0 NYSE: GBX November 2014 I nvestor Contact: Investor.Relations@gbrx.com Website: www.gbrx.com
Safe Harbor Statement UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company’s products and services, plans to increase manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, growth in demand for the Company’s railcar services and parts business, and the Company’s future financial performance. Greenbrier uses words such as “anticipates,” “believes,” “forecast,” “potential,” “goal,” “contemplates,” “expects,” “intends,” “plans,” “projects,” “hopes,” “seeks,” “estimates,” “strategy,” “could,” “would,” “should,” “likely,” “will,” “may,” “can,” “designed to,” “future,” “foreseeable future” and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog and awards are not indicative of our financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, inefficiencies associated with expansion or start-up of production lines or increased production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; and issues arising from investigations of whistleblower complaints; all as may be discussed in more detail under the headings "Risk Factors" and “Forward Looking Statements” in our Annual Report on Form 10-K for the fiscal year ended August 31, 2014, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements. 1
Leading Integrated Transportation Equipment & Service Provider Three business segments working together Manufacturing Wheels, Repair & Parts Leasing & Services FY2014 Revenue: $1.62 billion FY2014 Revenue: $496 million FY2014 Revenue: $83 million (74% of Total) (22% of Total) (4% of Total) Owned fleet 8,500 Leading manufacturer of railcars Wheel services and parts in North America and Europe reconditioning at 13 U.S. sites Managed Fleet 238,000 As of August 31, 2014, railcar GBW Railcar Services (50/50 Transitioned to asset light model backlog was 31,500 units valued JV) providing repair services at in FY 2014 at $3.33 billion 38 sites in North America (incl. 14 tank car certified facilities) In September and October 2014, Historical Revenue received orders for 11,400 units $2,400 valued at $1.0 billion $2,000 Leading domestic manufacturer of ocean-going barges. As of $ in millions $1,600 August 31, 2014, marine backlog is valued at approximately $112 $1,200 million. I PO $800 $400 $- 81 84 87 90 93 96 99 02 05 08 11 14 Manufacturing Wheels, Repair & Parts Leasing & Services 2
Integrated Business Model Greenbrier’s integrated business model delivers superior value to customers by creating customized freight car solutions over the entire life of a railcar. Our diversified portfolio of quality products and services enhances our financial performance across the business cycle. 3
Investment Highlights • Robust rail cycle driven by current business and industry trends ‒ Forecasted to continue through 2018 Attractive Industry Dynamics • Broadening product demand • Changing tank car regulatory environment • Greenbrier’s Tank Car of the Future • Unique strategic position provides customized solutions • Integrated business model allows for multiple ways to profit Unique Strategic Position through cycle • Transformational initiatives create growth platform ‒ Enhanced Leasing model ‒ Manufacturing product diversification • Diverse revenue and earnings stream • Solid railcar backlog Strong Financial Profile • Financial trends and outlook • Strategic initiatives drive shareholder value 4
Transportation Industry Dynamics Favor Rail N.A. Freight Traffic Rail four times more fuel efficient 50,000,000 than trucks 45,000,000 Environmental concerns favor rail Rail Carloadings 40,000,000 Highway congestion, regulation and aging highway infrastructure constrain trucking 35,000,000 30,000,000 25,000,000 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F Source: FTR Associates – Rail Equipment Outlook (September 2014) 5
A Robust Cycle Driving New Railcar Demand Drivers: North American Railcar Deliveries Shale oil and gas revolution 90,000 ‒ Changing tank car regulatory 80,000 environment 70,000 Broader growth in: 60,000 ‒ Intermodal 50,000 Units ‒ Automotive loadings 40,000 ‒ Commodities 30,000 20,000 Industry forecasts continue to ‒ Housing exceed the 20 year average of 10,000 50,000 units Slowing railroad velocity 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014F 2015F 2016F 2017F 2018F 2009 2010 2011 2012 2013 Aging fleet Strong railroad balance sheets and capital expenditure budgets Source: FTR Associates – Rail Equipment Outlook (September 2014) 6
Aftermarket Demand Drivers U.S. Rail Ton Miles Wheel demand driven by 1,800,000 stabilizing coal traffic, 1,750,000 crude oil unit trains and intermodal traffic growth 1,700,000 1,650,000 Increasing ton miles and equipment upgrades drive 1,600,000 repair spending 1,550,000 Approaching substantial 1,500,000 tank car maintenance cycle 1,450,000 Changing tank car 1,400,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014F 2015F 2016F 2017F 2018F 2009 2010 2011 2012 2013 regulatory environment Source: FTR Associates – Rail Equipment Outlook (September 2014) 7
Leasing Demand Drivers Historical N.A. Railcar Fleet Strong lease market as Ownership users seek flexibility and 100% financial institutions 90% seek yield 80% 44% 57% 70% 60% 4% Trend of increasing 4% 50% 4% 40% private (“leasing / 30% shipping companies”) 52% 20% 39% railcar ownership 10% expected to continue 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Railroads TTX Private 100% = 1.5 million railcars (2005-1.51 million & 2014-1.52 million) Source: AAR – Railroad Equipment Outlook (August 2014) 8
A Cycle is not a Cycle / All Railcars are not Alike Demand across broadening range of railcars 90,000 Other hoppers / gondolas Coal 80,000 Flat cars (auto) 70,000 Intermodal Tanks 60,000 Boxcar 50,000 Covered hopper Units 40,000 30,000 20,000 10,000 0 2011A 2012A 2013A 2014F 2015F 2016F 2017F 2018F Source: FTR Associates – Rail Equipment Outlook (September 2014) 9
Historical Tank Car Deliveries Tank car deliveries achieved a record level in 2013 35,000 30,000 25,000 20,000 Units 15,000 15 Year Average 10,000 5,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Current strong build reflects crude-by-rail traffic increase. Expected regulatory changes will drive continued high demand. Source: RSI ARCI 10
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