Slide 1: GATX Corporation August 2003
GATX Corporation August 2003 NYSE: GMT
Slide 2: Investment Highlights
Specialized finance and leasing company with leadership positions in core markets Quality pool of long-lived assets Significant cash flow generation with ability to manage investment volume Substantial liquidity position Generating significant savings from cost reduction initiatives Positioned to le
Slide 3: Asset Mix
Asset Mix Largest lessor of tank cars in North America; 105 year history One of the largest commercial aircraft operating lessors worldwide; 35 year history One of the largest independent IT lessors; 20 year history $7.6 billion NBV Owned Assets (On and Off-Balance Sheet) as of 3/31/03 * Announced e
Slide 4: Business Update
Business Update Encouraging market indicators Fleet utilization improving but lease rate pressure continues Ordered 7,500 new cars under five-year program Expanding European presence Rail Air High fleet utilization Limited exposure to bankrupt U.S. air carriers Pricing pressure and volatility contin
Slide 5: Rail
Rail North America's largest tank car lessor, leading locomotive lessor Own or have interest in 166,000 railcars worldwide Expanding international presence with over 35,000 cars Leading service provider to shippers in chemical, petroleum, and food industries Over 1,000 customers Strong credit profil
Slide 6: Air
Air One of the largest commercial aircraft operating lessors/managers worldwide Portfolio well suited for current market conditions Focus on narrowbody aircraft Weighted average age of aircraft portfolio is 5 years Utilization over 96% Geographically diverse customer base Limited new order book 6 ne
Slide 7: Information Technology
Rail Air Information Technology Specialty Venture by NBV 45 26 9 12 4 Information Technology 8% One of the largest independent Information Technology equipment lessors with 20 plus years of experience Focused on financeable credits with high volume IT needs Portfolio characterized by diversification
Slide 8: Venture and Specialty
Announced planned exit from Venture and curtailment of Specialty Finance in December 2002 Reduces volatility Enhances clarity and liquidity Venture $225 mm in total assets Expect to run-off portfolio Short-lived asset base Specialty Finance $759 mm of diversified leases/loans, equipment types Run-of
Slide 9: Financial Highlights
Financial Highlights Expect income in range of $1.16 per share for 2003, absent further air-related impairments and charges Continued strong cash flow and liquidity despite challenging economic conditions Sound financial ratios Portfolio quality stabilized 9
Slide 10: Financial Summary
Financial Summary (millions) 2002 2001 2000 Revenues $1,274 $1,488 $1,311 Operating Cash Flow + Portfolio Proceeds 1,323 1,389 1,029 Short-term Debt (net of unrestricted cash) (204) 66 367 Recourse Debt * 4,493 3,956 4,151 Nonrecourse Debt * 948 1,043 815 Capital Lease Obligations 144 163 164 Total
Slide 11: Credit Statistics
Credit Statistics Total assets, excluding cash * $7,429 $7,120 $6,805 Reservable assets 1,245 1,552 1,521 Financial Services investments 2,901 2,883 2,604 Allowance for losses 82 94 95 As a % of reservable assets 6.6% 6.1% 6.3% Net charge-offs and asset impairments 94 188 42 As a % of average total
Slide 12: Investment Highlights
Specialized finance and leasing company with leadership positions in core markets Quality pool of long-lived assets Significant cash flow generation with ability to manage investment volume Substantial liquidity position Generating significant savings from cost reduction initiatives Positioned to le
Slide 13: Forward-looking statements
Certain statements within this document 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," "expects," "intend," "predict,"