Gatx Corporation · NYSE:GATX
Gatx — Investor Presentation (September 2006)
18 slides from Gatx's investor presentation, Sep 7, 2006
Slide 1: GATX Corporation September 2006
NYSE: GMT GATX Corporation September 2006 | 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. GATX also : –Provides an attractive risk — adjusted return to shareholders –Is an excellent operator focused on providing quality services to customers
Slide 4: Corporate History
GATX Corporate History • Founded in 1898 as a railcar lessor · Listed on NYSE in 1916 · Initiated quarterly dividends in 1919; paid without interruption since · Added (and divested) diversified industrial, financial and leasing businesses through the years · Railcar leasing remains the most valuable
Slide 5: Strengths: Keys to Success
GATX Strengths Keys to Success • Foundation of GATX is the leasing of long-lived, widely-used assets –Railcars – Marine Vessels –Locomotives – Industrial Equipment –Aircraft • Assets in which GATX possesses a unique understanding of what drives value ·Assets where GATX provides valuable services SIN
Slide 6: Profile
Profile $7.2 billion NBV (on and off balance sheet)as of 6/30/06 SINCE 1898 page 6
Slide 7: Rail
GATX Rail • One of the largest railcar and locomotive lessors in North America –A leading North American tank car lessor • Own, manage or have interest in 159,000 railcars worldwide –Expanding international presence with over 40,000 cars • Leading service provider to shippers in chemical, petroleum,
Slide 8: Rail Fleet
GATX Rail Fleet GATX Rail Fleet North American Tank Car Lease Market Boxcars & Gondolas 6% Other 8% Tank Cars 63% Approximately 60 different types of tank cars Covered Hoppers 23% GATX Rail Worldwide Owned Fleet 128,000 railcarsas of 12/31/05 GATX 31% Other 11% GE Railcar 16% Trinity 7% Union Tank C
Slide 9: North American Rail Market
North American Rail Market Source: Association of American Railroads (AAR) — combined US and Canada originated carloads, excluding intermodal and Railway Supply Institute (RSI) SINCE 1898 page 9
Slide 10: Rail Key Initiatives
GATX Rail Key Initiatives Maximize value of our existing fleet, our infrastructure, our long-term customer relationships and our market position • Grow core railcar and locomotive fleets –Optimize car acquisition costs • Continue to improve operational efficiency · Enhance European financial perform
Slide 11: Air
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 SINCE 1898 page 11
Slide 12: Owned Aircraft
GATX Owned Aircraft Aircraft Investment Aircraft by Region by Aircraft Type B757 7% A320 Family 59% A320 Family 59% NBV of Owned Aircraft as of 6/30/06 Africa 2% Middle East 14% Asia 15% North America 7% South America 12% Europe 50% NBV of Aircraft on Lease SINCE 1898 page 12
Slide 13: Air Key Initiatives
GATX Air Key Initiatives Increase the number of aircraft we manage for others while optimizing our existing fleet to take advantage of the market recovery and improve returns • Expand aircraft management platform –Capitalize on reputation, contacts and knowledge • Optimize owned fleet –Sell $450 mil
Slide 14: Specialty
GATX Specialty Owned Portfolio Managed Portfolio Major source of remarketing gains and secondary market activity Marine 40% Other 26% Production Equipment 11% NBV = $463 mm as of 6/30/06 Mining, Construction & Energy Equipment 12% Aircraft 5% Rail 6% Power 40% Aircraft 30% Rail 29% Other 1% NBV = $5
Slide 15: Specialty Key Initiatives
GATX Specialty Key Initiatives Disciplined investment to grow portfolio of shipping and select industrial equipment assets • Marine –Investments in new builds at attractive prices • Industrial Equipment Finance –Critical use industrial equipment –Leverage GATX knowledge and expertise SINCE 1898 page
Slide 16: Financial Highlights
Financial Highlights Cash from Continuing Operations and Portfolio Proceeds SINCE 1898 page 16
Slide 17: Investment Philosophy: Maintaining Investment Discipline
Investment Philosophy Maintaining Investment Discipline Portfolio Investments and Capital Expenditures • A key success factor is purchasing the right asset at an advantaged, attractive price – Investing for the long run • 30- to 50-year assets – Key to achieving attractive, risk-adjusted return • Mo
Slide 18: Capitalizing on Strengths
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 for more stable growth