Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (February 2008)
29 slides from Trinity Industries's investor presentation, Feb 26, 2008
Slide 1: Trinity Industries, Inc. Investor Presentation February 2008
Trinity Industries, Inc. Investor Presentation February 2008
Slide 2: Forward Looking Statements
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 st
Slide 3: Trinity is a Multi-Industry Company
Trinity is a Multi-Industry Company Trinity is focused on infrastructure products and services in five distinct business groups: Note: Revenue and Operating Profit percentages for Fiscal Year 2007 for outside revenues.
Slide 4: Trinity's Results Have Been Strong
EBITDA Margin Line 3 Revenue EBITDA Stack 2 Stack 3 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2002 0.07368587 1268.9 93.504 50 2003 0.080165092 1259.9 101 125 2004 0.049974555 1965 98.2 200 2005 0.108609809 2709.7 294.3 275 2006 0.
Slide 5: Trinity is Positioned to Respond in Today's Markets
Trinity is Positioned in Respond in Today's Markets Trinity's backlog in its Rail, Barge, and Wind Tower businesses totaled more than $4.1 billion at December 31, 2007 This gives Trinity visibility into 2008 and 2009 Trinity's manufacturing flexibility allows us to shift our sales and manufacturing
Slide 6: Trinity's Manufacturing Flexibility is a Differentiator
Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's manufacturing flexibility enhances its opportunistic approach Quic
Slide 7: Trinity Has an Excellent Competitive Position in Mexico
Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico Trinity Has an Excellent Competitive Position in Mexico More than five decades of in-country operating experience Multiple plants in Mexico - more than 4,940 employees Trinity's significan
Slide 8: Trinity's Railcar Leasing Company Provides Stability
Trinity's Railcar Leasing Company Provides Stability Trinity's leasing company continues to provide strategic benefits to the manufacturing business in addition to its strong financial performance The leasing company's aggressive growth strengthens relationships with core customers while allowing su
Slide 9: Trinity's Railcar Lease Fleet is Growing Aggressively
Trinity's Railcar Lease Fleet is Growing Aggressively Trinity added $482 million (net) of railcars to its fleet in 2007 and expects to add another $650 - $750 million (net) in 2008 - more than $1 billion in two years At December 31, 2007: Trinity's lease fleet totaled 36,090 railcars, an increase of
Slide 10: Trinity's Companies Have Continuous Synergistic Connections
Trinity's Companies Have Continuous Synergistic Connections Trinity's businesses place a high priority on collaborating with each other to continuously generate synergies that provide competitive benefits: Networking Customer Relationships Internal Sourcing of Components & Sub- Assemblies INTERNALLY
Slide 11: Trinity's Key Market Leadership Positions
Trinity's Key Market Leadership Positions Trinity's portfolio of businesses consists of companies that have maintained market leading positions for over a decade Our businesses are led by experienced managers who know their markets, products and services We have an aggressive, competitive nature - w
Slide 12: Trinity's Key Market Leadership Positions by Group
Trinity's Key Market Leadership Positions Trinity's Rail Group Largest manufacturer of railcars in North America Largest railcar axle manufacturer in North America Largest railcar coupler manufacturer in North America Trinity's Rail Leasing and Management Services Group Leading provider of railcar l
Slide 13: Trinity Today
Trinity Today Leasing and Management Services Aggressively Grow our Leasing Business Expand Relationships with End-users of railcars Introduce New Products through Leasing Business Diversify Earnings Base for Trinity Manufacturing Businesses Maximize Returns Expand Manufacturing Footprint in Mexico
Slide 14: Trinity's Revenues are Becoming More Diversified Over Time
Trinity's Revenues are Becoming More Diversified Over Time Over Time Over Time
Slide 15: Trinity is Positioned for the Future
Trinity is Positioned for the Future Trinity's products supply the industrial core of North America Railroads, inland waterways, construction, and energy sectors Trinity's businesses should benefit from the economic stimulus package We manufacture capital goods, which have the opportunity for increa
Slide 16: Current Railcar Demand is Largely Driven by Replacement Needs
Current Railcar Demand is Largely Driven by Replacement Needs There are approximately 1.6 million railcars in the North American system Nearly 700,000 of those railcars are more than 25 years old The average life span of a railcar is 35 years The last major sustained build cycle was in the late 1970
Slide 17: Rail Industry Shipment Summary and Projections
Industry Shipments 1956 67080 1957 99590 1958 42760 1959 37819 1960 57047 1961 31720 1962 36554 1963 44960 1964 69330 1965 77828 1966 90104 1967 83095 1968 56232 1969 69028 1970 65970 1971 54696 1972 47460 1973 59875 1974 66563 1975 72337 1976 52504 1977 51142 1978 67286 1979 84869 1980 80470 1981 4
Slide 18: TrinityRail's Focus on Operational Excellence Continues to Drive Performance
TrinityRail's Focus on Operational Excellence Continues to Drive Performance In 2007, Trinity booked 43% of all railcars orders in the industry and holds 42% of the backlog During 2006, Trinity's Rail Group Operating Profit grew by 88%, or $119 million During 2007, the Rail Group Operating Profit gr
Slide 19: Inland Barge Growth is Expected to be Driven by Replacement Demand
Estimated Retirements New Builds 1999 1019 931 2000 1201 831 2001 862 655 2002 1139 596 2003 947 280 2004 942 510 2005 714 328 2006 713 740 Age 0-5 Years 2679 6-10 Years 5049 11-15 Years 3203 16-20 Years 1640 21-25 Years 992 26+ Years 7131 39% are 21+ years old Inland Barge Growth is Expected to be
Slide 20: Trinity is Aggressively Pursuing Synergistic Opportunities in the Wind Energy Market
Trinity is Aggressively Pursuing Synergistic Opportunities in the Wind Energy Market Opportunities in the Wind Energy Market Opportunities in the Wind Energy Market Trinity's Structural Wind Tower revenues have grown from $11 million in 2004 to an expected $380 million in 2008 Trinity's concrete bus
Slide 21: Opportunities and Efficiencies Continue to Grow for Trinity Structural Wind Towers
Opportunities and Efficiencies Continue to Grow for Trinity Structural Wind Towers
Slide 22: Financial Highlights - Manufacturing and Leasing
Financial Highlights - Manufacturing and Leasing Leasing and Management Services Fiscal Year Ending December 31, 2007: Revenues of $632 million Reflects 108% growth over FY 2006 Operating Profit of $161 million Reflects 51% growth over FY 2006 Accounts for 30% of Trinity's operating profit As of Dec
Slide 23: Consolidated Financial Highlights
Consolidated Financial Highlights Fiscal Year Ending December 31, 2007: Revenues of $3.8 billion Reflects 19% growth over FY 2006 Operating Profit of $513 million Reflects 34% growth over FY 2006 Earnings from Continuing Operations of $3.65 per common diluted share Reflects 34% growth over FY 2006 R
Slide 24: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 25: Rail Group
Industry shipments of 63,185 during 2007 with a backlog of 75,860 cars as of 12/31/07 Trinity shipments totaled 27,370 during 2007, compared to 8,300 in all of 2003 Trinity orders totaled 23,370, representing approximately 43% of the Industry total during 2007 Trinity's order backlog was approximate
Slide 26: Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group Leading provider of comprehensive railcar fleet leasing and management services Trinity's owned and leased fleet was approximately 36,090 railcars at 12/31/07 as compared to 30,550 at 12/31/06 Single point of contact for equipment and services Strengthen
Slide 27: Inland Barge Group
Revenue Operating profit Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 211.7 4.7 0.0222 2003 170.6 -4.7 -0.0275 2004 210.4 -14.8 -0.0703 2005 240.7 15.7 0.0652 2006 371.2 44.5 0.1199 2007 493.2 72.6 0.1472 Re
Slide 28: Construction Products Group
Revenues OP OP% Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 463.9 44.8 0.097 2003 457.4 37.5 0.082 2004 535.5 35.1 0.066 2005 621.6 55.3 0.089 2006 695.3 61.5 0.088 2007 733 58.2 0.079 Revenues up 7% in Q4 07 vs. Q4
Slide 29: Energy Equipment Group
Revenue OP OP% Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 149.4 0.6 0.004 2003 124.3 10.9 0.088 2004 152.1 15.3 0.101 2005 234.8 31.9 0.136 2006 336.5 45.7 0.136 2007 433.9 50.1 0.1155 Tank Containers: Consistent and mature
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