Gatx Corporation · NYSE:GATX
Gatx — Investor Presentation (May 2006)
20 slides from Gatx's investor presentation, May 9, 2006
Slide 1: GATX Corporation May 2006
GATX Corporation May 2006 NYSE: GMT SINCE 1898
Slide 2: Forward-Looking Statements
NYSE: GMT Forward-Looking Statements Certain statements may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “inten
Slide 3: GATX Corporation
GATX Corporation GATX Corporation provides lease financing and related services to customers operating rail, air, marine and other targeted assets. – Founded in 1898 as a railcar lessor – Railcar leasing remains the most valuable franchise business Rail 63% Air 25% Specialty 7% Corporate /Other 5% A
Slide 4: Strengths: Keys to Success
page 4 SINCE 1898 GATX Strengths: Keys to Success · Foundation of GATX is the leasing of longlived, widely-used assets – Railcars — Marine Vessels – Locomotives — Industrial Equipment – Aircraft · Assets in which we possess a unique understanding of what drives value · Assets that we provide valuabl
Slide 5: Rail Fleet
page 6 SINCE 1898 GATX Rail Fleet Boxcars & Gondolas 6% GATX Rail Worldwide Owned Fleet 128,000 railcars as of 12/31/05 Umler Estimate as of 12/31/05 GATX Rail Fleet North American Tank Car Lease Market Approximately 60 different types of tank cars Other 8% Covered Hoppers 23% Tank Cars 63% GATX 31%
Slide 6: North American Rail Market
NORTH AMERICAN RAIL MARKET page 7 SINCE 1898 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 95% 94% 92% 99% 93% 98% 90% 85% 90% 95% 100% 1998 1999 2000 2001 2002 2003 2004 2005 1Q’06 North American Rail Market Source: Association of Amer
Slide 7: Investment Philosophy
Investment Philosophy Maintaining investment discipline $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2001 2002 2003 2004 2005 Rail Air Specialty · The single most important decision is to buy the asset at an advantaged, attractive price – Understand asset value – Investing for the long run · 3
Slide 8: GATX Rail Key Initiatives
page 9 SINCE 1898 Maximize value of our existing fleet, our infrastructure, our longterm customer relationships and our market position GATX Rail Key Initiatives · Grow core railcar and locomotive fleets – Optimize car acquisition costs · Continue to improve operational efficiency · Enhance European
Slide 9: xipuoddy
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Slide 10: GATX Corporation
page 11 SINCE 1898 GATX Corporation GATX Corporation provides lease financing and related services to customers operating rail, air, marine and other targeted assets. GATX also: – Provides an attractive risk-adjusted return to shareholders – Is an excellent operator focused on providing quality serv
Slide 11: Profile: Asset Mix and Asset Structure
PROFILE Asset Mix Asset Structure $6.8 billion NBV (on and off balance sheet) as of 3/31/06 Rail 63% Air 25% Specialty 7% Corporate/ Other 5% Operating Lease Assets 74% Joint Ventures 10% Other 10%
Slide 12: Air
page 14 SINCE 1898 GATX Air · Lease to commercial airlines worldwide · Owned portfolio focused on narrowbody aircraft with weighted average age of 6 years · 100% utilization · Geographically diverse customer base · Extensive aircraft management expertise and experience
Slide 13: Owned Aircraft NBV
page 15 SINCE 1898 GATX Owned Aircraft NBV of Owned Aircraft NBV of Aircraft on Lease Aircraft Investment by Aircraft Type Aircraft by Region as of 3/31/06 A320 Family 58% B737 Family 34% B757 7% Regionals 1% Europe 48% South America 15% North America 8% Asia 15% Middle East 12% Africa 2%
Slide 14: GATX's Aircraft Investments vs. Aircraft Stored Worldwide
page 16 SINCE 1898 0 50 100 150 200 250 300 350 400 Boeing 727 Boeing 767 Dash-8 Boeing 737 (J T8D) Boeing 747 BAE 146 Fokker 100 Airbus A300 Airbus A310 Embraer ERJ -145 MD-80 Airbus A319 Boeing 717 Airbus A321 Boeing 737 (CFMI) Boeing 757 Boeing 737 (NG) Airbus A320 $0 $100 $200 $300 $400 $500 $60
Slide 15: Air Key Initiatives
page 17 SINCE 1898 GATX Air Key Initiatives · Strengthen management platform – Capitalize on reputation, contacts and knowledge · Optimize owned fleet – Sell $450 million of older air assets · Improve returns & reduce volatility Increase the number of aircraft we manage for others while optimizing o
Slide 16: Specialty
page 18 SINCE 1898 GATX Specialty Production Equipment 9% Mining, Construction & Energy Equipment 11% Aircraft 5% NBV = $471 mm as of 3/31/06 Other 1% NBV = $528 mm as of 3/31/06 Owned Portfolio Managed Portfolio Major source of remarketing gains and secondary market activity Power 40% Rail 29% Airc
Slide 17: Specialty Key Initiatives
page 19 SINCE 1898 GATX Specialty Key Initiatives · Marine – Investments in new builds at attractive prices · Industrial Equipment Finance – Critical use industrial equipment – Leverage GATX knowledge and expertise Disciplined investment to grow portfolio of shipping and select industrial equipment
Slide 18: Financial Highlights
page 20 SINCE 1898 Financial Highlights · Solid cash flow generation · Disciplined pursuit of select investment opportunities · Maintain conservative balance sheet
Slide 19: Financial Highlights
page 21 SINCE 1898 $99 $541 $356 $209 $267 $302 $285 $589 $727 $250 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2001 2002 2003 2004 2005 Portfolio Proceeds Cash from Continuing Ope rations Financial Highlights $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2001 2002 2003 2004 2005 Rail Air S
Slide 20: Capitalizing on Strengths
page 22 SINCE 1898 Capitalizing on Strengths · Grow the Rail franchise – GATX’s most valuable franchise – Strong market identity – Excellent long-term customer relationships · Improve return in Air by managing aircraft · Grow Specialty through disciplined investment in targeted assets · Positioned f