Gatx Corporation · NYSE:GATX
Gatx — JMP Securities Investors' Meeting (May 2006)
21 slides from Gatx's conference presentation, May 25, 2006
Slide 1: GATX Corporation May 2006
GATX Corporation May 2006 NYSE: GMT ? | SINCE 1898 |
Slide 2: Forward-Looking Statements
NYSE: GMT Forward-Looking Statements Certain statements may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are identified by words such as "anticipate," "believe," "estimate," "expect," "inten
Slide 3: GATX Corporation
GATX Corporation GATX Corporation provides lease financing and related services to customers operating rail, air, marine and other targeted assets. GATX also: Provides an attractive risk-adjusted return to shareholders Is an excellent operator focused on providing quality services to customers Provi
Slide 4: Corporate History
GATX Corporate History Founded in 1898 as a railcar lessor Listed on NYSE in 1916 Initiated quarterly dividends in 1919; paid without interruption since Added (and divested) diversified industrial, financial and leasing businesses through the years Railcar leasing remains the most valuable franchise
Slide 5: Strengths: Keys to Success
GATX Strengths Keys to Success Foundation of GATX is the leasing of long- lived, widely-used assets Railcars - Marine Vessels Locomotives - Industrial Equipment Aircraft Assets in which we possess a unique understanding of what drives value Assets that we provide valuable services in connection with
Slide 6: Profile: Asset Mix and Asset Structure
Profile Asset Mix Asset Structure $6.7 billion NBV (on and off balanced sheet) as of 3/31/06
Slide 7: Rail
GATX Rail One of the largest railcar and locomotive lessors in North America A leading North American tank car lessor Own, manage or have interest in 159,000 railcars worldwide Expanding international presence with over 40,000 cars Leading service provider to shippers in chemical, petroleum, and foo
Slide 8: Rail Fleet
GATX Rail Fleet Tank Cars Covered Hoppers Boxcars & Gondolas Other GATX Rail Worldwide Owned Fleet 79966 29367 7630 10691 GATX Union Tank Car GE Railcar Trinity Other Tank Car Lease Market 0.31 0.35 0.16 0.07 0.11 Boxcars & Gondolas 6% GATX Rail Worldwide Owned Fleet 128,000 railcars as of 12/31/05
Slide 9: North American Rail Market and Fleet Utilization
1998 1999 2000 2001 2002 2003 2004 2005 2006 Q1 63453 55680 30825 19991 6443 24055 42242 59416 87000 Q2 63120 43456 28176 14452 9281 33383 51446 60544 Q3 69858 36811 26218 11888 14491 31858 61052 60986 Q4 66390 33142 22648 8089 18402 33967 58677 69408 1998 1999 2000 2001 2002 2003 2004 2005 1Q'06 GA
Slide 10: Investment Philosophy
Investment Philosophy Maintaining investment discipline 2001 2002 2003 2004 2005 Rail 370 118 250 490 403 Air 574 572 228 225 17 Specialty 407 327 131 23 93 The single most important decision is to buy the asset at an advantaged, attractive price Understand asset value Investing for the long run 30-
Slide 11: GATX Rail Key Initiatives
Maximize value of our existing fleet, our infrastructure, our long-term customer relationships and our market position GATX Rail Key Initiatives Grow core railcar and locomotive fleets Optimize car acquisition costs Continue to improve operational efficiency Enhance European financial performance Ef
Slide 12: Air
GATX Air Lease to commercial airlines worldwide Owned portfolio focused on narrowbody aircraft with weighted average age of 6 years 100% utilization Geographically diverse customer base Extensive aircraft management expertise and experience
Slide 13: Owned Aircraft
GATX Owned Aircraft A320 Family B737 Family B757 Regionals NBV of Owned Aircraft 58 34 7 1 Europe South America North America Asia Middle East Africa East 0.48 0.15 0.08 0.15 0.12 0.02 NBV of Owned Aircraft NBV of Aircraft on Lease Aircraft Investment by Aircraft Type Aircraft by Region as of 3/31/0
Slide 14: Air Key Initiatives
GATX Air Key Initiatives Strengthen management platform Capitalize on reputation, contacts and knowledge Optimize owned fleet Sell $450 million of older air assets Improve returns & reduce volatility Increase the number of aircraft we manage for others while optimizing our existing fleet to take adv
Slide 15: Specialty
GATX Specialty Marine Rail Aircraft Mining, Construction & Energy Equipment Production Equipment Other Specialty Owned Portfolio 0.4 0.06 0.05 0.11 0.09 0.29 Rail Aircraft Power Other Specialty Managed Portfolio 0.29 0.3 0.4 0.01 Production Equipment 9% Mining, Construction & Energy Equipment 11% Ai
Slide 16: Specialty Key Initiatives
GATX Specialty Key Initiatives Marine Investments in new builds at attractive prices Industrial Equipment Finance Critical use industrial equipment Leverage GATX knowledge and expertise Disciplined investment to grow portfolio of shipping and select industrial equipment assets
Slide 17: Specialty Shipping JVs
GATX Specialty Shipping JVs 4 Active Operating Joint Ventures JV Name Date Entered Cardinal Marine March 2000 Somargas August 2000 Clipper Third December 2002 Clipper Fourth March 2005 Partners are shipping pool operators Types of vessels 6 chemical parcel tankers (Cardinal) 6 LPG/E carriers (Somarg
Slide 18: Specialty Industrial Equipment Finance (IEF)
GATX Specialty Industrial Equipment Finance (IEF) Strategically invest in equipment assets, financed to a broad range of industrial users $5M-$20M transaction size Essential use equipment for companies in mature industries Strong collateral value throughout the economic life of the asset and/or a vi
Slide 19: Financial Highlights
Financial Highlights Solid cash flow generation Disciplined pursuit of select investment opportunities Maintain conservative balance sheet
Slide 20: Financial Highlights
Financial Highlights 2001 2002 2003 2004 2005 Rail 370 118 250 490 403 Air 574 572 228 225 17 Specialty 407 327 131 23 93 2001 2002 2003 2004 2005 Cash from Continuing Operations 99 209 267 302 285 Portfolio Proceeds 727 589 541 356 250 Portfolio Investments and Capital Expenditures Cash from Contin
Slide 21: Capitalizing on Strengths
Capitalizing on Strengths Grow the Rail franchise GATX's most valuable franchise Strong market identity Excellent long-term customer relationships Improve return in Air by managing aircraft Grow Specialty through disciplined investment in targeted assets Positioned for more stable growth