INVESTOR PRESENTATION May 2020 1 DISCLAIMER Forward-Looking - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION May 2020 1 DISCLAIMER Forward-Looking - - PowerPoint PPT Presentation

INVESTOR PRESENTATION May 2020 1 DISCLAIMER Forward-Looking Statements Certain statements in this presentation, other than statements of historical facts, including statements regarding our strategy, future operations, future financial


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INVESTOR PRESENTATION

May 2020

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DISCLAIMER

Forward-Looking Statements Certain statements in this presentation, other than statements of historical facts, including statements regarding our strategy, future operations, future financial position, future revenues, future costs, prospects, plans and objectives of management are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that include the words ”expect,” “estimate,” “anticipate,” “predict,” "believe," “think,” “plan,” “will,” “should,” “intend,” “seek,” “potential” and similar expressions and variations are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond our control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. These factors include, without limitation, economic, business, competitive, market and regulatory conditions and the following: the impact of COVID-19 on our business; decreases in the demand for leased containers; decreases in market leasing rates for containers; difficulties in re-leasing containers after their initial fixed-term leases; customers' decisions to buy rather than lease containers; dependence on a limited number of customers for a substantial portion of our revenues; customer defaults; decreases in the selling prices of used containers; extensive competition in the container leasing industry; difficulties stemming from the international nature of Triton’s businesses; decreases in the demand for international trade; disruption to our operations resulting from political and economic policies of the United States and other countries, particularly China, including but not limited to the impact of trade wars and tariffs; disruption to our operations from failure of or attacks on our information technology systems; disruption to our operations as a result of natural disasters, compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; ability to obtain sufficient capital to support growth; restrictions imposed by the terms of our debt agreements; changes in the tax laws in Bermuda, the United States and other countries; and other risks and uncertainties, including those listed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “Form 10-K”) or other reports we file with the United States Securities and Exchange Commission. The foregoing list of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors in our Form 10-K. Any forward-looking statements made herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our businesses or

  • perations. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking

statement, whether as a result of new information, future developments or otherwise. Certain financial measures presented in this presentation are identified as not being prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Please refer to the Appendix hereto for a reconciliation of such non-GAAP measures to their most comparable GAAP measures.

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OVERVIEW

 Triton International (“Triton”) is the largest intermodal container leasing company in the world » Industry leader for many years, with origins dating back to 1963 » Own over 6 million twenty-foot equivalent units (“TEU”) of containers; total assets over $9.8 billion » NYSE-listed with a market capitalization of $2.1 billion as of 5/4/20 » S&P rating of BB+ for corporate family, BBB- for secured debt and A for ABS notes  Triton has significant competitive advantages » Scale, capability and cost leadership » Deep customer relationships » Well-structured long-term lease portfolio  Triton has a long track record of strong financial performance » Market leading returns » Strong and stable cash flow to support dividends, stock buybacks and asset growth  The COVID-19 pandemic has significantly impacted global shipping, but Triton is well positioned to manage through the current challenges and Triton’s performance has been holding up well

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TRITON CONTAINER FLEET AND LEASE PORTFOLIO

Lease Portfolio (NBV) Container Fleet % of Revenue Q1 2020 Triton Position (1) Drys 67% #1 Refrigerated 25% #1 Core Specials 5% #1 Chassis and Specialty Products 3% Top 5

5.1% 5.5% 73.5% 71.2% 14.0% 15.7% 7.4% 7.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mar-19 Mar-20 Service Leases Long-Term Expired Lease (Units On-Hire) Long-Term Lease Finance Lease

(1) Source: Drewry Container Census & Lease Industry Annual Report 2018/19, IICL and ITCO.

Large Majority of Containers On Long-Term and Finance Leases with Average Remaining Duration of 48 Months as of 3/31/20

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CORPORATE SNAPSHOT

Long-Term Value Creation (1)

1 2 3 4 5 6 7 8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Triton Container Fleet, CEU in MM

Leading Position in Consolidating Industry Multiple Drivers of Organic Growth Triton’s Steady Fleet Growth

Triton 28%

Florens 17% Textainer 16% Seaco 11% CAI 7% Beacon 7% SeaCube 5% Other 9%

Source: Drewry Container Census & Lease Industry Annual Report 2019/20, based on fleet size in TEU at end-2018; figures exclude containers owned by shipping lines and other.

CAGR: 8.0%

$- $10 $20 $30 $40 $50 $60 $70

Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20

$ Per Share

Book Value Per Share Adjusted Tangible Book Value Cumulative Dividends Per Share

(1) Adjusted tangible book value defined as Shareholders Equity, less Goodwill plus Net Deferred Tax Liability plus

Net Swap Liability, before purchase accounting adjustments. For periods prior to Q3 2016, reflects TAL only.

GAAP BVPS: $28.11 Adj. TBV: $36.61

Global Trade Growth Product Line Extensions Market Share Gains Shift from Ownership To Leasing Sale- Leasebacks Triton Upside Opportunities Strong Secular Trends for the Industry 10%

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CURRENT MARKET OVERVIEW

 COVID-19 shocks having a large impact on trade volumes » China export volumes hit by economic shutdown in Q1 » Expect impact in Q2 to be even larger  Our utilization has so far held up well – 95.1% as of April 30 » Lease portfolio provides strong protections from temporary market changes » Operational challenges slowing flow of containers and customers holding containers for eventual recovery » Demand for refrigerated containers less impacted  Current outlook is uncertain » Drop-off volumes remain moderate, but may come under more pressure » Credit risk is elevated » Expect profitability to decrease from the first to second quarter of 2020 » Trajectory of performance in second half depends on timing and shape of global recovery  Triton is in strong shape to manage through the current challenges and benefit from the eventual recovery » Long-term contracts support strong and stable cash flow » Leverage well below typical levels and significant liquidity available » Ready to supply large numbers of containers from key demand locations when trade recovers

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MARKET CONDITIONS

(10%) (5%) 0% 5% 10% 15% Growth Rate Container Trade Growth Global GDP Growth

Global GDP and Container Trade Growth World Container Fleet and Leasing Share New Dry Container Production

Sources: Shipping and Leasing Factory Inventory estimates provided by commonly used informal surveys by factory inspectors.

Demand Supply

Sources: Container Trade Growth 2005-2016: Alphaliner Monthly Monitor – April 2020. Container Trade Growth 2017-2020E: average of estimates from Alphaliner Monthly Monitor – April 2020 and Clarksons Container Intelligence Monthly – April 2020. GDP Growth: International Monetary Fund, April 2020 World Economic Outlook Update.

0% 10% 20% 30% 40% 50% 60% 10 20 30 40 50 Leasing Company (%) TEU (MM) Leasing Company Owned Shipping Line Owned Leasing (%)

Source: Drewry Container Census & Lease Industry Annual Report 2019/20.

New Dry Factory Inventory

0.0 0.2 0.4 0.6 0.8 1.0 1.2 TEU (in Millions) Leasing Shipping

Source: Drewry Annual Report and data from internal sources Excludes non-leasing and non-shipping

2016 (A): 1.46M TEU 2017 (A): 2.94M TEU 2018 (A): 3.54M TEU 2019 (A): 1.88M TEU 2020 (E): 2.00M TEU Estimated Quarterly Disposals 200,000 400,000 600,000 800,000 1,000,000 1,200,000 China Dry Van New Production Inventory (TEU) Shipping Inventory Leasing Inventory

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70% 75% 80% 85% 90% 95% 100%

Ending Quarterly Utilization (CEU)

40% 60% 80% 100% 120%

Overall Lease Rate Index (CEU)

(100,000) (50,000) 50,000 100,000 150,000 200,000 250,000

Pick-Ups Drop-Offs Net

50% 75% 100% 125% 150% 175% 200% 225%

Used Dry Container Sales Price Index (1)

20' Price Index 40'HC Price Index

TRITON’S KEY OPERATING METRICS

Ending Quarterly Utilization (CEU) Dry Lease Rate Index (CEU)

Dry Container Pick-up / Drop-off Activity (Units) (1)

Used Dry Container Sales Price Index

(1) Excludes Sale-leaseback units.

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FINANCIAL PERFORMANCE

 Triton achieved solid results in the first quarter despite COVID-19 disruptions » Adjusted net income of $67.1 million; $0.93 per share (1) » Q1 annualized return on equity of 13.1%  Triton’s operating metrics holding up well » Utilization still over 95% » New container price quotes over $2,000 per 20’ dry container » Used container selling prices well over residual values » Average lease rates stable  Investment in new containers continues to be limited, but Triton creating value in other ways » Have ordered $263 million of new and sale-leaseback containers for delivery so far in 2020 - about replacement level » Current dividend provides a current yield close to 7% » Repurchased 2.4 million shares in 2020 through April 30th and have repurchased approximately 14% of

  • utstanding shares since program inception in August 2018

(1) Adjusted net income per share is a non-GAAP financial measure. See Appendix.

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CONSOLIDATED STATEMENTS OF ADJUSTED NET INCOME (*)

(*) Adjusted net income is a non-GAAP financial measure. See Appendix. (1) Excludes debt termination expense, and net unrealized loss or gains on derivative instruments. (2) Excludes foreign income tax adjustment and tax benefit from vesting of restricted shares. (3) Adjusted tangible book value defined as Shareholders Equity, less Goodwill plus Net Deferred Tax Liability plus Net Swap Liability, before purchase accounting adjustments.

(In thousands, except earnings per share)

Q1 '20 Q4'19 % Change Q1 '19 % Change Total leasing revenues 321,468 $ 331,176 $ (2.9%) 340,859 $ (5.7%) Trading margin 1,933 2,275 (15.0%) 3,587 (46.1%) Net gain on sale of leasing equipment 4,077 4,857 (16.1%) 8,469 (51.9%) Depreciation and amortization 132,695 132,807 (0.1%) 134,609 (1.4%) Interest and debt expense 68,767 72,664 (5.4%) 82,816 (17.0%) Total ownership costs 201,462 205,471 (2.0%) 217,425 (7.3%) Direct operating expenses 23,248 23,718 (2.0%) 16,802 38.4% Administrative expenses 19,225 19,196 0.2% 18,187 5.7% Provision (reversal) for doubtful accounts 4,279 85 N/A (142) N/A Other (income) expense, net (3,646) (1,210) 201.3% (1,004) 263.1% Income attributable to noncontrolling interest

  • N/A

592 N/A Adjusted pretax income (1) 82,910 91,048 (8.9%) 101,055 $ (18.0%) Income tax expense 5,970 6,909 (13.6%) 7,933 (24.7%) Adjusted net income before preferred dividends (1)(2) 76,940 $ 84,139 $ (8.6%) 93,122 $ (17.4%) Less: dividend on preferred shares 9,825 6,608 48.7% 305 N/A Adjusted net income (1)(2) 67,115 $ 77,531 $ (13.4%) 92,817 $ (27.7%) Adjusted net income per common share 0.93 $ 1.07 $ (13.1%) 1.19 $ (21.8%) Weighted average number of common shares outstanding - diluted 71,798 72,196 (0.6%) 78,270 (8.3%) Return on equity 13.1% 14.6% 17.2% Adjusted tangible book value per share (3) 36.61 $ 36.26 $ 1.0% 34.80 $ 5.2%

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11 $0 $250 $500 $750 $1,000 $1,250 $1,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Mar-20

($MM) Cash Flow Before CapEx

SUBSTANTIAL CASH FLOW DRIVES VALUE AND FINANCIAL STABILITY

(4) All periods exclude purchase accounting adjustments. Net Debt defined as

Total Debt plus Equipment Purchases Payable less Cash and Restricted Cash.

Cash Flow Before CapEx (1)(2)(3)

(1) See Footnote 1 in the Appendix. (2) See Footnote 2 in the Appendix. (3) Reflects purchase accounting adjustments for 2017, 2018 and , 2019 and YTD 2020.

Net Debt as % of REA (Q4’07 – Q1’20) (4)

60% 70% 80% 90% 100% Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Net Debt as % of REA Net Debt as % of REA

Financial Crisis Industrial & Commodity Recession Trade War/ COVID-19/ Pref Shares

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STRONG FINANCIAL POSITION

$0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Rem 2020 2021 2022 2023 2024 ($MM) Principal Debt Obligations CF before Capex LTM 3/31/20

Balance Sheet Liquidity as of 3/31/20 Cash Flow Coverage

($ in mm)

LTM 3/31/20 operating cash flow 1,181 $ Cash on hand 521 $ Remaining borrowing capacity under revolvers 1,313 $ Sources of liquidity 3,015 $ Next twelve months: Principal repayment obligations (827) $ Equipment purchase payable and commitments (163) $ Major cash obligations (990) $ Excess sources 2,025 $ Coverage of major cash obligations 305%

* Pre-purchase accounting is a non-GAAP financial measure. Balance Sheet is combined TCIL and TAL before any purchase accounting adjustments.

(Amount in millions)

Dec-18 Mar-20 Dec-18 Mar-20 Assets: Revenue earning assets 10,009 $ 9,229 $ 9,468 $ 8,785 $ Cash and cash equivalents 160 521 160 521 Accounts receivable 264 213 264 213 Fair value of derivative instruments 14

  • 14
  • Goodwill, intangible and other assets

78 98 364 355 Total assets 10,525 $ 10,061 $ 10,270 $ 9,874 $ Liabilities and equity: Accounts payable and other 123 $ 134 $ 122 $ 133 $ Fair value of derivative instruments 11 153 11 153 Net deferred income tax liability 364 371 282 297 Debt, net of unamortized debt costs 7,538 6,745 7,529 6,741 Total liabilities 8,036 7,403 7,945 7,324 Preferred shareholders' equity

  • 555
  • 555

Common shareholders' equity 2,488 2,104 2,325 1,995 Total liabilities and equity 10,525 $ 10,061 $ 10,270 $ 9,874 $ Net debt as % of REA 74.5% 67.8% 78.6% 71.1%

Pre-Purchase Accounting (* ) Consolidated

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CUSTOMER CONSOLIDATION FAVORS LARGEST SUPPLIERS

Market Dominated by Mega Carriers And Triton Is the Preferred Supplier

 Triton estimates that it has a #1 position with: » 4 of the top 5 carriers » 7 of the top 10 carriers  Top 10 customers have leased containers from the Company for over 30 years on average  Relationships at multiple levels and regions with our customers

Source: Alphaliner Monthly Monitor

TEU (Millions) Market Share 4.2 18% 3.8 16% 2.9 12% 2.6 11% 1.8 7% 1.6 7% 1.2 5% 0.6 3% 0.4 2% 0.4 2% Top 10 19.5 82% 2020

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TRITON’S SCALE PROVIDES COST AND CAPABILITY ADVANTAGES

(1) During the 3 years ended April 30, 2020. (2) Based on FY 2019 financials of a limited number of competitors with publicly-

reported financial results. CAI for container leasing segment only.

Triton leased containers from 258 locations in 66 different countries and sold containers from 372 locations in 87 different countries (1)

Tex CAI

2% 4% 6% 8% 10% 12%

S&A as a Percent

  • f Leasing Revenue (2)

Leasing + Sales Leasing Sales

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WELL-POSITIONED TO WEATHER CURRENT ENVIRONMENT AND TO CREATE LONG-TERM VALUE

 Naturally resilient market with favorable supply / demand and pricing dynamics  Scale, cost, supply capability, and global marketing and

  • perating advantages drive outperformance

 Favorable market dynamics and Triton outperformance sustain high investment ROEs  Numerous market and Triton-specific growth levers support

  • rganic growth at a multiple of global GDP growth

 Long term contracts and short order cycle provides financial stability

Attractive Market Fundamentals Significant Competitive Advantages Compelling Growth Prospects High Investment Returns Stable Cash Flow

 Low leverage due to preferred issuances and reduced capex, and significant available liquidity

Strong Balance Sheet and Liquidity

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Appendix

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ATTRACTIVE FUNDAMENTALS REINFORCED BY TRITON ADVANTAGES

 Strong organic growth across the cycle » Natural exposure to high-growth emerging economies » Trade growth > Global GDP growth most years  Short production timeline limits risk of excess capacity  Assets preserve value as they age » Limited risk of technological

  • bsolescence

» Limited age discrimination » Deep resale market for older containers with strong value retention  Favorable selling dynamics

Triton Advantages Attractive Market Fundamentals

 Low leverage and high liquidity » Ability to weather current crisis and take advantage of market upswings  Cost advantage from scale » S&A ratio below public peers  Extensive and reliable supply capability » Favored supplier status with major lines » Ability to win more than fair share of

  • pportunities and some pricing and

structuring flexibility  Broad marketing and operations infrastructure » High lifetime utilization » High average sale age » Premium used container selling prices

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EQUITY CASH FLOW AFTER MAINTAINING FLEET SIZE (*)

(*) Assumes constant leverage

(In thousands, except per share amounts) LTM March 31, 2020 Adjusted EBITDA $1,201,844 Principal payments on finance leases 71,770 NBV of container disposals 194,198 Major cash in flows 1,467,812 Interest and debt expense 299,885 Annual preferred stock dividends 42,052 Cash flow before capex 1,125,875 Replacement capex (1) 800,185 Steady-state cash flow $325,690 Per share $4.59 Yield (2) 14.8% Common dividends $147,626 Per share $2.08 Yield (2) 6.7% Cash flow available as return of capital or for equity component of growth capex $178,064

(1) Represents depreciation, NBV of disposals and principal payments on finance leases (2) Based on closing stock price of $30.98 on 04/30/2020

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ADJUSTED TANGIBLE BOOK VALUE PER SHARE AS OF 3/31/20

(In thousands, except per share amounts)

Combined Purchase Accounting Consolidated

Total assets 10,061,370 $ (186,980) $ 9,874,390 $ Total liabilities 7,402,551 (78,411) 7,324,140 Preferred shareholders' equity 555,000

  • 555,000

Common shareholders' equity 2,103,819 (108,569) 1,995,250 Total equity 2,658,819 (108,569) 2,550,250 Total liabilities and equity 10,061,370 $ (186,980) $ 9,874,390 $ Common shares outstanding 70,974 Book value per share $28.11 Reconciliation to adjusted tangible book value Common shareholders' equity 2,103,819 $ Less: Goodwill (29,276) Plus: Net deferred tax liability 370,654 Plus: Net swap liability 153,128 Adjusted tangible book value 2,598,325 $ Adjusted tangible book value per share $36.61

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LONG TERM LEASE EXPIRATIONS (*)

Dry

Percent of Fleet 5.5% 3.4% 2.5% 4.5% 5.9% 2.9%

Refrigerated

Percent of Fleet 3.2% 0.8% 2.2% 2.2% 2.0% 1.7%

(*) Excludes sale-age equipment

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RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(1) Annualized Adjusted net income was calculated based on calendar days per quarter. (2) Average Shareholders' equity was calculated using the quarter’s beginning and ending Shareholder’s equity for the three-month ended periods. Average Shareholders’ equity for the full year was calculated using the ending Shareholder’s equity for each quarter and the previous year-end. Average shareholders’ equity excludes preferred shares.

(In thousands, except earnings per share) Q1 '19 Q2 '19 Q3 '19 Q4 '19 2019 Total Q1 '20 Net income attributable to common shareholders 91,914 $ 84,071 $ 85,895 $ 77,161 $ 339,041 $ 67,211 $ Add (subtract): Debt termination expense & unrealized (gain) loss on derivative instruments, net 903 1,872 1,958 435 5,168 294 Foreign income tax adjustment

  • 414

(931)

  • (517)
  • Tax benefit from vesting of restricted shares
  • (1,972)

(65) (2,037) (390) Adjusted net income attributable to common shareholders 92,817 $ 86,357 $ 84,950 $ 77,531 $ 341,655 $ 67,115 $ Adjusted net income per common share - Diluted 1.19 $ 1.15 $ 1.16 $ 1.07 $ 4.57 $ 0.93 $ Q1 '19 Q2 '19 Q3 '19 Q4 '19 2019 Total Q1 '20 Adjusted net income 92,817 $ 86,357 $ 84,950 $ 77,531 $ 341,655 $ 67,115 $ Annualized adjusted net income (1) 376,425 346,377 337,030 307,596 341,655 269,198 Average common shareholders' equity (2) 2,184,361 $ 2,135,817 $ 2,092,294 $ 2,102,608 $ 2,136,109 $ 2,061,244 $ Return on equity 17.2% 16.2% 16.1% 14.6% 16.0% 13.1%

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RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands) LTM Mar 31, 2020 Income before income taxes 362,751 Add: Unrealized loss on derivative instruments 2,418 Debt termination expense 2,573 Adjusted pre-tax income 367,742 Interest and debt expense 299,885 Depreciation and amortization 534,217 Adjusted EBITDA 1,201,844 Principal payments on finance leases 71,770 NBV of container disposals 194,198 Major cash in flows 1,467,812 Interest and debt expense 299,885 Preferred stock dividends (*) 42,052 Cash flow before capex 1,125,875 $ (*) Annual dividend payment on preferred equity Series A of $86.25M @ 8.5%, Series B of $143.75M @ 8.0%, Series C of $175M @ 7.375% and Series D of $150M @ 6.875%

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FOOTNOTES

  • 1. The combined financial information from 2016 and prior periods does not reflect results on a GAAP basis. GAAP financial

statements reflect only the TCIL operations prior to the merger on July 12, 2016, and can be found in the Company’s 10-Q and 10-K filings.

  • 2. Cash Flow Before CapEx defined as Adjusted EBITDA (defined as net income before interest and debt expense, income tax

expense, depreciation and amortization, transaction costs, net loss (gain) on derivative instruments, insurance proceeds, gain

  • n sale of building, debt termination expense, and income attributable to noncontrolling interest) less interest and debt costs

plus NBV of disposals and principal payments on finance leases.