Slide 1: Trinity Industries, Inc. November 2008
Trinity Industries, Inc. November 2008
Slide 2: Forward Looking Statements
3 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
Slide 3: Trinity is a Multi-Industry Company
5 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 Last Twelve Months Ended 9/30/08 for outside revenues. Note: Revenue and Operating
Slide 4: Trinity's Results Have Been Strong
7 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 98.3 200 2005 0.108609809 2709.7 294.5 275 2006
Slide 5: Trinity Today: Multi-Industry Model
9 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 Mexic
Slide 6: Trinity's Revenues are Becoming More Diversified Over Time
11 Trinity's Revenues are Becoming More Diversified Over Time FY 2000 Total Consolidated Revenue was $2.7 billion *Total Consolidated Operating Profit Excluding All Other & Corporate FY 2000 Total Consolidated Operating Profit Excluding All Other & Corporate was $327 million LTM 9/30/2008 Total Cons
Slide 7: Trinity is Positioned to Respond in Today's Markets
13 Trinity is Positioned to Respond in Today's Markets Trinity's backlog in its Rail, Barge, and Wind Tower businesses totaled more than $4.1 billion at September 30, 2008 Trinity's manufacturing flexibility allows us to shift our sales and manufacturing focus to those products that provide the best
Slide 8: Trinity's Key Market Leadership Positions
15 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 railca
Slide 9: Trinity's Manufacturing Flexibility is a Differentiator
17 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 Q
Slide 10: Trinity Has an Excellent Competitive Position in Mexico
19 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 4,390 employees Trinity's significant manufacturing capacity in Mexico continues to grow
Slide 11: Trinity's Companies Have Continuous Synergistic Connections
21 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 INTERNA
Slide 12: Trinity's Railcar Leasing Company Provides Stability
23 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
Slide 13: Trinity's Railcar Lease Fleet is Growing Aggressively
25 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 $950 million (net) in 2008. At September 30, 2008: Trinity's lease fleet totaled 43,910 railcars, an increase of 405% since 2000. 3/00 3/01 12/01 12/0
Slide 14: Current Railcar Demand is Largely Driven by Replacement Needs
27 Current Railcar Demand is Largely Driven by Replacement Needs There are approximately 1.7 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 1
Slide 15: Industry Shipments: Rail Industry Shipment Summary and Projections
29 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 198
Slide 16: Inland Barge Growth is Expected to be Driven by Replacement Demand
31 Age 0-5 Years 3592 6-10 Years 5013 11-15 Years 3239 16-20 Years 1640 21-25 Years 953 26+ Years 6458 Inland Barge Growth is Expected to be Driven by Replacement Demand Source: Information from industry sources as of 03/31/08 35.5% are 21+ years old 17.2% 24.0% 15.5% 7.8% 30.9% 4.6% Retirements Hav
Slide 17: Cargo Movement by Barge is Highly Efficient
33 Cargo Movement by Barge is Highly Efficient For shippers with smaller volumes of freight that does not need to move along the rivers, rail is highly efficient as compared to truck For movement of large volume of cargo north and south, use of barges along the inland waterways is typically the most
Slide 18: Barge is More Energy Efficient than Railcar or Truck
35 Barge is More Energy Efficient than Railcar or Truck Barge Rail Truck Ton-Miles 576 413 155 Barges can move one ton of cargo 576 miles per gallon of fuel. A railcar would move the same ton of cargo 413 miles per gallon, and a truck would only move 155 miles. Source: Waterways Working For America,
Slide 19: Trinity is Aggressively Pursuing Synergistic Opportunities in Wind Energy
37 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 $420 million in 2008, while the backlog
Slide 20: Opportunities Continue to Grow for Trinity Structural Wind Towers
39 Opportunities Continue to Grow for Trinity Structural Wind Towers Structural Wind Towers Structural Wind Towers
Slide 21: Trinity is Positioned for the Future
41 Trinity is Positioned for the Future Trinity's products supply the industrial core of North America Railroads, inland waterways, construction, and energy sectors The aging U.S. infrastructure provides Trinity with opportunity Trinity's businesses should benefit from the current emphasis on "green
Slide 22: Trinity's Liquidity Position is Strong
43 Trinity's Liquidity Position is Strong Total Liquidity of $950.5 million as of September 30, 2008 Cash of $183.2 million Corporate Revolver availability of $324.6 million Leasing Warehouse availability of $442.7 million Corporate Revolver $425 million facility No borrowings $100.4 million in Lett
Slide 23: Financial Highlights - Manufacturing and Leasing
45 Financial Highlights - Manufacturing and Leasing Leasing and Management Services Last Twelve Months Ending September 30, 2008: Revenues of $608 million Reflects 10% growth over LTM 9/07 Operating Profit of $171 million Reflects 11% growth over LTM 9/07 As of September 30, 2008: Total Debt of $1.1
Slide 24: Consolidated Financial Highlights
47 Consolidated Financial Highlights Last Twelve Months Ending September 30, 2008 Revenues of $4.1 billion Reflects 14% growth over LTM 9/07 Operating Profit of $585 million Reflects 26% growth over LTM 9/07 Earnings from Continuing Operations of $3.99 per common diluted share Reflects 18% growth ov
Slide 25: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 26: Rail Group
51 Industry shipments of 60,455 during LTM 9/30/08 with a backlog of 52,812 cars as of 9/30/08 Trinity shipments totaled 27,894 during LTM 9/30/08, compared to 8,300 in all of 2003 Trinity orders totaled 22,830, representing approximately 42% of the Industry total during LTM 9/30/08 Trinity's order
Slide 27: Railcar Leasing and Management Services Group
53 Railcar Leasing and Management Services Group Leading provider of comprehensive railcar fleet leasing and management services Trinity's owned and leased fleet was approximately 43,910 railcars at 9/30/08 as compared to 35,890 at 9/30/07 Single point of contact for equipment and services Strengthe
Slide 28: Inland Barge Group
55 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
Slide 29: Construction Products Group
57 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 LTM 9/08 761 63.9 0.083 Rev
Slide 30: Energy Equipment Group
59 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 0.115 LTM 9/08 530 92.8 0.151 Tank Contain