Wabash National Corporation · NYSE:WNC
Wabash National — Shareholder Meeting (May 2005)
13 slides from Wabash National's shareholder meeting presentation, May 12, 2005
Slide 1: Annual Shareholder Meeting May 12, 2005
(r) Annual Shareholder Meeting May 12, 2005
Slide 2: Forward-Looking Statements
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: 2004 Review: Turn-Around Completed
2004 Review Sales $1.0 billion Net income $58.4 million Extremely tough raw material & component challenges Aggressive pricing decision - capture all costs Mid-Market/new customer strategy a success DuraPlate 25% share of van market and growing Manufacturing operations delivered big time Retail/bran
Slide 4: 2005 Highlights
2005 Highlights Trailer cycle should extend beyond 2007 - growing demand Growth driven by cycle and mid-market share gains Raw material pricing leveling - increases being recovered Retail/branch operations improving/profitable Orders placed: > 75% of 60,000 unit goal Strong balance sheet - no bank d
Slide 5: Positive Industry Momentum
1999 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E Class 8 Trucks 280722 206555 118682 148236 141429 207458 235393 251662 224150 282673 260862 Total Trailers 318788 275223 140100 142658 183162 234256 269090 272258 289000 281000 288963 Positive Industry Momentum Units Source: ACT Research U.
Slide 6: DuraPlate Commitment: Ten Year Trailer
DuraPlate(r) Commitment: "Ten Year Trailer" DuraPlate box - Reduce total cost of ownership Box last 2x longer than standard competition Reduced maintenance cost Enhanced trade value 10 year panel warranty Fleet maintenance issues Tires and brakes - normal wear Panel replacement - DuraPlate solves Co
Slide 7: Advertisement in Transport Topics
Advertisement in Transport Topics General fleet consensus: DuraPlate only available to partners
Slide 8: Not any more!
Not any more!
Slide 9: Mid-Market - Expanding Customer Base
"Mid-Market" - Expanding Customer Base Source: Eno Transportation Foundation Proven Opportunity - Excellent Growth Engine Others Top 10 Carriers Mid-Market East 0.38 0.11 0.52 2000 Top 10 Carriers - 11% (Historic focus) Other - 38% Mid-market - 52% Current Focus Market 1,250 fleets (1 million traile
Slide 10: Re-Investing in Lower Cost Manufacturing
Re-Investing in Lower Cost Manufacturing Replace four lines with automated assembly operations Fourth line will move reefer operations into main plant Each line can produce 15,000 trailers per year Savings: improved productivity and quality Projected average annual savings per line: $7.0M! Greatly e
Slide 11: Product Standardization - Component Rationalization
Product Standardization - Component Rationalization Standardize components and subassemblies - minimize low volume components Optimize trailer designs for specific freight applications - 'pre-engineered' option packages Reduce complexity of options and components Improve product quality, reduced var
Slide 12: Structural Margin Improvement
Structural Margin Improvement Exceeding peak margins at only 70% of peak volumes despite commodity price headwinds Source: ACT Research and WNC estimates Automation Commodity Prices Product Line Simplification
Slide 13: Future Initiatives
Future Initiatives ERP - not just SOX related, expect significant business process improvement Next generation manufacturing - great cost, productivity, safety & quality improvement Mid-Market - continue to harvest new customer base Raw material/component cost reduction - significant opportunity for