Gatx Corporation · NYSE:GATX
Gatx — Investor Presentation (November 2005)
29 slides from Gatx's investor presentation, Nov 14, 2005
Slide 1: GATX Corporation November 2005
GATX Corporation November 2005 NYSE: GMT
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: 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 that point Added (and divested) diversified industrial, financial and leasing businesses through the years Railcar leasing remains the most valuabl
Slide 5: Strategic Initiatives
Strategic Initiatives Leading market position Deep asset knowledge Long-lived, large ticket asset concentration Service orientation Maintenance, engineering, training, administration and remarketing services Steady growth opportunities Focus on franchise businesses characterized by: pg. 4
Slide 6: Asset Mix
Asset Mix Rail Air Specialty Corporate/Other by NBV 57 30 7 6 $6.7 billion NBV (on and off balance sheet) as of 9/30/05 pg. 6
Slide 7: Business Profile
Business Profile Operating Leases Loans Finance Leases Joint Ventures Other Distribution of Assets 0.73 0.01 0.05 0.12 0.09 Transportation Other Distribution of Assets 0.95 0.05 GATX focuses almost entirely on the leasing business. As an operating lessor, GATX owns hard assets which are placed on le
Slide 8: GATX 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 168,000 railcars worldwide Expanding international presence with over 40,000 cars Leading service provider to shippers in chemical, petroleum, and foo
Slide 9: GATX Worldwide Fleet
GATX Worldwide Fleet Tank Cars Covered Hoppers Boxcars & Gondolas Open Hoppers Auto Racks Intermodal Other GATX Worldwide Owned Fleet (excl Spf) 78825 26310 6973 3983 1236 520 8067 GATX Rail Worldwide Owned Fleet 126,000 railcars as of 12/31/04 pg. 9 Approximately 60 different types of tank cars
Slide 10: North American Tank Car Market Share
North American Tank Car Market Share Stable marketplace Significant barriers to entry Industries served: Chemical Petroleum Food & Agriculture GATX Union Tank Car GE Railcar Other Lease Market 32 36 17 15 Umler Estimate as of 12/31/04 pg. 10 pg. 10
Slide 11: North American Rail Market
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E All Commodities 20293 20547 20779 20682 20634 20435 20148 20207 20904 21352 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 698
Slide 12: GATX Fleet Utilization
GATX Fleet Utilization 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q1'05 Q2'05 Q3'05 Utilization 0.91 0.93 0.95 0.95 0.93 0.92 0.93 0.95 0.95 0.95 0.96 0.95 0.94 0.92 0.9 0.9 0.93 0.98 0.98 0.98 0.98 Source: GATX Rail (North American Owned Fleet) pg. 12
Slide 13: GATX Rail Key Initiatives
GATX Rail Key Initiatives Capitalize on strengthening market and maximize value of existing fleet Grow core railcar and locomotive fleets Secondary market acquisitions Sale/leaseback with customers Drive lease rates higher Execute rail maintenance efficiency initiatives Enhance European business per
Slide 14: GATX Air
GATX Air One of the largest commercial aircraft operating lessors/managers worldwide Focus on narrowbody aircraft Weighted average age of aircraft portfolio is 6 years 100% utilization Geographically diverse customer base pg. 14
Slide 15: GATX Owned Aircraft
GATX Owned Aircraft A320 Family B737 Family B757 B717 Regionals Other NBV of Owned Aircraft 55 34 7 2 1 1 NBV of Owned Aircraft pg. 15 Europe South America North America Asia Middle East Africa East 0.47 0.14 0.08 0.13 0.15 0.03 NBV of Aircraft on Lease Aircraft Investment by Aircraft Type Aircraft
Slide 16: GATX's Aircraft Investments vs. Aircraft Stored Worldwide
GATX's Aircraft Investments vs. Aircraft Stored Worldwide as of 9/30/05 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 A3
Slide 17: Utilization as of 9/30/05
Utilization as of 9/30/05 100% Aircraft on Lease
Slide 18: GATX Air Key Initiatives
GATX Air Key Initiatives Maintain high fleet utilization Drive lease rates higher where possible Expand aircraft management platform and partnered assets partnered assets partnered assets partnered assets partnered assets pg. 18
Slide 19: Owned Portfolio
Owned Portfolio Marine Rail Aircraft Mining, Construction & Oilfield Equipment Production Equipment Venture Other Owned Portfolio 38 5 9 8 4 6 30 NBV = $429 mm as of 9/30/05 pg. 20
Slide 20: Owned Portfolio Key Initiatives
Owned Portfolio Key Initiatives Shipping and Marine Investments in new builds Opportunistic investments or financings of marine-related assets Investment in Select Asset Classes Industrial equipment Leverage GATX knowledge and expertise pg. 21
Slide 21: Managed Portfolios
Managed Portfolios Marine Aircraft Power Rail Other Managed Portfolio 4 30 37 28 1 NBV = $560 mm as of 9/30/05 Portfolios managed on behalf of third-party owners Leverage asset/industry experience Natural extension of customer/partner relationship No GATX investment Remarketing upside potential pg.
Slide 22: Financial Highlights
Financial Highlights Solid cash flow generation Disciplined pursuit of select investment opportunities Maintain conservative balance sheet pg. 23
Slide 23: Financial Highlights
Financial Highlights 2000 2001 2002 2003 2004 Portfolio Investments and Capital Expenditures 1499 1360 1018 629 760 2000 2001 2002 2003 2004 Cash from Continuing Operations 209 99 209 267 302 Portfolio Proceeds 472 727 689 541 356 pg. 24 Portfolio Investments and Capital Expenditures Cash from Conti
Slide 24: Financial Highlights: Leverage and Credit Spreads
2000 2001 2002 2003 2004 1Q'05 2Q'05 3Q'05 Adjusted Recourse Debt/Equity + Loss Reserves 5.3 4.3 5 4.4 3.5 3.4 3.3 3.1 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/
Slide 25: Portfolio Quality
Portfolio Quality 2000 2001 2002 2003 2004 YTD 2005 Net Charge-offs & Impairments 41.6 187.8 94.4 67.2 13.4 8 pg. 26 $ Millions Net Charge Offs and Asset Impairments
Slide 26: 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 Finance through disciplined investment in targeted assets pg. 27
Slide 27: Summary
Summary Tested in recent years, but strengths of company were proven Excellent asset base Strong market position Deep asset expertise Better positioned for more stable growth pg. 28
Slide 28: Appendix
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Slide 29: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation Non-GAAP Disclosure Reconciliation