Robert W. Baird & Co Industrial Conference. November 2007

Transcription

1 Robert W. Baird & Co Industrial Conference November 2007

2 Forward-Looking Statements Statements in this presentation which are not statements of historical fact are forward-looking statements within the safe harbor provision of the Private Securities Litigation Reform Act of These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Accuride Corporation at the time this presentation was made. Although Accuride Corporation believes that the assumptions underlying such statements are reasonable, it can give no assurance that they will be attained. Factors that could cause actual results to differ materially from expectations include the risks detailed under the caption Risk Factors in the Company s filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. 2

3 Management Presenters John Murphy President & Chief Executive Officer Dave Armstrong Chief Financial Officer & General Counsel 3

4 Investment Highlights One of the largest component and solutions suppliers to the commercial vehicle market Recognized brands with #1 or #2 market positions 20 plus years of relationships with the leading OEMs Industry Fundamentals Expected to Return in 2008 and 2009 Weak freight environment has slowed recovery from 2006 pre-buy Demand is expected to return to 2006 peak levels by 2009 Strong Margins and Cash Flow Margins remain strong despite lower revenue Debt has been reduced by over $200 million since early 2005 Additional $70 million repaid in 2007 Over $100 million in free cash flow generated in

5 Company Overview

6 End Markets and Customers Heavy-Duty Truck (Class 8) 2006 Revenue by End Market Heavy Conventional Tandem-Axle Van Transit Bus Medium-Duty Truck (Class 5-7) Commercial Light Truck Other 6% Industrial 7% Trailer 7% Medium Conventional School Bus Walk-In Van Commercial Vehicle Aftermarket 19% Heavy - Duty & Medium - Duty Truck 61% Recreational Vehicle Single-Axle Van Truck Trailer Stake 2006 Revenue by Customer Other 39% Freightliner 18% Van Flat Bed Tanker Paccar 18% Light Truck (Class 3-4) Volvo/Mack 9% International 16% 6

7 Leading Brands & Market Positions Steel Wheels #1 Aluminum Wheels #2 Brake Drums #1 Disc Wheel Hubs #1 Spoke Wheels #1 Metal Grill and Crown Assemblies #1 Chrome Plating and Polishing #1 Metal Bumpers #2 Seating Assemblies #2 Fuel Tanks #2 Drums Steel Wheels Metal Grill Seating Assemblies Aluminum Wheels Disc Wheel Hubs Metal Bumper 7 Source: Management estimates

8 Strong Content per Vehicle ($ in millions) 2006 Revenue = $1, Revenue (1) % of Total $ % $ % $ % $ % $ % $ % Hood Tops and Skins Windshield Frames Sunvisors Seating Systems Chassis & Suspension Brackets Exhaust Stacks & Assemblies Brake Drums, Disc Wheel Hubs, Spoke Wheels, Rotors Grill Assemblies Steel and Aluminum Wheels Crown Assemblies Fuel Tank Straps Bumpers Fenders Fuel Tank Assemblies Fuel Tank Ends Accuride Gunite Imperial Brillion Fabco Bostrom 8 (1) Excludes intercompany sales Engine Castings Steerable Drive Axles Battery/Tool Boxes

9 Current Industry Environment Weak freight environment has slowed recovery from 2006 pre-buy Trailer production substantially down from earlier estimates Rebound seen by the 2nd half of Commercial Vehicle Production (Units in thousands) Trailer 62 Class Class 8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Source ACT research

10 Economic Outlook Real GDP Industrial Production % Change 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 4.4% 3.7% 0.8% 1.6% 2.5% 3.9% 3.2% 3.3% 2.0% 3.2%3.2% 2.8% 2.5% % Change 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% 4.7% 4.5% 4.1% 3.2% 3.1% 2.5% 2.1% 2.3% 2.6% 2.6% 1.1% 0.0% % Economic outlook remains strong GDP and industrial production expected to decline in 2007 and rebound in future years Sub prime loan issues impacting credit for truckers and used truck market 10 Source: ACT Research, Oct 2007

11 Industry Production Forecasts 2009 pre-buy before 2010 emissions still forecasted Trailer production down in 2008 with gradual increase Class Class Trailer

12 Value Creation Strategy Enhanced Shareholder Value Revenue Growth Earnings Growth Cash Flow Growth Organic Growth AccuSolutions Paccar Hood Assembly NABI Bus Chassis New Technology External Growth Targeted acquisitions to leverage current distribution channels and manufacturing competencies International expansion Operational Excellence Focus on continuous improvement to improve profitability Strategic Investments Invest in high return projects to improve automation and reduce costs Debt Reduction Disciplined management of working capital and capital expenditures 12

13 Strategic Initiative - AccuSolutions AccuSolutions Business Model Accuride Produced Parts Accuride Produced Parts New Technology Low-Cost Sourced Parts Accuride Solution Centers OEM Assembly Plant Assemblies, kitted parts, line sequenced and value-add service parts delivered JIT New Business Awards 13 NABI Bus Chassis Paccar Hood Assembly

14 M & A Growth Strategy 1. Increase value added product 2. Increase geographic footprint 3. Increase exposure to adjacent markets 14

15 2007 Management Actions Steel Wheel Restructuring Reallocation of heavy steel wheel production to other facilities (Henderson, KY & Monterrey, Mexico) Decrease in hourly and salary workforce in London, Ontario No anticipated increase as production ramps up Total estimated 2007 non-cash write-off Approximately $16 million Total 2007 cash cost Approximately $4 million Anticipated annual savings Approximately $10 million Operations Highlights Recently launched new Accu-Lite wheel that will reduce the weight of our industry standard wheel by 8 lbs. Recently awarded light steel wheel contract beginning production in 2010 with a total estimated revenue of approximately $40 million 15

16 2007 Management Actions Aluminum Wheel Press Replacement Major press replacement project remains on schedule at our facility in Erie, PA Significant capital investment Fully operational in the first half of 2008 Anticipated increase in efficiencies and through-put Labor Relations Five agreements in 2007 Elkhart, IN Brillion, WI (Steelworkers) Brillion, WI (Machinists) Erie, PA Rockford, IL Four successfully concluded Rockford, IL November

17 Financial Results

18 Strong Revenue and Earnings Growth Sales are up 9.7% Adjusted EBITDA is up 7.2% Net Income is up 24.2% Pro Forma Results as of December 31, ($ in millions, except per share data) % Change 2006 vs Net Sales $ 1,082.3 $ 1,283.6 $ 1, % 9.7% Gross Profit % of Net Sales 15.1% 16.1% 14.0% Adjusted EBITDA % 7.2% % of Net Sales 14.7% 15.8% 15.4% Net Income % 24.2% Net Income per Share $ 0.61 $ 1.71 $ % 9.9% Diluted Shares Pro forma results give effect to the acquisition of TTI and related financings as if these occurred on January 1, 2005.

19 YTD 2007 Results Sales declined by 25.6% due to new emission standards Adjusted EBITDA decline of $67.5 million primarily due to decline in revenue Incremental loss of 28% in line with previous guidance YTD Results for the Period Ended Sep 30, ($ in millions, except per share data) Net Sales Gross Profit % of Net Sales Adjusted EBITDA % of Net Sales Net Income/(Loss) 2006 $ % % % % 1.8 Net Income (Loss) per Share $ 1.47 $ 0.05 Diluted Shares $ 19

20 Strong Cash Flow Over $100 million of free cash generated in 2006 YTD Free cash flow impacted by reduction of EBITDA Free cash flow expected to be $35 million to $40 million in 2007 ($ in millions) Cash From Operating Activities Capital Expenditures Free Cash Flow % of Net Sales Working Capital % of LTM Net Sales Free Cash Flow and Working Capital 2006 $ (42.2) % % 2006 $ 96.9 (24.8) % % YTD 2007 $ 26.9 (25.2) % % 20 Working capital is defined as current assets less cash minus current liabilities excluding gain contingency.

21 Significant Debt Reduction Repaid approximately $210.4 million of bank debt in 2005 and 2006 Additional $60 million paid in Q and $10 million paid in Q All amortization payments prepaid through 2011 Total Debt and Leverage Ratio ($ in millions) x 5.0x 5.0x x x 3.5x 4.0x 3.0x x Dec-04 Dec-05 Dec-06 Sep x 21 Leverage ratio is defined as total debt less cash divided by LTM Adjusted EBITDA and may be different from calculation related to our credit agreement

22 Investment Highlights

23 Investment Highlights One of the largest component and solutions suppliers to the commercial vehicle market Recognized brands with #1 or #2 market positions 20 plus years of relationships with the leading OEMs Industry Fundamentals Expected to Return in 2008 and 2009 Weak freight environment has slowed recovery from 2006 pre-buy Demand is expected to return to 2006 peak levels by 2009 Strong Margins and Cash Flow Margins remain strong despite lower revenue Debt has been reduced by over $200 million since early 2005 Additional $70 million repaid in 2007 Over $100 million in free cash flow generated in

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