INVESTOR DAY May 31, 2018

Transcription

1 INVESTOR DAY 2018 May 31,

2 DISCLAIMER Forward-Looking Statements Certain statements in this presentation, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that include the words "expect," "intend," "plan," "believe," "project," "anticipate," "will," "may," "would" and similar statements of a future or forward-looking nature may be used to identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond Triton International Limited s ( Triton ) control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. These factors include, without limitation, economic, business, competitive, market and regulatory conditions and the following: decreases in the demand for leased containers; decreases in market leasing rates for containers; difficulties in re-leasing containers after their initial fixed-term leases; customers' decisions to buy rather than lease containers; dependence on a limited number of customers for a substantial portion of our revenues; customer defaults; decreases in the selling prices of used containers; extensive competition in the container leasing industry; difficulties stemming from the international nature of our businesses; decreases in the demand for international trade; disruption to our operations resulting from the political and economic policies of the United States and other countries, particularly China, including increased tariffs; disruption to our operations from failures of or attacks on our information technology systems; compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; ability to obtain sufficient capital to support our growth; restrictions on our businesses imposed by the terms of our debt agreements; changes in the tax laws in the United States and other countries; and other risks and uncertainties, including those risk factors set forth in the section entitled Item 1A "Risk Factors" beginning on page 14 of Triton International Limited s Annual Report on Form 10-K for the year ended December 31, 2017, as updated from time to time by Triton International Limited s Quarterly Reports on Form 10-Q or other comments by Triton International Limited on file with the United States Securities and Exchange Commission. The foregoing list of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Any forward-looking statements made herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on Triton or its business or operations. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. 2

3 AGENDA 11:45 12:00 Registration Schedule 12:00 1:30 Presentation 1:30 2:00 Group Q&A 2:00 3:00 Follow-up Q&A Presentation Topics Business Overview Market Conditions Operations Review Financial Performance Overview Capital Management Conclusion Triton Advantages 3

4 PRESENTERS Brian Sondey Chairman and Chief Executive Officer 21 years of industry experience Formerly Chief Executive Officer of TAL International, since 1999 John Burns Chief Financial Officer 21 years of industry experience Formerly Chief Financial Officer of TAL International, since 2009 John O Callaghan EVP, Global Head of Field Marketing and Operations 24 years of industry experience Formerly SVP of Triton Container International Limited Kevin Valentine SVP, Triton Container Sales 27 years of industry experience Formerly SVP Trader, Global Operations, Tanks, Chassis and Americas at TAL International Brian Darnowski SVP, Operations 34 years of industry experience Formerly VP Global Operations of Triton Container International Limited Andrew Greenberg SVP, Finance and Investor Relations 4 years of industry experience Formerly Treasurer of TAL International; 15 years in investment banking 4

5 Business Overview 5

6 INTRODUCTION Triton is the world s premier container leasing company Triton has numerous advantages that boost our growth and returns, and are difficult for competitors to replicate Triton is using favorable market conditions to drive strong current performance Triton is well positioned to create long-term value 6

7 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 CEU (Millions) Cumulative Dividends ($MM) CORPORATE SNAPSHOT Leading Position in Consolidating Industry Financial Performance Resilient Beacon 5% Other 11% Triton 26% $300 $250 $200 Seacube 6% CAI 6% Seaco 12% Florens 18% $150 $100 $50 $0 Q1 '17 Q2 '17 Q3 '17 Q4'17 Q1 '18 (1) Cash Flow Before Capex Adjusted Net Income Textainer 16% Source: Drewry Container Census & Lease Industry Annual Report 2017, based on fleet size in TEU at end- 2016; figures exclude containers owned by shipping lines and other Steady Fleet Growth CAGR: 8.2% (1) Cash Flow Before CapEx defined as Adjusted EBITDA (defined as net income before interest and debt expense, income tax expense and depreciation and amortization, and excludes transaction costs, net loss (gain) on interest rate swaps, insurance proceeds, and the write-off of deferred financing costs) less interest and debt costs plus NBV of disposals and principal payments on finance leases. Please refer to Appendix for reconciliation of non-gaap financial information. $25.00 $20.00 $15.00 $10.00 $5.00 $- Significant Dividend Cumulative dividends over 125% of TAL 2005 IPO price 7

8 TRITON CONTAINER FLEET AND LEASE PORTFOLIO Container Fleet % of Revenue Q Triton Position (1) Drys 66% #1 Refrigerated 27% #1 Core Specials 4% #1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Lease Portfolio (NBV) 17.7% 13.9% 6.9% 8.7% 70.5% 74.1% 4.9% 3.3% Mar-17 Mar-18 Service Leases Long-Term Expired Lease (Units On-Hire) Long-Term Lease Finance Lease Chassis and Specialty Products 3% Top 5 Large Majority of Containers On Long-Term Leases with Average Remaining Duration of 42 Months as of 3/31/18 (1) Source: Drewry Container Census & Lease Industry Annual Report 2017, IICL and ITCO. 8

9 CURRENT PERFORMANCE STRONG Q1 Adjusted net income was $79.8 million, or $0.99 EPS» Up 17% from Q4 2017» Annualized ROE of 15.4% Our investment program is off to a strong start» Year-to-date have invested $1.0 billion in containers for delivery in 2018» Expect lifetime equity returns to be in mid-teens We expect to achieve strong results for the full year of 2018» High single digit asset growth» Moderate increase in EPS throughout

10 WELL POSITIONED TO CREATE LONG-TERM VALUE Attractive Market Fundamentals Naturally resilient market with favorable supply / demand and pricing dynamics Significant Competitive Advantages Scale, cost, supply capability, and global marketing and operating advantages drive outperformance Compelling Growth Prospects Numerous market and Triton-specific growth levers support organic growth at a multiple of global GDP growth High Investment Returns Favorable market dynamics and Triton outperformance sustain high investment ROEs Strong, Stable Cash Flow Underpins shareholder returns and provides financial stability 10

11 Market Conditions 11

12 MARKET OVERVIEW Market conditions remain favorable Demand for Triton containers is strong» Solid trade growth» Continued secular shift towards leasing» Preference to work with Triton Container supply is well controlled» Moderate level of new container inventory» Limited availability of used leasing containers Competitors active, but landscape improved Container prices stable 12

13 Growth Rate CONTAINERIZED TRADE GROWTH PROJECTED TO REMAIN SOLID Global GDP and Trade Growth 8% 6% 4% 2% 0% E Container Trade Growth Global GDP Growth Sources: Container Trade Growth : Alphaliner Monthly Monitor April Container Trade Growth E: average of estimates from Alphaliner Monthly Monitor April 2018 and Clarksons Container Intelligence Monthly April GDP Growth: International Monetary Fund, April 2018 World Economic Outlook Update and earlier editions of the same report. 13

14 ALL MAJOR TRADES PERFORMING WELL 2017 Growth Transpacific +5.8 % North-South +6.5 % Other +6.4 % Other East-West +4.6 % FE-Europe +4.4 % Source: Clarksons Research, April

15 U.S.-CHINA TRADE IMPORTANT, BUT NOT THE MAJOR DRIVER OF CONTAINER DEMAND Vessel Capacity Deployed by Trade Lane Unassigned and Idle ANZ/Oceania 3% 4% Eur N. Am 4% Intra Europe 5% Sub Saharan Africa 8% Intra Far East 13% Far East Eur 20% Far East N. Am 16% Latin America 13% Middle East/India 14% U.S.-China trade actions would impact subset of Transpacific trade Some portion of reduced U.S.-China bilateral trade would be re-routed, rather than eliminated Source: Alphaliner Monthly Monitor April

16 INCREASING SHARE FOR LEASING Leasing Provides Multiple Benefits Improves container efficiency» Pick-up flexibility reduces need to maintain safety inventories» Drop-off flexibility allows quicker adjustment to fleet size, container mix and container locations Reduces capital requirements Allows lines to benefit from leasing companies container expertise» Production quality control» Container financing» Container re-sale Leasing Increasing Share vs. Ownership Shipping lines allocating scarce capital to strategic vessel and terminal investments» Profitability challenged by persistent excess capacity» Aggressive investment in mega vessels and owned terminals to reduce costs Cost of leasing shrinking vs. cost of direct purchase» Increased scale, improved systems reducing lessors overhead allocations» Lessors higher leverage and efficient financing structures improving relative ownership cost 16

17 TEU (MM) Leasing Company (%) TEU (MM) Leasing Company (%) CONVERSION TO LEASING GENERATES INCREMENTAL DEMAND New Container Production World Container Fleet and Leasing Share 5 60% 50 60% 4 50% 40 50% 40% 40% % 30% % 20% 1 10% 10 10% 0 0% 0 0% Leasing Company Owned Shipping Line Owned Leasing (%) Leasing Company Owned Shipping Line Owned Leasing (%) Leasing 60% of Annual Production vs. 50% Overall Fleet Share to Yield Leasing Market Growth 1-2% Above Global Trade Growth Source: Drewry Container Census & Lease Industry Annual Report 2017 and Triton management estimates. 17

18 CUSTOMER CONSOLIDATION FAVORS LARGEST SUPPLIERS Market Dominated by Mega Carriers And Triton Is The Preferred Supplier (1) (1) (2) Triton estimates that it has a #1 position with (3) :» Each of the top 5 carriers» 8 of the top 10 carriers Top 10 customers have leased containers from the Company for over 30 years on average (1) (1) Relationships at multiple levels and regions with our customers (1) Solid line indicates merger recently completed. (2) Dashed line indicates merger is currently in process. (3) Carriers with announced but uncompleted acquisitions counted separately. 18

19 China Dry New Production Inventory (TEU) Triton s Asia Inventory (TEU) CONTAINER SUPPLY WELL CONTROLLED Container inventory tight heading into peak season» Factory supply only 2.5% of overall fleet, and virtually zero middle-aged equipment in Asia» Even with no fleet growth, ~1% of containers are retired per quarter Short order cycle (2-3 months) and fleet attrition prevent extended periods of excess supply 1,200,000 1,000, , , , ,000 0 Favorable Total Supply Environment New Dry Factory Inventory Triton s Dry Depot Lease Inventory in Asia 250, , , ,000 50,000 - Shipping Inventory Leasing Inventory Sources: Shipping and Leasing Factory Inventory estimates provided by commonly used informal surveys by factory inspectors. Unbooked Asia Dry Inventory Source: Internal container management reports. Booked Asia Dry Inventory 19

20 MERGER SET A NEW STANDARD ACROSS CONSOLIDATING LANDSCAPE Pre-Merger Leasing Share (1) Current Leasing Share (1) Cronos 5% Other 12% Textainer 17% Beacon 5% Other 11% Triton 26% Beacon 5% Dong Fang 5% Triton 12% Seacube 6% CAI 6% CAI 6% Seacube 7% TAL 13% Seaco 12% Florens 18% Seaco 7% Florens 11% Textainer 16% (1) Source: Drewry Container Census & Lease Industry Annual Report 2016 and 2017, based on fleet size in TEU at end-2015 and end-2016; figures exclude containers owned by shipping lines and other. 20

21 CONTAINER PRICES STABLE, BUT COULD INCREASE IN PEAK SEASON 20 Dry Newbuild and Steel Price Trends 20 Dry Newbuild Price Less Steel Input Cost $3,000 $1,500 $2,500 $1,250 $2,000 $1,000 $1,500 $750 $1,000 $500 $500 $250 Current 20 Dry Newbuild Price: $ 2,200 2 Tons per 20 $660/ton of HRC: $ 1,320 Newbuild Price less Steel: $ 880 $- $- 20' Price 20' Steel Input Cost 20' Price Less Steel Cost 21

22 Operations Review 22

23 OVERVIEW OF TRITON OPERATIONS Triton s large investments in inventory and operations provide meaningful advantages» Allow Triton to provide best-in-class service to its customers» Key to Triton s ability to maximize the lifetime value of its containers Difficult for competitors or new entrants to match Triton s capabilities» Lack operating and financial scale» Triton s operating knowledge and reputation for reliability built over many years Key elements of Triton s operations include:» Large ready inventory for all major container types» Multi-level and multi-location marketing coverage for major customers» Separate, focused global sales force for used container disposals» Extensive global customer service and operations infrastructure» Powerful, custom systems to interface with customers and manage transaction flow» Industry-leading quality control effort for new container production 23

24 CONTAINER LIFECYCLE 0 years Initial Long-term Lease Large - typically 10,000+ TEU Competitive transactions, especially if not for immediate supply Centered on leading shipping lines Return / Re-lease cycles Initial Lease 50-60% Usually small batch pick-ups Often not competitively shopped Small and regional shipping lines important, especially for pick-ups outside main Asia ports Re-Lease 20-30% Sale Usually small batch sales Large number of local customers Often bundle with service Sale 15-20% NPV at Investment Date 24

25 TRITON MAKES SIGNIFICANT INVESTMENT IN READY INVENTORY Typical Available New Production Inventory Equipment Type TEUs $ in mm Drys 75, ,000 $150 - $300 Reefers 10,000-20,000 $75 - $150 Specials & Other 3,000-5,000 $25 - $50 Total $250 - $500 % of Total Assets 3% - 5% Size significantly larger than peers due to the balance sheet strength of Triton» Triton s ready inventory only 3-5% of total assets Triton s ready inventory enables us to provide immediate availability to customers that run short» 100,000+ TEU could be needed if a large customer underestimates demand by 2% 25

26 TRITON COVERS CUSTOMERS AT MANY LEVELS Senior Executives Lead Marketing Rep Product Experts Used Container Sales Regional Customer Service Regional Offices Local Offices Regional Offices Shipping Line Global HQ Regional Offices Regional Offices Regional Offices Local Offices Regional Customer Service Local Offices Local Offices Local Offices Regional Customer Service Regional Customer Service Regional Customer Service 26

27 MOST EXTENSIVE AND CAPABLE GLOBAL OPERATING INFRASTRUCTURE Extensive global footprint provides strong operating and marketing capabilities» 24 offices worldwide located in 15 different countries; 456 third-party depots located in 47 different countries» Leased used containers to 259 customers from 53 countries and sold containers to 1,451 customers from 77 countries» Worked with over 130 third-party logistics providers to efficiently move over 40,000 containers to better locations Leads to higher lifetime utilization and longer leasing life Seattle London Hamburg Rotterdam Antwerp San Francisco Houston Lexington Miami New York New Jersey Bermuda Mumbai Hong Kong Seoul Tokyo Shanghai Taipei Singapore Triton Office Depot Rio de Janeiro Sydney Note: Data for full year 2017 or as of December 31, Map includes agencies 100% dedicated to Triton. 27

28 PURCHASE CONTAINERS FROM FACTORIES IN CHINA Tianjin Qingdao Shanghai Ningbo Xiamen Guangdong 28

29 TYPICAL DRY CONTAINER RETURN LOCATIONS AFTER FIRST LEASE 29

30 MORE EXTENSIVE FLEXIBILITY ALLOWED AS CONTAINERS AGE Triton sold leased containers from ports locations in 82 in 56 different countries countries (1) (1) (1) During the 18 months ended April 30,

31 TRITON ABLE TO PROVIDE MAXIMUM FLEXIBILITY FOR SALE AGE CONTAINERS Triton sold containers from 364 locations in 82 different countries (1) (1) During the 18 months ended April 30,

32 TRITON CONTAINER SALES NETWORK 49 sales and service professionals based in 20 offices in 14 countries 177,000 units sold in 50,000 sale transactions to over 1,500 active customers (1) North Europe 35,288 units 9,463 transactions N. America 47,050 units 17,781 transactions South Europe 8,153 units 2,460 transactions Middle East 2,805 units 597 transactions North Asia 36,578 units 5,944 transactions Japan 5,094 units 1,281 transactions India 4,061 units 1,301 transactions SE Asia 18,212 units 4,404 transactions S. America 8,215 units 2,625 transactions South Africa 4,089 units 1,365 transactions Australia/NZ 7,067 units 2,408 transactions (1) For the 18 months ended April 30,

33 TCS OUR VALUE PROPOSITION TO CUSTOMERS Leverage our scale with availability in volume, across all container types, across the largest location network Make it easy for our customers to buy containers from us with our extensive service coverage, container grading and IT systems Reliably supply year after year in all market conditions Provide short term financing to select buyers given our financial strength and well-managed provision of credit terms 33

34 Price Index Price Index Price Index CONSISTENTLY STRONG RELATIVE PRICING FOR OLDER CONTAINERS 20 Dry 40 HC Dry 150% 150% 125% 125% 100% 100% 75% 75% 50% Q % Q Triton Industry Average Triton Industry Average 150% 125% 100% 75% 50% 40 HC 40 Refrigerated Dry Q Comments Triton achieves higher sale prices for containers Average sale age of Triton s containers 2-4 years older than industry averages Triton Industry Average Source: Drewry Equipment Insight Q and Triton. 34

35 SALE-LEASEBACK TRANSACTIONS Sale-leaseback transactions provide an opportunity for attractive incremental growth» Typically purchase a large batch of middle-age or older containers owned by a customer» Lease containers back to the same customer for use until sale age» Allow the containers to be returned to a wide range of sale locations at lease expiration Triton s financial scale and global resale capability provide significant advantages Expect several opportunities in 2018 SLB Equipment Types Sale-Leaseback Equipment (NBV) SLB Customers Sale-Leaseback Customer Composition (NBV) Chassis & Other Reefers Specials $475mm of NBV from SLBs Drys 35

36 Q1 '18 TRITON S GLOBAL COST CONTROL Triton closely manages its global thirdparty depot network» Evaluate depot costs and performance» Audit container estimates and repairs» Push containers rapidly through repair cycle» Leverage Triton s scale and attention to detail to ensure it receives most favored treatment from depot partners Direct Op. Expense % of Lease Revenue (1) 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% Key benefits include:» Efficient storage and repair tariffs 2.5%» Reduced repair over-bills 0.0%» High quality repairs» Trust of our customers Triton Textainer CAI (1) CAI figures for container leasing segment only. CAI Q direct operating expenses estimated based on ratio of 2017 direct operating expenses for container segment to total direct operating expenses. 36

37 TRITON HAS POWERFUL CUSTOMIZED SYSTEMS Employees Customers Depots Factories EDI Feeds Employee Facing Portal (VPN) Customer Facing Portal (Internet) Customized/In-House Operational System ( TriFleet ) - Customer/Contracts - Asset Tracking - Inventory Mgt - Billing Trireme extracts and transforms TriFleet data for analysis Port Cost Analysis for Sell/Fix Monthly & Daily Billing Payments Customer AR Positions Allocation of revenue, expense and cash by owner to GL Depot Billing Op Expenses Business Analytics SAP Business Intelligence Trireme Data Warehouse AR GL AP PeopleSoft Financials Accounting Data All Key Systems Running on Oracle Databases 37

38 KEY SYSTEM FUNCTIONALITY Customer Billing Manages over 3.4 million units on over 4,400 separate contracts Auto generation and distribution of over 5,000 per diem invoices on the first of each month Tracks customer payments and accounts receivable positions Customizable to accommodate various lease structures Credit limits monitoring Depot Activity Management Processes 25, ,000 onhires / offhires and sale transactions each month via EDI from 450 separate depot and factory locations Automated repair estimate approval process based on flexible criteria and equipment grading Integrated with business analytics to determine Sell / Fix decision Self-billing of depot expenses/charges/payments Customer Self-Service Drop-off / Redelivery clearances Booking requests Invoice / billing history Unit inquiries Business Analytics Port cost analysis for Sell / Fix logic Business and operating trends Financial analysis, including forecasting and modeling 38

39 PROCUREMENT QUALITY CONTROL Triton employs the most aggressive container quality control effort in the industry» Catch poor materials and poorly constructed containers before they enter our fleet» Manufacturers are very familiar with the level of quality Triton requires Key elements of QC program:» Grade container factories on quality of facilities and recent production experience» Monitor all production runs with Triton staff or designated third-party surveyors» Use outside labs to test materials and key components (alloy of side panels, concentration of zinc dust in paint, strength of corner castings and floorboards)» Test a sample of completed containers for floorboard performance and paint thickness» Frequently reject materials, components and completed containers if they do not meet our standards 39

40 PROCUREMENT MATERIALS TESTING Test key components prior to assembly» Steel coil Cut samples and send to external lab for metallurgy testing of physical and chemical properties» Corner castings Send to external lab to test for physical properties such as strength, brittleness, and elongation, as well as chemical properties» Floorboards» Paint Test for overall strength and proper glue/bonding strength of the plywood Test for proper zinc content in the primer, the main protective layer of the paint system 40

41 TRITON S QUALITY CONTROL PROCEDURES 1st Blasting Cleanliness Check 1st Blasting Density Check 1st Blasting Roughness Check Assembly Dimensions Check Floor Check After Truck Test Floorboard Sampling Paint Cutting Inspection Painting Line Check PELT Inspection 41

42 Triton Advantages 42

43 TRITON INVESTMENT ADVANTAGES Triton benefits from both industry-leading capabilities and lowest unit costs Triton s cost and capability advantages drive out-performance» Incremental growth opportunities» Higher returns Triton also benefits from attractive industry fundamentals Triton s growth and returns compare favorably to other similar businesses 43

44 MULTIPLE DRIVERS OF ORGANIC GROWTH Contributing Growth Factors 10% Strong Secular Trends for the Industry Product Line Extensions Market Share Gains Shift from Ownership To Leasing Sale- Leasebacks Increased Containerization Global Trade Growth Global GDP Triton Upside Opportunities US GDP 44

45 MOST CAPABLE GLOBAL INFRASTRUCTURE...AT THE LOWEST UNIT COST Global Capabilities Drive High Lifetime Value Scale Advantages Lead to Lowest Unit Costs Large, consistently available ready inventory leads to extra growth and better average deal terms Extensive global marketing capability drives high lifetime utilization 10% 8% Textainer CAI Global operating infrastructure controls depot network quality and cost Aggressive production QC effort helps maximize container useful life 6% Triton Leading team of container re-sale specialists allows Triton to sell in more locations and for better prices 4% 2% Triton Textainer CAI S&A as a Percent of Leasing Revenue (1) (1) Based on financials for the first quarter Textainer includes short-term and long-term incentive compensation expense. 45

46 TRITON S ADVANTAGES SUSTAIN HIGH RETURNS VS PEERS Scale Advantages Triton Metric Est. Peer Range Equity IRR Impact Lowest cost structure (S&A as % of revenue) 5-6% 8-10% 1-2% Service Level Advantages Better lease structuring (% return to surplus areas) 0% 30% 1% Better average pricing for new units + $ $0.02 1% Operating / Infrastructure Advantages Higher contribution from older units 10% 0.5%-1% Longer leasing life (average sale age) 15 years years 1-2.5% Extra margin on disposals (sale price vs. market Index) + $ % Cumulative Equity IRR Impact 5-8% Our Operating Advantages Lead to High Investment IRRs and ROEs Probability of Outcome Peers 5-8% Triton Investment IRR 46

47 ATTRACTIVE LONG-TERM BUSINESS FUNDAMENTALS» Pick-up / drop-off flexibility a valuable service customers will pay for Favorable Pricing Dynamics» Reliable access to container supply main selection factor; critical to customers revenue but low cost» Need for global infrastructure creates meaningful barrier to entry Strong Lifecycle Performance» Low risk of technological obsolescence; limited age discrimination» Strong residual value protection Naturally Resilient from Supply Cycles» Ordering lead time only 2-3 months; annual replacements 4-5%» High percentage of containers on multi-year leases Sustainable Advantages for Leading Players» Meaningful cost economies of scale» Extensive supply capability and global operating infrastructure critical 47

48 Average Annual Return on Assets (EBIT / Total Assets) Average Annual Return on Assets (EBIT / Total Assets) OUTPERFORMANCE COMPARED TO OTHER SECTORS 7% 10 Year 5 Year Average Annual Growth in Revenue Earning Assets % -5% 0% 5% 10% 15% 8% Triton 7% Average Annual Growth in Revenue Earning Assets % -5% 0% 5% 10% 15% 8% Rental Companies 6% Railcar Leasing Rental Companies Aircraft Leasing (1) 6% Railcar Leasing Triton Aircraft Leasing (1) 5% 5% 4% 4% Containership Chartering 3% Containership Chartering 3% 2% 2% 1% 0% Commercial Finance Container Shipping 1% 0% Commercial Finance Container Shipping -1% -1% Triton: Reflects combined financials for TAL and TCIL; Aircraft Leasing: Aercap, Aircastle, FLY, Airlease; Containership Chartering: SSW, DAC, CMRE; Container Shipping: NYK, Kline, MOL, OOCL; Rental Companies: H&E Equipment, McGrath, Mobile Mini, Ryder, URI; Commercial Finance: CIT Group, Marlin; Railcar Leasing: GATX. Data from FactSet, except for Triton. (1) REA growth excludes AerCap acquisition of ILFC from AIG in

49 Financial Performance Overview 49

50 FINANCIAL PERFORMANCE OVERVIEW All of our product lines are performing well» Key metrics strong» Trends positive Triton s current financial performance strong» Rapid sequential growth in profitability since Q3 2016» Generating attractive return on investment Strong and stable cash flow drives shareholder value and provides financial stability Business model resilient» Supply self-corrects quickly» Several actions implemented to reduce exposure to market risk 50

51 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4'17 Q1 '18 ($ in MM) Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Leasing Revenue ($ in MM) Revenue Earning Assets ($ in MM) ($ in MM) TRITON S FINANCIAL PERFORMANCE BACK ON TRACK (1) Leasing Revenue and Revenue Earning Assets (2)(3) Adjusted Net Income (4) $400 $11,000 $100 $80 $8,500 $300 $60 $200 $100 $6,000 $3,500 $1,000 $40 $20 $0 -$20 Leasing Revenue Revenue Earning Assets (Avg.) Cash Flow Before CapEx (5)(6) Adjusted Net Income $350 $300 $250 $200 $150 $100 $50 $0 (1) The combined financial information from Q and prior periods does not reflect results on a GAAP basis. GAAP financial statements reflect only the TCIL operations prior to the merger on July 12, 2016, and can be found in the Company s 10-Q and 10-K filings. (2) Excludes purchase accounting adjustments. (3) Revenue Earning Assets includes the NBV of leasing equipment, equipment held for sale, and the net investment in finance leases. The amount represents the average balance at the beginning and end of the period presented. (4) Reflects purchase accounting adjustments. Please refer to Appendix for reconciliation of non- GAAP financial information. (5) Cash Flow Before CapEx defined as Adjusted EBITDA (defined as net income before interest and debt expense, income tax expense and depreciation and amortization, and excludes transaction costs, net loss (gain) on interest rate swaps, insurance proceeds, and the write-off of deferred financing costs) less interest and debt costs plus NBV of disposals and principal payments on finance leases. (6) Reflects purchase accounting adjustments for 2017 and 2018 only. Cash Flow Before CapEx 51

52 Q1'18 Annualized ($MM) $ Per Share STRONG, STABLE OPERATING CASH FLOW DRIVES LONG-TERM VALUE Cash Flow Before CapEx (1)(2)(3) Steady Appreciation in Book Value, While Consistently Paying Substantial Dividends $1,500 $60.00 $1,250 $50.00 $1,000 $40.00 $750 $30.00 $500 $20.00 $250 $10.00 $0 $- Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Cash Flow Before CapEx (1) The combined financial information from 2016 and prior periods does not reflect results on a GAAP basis. GAAP financial statements reflect only the TCIL operations prior to the merger on July 12, 2016, and can be found in the Company s 10-Q and 10-K filings. (2) Cash Flow Before CapEx defined as Adjusted EBITDA (defined as net income before interest and debt expense, income tax expense and depreciation and amortization, and excludes transaction costs, net loss (gain) on interest rate swaps, insurance proceeds, and the write-off of deferred financing costs) less interest and debt costs plus NBV of disposals and principal payments on finance leases. (3) Reflects purchase accounting adjustments for 2017 and Q annualized only. Book Value Per Share Total Shareholder Return since IPO (CAGR) Cumulative Dividends Per Share Triton S&P % 9.1% 52

53 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Q4 '08 Q4 '09 Q4 '10 Q4 '11 Q4 '12 Q4 '13 Q4 '14 Q4 '15 Q4 '16 Q4 '17 CapEx ($MM) Utilization Net Debt as % of REA SHORT ORDER CYCLE PROVIDES FINANCIAL STABILITY AND LEADS TO MARKET RESILIENCE CapEx and Utilization (Q4 08 Q1 18) (1) Net Debt as % of REA (Q4 08 Q1 18) (2) $ % 100% $800 Financial Crisis Surplus Period Financial Crisis Surplus Period $700 98% 90% $600 96% $500 $400 94% 80% 70% $300 92% $200 $100 90% 60% $0 88% 50% CapEx Utilization Net Debt as % of REA (1) CapEx from Cash Flow Statements. (2) All periods exclude purchase accounting adjustments. 53

54 EQUITY CASH FLOW SUPPORTS BOTH DIVIDENDS AND GROWTH CAPEX ($ in 000s, except per share data) Q1 18 Annualized Adjusted EBITDA $1,181,852 Principal Payments on Finance Leases 59,084 NBV of Container Disposals 118,668 Major Cash In Flows $1,359,604 Interest Expense $299,400 Cash Flow Before Capex 1,060,204 Replacement Capex (1) 699,484 Steady-state Cash flow $360,720 Per share $4.48 Cash Flow Yield (2) 12.4% Dividends Per Share $2.08 Dividends $167,590 Dividend Yield (2) 5.8% Cash Flow for Growth Capex $193,130 Leverage on Growth Capex 75.0% Asset Growth Potential at Constant Leverage ($) $772,521 Asset Growth Potential at Constant Leverage (%) 8.8% (1) Represents depreciation, NBV of disposals and principal payments on finance leases. (2) Based on closing stock price of $35.96 on 5/25/18. Internal cash flows, at constant leverage, support high levels of growth 54

55 TAKING ACTIONS TO REDUCE IMPACT OF MARKET RISK Extending lease durations» Average tenor of leases over 7 years in 2017 and 2018 Staggering lease maturities» For large volume of recent transactions, duration ranges from 5-11 years Tightening logistics» Require redelivery of leasable equipment back to the highest demand locations Focusing on lifecycle leases» Reduces repricing risk because the box is returned at sale age» Extends average expected life of unit 55

56 LONG TERM LEASE EXPIRATIONS MANAGEABLE Dry Refrigerated Percent of Fleet 4.8% 3.8% 4.5% 2.8% 2.0% 5.1% Percent of Fleet 1.7% 1.4% 1.8% 2.3% 2.3% 1.6% Notes: - MCEU Market Cost Equivalent Unit reflects an adjustment to CEU levels to reflect current reefer prices. - Excludes dry and reefer containers that will be 13 years or older upon expiration. 56

57 POTENTIAL REVENUE IMPACT OF LEASE RENEWALS Dry Up 20% Up 10% Current Market Down 10% Down 20% Refrigerated Up 10% Up 5% Current Market Down 5% Down 10% 57

58 NEAR-TERM OUTLOOK AND KEY EARNINGS DRIVERS We expect our Adjusted net income will increase throughout 2018» Most customers expecting solid volume growth in 2018» Improving seasonality should support dry container operating metrics» Benefits from ongoing fleet growth will accumulate through the year Key drivers of changes in profitability:» Fleet utilization expected to remain high through 2018 peak season» Used container sale prices likely to be supported by high utilization / limited availability» Expired lease per diems generally in line with current market rates» Largely fixed rate debt structure limits impact of rate increases» Fleet growth critical for long term; provides more limited impact in short term 58

59 PERFORMANCE TARGETS Performance Metric 2018 Target Long-Term Targets Asset growth / leasing revenue growth 7-10% Global GDP plus 3-6% Cash flow before capex > 80% of leasing revenue > 80% of leasing revenue Adjusted net income Moderate sequential growth throughout year Return on equity 15%-16% Mid-to-high teens 59

60 Capital Management 60

61 CAPITAL MANAGEMENT Triton s strong and stable cash flow provides capital allocation flexibility Triton maintains a well protected capital structure» Moderate leverage» Minimal interest rate risk» Staggered debt maturities Triton has access to a variety of efficient funding channels and is exploring new sources to maximize our financial advantages 61

62 CAPITAL ALLOCATION PRIORITIES 1. Maintain a strong and flexible balance sheet 2. Invest in containers to support our key customers 3. Deliver current returns to shareholders via dividends 4. For remaining equity capital, consider relative attractiveness of the following options:» Incremental investment / growth above market level» Share repurchases» Increased dividends» Reduction in leverage» Opportunistic acquisitions 62

63 CONSERVATIVE BALANCE SHEET ($ in mm) As of 3/31/18 Revenue earnings assets $8,769 Total assets $9,681 Debt, net of unamortized debt costs $6,953 Shareholders equity $2,134 Total equity $2,265 Leverage: Net debt to revenue earning assets (1) 78.4% Net debt to revenue earning assets (2) 73.6% (1) Net debt equals total debt plus equipment purchases payable less cash and cash equivalents. (2) Before purchase accounting. 63

64 WELL PROTECTED CAPITAL STRUCTURE Conservative Financing Strategy Minimal interest rate risk» 84% of total debt either fixed rate or swapped to fixed» Average remaining duration of fixed rate debt of ~4.3 years (includes swaps), which exceeds average lease duration Low refinancing risk» Focus on long duration debt» Well-staggered debt maturities» Cash flows before capex sufficient to meet near-term debt repayments, even with no roll-over High Percentage of Fixed-rate Debt (1) Staggered Maturity Profile (1, 5) Fixed / Hedged Balance (2) Average Life (yrs) (3) Average Rate (4) Fixed Rate $4, % Hedged Floating Rate 1, % Total Fixed / Hedged 5, % Unhedged Floating Rate 1, % Total Debt 7, % % of Debt Fixed / Hedged 83.7% (1) As of 3/31/18, $ in millions. (2) Balances gross of debt discounts at issuance. (3) Weighted by expected swap notional and principal balances at the end of each month. (4) Rate excludes the impact of debt discount amortization, deferred financing cost amortization and purchase accounting adjustments. (5) Cash Flow Before CapEx defined as Adjusted EBITDA (defined as net income before interest and debt expense, income tax expense and depreciation and amortization, and excludes transaction costs, net loss (gain) on interest rate swaps, insurance proceeds, and the write-off of deferred financing costs) less interest and debt costs plus NBV of disposals and principal payments on finance leases. 64

65 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 HEDGES PROTECT AGAINST RISING INTEREST RATES $8,000 $7,500 $7,000 $6,500 $6,000 Implied Debt Balance against NBV of Assets under Term Lease Implied Debt Balance against NBV of Total Revenue Earning Assets Fixed Debt + Swap Notional $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Note: Graph assumes debt to revenue earning assets of 75.0%. 65

66 TRITON HAS ACCESS TO MULTIPLE FUNDING CHANNELS Funding Overview Diverse Funding Mix (at 3/31/18) Balance sheet consists of secured fundings from multiple sources to minimize reliance on one channel Frequent issuer in the ABS, Private Placement and Bank Loan market Bank Term Loans 24% Revolvers and Other 2% ABS Term Notes 40% Benchmark issuer in the ABS market» Recent $450mm ABS offering at all-time tight spreads (swaps + 120bps for the A rated tranche) Private Placement Notes 34% Long-Term Fixed Rate Funding Costs 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Secondary Market Container ABS Pricing Spread Yield Source: Bank of America Merrill Lynch Research. 66

67 Conclusion 67

68 STRATEGIC PRIORITIES Extend Competitive Distance from Peers Exploit Incremental Growth Opportunities Product offerings Global service capability Operating efficiency and costs Financing sources Further penetration of leasing vs. direct purchase Sale-leaseback transactions Specialty container types Selective M&A Reduce Earnings Exposure to Market Risk Extend and stagger initial lease durations Shift more customers to lifecycle leases Enhance lease protections Optimize Capital Allocation Support market growth and dividend as first priority Allocate excess equity cash flows to best use 68

69 INVESTMENT HIGHLIGHTS Attractive Market Fundamentals Naturally resilient market with favorable supply / demand and pricing dynamics Significant Competitive Advantages Scale, cost, supply capability, and global marketing and operating advantages drive outperformance Compelling Growth Prospects Numerous market and Triton-specific growth levers support organic growth at a multiple of global GDP growth High Investment Returns Favorable market dynamics and Triton outperformance sustain high investment ROEs Strong, Stable Cash Flow Underpins shareholder returns and provides financial stability 69

70 Q&A 70

71 Appendix 71

72 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 Rate Index Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 DRYS On-Hire and Off-Hire (1) Drys Ending Monthly Utilization (Unit Basis) (2) 200, , ,000 50,000 0 (50,000) (100,000) On-Hires Off-Hires Net 100% 98% 96% 94% 92% 90% 88% 86% As of 3/31/2018 Breakout of Dry Lease Fleet (by NBV) Expired Term 10% Service 15% Idle Units 0% 120% 100% 80% Average Infleet Rate per CEU Fin Lease 3% 60% Current Term 72% 40% (1) On-hire volumes include new container absorptions and infleet lease-outs. Both on-hires and off-hires exclude oneway repositioning moves and sale leaseback activity. (2) Utilization excludes new unabsorbed units and units designated for sale. 72

73 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 Rate Index Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 REEFERS On-Hire and Off-Hire (1) Reefers Ending Monthly Utilization (Unit Basis) (2) 12,000 10,000 8,000 6,000 4,000 2,000 0 (2,000) (4,000) (6,000) Pick-Ups Drop-Offs Net 100% 98% 96% 94% 92% 90% As of 3/31/2018 Breakout of Reefer Lease Fleet (by NBV) Expired Term Service 7% 7% Fin Lease 4% Idle Units 1% 120% 100% 80% 60% Average Infleet Rate per Unit 40% Current Term 81% (1) On-hire volumes include new container absorptions and infleet lease-outs. Both on-hires and off-hires exclude oneway repositioning moves and sale leaseback activity. (2) Utilization excludes new unabsorbed units and units designated for sale. 73

74 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 CORE SPECIALS On-Hire and Off-Hire (1) Specials Ending Monthly Utilization (Unit Basis) (2) 5,000 4,000 3,000 2,000 1,000 0 (1,000) (2,000) (3,000) (4,000) (5,000) Pick-Ups Drop-Offs Net 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% Breakout of Specials Lease Fleet (by NBV) As of 3/31/2018 Service 21% Expired Term 10% Idle Units 3% 120% 100% 80% 60% Average Infleet Rate per CEU Fin Lease 1% Current Term 65% 40% (1) On-hire volumes include new container absorptions and infleet lease-outs. Both on-hires and off-hires exclude oneway repositioning moves and sale leaseback activity. (2) Utilization excludes new unabsorbed units and units designated for sale. 74

75 OTHER PRODUCT LINES Leverages operating network and systems to grow ancillary product lines» Tanks, Chassis, Palletwides, Rolltrailers Extends customer base to include:» Tank operators, ports, European short sea operators, beneficial cargo owners Provides capital allocation alternatives to core products» $358 million of NBV at 3/31/18» 4% of total revenue earning assets Tanks Chassis Palletwides Rolltrailers 75

76 SALE PRICES STRONG 125% 100% 75% 50% 25% 0% Dry Sale Price Trends Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 20' Index 40'HC Index Refrigerated Sale Price Trends 125% 100% 75% 50% 25% 0% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 40'HC Refrigerated Index 76

77 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Dollars in thousands) Q1 '15 Q2 '15 Q3 '15 Q4 '15 Net income attributable to shareholders $ 66,627 $ 62,910 $ 43,668 $ 26,095 Add (subtract): W/off of DFC & unrealized (gain) loss on derivative instruments, net 3,602 (1,934) 4,453 (2,451) Transaction and other costs 4,844 4,049 2,125 12,056 Adjusted net income (1) $ 75,073 $ 65,025 $ 50,246 $ 35,700 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Net income (loss) attributable to shareholders $ 15,164 $ 4,204 $ (51,211) $ 22,778 Add (subtract): W/off of DFC & unrealized (gain) loss on derivative instruments, net 4,188 2,414 (3,138) (7,775) Transaction and other costs 4,099 3,073 50, Foreign income and withholding tax adjustment - - 3,222 - Adjusted net income (loss) (1) $ 23,451 $ 9,691 $ (271) $ 15,325 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Net income attributable to shareholders $ 34,611 $ 45,671 $ 57,156 $ 207,160 $ 80,892 Add (subtract): W/off of DFC & unrealized (gain) loss on derivative instruments, net (1,252) 706 3,892 1,243 (1,052) Transaction and other costs 2, ,862 (26) Insurance recovery income (5,567) - One-time tax benefit related to U.S statutory rate reduction (139,359) - Adjusted net income (1) $ 35,425 $ 47,020 $ 61,108 $ 68,339 $ 79,814 (1) The combined financial information from Q and prior periods does not reflect results on a GAAP basis. GAAP finanicial statements relect only TCIL operations prior to the merger on July 12, 016, and can be found in the Company's 10-Q and 10-K filings. (1) The combined financial information from Q and prior periods does not reflect results on a GAAP basis. GAAP financial statements reflect only TCIL operations prior to the merger on July 12, 2016, and can be found in the Company's 10-Q and 10-K filings. 77