Wabash National Corporation · NYSE:WNC

Wabash National — Global Hunter Securities LLC Industrial Day (September 2013)

40 slides from Wabash National's conference presentation, Sep 5, 2013

  1. Slide 1: Wabash National Corporation Investor Update

    WABASH NATIONAL CORPORATION Investor Update September 2013 Dick Giromini, President & CEO Jeff Taylor, VP – Acting CFO & Treasurer

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT This presentation contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward- looking statements, including without limit, those regarding shipment outlook, Operating EB

  3. Slide 3: Company Background

    COMPANY BACKGROUND • 2012 Revenue: $1.5B • 5,700 Associates (full time & contract) • 12 Manufacturing Locations in 3 Countries • 18 Company-Owned Retail Locations Acquired assets Acquired of leading steel flatbed producer Acquired leading liquid transport Founded as Achieved equipment producer a sta

  4. Slide 4: Wabash Segments

    WABASH SEGMENTS Wabash National Corporation Commercial Trailer Products Diversified Products Retail 2012 Sales: $994M 2012 Sales: $311M 2012 Sales: $157M • Dry & Refrigerated Vans • Walker Group • 18 Retail Locations in U.S. • Platform Trailers • Wabash Composites • New & Used Trailer Sales • Fleet

  5. Slide 5: Geographic Footprint

    GEOGRAPHIC FOOTPRINT Corporate HQ Manufacturing Locations Company-Owned Retail Locations Dealers / Service Centers 5

  6. Slide 6: Commercial Trailer Products: Segment Profile

    COMMERCIAL TRAILER PRODUCTS: SEGMENT PROFILE Key Statistics  Comprehensive trailer products portfolio  2012 New Trailer Shipments: 43,600  Core products: dry vans, refrigerated vans, platform trailers  Brands: Wabash National, Transcraft, Benson Recent Financial Performance - CTP Examples of Key

  7. Slide 7: Commercial Trailer Products

    COMMERCIAL TRAILER PRODUCTS Dry Freight Vans: 82% / Total Refrigerated Vans: 11% / Total Platform Trailers: 5% / Total Specialty Equipment: 2% / Total Note: Percentages based on WNC shipments 2010-2012 7

  8. Slide 8: Industry Forecasts

    INDUSTRY FORECASTS General Market Overview  Strong demand above replacement levels forecast for next 5 years in all CTP segments  CSA, CARB & HOS to drive demand ACT Forecast by Segment 2012 2013 2014 2015 2016 2017 Dry Van 129,543 136,000 145,000 145,000 128,000 140,000 Refrigerated 34,094 37,200

  9. Slide 9: 2013 Outlook: Industry Forecast

    2013 OUTLOOK: INDUSTRY FORECAST Short-/Mid-Term Demand Drivers  HOS Rules (Hours of Service)  7-day maximum driving time reduced from 82 to 70 hours  Some customers expect a “5% - 12%” impact on productivity  Not currently factored into current industry forecast models  Underlying Forces Source

  10. Slide 10: Commercial Trailer Products: Freight Trends

    COMMERCIAL TRAILER PRODUCTS Overall Freight Trends • Total tonnage will increase from 13.7B tons in 2012 to 15.7B tons in 2018 and 16.5B tons in 2024 • Total freight revenue will increase from $796B in 2012 to $1,066B in 2018 and $1,302B in 2024 Trucking Freight Trends • Truck mode share of total fr

  11. Slide 11: Commercial Trailer Products: Long History of Innovation

    COMMERCIAL TRAILER PRODUCTS: LONG HISTORY OF INNOVATION 1985 1987 1996 2004 2011 Sheet & Post Trailer Alum. Plate Trailer DuraPlate® Trailer DuraPlate® HD DuraPlate® XD-35 • Commodity • WNC leading • Durable • High • The industry’s • Versatile industry • Longest useful performance only 35,000 lb. •

  12. Slide 12: Commercial Trailer Products: Customers

    COMMERCIAL TRAILER PRODUCTS: CUSTOMERS Wabash National Customers • 64% of Top 50 For-Hire Fleets • 54% of Top 100 For-Hire Fleets Source: 2011 Transport Topics 100 Preferred by the industry’s leading carriers 12

  13. Slide 13: Commercial Trailer Products Highlights

    COMMERCIAL TRAILER PRODUCTS HIGHLIGHTS  Industry leader in van and platform trailer manufacturing  Best-in-class, technologically innovative products  Leading brands and long-standing customer relationships  Trucking recovery and aging fleet equipment fuels trailer demand  Mature practitioner o

  14. Slide 14: Diversified Products Profile

    DIVERSIFIED PRODUCTS PROFILE Key Statistics  Wabash Composites, Wabash Wood Products, and Walker Group  Diverse portfolio of products and services  Broad customer, geographic, and end market diversification  Higher growth and higher margin businesses Recent Financial Performance Key Brands Reven

  15. Slide 15: Walker Group Profile

    WALKER GROUP PROFILE Key Statistics  #1 manufacturer of Liquid Tank Trailers (3,000+ trailers shipped in 2012) and leading manufacturer of Airplane Refuelers & Engineered Products  High Gross Margin (>20%) and Stable, Solid Cash Generation  Key Brands: Walker, Brenner, Bulk, Beall, Garsite, Extra

  16. Slide 16: Walker Group: Industry Leadership

    WALKER GROUP: INDUSTRY LEADERSHIP Transportation Products Leader Position Products Est. Share Brands ALL liquid-transportation systems in North #1 33% America Stainless-steel liquid-transportation systems #1 63% in North America 80% of Total Stainless-steel liquid-tank trailers for the #1 64% Revenu

  17. Slide 17: Walker Group: Diversification

    WALKER GROUP: DIVERSIFICATION End-Markets Geographies Products and Services Africa, 0% Environmental, Asia, 5% Parts and Defense, 4% 2% Latin America, Australia, 0% Services 2% Revenue, 13% Pharmaceutical, 9% Chemical, 31% Mexico & Canada, 2% Energy, 12% Europe, 3% Aviation, 15% Manufacturing Dairy,

  18. Slide 18: Walker Group: New Innovation – Transportation Products

    WALKER GROUP: NEW INNOVATION – TRANSPORTATION PRODUCTS • Expanding the use of Lean Duplex tank trailers to include the most common corrosives, such as sulphuric acid. Lean Duplex  First to Market with DOT Approved Lean Duplex  Improved Yield Strength and Reduced Trailer Weight  Alternative Materi

  19. Slide 19: Walker Group: Growth - M&A Beall

    WALKER GROUP: GROWTH - M&A BEALL Food High Trailer Non- Code Code Code Special Code Dry Grade Pressure Type Code 406 407 407 Permit 412 Bulk Sanitary 338/331 Carbon Stainless Stainless Carbon Material Aluminum Aluminum FRP Various Aluminum Steel Steel Steel Steel Flours, Non- Food Chemicals Chemical

  20. Slide 20: Wabash Composites Profile

    WABASH COMPOSITES PROFILE Key Statistics  Growing Product Portfolio  Key Products: composite panels, aerodynamic trailer skirts, portable storage containers, truck bodies walls  Brands: DuraPlate, AeroSkirt, Wabash National Diversified Products Proforma Revenue Key Customers - Examples Wabash Com

  21. Slide 21: Wabash Composites Product Platforms - Strategic Growth Initiatives

    WABASH COMPOSITES PRODUCT PLATFORMS - STRATEGIC GROWTH INITIATIVES COMPOSITE PANELS AERODYNAMICS New New Aero Composite Devices Technologies MOBILE SOLUTIONS CUSTOM SOLUTIONS Shelters, Innovative Offices, & Solutions Trailers Constant Process of Developing New Products and Markets 21

  22. Slide 22: Wabash Composites - Industry Dynamics

    WABASH COMPOSITES - INDUSTRY DYNAMICS Demand Drivers Truck Body Market Segments 60,000 • Forecasted growth in Truck Body market 50,000 drives DuraPlate® panel sales growth. 40,000 • Housing Starts support potential moving 30,000 and storage growth and need for portable 20,000 storage containers. 10,

  23. Slide 23: Diversified Products Highlights

    DIVERSIFIED PRODUCTS HIGHLIGHTS  Industry leader in tank trailer and engineered products with the broadest portfolio  Leader in composite panel technology, solutions-driven product development strategy  Diversified platform serving a variety of attractive end markets  Low capital model leveragin

  24. Slide 24: Retail: Segment Profile

    RETAIL: SEGMENT PROFILE Key Statistics 2012  Dealership model, selling new and used trailers, aftermarket parts, and repair services.  2012 New Trailer Shipments: 2,800  2012 Used Trailer Shipments: 1,600  Brands: Tank Services Recent Financial Performance 2012 Revenue Breakout Other, 2% Revenue

  25. Slide 25: Retail: Wabash National Trailer Centers + Brenner Tank Services

    RETAIL: WABASH NATIONAL TRAILER CENTERS + BRENNER TANK SERVICES Strategic Footprint Providing Service Nationally 25

  26. Slide 26: Retail: New Markets – Tank Parts & Service

    RETAIL: NEW MARKETS – TANK PARTS & SERVICE Key Drivers  Leverage Combined Footprint to Capture Higher-Margin Tank Parts & Service  Low CapEx Investment Required for Wabash National Trailer Centers  Support Walker Brand Products Nationally, Including Recently Added Beall Location Status  3 Wabash

  27. Slide 27: Retail Segment Highlights

    RETAIL SEGMENT HIGHLIGHTS  Strategic footprint providing national support  Platform which supports the broadest product range in the industry  Integrated with OEM to deliver best practices and innovation in the aftermarket  Value added reseller of new and used trailers & parts and service  Expa

  28. Slide 28: Financial Overview

    WABASH NATIONAL CORPORATION Financial Overview September 2013

  29. Slide 29: Financial Profile

    FINANCIAL PROFILE Revenues  Structural Improvements ($ millions) Undertaken During 1,700 1,400 1,187 1,462 Downturn: Facility and 1,100 737 Headcount Rationalization 800 640 500 338 200  Economic Recovery: Above 2009 2010 2011 2012 YTD Q2 2013 Replacement Level Demand Operating EBITDA  Organic Gr

  30. Slide 30: Diversification Efforts Gaining Traction…New Markets

    DIVERSIFICATION EFFORTS GAINING TRACTION…NEW MARKETS 2007 Revenue $1.1B 2012 Revenue $1.5B Retail Retail 14% Diversified 11%  Diversified Products Segment Products is Gaining Critical Mass 21% 68% 86% Manufacturing Commercial  Commercial Trailer Products Trailer Products & Diversified Products Are

  31. Slide 31: Capital Structure and Liquidity

    Capital Structure and Liquidity Cost Effective Debt Structure Debt & Capital Lease Maturities 300 $259  $150 Million ABL Revolving Facility – Sr. Secured, matures 250 5/2017, floating LIBOR pricing 1.75%-2.25% ($ millions) 200  $150 Million Convertible Notes – Sr. Unsecured, matures $154 $153 Loan

  32. Slide 32: Profitability Drivers

    PROFITABILITY DRIVERS Wabash National Corporation Commercial Trailer Products Diversified Products Retail • Customer focused total cost of • New product development • Leverage expanded footprint ownership through best in leveraging intellectual to cross sell and capture class product offerings capab

  33. Slide 33: Long-Term Strategic Objectives

    LONG-TERM STRATEGIC OBJECTIVES Expectations 2011 2012 Long-term Revenue $1.2B $1.5B >$2.0B Diversified Products Revenue(1) $107M $356M > $600M Gross Margins 5.6% 11.0% > 13% EBITDA Margins 3.3% 8.1% >10% Net Leverage 1.3x 3.1x < 2.0x Notes: (1) Diversified Products segment revenues prior to eliminat

  34. Slide 34: Investment Highlights

    INVESTMENT HIGHLIGHTS  Diversified manufacturer and industry leader in van and tank trailer production  Leading brands and longstanding relationships with blue-chip customer base  Best-in-class, technologically innovative products  Trucking recovery and aging fleet equipment fuels trailer demand

  35. Slide 35: Appendix

    WABASH NATIONAL CORPORATION Appendix

  36. Slide 36: Consolidated Income Statement

    CONSOLIDATED INCOME STATEMENT ($ in thousands, except per share amounts) 2009 2010 2011 2012 YTD Q2 2013 Net sales $ 337,840 $ 640,372 $ 1,187,244 $ 1,461,854 $ 737,355 Cost of sales 360,750 612,289 1,120,524 1,298,031 636,316 Gross profit $ (22,910) $ 28,083 $ 66,720 $ 163,823 $ 101,039 % of sales

  37. Slide 37: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET ($ in thousands) 2009 2010 2011 2012 6/30/2013 ASSETS Current assets Cash $ 1,108 $ 21,200 $ 19,976 $ 81,449 $ 45,415 Accounts receivable 17,081 37,853 52,219 96,590 124,600 Inventories 51,801 110,850 189,533 189,487 243,688 Deferred income taxes - - - 42,330 41,840 Prepai

  38. Slide 38: Consolidated Cash Flows

    CONSOLIDATED CASH FLOWS ($ in thousands) 2009 2010 2011 2012 YTD Q2 2013 Cash flows from operating activities Net (loss) income $ (101,765) $ (141,760) $ 15,042 $ 105,631 $ 19,870 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities Depreciation 16,630 13

  39. Slide 39: Reconciliation of Non-GAAP Measures

    RECONCILIATION OF NON-GAAP MEASURES ($ in millions) 2009 2010 2011 2012 YTD Q2 2013 Net (loss) income $ (101.8) $ (141.8) $ 15.0 $ 105.6 $ 19.9 Income tax (benefit) expense (3.0) (0.1) 0.2 (57.1) 13.2 Increase in fair value of warrant 33.4 121.6 - - - Interest expense 4.4 4.1 4.1 21.7 14.1 Depreciat

  40. Slide 40: Reconciliation of Non-GAAP Measures

    RECONCILIATION OF NON-GAAP MEASURES ($ in millions) Trailing Twelve Months Operating EBITDA For Quarter Ending 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net (loss) income $ (147.7) $ (162.4) $ (224.5) $ (101.8) $ (212.5) $ (200.2) $ (135.7) $ (141.8) $ 0.6 $ 9.5

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