Wabash National Corporation · NYSE:WNC
Wabash National — BB&T 23rd Annual Transportation Services Conference 2008
29 slides from Wabash National's conference presentation, Feb 14, 2008
Slide 1: BB&T 23rd Annual Transportation Services Conference
BB&T 23rd Annual Transportation Services Conference February 14, 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: Company At-A-Glance
Company At-A-Glance Key Facts: Founded as a start-up in 1985 IPO in 1991 - NYSE: WNC Headquartered in Lafayette, IN 3,400 employees 2007 sales of $1.1B 2007 trailer production of ~ 46,500 units #1 North American Designer, Manufacturer and Marketer of Truck Trailers and Related Transportation Equipme
Slide 4: Investment Highlights
Investment Highlights Market leader: #1 position in North American trailer market Superb brand recognition: Supported by diverse, long-standing customer relationships Innovation leader: Best-in-class technology (e.g., DuraPlate(r)) New leadership: Strong management team & Continuous Improvement (CI)
Slide 5: WNC Product Offering
DuraPlate Pups Arctic Lite(r) Vans Transcraft (r) Flatbeds DuraPlate HD(r) Dry Vans RoadRailer(r) DuraPlate(r) Dry Vans WNC Product Offering FreightPro(r) Dry Vans Dry Vans Refrigerated Doubles Vans Intermodal Platforms
Slide 6: WNC Manufacturing Locations
WNC Manufacturing Locations Lafayette, Indiana Dry van production DuraPlate(r) composites Corporate headquarters Lafayette, Indiana Refrigerated van production Anna, Illinois Transcraft flatbed production Harrison, Arkansas Wabash Wood Products flooring production
Slide 7: WNC Customer Relationships
WNC Customer Relationships U, 5. XPRESS PY, ane Ee ENTERPRISES, INC. Hea aees suey, AVERITT Saale “Salitions l | PRIME ‘inc.
Slide 8: WABASH
‘ WABASH io ont 1 Ue You've seen our tr ucks, Ww exper ee Ou
Slide 9: WNC Channels to Market
WNC Channels to Market Extensive sales network Factory direct Wabash dealers 25 independent dealers Wabash National Trailer Centers 10 sales and service branches Transcraft dealers 90 independent dealers Industry leading brands Phoenix Branch
Slide 10: 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 11: 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 12: Benefits: Proprietary Composite Trailers
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 13: Freight Tonnage
Freight Tonnage 116.7 December
Slide 14: Industry Outlook
Industry Outlook 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E Class 8 Trucks 280722 206555 118682 148236 141429 216521 269408 296474 131565 155634 242683 150472 205904 Total Trailers 314087 275223 140100 142658 183162 235953 256091 280082 217020 186552 220410 270346 276786 Un
Slide 15: Van Trailer Forecast
Van Trailer Forecast Source: Van projections based on ACT Research Dry Vans Wabash Market Share Reefers U.S. Dry & Refrigerated Van Trailer Forecast WNC ERP Implementation
Slide 16: Recent Initiatives
Recent Initiatives Implemented new ERP system Introduced new ALPHA line Focused on operational excellence ERP Implementation Improvements in productivity, process yields, and throughput* *Throughput per shift day
Slide 17: Strategic Sourcing & Pricing
Strategic Sourcing & Pricing US 2007 2012 Spend 80 5 15 Low Cost Global Sourcing Goal = 20% of spend by 2012 Build low-cost global sourcing platform Current situation 75% of COGS is purchased parts and components 5% currently sourced in low-cost countries Plan Move 20% of parts and components to low
Slide 18: DuraPlate Growth Opportunity
DuraPlate(r) Growth Opportunity DuraPlate Competition 17 83 Est. DuraPlate(r) Fleet Penetration >340,000 Units Sold Faster growth than existing penetration: >28% Dry Vans sold today are DuraPlate(r) *Source: ACT Research; WNC estimates DuraPlate(r) replacement cycle is beginning 1997 1998 1999 2000
Slide 19: Adjacent DuraPlate Opportunities
Source: WNC Estimates Adjacent DuraPlate(r) Opportunities DuraPlate Products Group Swing & Overhead Doors Truck bodies Aftermarket Alcoa Relationship Other '03 '04 '05 '06 '07E '08E '09E '10E '11E '12E DuraPlate Panels 0.79 3.7 2.9 5 6 15.8 35.6 50.9 65.6 81.7 Incremental Revenue Growth Opportunitie
Slide 20: Changing Customer Concentration
Changing Customer Concentration Expanding Mid-Market Presence Partner (represents historic core customers) Non-Partner Partner East 0.39 0.61 2002 Non-Partner Partner East 0.740000000262964 0.26 2007 2003 2004 2005 2006 2007 1499 5851 11929 16244 19069 Cumulative Mid-Market Unit Sales
Slide 21: Next Years - Our Commitment
Next 5 Years - Our Commitment Value Creation Innovation People Customer Focus Operational Excellence Corporate Growth ? Through Tactical Execution Process Technology Leadership Quality Leadership Cost Optimization Bench Strength Training Diversification Service Incubator Next "DuraPlate" Next "Reefe
Slide 22: Strategic Initiatives
Strategic Initiatives 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 23: Financial Highlights
Financial Highlights 2002 2003 2004 2005 2006 2007 East 819.6 887.9 1041.1 1213.7 1312.2 1102.5 2002 2003 2004 2005 2006 2007 East -2.43 -2.26 1.8 3.06 0.3 0.52 Revenue Diluted EPS
Slide 24: Financial Highlights
Financial Highlights 2002 2003 2004 2005 2006 2007 East 0.06 0.09 0.12 0.110000000046565 8.00000000465656E-02 0.08 Gross Margin EBITDA Margin 2002 2003 2004 2005 2006 2007 East -0.01 -0.003 0.086 0.079 0.033 0.045
Slide 25: Financial Highlights
Financial Highlights 2002 2003 2004 2005 2006 2007 East 109.9 58.3 56.9 50.5 51.8 59.3 Op. Cash Flow Consistent annual OCF (in millions $) 2002 2003 2004 2005 2006 2007 Total Equity $74.0 $22.2 $164.6 $278.7 $278.0 $279.9 Debt $282.0 $227.3 $127.5 $125.5 $125.0 $104.5 Cash $35.7 $12.6 $41.9 $67.4 $2
Slide 26: Financial Outlook
Financial Outlook Expectations 2006 2007 Long-term Revenue $1.3B $1.1B >$1.5B Market Share (total trailers) 21% 21% 23% Non-trailer Revenue <$5M <$5M > $75M Gross Margins 8% 8% > 10% EBITDA Margins 3.3% 4.5% > 8%
Slide 27: Uses of Cash
Uses of Cash Priority of capital allocation decisions Investment in the business Opportunistic investments Strategic bolt-on acquisitions Quarterly cash dividend Share repurchase program Offset dilution Refinance convertible notes
Slide 28: Summary
Summary Market leader: #1 position in North American trailer market Superb brand recognition: Supported by diverse, long-standing customer relationships Innovation leader: Best-in-class technology (e.g., DuraPlate(r)) New leadership: Strong management team & Continuous Improvement (CI) culture Signi
Slide 29: VYWWABA
VYWWABA ® OUR INNOVATION MOVES THE WORLD™
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