Slide 1: Quarterly Investor Presentation
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. Quarterly Investor Presentation March 11, 2022 – for the period ended December 31, 2021 Exhibit 99.1
Slide 2: Forward Looking Statements and Other References
DELIVERING GOODS for THE GOOD of ALL /// 2 Forward Looking Statements and Other References Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include sta
Slide 3: Investor Presentation Contents
DELIVERING GOODS for THE GOOD of ALL /// Investor Presentation – March 2022 3 I. Trinity Industries, Inc. Overview . . . . . . . . . . . . . . . . . . Page 4 II. Trinity’s Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . Page 9 III. Railcar Market Overview . . . . . . . . . . . . .
Slide 4: Trinity Industries, Inc. Overview
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. OVERVIEW (NYSE: TRN)
Slide 5: Trinity's Value Proposition
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Value Proposition 5
Slide 6: Trinity Industries, Inc. Overview
DELIVERING GOODS for THE GOOD of ALL /// • Trinity Industries, Inc. owns market leading businesses that provide railcar products and services in North America – Top 5 Leasing company ~ 106,970 railcars under ownership ~ 29,130 additional investor-owned railcars – Leading manufacturer with 30% of ind
Slide 7: A Differentiated Value Proposition for Our Customers
DELIVERING GOODS for THE GOOD of ALL /// A Differentiated Value Proposition for Our Customers • Lease Portfolio • Fleet Management • Equipment Finance Solutions Leasing • Rail Product Portfolio • Aftermarket Parts Manufacturing • Maintenance • Modifications • Repair • Mobile Units Maintenance • Logi
Slide 8: Trinity's Business Segments
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Business Segments * See appendix for reconciliation of non-GAAP measures $1.5B Total Revenues Trinity Industries Inc. (2021) $245M Adjusted Operating Profit* $42M Adjusted Income from Cont. Ops.* $513M Adjusted EBITDA* $735M Segment Revenue $351M Se
Slide 9: Trinity's Value Proposition
DELIVERING GOODS for THE GOOD of ALL TRINITY’S VALUE PROPOSITION
Slide 10: Trinity's Platform is Built to Deliver Shareholder Value
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Platform is Built to Deliver Shareholder Value 2021 Revenues $1.5B 2021 Cash Flow, Continuing Ops $616M 2021 OP Margin, Adjusted*(1) 16% 2021 Shareholder Returns $895M * See appendix for footnote and reconciliation of non-GAAP measures 10
Slide 11: Leasing Operations: Stable Financial Performance Through the Cycle
DELIVERING GOODS for THE GOOD of ALL /// Leasing Operations Revenue OP Margin 2017 2018 2019 2020 2021 $500 $600 $700 $800 —% 10% 20% 30% 40% 50% Stable Financial Performance Through the Cycle Fleet Utilization and Rates are Improving Leasing Operations Revenue and Operating Profit Margin(1) (in $mm
Slide 12: Rail Products: Optimization of Production Operations Underway
DELIVERING GOODS for THE GOOD of ALL /// Rail Products Revenue Maintenance Services Revenue OP Margin 2017 2018 2019 2020 2021 $— $1,000 $2,000 $3,000 —% 4% 8% 12% Leading manufacturer of railcars in North America ◦ Delivered 8,875 railcars representing 30% of industry shipments during 2021 ◦ Backlo
Slide 13: Railcars Are Attractive Long-term Investments
DELIVERING GOODS for THE GOOD of ALL /// Railcars Are Attractive Long-term Investments • Long-term leases • High renewal success rates • Low credit defaults and bad debt expense • Active secondary market Stable and Predictable Cash Flows • 35-50 year useful life • Positive yield relationship to infl
Slide 14: Diversified Portfolio of Railcar Equipment
DELIVERING GOODS for THE GOOD of ALL /// Diversified Portfolio of Railcar Equipment ~ 900 Different Commodities Car Type Agriculture Construction & Metals Consumer Products Energy Refined Products & Chemicals Total (Units)* Fr ei g h t C ar Open Hopper/Gondolas Aggregates, Steel and Metals Coal 11%
Slide 15: Commitment to Premier Performance and Sustainability
DELIVERING GOODS for THE GOOD of ALL /// Commitment to Premier Performance and Sustainability 15 Environmental Commitment Social Responsibility Governance Excellence Risk Management Operating our business in a way that minimizes impact on natural resources and the environment • Established Green Fin
Slide 16: Railcar Market Overview
DELIVERING GOODS for THE GOOD of ALL RAILCAR MARKET OVERVIEW
Slide 17: Integral Part of the North American Supply Chain
DELIVERING GOODS for THE GOOD of ALL /// Integral Part of the North American Supply Chain • 1.7 million railcars in North America(1) • 1.4 trillion ton miles moved by rail in 2021(2) • 3,500+ commodities moved by rail(3) • Highly correlated to U.S. GDP U.S. Freight Ton Miles by Mode of Transportatio
Slide 18: Delivering Essential Goods to the Global Marketplace
DELIVERING GOODS for THE GOOD of ALL /// Delivering Essential Goods to the Global Marketplace See appendix for source information • Coal • Biofuels • Frac Sand • U.S. Crude • Canadian Crude 34% of North American railcar loadings ~230 distinct commodities Energy • Natural Gas Liquids • Refined Produc
Slide 19: Capitalizing on Structural Change in the Rail Market
DELIVERING GOODS for THE GOOD of ALL /// Capitalizing on Structural Change in the Rail Market The TrinityRail platform has grown at a 12% CAGR since 2002 Ownership Profile of Recently Built Railcars Has Increasingly Shifted To Leasing Companies Railcar Lessor Ownership Profile Presents Consolidation
Slide 20: Financial Positioning and Strategic Objectives
DELIVERING GOODS for THE GOOD of ALL FINANCIAL POSITIONING AND STRATEGIC OBJECTIVES
Slide 21: Healthy Balance Sheet Strategically Positioned for Value Creation
DELIVERING GOODS for THE GOOD of ALL /// Healthy Balance Sheet Strategically Positioned for Opportunistic Deployment and Value Creation 21 Unencumbered Railcars $876M • Pledge to warehouse • Additional assets can be sold or financed • LTV of 62.3% for the wholly-owned lease portfolio as of Q4-21(2)
Slide 22: Executing on Strategic Initiatives to Improve Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Executing on Strategic Initiatives to Improve Pre-Tax ROE 22 New Products & Services Initiatives Continue focus on lower breakeven points Enhance value of outsourced fabrication activities Manufacturing Cost Improvement Announced a $375M sale of our highway p
Slide 23: Revenue Opportunity for Services Expansion in Railcar Industry
DELIVERING GOODS for THE GOOD of ALL /// ~ $20-25B TAM Revenue Opportunity for Services Expansion in Railcar Industry Positioned for Further Success in the Marketplace • Superior customer experience through “Anytime” access • Fleet Management Solutions • RailPulseTM consortium Digital Platforms • Co
Slide 24: Operating Model and Company Purpose
DELIVERING GOODS for THE GOOD of ALL /// Operating Model and Company Purpose 24
Slide 25: Appendix
DELIVERING GOODS for THE GOOD of ALL APPENDIX
Slide 26: Reconciliation: Adjusted Operating Results
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results 26 Year Ended December 31, 2021 GAAP Gains on dispositions of property – other (1)(2) Restructuring activities, net (1) Loss on extinguishment of debt – Controlling Interest (1)(3) Loss on extinguishment of debt – No
Slide 27: Reconciliation: Adjusted Operating Results (continued)
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results (continued) (1) The effective tax rate for impairment of long-lived assets, pension plan settlement, restructuring activities, and the loss on extinguishment of debt is before consideration of the CARES Act. (2) Excl
Slide 28: Reconciliation: Adjusted Operating Results (continued)
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results (continued) We have supplemented the presentation of our reported GAAP operating profit, income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations,
Slide 29: Reconciliation: EBITDA and Adjusted EBITDA
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: EBITDA and Adjusted EBITDA “EBITDA” is defined as income from continuing operations plus interest expense, income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus gains on dispositions of other proper
Slide 30: Reconciliation: Total Company Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Total Company Pre-Tax ROE 30 December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Numerator: Income (loss) from continuing operations $ 39.3 $ (250.5) Provision (benefit) for income taxes 15.9 (274.1) Income (loss) from contin
Slide 31: Slide Footnotes and Sources
DELIVERING GOODS for THE GOOD of ALL /// SLIDE 6 – Trinity Industries, Inc. Overview 1. Current dividend yield represents the Company’s most recent quarterly dividend, annualized, and the stock price (NYSE: TRN) as of December 31, 2021. 2. Intersegment revenues are eliminated; a prospective change i
Slide 32: Contact Information
DELIVERING GOODS for THE GOOD of ALL /// Contact Information 32 Contact Information: Leigh Anne Mann, Vice President of Investor Relations 214-631-4420 TrinityInvestorRelations@trin.net Investor Website: www.trin.net/investor-relations