NYSE : GBX F e b rua ry 2016 I nve sto r Co nta c t: I nve sto - - PowerPoint PPT Presentation

NYSE : GBX

F e b rua ry 2016

I nve sto r Co nta c t: I nve sto r.Re la tio ns@ g b rx.c o m We b site : www.g b rx.c o m

Sa fe Ha rb o r Sta te me nt

UNDE R T HE PRI VAT E SE CURI T I E S L I T I GAT I ON RE F ORM ACT OF 1995: T his pre se nta tio n ma y c o nta in fo rwa rd-lo o king sta te me nts, inc luding sta te me nts re g a rding e xpe c te d ne w ra ilc a r pro duc tio n vo lume s a nd sc he dule s, e xpe c te d c usto me r de ma nd fo r the Co mpa ny’ s pro duc ts a nd se rvic e s, pla ns to a djust ma nufa c turing c a pa c ity, re struc turing pla ns, ne w ra ilc a r de live ry vo lume s a nd sc he dule s, c ha ng e s in de ma nd fo r the Co mpa ny’ s ra ilc a r se rvic e s a nd pa rts b usine ss, a nd the Co mpa ny’ s future fina nc ia l pe rfo rma nc e . Gre e nb rie r use s wo rds suc h a s “a ntic ipa te s,” “b e lie ve s,” “fo re c a st,” “po te ntia l,” “g o a l,” “c o nte mpla te s,” “e xpe c ts,” “inte nds,” “pla ns,” “pro je c ts,” “ho pe s,” “se e ks,” “e stima te s,” “stra te g y,” “c o uld,” “wo uld,” “sho uld,” “like ly,” “will,” “ma y,” “c a n,” “de sig ne d to ,” “future ,” “fo re se e a b le future ” a nd simila r e xpre ssio ns to ide ntify fo rwa rd-lo o king sta te me nts. T he se fo rwa rd-lo o king sta te me nts a re no t g ua ra nte e s o f future pe rfo rma nc e a nd a re sub je c t to c e rta in risks a nd unc e rta intie s tha t c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m in the re sults c o nte mpla te d b y the fo rwa rd-lo o king sta te me nts. F a c to rs tha t mig ht c a use suc h a diffe re nc e inc lude , b ut a re no t limite d to , re po rte d b a c klo g a nd a wa rds a re no t indic a tive o f o ur fina nc ia l re sults; unc e rta inty o r c ha ng e s in the c re dit ma rke ts a nd fina nc ia l se rvic e s industry; hig h le ve ls o f inde b te dne ss a nd c o mplia nc e with the te rms o f o ur inde b te dne ss; write -do wns o f g o o dwill, inta ng ib le s a nd o the r a sse ts in future pe rio ds; suffic ie nt a va ila b ility o f b o rro wing c a p a c ity; fluc tua tio ns in de ma nd fo r ne wly ma nufa c ture d ra ilc a rs o r fa ilure to o b ta in o rde rs a s a ntic ipa te d in de ve lo ping fo re c a sts; lo ss o f

• ne o r mo re sig nific a nt c usto me rs; c usto me r pa yme nt de fa ults o r re la te d issue s; so ve re ig n risk to c o ntra c ts, e xc ha ng e ra te s o r

pro pe rty rig hts; a c tua l future c o sts a nd the a va ila b ility o f ma te ria ls a nd a tra ine d wo rkfo rc e ; fa ilure to de sig n o r ma nufa c ture ne w pro duc ts o r te c hno lo g ie s o r to a c hie ve c e rtific a tio n o r ma rke t a c c e pta nc e o f ne w pro duc ts o r te c hno lo g ie s; ste e l o r spe c ia lty c o mpo ne nt pric e fluc tua tio ns a nd a va ila b ility a nd sc ra p surc ha rg e s; c ha ng e s in pro duc t mix a nd the mix b e twe e n se g me nts; la b o r dispute s, e ne rg y sho rta g e s o r o pe ra ting diffic ultie s tha t mig ht disrupt ma nufa c turing o pe ra tio ns o r the flo w o f c a rg o ; pro duc tio n diffic ultie s a nd pro duc t de live ry de la ys a s a re sult o f, a mo ng o the r ma tte rs, c o sts o r ine ffic ie nc ie s a sso c ia te d with e xpa nsio n, sta rt-up o r c ha ng ing o f pro duc tio n line s o r c ha ng e s in pro duc tio n ra te s, c ha ng ing te c hno lo g ie s, tra nsfe r o f pro duc tio n b e twe e n fa c ilitie s o r no n-pe rfo rma nc e o f a llia nc e pa rtne rs, sub c o ntra c to rs o r supplie rs; a b ility to o b ta in suita b le c o ntra c ts fo r the sa le o f le a se d e q uipme nt a nd risks re la te d to c a r hire a nd re sidua l va lue s; inte g ra tio n o f c urre nt o r future a c q uisitio ns a nd e sta b lishme nt o f jo int ve nture s; suc c e ssio n pla nning ; disc o ve ry o f de fe c ts in ra ilc a rs o r se rvic e s re sulting in inc re a se d wa rra nty c o sts

• r litig a tio n; physic a l da ma g e o r pro duc t o r se rvic e lia b ility c la ims tha t e xc e e d o ur insura nc e c o ve ra g e ; tra in de ra ilme nts o r o the r

a c c ide nts o r c la ims tha t c o uld sub je c t us to le g a l c la ims; a c tio ns o r ina c tio ns b y va rio us re g ula to ry a g e nc ie s inc luding po te ntia l e nviro nme nta l re me dia tio n o b lig a tio ns o r c ha ng ing ta nk c a r o r o the r ra il c a r o r ra ilro a d re g ula tio n; a nd issue s a rising fro m inve stig a tio ns o f whistle b lo we r c o mpla ints; a ll a s ma y b e disc usse d in mo re de ta il unde r the he a ding s "Risk F a c to rs" a nd “F

• rwa rd

L

• o king Sta te me nts” in o ur Annua l Re po rt o n F
• rm 10-K

fo r the fisc a l ye a r e nde d Aug ust 31, 2015, a nd o ur o the r re po rts o n file with the Se c uritie s a nd E xc ha ng e Co mmissio n. Re a de rs a re c a utio ne d no t to pla c e undue re lia nc e o n the se fo rwa rd-lo o king sta te me nts, whic h re fle c t ma na g e me nt's o pinio ns o nly a s o f the da te he re o f. E xc e pt a s o the rwise re q uire d b y la w, we do no t a ssume a ny o b lig a tio n to upda te a ny fo rwa rd-lo o king sta te me nts.

1

 F

le e t I nfo rma tio n

• 6,000 lo ng -te rm o wne d units
• 5,300 sho rt-te rm o wne d units
• 252,000 ma na g e d units

Three business units working together

L e a ding I nte g ra te d T ra nspo rta tio n E q uipme nt & Se rvic e Pro vide r

Afte r mar ke ts L e asing & Se r vic e s Manufac tur ing

 Whe e ls & Par

ts – nine whe e l

se rvic e lo c a tio ns a nd fo ur ra ilc a r pa rt re c o nditio ning lo c a tio ns

 GBW R

ailc ar Se r vic e s - 50/ 50 JV

pro vide s re pa ir se rvic e s a c ro ss 33 lo c a tio ns

 L

e a ding ma nufa c ture r o f ra ilc a rs in No rth Ame ric a a nd E uro pe

 L

e ading do me stic manufac tur e r

• f o c e a n-g o ing b a rg e s

 Ne w ra ilc a r b a c klo g o f $4.14

b illio n

 Ma rine b a c klo g o f ~$36 millio n

2

322 2,605

• 500

1,000 1,500 2,000 2,500 3,000 1994 2015 $ millio ns

Histo ric a l Re ve nue

I PO I PO

Da ta a s o f 11/ 30/ 2015

Gre e nb rie r’ s inte g ra te d b usine ss mo de l de live rs supe rio r va lue to c usto me rs b y c re a ting c usto mize d fre ig ht c a r so lutio ns

• ve r the e ntire life o f a ra ilc a r.

Our dive rsifie d po rtfo lio o f q ua lity pro duc ts a nd se rvic e s e nha nc e s

• ur fina nc ia l pe rfo rma nc e

a c ro ss the b usine ss c yc le .

I nte g ra te d Busine ss Mo de l

L e asing and Se r vic e s Whe e ls, R e pair and Par ts

Manufac tur ing

3

I nve stme nt Hig hlig hts

Attractive Industry Dynamics Unique Strategic Position Strong Financial Profile

4

 Ra il c yc le drive n b y

c urre nt b usine ss a nd industry tre nds

 Bro a de ning pro duc t

de ma nd a c ro ss c yc le s

 Cha ng ing ta nk c a r

re g ula to ry e nviro nme nt

 Ma rke t le a de r  Pro vide s c usto mize d

so lutio ns

 T

ra nsfo rma tio na l initia tive s c re a te g ro wth pla tfo rm

• E

nha nc e d L e a sing mo de l

• Pro duc t & se rvic e

dive rsific a tio n

• E

xte nsive No rth Ame ric a n a fte rma rke t re pa ir ne two rk

• Sc a la b le a nd fle xib le

a c ro ss dive rsifie d pro duc t mix

 Dive rse re ve nue a nd

e a rning s stre a m

 Stro ng ra ilc a r

b a c klo g a nd tra c k re c o rd o ve r multiple c yc le s

 Po sitive fina nc ia l

tre nds a nd o utlo o k

 Stra te g ic initia tive s to

drive sha re ho lde r va lue a nd inc re a se d re turn o n sha re ho lde r e q uity

 Se a so ne d

ma na g e me nt te a m

30 35 40 45 50 Car L

• adings (in Millions)

N.A. F r e ight T r affic

T ra nspo rta tio n I ndustry Dyna mic s F a vo r Ra il

Ra il sig nific a ntly mo re

fue l e ffic ie nt tha n truc ks

E

nviro nme nta l c o nc e rns fa vo r ra il

Hig hwa y c o ng e stio n,

drive r sho rta g e , re g ula tio n a nd a g ing hig hwa y infra struc ture c o nstra in truc king

5

So urc e : F T R Asso c ia te s – Ra il E q uipme nt Outlo o k (De c e mb e r 2015)

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F Units

No rth Ame ric a n Ra il Ca r De live rie s

N.A. Railc ar De live r ie s Re tur ning to No r malize d L e ve ls

 Sha le o il a nd g a s re vo lutio n dro ve

de ma nd in e a rly sta g e s o f c yc le ; L

• we r na tura l g a s & liq uid na tura l

g a s pric e s driving e xpa nsio n in c he mic a l a nd pla stic s industrie s, whic h will c re a te a se c o nd wa ve

• f de ma nd

 Cha ng ing ta nk c a r

re g ula to ry e nviro nme nt

 Othe r a re a s o f g ro wth drive n b y

I nte rmo da l a nd a uto mo tive tra ffic

 Ag ing fle e t will drive re pla c e me nt

de ma nd

 Stro ng ra ilro a d b a la nc e she e ts

a nd c a pita l e xpe nditure b udg e ts 6

L

• ng -te rm a ve ra g e :

~50,000 units

So urc e : F T R Asso c ia te s – Ra il E q uipme nt Outlo o k (De c e mb e r 2015)

No rth Ame ric a n De ma nd Aro und L

• ng -te rm Ave ra g e

7

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2011A 2012A 2013A 2014A 2015A 2016F 2017F 2018F 2019F Co ve re d ho ppe r Bo xc a r T a nks I nte rmo da l F la t c a rs (a uto ) Co a l Othe r ho ppe rs / g o ndo la s

L

• ng -te rm a ve ra g e :

~50,000 units

So urc e : F T R Asso c ia te s – Ra il E q uipme nt Outlo o k (De c e mb e r 2015)

1.35 1.45 1.55 1.65 1.75 1.85 1.95

Millions

U.S. R ail T

• n-mile s

Afte rma rke t De ma nd Drive rs

So urc e : F T R Asso c ia te s – Ra il E q uipme nt Outlo o k (De c e mb e r 2015)

8  Whe e l de ma nd drive n b y ra il to n-mile s  T

• n-mile s a nd e q uipme nt

upg ra de s drive re pa ir spe nding

 Appro a c hing sub sta ntia l

ta nk c a r ma inte na nc e c yc le

 Cha ng ing ta nk c a r

re g ula to ry e nviro nme nt

Upda te d Re tro fit / Pha se -Out T ime line

9

So urc e : Bra ttle Gro up 2014, DOT PHMSA

30,106 21,993 27,876 35,431† 39,122

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Ma rc h-2018 2019 April-2020 2021 2022 July-2023 2024 Ma y-2025 Ma y-2029

Update d T ank Car Phase -Out / R e tr

• fit T

ime line *

Othe r F la mma b le E tha no l Crude

Car s

Ja c ke te d

CPC-1232 DOT

• 111

*F le e t pe r Bra ttle Gro up e nd o f 2015 e stima te s; Ca na da ha s o the r fla mma b le still sc he dule d fo r 2025 a nd a n e a rlie r sta rt fo r c rude in 2017.

†I

nc lude s 23 CPC-1232 Ja c ke te d E tha no l ra ilc a rs Othe r F la mma b le s time line shifte d fro m 2025 to 2029

L e a sing & Se rvic e s De ma nd Drive rs

 Use rs se e k fle xib ility  F

ina nc ia l institutio ns se e k yie ld

 T

re nd o f inc re a sing priva te (“le a sing / shipping c o mpa nie s”) ra ilc a r

• wne rship e xpe c te d to c o ntinue

 Cre a te s o ppo rtunity fo r pa rtne ring , se rvic e c o ntra c ts a nd e nha nc e d

ma rg ins 10

So urc e : AAR – Ra ilro a d E q uipme nt Outlo o k (Aug ust 2014)

52% 4% 44%

2005

Ra ilro a ds T T X Priva te

39% 4% 57%

2014

Ra ilro a ds T T X Priva te

Histo ric a l N.A. Ra ilc a r F le e t Owne rship

Uniq ue Stra te g ic Po sitio n

11

Histo ry o f Qua lity a nd I nno va tio n

 T

T X e xc e lle nt supplie r a wa rd fo r 21 ye a rs

 Ne w Ra ilc a r Ma nufa c turing – Dive rsifie d

pro duc t po rtfo lio c a r type s; pro prie ta ry c a r type s

 Whe e ls & Pa rts – de ve lo ping te sting a nd

inspe c tio n inno va tio ns to a dva nc e sa fe ty & q ua lity o f whe e ls a nd a xle s

 Re pa ir – ta nk c a r re tro fits, re purpo sing o f ra ilc a rs  L

e a sing & Se rvic e s – E nha nc e d syndic a tio n mo de l, pro prie ta ry fle e t ma inte na nc e a nd ma na g e me nt so lutio ns a nd c a pa b ilitie s

12

T ra nsfo rma tio na l I nitia tive s Cre a te Dive rsifie d Gro wth Pla tfo rm…



Impr

• ve s c ompe titive position due to dive rse pro duc t mix a t

lo we r-c o st, fle xib le ma nufa c turing fa c ilitie s



Dive r sifie s busine ss mix b y e xpa nding re pa ir a nd whe e l

ma inte na nc e b usine ss - la rg e a fte rma rke t b usine ss pro vide s sta b ility thro ug ho ut b usine ss c yc le s



E nhanc e s le asing ac tivitie s, c a pturing mo re va lue thro ug ho ut

the ra ilc a r life c yc le



E xpands available mar ke t b y inc re a sing thro ug hput a nd

dive rsifying pro duc t po rtfo lio while ma inta ining the q ua lity c usto me rs de ma nd



E xpands ge ogr aphic r e ac h into ne w inte rna tio na l ma rke ts

with re c e nt e ntrie s into Bra zil a nd Sa udi Ara b ia

Gr e e nbr ie r is we ll-positione d to be ne fit fr

• m nume r
• us tailwinds. Our

dive r sifie d busine ss mode l insulate s Gr e e nbr ie r fr

• m any major

pote ntial he adwinds.

13

$749 $2,136

$102 $371

$92 $98

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

2006 2015

$ in millions (% of T

• tal R

e ve nue )

L e a sing & Se rvic e s W&P Ma nufa c turing

14

$943

$2,605

(10%) (11%) (79%) (4%) (82%) (14%) GBX, 13% AR I, 21% R AIL , 14% T R N, 36% Othe r s,16% 0% 20% 40% 60% 80% 100%

100% = 88,116 units

Se pte mbe r 30, 2006

GBX, 30% Othe r s, 70%

100% = 111,019 units

De c e mbe r 31, 2015 R e ve nue

F Y 2016

Guidanc e to e xc e e d $2.8 billion

Nor th Ame r ic an Industr y Bac klog

Re sulting in Re ve nue a nd Sha re Gro wth

So urc e : RSI ARCI (Ja nua ry 2016)

Dive rse Ra ilc a r Ba c klo g ($ in millio ns e xc e pt pe r unit va lue s)

Bac klog Units

14,700 12,100 16,200 13,400 5,300 15,400 10,700 14,400 31,500 41,300 36,000

I n F Y 2016, thro ug h Ja nua ry 6, 2016, Gre e nb rie r re c e ive d o rde rs fo r 2,600 ra ilc a r units va lue d a t ne a rly $250 millio n.

15

$1,000 $830 $1,440 $1,160 $420 $1,230 $1,200 $1,520 $3,330 $4,710 $4,140

$68 $69 $89 $87 $79 $80 $112 $106 $106 $114 $115 $- $20 $40 $60 $80 $100 $120 $140 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Aug . 06 Aug . 07 Aug . 08 Aug . 09 Aug . 10 Aug . 11 Aug . 12 Aug . 13 Aug . 14 Aug . 15 No v. 15

Ave ra g e Sa le s Pric e / Unit ($ in tho usa nds) Ba c klo g Va lue ($ in millio ns)

Pr

• vide s Str
• ng E

ar nings Visibility

Ba c klo g va lue o ve r 4.0x hig he r tha n prio r industry pe a k

$5.93

$(1.00) $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2010 2011 2012 2013 2014 2015

Adjuste d E PS

(1)

21.1

0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 2010 2011 2012 2013 2014 2015

De live rie s (U

nits)

Co nso lida te d F ina nc ia l T re nds ($ in millio ns)

(1) Adjuste d E PS & Adjuste d E BI T DA e xc lude Go o dwill impairme nt, Re struc turing c ha rg e s a nd o the r Spe c ia l I te ms. (2) Ne t de b t is de fine d a s Gro ss de b t plus de b t disc o unt le ss Ca sh (3) With c urre nt pro duc tio n pla ns a nd e xisting L e a se d Ra ilc a rs fo r Syndic a tio n, o ve r 90% o f F Y16 de live rie s a re firm

F Y 2016 De live r ie s = ~20,000-22,500 units(3) F Y 2016 De live r ie s = ~20,000-22,500 units(3) F Y 2016 Guidanc e = $5.65-6.15 F Y 2016 Guidanc e = $5.65-6.15 We e xpe c t the positive tr e nd to c ontinue in F Y 2016 We e xpe c t the positive tr e nd to c ontinue in F Y 2016

16

5.5x 4.6x 2.7x 2.0x 1.1x

0.5x

0.0x 2.0x 4.0x 6.0x 8.0x 2010 2011 2012 2013 2014 2015

Ne t De b t(2) to Adj. E BI T DA(1)

$2,605

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2010 2011 2012 2013 2014 2015

Re ve nue

F Y 2016 R e ve nue = Gr e ate r than $2.8 billion F Y 2016 R e ve nue = Gr e ate r than $2.8 billion

Curre nt F inanc ial Go als

F

• c us Ar

e a Goal

Gro ss Ma rg in E nha nc e me nt Ag g re g a te g ro ss ma rg in o f a t le a st 20% b y the se c o nd ha lf o f F Y 2016 Ca pita l E ffic ie nc y Re turn o n I nve ste d Ca pita l (“ROI C”) o f a t le a st 25% fo r the se c o nd ha lf o f F Y 2016 17

17.8% 19.9% 20.9% 22.8% 23.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Aggr e gate Gr

• ss Mar

gin

11.1% 19.6% 21.3% 23.7% 34.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

R e tur n on Inve ste d Capital

$105 $192 $299 $304 $321 $268 $289 $99 $50 $54 $97 $185 $173 $198 $204 $242 $353 $401 $506 $441 $487

2010 2011 2012 2013 2014 2015 L T M 11/ 30/ 2015

Bo rro wing Ava ila b ility Ca sh

5.5x 4.6x 2.7x 2.0x 1.1x 0.5x 0.7x

0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x

2010 2011 2012 2013 2014 2015 L T M 11/ 30/ 2015

Stro ng Ba la nc e She e t a nd L iq uidity Pro vide F le xib ility

Ne t F unde d De bt

(2) / Adjuste d E

BIT DA

(1)

L iquidity Summar y ($ in millions)

18

(1) Adjuste d E BI T DA e xc lude g a in o n c o ntrib utio n to GBW, re struc turing c ha rg e s, g o o dwill impa irme nt a nd o the r spe c ia l ite ms (2) Ne t de b t is de fine d a s funde d de b t le ss c a sh

Ba la nc e d Appro a c h to Ca pita l De plo yme nt

 Org a nic a lly in hig h ROI

C pro je c ts

 Stra te g ic a lly in c o re c o mpe te nc ie s  Sha re ho lde r frie ndly a c tio ns

• Ne a rly $145 millio n in c a pita l re turne d to sha re ho lde rs

thro ug h divide nds a nd sha re re purc ha se sinc e Oc to b e r 2013

19

Str

• ng balanc e

sheet and po sitive fr ee c ash flo w tr end

Clear Path to Gr

• wth and Shar

eho lder Value

Pr

• duc t and

c usto mer diver sity pr

• vides visibility

U nique mo del that enhanc es financ ial per fo r manc e ac r

• ss the c yc le,

with po wer ful c r

• ss

selling o ppo r tunities I nitiatives to impr

• ve gr
• ss

mar gins and c apital effic ienc y

Solid R ailc ar Bac klog Dive r sifie d R e ve nue Str e ams Str

• ng

Balanc e She e t & L iquidity Str ate gic Initiative s 20

Appe ndix

1Q F Y 2016 K e y Me tric Hig hlig hts

22

41,200 46,000 45,100 41,300

36,000 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Bac klog

4,000 5,200 5,700 6,200

6,900 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

T

• tal De live r

ie s

1,800 1,700 1,000 2,200

1,700 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Syndic ate d De live r ie s

 Ba c klo g 36,000 units va lue d a t $4.14

b illio n

• Dive rse b a c klo g re fle c ts a b ro a d ra ng e o f

c a rtype s inc luding b o xc a rs, me dium-c ub e d c o ve re d ho ppe rs, no n-e ne rg y ta nk c a rs, inte rmo da l, g o ndo la c a rs a nd a uto mo tive c a rrying ra ilc a rs

• E

ne rg y re la te d c rude ta nk c a rs a nd sma ll- c ub e d c o ve re d ho ppe r ra ilc a rs c o mprise a b o ut 27% o f b a c klo g

 Re c o rd de live rie s o f 6,900 units

inc luding syndic a tio n a c tivity o f 1,700 units

1Q F Y 2016 I nc o me Sta te me nt Hig hlig hts

23

$495.1 $630.1 $714.6 $765.5

$802.4 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

R e ve nue ($ millions)

$67.2 $102.7 $116.3 $147.6

$161.8 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Adjuste d E BIT DA ($ millions)

$1.01 $1.57 $1.33 $2.02

$2.15 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Dilute d E PS

 Re c o rd re ve nue to $802.4 millio n  Gro ss ma rg in to 23.0%  Re c o rd a djuste d E

BI T DA to $161.8 millio n

• Adjuste d E

BI T DA ma rg in o f 20.2%

• I

nc re a se d de live rie s a nd ma rg in g ro wth

 Re c o rd Dilute d E

PS to $2.15

 Re sults drive n b y:

• Ro b ust de live rie s
• Stro ng le a se syndic a tio n a c tivity
• Co ntinue d o pe ra ting e ffic ie nc ie s

1Q F Y 2016 Ba la nc e She e t & Ca sh F lo w Hig hlig hts

24

$(53.8) $46.0 $37.4 $162.7 $(63.5)

1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Ope r ating Cash F low ($ millions)

$31.7 $24.1 $45.3 $31.3

$(24.6) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Ne t Capital E xpe nditur e & Inve st. In Unc onsol. Affiliate s(1) ($ millions)

$370.9 $386.4 $316.0 $204.4

$290.9 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Ne t F unde d De bt ($ millions)

 Ope ra ting Ca sh F

lo w b e ne fite d fro m hig he r e a rning s, o ffse t b y wo rking c a pita l ne e ds inc luding ~4,000 ra ilc a r po rtfo lio a c q uisitio n

• E

xpe c t stro ng o pe ra ting c a sh flo w in F Y 2016

 Sixth stra ig ht q ua rte rly divide nd a nd se c o nd

stra ig ht q ua rte rly divide nd o f $0.20 pe r sha re

 Re purc ha se d ro ug hly 521k sha re s o f

c o mmo n sto c k a t a c o st o f $19.1 millio n during the q ua rte r

 Ne a rly $145 millio n o f c a pita l re turne d to

sha re ho lde rs thro ug h divide nds a nd sha re re purc ha se s sinc e Oc to b e r 2013

 Ne t F

unde d De b t re ma ins b e lo w $300 millio n re fle c ting stro ng b a la nc e she e t

 Ava ila b le liq uidity e xc e e ds $485 millio n

(1)I

nve stme nt in Unc o nso lida te d Affilia te s inc lude d to re fle c t ne t inve stme nts in unc o nso lida te d jo int ve nture s

T wo Wa ys to Se ll Ne w Ra ilc a rs

Dir e c t Sale s

 Custo me r o rde rs ra ilc a r to b uy a nd use  We b uild ra ilc a r a nd de live r it to

c usto me r

 Re ve nue re c o g nize d in Ma nufa c turing

se g me nt

L e ase Syndic ation

 Custo me r o rde rs ra ilc a r to le a se  We b uild ra ilc a r a nd le a se it  Ra ilc a rs he ld te mpo ra rily o n b a la nc e she e t

g e ne ra ting inte rim le a se inc o me fo r GBX

• Ca lle d “L

e a se d ra ilc a rs fo r syndic a tio n” o n Ba la nc e She e t

• “I

nte rim” le a se inc o me re c o g nize d in L e a sing & Se rvic e s se g me nt

 Ra ilc a rs a g g re g a te d a nd so ld (“syndic a te d”)

to multiple third pa rty inve sto rs (no n-re c o urse to GBX)

• Sa le s pric e pre mium o ve r dire c t sa le fro m a tta c he d

le a se

• Re ve nue fro m sa le re c o g nize d in Ma nufa c turing

se g me nt

 L

• ng te rm Ma na g e me nt fe e s e a rne d fro m

inve sto rs o n ra ilc a rs a fte r syndic a tio n

• Re ve nue re c o g nize d in L

e a sing & Se rvic e s se g me nt

25

Dir e c t L e ase

L e a sing & Se rvic e s Supple me nta l I nfo rma tio n

F le e t Infor mation

U nits No v. 30, 2014 F e b . 28, 2015 Ma y 31, 2015 Aug . 31, 2015 No v. 30, 2015 L

• ng -te rm o wne d units

(“E q uipme nt o n o pe ra ting le a se ”) 6,600 6,400 6,300 6,500 6,900 Sho rt-te rm o wne d units (“L e a se d ra ilc a rs fo r syndic a tio n”) 1,900 1,900 2,500 2,800 5,300 T

• ta l o wne d fle e t

8,500 8,300 8,800 9,300 12,200 Ma na g e d fle e t (units) 238,000 241,000 245,000 260,000 252,000

Owne d & Manage d F le e t

 Owne d E

q uipme nt o n o pe ra ting le a se ‘ rig ht-size d’

• ve r la st fe w ye a rs
• Additio na l mo ne tiza tio n wo uld b e ta x ine ffic ie nt

with o ve r $60 millio n o f De fe rre d T a xe s re la te d to the L e a se fle e t

• Se c ure s L

e a sing te rm lo a n o f $190 millio n

 Manage d fle e t se rvic e s inc lude ra ilc a r

re ma rke ting , ma inte na nc e ma na g e me nt, c a r hire a c c o unting a nd va rio us o the r se rvic e s

• Ma na g e d fle e t ha s g ro wn o ve r 14% o ve r la st 3 ye a rs

a s Syndic a tio n vo lume inc re a se d

• Ac c o unts fo r ~16% o f No rth Ame ric a n ra ilc a r fle e t
• Ac q uire d po rtfo lio mo ve d fro m ma na g e d to sho rt

te rm o wne d units in Q1 2016

L e ase Syndic ation Mode l

 Almo st $700 millio n o f Syndic a tio n vo lume in

F Y 2015 (re po rte d in Ma nufa c turing se g me nt)

 One o f two c ha nne ls to ma rke t  Dwe ll time o f re nt pro duc ing ra ilc a rs o n

b a la nc e she e t (“L e a se d ra ilc a rs fo r syndic a tio n”) a ve ra g e s 3 mo nths, a s ra ilc a r le a se s a re a g g re g a te d a nd so ld in b undle s to inve sto rs

 I

n a dditio n to pre mium pric ing a b o ve dire c t sa le s, c re a te s stre a m o f multi-ye a r ma na g e me nt fe e inc o me

 E

xpa nds c usto me r unive rse b e yo nd Gre e nb rie r’ s tra ditio na l b a se

26

Ma nufa c turing

Quar te r ly T r e nds Quar te r ly T r e nds R e ve nue and Gr

• ss Mar

gin % R e ve nue and Gr

• ss Mar

gin % F Y 16 Outlook F Y 16 Outlook

• Se q ue ntia l re ve nue g ro wth drive n b y hig he r

de live rie s

• Ma rg in inc re a se re fle c ts impro ve d e ffic ie nc ie s

a nd fa vo ra b le pro duc t mix a nd pric ing

• Ma rine b a c klo g a s o f No ve mb e r 30, 2015

to ta le d a ppro xima te ly $36 millio n

• F

ina nc ia l pe rfo rma nc e will c o ntinue re fle c ting stro ng de live rie s utilizing o ur fle xib le , lo we r c o st fo o tprint.

• Ca pita l e xpe nditure s a re e xpe c te d to b e

a ppro xima te ly $55 millio n in F Y 2016, prima rily re la te d to ma inte na nc e a nd e ffic ie nc y e nha nc e me nts o f o ur e xisting fa c ilitie s.

($ in millio ns) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 Re ve nue s $379.9 $505.2 $ 593.4 $ 657.5 $ 698.7 Gro ss Ma rg in $63.9 $102.0 $127.7 $151.0 $165.6 Gro ss Ma rg in % 16.8% 20.2% 21.5% 23.0% 23.7% Ope ra ting Ma rg in % 13.7% 18.0% 19.5% 21.0% 22.0% Ca pita l E xpe nditure s $21.5 $19.5 $19.7 $23.7 $13.4 Ne w Ra ilc a r Ba c klo g $4,200 $4,780 $4,860 $4,710 $4,140 Ne w Ra ilc a r Ba c klo g (units) 41,200 46,000 45,100 41,300 36,000 De live rie s (units) 4,000 5,200 5,700 6,200 6,900

1Q Busine ss Conditions 1Q Busine ss Conditions

27

0% 4% 8% 12% 16% 20% 24% $- $0.4 $0.8 $1.2 $1.6 $2.0 $2.4

2010 2011 2012 2013 2014 2015 L T M 11/ 30/ 15

$ in Millio ns Re ve nue Gro ss Ma rg in

Whe e ls & Pa rts

Quar te r ly T r e nds Quar te r ly T r e nds R e ve nue and Gr

• ss Mar

gin % (1) R e ve nue and Gr

• ss Mar

gin % (1) F Y 16 Outlook F Y 16 Outlook

• Re ve nue de c re a se due to lo we r whe e l a nd

c o mpo ne nt vo lume s

• Ma rg in de c re a se re fle c ts lo we r whe e l a nd

c o mpo ne nt vo lume s a nd lo we r sc ra p pric e s

• Ca pita l e xpe nditure s a re e xpe c te d to b e

a ppro xima te ly $9.0 millio n in F Y 2016 re la te d to ma inte na nc e a nd e nha nc e me nts o f o ur e xisting fa c ilitie s

1Q Busine ss Conditions 1Q Busine ss Conditions

28

($ in millio ns) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 Re ve nue s $86.6 $102.6 $97.4 $84.6 $78.7 Gro ss Ma rg in $9.8 $9.9 $7.8 $9.2 $5.7 Gro ss Ma rg in % 11.3% 9.6% 8.0% 10.8% 7.3% Ope ra ting Ma rg in % 9.2% 7.8% 5.2% 7.8% 4.3% Ca pita l E xpe nditure s $1.8 $1.7 $1.6 $4.3 $1.0 0% 2% 4% 6% 8% 10% 12% $- $100 $200 $300 $400 $500 $600

2010 2011 2012 2013 2014 2015 L T M 11/ 30/ 15

$ in T ho usa nds Re ve nue Gro ss Ma rg in

(1) Histo ric a l re sults inc lude le g a c y Re pa ir o pe ra tio ns

whic h we re c o ntrib ute d to GBW Ra ilc a r JV in July 2014

L e a sing & Se rvic e s

Quar te r ly T r e nds R e ve nue and Gr

• ss Mar

gin % F Y 16 Outlook

• Re ve nue inc re a se prima rily due to hig he r vo lume
• f ma inte na nc e ma na g e me nt ra ilc a rs
• Ma rg in % de c re a se prima rily due to tra nspo rta tio n

a nd sto ra g e c o sts

• Ac q uire d dive rsifie d po rtfo lio o f ~4,000 le a se d

ra ilc a rs with the inte nt to se ll (syndic a te ) the m

• L

e a se fle e t utiliza tio n impa c te d b y ta nk c a rs a nd re c e nt po rtfo lio a c q uisitio n; utiliza tio n is 97% e xc luding the se ite ms

• Syndic a tio n a c tivity to drive stro ng inte rim re nt a nd

g ro wth in ma na g e me nt se rvic e s

• Ca pita l e xpe nditure s (inc luding c o rpo ra te

e xpe nditure s)a re e xpe c te d to b e ~$30.0 millio n in F Y

• 2016. Pro c e e ds fro m sa le s o f le a se d ra ilc a r

e q uipme nt a re e xpe c te d to b e ~$85.0 millio n fo r 2016(1)

• E

xpe c t to la rg e ly c o mple te ~4,000 ra ilc a r po rtfo lio syndic a tio n in 2Q/ 3Q

1Q Busine ss Conditions

29

($ in millio ns) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 Re ve nue s $28.5 $22.3 $23.8 $23.4 $25.0 Gro ss Ma rg in $14.4 $13.4 $13.8 $14.5 $13.4 Gro ss Ma rg in % 50.6% 60.3% 58.0% 62.0% 53.6% Ope ra ting Ma rg in % 38.8% 44.1% 45.4% 43.6% 39.8% Net Capi tal E xpendi tur es $5.9 $0.5 ($0.8) $1.3 ($40.2) L ease F l eet U ti l i zati

• n

98.1% 99.5% 97.6% 96.6% 89.0% 0% 10% 20% 30% 40% 50% 60% 70% $- $20 $40 $60 $80 $100

2010 2011 2012 2013 2014 2015 L T M 11/ 30/ 15

$ in T ho usa nds Re ve nue Gro ss Ma rg in

(1) Pro c e e ds fro m sa le o f a sse ts inc lude d ~$31.6 millio n o f e q uipme nt

tra nsfe rre d fro m L e a se d ra ilc a rs fo r syndic a tio n to E q uipme nt o n

• pe ra ting le a se s, ne t a nd so ld pursua nt to a sa le le a se b a c k.

GBW Ra ilc a r Se rvic e s

(1)

Quar te r ly T r e nds R e ve nue F Y 16 Outlook

• Re ve nue g ro wth re fle c ts impro ve d thro ug hput a nd

mo de stly hig he r re tro fit vo lume

• Se q ue ntia l impro ve me nt e xpe c te d thro ug ho ut fisc a l

ye a r, re fle c ting impro ving o pe ra ting e ffic ie nc ie s a nd inc re a se d ta nk c a r re c e rtific a tio n a nd re tro fit a c tivity

1Q Busine ss Conditions

30

($ in millio ns) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16

Re ve nue s

$82.5 $83.3 $88.8 $95.2 $96.0

E a rning s fro m

• pe ra tio ns

$0.3 ($2.0) $0.2 $0.3 $2.4

T

• ta l a sse ts

$231.3 $217.4 $230.1 $239.9 $245.7

$- $100 $200 $300 $400

2015 L T M 11/ 30/ 15

$ in millio ns

(1)GBW Ra ilc a r Se rvic e s re fle c te d in the “E

a rning s fro m Unc o nso lida te d Affilia te s” line o n the inc o me sta te me nt

Rule De ta ils: Ne w Ca r & Re tro fit Sta nda rds



All ne w ta nk c a rs c a rrying Cla ss 3 fla mma b le s b uilt afte r

Oc tobe r 1, 2015 a re re q uire d to me e t DOT

• 117P (Pe r

for manc e ) spe c ific ation



All ta nk c a rs b uilt pr

ior to Oc tobe r 1, 2015 a re re q uire d to me e t DOT

• 117R

(R e tr

• fit) spe c ific ation

(sa me a s DOT

• 117P e xc e pt 7/ 16” ta nk she ll pe rmitte d) o n pre sc rib e d 2-10 ye a r sc he dule

31

So urc e : DOT PHMSA, GBX Inte rna l

Ca r Owne r Optio ns

32

Re pla c e

• r

Re tro fit

33

13

Gr e e nbr ie r Annual Manufac tur ing Capac ity = 7,000 – 8,000 tank c ar s GBW Annual R e tr

• fit Capac ity = 2,000 – 3,000

tank c ar s at 13 c e r tifie d tank c ar shops, inc luding at le ast 5 de dic ate d r e tr

• fit loc ations

No rth Ame ric a n Se rvic e Co ve ra g e

33

Qua rte rly Adjuste d E BI T DA Re c o nc ilia tio n

Supple me ntal Disc losur e

R e c onc iliation of Ne t E ar nings to Adjuste d E BIT DA

(I n millio ns, unaudite d)

Quar te r E nding

No v. 30, 2014 F e b . 28, 2015 Ma y 31, 2015 Aug . 31, 2015 No v. 30, 2015 Ne t e a rning s $36.0 $61.0 $70.3 $98.0 $98.7 I nte re st a nd fo re ig n e xc ha ng e 3.1 1.9 4.3 1.8 5.4 I nc o me ta x e xpe nse 16.1 29.4 30.8 35.9 44.7 De pre c ia tio n a nd a mo rtiza tio n 12.0 10.4 10.9 11.9 13.0

Adjuste d E BIT DA $67.2 $102.7 $116.3 $147.6 $161.8

Se e slide 37 fo r de finitio n o f Adjuste d E BI T DA

34

Annua l Adjuste d E BI T DA Re c o nc ilia tio n

Supple me ntal Disc losur e

R e c onc iliation of Ne t E ar nings (loss) to Adjuste d E BIT DA

(I n millio ns, unaudite d)

Ye ar E nding August 31, 2010 2011 2012 2013 2014 2015

Ne t e a rning s (lo ss) $8.3 $8.4 $61.2 ($5.4) $149.8 $265.3 I nte re st a nd fo re ig n e xc ha ng e 45.2 37.0 24.8 22.2 18.7 11.2 I nc o me ta x e xpe nse (b e ne fit) (0.9) 3.5 32.4 25.1 72.4 112.2 De pre c ia tio n a nd a mo rtiza tio n 37.5 38.3 42.4 41.4 40.4 45.1 Go o dwill impa irme nt

• 76.9
• Ga in o n c o ntrib utio n to GBW
• (29.0)
• L
• ss (g a in) o n de b t

e xting uishme nt (2.1) 15.7

• Spe c ia l ite ms

(11.9)

• 2.7

1.5

• Adjuste d E

BIT DA $76.1 $102.9 $160.8 $162.9 $253.8 $433.8

Se e slide 37 fo r de finitio n o f Adjuste d E BI T DA

35

Annua l Adjuste d E PS Re c o nc ilia tio n

Ye ar E nding August 31, 2010 2011 2012 2013 2014 2015

Net ear nings(l

• ss) attr

ibutabl e to Gr eenbr ier $4.3 $6.5 $58.7 ($11.1) $111.9 $192.8 Go o dwill impa irme nt (a fte r-ta x)

• 71.8
• Ga in o n c o ntrib utio n to GBW

(a fte r-ta x)

• (13.6)
• L
• ss (gai

n) on debt exti ngui shment (after

• tax)

(1.3) 9.4

• Spe c ia l ite ms (a fte r-ta x)

(11.9)

• 1.8

1.0

• Adjuste d Ne t E

a rning s (lo ss) ($8.9) $15.9 $58.7 $62.5 $99.3 $192.8 Wei ghted aver age di l uted shar es

• utstandi

ng 20.2 26.5 33.7 34.2 34.2 33.3

Adjuste d E PS ($0.44) $0.60 $1.91 $2.00 $3.07 $5.93

Se e slide 37 fo r de finitio n o f Adjuste d E PS

Supple me ntal Disc losur e

R e c onc iliation of Ne t E ar nings (loss) Attr ibutable to Gr e e nbr ie r to Adjuste d Ne t E ar nings (loss) (I n millio ns, e xc e pt pe r share amo unts, unaudite d)

36

Adjuste d F ina nc ia l Me tric De finitio n

Adjuste d Ne t E a rning s (lo ss), Adjuste d E BI T DA, a nd Adjuste d E PS a re no t fina nc ia l me a sure s unde r g e ne ra lly a c c e pte d a c c o unting princ iple s (GAAP). We de fine Adjuste d Ne t E a rning s (lo ss) a s Ne t E a rning s (lo ss) a ttrib uta b le to Gre e nb rie r b e fo re g o o dwill impa irme nt (a fte r-ta x), g a in o n c o ntrib utio n to GBW (a fte r-ta x), lo ss (g a in) o n de b t e xting uishme nt (a fte r-ta x) a nd spe c ia l ite ms (a fte r-ta x). We de fine Adjuste d E BI T DA a s Ne t e a rning s (lo ss) b e fo re inte re st a nd fo re ig n e xc ha ng e , inc o me ta x e xpe nse (b e ne fit), g o o dwill impa irme nt, g a in o n c o ntrib utio n to GBW, lo ss (g a in) o n de b t e xting uishme nt, spe c ia l ite ms, de pre c ia tio n a nd a mo rtiza tio n. We de fine Adjuste d E PS a s Adjuste d Ne t E a rning s (lo ss) b e fo re inte re st a nd de b t issua nc e c o sts (ne t o f ta x) o n c o nve rtib le no te s divide d b y We ig hte d a ve ra g e dilute d sha re s o utsta nding . We de fine Re turn o n I nve ste d Ca pita l a s E a rning s fro m Ope ra tio ns le ss Ca sh pa id fo r I nc o me ta xe s, whic h is the n a nnua lize d a nd divide d b y the sum o f a ve ra g e Re vo lving no te s plus No te s pa ya b le plus T

• ta l e q uity le ss Ca sh in e xc e ss o f $40 millio n o pe ra ting c a sh, whic h is

a ve ra g e d b a se d o n the q ua rte rly e nding b a la nc e s. Adjuste d Ne t E a rning s (lo ss), Adjuste d E BI T DA, a nd Adjuste d E PS a re pe rfo rma nc e me a sure me nt to o ls use d b y ra il supply c o mpa nie s a nd Gre e nb rie r. Yo u sho uld no t c o nside r Adjuste d Ne t E a rning s (lo ss), Adjuste d E BI T DA, a nd Adjuste d E PS in iso la tio n o r a s a sub stitute fo r o the r fina nc ia l sta te me nt da ta de te rmine d in a c c o rda nc e with GAAP. I n a dditio n, b e c a use Adjuste d Ne t E a rning s (lo ss), Adjuste d E BI T DA a nd Adjuste d E PS a re no t me a sure s o f fina nc ia l pe rfo rma nc e unde r GAAP a nd a re susc e ptib le to va rying c a lc ula tio ns, the se me a sure s pre se nte d ma y diffe r fro m a nd ma y no t b e c o mpa ra b le to simila rly title d me a sure s use d b y o the r c o mpa nie s.

37

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