Wabash National Corporation · NYSE:WNC
Wabash National — Raymond James Institutional Investors Conference 2021
21 slides from Wabash National's conference presentation, Mar 1, 2021
Slide 1: Raymond James Institutional Investors Conference
WABASH NATIONAL CORPORATION Raymond James Institutional Investors Conference March 1, 2021
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
2 2 Safe Harbor Statement & Non-GAAP Financial Measures This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts
Slide 3: Wabash National – Changing How the World Reaches You: Key Messages
3 3 Wabash National – Changing How the World Reaches You Key Messages ▪ Wabash National is the leader in transportation solutions with a portfolio of equipment spanning from First to Final Mile. ▪ Refreshed vision, mission & purpose pair with organizational realignment to support strategy ▪ Exceptio
Slide 4: Wabash at a Glance
4 4 66% 17% 17% Commercial Trailer Products Diversified Products Final Mile Products Revenue by Segment 2018 - 2020 average Wabash at a Glance (NYSE: WNC) 4 To be the innovation leader of engineered solutions for the transportation, logistics and distribution industries 1985 Lafayette, IN ~$900M1 ~5
Slide 5: Portfolio of Engineered Solutions
5 5 Portfolio of Engineered Solutions Leading Brands in Diverse End Markets and Industries 5 $1.0B1 COMMERCIAL TRAILER PRODUCTS (CTP) $294M1 DIVERSIFIED PRODUCTS GROUP (DPG) $218M1 FINAL MILE PRODUCTS (FMP) ▪ Dry and Refrigerated Van Trailers ▪ Platform Trailers ▪ Aftermarket Parts and Service ▪ Tan
Slide 6: Broadening Exposure Across Transportation, Logistics and Distribution
6 6 Broadening Exposure Across Transportation, Logistics and Distribution Our Portfolio of Solutions Spans First to Final Mile FIRST MILE MIDDLE MILE FINAL MILE ▪ Long-haul routes of goods ▪ Driven by freight activity ▪ Traditional First Mile carriers can no longer ignore Middle and Final Mile oppor
Slide 7: Purpose, Vision, Mission
7 7 Purpose To change how the world reaches you Vision To be the innovation leader of engineered solutions for the transportation, logistics and distribution industries Mission To enable our customers to succeed with breakthrough ideas and solutions that help them move everything from first to final
Slide 8: Change is Underway: Strategy, Organization & Culture
8 8 Change is Underway: Strategy, Organization & Culture Organizing to Enable our Strategy • Unified sales organization, focused on creating value for customers • Elimination of silos across businesses, fully integrating prior acquisitions • Acceleration of Wabash Management System implementation to
Slide 9: New Organizational Structure Benefits All Stakeholders
9 9 2019 2020 thru 2022 Customers Employees Shareholders • Streamlined commercial structure to facilitate ease of interaction • Enhanced ability to innovate to support rapidly changing transportation needs • Strategic partner with a diverse portfolio of transportation equipment • Improved cost struc
Slide 10: Wabash National 2020 Performance Highlights
10 10 2019 2020 thru 2022 Wabash National 2020 Performance Highlights 61 110 73 111 158 118 78 109 104 2012 2013 2014 2015 2016 2017 2018 2019 2020 Free Cash Flow ($M) Revenue has experienced cycles, but Free Cash Flow has been stable • Rapid action on cost control resulted in 2020 decremental margi
Slide 11: Wabash National 2021 Outlook Highlights
11 11 2019 2020 thru 2022 Wabash National 2021 Outlook Highlights Significant Ramp in ‘21 to Facilitate Strong Run-Rates, Profitability into ‘22 ▪ Revenue up 30%+ to $1.95 billion ▪ Adjusted Operating Margin¹ up 250bps to 4.0 percent • $20M annualized run-rate cost savings from organizational realig
Slide 12: Strategic Platforms to Facilitate Growth Beyond Cycle
12 12 2019 2020 thru 2022 Cold Chain Home Delivery Parts & Services • Expand share in markets driven by movement of goods through the temperature- controlled cold chain • Bring differentiated solutions to create customer value by leveraging innovative technology offerings (Molded Structural Composit
Slide 13: Environmental, Social, Governance
13 13 2019 2020 thru 2022 Environmental Social Governance • Best in class pedigree of innovating to help customers lower emissions by reducing weight, improving aerodynamics and enhancing thermal efficiency • DuraPlate Cell Core composite technology reduces trailer weight by 300lbs, lowering custome
Slide 14: Appendix
ia WABASH AX Appendix 14
Slide 15: 2020 Performance Highlights: Free Cash Flow & Adjusted Net Income
15 15 2019 2020 thru 2022 Wabash National 2020 Performance Highlights Free Cash Flow & Adjusted Net Income ($M) Revenue has experienced cycles, but Free Cash Flow has been stable • Rapid action on cost control resulted in 2020 decremental margin of 14 percent • 2020 trough free cash flow generation
Slide 16: Prudent Balance Sheet Management and Balanced Capital Allocation Strategy
16 1616 16 Prudent Balance Sheet Management and Balanced Capital Allocation Strategy ▪ Manage the business for long-term value creation while protecting the short-term ▪ Focused on maintaining healthy levels of liquidity to support growth opportunities ▪ Net working capital of ~10% of revenue ▪ Redu
Slide 17: Balanced Capital Allocation Strategy
17 17 BALANCED CAPITAL ALLOCATION STRATEGY Managing the business for the long-term while protecting the short-term LIQUIDITY Target net debt leverage of < 2.0x in next 12-24 months1 Monitor for opportunities to de-lever and lower gross debt < 3.0x1 DEBT MANAGEMENT Capital expenditures / R&D to suppo
Slide 18: Reconciliation of Adjusted Segment Operating Income
18 18 Reconciliation of Adjusted Segment Operating Income Unaudited - dollars in thousands Twelve Months Ended December 31, 2020 2019 Commercial Trailer Products Income from operations $ 79,662 $ 145,877 Adjustments: Impairment 377 — Gain on sale of Columbus branch (2,257) — Adjusted operating incom
Slide 19: Reconciliation of Adjusted Diluted Earnings Per Share
19 19 Reconciliation of Adjusted Diluted Earnings Per Share Adjusted Diluted EPS1: Twelve Months Ended December 31, 2020 2019 Diluted earnings per share $ (1.84) $ 1.62 Adjustments: Debt transactions2 0.03 — Impairment 2.01 — Gain on sale of Columbus branch (0.04) — Loss on divestiture of Beall bran
Slide 20: Other Non-GAAP Reconciliations
20 20 Other Non-GAAP Reconciliations Unaudited - dollars in millions ¹ Totals for Adjusted Net Income and Free Cash Flow may not foot due to rounding of individual items to nearest million. Adjusted Net Income (1) : 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net income (loss) 106$ 47$ 61$ 104$ 119
Slide 21: Other Non-GAAP Reconciliations (cont'd)
21 21 Other Non-GAAP Reconciliations1 (cont’d) Unaudited - dollars in millions ¹ Totals for Operating EBITDA and Net Debt may not foot due to rounding of individual items to nearest million. Operating EBITDA 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net (loss) income $ 15 $ 106 $ 47 $ 61 $ 1
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