Wabash National Corporation · NYSE:WNC
Wabash National — Stephens Fall Investment Conference 2008
28 slides from Wabash National's conference presentation, Nov 19, 2008
Slide 1: Stephens Fall Investment Conference November 19, 2008
Stephens Fall Investment Conference November 19, 2008
Slide 2: 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 from those implied by
Slide 3: Core Strengths Today & Tomorrow
Core Strengths Today & Tomorrow Positioned well today 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 ca
Slide 4: Company At-A-Glance
Company At-A-Glance Key Facts: Founded as a start-up in 1985 IPO in 1991 - NYSE: WNC Headquartered in Lafayette, IN 3,100 employees 2007 sales of $1.1B 2007 trailer production of ~ 46,500 units #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipme
Slide 5: WNC Product Offering
DuraPlate(r) Pups Arctic Lite(r) Vans Transcraft (r) DuraPlate HD(r) Dry Vans RoadRailer(r) DuraPlate(r) Dry Vans WNC Product Offering FreightPro(r) Dry Vans Dry Vans Refrigerated Doubles Vans Intermodal Platforms BensonTM 724 BensonTM Dumps
Slide 6: U.S. Trailer Shipments
U.S. Trailer Shipments U.S. Trailer Shipments Lessons learned from '01 - '02 downturn: Streamlined manufacturing footprint with fewer plants and increased efficiency Contained costs and reduced annual overhead spend Leveraged relationships with larger carriers that have shown the ability to manage t
Slide 7: Business Strengths and Near-term Objectives
Business Strengths and Near-term Objectives Manufacturing Enhancements Flight to quality Strong customer relationships Lafayette transformation Cost Containment Initiatives Optimizing cost structures Strong Customer Relationships Leading Market Position Core strengths that position WNC well during c
Slide 8: Recognized Industry Leader
Recognized Industry Leader WNC Competition 45702 171318 WNC Competition 35319 83289 WNC Competition 4659 19259 2007 Total Trailers WNC Competition 5724 26621 WNC Competition 41043 109910 2007 Total Dry Vans 2007 Total Vans 2007 Total Platforms 2007 Total Reefers Source: ACT, WNC, TrailerBody Builder
Slide 9: WNC Customer Relationships
WNC Customer Relationships Strong relationships with top-tier carriers
Slide 10: Near-Term Cost Containment Initiatives
Near-Term Cost Containment Initiatives Continued focus on near-term profitability initiatives: Optimize manufacturing process Decrease manufacturing costs and strengthen competitive position Improve inventory management Improve inventory turns and eliminate dead-stock Optimize cost structure to dema
Slide 11: Lafayette Transformation
Lafayette Transformation Enhance Manufacturing Process Lafayette Transformation Streamline production processes and improve manufacturing efficiency Optimize existing line configurations Drive margin improvement Improve material handling processes Consolidate dislocated warehouse facilities Reduce l
Slide 12: Managing Business for the Long-Term
Managing Business for the Long-Term
Slide 13: Strategic Pyramid - Executable Initiatives
Develop New Non-core Business Opportunities Develop Global Joint Ventures/ Alliances Make Strategic Acquisitions Optimize Manufacturing Costs Accelerate Strategic Sourcing Initiative Optimize Inventory Mgmt. Create Purchasing Consortium Expand Customer Base Leverage the WNC Brand Optimize and Grow S
Slide 14: Key Elements of the Plan
Key Elements of the Plan Increase Diversification Improve Operational Excellence Capture Growth Opportunities DuraPlate(r) Products Group Purchasing Consortium Benson Acquisition Mission: Transform Wabash National into a diversified industrial manufacturer and service provider by leveraging core com
Slide 15: DuraPlate Composite Panels
DuraPlate(r) Composite Panels High density polyethylene (HDPE) core bonded between two sheets of high-strength steel Composite panel is extremely strong, lightweight, and damage resistant Composite characteristics allow it to flex and absorb impact which helps reduce damage Pre-coated galvanized ste
Slide 16: Industry Leading Innovations
Industry Leading Innovations Launch Date Description Innovation DuraPlate(r) Arched Roof 2009 Enhanced damage resistance and decreased weight Bonding Technologies TrustLock Plus(r) Door Lock 2009 2009 Sidewalls and Logistics Proprietary single-lock closing mechanism New DuraPlate(r) HD 2009 2008 EZ-
Slide 17: DuraPlate Products Group Non-Core Business Development
DuraPlate(r) Products Group Non-Core Business Development Leverage materials and skills into business opportunities beyond manufacturing trailers Grow DuraPlate(r) product sales Find and develop new business opportunities to diversify and grow the company Corporate Growth Diversification into market
Slide 18: Current DuraPlate Products Markets
Current DuraPlate(r) Products Markets Utility Truck Bodies/Cargo Trailers Expanding relationship with Utilimaster. Developing opportunities with other truck body OEMs. Establishing relationships in the cargo trailer OEM segment. cargo trailer OEM segment. cargo trailer OEM segment. cargo trailer OEM
Slide 19: Purchasing Consortium
Purchasing Consortium Wabash National VT Specialized Vehicles Corporation Utilimaster Corporation Kentucky Trailer Federal Signal Corporation Key Participants: Participative Consortium (WNC as Principal) Initially four Associate Members Centrally administered and maintained by WNC Collaborative stra
Slide 20: Benson Acquisition
3 year operating lease for property and building with purchase option Purchased selected assets Purchased selected inventory No assumption of liabilities Attractive purchase price - $5M Intellectual property included Opportunities for state and local tax incentives Asset Transaction Purchasing - lev
Slide 21: Key Metrics Scorecard
Key Metrics Scorecard Reduce Cyclicality Top-Line Growth Improve Margins Productivity Improvements Earnings Growth Mid Market Strategy ^ ^ ^ ^ Process Technology Innovation ^ ^ ^ ERP System ^ ^ ^ Operational Excellence ^ ^ ^ Strategic Sourcing ^ ^ New Leg ^ ^ ^ New Products ^ ^ ^
Slide 22: Key Metrics Scorecard (cont.)
Key Metrics Scorecard (cont.) Strategic Initiative Key Metrics Status Operational Excellence Operational Excellence Southern Plant Full utilization within 24 months from start On Hold Lafayette Transformation Assembly line update completed in 1H'09 Warehouse consolidation completed by Q2-09 Completi
Slide 23: Financials
ee, WABASH, eet OUR INNOVATION MOVES THE WORLD™ Financials
Slide 24: Financial Highlights
Financial Highlights 2004 2005 2006 2007 9 mon. '08 East 1041.1 1213.7 1312.2 1102.5 605.5 2004 2005 2006 2007 9 mon. '08 East 1.8 3.06 0.3 0.52 -0.47 2004 2005 2006 2007 9 mon. '08 East 0.121 0.111 0.08 0.083 0.042 Revenue Diluted EPS ($ millions) 2004 2005 2006 2007 9 mon. '08 East 0.086 0.079 0.0
Slide 25: Financial Highlights (cont.)
Financial Highlights (cont.) 2004 2005 2006 2007 9 mon. '08 East 56.9 50.5 51.8 59.3 8.3 Operating Cash Flow ($ millions) 2004 2005 2006 2007 9/30/08 Total Equity $164.6 $278.7 $278.0 $279.9 $265.2 Debt $127.5 $125.5 $125.0 $104.5 $84.2 Cash $41.9 $67.4 $29.9 $41.2 $12.3 Inventory Turnover 10.2 10.7
Slide 26: Financial Outlook
Financial Outlook 2007 Long-term Revenue $1.1B >$1.5B Market Share (total trailers) 21% 23% Non-trailer Revenue <$5M > $75M Gross Margins 8% > 10% EBITDA Margins 5% > 8%
Slide 27: Core Strengths Today & Tomorrow
Core Strengths Today & Tomorrow Positioned well today 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 ca
Slide 28: Our Innovation Moves the World
VWWABA ® OUR INNOVATION MOVES THE WORLD™
Wabash National — Stephens Fall Investment Conference 2008 on 6ix