EX-99.1 2 0002.txt Exhibit 99.1 [Genesee & Wyoming LOGO] [Picture of trains] Business Overview [Map illustrating North American and Australian Operations] Strategy: Consolidator in Global Genesee & Wyoming Inc. Railroad Privatization - Acquirer, owner and operator of - Acquire strategic properties regional freight railroads in with attractive financial the United States, Canada, returns - US and Australia and Mexico international - Provider of freight car - Create regional railroad switching and other rail networks through connecting related services to industrial short line acquisitions companies and ports - Increase revenue through - Revenues in 1999 of $175 focus on customer service - million with LTM revenues of take business from trucks $212 million - Reduce costs through G&W best - NASDAQ "GNWR" with market cap practices of $110 million Track Record of Execution --------------------------------------------------------------------------- 1997 1998 1999 LTM (a) ------------- ------------ ------------ ------------ Revenue $104 million $147 million $176 million $212 million EBITDA $23 million $29 million $35 million $45 million Net Income $8 million $11 million $13 million $13 million # of 1 S. Australia None 1 Mexico 1 W. Australia Acquisitions 1 Canada JV 1 Canada 1 Bolivia (a) Last 12 months ended September 30, 2000 Recent Announcements ----------------------------------------------------- - Australian Railroad Group, 50-50 Joint Venture with Wesfarmers Ltd, wins Westrail Freight privatization in Western Australia - Genesee & Wyoming purchases 22.55% stake in Bolivian railroad, the Oriental - Brown Brothers Harriman 1818 Fund invests up to $25 million of Convertible Preferred Stock - All transactions subject to customary closing conditions Global Acquisition Environment Country Acquisition Environment Recent Prospects -------------------- --------------------------------- ---------------- USA - Good due to reduced bid 6 Canada competition - Attractive if strategic or connecting synergies Australia - Privatization ongoing 4 - Market share growth opportunities - Good G&W presence Bolivia - "Option" and Invest Strategy 3 Mexico - Good revenue growth opportunities - Cost reduction opportunities Experienced Management Team Name Title Experience ------------------- ------------------------- ------------------------- Mort Fuller Chairman and Chief Chairman and CEO since Executive Officer 1977 Charles Marshall President and Chief Conrail; Southern Railway Operating Officer Jack Hellmann Chief Financial Officer Lehman Brothers; Schroders Mark Hastings Executive Vice President Senior Executive since -- Corporate Development 1978, including CFO and Treasurer Charles Chabot Senior Vice President -- 9 years at G&W including Australia 3 years in Australia; CSX; Booz, Allen & Hamilton Alan Harris Chief Accounting Officer 10 years at G&W Growth and Value Investment - LTM P/E: 7.8x Value Investment ----> - LTM EV/EBITDA: 4.7x - Relevant Comp: 10x - 13x P/E Growth Investment ----> - Q on Q earnings growth of 20%+ for past 18 months Investment in Global ----> - Unique global operator Rail Privatization Strong Cash Flow ----> - LTM EBITDA: $45 million - Free cash flow positive Geographic Overview [Map illustrating North American properties] Revenue by Geography [Pie graph illustrating the following:] Revenue by geography for the quarter ended September 30, 2000 United States: 46% Industrial Switching: 5% Australia: 19% Mexico: 16% Canada: 14% New York/Pennsylvania Region ------------------------------------------- Overview: - Building a regional railroad - $33 million 1999 revenue (18% of LQ) - Main products: petroleum, chemicals, [Map illustrating region] pulp and paper Recent Events: - NS/CSX take over of Conrail - New coal contract - Salt Mine -- Q2 '01 Oregon Region ------------------------------------------- Overview: - Building a regional railroad - $21 million 1999 revenue (10% of LQ) - Main products: newsprint, liner board, lumber, metals, stone [Map illustrating region] Recent Events: - Targeting traffic congestion around Portland - Morse Brothers contract - Gypsum plant [Map illustrating region] Illinois Region -------------------------------------------- Overview: - Serving 4 large utilities in Central Illinois - $24 million 1999 revenue (11% of LQ) - Main product: Coal Recent Events: - Strong coal volume - Powder River Basin - Illinois Power - Hennepin - Kincaid [Map illustrating region] Canada --------------------------------------------- Overview: - Initial entry as Geneseee Rail-One - $35 million run rate revenue (14% LQ) - Main products: pulp and paper, metals, grain, lumber Recent Events: - Consolidated since April 1999 - Good profitability under G&W Mexico: 1999 Privatization Overview: - Market entry via "option" in Linea Coahuila Durango - Formed Ferrocarriles Compania Chiapas-Mayab (FCCM) to win bid - FCCM start-up in September 1999 - 1,000 track miles - Products: stone, petroleum, agricultural, planned intermodal Achievements: - Revenues on budget - Strong operating ratio ahead of schedule - Profitable Mexico [Map illustrating Company's Mexican operations] [Map illustrating location of South Australia on the Australian continent] Australia Overview - 1997 successful privatization bid - US$43 million 1999 revenue (19% of LQ) - Main Products: grain, hook and pull, gypsum Recent Evenuts - ARG Joint Venture wins Westrail Bid - APTC (Alice Springs to Darwin line) - BHP contract - Additional privatizations [Map illustrating South Australian operations] [Picture of train in Australia] [FINANCIAL OVERVIEW] Strong Revenue Growth [Chart illustrating the following:] 1997 1998 1999 LTM ------ ------ ------ ------ Revenue 103.6 147.5 175.6 211.5 ($ million) 30% Compound Annual Growth Rate Strong Operating Income [Chart illustrating the following:] 1997 1998 1999 LTM ------ ------ ------ ------ Operating Income 16.4 19.6 22.4 31.0 ($ million) 17% Compound Annual Growth Rate Reported Net Income [Chart illustrating the following:] 1997 1998 1999 LTM ------ ------ ------ ------ Net Income 8.0 11.4 $12.5 $13.3 ($ million) 25% Compound Annual Growth Rate Continuing Net Income - Strong earnings growth over past 6 quarters - Driven by Canada, Mexico and normalized US coal shipments (in $ million) 1998 1999 LTM ------------------------------------------------------------- Reported Net Income $11.4 12.5 13.3 Continuing Net Income 7.6(a) 8.6(b) 14.3(c) EPS with constant shares $ 1.71 1.93 $3.21 Assumed share outstanding (d) 4.45 4.45 4.45 (a) Excludes $6 million gain from insurance settlement. (b) Excludes $4.2 million Australian tax gain and 262K extraordinary charge. (c) Excludes net impact of non-cash currency fluctuations. (d) Fully diluted shares outstanding as of 9/30/00. Annual EPS Growth: Quarterly Variability [Chart illustrating the following:] Q4 99 Q1 00 Q2 00 Q3 00 ----- ------ ----- ----- $0.84 $0.87 $0.85 $0.72 Note: Excludes extraordinary items and non-cash impact of currency fluctuations Positive Free Cash Flow [Chart illustrating the following:] 1997 1998 1999 ---- ---- ---- ($ millions) Cash Flow from Operations 6.3 23.8 29.3 Capital Expenditures, net* 11.0 13.7 24.9 Free Cash Flow 4.7 10.1 4.4 *Net of government grants and excluding acquisitions, sale-leasebacks & disposals. Capital Expenditure Composition [Chart illustrating the following:] United States - $13.7 million Government Grants - $10.9 million Surcharge to Class I - $ 1.4 million Canada - $ 0.6 million Mexico - $ 2.6 million Australia - $ 6.5 million 1999 Gross CapEx - $35.7 million 1999 Net CapEx - $24.8 million Capitalization 30-Sep-00 ----------------------------------------- Cash $ 9.0 Total debt $108.6 Net debt $ 99.6 Stockholders' equity $ 87.9 Total assets $311.2 ----------------------------------------- Total capitalization $196.5 Debt to Capitalization 55% Total Debt/LTM EBITDA 2.4x Genesee & Wyoming - Since our IPO in July 1996, G&W has been a growth investment. - Although the market today has made us a value investment, we remain focused on a disciplined acquisition strategy to maintain our future growth. - At current trading levels, we believe that G&W should be attractive to both growth and value investors. [Genesee & Wyoming logo]