NYSE: GBX May 2019 Investor.Relations@gbrx.com www.gbrx.com
Safe Harbor Statement UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words such as “affirms,” “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 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 that are not indicative of Greenbrier’s financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of Greenbrier’s 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; policies and priorities of the federal government regarding international trade, taxation and infrastructure; sovereign risk to contracts, exchange rates or property rights; 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, costs or inefficiencies associated with expansion, start-up, or changing of production lines or changes in 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 Greenbrier’s insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other railcar 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 Greenbrier’s Annual Report on Form 10-K for the fiscal year ended August 31, 2018, Greenbrier’s Quarterly Report on Form 10-Q for the fiscal quarter ended February 28, 2019, and Greenbrier’s 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, Greenbrier does not assume any obligation to update any forward-looking statements. 1
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. 2
Leading Integrated Transportation Equipment & Service Provider Manufacturing (1) Aftermarkets (1) • Leading manufacturer of • Wheels, Repair & Parts include railcars in North America, eight wheel service locations, Historical Revenue Europe and South America four railcar part reconditioning 3,000 locations, 11 repair locations 2,519 • Leading domestic manufacturer 2,500 of ocean-going barges Leasing & Services (1) $ millions 2,000 • New railcar backlog valued at • Fleet Information $2.7 billion 1,500 ― 7,700 long-term owned units • Marine backlog of ~$95 million 1,000 ― 2,900 short-term owned units provides production visibility 322 ― 372,000 managed units 500 into 2020 - • New railcar orders of 3,800 units, valued at nearly $450 1994 2018 million (IPO) • Announced agreement to acquire the manufacturing business of ARI in a transaction valued at $400 million (1) Data as of 2/28/2019 3
Investment Highlights • Diverse revenue and • North American Drivers • Provides customized Industry Dynamics Unique Strategic Position Strong Financial Profile earnings stream solutions ― Rail cycle driven by current business and • Strong railcar backlog • Transformational industry trends and track record over initiatives create • International Drivers multiple cycles growth platform ― Developing European, • Strong financial Enhanced Leasing ― South American, GCC model performance and Eurasia markets Product & service ― • Continued focus on diversification cash flow, investing in Extensive North ― high return projects American aftermarket and shareholder return repair network • Seasoned Scalable and flexible ― management team across diversified product mix 4
Strategy Leverages Core Skills Core North American Market International Diversification Increase Scale Talent Pipeline 5
ARI Manufacturing Acquisition Announcement
ARI Transaction: Delivering on Our Strategic Commitments GBX Communicated Strategy Acquisition of ARI Manufacturing Assets Grow core North American market Expand international operations Grow at scale in new and existing markets Extend talent base through a deeper talent pipeline The acquisition of ARI’s Manufacturing assets clearly aligns with our communicated strategy and positions us for success in the near-term as well as into the future 7
Strategic Rationale 1 Achieves Growth at Scale in Core North American Market through Expanded Product Offering 2 Improves Production Footprint and Manufacturing Efficiency through Midwest Locations 3 Expands and Deepens Customer Base in Shipper Community 4 Reduces Manufacturing Costs; Improves Efficiency; Diversifies Operations Across America 8
Achieves Growth at Scale in Core North American 1 Market through Expanded Product Offering North American Industry Overview 2017 & 2018 North American Market Deliveries to Third Parties Freight Railcar Builders 2018 N.A. Fleet Total Fleet: 1.65M 2017 2018 12.7% 12.8% 34.4% 8.2% 14,100 15,900 25.3% 6.6% 2019E-2021E N.A. Deliveries Total Projected Deliveries: ~180,000 2,400 2,200 34.6% 18.8% 6.9% 35.1% 0.8% 3.8% Covered Hoppers Open-Top Hoppers Tank Cars Gondolas Box Cars Flat Cars 9 Source: Company filings and presentations, FTR
Improves Production Footprint and Manufacturing 2 Efficiency through Midwest Locations Complementary North American Manufacturing Footprint • Enhances footprint better serving geographically diverse customer base throughout: – Canada – Central U.S. – Southeast/East U.S. (including strong petrochemical markets) • Unlocks new cost-saving opportunities through use of best practices, increased vertical integration, maximizing production runs, including smaller production run capabilities, enhanced purchasing power and lower transportation costs • Castings and axle production provide increased vertical Headquarters integration benefits GBX: Lake Oswego, OR ARI: St. Charles, MO • Strong, highly-skilled workforce with more American jobs GBX Railcar Manufacturing Portland, OR • Opportunity to extend R&D leadership across new Monclova, MX ARI Component Manufacturing product categories Ciudad Sahagun, MX Jackson, MO Tlaxcala, MX Kennet, MO • Benefits including broader product portfolio and enhanced Longview, TX ARI Railcar Manufacturing lease syndication opportunities JV Locations¹ Marmaduke, AR Axis LLC , Paragould, AK Paragould, AR Ohio Castings LLC , Alliance, OH 10 ¹ Not pictured in the map.
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