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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 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.
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Celebrating 100 Years of U.S.–Led Manufacturing Innovation and International Success
• 100 years at our U.S.-based flagship
manufacturing operation, Gunderson, Inc
• 20 years of international manufacturing
experience, beginning in Mexico and Europe
• 75 years of successful manufacturing history
at Greenbrier Maxion, Brazil
• New operations in the GCC and Eurasia
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A History of Financial and Operational Success
• Five-Year Transformation Through Manufacturing (2014 through 2018)
– Total manufacturing revenues of nearly $10 billion
– EBITDA of approximately $1.8 billion
• 20-Year Mexico Manufacturing Milestone (1998 through 2018):
– 130,000 railcars produced in Mexico including boxcars, tank cars, gondolas, automotive carrying railcars
– Billions in revenue and EBITDA generated from Mexico operations
– High ROIC as a result of thoughtful investments and partnerships
• 20-Year European Manufacturing Milestone (1998 through 2018):
– Following Astra Rail acquisition, addressable market incorporates almost all railcar types
– In recent quarters, over 20% of all Greenbrier orders originate from Europe
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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.
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Accomplishments & Strategic Developments
• Delivered 20,900 railcars, a 31% increase from prior year
• Secured orders for 21,900 new railcars valued at approximately $2.2 billion
• Entered agreement for 204,000 barrel capacity oil and chemical tank barge
• Renewed, extended and increased revolving credit facility and leasing term loan
• Announced agreement with Saudi Railway Company to form joint venture and invest in Saudi
Arabia’s railway system
• Acquired majority interest in the Turkish railcar builder Rayvag
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Higher Peak and Trough Profitability Over The Cycle
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Greenbrier has shown a consistent ability to grow earnings so that peaks and troughs are steadily improving
$90 $112
$129 $113
$254
$434
$474
$64 $76
$317 $318
$103
$161 $163
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
($ in
mill
ions
)
Adjusted EBITDA
Peak Trough Transition
Average EBITDA during ‘05-’08 peak: $111
Average EBITDA during ‘14-’16 peak: $387
Average EBITDA during ‘17-’18 trough:
$318
Average EBITDA during ’09-’10 trough: $70
Greenbrier’s Railcar Backlog
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Backlog Units 12,100 16,200 13,400 5,300 15,400 10,700 14,400 31,500 41,300 27,500 28,600 27,400 27,500
In 1Q FY 2019, Greenbrier received orders for 5,400 units valued at $560 million.
Provides Earnings Visibility
$0.8 $1.4 $1.2
$0.4
$1.2 $1.2 $1.5
$3.3
$4.7
$3.2 $2.8 $2.7 $2.7
$69
$89 $87 $79 $80
$112 $106 $106
$114 $116
$98 $100 $98
$-
$20
$40
$60
$80
$100
$120
$140
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q 19
Average Sales P
rice/Unit
($ in thousands)Bac
klog
Val
ue($
in b
illio
ns)
($ in millions except per unit values)
1Q FY 2019 Income Statement Highlights
• Revenue of $604.5 million
• Gross margin of 12.0%
• Adjusted EBITDA of $57.6 million– Adjusted EBITDA margin of 9.5%
• Adjusted Diluted EPS of $0.54
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$559.5 $629.3 $641.4 $689.2
$604.5
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
Revenue ($ millions)
$76.9 $79.1 $86.9 $75.3
$57.6
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
$0.83
$1.21 $1.30
$0.80 $0.54
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
Adjusted(1) Diluted EPS
Adjusted(1) EBITDA ($ millions)
1Q FY 2019 Key Metric Highlights
• Backlog 27,500 units valued at $2.7 billion
– Diverse backlog reflects a broad range of car types
including tank cars, intermodal units, covered
hoppers, boxcars, automotive carrying railcars and
gondola cars
• Deliveries of 4,500 units including
syndication activity of 300 units
• Orders for 5,400 diversified railcars were
received during the quarter, valued at $560
million
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4,400 4,900 5,600 6,000
4,500
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
Total Deliveries
500 250
1,300
500 300
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
Syndicated Deliveries
26,500
24,100 24,200
27,400 27,500
1Q 18 2Q 18 3Q 18 4Q 18 1Q19
Backlog
Strong Balance Sheet and Liquidity Provide Flexibility
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Liquidity Summary ($ in millions)
(1) Net debt is defined as gross debt plus debt discount less cash(2) Adjusted EBITDA exclude gain on contribution to GBW, restructuring charges, goodwill impairment and other special items
5.5x
4.6x
2.7x
2.0x
1.1x
0.5x0.2x
0.0x (0.1x)
0.3x 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM
11/30/18
$99 $50 $54 $97 $185 $173 $223
$611 $531
$463
$105 $192 $299
$304
$321 $268
$350
$339 $450 $486
$204 $242
$353 $401
$506 $441
$573
$950 $981 $949
2010 2011 2012 2013 2014 2015 2016 2017 2018 11/30/18
Cash Borrowing Availability
Net Funded Debt(1) / Adjusted EBITDA(2)
$4.13
$(1.00)
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2010 2011 2012 2013 2014 2015 2016 2017 2018
Adjusted EPS(2)
20.9
0.0
3.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Deliveries (000s of units)(1)
$2,519
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue
Consolidated Financial Trends
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(1) 2017 & 2018 include Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method
(2) Adjusted EPS & Adjusted EBITDA exclude Goodwill impairment, Restructuring charges and other Special Items
Deliveries of 24,000 – 26,000
units
Adjusted EPS of
$4.20 – 4.40
Revenue of at least $3 billion
($ in millions)
FY 2019 guidance:
Concluding Remarks
Looking Ahead
Greenbrier will continue to:– Grow core North American business
– Integrate and expand international operations
– Extend talent base through the creation of robust talent pipeline
– Grow at scale in new and existing markets
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