ACT S 51 ST SEMINAR: REVIEW & OUTLOOK 2014 2018 What s Happening in the Trailer Market September 24, 2014 Mark Dahl Director of Sales and Marketing Walker Transport
SAFE HARBOR STATEMENT This presentation contains certain forward looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forwardlooking statements, including without limit, those regarding shipment outlook, Operating EBITDA, backlog, demand level expectations, profitability and earnings capacity, margin opportunities, and potential benefits of any recent acquisitions. Any forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward looking statements. Without limit, these risks and uncertainties include economic conditions, increased competition, dependence on new management, reliance on certain customers and corporate partnerships, shortages and costs of raw materials, manufacturing capacity and cost containment risks, dependence on industry trends, access to capital, acceptance of products, and government regulation. You should review and consider the various disclosures made by the Company in this presentation and in its reports to its stockholders and periodic reports on Forms 10 K and 10 Q. We cannot give assurance that the expectations reflected in our forward looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward looking statements. All written and oral forward looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. 2014 Wabash National, L.P. All rights reserved. Wabash, Wabash National, DuraPlate, DuraPlate AeroSkirt, Walker, Brenner and Beall are marks owned by Wabash National, L.P. Transcraft and Benson are marks owned by Transcraft Corporation. 2
ABOUTWABASH NATIONALCORPORATION Wabash National Corporation Commercial Trailer Products Diversified Products Retail 2013 Sales: $1.1B Dry & Refrigerated Vans Platform Trailers Fleet Used Trailers 2013 Sales: $502M Walker Group Wabash Composites Wabash Wood Products 2013 Sales: $181M 15 Retail Locations in U.S. New & Used Trailer Sales Parts & Service Segment Revenue is prior to the elimination of intersegment sales. New Markets. New Innovation. New Growth. 3
TANK TRAILER BRANDS 2013 Tank Trailer Shipments: 3,100 2013 Truck Mounted Shipments: 500 Primary Market(s) Served Sanitary & Food Grade Chemical & Energy Propane Chemical, Agriculture Liquid Waste & Refined Fuels Refined Fuels, Energy & Dry Bulk Aviation Tank Material Aluminum & Stainless Steel Aluminum, Stainless Steel & FRP Carbon Steel Stainless Steel Aluminum, Stainless Steel & Carbon Steel Aluminum Aluminum & Stainless Steel Manufacturing Location Wisconsin Wisconsin & Indiana Missouri Mexico Indiana, Missouri & Wisconsin Oregon & Wisconsin Kansas & Ohio Broadest Commercial Trailer Portfolio in the Industry 4
TANK PRODUCTS Liquid Tank Trailers Aluminum Shale Oil Trailer Stainless-Steel Dairy Trailer Stainless-Steel Chemical Trailer Truck Mounted Tanks Refined Petroleum Truck Defense Fuel Truck Vacuum Truck Aviation Refuelers 7,000 Gallon Refueler 750 Gallon Refueler 10,000 Gallon Refueler Aviation Equipment Dry Bulk Towable Hydrant Dispenser Fuel Storage & Pumping Systems 710 Pneumatic Broadest Commercial Trailer Portfolio in the Industry 5
WALKER GROUP #1 manufacturer of liquid transportation systems in North America History of innovation and industry stewardship Strong brand and premium products Blue chip customer base Attractive end markets Chemical, Dairy, Food & Beverage, Energy, Aviation, Environmental Providing Best in Class Products Since 1943 6
FOOD GRADE MARKET Types of Products Milk Cream Whey Water Fruit Juice Vegetable Oil High Fructose Corn Syrup (HFCS) Vinegar Wine Chocolate Mustard Eggs Alcohol/Whiskey/Rum 7
FOOD GRADE MARKET The United States produces in excess of 200 Billion Pounds of Milk Annually Worldwide Food Supply Dairy Exports 8
REGULATORY ENVIRONMENT The Food Supply in the U.S. is Extremely Safe Food Safety Modernization Act Temperature Control Cleanability Prior Cargo Training of Transport Staff Recordkeeping Cargo Tank Risk Management Committee (CTRMC) 9
OTHER DYNAMICS Size of the Tank Trailer Market Cost of Raw Material Stainless Steel Increased Production Driver Shortage Trade Cycle ACT Shipments Forecast 2013 2014 F 2015 F 2016 F 2017F 2018F 2019F Liquid Tanks 8,301 8,450 8,000 7,000 6,500 6,700 6,800 Bulk Tanks 1,403 2,700 2,700 2,200 2,200 2,100 2,100 Total Tanks 9,704 11,150 10,700 9,200 8,700 8,800 8,900 10
ENHANCING SAFETY, PRODUCTIVITY & SUSTAINABILITY Brenner Lean Duplex Tank Trailer CTRMC Walkway System Walker Tank Trailer with Composite Jacket and DuraPlate AeroSkirt Pre 2000 2006 2010 2012 AL Frame & Cradle Walker sanitary tank design introduced Optimal balance of weight savings and durability Beall Integral Frame Lowers center of gravity of most petro tanks Reduces weight Lean Duplex First to markets with DOT approved Lean Duplex Trailer Less costly Less weight Higher strength Better corrosion resistance Better heat endurance Shaker Tank Patented solution Vibrators Closed loop systems Sophisticated heat CTRMC Hosted inaugural mtg. Yielded 10+ ideas to reduce risk Electric Heat Released latest gen. technology Can use shore power, or gen set on trailer A Legacy of Innovation & Leadership 11
THANK YOU 12