Gatx Corporation · NYSE:GATX
Gatx — Investor Presentation (March 2006)
21 slides from Gatx's investor presentation, Mar 20, 2006
Slide 1: GATX Corporation March 2006
GATX Corporation March 2006 NYSE: GMT
Slide 2: 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 3: GATX 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 4: 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 w
Slide 5: Profile
Profile Rail Air Specialty Corporate/Other Asset Mix 0.6 0.27 0.07 0.06 Operating Lease Assets Finance Leases Loans Joint Ventures Other Asset Structure 0.73 0.05 0.01 0.1 0.11 Asset Mix Asset Structure Loans 1% Finance Leases 5% $6.5 billion NBV (on and off balance sheet) as of 12/31/05 pg. 5
Slide 6: 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 7: 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 8: Fleet Utilization and North American Rail Market
1998 1999 2000 2001 2002 2003 2004 2005 GATX Fleet Utilization 0.95 0.94 0.92 0.9 0.9 0.93 0.98 0.98 North American Rail Market 1998 1999 2000 2001 2002 2003 2004 2005 Q1 63453 55680 30825 19991 6443 24055 42242 59416 Q2 63120 43456 28176 14452 9281 33383 51446 60544 Q3 69858 36811 26218 11888 14491
Slide 9: Rail Key Initiatives
GATX Rail Key Initiatives Grow core railcar and locomotive fleets Optimize car acquisition costs Effectively manage through industry cycles Enhance European business performance pg. 9 Maximize value of our existing fleet, our infrastructure, our long-term customer relationships and our market positi
Slide 10: Air
GATX Air Lease to commercial airlines worldwide Owned portfolio focused on narrowbody aircraft with weighted average age of 5 years 100% utilization Geographically diverse customer base Extensive aircraft management expertise and experience pg. 10
Slide 11: Owned Aircraft
GATX Owned Aircraft A320 Family B737 Family B757 Regionals NBV of Owned Aircraft 58 34 7 1 NBV of Owned Aircraft pg. 11 Europe South America North America Asia Middle East Africa East 0.46 0.15 0.08 0.15 0.13 0.03 NBV of Aircraft on Lease Aircraft Investment by Aircraft Type Aircraft by Region as of
Slide 12: GATX's Aircraft Investments vs. Aircraft Stored Worldwide
GATX's Aircraft Investments vs. Aircraft Stored Worldwide as of 12/31/05 Source: Airclaims CASE Database & GATX Units in Storage Worldwide GATX NBV ($millions) Aircraft Boeing 727 Boeing 767 Dash-8 Boeing 737 (JT8D) Boeing 747 BAE 146 Fokker 100 Airbus A300 Airbus A310 Embraer ERJ-145 MD-80 Airbus A
Slide 13: Air Key Initiatives
GATX Air Key Initiatives Reduce volatility Maintain high fleet utilization Drive lease rates higher where possible Sell $450 million of older air assets Improve returns Expand aircraft management platform and partnered assets partnered assets partnered assets partnered assets partnered assets partne
Slide 14: GATX Specialty Owned and Managed Portfolio
Marine Rail Aircraft Power Other Specialty Managed Portfolio 0.04 0.28 0.3 0.37 0.01 GATX Specialty Marine Rail Aircraft Mining, Construction & Energy Equipment Production Equipment Other Specialty Owned Portfolio 0.42 0.06 0.05 0.13 0.03 0.31 Production Equipment 3% Mining, Construction & Energy Eq
Slide 15: Specialty Key Initiatives
Specialty Key Initiatives Shipping and Marine Investments in new builds at attractive prices Opportunistic investments or financings of marine-related assets Investment in select asset classes Critical use industrial equipment leases Leverage GATX knowledge and expertise pg. 15 Disciplined investmen
Slide 16: Financial Highlights
Financial Highlights Solid cash flow generation Disciplined pursuit of select investment opportunities Maintain conservative balance sheet pg. 16
Slide 17: Financial Highlights
Financial Highlights 2001 2002 2003 2004 2005 Rail 370 118 250 490 403 Air 577 572 228 225 17 Specialty 402 327 133 23 93 2001 2002 2003 2004 2005 Cash from Continuing Operations 99 209 267 302 285 Portfolio Proceeds 727 689 541 356 250 pg. 17 Portfolio Investments and Capital Expenditures Cash from
Slide 18: Financial Highlights
2000 2001 2002 2003 2004 2005 Adjusted Recourse Debt/Equity + Loss Reserves 5.3 4.3 5 4.4 3.5 3.6 Financial Highlights 4/1/2000 5/1/2000 6/1/2000 7/1/2000 8/1/2000 9/1/2000 10/1/2000 11/1/2000 12/1/2000 1/1/2001 2/1/2001 3/1/2001 4/1/2001 5/1/2001 6/1/2001 7/1/2001 8/1/2001 9/1/2001 10/1/2001 11/1/2
Slide 19: 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 pg. 19
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation Reconciliation Reconciliation pg. 21