Wabash National Corporation · NYSE:WNC
Wabash National — RW Baird Industrials Conference 2019
18 slides from Wabash National's conference presentation, Nov 7, 2019
Slide 1: Wabash National Corporation RW Baird Industrials Conference
Wabash National Corporation RW Baird Industrials Conference November 7 | Chicago, IL Jeff Taylor – Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey the Company’s current expectations or forecasts of future events. All statements contained in this presentation ot
Slide 3: Wabash National – Changing How the World Reaches You: Key Messages
Wabash National – Changing How the World Reaches You Key Messages ▪ Wabash National has grown to be a more diverse company over the last decade with a more resilient portfolio of businesses ▪ Final Mile business is growing rapidly, also changing the nature of discussions with customers ▪ Focused on
Slide 4: Wabash at a Glance
Wabash at a Glance (NYSE: WNC) 1985 Lafayette, IN ~$800M1 ~7,100 12 $2.3B 6.1%2 $78M Founded Headquarters Market-cap Global Employees Manufacturing 2018 Revenue 2018 Operating 2018 FCF Locations Margin 2018 Revenue by Segment by Product 16% Commercial Trailer Products Dry Van Trailers 27% 17% Divers
Slide 5: Broadening Exposure Across Transportation, Logistics and Distribution
Broadening Exposure Across Transportation, Logistics and Distribution FIRST MILE MIDDLE MILE FINAL MILE ▪ Long-haul routes of goods ▪ Products moved into or redistributed ▪ Delivery of goods to home or final among fulfillment centers destination ▪ Driven by freight activity ▪ Driven by strategic pos
Slide 6: Strategic Diversification from Supreme Acquisition
Strategic Diversification from Supreme Acquisition Benefits from Adding Final Mile Products to Our Portfolio ▪ Accelerating Wabash’s organic growth in the ~$3.5B final mile equipment market ▪ Improving manufacturing footprint and portfolio to better serve customers ▪ Delivering profitable growth in
Slide 7: Our Sustainable Competitive Advantages
Our Sustainable Competitive Advantages Industry-leading Innovative Operational Strong Customer Product Portfolio Technology Excellence Relationships ▪ Leverage our 30+ years of ▪ Customer-focused engineered ▪ Emphasizing manufacturing ▪ Built on industry-leading, engineering and mfg. solutions in al
Slide 8: Mega Trends Driving Growth
Mega Trends Driving Growth Energy & Chemical Urbanization, Final Mile & Expansion of Cold Chain & Increased Regulation Production, Storage & Home Delivery Food Equipment (GHG1, ELDs2, Food Safety) Transportation ▪ New and existing designs ▪ New patent-pending ▪ Low cost energy supports ▪ Advanced li
Slide 9: Market Drivers
Market Drivers Market Demand Summary ▪ Trailer demand forecasts above replacement levels ▪ E-commerce driving robust growth in Final Mile segment ▪ Tank trailer demand bolstered by strong and steady food, dairy & beverage and chemical markets Commercial Trailer Products Final Mile Products Diversifi
Slide 10: Strategic Path Forward both in the Near- and Long-term
Strategic Path Forward both in the Near- and Long-term ▪ Continue innovation leadership INNOVATE ▪ Develop new capabilities and capacity to enable growth ▪ Improve durability and reduce weight with material technologies ▪ Margin enhancement through integration, alignment and shared services activiti
Slide 11: Historical Financial Performance
Historical Financial Performance $2,267 $2,028 $1,863 $1,845 $1,767 $1,636 $1,462 $1,214 $1,312 $1,187 $1,041 $1,103 Annual $836 ($M) $640 Revenue $338 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $204 $182 $146 $122 $137 $103 Annual Adjusted $69 $80 $85 $38 Operating I
Slide 12: Historical Financial Performance: Free Cash Flow Conversion
Historical Financial Performance 237% 133% 119% Free Cash Flow 113% 106% 106% Conversion¹ 2013 2014 2015 2016 2017 2018 6-Year Track Record of 100%+ Free Cash Flow Conversion 12 12 1 Free Cash Flow Conversion defined as Free Cash Flow/Net Income. Please see appendix for reconciliation
Slide 13: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy LIQUIDITY Managing the business for the long-term DEBT Target net debt leverage of 1.0x to 3.0x MANAGEMENT Focus on debt reduction and lowering net debt leverage to ~1.0x REINVEST FOR Capital expenditures / R&D to support organic growth and commercialization GROW
Slide 14: Financial Goals as a More Diversified Provider of Engineered Solutions
Financial Goals as a More Diversified Provider of Engineered Solutions 2018 FY Results 2021 Goals 2018 – 2021 Assumptions ▪ U.S. annual GDP growth of 2-3% REVENUE $2.27B ~$2.2B ▪ Trailer market to decline mid/high-single digits CAGR ADJUSTED ▪ Truck body market to grow mid- 6.1% ~8.0% OPERATING MARG
Slide 15: Reconciliation of Adjusted Consolidated Operating Income
Reconciliation of Adjusted Consolidated Operating Income Unaudited ($M) 2008 2012 2013 2014 2015 2016 2017 2018 Income from Operations $ (103.8) $ 70.5 $ 103.2 $ 122.4 $ 180.4 $ 202.5 $ 130.8 $ 111.0 Adjustments: Impairment 66.3 - - - 1.1 1.7 - 25.0 Acquisition expenses and related charges - 14.4 -
Slide 16: Reconciliation of Adjusted Segment Operating Income
Reconciliation of Adjusted Segment Operating Income Unaudited – ($000s) 16 16
Slide 17: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share Unaudited – dollars per share 17 17
Slide 18: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Unaudited ($M) 2013 2014 2015 2016 2017 2018 Net cash provided by operating activities $ 128.7 $ 92.6 $ 131.8 $ 178.8 $ 144.4 $ 112.5 Capital expenditures 18.4 20.0 20.8 20.3 26.1 34.0 Free cash flow $ 110.3 $ 72.6 $ 111.0 $ 158.5 $ 118.3 $ 78.5 Free cash flow $ 110.
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