Professional Documents
Culture Documents
June 2012
22
Who We Are
Established in 1979 Worlds largest container lessor: 2.5 million TEU control 18% of container leasing market sell up to 100,000 containers annually own 59% and manage 41% of fleet for 16 owners
Own and manage the full life-cycle of intermodal containers 79% of on-hire fleet is subject to long-term leases, including life-cycle leases, and finance leases Profitable for 26 consecutive years
50%
40%
30% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
13.1
3.4
1.7 4.0 1.5 1.9 2.6 3.4 3.9 (0.6) 3.7 3.0
4.6
4.3
4.2
(6.9)
2011E
Trade
GDP
Container trade has grown at an average of 2.4x growth in global GDP due to globalization and growing consumer classes around the world Bank of America Merrill Lynch forecasts 3.5% global GDP growth in 2012
Sources: Nomura (1) Harrison Consulting/ Drewry (2) EIU and Drewry
2012E
2002
2003
2004
2005
2006
2007
2008
2009
2010
Container Leasing Business Model More Consistently Profitable than Container Shipping
Container shipping lines
(%)
60 50
Leasing companies
operating margin
40 30 20
10
0 -10 -20 2012F 2005 2006 2007 2008 2009 2010 2011
Despite global GDP dipping negative in 2009, container leasing companies remained profitable and have since reported record earnings.
2,500,000 2,000,000
TEU
1,500,000
1,000,000
Since 2002, the owned fleet has grown 34% faster than the managed fleet.
500,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
Owned Fleet
Managed Fleet
Reefer Fleet
60,000
TEU
40,000 20,000
0
2008
2009
2010
2011
2012*
Owned Fleet
Managed Fleet
* As of 31 March 2012
3% 9%
34%
20 Standard
Dry Freight
Reefers Specials
40 High Cube
40%
40 Standard
14%
Textainer Triton Florens TAL SeaCo CAI Intl SeaCube Container Cronos Group Gold Container Dong Fang Beacon Intermodal UES Intl HK Other
2,440
1,925
1,710
1,605
990
885
870
708
515
480
357 275 870
500
1,000
1,500
2,000
2,500
3,000
TEU (000's)
As of Mid-Year 2011
Container Leasing Companies Shipping Companies and Other Total World Container Fleet Leasing Companies
Textainer Offices
Textainer maintains 14 offices worldwide in the following locations:
10 10
Mid-life
Initial LTL
Disposition
30% of return
55% of return
15% of return
11 11
2000
2012(1)
1%
12 12
13 13
Strong demand for containers in 2012 Some shipping lines, reluctant to pay current new container price levels and/or facing liquidity constraints, prefer to lease Leasing sector supplied 64% of new container production through mid-2012 Shipping lines starting to increase disposals from their fleets Higher residual values in secondary market provide incentive to renew fleet
Result
Demand for leased containers expected to remain strong in 2012 Utilization declined slightly in 1Q2012 but has improved in 2Q2012 Residual values are very attractive
15 15
XTRA
Prime Source
May 1999
April 1998
226,000
55,000 1,407,000
Each acquisition 1-3 months conversion no disruption to customers no new headcount accretive to earnings IT Systems scalable to 2x current fleet size
16 16
Future Growth
Container ownership Ownership generates considerably more income per container than management: increase percentage of owned containers with aggressive new container purchases expand refrigerated container market share replace retired managed containers with new owned containers Accretive transactions Opportunistically look for: acquisitions of competitors or container fleets purchase leaseback of shipping line owned containers purchase of managed containers container trading deals
17 17
Strong and growing contracted revenue stream and stable cash flow 79% of on-hire fleet subject to term-leases/direct finance leases average remaining term of term leases = 41.2 months diversified customer base Diverse revenue streams owning, managing, resale Limited future capex commitments 2-3 month order cycle for new containers Excellent liquidity strong support from diverse bank group with $1.2bn warehouse facility strong demand for recently issued $400mm term notes at attractive rates Strong financial ratios debt:equity 2.2:1.0 debt:EBITDA 4.3:1.0
As of 31 March 2012
18 18
$100,000
$0
2008 2009 2010 2011 2012 (3)
2008
2009
2010
2011
2012 (3)
EBITDA (1)
$400,000
$350,000
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2008 2009 2010 2011 2012 (3)
2008
2009
2010
2011
2012 (3)
(1) Amounts in 000s (2) See reconciliation of Adjusted Net Income on page 25 (3) 31 March 2012 YTD annualized
19 19
Balance Sheet
($ in millio ns)
31 March 2012
Cash And Cash Equivalents Containers, Net Total Assets Growth Long-Term Debt (Incl. Current Portion) Total Liabilities Non-controlling Interest Total S hareholders Equity Total Equity & Liabilities Debt / Equity plus Non-controlling Interest $76 $2,014 $2,447 6% $1,568 $1,720 $2 $726 $2,447 2.2x
31 December 2011
$75 $1,904 $2,310 32% $1,509 $1,625 $1 $685 $2,310 2.2x
2010
$57 $1,437 $1,747 28% $889 $1,077 $87 $584 $1,661 1.3x
2009
$57 $1,062 $1,360 4% $687 $787 $73 $500 $1,287 1.2x
2008
$71 $999 $1,304 16% $725 $796 $58 $450 $1,245 1.4x
20 20
Attractive Dividend
$0.42 $0.40 $0.38 $0.36 $0.34 $0.32 $0.30 $0.28 $0.26 $0.24 $0.22 $0.20
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Dividends have averaged 43% of adjusted net income since IPO, enabling the Company to retain capital for growth Paid stable or increasing dividends since IPO
21 21
Textainer Offers
Revenue visibility long term leases and lease renewal experience, plus scale and expertise to manage through end of lease Low credit risk and limited customer base concentration Business model (management business) mitigates cyclicality percent of 2011 segment income before tax and noncontrolling interest container ownership: 79% container management: 16% container resale: 5% Tax efficient structure Access to multiple debt and equity sources
Investors Receive
Organic Growth Dividend (1) yield of 4.87%
Accretive Acquisitions
22 22
Appendix
24 24
Financing Facilities
$1.2bn warehouse facility floating rate revolving until April 2014 $163.1mm outstanding floating rate monthly amortization matures May 2015
100% 100% Textainer Marine Containers Limited (TMCL) Textainer Marine Containers Limited II (TMCL II)
$370.0mm outstanding 4.7% fixed rate monthly amortization matures June 2021
$400.0mm outstanding (effective April 2012) 4.21% fixed rate monthly amortization matures April 2022
As of 31 March 2012
25 25
2004
132,786
2005
71,304
2006
86,524
2007
125,816
2008
130,330
2009
33,418
2010
219,922
2011
233,799
2012
181,714
96,767
283,000
443,000
325,000
97,815
405
100,655
33,978
157,357
2,303
32,740
45,780
46,990
61,430
90,200
84,940
125,238
98,328
61,167
18,503
$1,400
$1,950
$1,900
$1,750
$1,900
$2,400
$1,900
$2,470
$2,688
$2,376
$562
$752
$950
$885
$929
$1,151
$817
$1,112
$1,697
$1,421
Average Residual Value/Average Purchase Price Average Bad Debt Expense as % of Revenue
40%
39%
50%
51%
49%
48%
43%
45%
63%
60%
0.9%
0.7%
0.1%
0.5%
0.5%
2.7%
1.7%
0.6%
0.1%
3.0%
(1) In depot retirements only (excludes lost on lease) (2) Includes cash proceeds and repair bills
26 26
Philip K. Brewer was appointed President and CEO in October 2011. Mr. Brewer served as our Executive Vice President since January 2006, responsible for managing our capital structure and identifying new sources of finance for our company, as well as overseeing the management and coordinating the activities of our risk management and resale divisions. Mr. Brewer was Senior Vice President of our Asset Management Group from 1999 to 2005 and Senior Vice President of our Capital Markets Group from 1996 to 1998. Prior to joining our company in 1996, Mr. Brewer worked at Bankers Trust starting in 1990 as a Vice President and ending as a Managing Director and President of its Indonesian subsidiary. From 1989 to 1990, he was Vice President in Corporate Finance at Jardine Fleming. From 1987 to 1989, he was Capital Markets Advisor to the United States Agency for International Development in Indonesia. From 1984 to 1987, he was an associate with Drexel Burnham Lambert, an investment banking firm. Mr. Brewer holds a B.A. in Economics and Political Science from Colgate University and a M.B.A. in Finance from Columbia University. Robert D. Pedersen was appointed President and CEO of Textainer Equipment Management Limited, our management company, in October 2011. Mr. Pedersen served as our Executive Vice President responsible for worldwide sales and marketing related activities and operations since January 2006. Mr. Pedersen was Senior Vice President of our leasing group from 1999 to 2005. From 1991 to 1999, Mr. Pedersen held several positions within our company, and from 1978 through 1991, he worked in various capacities for Klinge Cool, a manufacturer of refrigerated container cooling units, XTRA, a container lessor, and Maersk Line, a container shipping line. Mr. Pedersen is a graduate of the A.P. Moller Shipping and Transportation Program and the Merkonom Business School in Copenhagen, where he majored in Company Organization. Hilliard C. Terry, III was appointed Executive Vice President and Chief Financial Officer in January 2012. Prior to joining the company, Mr. Terry was Vice President and Treasurer and previously the head of Investor Relations at Agilent Technologies, Inc., where he worked since the companys initial public offering in 1999 and subsequent spin-off from Hewlett-Packard Company (HP). Before joining Agilent, he worked in marketing and investor relations for HPs VeriFone subsidiary and joined VeriFone, Inc. in 1995 prior to the companys acquisition by HP in 1997. Mr. Terry has also held positions in investor relations and investment banking with Kenetech Corporation and Goldman, Sachs & Co, respectively. He holds a B.A. in Economics from the University of California at Berkeley and an M.B.A. from Golden Gate University. Ernest J. Furtado has served as our First Vice President, Senior Vice President, Chief Financial Officer and Secretary or Assistant Secretary since 1999. Mr. Furtado currently serves as Textainers Senior Vice President and Chief Accounting and Compliance Officer. Prior to joining our company in 1991, Mr. Furtado was Controller for Itel Instant Space, a container leasing company based in San Francisco, California, and Manager of Accounting for Itel Containers International Corporation, a container leasing company based in San Francisco, California. Mr. Furtado is a Certified Public Accountant and holds a B.S. in Business Administration from the University of California at Berkeley and a M.B.A. in Information Systems from Golden Gate University.
27 27
Textainer Contacts
Corporate Headquarters Office Textainer Group Holdings, Ltd. Century House 16 Par-la-Ville Road Hamilton HM08, Bermuda Administrative Office Textainer Equipment Management, Ltd. 650 California Street, 16th Floor San Francisco, CA 94108
Hilliard C. Terry, III Executive Vice President and Chief Financial Officer
HCT@textainer.com (415) 658-8214
Ernest J. Furtado Senior Vice President and Chief Accounting & Compliance Officer
EJF@textainer.com (415) 658-8223
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