Wabash National Corporation · NYSE:WNC
Wabash National — Stifel 2023 Transportation & Logistics Conference
21 slides from Wabash National's conference presentation, Feb 7, 2023
Slide 1: Stifel 2023 Transportation & Logistics Conference
Stifel 2023 Transportation & Logistics Conference Brent Yeagy - President & CEO Mike Pettit – SVP & CFO February 7, 2023
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts of future events. All statements contained in this prese
Slide 3: Key Messages
3 Key Messages • Wabash is the leader in transportation solutions with a portfolio of equipment spanning from First to Final Mile • Refreshed vision, mission and purpose pair with reorganization, rebranding to support strategy • Focus on strategic initiatives to reduce cyclicality and drive margin a
Slide 4: Wabash Snapshot
4WNC Investor Day | Wabash Snapshot (NYSE: WNC) Leveraging the Industry’s Broadest Portfolio Across All Phases of Transportation 1985 Lafayette, IN $1.2B1 6,900 15 $2.5B 6.7% Founded Headquarters Market-cap Global Employees Manufacturing Locations 2022 Revenue 2022 Operating Margin • Long-haul route
Slide 5: New Purpose, Vision and Mission
5WNC Investor Day | New Purpose, Vision and Mission PURPOSE To change how the world reaches you VISION To be the innovation leader of connected solutions for the transportation, logistics, and distribution industries MISSION To enable our customers to succeed with breakthrough ideas and solutions th
Slide 6: Our 2025 Goals
6WNC Investor Day | Our 2025 Goals Prior Goals Announced at 2019 ID 2022 Achievements 2025 Goals Revenue ~$2.2B $2.5B $3.0B Recurring Revenue1 - $193M $300M Operating Margin 8% 6.7% 9% Operating EBITDA2 - $224M $330M Operating EBITDA Margin2 - 9% 11% EPS $1.90 - $2.10 $2.25 $3.50 NEW 1 Recurring rev
Slide 7: Strategic Priorities Fueling Long-term Profitable Growth
7WNC Investor Day | Strategic Priorities Fueling Long-term Profitable Growth EXPAND GROW FOCUS Cold Chain Market Share (Refrigerated Applications) in Parts & Services on eCommerce & Logistics Disruption • Capture opportunities from goods moved through temp-controlled cold chain • Bring differentiate
Slide 8: Well-Positioned to Benefit from Favorable Secular Growth Drivers
8WNC Investor Day | eCommerce driving increased freight touches and increasing logistics complexity Well-Positioned to Benefit from Favorable Secular Growth Drivers Strong Tailwinds to Secular Demand Trends L O N G E R - T E R M D E M AN D T R E N D S U N D E R P I N N E D B Y P O S I T I V E D I S
Slide 9: Customer-centric Organization Enables Better Execution of First to Final Mile Strategy
9WNC Investor Day | Customer-centric Organization Enables Better Execution of First to Final Mile Strategy Providing One Face to Customers for Our First to Final Mile Portfolio of Solutions Continuing to Progress and Enhance Our Customer Experience… FROM TO • Slightly better than average, transactio
Slide 10: Evolving Our Parts & Services Portfolio through an Innovative Business Platform
10WNC Investor Day | Evolving Our Parts & Services Portfolio through an Innovative Business Platform Creating a Self-Sustaining Platform Ecosystem DEALERS SUPPLIERS CUSTOMER FACING DIGITAL CAPABILITIES CUSTOMERS DISTRIBUTION Connecting the Dots Across the Transportation Ecosystem Helping to Facilita
Slide 11: Growing Our Higher Margin Parts & Services Segment
11WNC Investor Day | Growing Our Higher Margin Parts & Services Segment Growth in Parts & Services Increases Recurring Revenue within Wabash’s Portfolio $177 $193 $230 $300 2021 2022 2023E 2025E Increasing Amount of Recurring Revenue1 • Increasing recurring revenue provides increased stability throu
Slide 12: Wabash Parts Distribution Raised the Bar
12WNC Investor Day | Wabash Parts Distribution Raised the Bar by Delivering Breakthrough Parts Distribution Capabilities B A C K G R O U N D Customers looking to optimize sourcing, distribution, and services Wabash dealers have historically ordered $100M+ of parts per year, typically from multiple s
Slide 13: Wabash Marketplace
13 Wabash Marketplace Data & Performance Finance & Insurance Managed Service Network Aftermarket Parts Equipment Parking & Storage, Toll Proc Used Equipment Upfit Packages & Service TaaS • Wabash Marketplace to efficiently connect customers, dealers and suppliers • Groundwork laid with newly created
Slide 14: Financial Outlook Highlights
14 • $2.8B to $3.0B Revenue • $2.70 to $3.00 EPS • Supported by $2.8B of backlog expected to ship in the next 12 months ($3.4B total backlog as of 12/31/2022) • $3.0B Revenue • 11% Operating EBITDA Margin • $3.50 EPS 2025 Targets2023 Guidance Making Substantial Near-Term Progress Toward Long-Term Fi
Slide 15: 3-Year Financial Performance
15WNC Investor Day | 3-Year Financial Performance A More Resilient Foundation with More Recurring Revenue and an Improving Margin Profile $1,481 $1,803 $2,502 2020 2021 2022 Revenue ($M) $22.5 $60.0 $166.6 1.5% 3.3% 6.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $1
Slide 16: Flexible Balance Sheet and Strong Liquidity Provide Financial Flexibility
16WNC Investor Day | Flexible Balance Sheet and Strong Liquidity Provide Financial Flexibility Long-term Leverage Ratio Target of 2.0x – 3.0x December 31, 2022 Cash & Cash Equivalents¹ $ 57 Debt $ 400 Net Debt $ 343 2023F Operating EBITDA² $ 285 Net Debt to Operating EBITDA² 1.2x Available Credit Un
Slide 17: Appendix
APPENDIX
Slide 18: Reconciliation of Adjusted Operating Income
18 Reconciliation of Adjusted Operating Income1 Unaudited - dollars in thousands Twelve Months Ended December 31, 2022 2021 2020 Income (loss) from operations $ 166,642 $ 33,542 $ (85,608) Adjustments: Trade names & trademarks impairment — 28,346 — Gain on divestiture of Extract Technology — (1,874)
Slide 19: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
19 Reconciliation of Adjusted Net Income Attributable to Common Stockholders and Adjusted Diluted EPS Adjusted Net Income Attributable to Common Stockholders1: Twelve Months Ended December 31, 2022 2021 2020 Net income (loss) attributable to common stockholders $ 112,258 $ 1,164 $ (97,412) Adjustmen
Slide 20: Reconciliation of Free Cash Flow
20 Reconciliation of Free Cash Flow 1 Free cash flow is defined as net cash provided by (used in) operating activities minus cash payments for capital expenditures. Unaudited - dollars in thousands Twelve Months Ended December 31, 2022 2021 2020 Net cash provided by (used in) operating activities $
Slide 21: Other Non-GAAP Reconciliations
21 Other Non-GAAP Reconciliations1 1 “Total Cash” in the 2022 column excludes cash held by consolidated variable interest entity. Operating EBITDA 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net (loss) income $ 15 $ 106 $ 47 $ 61 $ 104 $ 119 $ 111 $ 69 $ 90 $ (97) $ 1 $ 113 Income ta
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