Trinity Industries, Inc. · NYSE:TRN

Trinity Industries — Investor Presentation (November 2013)

22 slides from Trinity Industries's investor presentation, Nov 1, 2013

  1. Slide 1: Trinity Industries, Inc. November 2013

    Trinity Industries, Inc. November 2013 Exhibit 99.1

  2. Slide 2: Forward Looking Statements

    2 Forward Looking Statements This presentation contains “forward looking statements” as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These

  3. Slide 3: Agenda

    3 Agenda I. Overview II. Key Investment Considerations III. Strategy and Vision IV. Financial Highlights V. Appendix

  4. Slide 4: I. Trinity Industries, Inc. Overview

    $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2007 2008 2009 2010 2011 2012 LTM 09/13 Rail Group Leasing Barge CPG EEG All Other EPS, Total Company-diluted I. Trinity Industries, Inc. Overview 4  Trinity Industries, Inc. is

  5. Slide 5: II. Key Investment Considerations

    II. Key Investment Considerations 5 Leading Market Positions Diversified Portfolio of Businesses Flexible and Cost-Effective Manufacturing Seasoned Performers Enrichment Value Focused

  6. Slide 6: Leading Market Positions

    Leading Market Positions 6 Rail Group  Leading manufacturer of railcars in North America  Leading manufacturer of railcar axles in North America  Leading manufacturer of railcar coupling devices in North America Railcar Leasing and Management Services Group  Leading provider of railcar leasing a

  7. Slide 7: Diversified Portfolio of Businesses

    Diversified Portfolio of Businesses 7 PRESENT (LTM 09/13) MEASUREABLE PROGRESS OVER LAST 10 YEARS Total Revenues = $4.1 B Our diversified portfolio of businesses generated a higher level of EPS on a similar level of deliveries during the last cyclical rail industry downturn (1) Operating Profit Excl

  8. Slide 8: Flexible and Cost-Effective Manufacturing

    Flexible and Cost-Effective Manufacturing 8 Flexibility Cost-Effective Trinity's manufacturing flexibility across product and business segments enhances our ability to opportunistically respond to changes in market demand Trinity’s manufacturing scale, vertical integration, and presence in the South

  9. Slide 9: Enrichment Value Focused

    Enrichment Value Focused 9 E x te rn a l R e p o rti n g G ro u p s O p e ra tio n a l Foc u s A re a s Rail Leasing Construction Energy Inland Barge Customer Sharing Internal Component Sourcing Shared Best Manufacturing Practices Facility Optimization Centralized Cost Savings Trinity focuses on col

  10. Slide 10: Seasoned Performer Across Various Market Conditions

    10 Seasoned Performer Across Various Market Conditions  Trinity is uniquely positioned for growth across various economic conditions  Seasoned management team knows how to assess the market, proactively plan for cycles and address changes in economic conditions  Manufacturing flexibility is a cor

  11. Slide 11: III. Strategy and Vision: Operational

    III. Strategy and Vision: Operational 11 Strategically Grow the Lease Fleet Maximize Manufacturing Efficiency Selectively Build our Backlogs Diversify Through Organic Growth Acquire Complementary Product Portfolios Be a premier, diversified industrial company that generates superior earnings and ret

  12. Slide 12: Strategy and Vision: Financial

    Liquidity (at 09/30/13): ~ $1,174 mm Strategy and Vision: Financial 12 Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Corporate Debt(1) - Convertible Subordinate

  13. Slide 13: IV. Financial Highlights: Trinity's Earnings Summary

    $3.45 $1.33 $0.85 $1.77 $3.19 $4.21 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 2008 2009 2010 2011 2012 LTM 09/13 $667 $443 $470 $612 $774 $917 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2008 2009 2010 2011 2012 LTM 09/13 13 IV. Financial Highlights Trinity’s Earnings Summa

  14. Slide 14: Guidance and Outlook (As of October 31, 2013)

    Guidance and Outlook (As of October 31, 2013) 14 Rail Group Revenues ~ $2.8 – 2.9 billion in FY 2013 OP Margin ~ 16.75 – 17.25% in FY 2013 Shipments ~ 24,000 – 24,500 in FY 2013 Leasing Group Revenues from Operations ~ $580 – 595mm in FY 2013 OP from Operations ~ $265 - 275mm in FY 2013 Revenue Elim

  15. Slide 15: Appendix: Operating Business Summaries

    Appendix: Operating Business Summaries

  16. Slide 16: Rail Group

    0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Railcar Deliveries (1958 - 2017P) Projections based on Third Party estimates(1) $2,382 $2,563 $895 $522 $1,275 $2,013 $2,583 -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2007 2008 2009 2010

  17. Slide 17: Railcar Leasing & Management Services Group

    $272 $314 $329 $461 $493 $529 $568 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 2007 2008 2009 2010 2011 2012 LTM 09/13 TILC Revenue Operations Margin PBT Margin 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 3/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/

  18. Slide 18: Inland Barge Group

    $493 $625 $527 $422 $549 $675 $599 0% 3% 6% 9% 12% 15% 18% 21% 24% $- $100 $200 $300 $400 $500 $600 $700 $800 2007 2008 2009 2010 2011 2012 LTM 09/13 Revenues OP Margin 18  Revenues down 9% in LTM 09/13 vs. LTM 09/12  Profitability continues to be strong compared to historical averages for this bu

  19. Slide 19: Construction Products Group

    $326 $361 $281 $354 $453 $484 $517 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% $- $100 $200 $300 $400 $500 $600 2007 2008 2009 2010 2011 2012 LTM 09/13 Highway Products Other OP Margin 19  Revenues and Operating Profit increased 6% and 16% respectively LTM 09/13 vs. LTM 09/12 as a result of a

  20. Slide 20: Energy Equipment Group

    $434 $633 $510 $420 $473 $ 559 $644 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $- $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 LTM 09/13 Wind Tower Revenues Other Revenues OP Margin 20 Structural Wind Towers:  Revenues of $242 million in LTM 09/30/13  Backlog of $610 million(1) as of 0

  21. Slide 21: Reconciliation of EBITDA

    2008 2009 2010 2011 2012 LTM 09/13 Income (loss) from continuing operations $266.8 ($140.8) $69.4 $146.8 $251.9 $338.2 Add: Interest expense 109.4 123.1 182.1 185.3 194.7 192.6 Provision/(Benefit) for income taxes 163.5 (11.5) 37.3 92.2 134.0 180.5 Depreciation & amortization expense 126.8 147.1 180

  22. Slide 22: Reconciliation of PBT Margin – Railcar Leasing and Management Services Group

    Reconciliation of PBT Margin – Railcar Leasing and Management Services Group 22 2007 2008 2009 2010 2011 2012 LTM 09/13 From Leasing Operations: Revenue 272$ 314$ 329$ 461$ 493$ 529$ 568$ Operating profit 112 124 129 200 225 243 256$ Less: Interest Expense (43) (67) (80) (139) (161) (174) (166) Prof

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