Wabash National Corporation · NYSE:WNC
Wabash National — Shareholder Meeting (May 2008)
22 slides from Wabash National's shareholder meeting presentation, May 15, 2008
Slide 1: Annual Stockholders' Meeting May 15, 2008
Annual Stockholders' Meeting May 15, 2008
Slide 2: Safe Harbor Statement
This presentation will contain certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are, however, subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by
Slide 3: 2007 Review
2007 Review Improved financial performance Increased gross profits and EPS despite a challenging environment Generated $59 million in operating cash flow Increased raw material turns from 17 to 21 Repurchased 700,000 shares and retired $20 million of convertible notes Improved operational performanc
Slide 4: Recognized Leader in Trailer Industry
Recognized Leader in Trailer Industry WNC Competition 45702 171318 WNC Competition 35319 83289 WNC Competition 4659 19259 2007 Total Trailers WNC Competition 5724 26621 WNC Competition 41043 109910 2007 Total Dry Vans 2007 Total Vans 2007 Total Platforms 2007 Total Reefers Source: ACT, WNC, TrailerB
Slide 5: 2007 Review: Industry challenges
2007 Review Industry challenges Weakening macro-economic environment Decreasing new home starts Property values falling Property foreclosures Weakening freight demand Decreased pricing discipline Rising fuel costs Rising raw material costs Record high aluminum costs Response Headcount adjustments Sp
Slide 6: Industry Outlook
Industry Outlook 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Class 8 Trucks 280722 206555 118682 148236 141429 216521 269408 296474 134518 138239 235028 181195 226456 244179 Total Trailers 314087 275223 140100 142658 183162 235953 256091 279047 216254 160183 186067 231
Slide 7: 2008 Outlook
2008 Outlook Ongoing industry challenges Rising transportation costs Slowing GDP Rising raw material costs Record high aluminum costs Low freight demand Expected shipments 2008 projection of 38,000 units Approximately 23% of estimated shipments based on ACT research projections (162,000 units indust
Slide 8: Next Steps
NextSteps WABASH NATIONAL
Slide 9: Key Elements of the Plan
Key Elements of the Plan Increase Diversification Improve Operational Excellence Capture Additional Growth Opportunities Reduce Cyclicality Improve Profitability Drive Higher Growth Goal: Transform Wabash National into a diversified industrial manufacturer and service provider by leveraging core com
Slide 10: Strategic Pyramid
Strategic Pyramid Executable Initiatives Tactical Actions Value Creation Innovation Customer Focus People Corporate Growth Operational Excellence
Slide 11: Strategic Pyramid: Executable Initiatives
Develop New Non-core Business Opportunities Develop Global Joint Ventures/ Alliances Make Strategic Acquisitions Optimize Manufacturing Costs Accelerate Strategic Sourcing Initiative Optimize Inventory Mgmt. Create Purchasing Consortium Expand Customer Base Leverage the WNC Brand. Optimize and Grow
Slide 12: Operational Excellence
Operational Excellence Optimize Manufacturing Process Southern Plant Lafayette Transformation Strategic Sourcing Purchasing Consortium Inventory Optimization Offset the impact of rising raw materials prices Reduce capital allocation to inventory management Lower materials costs through greater purch
Slide 13: Lafayette Transformation
Lafayette Transformation Enhance Manufacturing Process Lafayette Transformation Streamline production processes and improve manufacturing efficiency Optimize existing line configurations Drive margin improvement Improve material handling processes Consolidate dislocated warehouse facilities Reduce l
Slide 14: Purchase Consortium
Purchase Consortium Wabash National Utility Vans Cargo Vans Trailer Manufacturers Aftermarket Parts Key Participants: Participative Consortium (WNC as Principal) Initially four to five consortium members (Associate Members) Centrally administered and maintained by WNC Leverage similar purchasing req
Slide 15: Industry Leading Innovations
Industry Leading Innovations Launch Date Description Innovation LED Mini-Marker EZ-7(r) Plug G2TM Coating DuraPlate Door(r) SolarGuard Roof(r) 2006 2002 2006 1998 1997 Damage resistant, longer-life lights. Lower maintenance trailer electrical systems. Proprietary rear frame powder coating. Corrosion
Slide 16: Proprietary Composite Trailers Benefits
Benefits: Proprietary Composite Trailers ? Reduced "Total Cost of Ownership" Lower maintenance costs ^ Up to $0.03 per mile Decreased downtime ^ 10-12 years Extended trailer's useful life ^ Increased durability Maintains appearance of trailer ^ $1,000 - $2,000 over sheet & post Enhanced trailer resa
Slide 17: DuraPlate Products Group Non-Core Business Development
DuraPlate(r) Products Group Non-Core Business Development Leverage materials and skills into business opportunities in addition to selling trailers. Grow DuraPlate product sales. Find and develop new business opportunities to diversify and grow the company. Corporate Growth Significant diversificati
Slide 18: Utility Truck Body & Cargo Trailer Markets
Utility Truck Body & Cargo Trailer Markets Expanding relationship with Utilimaster. Developing opportunities with other truck body OEMs. Working on Cargo Trailer OEM segment. Utilimaster DuraPlate(r) Truck Body Morgan DuraPlate(r) Refrigerated Truck Body Concept Wells Cargo DuraPlate(r) Cargo Traile
Slide 19: Portable Storage Container Market
Portable Storage Container Market Portable Containers Industry Current box designs present real opportunity for application of DuraPlate. Opportunities: Sell DuraPlate wall panels to container manufacturers; Produce a standard DuraPlate container and sell directly to the industry; and/or Secure an a
Slide 20: Key Metrics Scorecard
Key Metrics Scorecard Reduce Cyclicality Top-Line Growth Improve Margins Productivity Improvements Earnings Growth Middle Market Strategy/Increased Market Share ^ ^ ^ ^ Process Technology Innovation ^ ^ ^ ERP System ^ ^ ^ Operational Excellence ^ ^ ^ Strategic Sourcing ^ ^ New Leg ^ ^ ^ New Products
Slide 21: WABASH]
p44 WABASH] Seek hs Height | tee ED lent ] ” Whtisy Wee Me: World me Js Peet IRI
Slide 22: Annual Shareholders Meeting May 15, 2008
Annual Shareholders Meeting May 15, 2008