Slide 1: 2013 Analyst/Investor Day
2013 ANALYST/INVESTOR DAY Wabash National Corporation May 8, 2013
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: Dick Giromini, President and CEO
2013 ANALYST/INVESTOR DAY Wabash National Corporation May 8, 2013 Dick Giromini President and Chief Executive Officer
Slide 4: Company Background
4 Acquired assets of leading liquid tank and dry bulk trailer producer C OMPANY B ACKGROUND Acquired assets of leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position Introduced the DuraPlate ® composite dry van trailer Record trailer productio
Slide 5: WNC 2007 Profile
5 WNC 2007 P ROFILE Manufacturing Retail 2007 Sales: $953M • Dry & Refrigerated Vans • Platform Trailers 2007 Sales: $150M • 11 retail locations in U.S. • New & Used Trailer Sales • Parts & Service Wabash National Corporation
Slide 6: 2007 Strategic Plan
2007 STRATEGIC PLAN A NextSteps WABASH NATIONAL
Slide 7: 2007 Strategic Plan Goals/Objectives
7 2007 S TRATEGIC P LAN G OALS / O BJECTIVES Focus on high - margin opportunities Mission: Transform Wabash National into a diversified industrial manufacturer and service provider by leveraging core competencies; Improve profitability via operational excellence; Capture additional revenue streams t
Slide 8: 2007 Strategic Pyramid: Executable Initiatives
8 2007 S TRATEGIC P YRAMID : E XECUTABLE I NITIATIVES 15. Develop New Non - core Business Opportunities 16. Develop Global Joint Ventures/ Alliances 17. Make Strategic Acquisitions 1. Optimize Manufacturing Costs 2. Accelerate Strategic Sourcing Initiative 3. Optimize Inventory Mgmt. 4. Create Purch
Slide 9: Execution of the Strategic Plan
9 Goals Objectives E XECUTION OF THE S TRATEGIC P LAN Achievements Diversify the Business Operational Excellence Grow the Business 2007 Transportation Equipment Purchasing Consortium 2008 Wabash Composites 2008 Lafayette Transformation 2008 Benson Acquisition (assets) 2009 Transcraft Consolidation 2
Slide 10: WNC 2013 Profile
10 WNC 2013 P ROFILE Wabash National Corporation Commercial Trailer Products 2012 Sales: $994M • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Retail 2012 Sales: $157M • 18 Retail L ocations in U.S. • New & Used Trailer Sales • Parts & Service Tank Services Diversified Products 2
Slide 11: Geographic Footprint
11 G EOGRAPHIC F OOTPRINT Corporate HQ Manufacturing Locations Company - Owned Retail Locations Dealers / Service Centers
Slide 12: Investment Highlights
12 I NVESTMENT H IGHLIGHTS x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Best - in - class, technologically innovative products x Trucking recovery and aging fleet equipment fuels tra
Slide 13: Diversified Products
2013 ANALYST/INVESTOR DAY Diversified Products May 8, 2013 Dick Giromini President and Chief Executive Officer
Slide 14: Diversified Products Profile
14 Broad Product Portfolio Serving Diverse Markets Key Statistics Recent Financial Performance Key Brands ▪ Wabash Composites, Wabash Wood Products, and Walker Group ▪ Diverse portfolio of products and services ▪ Broad customer, geographic, and end market diversification ▪ Higher growth and higher m
Slide 15: Walker Group
2013 ANALYST/INVESTOR DAY Walker Group May 8, 2013 Dick Giromini President and Chief Executive Officer
Slide 16: Walker Group Profile
16 Focused on Diversified, Higher M argin G rowth. Key Statistics Diversified Products Proforma Revenue Key Customers ▪ #1 Manufacturer of Liquid T ank Trailers (3,000+ trailers shipped in 2012), A irplane R efuelers & Engineered P roducts ▪ High Gross Margin (>20%) and Stable, Solid Cash Generation
Slide 17: Experienced Leadership Team
17 Name Years With Wabash/Walker Brad Walker Vice President Finance, Walker Group 31 John Cannon Vice President of Engineering, Walker Group 26 Dave Hodorff Vice President of Operations, Walker Group 15 Dave Nick Vice President & General Manager, Engineered Products 16 Jim Miller Vice President of S
Slide 18: Strategic M&A: Anniversary of Walker Acquisition
18 S TRATEGIC M&A: 1 Y EAR A NNIVERSARY OF W ALKER A CQUISITION Same Criteria Applies to Organic Opportunities Growth Guidelines 1. Diversification from Concentrated Dependence on Dry Van Business 2. Gross Margins > 20% / Op. Income > 10% 3. Industry Leadership 4. Leverage Core Competencies and Capa
Slide 19: Walker Group: Diversification
19 Broad Product Portfolio Serving Diverse Markets End Markets Product Type Product Category W ALKER G ROUP : 1) D IVERSIFICATION Note: 1. All information based off of 2011 revenues Geographies Transportation Products, 76% Engineered Products, 24% Manufacturing ,87% Parts & Service, 13 % U.S., 87% A
Slide 20: Walker Group: Margins
20 Strong and Resilient Financial Profile Revenue and Gross Margin W ALKER G ROUP : 2) M ARGINS Adj. EBITDA and Adj. EBITDA Margin » Industry Innovator with Leading Technology and Engineering Know - How » Capturing of Wabash/Walker Synergy » Low Cost Manufacturing Option and Superior Cost Position M
Slide 21: Walker Group: Industry Leadership
21 Liquid Trailer and Engineered Products Leader W ALKER G ROUP : 3) I NDUSTRY L EADERSHIP Market Position Products and Markets Market Share Brands # 1 ALL liquid - transportation systems in North America 33% # 1 Stainless - steel liquid - transportation systems in North America 61% # 1 Stainless -
Slide 22: Walker Group: Synergy
22 On - Track to Achieve Targeted Synergies of $10 Million W ALKER G ROUP : 4) S YNERGY Stainless - Steel Dairy Trailer Refined Petroleum Truck 7,000 Gallon Refueler Towable Hydrant Dispenser Liquid Tank Trailers Truck - Mounted Tanks Aviation Refuelers Carts and Hydrant Dispensers Stainless - Steel
Slide 23: Strengthened Strategic Footprint
23 Strengthened Strategic Footprint W ALKER G ROUP : 4) S YNERGY Wabash National Trailer Center Walker Parts, Services and Refurbishment Wabash Manufacturing Walker Manufacturing
Slide 24: New Product Development into the Energy Market
24 New Product Development into the Energy Market W ALKER G ROUP : 5) G ROWTH Entry into New Products and End Markets: » In 2010, Walker / Brenner Developed and Introduced an Aluminum Shale Oil Tank Trailer, “407 Crude Tank” » Wabash Began Contract Manufacturing Carbon Steel Frac Tanks in 2011 and i
Slide 25: Beall Acquisition Creates Broadest Tank Trailer Portfolio
25 Beall Acquisition Creates Broadest Tank Trailer Portfolio W ALKER G ROUP : 5) G ROWTH - M&A B EALL Beall Aluminum Petroleum Tank Trailer (406) Beall Aluminum Dry Bulk Trailer (Pneumatic) Trailer Type Non - Code Code 406 Code 407 Code 407 Special Permit Food Grade Sanitary Code 412 High Pressure 3
Slide 26: Walker Group: New Innovation – Transportation Products
26 W ALKER G ROUP : N EW I NNOVATION – T RANSPORTATION P RODUCTS ▪ Leveraging Wabash aerodynamic technologies used in the Vans’ business by bringing the Wabash AeroSkirt ® technology to tank trailers, in addition to utilizing lighter weight composites. ▪ Walker is heavily involved in effecting posit
Slide 27: Walker Group: New Innovation – Transportation Products
27 W ALKER G ROUP : N EW I NNOVATION – T RANSPORTATION P RODUCTS • Expanding the use of Lean Duplex tank trailers to include the most common corrosives, such as sulphuric acid. Industry Leader in Innovation / New Product Development Lean Duplex » First to Market with DOT Approved Lean Duplex » Impro
Slide 28: Walker Group: New Innovation – Engineered Products
28 W ALKER G ROUP : N EW I NNOVATION – E NGINEERED P RODUCTS ▪ Evaluating DuraPlate ® as a potential external skin for our Mobile Clean Room products. ▪ We are heavily involved in developing the first viable sterilization system alternative in over 20 years. Growth Opportunities Through Innovation W
Slide 29: Walker Group Highlights
29 x Industry leader in tank trailer and engineered products with the broadest portfolio x Diversified platform serving a variety of attractive end markets x Leading brands and longstanding relationships with blue - chip customer base x Best - in - class , technologically innovative products x Stabl
Slide 30: Diversified Products - Wabash Composites
2013 ANALYST/INVESTOR DAY Diversified Products - Wabash Composites May 8, 2013 Jamie Scarcelli Vice President & General Manager
Slide 31: Wabash Composites Profile
31 Focused on Diversified, Higher M argin Growth. Key Statistics Diversified Products Proforma Revenue Key Customers - Examples ▪ Growing Product P ortfolio ▪ Key Products : composite panels, aerodynamic trailer skirts, portable storage containers, truck bodies walls ▪ Brands : DuraPlate, AeroSkirt,
Slide 32: Wabash Composites Product Platforms
32 Composite Panels Aerodynamic Products Mobile Solutions Custom Solutions Product Strategy Based on Leveraging P latforms to Grow. W ABASH C OMPOSITES P RODUCT P LATFORMS
Slide 33: Extending Product Platforms – Strategic Growth Initiatives
33 E XTENDING P RODUCT P LATFORMS – S TRATEGIC G ROWTH I NITIATIVES Constant Process of Developing New Products and Markets. New Composite Technologies COMPOSITE PANELS New Aero Devices AERODYNAMICS Shelters, Offices, & Trailers MOBILE SOLUTIONS Innovative Solutions CUSTOM SOLUTIONS
Slide 34: Custom Solutions - New Products Example
34 C USTOM S OLUTIONS - N EW P RODUCTS E XAMPLE New DuraPlate Deck System Prior System Focus on Driving Innovative, Differentiated S olutions.
Slide 35: Wabash Composites - Industry Dynamics
35 W ABASH C OMPOSITES - I NDUSTRY D YNAMICS Demand Drivers • Forecasted growth in Truck Body market drives DuraPlate® panel sales growth. • Housing Starts support potential moving and storage growth and need for portable storage containers. • CARB (California Air Resource Board) compliance requirem
Slide 36: Wabash Composite Highlights
36 W ABASH C OMPOSITE H IGHLIGHTS x Five - year history of successful growth in diversified, higher margin products. x Low capital model leveraging existing intellect. x Established brand. x Leader in composite panel technology. x Growing, blue chip customer base. x Innovative, solutions - driven pr
Slide 37: Commercial Trailer Products
2013 ANALYST/INVESTOR DAY Commercial Trailer Products May 8, 2013 Brent Yeagy Vice President & General Manager
Slide 38: Commercial Trailer Products: Segment Profile
38 CTP Operating Income Up Nearly $50 Million Since 2010 Key Statistics Recent Financial Performance - CTP Examples of Key Customers ▪ Comprehensive trailer products portfolio ▪ 2012 New Trailer Shipments: 43,600 ▪ Core products: dry vans, refrigerated vans, platform trailers ▪ Brands: Wabash Nation
Slide 39: Industry Forecasts
39 I NDUSTRY F ORECASTS ▪ Divergence between industry forecasters has narrowed ▪ Strong demand above replacement levels forecast for next 5 years in all CTP segments ▪ CSA & CARB continue to drive demand Strong D emand Forecasted for the Next Five Years ACT Forecast by Segment 2012 2013 2014 2015 20
Slide 40: 2013 Outlook: Industry Forecast
40 2013 O UTLOOK : I NDUSTRY F ORECAST Strong demand above replacement levels Short - /Mid - Term Demand Drivers Source: ACT Sources: 1974 - 1989:SMCC/TBB; 1989 - 2012: ACT ▪ HOS Rules (Hours of Service) ▪ 7 - day maximum driving time reduced from 82 to 70 hours ▪ Some customers expect a “5 % - 12%”
Slide 41: Commercial Trailer Products: Strategic Initiatives
41 C OMMERCIAL T RAILER P RODUCTS : S TRATEGIC I NITIATIVES Bottom Line Impact Through Channel Mix Optimization and Operational Excellence Innovation Themes Bottom Line Growth I nnovation L eader in Trailers • I ncrease productivity and utilization • Lower operating costs • Optimize weight, cube, &
Slide 42: Commercial Trailer Products: Long History of Innovation
42 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Legacy of Industry Leadership in Value - Added Innovation Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum. Plate
Slide 43: Industry-Leading Product Innovation
43 I NDUSTRY - L EADING P RODUCT I NNOVATION Customer - Focused C ommercialization Process Launch Innovation Description 2009 TrustLock® Plus Proprietary door locking system with single lock mechanism 2009 DuraPlate® AeroSkirt® Aerodynamic side - faring that delivers 6% fuel savings 2009 - 2011 Bond
Slide 44: Commercial Trailer Products: New Innovation
44 C OMMERCIAL T RAILER P RODUCTS : N EW I NNOVATION » Provides a Smooth Exterior Surface » Reduced Weight » Reduction in Leak P otential » Easier to Repair Bonded DuraPlate® Sidewall Bonded Logistics and Sky Lights Bonded DuraPlate® Nose Meeting Customer Needs with Innovative Solutions 2014 Launch
Slide 45: Commercial Trailer Products: Van Innovation
45 DuraPlate® Composite Trailer Roof (U.S. Patent No.8,025,331) MaxClearance Overhead Door Frame C OMMERCIAL T RAILER P RODUCTS : V AN I NNOVATION Driving Fundamental Changes in Trailer Design and Use » Provides a Smooth Exterior & Interior Surface » Increased Cube Space due to elimination of interi
Slide 46: Commercial Trailer Products: Innovation
46 C OMMERCIAL T RAILER P RODUCTS : I NNOVATION Revolutionary Innovation NEXT GENERATION PRODUCTS AERODYNAMIC / FUEL EFFICIENCY WEIGHT REDUCTION VERSATILITY / MARKET SPECIFIC SOLUTIONS ▪ Composites ▪ High Strength Steels ▪ Processing Methods ▪ Under Carriage Wind Deflection ▪ Thermal Efficiency ▪ Ni
Slide 47: Commercial Trailer Products Highlights
47 C OMMERCIAL T RAILER P RODUCTS H IGHLIGHTS x Industry leader in van and platform trailer manufacturing x Best - in - class, technologically innovative products x Leading brands and long - standing customer relationships x Trucking recovery and aging fleet equipment fuels trailer demand x Mature p
Slide 48: Retail
2013 ANALYST/INVESTOR DAY Retail May 8, 2013 Bob Nida Vice President & General Manager
Slide 49: Retail: Segment Profile
49 Brenner Tank Services Increases Geographic Footprint Key Statistics 2012 Recent Financial Performance 2012 Revenue Breakout R ETAIL : S EGMENT P ROFILE -2 -1 0 1 2 3 4 0 50 100 150 200 2010 2011 2012 Operating Income (M$) Revenue (M$) Revenue Op. Income ▪ Dealership model, selling new and used tr
Slide 50: Retail: Wabash National Trailer Centers + Brenner Tank Services
50 R ETAIL : W ABASH N ATIONAL T RAILER C ENTERS + B RENNER T ANK S ERVICES Strategic Footprint Providing National Service
Slide 51: Retail: New Markets/Growth – Mobile Service
51 R ETAIL : N EW M ARKETS /G ROWTH – M OBILE S ERVICE Mobile Service to Meet Our Customer’s Growing Needs Key Drivers ▪ CSA 2010 Compliance ▪ Asset Utilization ▪ Leverage Retail Locations in Hub and Spoke Model to Expand into New Service Locations 0 10 20 30 40 2009 2010 2011 2012 Growth in Mobile
Slide 52: Retail: New Growth – 3rd Party Maintenance
52 R ETAIL : N EW G ROWTH – 3 RD P ARTY M AINTENANCE Value Added 3 rd Party Maintenance Management Key Drivers ▪ Outsourcing of Non - Core Activities by Traditional Freight Providers ▪ Wabash Ability to Provide Comprehensive Solutions : Minor to Major Repairs, National Parts Pricing, Flexible Labor
Slide 53: Retail: New Innovation – Aftermarket Support
53 R ETAIL : N EW I NNOVATION – A FTERMARKET S UPPORT Leveraging Retail Footprint to Deliver Wabash Innovations Key Drivers ▪ Fleet Focus on Reduced Operating Costs Driving Large Scale Retrofits ▪ Strategic Location of Retail Locations to Support National Fleet Upgrades ▪ Integration with Commercial
Slide 54: Retail: New Markets – Tank Parts & Service
54 R ETAIL : N EW M ARKETS – T ANK P ARTS & S ERVICE Capture Synergy of Brenner Tank Service Expertise Key Drivers ▪ Leverage Combined Footprint to Capture Higher - Margin Tank Parts & Service ▪ Low CapEx Investment Required for Wabash National Trailer Centers ▪ Support Walker Brand Products Nationa
Slide 55: Retail Segment Highlights
55 x Strategic footprint providing national support x Platform which supports the broadest product range in the industry x Integrated with OEM to deliver best practices and innovation in the aftermarket x Value added reseller of new and used trailers & parts and service x Expansion into new markets
Slide 56: Financial Overview
2013 ANALYST/INVESTOR DAY Financial Overview May 8, 2013 Mark Weber SVP - CFO
Slide 57: Broadest Trailer Product Portfolio
57 B ROADEST T RAILER P RODUCT P ORTFOLIO 2012 Shipments WNC Trailer Type Industry (1) WNC (2) Position Brands Dry Van 129,543 35,100 Refrigerated Van 34,094 4,200 Platform 23,686 3,000 Dollies 3,975 1,400 Heavy Lowbed 3,640 Medium Lowbed 8,046 Dump 7,092 Liquid Tank 7,833 3,000 (5) Dry Bulk 3,049 -
Slide 58: Diversification of Revenues
58 Non - Trailer Revenues, 18% New & Used Trailers, 82% D IVERSIFICATION OF R EVENUES …N EW P RODUCTS 2012 Revenues Non - Trailer Revenues Accelerating Growth of Higher Margin, Non - Trailer Revenues 67 59 46 67 110 258 0 50 100 150 200 250 300 2007 2008 2009 2010 2011 2012 ($ millions) ▪ Organic Gr
Slide 59: Financial Profile
59 338 640 1,187 1,462 200 500 800 1,100 1,400 1,700 2009 2010 2011 2012 ($ millions) ($ millions) 5 119 39 (43) (60) (30) 0 30 60 90 120 150 2009 2010 2011 2012 Notes: 1. See Appendix for reconciliation of non - GAAP financial information F INANCIAL P ROFILE …N EW G ROWTH Revenues 2012 Revenue & Op
Slide 60: Diversification Efforts Gaining Traction
60 ▪ Diversified Products Segment is Gaining Critical Mass ▪ Commercial Trailer Products & Diversified Products Are Nearly Equal Contributors to Company Performance ▪ Retail Segment Provides Support to Both Segments & Captures Additional Channel Value 47% 3% 50% D IVERSIFICATION E FFORTS G AINING T
Slide 61: Flexible Capital Structure
61 Flexible Capital Structure 0 50 100 150 200 250 300 2013 2014 2015 2016 2017 2018 2019 ($ millions) Required Minimum Maturities (1)(2) Debt & Capital Lease Maturities Strong Balance Sheet & Free Cash Flow Yield • Cash Balance of $59M at 3/31/13 • Total liquidity of $200M at 3/31/13 • $142M availa
Slide 62: Improved Platform for Future Profitability
62 Paint Capacity Expansion Wabash Composites Business Launched: I MPROVED P LATFORM FOR F UTURE P ROFITABILITY Acquired assets of leading regional liquid tank and dry bulk producer Acquired assets of leading aluminum flatbed producer Lafayette Transformation Dry Van productivity initiative Flatbed
Slide 63: 2008 Expectations…5 Years Later
63 2008 E XPECTATIONS …5 Y EARS L ATER Expectations 2007 Long - term (1) 2012 Revenue $1.1B >$ 1.5B $1.5B Market Share (total trailers) 21% 23% 20% Non - trailer Revenue (2) <$5M > $75M $178M Gross Margins 8% > 10% 11% EBITDA Margins 4.6% > 8% 8.1% Notes: (1) As presented in the March 26, 2008 Analy
Slide 64: Financial Highlights
64 F INANCIAL H IGHLIGHTS x Significant recovery of top line and bottom line since 2009 ▪ R ecord revenue $1.5 Billion in 2012 x Strong Margin & Earnings Growth ▪ 2012 Gross m argin achieves double digit level at 11.2% ▪ Record o perating EBITDA of $119 Million in 2012 x Solid Cash Generation ▪ LTM
Slide 65: Closing Remarks
2013 ANALYST/INVESTOR DAY Closing Remarks May 8, 2013 Dick Giromini President and Chief Executive Officer
Slide 66: 2007 Strategic Pyramid: Executable Initiatives
66 2007 S TRATEGIC P YRAMID : E XECUTABLE I NITIATIVES 15. Develop New Non - core Business Opportunities 16. Develop Global Joint Ventures/ Alliances 17. Make Strategic Acquisitions 1. Optimize Manufacturing Costs 2. Accelerate Strategic Sourcing Initiative 3. Optimize Inventory Mgmt. 4. Create Purc
Slide 67: Strong Operational Platforms Positioned for Future Growth
67 Strong Operational Platforms Positioned for Future Growth Wabash National Corporation Diversified Products Retail Commercial Trailer Products • Customer focused total cost of ownership through best in class product offerings • Lean manufacturing focus and productivity improvements • Enhanced prod
Slide 68: Long-Term Strategic Objectives
68 L ONG - T ERM S TRATEGIC O BJECTIVES Expectations 2011 2012 Long - term Revenue $1.2B $1.5B >$ 2.0B Diversified Products Revenue (1) $107M $178M > $600M Gross Margins 5.6% 11.0% > 13% EBITDA Margins 3.3% 8.1% > 10% Net Leverage (2) 1.3x 3.1x < 2.0x Notes: (1) Diversified Products segment revenues
Slide 69: Investment Highlights
69 I NVESTMENT H IGHLIGHTS x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Best - in - class, technologically innovative products x Trucking recovery and aging fleet equipment fuels tra
Slide 70: Question & Answer Session
2013 ANALYST/INVESTOR DAY Question & Answer Session
Slide 71: 2013 Analyst/Investor Day
2013 ANALYST/INVESTOR DAY Wabash National Corporation May 8, 2013
Slide 72: Reconciliation of Non-GAAP Measures
72 R ECONCILIATION OF N ON - GAAP M EASURES Notes: - This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA - Totals reported above may not foot due to rounding ($ in millions) 2007 2008 2009 2010 2011 2012 Net income (loss) 16$ (126)$
Slide 73: Reconciliation of Non-GAAP Measures
73 R ECONCILIATION OF N ON - GAAP M EASURES 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net (loss) income (213)$ (200)$ (136)$ (142)$ 1$ 10$ 13$ 15$ 17$ 16$ 33$ 106$ 106$ Income tax expense (benefit) (3)$ (3)$ (3)$ (0)$ (0)$ (0)$ (0)$ 0$ (0)$ 1$ 2$ (57)$ (53)$ Increase (Decrease) in fair value of wa
Slide 74: Reconciliation of Non-GAAP Measures – Walker
74 R ECONCILIATION OF N ON - GAAP M EASURES – W ALKER ($ in millions) Note: This table reconciles annual net income for the periods presented to the non - GAAP measure of Adjusted EBITDA (1) 2009 includes charges related to prior acquisitions, an asset impairment, restructuring and the relocation of