunities. DCO 3
Slide 23: Inventory Management
Inventory Management Accomplishments: Warehouse consolidation (15 to 10) Improved ERP utilization $30M inventory reduction in 2007 Notable improvement in inventory turns Storage Off Site MFG Transcraft WWP Total PLAN 12/1/2006 30.7 4.4 11.2 4.5 7.3 58.1 59 1/1/2007 31 5.3 12 4.3 7.7 60.3 58 2/1/2007
Slide 24: Strategic Sourcing
Strategic Sourcing Continually improve purchasing activities Develop new suppliers, with focus internationally Emphasis in Asia Build low-cost global sourcing platform Currently 5% of materials are purchased internationally Goal is to move 20% of parts and components to low cost countries (LCC) Area
Slide 25: Purchase Consortium
Purchase Consortium Wabash National Utility Vans Cargo Vans Trailer Manufacturers Aftermarket Parts Key Participants: Participative Consortium (WNC as Principal) Initially four to five consortium members (Associate Members) Centrally administered and maintained by WNC with diminutive costs Leverage
Slide 26: Key Metrics Scorecard
Key Metrics Scorecard Reduce Cyclicality Top-Line Growth Improve Margins Productivity Improvements Earnings Growth Middle Market Strategy/Increased Market Share ^ ^ ^ ^ Process Technology Innovation ^ ^ ^ ERP System ^ ^ ^ Operational Excellence ^ ^ ^ Strategic Sourcing ^ ^ New Leg ^ ^ ^ New Products
Slide 27: Key Metrics Scorecard (cont.)
Key Metrics Scorecard (cont.) Strategic Initiative Key Metrics Operational Excellence Operational Excellence Southern Plant Full utilization within 24 months from start Lafayette Transformation Assembly line update completed in 1H'09 Warehouse consolidation completed by Q2-09 Strategic Sourcing 5% s
Slide 28: Financials
ee, WABASH, eet OUR INNOVATION MOVES THE WORLD™ Financials
Slide 29: Financial Highlights
Financial Highlights 2004 2005 2006 2007 1Q'08 East 1041.1 1213.7 1312.2 1102.5 161.06 2004 2005 2006 2007 1Q'08 East 1.8 3.06 0.3 0.52 -0.21 Revenue Diluted EPS ($ millions)
Slide 30: Financial Highlights (cont.)
Financial Highlights (cont.) 2004 2005 2006 2007 1Q'08 East 0.12 0.110000000046565 0.081 0.08 0.0366 Gross Margin EBITDA Margin 2004 2005 2006 2007 1Q08 East 0.086 0.079 0.033 0.05 -0.02
Slide 31: Financial Highlights (cont.)
Financial Highlights (cont.) 2004 2005 2006 2007 1Q'08 East 56.9 50.5 51.8 59.3 -6.27 Op. Cash Flow Consistent annual OCF ($ millions) 2004 2005 2006 2007 1Q'08 Total Equity $164.6 $278.7 $278.0 $279.9 $272.8 Debt $127.5 $125.5 $125.0 $104.5 $78.6 Cash $41.9 $67.4 $29.9 $41.2 $6.3 Inventory Turnover
Slide 32: Financial Outlook
Financial Outlook Expectations 2007 Long-term Revenue $1.1B >$1.5B Market Share (total trailers) 21% 23% Non-trailer Revenue <$5M > $75M Gross Margins 8% > 10% EBITDA Margins 5% > 8%
Slide 33: Uses of Cash
Uses of Cash Priority of capital allocation decisions Investment in the business Opportunistic investments Strategic bolt-on acquisitions Quarterly cash dividend Share repurchase program Offset dilution Refinance convertible notes
Slide 34: VWWABA
VWWABA ® OUR INNOVATION MOVES THE WORLD™
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