Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (March 2009)
26 slides from Trinity Industries's investor presentation, Mar 10, 2009
Slide 1: Trinity Industries, Inc. March 2009
Trinity Industries, Inc. March 2009
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains "forward looking statements" as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These
Slide 3: Trinity is a Multi-Industry Company
3 Trinity is a Multi-Industry Company Trinity provides infrastructure products and services through five distinct business groups: Revenue and Consolidated Profit percentages for Last Twelve Months Ended 12/31/08 for outside revenues. Total Consolidated Profit Excluding All Other, Corporate & Includ
Slide 4: Trinity's Key Market Leadership Positions
4 Trinity's Key Market Leadership Positions Trinity's Rail Group Largest manufacturer of railcars in North America Largest railcar axle manufacturer in North America Largest railcar coupling device manufacturer in North America Trinity's Rail Leasing and Management Services Group Leading provider of
Slide 5: Trinity's Differentiating Strategies and Tactics
5 Trinity's Differentiating Strategies and Tactics Trinity's strategies and tactics are designed to improve our performance in all economic cycles During the last decade, we have enhanced our multi-industry portfolio by: Strategically growing the Leasing business to provide a solid base of earnings
Slide 6: Trinity's Revenues are More Diversified Than in the Past
6 Trinity's Revenues are More Diversified Than in the Past FY 2000 Total Consolidated Revenue was $2.7 billion *Total Consolidated Profit Excluding All Other, Corporate & Including Leasing External Interest Expense FY 2000 was $320 million **Leasing Percentage Represents Operating Profit Less Extern
Slide 7: Trinity Today
7 Trinity Today Leasing and Management Services Expand relationships with end-users of railcars Introduce new products into the market Provide earnings and cash flow base for Trinity Consistently grow the business Manufacturing Businesses Maintain leadership positions Utilize significant manufacturi
Slide 8: Trinity Has Navigated Through Economic Cycles
8 Trinity Has Navigated Through Economic Cycles Trinity's businesses have gone through multiple economic cycles Our seasoned management knows how to assess the market, proactively plan for cycles and then react to changes in economic conditions We have a performance driven culture that thrives on ma
Slide 9: Trinity's Objectives During the Economic Downturn
9 Trinity's Objectives During the Economic Downturn Our goal is to maintain momentum that we built during the positive economic cycle We plan to strengthen the company as we respond to a declining level of demand for our products by: Consolidating production into more cost effective facilities Reduc
Slide 10: Trinity is Well Positioned for All Economic Cycles
10 Trinity is Well Positioned for All Economic Cycles Trinity had strong momentum as the positive economic cycle came to an end Trinity had significant backlogs as we entered the economic downturn They have enabled normal operating conditions and the opportunity to proactively plan our production Tr
Slide 11: Trinity's Manufacturing Flexibility is a Differentiator
11 Trinity's Manufacturing Flexibility is a Differentiator Trinity's manufacturing flexibility enhances our opportunistic approach We quickly respond to market changes and customer needs Our resources are directed toward highest and best use Manufacturing flexibility across business lines Manufactur
Slide 12: Trinity Has an Excellent Competitive Position in Mexico
12 Trinity Has an Excellent Competitive Position in Mexico More than five decades of in-country operating experience Multiple plants in Mexico Trinity's significant manufacturing capacity in Mexico continues to grow Very strong logistics network in place - 1,000 truckloads crossing the border per mo
Slide 13: Trinity's Companies Have Continuous Synergistic Connections
13 Trinity's Companies Have Continuous Synergistic Connections Trinity's businesses place a high priority on collaborating with each other to continuously generate synergies that provide competitive benefits: Maximized Plant Efficiencies Internal Sourcing of Components & Sub- Assemblies INTERNALLY G
Slide 14: Trinity's Railcar Leasing Company Provides Stability
14 Trinity's Railcar Leasing Company Provides Stability Trinity's leasing company growth over the last decade has established a predictable revenue and earnings base Trinity's leasing company continues to provide strategic benefits to our manufacturing businesses in addition to its strong financial
Slide 15: Trinity's Railcar Lease Fleet has Grown Rapidly
15 Trinity's Railcar Lease Fleet has Grown Rapidly CAGR of 21.5% 8,700 cars 47,850 cars We have built a large fleet of young railcars with long-term leases Our lease fleet will provide a large base of revenues and earnings during the economic down cycle 0 10,000 20,000 30,000 40,000 50,000 60,000 3/
Slide 16: Trinity's Liquidity Position is Strong
16 Trinity's Liquidity Position is Strong More than $775 million in available liquidity as of December 31, 2008 Cash of $161.8 million Corporate Revolver availability of $326.2 million Leasing Warehouse availability of $287.3 million Corporate Revolver $425 million facility Matures October, 2012 No
Slide 17: Trinity's Balance Sheet Remains Solid
17 Trinity's Balance Sheet Remains Solid Cash of $161.8 million at December 31, 2008 Total Debt / Total Capital of 51% The majority of this debt is on the leasing assets This leaves both the manufacturing and leasing businesses with low leverage Corporate debt of $654.2 million Senior Notes of $201.
Slide 18: Rail Industry Shipment Summary and Projections
18 1.2 million railcars = 60,500 cars per year avg. 1964-1983 731,000 railcars = 36,500 cars per year avg. 1984-2003 Rail Industry Shipment Summary and Projections Sources: Historical data per the Railway Supply Institute; projected periods per Global Insight and Economic Planning Associates, Inc. r
Slide 19: Trinity is Optimizing Synergistic Opportunities in the Wind Energy Market
19 Trinity is Optimizing Synergistic Opportunities in the Wind Energy Market Trinity's Structural Wind Tower revenues grew from $11 million in 2004 to $422.5 million in 2008, while the backlog grew from $702.4 million at 12/31/07 to $1.4 billion at 12/31/08 Trinity's concrete business has poured the
Slide 20: Trinity's Recent Operating Results
20 Trinity's Recent Operating Results Trinity's Earnings Summary 2004 - 2008 (1) (1) Earnings per Diluted Share from Continuing Operations Revenues grew 1.3% in the LTM 12/31/08 versus LTM 12/31/07 from $3.83 billion to $3.88 billion, led by: 46% growth ($199mm) in Energy Equipment 8% growth ($182mm
Slide 21: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 22: Rail Group
22 Industry shipments of 61,220 during LTM 12/31/08 with a backlog of 32,136 cars as of 12/31/08 Trinity shipments totaled 28,200 during LTM 12/31/08, compared to 8,300 in all of 2003 Trinity orders totaled 16,699, representing approximately 49% of the Industry total during LTM 12/31/08 Trinity's or
Slide 23: Railcar Leasing and Management Services Group
23 Railcar Leasing and Management Services Group Leading provider of comprehensive railcar leasing and management services Trinity's owned and leased fleet was approximately 47,850 railcars at 12/31/08 as compared to 36,090 at 12/31/07 Single point of contact for equipment and services Strengthens r
Slide 24: Inland Barge Group
24 Revenues up 27% in LTM 12/31/08 vs. LTM 12/31/07 Profitability dramatically improved - Operating Profit/(Loss) margins increased from (7%) in FY 2004 to 13% during LTM 9/30/07 and 19% during LTM 12/31/08 Trinity backlog was $527.8mm at 12/31/08 vs. $752.8mm at 12/31/07 Backlog extends into 2009 R
Slide 25: Construction Products Group
25 Revenues up 1.1% LTM 12/31/08 vs. LTM 12/31/07 Operating Profit neutral LTM 12/31/08 vs. LTM 12/31/07 Nationwide producer of Highway products Positioned in Texas with Concrete and Aggregates Demand tied to construction projects and federal funding Consistent contributor to cash flow Construction
Slide 26: Energy Equipment Group
26 Tank Containers: Consistent and mature business Trinity has taken cost out of the business Improved processes Elimination of non-profitable products Consolidated North American operations Structural Wind Towers: Revenues grew from $11mm in 2004 to $422.5mm in 2008 Trinity's order backlog as of 12
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