Slide 1: Quarterly Investor Presentation
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. Quarterly Investor Presentation March 1, 2023 – for the period ended December 31, 2022 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: Agenda
DELIVERING GOODS for THE GOOD of ALL /// Investor Presentation – March 2023 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 ~ 108,440 railcars under ownership ~ 33,235 additional investor-owned railcars – Leading manufacturer with 32% 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 $2.0B Total Revenues Trinity Industries Inc. (2022) $328M Adjusted Operating Profit* $92M Adjusted Income from Cont. Ops.* $609M Adjusted EBITDA* $771M Segment Revenue $423M 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 2022 Revenues $2.0B 2022 Cash Flow, Continuing Ops $9M 2022 OP Margin, Adjusted*(1) 17% 2022 Stockholder Returns $154M * 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 2018 2019 2020 2021 2022 $500 $600 $700 $800 —% 20% 40% 60% Stable Financial Performance Through the Cycle FLRD and Utilization are Favorable Leasing Operations Revenue and Operating Profit Margin(1) (in $mms) See appendix
Slide 12: Rail Products and Maintenance Services
DELIVERING GOODS for THE GOOD of ALL /// Rail Products Revenue Maintenance Services Revenue OP Margin 2018 2019 2020 2021 2022 $— $1,000 $2,000 $3,000 —% 4% 8% 12% Leading manufacturer of railcars in North America ◦ Delivered 13,315 railcars during 2022 ◦ Backlog of $3.9 billion for 32,270 new railc
Slide 13: Railcars: Sustainable Long-term Investments
DELIVERING GOODS for THE GOOD of ALL /// Railcars: Sustainable 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 inflat
Slide 14: Diversified Portfolio of Railcar Equipment
DELIVERING GOODS for THE GOOD of ALL /// Diversified Portfolio of Railcar Equipment ~ 900 Different Commodities ~ 270 Different Railcar Designs 14*All percentage information reflects Company-owned fleet assets as of December 31, 2022
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 • Leveraged Green Finan
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 2022(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 31% 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 Lessors Make Up A Growing Share of the North American Fleet Railcar Lessor Ownership Profile Presents Consolidation Opportunity Operating Lessors
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 Opportunistic Deployment
DELIVERING GOODS for THE GOOD of ALL /// Healthy Balance Sheet Strategically Positioned for Opportunistic Deployment and Value Creation 21 Unencumbered Railcars $335M • Pledge to warehouse • Additional assets can be sold or financed • LTV of 65.7% for the wholly-owned lease portfolio as of Q4-22(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 Strategic Growth Continue focus on lower breakeven points Enhance value of outsourced fabrication activities Manufacturing Cost Improvement Lease Fleet Optimization *See appendix for footnotes and r
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 (1) The effective tax rate for gains on dispositions of other property, restructuring activities, interest expense, net is before consideration of the CARES Act. (2) Represents insurance recoveries in excess of ne
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 gains on dispositions of other property, restructuring activities, the loss on extinguishment of debt, and pension plan settlement is before consideration of the CARES Act.
Slide 28: 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 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 (1) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. (2) Excludes $7.1 mi
Slide 31: Footnotes
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, 2022. 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