Wabash National Corporation · NYSE:WNC
Wabash National — Corporate Update (October 2009)
28 slides from Wabash National's corporate update, Oct 5, 2009
Slide 1: Business Update October 2009
VWWABASH, OUR INNOVATION MOVES THE WORLD™ Business Update October 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: Company At-A-Glance
Company At-A-Glance #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipment * 23% market share in 2008 ($- millions) 2008 © YTD 6/30/09 + No. 1 in Van Trailer production Revenue! Ry: Segment: Manufacturing $694.2 $125.2 * No. 2 in Platform Trailer
Slide 4: Comprehensive Product Offering
Comprehensive Product Offering 58% of Sales DuraPlate® Dry Vans 9% of Sales Pups 2% of Sales Benson ™ Dumps Dump Trailers Dump Truck Bodies 1 DuraPlate HD® Dry Vans -—‘# of Sales __ Sheet & Post Dry Vans <1% of Sales Aluminum Platforms Benson ™ Aluminum Bem Benson ™ Aluminum Drop 11% of Sales Refrig
Slide 5: Top for-hire fleet customers
SCHNEIDER. SwIFT FedEx. g Coom EW solutions AVERITT US.XPRESS PTT, . J 34% of Top 100 For-Hire Fleets are Wabash customers; 44% of Top 50 For-Hire Fleets are Wabash customers |
Slide 6: Geographic Sales & Distribution Overview
Geographic Sales & Distribution Overview VANS + Factory Direct - 4 salespeople + Independent Dealers + 25 Dealers - 49 Locations - 100+ salespeople FLATBEDS + Full-Line - 18 Dealers - 43 locations + Steel & Combo Platform - 51 Dealers - 69 locations + Aluminum Platform - 7 Dealers - 9 locations + Du
Slide 7: Key Initiatives
Key Initiatives + Product Portfolio Opportunities + Industry Leading Technology + DuraPlate® Products Group + Lafayette Manufacturing Transformation + Purchasing Consortium * Cost Reduction Initiatives +» Recapitalization
Slide 8: Product Portfolio Opportunities
Product Portfolio Opportunities Strong Wabash Position/Share (%) Weak Sg Low High Opportunity for Technological Innovation Sources: * ACT. **Transport Topics DuraPlate® + DuraPlate remains the product innovator and dry van leader - growing from 26% of new dry van sales in 2002 to approximately 35% i
Slide 9: A History of Innovation
A History of Innovation Wabash National was established in 1985; Introduced the aluminum plate trailer, becoming the dominant industry producer; Developed new technologies by working with the world’s largest truckload carriers; In 1996 the first composite dry van, DuraPlate®, was introduced. Today t
Slide 10: Industry Leading Innovations
Industry Leading Innovations Innovation Launch Date Bonded Skylight 2008 TrustLock Plus® Door Lock 2009 DuraPlate® AeroSkirt ™ & Support 2009 Bonding Technologies 2009 New DuraPlate® HD Dry Van 2009 DuraPlate® Arched Roof 2009 Tire Hauler 2009 Reduces leaks and simplifies repairs Proprietary single-
Slide 11: Tire Hauler
Tire Hauler No permitting required for highway transport No chase vehicles required Simplifies load / unload / securement Improved stability — torsional rigidity Backhaul capable TrustLock Plus® Lower handle — 13” lower for safety consideration Safety Wedge Cam — 150° vs. 90° operation Security — Ro
Slide 12: Leveraging DuraPlate Innovation
Leveraging DuraPlate® Innovation DuraPlate Composite Sidewall Panels Pre-coated galvanized steel skin * — High density polyethylene (HDPE) core bonded between two sheets of high-strength steel * Lower cost of ownership: * Longer life + Lower maintenance cost * Increased durability * Enhanced trade i
Slide 13: Lafayette Manufacturing Transformation
Lafayette Manufacturing Transformation Operational excellence initiative combining lean product standardization, material flow advancements and lean manufacturing methods have resulted in significant improvements: «Standardized multiple dry van design platforms to a single platform, reducing part de
Slide 14: Purchasing Consortium
Purchasing Consortium Established to identify and increase efficiencies and economies of scale in the procurement of raw materials, component parts and services to the economic benefit of its Members Achieve incremental cost reduction not available through individual efforts Each Member associated w
Slide 15: Cost Actions Implemented to Date
Cost Actions Implemented to Date + Compensation & Benefit Reductions + Headcount reductions of 250+ salaried positions; down 40% since 2007 15% reduction in all salary compensation; 17% for executives Approximately 10% hourly pay reduction Introduction of a Voluntary Unpaid Layoff Program with conti
Slide 16: August 2009 Recapitalization
August 2009 Recapitalization Lincolnshire Investment Trailer Investments, LLC, purchased $35M of redeemable preferred stock in three separate and newly-issued series with annual dividend rates averaging 16%; Dividends payments may be accrued for the first two years to the extent cash flow does not p
Slide 17: Historical Trailer Cycles
Historical Trailer Cycles Trailer Net Orders 1991 - Present Source: ACT Research 40,000 + - a0,000 WNC Units Cycle Lows Units 20,000 Feb. '91 7,555 Dec.'95 4,468 10,000 duly'01 6,472 Dec.'08 3,939 ai : is Sy op Na $ se oS SHEP EEE EEESESEEFEESEESE oe 2 x ci Pi = ca co eS VP SF Ro s Le Sr * Previous
Slide 18: Trailer Net Orders
Trailer Net Orders Cyclical Industry Trends Late ‘00s Cycle Current Cycle —STrallerNet Orders___——~Toial Manufacturing inventories __——~Tonnage Data During the past three cycles, improvements in quarterly changes in tonnage have preceded an absolute increase in trailer orders; however, current cycle
Slide 19: Trailer Loadings
Trailer Loadings r Type [thousands; Seasonally Adjusted] ‘Source: FTR Associates * Freight Loadings are expected to decline 9.8% in 2009 with Dry Vans being hit the hardest at a decline of 11.1% + Forecasts call for Loadings to bottom out in 3Q 2009 with slow growth through 2011 Trailer loadings beg
Slide 20: Industry Outlook
Industry Outlook Total Trailer Shipments 2010 Total trailer shipments sm Act snip Estimates —e- FTR ld Estimates forecast in the range of 88K to 116K 350,000 units 300,000 Double digit year over year growth 250,000 forecast through 2013 200,000 Replacement demand is estimated 180,000 +4 at 175,000 —
Slide 21: Financials
mi VVABASH, SN OUR INNOVATION MOVES THE WORLD™ Financials
Slide 22: Financial Highlights
Financial Highlights Revenue 1,400 51.2137 1.200 1,000 800 ($ millions) 3 2005 $1,3122 2006 Gross Margin 11% 2005 8% 2008 $1,102.5 2007 8% $836.2 2008 $164.4 6 mon, ‘09 ar -13% _ 2007 2008 6 mon. '09 Diluted EPS 6 4 $3.06. 2 $0.30 0 =_ 2 6 2005 2006 EBITDA Margin 12% am 1% 3% 2% oo -3% 8% 13% 18% 23
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet (Sin thousands) Assets CURRENT ASSETS ‘Cash and cash equivalents, Acwouuts receivable, net Inventories Deferred taxes Propaid expenses and other Total current assets PROPERTY, PLANT AND EQUIPMENT, net GOODWILL DEFFERED INCOME TAXES INTANGIBLES OTHER ASSETS Total Assets Lia
Slide 24: Free Cash Flow
Free Cash Flow ($ millions) YTD June 2006 2007 2008 2009 Pretax Income $ 16.3 $ 247 $ (108.8) $ (46.2) Non-Cash Special Charges 15.4 (3.3) 66.3 Depreciation & Amortization 20.6 19.5 21.5 9.6 Working Capital Change ** 26 11.9 53.1 36.1 Capex (12.9) (6.7) (12.6) (0.6) Stock Based Comp 4.0 4.4 5.0 24 F
Slide 25: Core Strengths Today & Tomorrow
Core Strengths Today & Tomorrow Well positioned to manage through the current cycle... Flight to quality: Strong value proposition and unmatched suite of products with #1 position in North American trailer market Strong customer relationships: Long-standing customer relationships with large carriers
Slide 26: Appendix
OUR INNOVATION MOVES THE WORLD™ Appendix
Slide 27: Pro Forma Balance Sheet Presentation
Pro Forma Balance Sheet Presentation ProForm Adjsted (Potters m tennands As Repoted (1) Adjustments (2) __ Pro Forma ‘nau assers Cent Assets Cast and cash equivatents Ss 6m Ss 6m Aocoais tonite at 7994 17994 fnvenloien erm0 onm30 Total cunt arte 36.121 36,121 Property Pant and Equipment, not 15.789
Slide 28: Pro Forma Statement of Operations
Gross Profit General and Administrative Expenses Selling Expenses Loss from Operations. ther Income (Expense) Interest expense Other. net Loss Belore Income Taxes Income Tax Expense Net Loss Proferred Stock Dividends Common Stock Dividends Deolared sic Net Loss Per Share Diultod Net Loss Per § (Comp