Wabash National Corporation · NYSE:WNC
Wabash National — Investor Day (May 2022)
59 slides from Wabash National's investor day presentation, May 19, 2022
Slide 1: Wabash 2022 Investor Meeting
Wabash 2022 Investor Meeting Changing How the World Reaches YouTM May 19, 2022
Slide 2: Welcome & Opening Remarks
2WNC Investor Day | WELCOME & OPENING REMARKS RYAN REED SR DIRECTOR OF CORPORATE DEVELOPMENT & IR
Slide 3: Safe Harbor Statement & Non-GAAP Financial Measures
3WNC Investor Day | Safe Harbor Statement & Non-GAAP Financial Measures This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectatio
Slide 4: Agenda
4WNC Investor Day | Agenda 10:00am WELCOME & OPENING REMARKS Ryan Reed | Sr Director of Corporate Development & IR ONE WABASH STRATEGY TO DRIVE LONG-TERM STAKEHOLDER VALUE Brent Yeagy | President & CEO ENHANCED CUSTOMER CENTRICITY AS ONE WABASH • TRANSPORTATION SOLUTIONS • PARTS & SERVICES Dustin Sm
Slide 5: One Wabash Strategy to Drive Long-term Stakeholder Value
5WNC Investor Day | ONE WABASH STRATEGY TO DRIVE LONG-TERM STAKEHOLDER VALUE BRENT YEAGY PRESIDENT & CEO
Slide 6: Today's Key Messages
6WNC Investor Day | Today’s Key Messages Changing How the World Reaches YouTM 1 2 3 4 5 Purpose-led organization executing One Wabash strategy that continues to increase customer-centricity and create new capabilities The leader in transportation solutions with the only true First to Final Mile port
Slide 7: Wabash Snapshot
7WNC Investor Day | Wabash Snapshot (NYSE: WNC) Leveraging the Industry’s Broadest Portfolio Across All Phases of Transportation 1985 Lafayette, IN $739M1 ~6,200 13 $2.5B 6% Founded Headquarters Market-cap Global Employees Manufacturing Locations 2022 Forecasted Revenue 2022 Forecasted Operating Mar
Slide 8: New Purpose, Vision and Mission
8WNC Investor Day | New Purpose, Vision and Mission PURPOSE To change how the world reaches you VISION To be the innovation leader of engineered solutions for the transportation, logistics, and distribution industries MISSION To enable our customers to succeed with breakthrough ideas and solutions t
Slide 9: Our Future as One Wabash
9WNC Investor Day | Our Future as One Wabash Commercial Organization Realignment Improve leverage across First to Final Mile portfolio Centralized Manufacturing Support customer- centric commercial strategy Parts & Services Recurrent Revenue Strategy Unify existing businesses and focus on growth Por
Slide 10: Customer-centric Organization Enables Better Execution
10WNC Investor Day | Customer-centric Organization Enables Better Execution of First to Final Mile Strategy Providing One Face to Customers for Our First to Final Mile Portfolio of Solutions Continuing to Progress and Enhance Our Customer Experience… FROM TO • Slightly better than average, transacti
Slide 11: Our Sustainable Competitive Advantages – How We Will Win
11WNC Investor Day | Our Sustainable Competitive Advantages – How We Will Win Anchored by Our Values and Leadership Principles to Accelerate Progress and Drive Results Purpose-driven organization and culture Unrivaled First to Final Mile product portfolio breadth Accelerated industry-leading R&D and
Slide 12: Corporate Responsibility Video
12WNC Investor Day | Corporate Responsibility Video
Slide 13: Commitment to Corporate Responsibility
13WNC Investor Day | Commitment to Corporate Responsibility is Engrained in Our Strategic Sustainable Solutions Sustainability is Core to Our Product Strategy and a Clear Competitive Differentiator • Enabling adoption of electrification by providing innovative truck body solutions ideally suited to
Slide 14: From Safety to Stewardship
14WNC Investor Day | From Safety to Stewardship KEY 2021 HIGHLIGHTS Waste Reduction and Recycling Efforts • ~297k cubic yards of landfill space • ~64M kwH of electricity • ~57k metric tons of GhG emissions Employee / Workplace Health and Safety • 5.2 TRIR – below most recent industry average of 6.1
Slide 15: WMS Video
15WNC Investor Day | WMS Video
Slide 16: Our Approach to Leveraging WMS
16WNC Investor Day | Our Approach to Leveraging WMS An Established Problem-Solving and Learning Culture Continuous Focus on Operational Excellence ✓ Hosted first WMS University Champion Training Session in 2021 with ~100 graduates to date ✓ In partnership with Purdue University, developed curriculum
Slide 17: eCommerce Driving Increased Freight Touches and Logistics Complexity
17WNC Investor Day | eCommerce driving increased freight touches and increasing logistics complexity Well-Positioned to Benefit from Favorable Secular Growth Drivers First to Final Mile Portfolio Creates Simplicity for Customers Managing Through Significant Industry Change L O N G E R - T E R M D E
Slide 18: Strategic Priorities Fueling Long-term Profitable Growth
18WNC Investor Day | Strategic Priorities Fueling Long-term Profitable Growth EXPAND GROW FOCUS Cold Chain Market Share (Refrigerated Applications) in Parts & Services on eCommerce & Logistics Disruption • Capture opportunities from goods moved through temp-controlled cold chain • Bring differentiat
Slide 19: Proven and Experienced Leadership Team
19WNC Investor Day | Proven and Experienced Leadership Team Driving Positive Momentum 125+ Years Combined Industry Experience Dustin Smith Senior Vice President, Chief Strategy Officer 2007 Mike Pettit Senior Vice President, Chief Financial Officer 2012 Kevin Page Senior Vice President, Customer Val
Slide 20: Introducing Our 2025 Goals
20WNC Investor Day | Introducing Our 2025 Goals Prior Goals Announced at 2019 ID 2022 Outlook 2025 Goals Revenue ~$2.2B $2.5B $3.0B Recurring Revenue1 - $200M $300M Operating Margin 8% 6% 9% Operating EBITDA2 - $205M $330M Operating EBITDA Margin2 - 8% 11% EPS $1.90 - $2.10 $1.90 $3.50 NEW 1 Recurri
Slide 21: Enhanced Customer Centricity as One Wabash
21WNC Investor Day | DUSTIN SMITH SVP, CHIEF STRATEGY OFFICER ENHANCED CUSTOMER CENTRICITY AS ONE WABASH Transportation Solutions Parts & Services KEVIN PAGE SVP, CUSTOMER VALUE CREATION
Slide 22: Key Messages: Well Positioned at the Center of the Transportation Ecosystem
22WNC Investor Day | Key Messages Well Positioned at the Center of the Transportation Ecosystem 1 2 3 4 5 Changing How the World Reaches YouTM As One Wabash Purpose-led organization executing One Wabash strategy that continues to increase customer-centricity and create new capabilities Aligning stra
Slide 23: One Wabash Portfolio of Solutions and Services
23WNC Investor Day | One Wabash Portfolio of Solutions and Services Engrained Legacy of Setting New Standards in Design and Performance Transportation Solutions Committed to providing world-class commercial transportation solutions 2 0 2 1 F I N A N C I A L H I G H L I G H T S Revenue $1.63B Adj. Op
Slide 24: eCommerce Driving Disruption Throughout Logistics Chain
24WNC Investor Day | eCommerce Driving Disruption Throughout Logistics Chain Greater Volumes of Equipment, Next-Generation Solutions Needed to Solve for Increasing Freight Touches Origin/Hub Warehouse Factory Destination/Hub Warehouse Fulfillment Center Stores/ Distribution Consumers Consumers FIRST
Slide 25: Strategic Capacity Optimization
25WNC Investor Day | Strategic Capacity Optimization Dry Van Capacity Addition Expected to Generate $0.30 of EPS in 2023+ Progress Update • Converting current refrigerated capacity to dry van capacity • Progress on-track for dry van production to begin January 2023 • Added dry van capacity – the key
Slide 26: Capacity Progress Highlight Video
26WNC Investor Day | Capacity Progress Highlight Video
Slide 27: Truck Body Simplification Strategy
27WNC Investor Day | Truck Body Simplification Strategy Product Offering is Critical to First to Final Mile Strategy Multi-Pronged Approach to Improving Truck Body Profitability • Focus on 80/20 of products that underpin profitability • Rationalize products that drive margin-dilutive variation throu
Slide 28: Evolving Our Parts & Services Portfolio through an Innovative Business Platform
28WNC Investor Day | Evolving Our Parts & Services Portfolio through an Innovative Business Platform Creating a Self-Sustaining Platform Ecosystem DEALERS SUPPLIERS CUSTOMER FACING DIGITAL CAPABILITIES CUSTOMERS DISTRIBUTION Connecting the Dots Across the Transportation Ecosystem Helping to Facilita
Slide 29: Our Sustainable Competitive Advantages – How We Will Win
29WNC Investor Day | Our Sustainable Competitive Advantages – How We Will Win Anchored by Our Values and Leadership Principles to Accelerate Progress and Drive Results Purpose-driven organization and culture Unrivaled First to Final Mile product portfolio breadth Accelerated industry-leading R&D and
Slide 30: Poised to Capture Significant Market Opportunity
30WNC Investor Day | Poised to Capture Significant Market Opportunity Meaningful Growth Opportunities in Adjacent Markets 1 Source: ACT Research and Company estimates. 2 Inclusive of logistics disruption initiative. ~$15B Base Business2 ~$5B Parts & Services ~$4B Cold Chain ~$24B Total Addressable M
Slide 31: Strategic Priorities Fueling Long-term Profitable Growth
31WNC Investor Day | Strategic Priorities Fueling Long-term Profitable Growth EXPAND GROW FOCUS Cold Chain Market Share (Refrigerated Applications) in Parts & Services on eCommerce & Logistics Disruption • Capture opportunities from goods moved through temp-controlled cold chain • Bring differentiat
Slide 32: Grocery Home Delivery Vehicle
32WNC Investor Day | Grocery Home Delivery Vehicle Customer-Centric Structure Enabled Rapid Co-Development of Market-Leading Solution B A C K G R O U N D Significant market shift – increased demand for home delivery during and post-COVID Market need to create a tailored solution to maximize efficien
Slide 33: Wabash Parts Distribution
33WNC Investor Day | Wabash Parts Distribution Raised the Bar by Delivering Breakthrough Parts Distribution Capabilities B A C K G R O U N D Customers looking to optimize sourcing, distribution, and services Wabash dealers have historically ordered $100M+ of parts per year, typically from multiple s
Slide 34: Focus on eCommerce and Logistics Disruption
34WNC Investor Day | Focus on eCommerce and Logistics Disruption Ultimately Looking to Create and Find Solutions for Our Customers Technology Partner Ecosystem Use Case – Zero Emission Vehicle (ZEV) • In a fast-paced emerging space, Wabash is at the center facilitating technology sharing with unique
Slide 35: Key Takeaways
35WNC Investor Day | Key Takeaways Aligning strategic portfolio of solutions and services to benefit from structural trends in cold chain, Parts & Services, and logistics disruption 1 Focusing on customer-centricity, strategic capacity optimization, and industry-leading new product development with
Slide 36: Clear Financial Objectives & Capital Allocation Framework
36WNC Investor Day | CLEAR FINANCIAL OBJECTIVES & CAPITAL ALLOCATION FRAMEWORK MIKE PETTIT SVP & CFO
Slide 37: Financial Key Messages
37WNC Investor Day | Financial Key Messages Proven Financial Resiliency Driving Long-term Stakeholder Value 1 2 3 4 5 Resilient financial performance during 2020 driven by agile response to changing conditions enabled by simplified org structure Well-positioned to leverage portfolio approach to cont
Slide 38: 3-Year Financial Performance
38WNC Investor Day | 3-Year Financial Performance A More Resilient Foundation with More Recurring Revenue and an Improving Margin Profile $1,481 $1,803 $2,500 2020 2021 2022F Revenue ($M) $22.5 $60.0 $147.0 1.5% 3.3% 5.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $- $20.0 $40.0 $60.0 $80.0 $100.0 $
Slide 39: Growing Our Higher Margin Parts & Services Segment
39WNC Investor Day | Growing Our Higher Margin Parts & Services Segment Growth in Parts & Services Increases Recurring Revenue within Wabash’s Portfolio $180 $300 2021 2025E Increasing Amount of Recurring Revenue1 • Increasing recurring revenue provides increased stability through the cycle and a me
Slide 40: Flexible Balance Sheet and Strong Liquidity
40WNC Investor Day | Flexible Balance Sheet and Strong Liquidity Provide Financial Flexibility Long-term Leverage Ratio Target of 2.0x – 3.0x March 31, 2022 Cash & Cash Equivalents $ 73 Debt $ 489 Net Debt $ 411 2022F Operating EBITDA1 $ 205 Net Debt to Operating EBITDA1 2.0x Available Credit Under
Slide 41: Balanced Capital Allocation Priorities
41WNC Investor Day | Balanced Capital Allocation Priorities Clear Priorities to Create Value for All Stakeholders CAPITAL DEPLOYED OVER LAST 3 YEARS ▪ Capex ▪ Debt Reduction ▪ Share Repurchases ▪ Dividend ~$366M • Elevated growth capex (3-4% of revenue) in 2022 and 2023 • Expect growth capex to be ~
Slide 42: Shifting from Fixed to Variable Pricing within Vans
42WNC Investor Day | Shifting from Fixed to Variable Pricing within Vans All-time Record Backlogs and Variable Pricing Leading to Enhanced Margin Certainty O N G O I N G D E M A N D A C R O S S A L L P R O D U C T L I N E S • Backlog ending 2021 reached all-time record levels • Conversations shiftin
Slide 43: Reiterating 2022 Outlook
43WNC Investor Day | Reiterating 2022 Outlook A Meaningful Step Forward in Financial Results $2.5B ~6% $1.90 Revenue Operating Margin EPS OTHER KEY METRICS • SG&A: 5.5 - 6.0% of Sales • Intangible Amortization: ~$15M • Interest Expense: ~$20M • Capex: $80-90M • Tax Rate: ~26%
Slide 44: Our 2025 Goals
44WNC Investor Day | Our 2025 Goals Prior Goals Announced at 2019 ID 2022 Outlook 2025 Goals Revenue ~$2.2B $2.5B $3.0B Recurring Revenue1 - $200M $300M Operating Margin 8% 6% 9% Operating EBITDA2 - $205M $330M Operating EBITDA Margin2 - 8% 11% EPS $1.90 - $2.10 $1.90 $3.50 NEW U.S. annual GDP growt
Slide 45: Bridging 2022F to 2025 Goals
45WNC Investor Day | Bridging 2022F to 2025 Goals Strategic Growth Initiatives Provide Asynchronous Growth Opportunity $2.5B $3.0B$275M $100M$125M 8.0% 11.0%150 bps 50 bps 100 bps OPERATING EBITDA MARGIN REVENUE Strategic Priorities Fueling Long-term Profitable Growth Cold Chain • Capture opportunit
Slide 46: Key Takeaways
46WNC Investor Day | Key Takeaways Resilient financial performance during 2020 driven by agile response to changing conditions enabled by simplified org structure 1 Well-positioned to leverage portfolio approach to continue improving EBITDA Margin profile 2 Parts & Services features more recurring r
Slide 47: Closing Remarks
47WNC Investor Day | CLOSING REMARKS BRENT YEAGY PRESIDENT & CEO
Slide 48: Why Invest in Wabash
48WNC Investor Day | Why Invest in Wabash 1 2 3 4 5 Purpose-led organization executing One Wabash strategy that continues to increase customer-centricity and create new capabilities The leader in transportation solutions with the only true First to Final Mile portfolio Clear strategic initiatives to
Slide 49: Q&A Session
49WNC Investor Day | Q&A SESSION ALL PRESENTERS
Slide 50: Appendix
50WNC Investor Day | APPENDIX
Slide 51: Reconciliation of Adjusted Segment Operating Income
51WNC Investor Day | Reconciliation of Adjusted Segment Operating Income1 Unaudited - dollars in thousands Twelve Months Ended December 31, 2021 2020 Transportation Solutions Income from operations $ 61,869 $ (29,702) Adjustments: Trade names & trademarks impairment 25,619 — Impairment — 68,257 Loss
Slide 52: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
52WNC Investor Day | Reconciliation of Adjusted Net Income and Adjusted Diluted EPS Adjusted Net Income1: Twelve Months Ended December 31, 2021 2020 Net income (loss) $ 1,164 $ (97,412) Adjustments: Trade names & trademarks impairment 28,346 — Gain on divestiture of Extract Technology (1,874) — Debt
Slide 53: Reconciliation of Operating EBITDA and Free Cash Flow
53WNC Investor Day | Reconciliation of Operating EBITDA and Free Cash Flow Operating EBITDA1: Twelve Months Ended December 31, 2021 2020 Net income (loss) $ 1,164 $ (97,412) Income tax (benefit) expense 126 (11,802) Interest expense 23,128 24,194 Depreciation and amortization 48,842 47,970 Stock-bas
Slide 54: Reconciliation of Adjusted Segment EBITDA and Margin
54WNC Investor Day | Reconciliation of Adjusted Segment EBITDA1 and Adjusted Segment EBITDA Margin1 Unaudited - dollars in thousands Transportation Solutions Parts & Services Twelve Months Ended December 31 2021 2020 2021 2020 Income (loss) from operations $ 61,869 $ (29,702) $ 20,201 $ (12,658) Dep
Slide 55: Speaker Biographies
55WNC Investor Day | SPEAKER BIOGRAPHIES
Slide 56: Speaker Bios: Brent Yeagy
56WNC Investor Day | Speaker Bios Brent Yeagy is an industrial manufacturing leader with more than 20 years of experience in the automotive and commercial transportation industries. Since June 2018, Mr. Yeagy has been responsible for the strategic direction and operations of Wabash in his role as Pr
Slide 57: Speaker Bios: Mike Pettit
57WNC Investor Day | Speaker Bios Mike Pettit was appointed to Senior Vice President and Chief Financial Officer in January 2020. He previously served as Senior Vice President and Group President, Final Mile Products (2018-2020) and Vice President of Finance and Investor Relations (2014–2018). He jo
Slide 58: Speaker Bios: Dustin Smith
58WNC Investor Day | Speaker Bios Dustin Smith was appointed Senior Vice President, Chief Strategy Officer on June 4, 2021. He previously served as Senior Vice President, Global Operations from March 2020 to June 2021. Mr. Smith joined Wabash in 2007 and has held a number of positions with increasin
Slide 59: Speaker Bios: Kevin Page
59WNC Investor Day | Speaker Bios Kevin Page was appointed to Senior Vice President, Customer Value Creation on March 23, 2020. He previously served as Senior Vice President and Group President, Diversified Products Group and Final Mile Products since January 2020, after serving as Senior Vice Presi