Slide 1: GATX Corporation October 2003
GATX Corporation October 2003
Slide 2: Forward-Looking Statements
GAIX NYSE: GMT FORWARI LOOKING STATEMENTS Certain statements within this document may constitute forward-looking statements made pursuant to the safe harbar provision of the Private Securities Litigation Reform Act of 1996. believe, ""estimate,""exnect,” roject" and similar expressions. This informa
Slide 3: Overview
Overview Specialized finance and leasing company with leadership positions in core markets Quality pool of long-lived assets Significant cash flow generation and substantial liquidity position Generating significant savings from cost reduction initiatives Positioned to leverage upside as markets con
Slide 4: Asset Mix
Asset Mix Rail Air Information Technology Specialty Venture Other 47 28 8 11 3 3 Largest lessor of tank cars in North America; 105 year history One of the largest commercial aircraft operating lessors worldwide; 35 year history One of the largest independent IT lessors; 20 year history $7.3 billion
Slide 5: Business Update
Encouraging market indicators Fleet utilization improving but lease rate pressure continues Ordered 7,500 new cars under five-year program Expanding European presence Rail Air High fleet utilization Limited exposure to bankrupt U.S. air carriers Pricing pressure and volatility continue Technology Ot
Slide 6: Rail
Rail North America's largest tank car lessor, leading locomotive lessor Own or have interest in 166,000 railcars worldwide Expanding international presence with over 35,000 cars Leading service provider to shippers in chemical, petroleum, and food industries Over 1,000 customers Strong credit profil
Slide 7: GATX Railcar Fleet and Tankcar Market Share
Tankcars Covered Hoppers Boxcars/Gondolas Other 9/30/2002 59 24 7 10 Rail GATX Railcar Fleet Union Tank Car GATX GE Rail Other 12/1/1999 34 35 18 13 U.S. Tankcar Market Share Lease Market Other 13% GE Railcar 18% North American Owned Fleet 107,000 Railcars as of 12/31/02 Umler estimate as of 12/31/0
Slide 8: Rail market indicators: tank car backlog and chemical shipments
Rail 1994 1995 1996 1997 1998 1999 2000 2001 2002 YTD 1107 Tank Car Backlog 1583 1622 1565 1622 1602 1543 1521 1444 1479 1119 1998 1999 2000 2001 2002 2003 63453 55680 30825 19991 6443 24055 63120 43456 28176 14452 9281 33383 69858 36811 26218 11888 14491 31858 Tank Car Backlog 66390 33142 22648 808
Slide 9: Air
Air * Full air portfolio overview presentation in appendix One of the largest commercial aircraft operating lessors/managers worldwide Portfolio well suited for current market conditions Focus on narrowbody aircraft Weighted average age of aircraft portfolio is 5 years Utilization over 98% Geographi
Slide 10: Industry Update and Forecast
Surplus Aircraft = world fleet versus world requirements based on traffic forecasts and capacity Industry Update and Forecast The present oversupply forecast to continue through 2003, declining through 2005. Source: The Airline Monitor # of Surplus Aircraft Surplus as % of World Fleet Number of Surp
Slide 11: Air Focus and Outlook
Source: International Civil Aviation Organization Revenue Passenger Miles (RPM's) Billions 2003E Air Focus Near-term Outlook GATX portfolio is well positioned with experienced management team Maintain high utilization Address remarketing calendar Long-term Outlook History indicates gradual recovery
Slide 12: Technology
Technology One of the largest independent Information Technology equipment lessors with 20 plus years of experience Focused on financeable credits with high volume IT needs Portfolio characterized by diversification across customers and equipment types Service-intensive business combining IT equipme
Slide 13: GATX Equipment Portfolio and Customer Profile
Data Processing Business Services Banking/Finance Wholesale/Retail Manufacturing Other TECH 24 14 20 13 13 16 PC/Client Server Mid-Range Communications Other Mainframe TECH 29 29 9 30 3 GATX Equipment Portfolio A broad range of IT equipment Leading Manufacturers such as: IBM HP Dell Portfolio Mix as
Slide 14: Technology Near-term and Long-term Outlook
Technology Near-term Outlook Discretionary technology spending down Focus on volume generation Pursue portfolio acquisitions aggressively Improve operating efficiency Strengthen customer service and relations Long-term Outlook IT solutions drive productivity and profit Economic recovery expected to
Slide 15: Financial Highlights
Financial Highlights Expect income in range of $1.30 per share for 2003 Continued strong cash flow and liquidity despite challenging economic conditions Sound financial ratios Portfolio quality stabilized
Slide 16: Financial Highlights: Investment Volume and Cash Flow
Financial Highlights 2000 2001 2002 YTD 887 Investment Volume 1897 1791 1272 613 2000 2001 2002 '02 '03 Net cash provided by continuing operations 402 362 440 273 343 Portfolio proceeds 627 1026 883 673 563 Investment Volume Cash Flow from Operations and Portfolio Proceeds* (Full cash flow statement
Slide 17: Financial Summary
(millions) 2003YTD 2002 2001 2000 Revenues $ 979 $1,274 $1,488 $1,311 Short-term Debt (net of unrestricted cash) (120) (204) 66 367 Recourse Debt * 4,190 4,493 3,956 4,151 Nonrecourse Debt * 783 948 1,043 815 Capital Lease Obligations 124 144 163 64 Total Debt 4,977 5,381 5,228 5,497 Total Recourse
Slide 18: Credit Statistics
Credit Statistics 2000 2001 2002 2003YTD Allowance for losses as a % of reservable assets 0.063 0.061 0.066 0.071 Non-performing investments as a % of Financial Services investments 0.03 0.033 0.033 0.055 Net charge-offs and asset impairments as a % of average total investments 0.007 0.027 0.013 0.0
Slide 19: Summary
Summary Leverage leadership positions and capitalize on growth opportunities Enhance and expand franchise platforms Maintain focus on sound balance sheet management Continue to enhance operating efficiency Position company to optimize performance during recovery
Slide 20: Appendix
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Slide 22: Air Update October, 2003
NYSE: GMT Air Update October, 2003
Slide 23: Business: Owned and Managed
Business: Owned and Managed Owned Aircraft (168) Owned aircraft are a mix of type/class Majority of aircraft held in partnerships High utilization 48 aircraft are 100% owned by GATX 34 aircraft are owned in Pembroke Group Managed Aircraft (84) Management Role: Administer Portfolio Cash Management Ac
Slide 24: Aircraft Investment by Aircraft Type
A320 Family B737 Family B757 MD-80/DC-9 B717 Regionals Other East 52 33 8 2 2 1 2 NBV of Owned Aircraft as of 9/30/03 Aircraft Investment by Aircraft Type All chart data net of non-recourse debt Aircraft exposure is primarily in modern narrowbody fleet 100% Stage III compliant Average Age = 8 years
Slide 25: Age Distribution (Existing Owned Aircraft)
Age Distribution (Existing Owned Aircraft) Excludes Pembroke Group as of 9/30/03 Less than 2-5 6-10 11-15 16-20 >20 2 Years Years Years Years Years Years Total Number of Aircraft 19 37 16 33 26 3 134 Net Book Value ($ millions) 772.8 $ 569.8 $ 171.1 $ 276.9 $ 91.9 $ 15.7 $ 1,898.2 $ as % of Total NB
Slide 26: GATX's Aircraft Investments vs. Aircraft Stored Worldwide
Source: Airclaims CASE Database & GATX GATX's Aircraft Investments vs. Aircraft Stored Worldwide as of 9/30/03
Slide 27: Regional Exposure
Regional Exposure NBV of Aircraft on Lease as of 9/30/03 Aircraft by Region Europe South America North America Asia Middle East Africa East 49 17 10 9 14 1 Geographically diverse Diversified among air carriers (both scheduled and charter) Leases to 61 airlines worldwide
Slide 28: Top Five U.S. Aircraft Customers
as of 9/30/03 Top Five U.S. Aircraft Customers Airline NBV (millions) as % of Total NBV Number of Aircraft Earliest Schedule Renewal Date Southwest 52.28 2.7% 5 2004 ATA 36.98 1.9% 1 2008 American 22.74 1.5% 6 2011 Express.Net 13.56 0.7% 1 2004 Continental 12.75 0.7% 14 2005 Others 53.90 2.8% 16 Tot
Slide 29: Utilization of Owned Aircraft
NBV of Owned Aircraft as of 9/30/03 Excludes Pembroke Group Utilization Aircraft on Ground (AOG) - LOI 1 x A320-200 Aircraft on Ground (AOG) - Available 1 x A310-300 1 x A321-200 1 x MD-83 LOI: Aircraft under letter of intent with customer, scheduled for delivery AOG - LOI AOG - Available On Lease 0
Slide 30: Remaining Renewal Schedule
Excludes Pembroke Group Remaining Renewal Schedule * LOI Signed for 2 x 737-800. GATX began 2003 with 8 aircraft on the '03 renewal calendar Aircraft Type 2003 2004 2005 2006 737-200 2 737-300 3 2 737-800 4* 3 3 747-300 1 757-200 2 A300-B4-200F 1 A319-100 1 A320-200 8 4 15 A321-100 3 A321-200 1 1 ER
Slide 31: Order Book
Order Book GATX and Airbus have agreed that two previously scheduled A320 2004 order positions will now deliver in 2006. The schedule change does not result in any increase or decrease in the number of aircraft on order. 2003 2004 2005 2006 Total Airbus A320 Family 5 3 0 2 10 Lease/Delivered 5 1 0 0
Slide 32: For further information on GATX Corporation
NYSE: GMT For further information on GATX Corporation: Robert C. Lyons Rhonda S. Johnson Vice President, Investor Relations Director Phone: 312-621-6633 415-955-3211 or 312-621-6262 Fax: 312-621-6648 415-955-3449 or 312-621-6645 E-Mail: rclyons@gatx.com rjohnson@gatx.com