Wabash National Corporation · NYSE:WNC
Wabash National — FTR Transportation Conference 2014
19 slides from Wabash National's conference presentation, Sep 11, 2014
Slide 1: A Trailer OEM's Perspective on the CV Market
A TRAILER OEM’S PERSPECTIVE ON THE CV MARKET FTR Transportation Conference September 11, 2014 Dick Giromini, President & CEO
Slide 2: Safe Harbor Statement
2 This presentation contains certain forward - looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward - looking statements, including without limit, those regarding shipment outlook, Operating EBITDA, backlog, de
Slide 3: Strategic Segments
3 S TRATEGIC S EGMENTS Wabash National Corporation Commercial Trailer Products 2013 Sales: $1.1B • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Diversified Products 2013 Sales: $502M • Walker Group • Wabash Composites • Wabash Wood Products Retail 2013 Sales: $181M • 15 Retail L
Slide 4: Transportation Sector Outlook
4 T RANSPORTATION S ECTOR O UTLOOK Strong demand above replacement levels ▪ Manufacturing Activity and Retail Sales driving freight volume ▪ Truck Tonnage at or near record levels ▪ Truck Loadings continue to rise Positive Freight Trends Freight Volume
Slide 5: Trailer Demand Drivers: Carrier Capacity & Rates
5 T RAILER D EMAND D RIVERS Fleet Rates Increase with Tightening Capacity ▪ Active truck utilization has reached 99%, expected to stay elevated ▪ Truckload rates increasing ▪ Fleet net profit margins exceeding previous peak: 5% - 6% ▪ Driver shortage and pay increases Carrier Capacity & Rates
Slide 6: Trailer Demand Drivers: Fleet Equipment and Regulatory
6 T RAILER D EMAND D RIVERS Strong demand above replacement levels Challenging Carrier O perating E nvironment Fleet Equipment – Trailers ▪ Average age of equipment remains near record high ▪ 3 + years of significant underbuy (2008 – 2010) ▪ Heavy - Duty Tractor - Trailer Greenhouse Gas (HD GHG) ▪ C
Slide 7: Trailer Forecast
7 T RAILER F ORECAST ▪ Strong demand above replacement levels forecast for next 5 years ▪ Fleet equipment, capacity and regulations key drivers of trailer demand FTR Production Forecast by Segment 2013 2014 F 2015 F 2016 F Vans 170,300 191,684 181,500 168,419 Tanks 10,925 12,079 11,100 10,353 Major
Slide 8: Our Responsibilities
8 O UR R ESPONSIBILITIES ▪ Lower Operating Costs and Enhance Productivity ▪ Optimize Weight , Cube and Payload Capacity ▪ Extend the Life of the Equipment ▪ Continually Enhance Product Safety & Sustainability
Slide 9: Trade Cycles and Fleet Buying Criteria
9 T RADE C YCLES AND F LEET B UYING C RITERIA Trailer Type Trade Cycle Dry Freight Van 8 - 12 years Refrigerated Van 5 - 7 years Steel/Combo Platform 7 - 10 years Aluminum Platform 12 - 15 years Aluminum Tank 9 - 11 years Stainless Steel Tank 15 - 30+ years ▪ Lower operating costs ▪ Optimize weight,
Slide 10: Increasing Payload – Weight Optimization
10 I NCREASING P AYLOAD – W EIGHT O PTIMIZATION ▪ Hundreds of lightweight options available ▪ Opportunities to improve fuel efficiency, increase payload and offset truck weights ▪ Cost/benefit considerations ▪ Continue to innovate and develop lighter - weight, higher - strength materials and compone
Slide 11: Enhancing Safety, Productivity and Utilization: MaxClearance
11 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION MaxClearance Overhead Door System (U.S. Patent Nos. 8,016,527 and 8,506,221) MaxClearance® Overhead Door System ▪ Provides swing door access in overhead door configuration ▪ Safer operator environment ▪ Reduced door and freight damage ▪ More eff
Slide 12: Enhancing Safety, Productivity and Utilization: Problem
12 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION PROBLEM: Any vehicle between you and a semi blocks visibility of the trailer brake lamps. Current lights do not signal when a trailer is braking ID/Auxiliary Stop Light System
Slide 13: ID/Auxiliary Stop Light System
13 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION ID/Auxiliary Stop Light System ( U.S. Patent Nos. 8,025,331; 8,016,527 and 8,506,221 ) SOLUTION: Header lights now work as auxiliary brake lights to increase visibility. REAR HEADER LIGHTS: NOT BRAKING REAR HEADER LIGHTS: BRAKES APPLIED ID/Auxil
Slide 14: TrustLock Plus
14 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION ▪ Lowers handles to more comfortable position ▪ Improves driver safety and ergonomics ▪ Improves freight security TRADITIONAL DESIGN TRUSTLOCK PLUS DESIGN TrustLock® Plus
Slide 15: Lean Duplex Stainless Steel Tank Trailer
15 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION ▪ Reduces the total weight of a standard DOT 407 tank by 700 lbs. ▪ Offers improved mechanical properties ▪ Eliminates wide temperature fluctuations ▪ Corrosion resistance equivalent to type 316 stainless steel Lean Duplex Stainless Steel Lean D
Slide 16: Corrosion Resistance
16 E NHANCING S AFETY , P RODUCTIVITY AND U TILIZATION ▪ Extending equipment lifecycles ▪ G alvanized components ▪ Composite brackets and housings ▪ Undercoating technology ▪ Oak flooring Corrosion Resistance DuraPlate Composite D oor Plycore Door C orrosion Composite Side M arker B racket Galvanize
Slide 17: Improving Fuel Economy and Sustainability
17 I MPROVING F UEL E CONOMY AND S USTAINABILITY Source: Cascade Sierra Solutions, EPA SmartWay Technology Fuel Savings Trailer Side Skirts 4 - 7% Low Rolling Resistance Tires 3 - 5% Tire Inflation Systems ~1% Trailer - Mounted Gap Reducers 1 - 2% Trailer Boat Tail 1 - 6% Trailer Under Tray Systems
Slide 18: Improving Fuel Economy and Sustainability: Key Products and Initiatives
18 I MPROVING F UEL E CONOMY AND S USTAINABILITY ▪ Nitrogen - based cooling systems reduce greenhouse gas emissions ▪ New aerodynamic devices ▪ Bonding technology ▪ Use of recycled materials ▪ More to come… Key Products and Initiatives Nitrogen - Cooled Refrigerated V an Bonded DuraPlate® Sidewall
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