Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — First Dallas Securities 12th Semi-Annual Investor Forum (September 2006)
14 slides from Trinity Industries's conference presentation, September 2006
Slide 1: Trinity Industries, Inc. First Dallas Securities 12th Semi-Annual Investor Forum
Trinity Industries, Inc. First Dallas Securities 12th Semi-Annual Investor Forum
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward looking statements” as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These st
Slide 3: Trinity's Multi-Industry Market Leadership Strategy
Trinity’s Multi-Industry Market Leadership Strategy Construction Products Group Energy Equipment Group Inland Barge Group Rail Group Rail Leasing and Management Services Group 3
Slide 4: Trinity's Key Market Leadership Positions
Trinity’s Key Market Leadership Positions Trinity’s Construction Products Group • Largest full-line highway guardrail and crash cushion manufacturer in the U.S. • Leading producer of concrete and aggregates in Texas Trinity’s Energy Equipment Group • Leading full line LPG tank manufacturer in the No
Slide 5: Strong Industry Dynamics
Strong Industry Dynamics Railcar and Barge Industry Fundamentals are Strong • Railcar and Barge fleet utilization is very high • Growth of the economy – Increased demand for coal, grain, cement, aggregates, and other basic materials • Replacement cycle is a key influencer on demand – 44% of railcars
Slide 6: Rail Industry Shipment Summary and Projections
Rail Industry Shipment Summary and Projections A look at two 20-year periods of time: 1.2 million railcars = 60,500 cars per year avg. 25 years from peak 1964-1983 731,000 railcars = 36,500 cars per year avg. 64,700 cars per year avg. 1984-2003 2006P – 2011P Major industry Consolidation after the pe
Slide 7: Inland Barge Segment: Growth Expected to be Driven by Replacement Demand
Inland Barge Segment: Growth is Expected to be Driven by Replacement Demand Retirements Have Exceeded New Builds – Hopper & Tank Age of North American Hopper & Tank Barge Fleet 1,500 Estimated Retirements New Builds 9,000 8,000 42% are 21+ years old 1,200 7,000 6,000 29% 27% 900 5,000 4,000 600 3,00
Slide 8: Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group Trinity Leasing’s capabilities provide the following advantages: • One-stop shopping Strategic Position • Provides customers with financing alternatives • Ideal method for introduction of new products • Enhances relationships with end-users of products •
Slide 9: Trinity's Lease Fleet Growth
Trinity’s Lease Fleet Growth • Trinity’s fleet has grown from 6,900 railcars in 1998 to over 27,000 today, a 290% increase Lease Fleet 30,000 25,000 20,000 CAGR since 1998: 20% 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 Jun-06 9
Slide 10: Trinity's Key Differentiators Create a Unique Value
Trinity’s Key Differentiators Create a Unique Value • Broad product offerings – One-stop shopping for customers – Minimizes product volatility • Multi-industry with synergistic connections – Unique customer connections – Centralized cost-savings – Manufacturing synergies • Industry-leading position
Slide 11: Trinity's Strategic Summary
Trinity’s Strategic Summary • Maximize earnings during the upswing • Continuously search for ways to improve operating performance • Diversify earnings base to stabilize cyclical downswings • Expand leasing expertise • Maintain a persistent and patient acquisition strategy • Maintain a financial pla
Slide 12: Trinity's Financial Highlights
Trinity’s Financial Highlights 2005 was another growth year for Trinity, resulting in strong Trinity’s Revenue Summary 2002 - LTM 6/30/06 revenue and profitability ($mm) – Reported net income of $86.3mm for the year ended $3,180 12/31/05, as compared to a loss of $9.3mm in 12/31/04 $2,902 $2,198 – R
Slide 13: Fittings Divestiture
Fittings Divestiture • On June 9th, we announced the sale of the Fittings Group to a private equity firm • Group was not a core part of our strategy • The business was part of our Construction Products Group • Gain of $0.29 per diluted share in Q2 06 13
Slide 14: European Rail Divestiture
European Rail Divestiture • On August 4th, we announced the sale of our European Rail business • Sale price of $30 million, plus working capital and assumption of leases • Depressed market • Have incurred losses in the business for several years • Resources are better focused on North American oppor
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