Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — 2007 Summer Investment Forum hosted by Hodges Capital Management
25 slides from Trinity Industries's conference presentation, Aug 22, 2007
Slide 1: Trinity Industries 2007 Summer Investment Forum
Trinity Industries, Inc. 2007 Summer Investment Forum Hosted by Hodges Capital Management August, 2007
Slide 2: Forward Looking Statements
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 st
Slide 3: Trinity is a Multi-Industry Company
Trinity is a Multi-Industry Company Trinity is focused on infrastructure products and services in five distinct business groups: Note: Revenue and Operating Profit percentages for Last Twelve Months Ended June 30, 2007 for outside revenues. Note: Revenue and Operating Profit percentages for Last Twe
Slide 4: Trinity's Key Market Leadership Positions
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 coupler manufacturer in North America Trinity's Rail Leasing and Management Services Group Leading provider of railcar l
Slide 5: Trinity Has Experienced Significant Growth
Trinity Has Experienced Significant Growth Trinity's businesses provide a strong platform for growth The vast majority of Trinity's recent growth has been organic Revenues have grown by nearly $2 billion, or 155%, since 2003: 2003 2004 2005 2006 2003 1260 1965 2709.71 3218.9 $705mm growth $509mm gro
Slide 6: Trinity Today
Trinity Today Leasing and Management Services Aggressively Grow our Leasing Business Expand Relationships with End-users of railcars Introduce New Products through Leasing Business Diversify Earnings Base for Trinity Manufacturing Businesses Maximize Returns Expand Manufacturing Footprint in Mexico
Slide 7: Maximize Returns
Maximize Returns Trinity's manufacturing businesses have shown strong operating profit growth: 2005 2006 LTM 06/07 2003 148.3 276.1 287
Slide 8: Trinity Has an Excellent Competitive Position in Mexico
Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico Over five decades of in-country operating experience Multiple plants in Mexico - over 4,000 employees Trinity's significant manufact
Slide 9: Trinity's Unique Manufacturing Flexibility Creates Value
Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's Unique Manufacturing Flexibility Creates Value Trinity's manufacturing flexibility enhances its opportunistic approach
Slide 10: Trinity's Companies Have Continuous Synergistic Connections
Trinity's Companies Have Continuous Synergistic Connections Trinity continuously generates synergies across its businesses: Networking Customer Relationships Internal Sourcing of Components & Sub- Assemblies INTERNALLY GENERATED SYNERGIES Centralized Cost Savings Continued Transition to Low Cost Fac
Slide 11: Trinity's Railcar Lease Fleet is Growing Aggressively
Trinity's Railcar Lease Fleet is Growing Aggressively Trinity added $620 million of railcars to our fleet in 2006 and expects to add another $750-850 million in 2007 At June, 30 2007: Trinity's lease fleet totaled 34,670 railcars, an increase of 299% since 2000, representing over $2.0 billion of lea
Slide 12: Trinity's Operating Profit from Leasing Has Grown Substantially
Trinity's Operating Profit from Leasing Has Grown Substantially 2004 2005 2006 LTM 6/07 2003 42 55.8 106.5 132
Slide 13: Financial Highlights - Manufacturing and Leasing
Financial Highlights - Manufacturing and Leasing Leasing and Management Services Last Twelve Months, June 30, 2007: Revenues of $409 million Reflects 77% growth over LTM 6/06 Operating Profit of $132 million Accounts for 29% of Trinity's operating profit As of June 30, 2007: Total Debt of $676 milli
Slide 14: Consolidated Financial Highlights
Consolidated Financial Highlights Last Twelve Months, June 30 2007: Revenues of $3.4 billion Reflects 12% growth over LTM 6/06 Operating Profit of $419 million Reflects 34% growth over LTM 6/06 Earnings from Continuing Operations of $3.02 per common diluted share ROE of 16.5% As of June 30 2007: Cas
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Trinity's Earnings Summary 2003-2006
EBITDA Margin Line 3 Revenue EBITDA Stack 2 Stack 3 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2002 0.063 1487.3 93.504 50 2003 0.073 1432.8 101 125 2004 0.052 2198.1 98.2 200 2005 0.1 2902 294.3 275 2006 0.1141 3016 500.2 350 Trini
Slide 17: Rail Group
Industry shipments of 71,860 during LTM 6/30/07 with a backlog of 75,010 cars as of 6/30/07 Trinity shipments totaled 26,390 during LTM 6/30/07, compared to 8,300 in all of 2003 Trinity orders totaled 31,030, representing approximately half of the Industry total during LTM 6/30/07 Trinity's order ba
Slide 18: Rail Industry Shipment Summary and Projections
Industry Shipments 1956 67080 1957 99590 1958 42760 1959 37819 1960 57047 1961 31720 1962 36554 1963 44960 1964 69330 1965 77828 1966 90104 1967 83095 1968 56232 1969 69028 1970 65970 1971 54696 1972 47460 1973 59875 1974 66563 1975 72337 1976 52504 1977 51142 1978 67286 1979 84869 1980 80470 1981 4
Slide 19: Railcar Leasing and Management Services Group (TILC)
Railcar Leasing and Management Services Group ("TILC") Leading provider of comprehensive railcar fleet leasing and management services Trinity's owned and leased fleet was approximately 34,670 railcars at 6/30/07 as compared to 27,230 at 6/30/06 Single point of contact for equipment and services Str
Slide 20: Inland Barge Group
Revenue Operating profit Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2003 -4.7 2004 -14.8 2005 15.7 2006 44.5 Revenues up 34% in Q2 07 vs. Q2 06 Profitability dramatically improved - Operating Profit/(Loss) marg
Slide 21: Inland Barge Growth Expected to be Driven by Replacement Demand
Estimated Retirements New Builds 1999 1019 931 2000 1201 831 2001 862 655 2002 1139 596 2003 947 280 2004 942 510 2005 714 328 2006 713 740 Age 0-5 Years 2679 6-10 Years 5049 11-15 Years 3203 16-20 Years 1640 21-25 Years 992 26+ Years 7131 39% are 21+ years old Inland Barge Segment: Growth is Expect
Slide 22: Congressional & Regulation Improvements Positive for Construction and Energy
Congressional & Regulation Improvements Positive for Growth of Construction and Energy Segments Federal Highway Bill provides growth opportunity Bill provides $286.5 billion over six years The Bill provides a 31% increase over the previous funding levels Each state guaranteed at least a 21% increase
Slide 23: Construction Products Group
Revenue OP Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2003 37.5 2004 35.1 2005 55.31 2006 61.5 Revenues up 5% in Q2 07 vs. Q2 06 Nationwide producer of Highway products Positioned in Texas with Concrete, Aggreg
Slide 24: Energy Equipment Group
Revenue OP Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2003 10.9 2004 15.3 2005 31.9 2006 45.7 Tank Containers: Consistent and mature business Trinity has taken cost out of the business Improved processes Elimin
Slide 25: Trinity Industries 2007 Summer Investment Forum
Trinity Industries, Inc. 2007 Summer Investment Forum Hosted by Hodges Capital Management August, 2007
Trinity Industries — 2007 Summer Investment Forum hosted by Hodges Capital Management on 6ix