EX-99.1 2 0002.txt Exhibit 99.1 [Picture of Train] Genesee & Wyoming Inc. o Acquirer, owner and operator of regional freight railroads in the United States, Canada, Australia, Mexico and Bolivia o Provider of freight car switching and other rail related services to industrial companies and ports o 2000 revenue of $169 million in North America o 50% ownership of joint venture in Australia with pro forma revenue of $190 million o NASDAQ "GNWR" with fully diluted market cap of $130 million [Map of Worldwide locations] North America Revenue by Geography* [Pie Chart illustrating the following:] United States: 63% Mexico: 19% Canada: 18% *For the year ended December 31, 2000 2000 Revenue: $169 million 2000 EBITDA: $36 million -2- Australia Revenue by Geography: 50% G&W Ownership* [Pie chart illustrating the following:] Western Australia: 77% South Australia: 23% * Pro forma for the 12 months ended December 31, 2000 2000 Revenue: $190 million 2000 EBITDA: $54 million -3- Strategy: Consolidator in Global Railroad Privatization o Acquire strategic properties with attractive financial returns - US and international o Create regional railroad networks through connecting acquisitions o Increase revenue through focus on customer service - take business from trucks o Reduce costs through G&W best practices o Diversification of earnings base -4- [Map illustrating New York/Pennsylvania Operations] Building a U.S. Regional Railroad New York/Pennsylvania Region: o Six contiguous acquisitions o $36 million revenue in 2000 o Main products: petroleum, chemicals, pulp and paper -5- Mexico: 1999 Privatization Overview: o Market entry via "option" in LCD o Start-up of FCCM in September 1999 - 1,000 miles o Products: stone, petroleum, agricultural Achievements: o Revenues on budget - $33 million in 2000 o Strong operating ratio -below 80% o Start-up of new intermodal and auto traffic in 2001 o IFC refinancing -6- [Map illustrating Mexican Operations] Building the Australia Franchise 8/97: G&W wins 12/99: G&W awarded bid for South rail operating contract Australia rail for Broken Hill privatization Proprietary Co. Ltd. (BHP) 1997 1998 1999 2000 1999: Asia Pacific 10/00: G&W forms Transport Consortium ARG and wins bid (APTC) nominated to for Western build Alice Springs to Australia rail Darwin rail line with privatization G&W as operator -7- [Map illustrating Australian Operations] Australian Railroad Group - ARG o Joint venture between G&W and Wesfarmers - equity accounting for G&W's 50% ownership o Largest private rail operator in Australia o Winning bidder for US$323 million privatization of the Western Australia freight system in December 2000 o G&W contributed Australia Southern Railroad and its interest in Asia Pacific Transport Consortium (APTC) to ARG -8- Australian Railroad Group - ARG o Diversified product mix includes alumina, grain, iron ore, nickel, and hook and pull o Significant expected industrial expansion in Western Australia and potential for operating efficiencies o Poor grain harvest in 2000 to normal in 2001 o Additional privatizations (National Rail, Freightcorp) -9- Financial Overview Track Record of Execution 1997 1998 1999 2000* ---- ---- ---- ----- Revenue $104mm $147 mm $176 mm $207 mm Net Income $8 mm $11 mm $13 mm $14 mm Diluted EPS $1.47 $2.19 $2.76 $3.11 Acquisitions S. Australia None Mexico W. Australia Canada JV Canada Bolivia * Note deconsolidation of South Australian subsidiary and equity accounting as of 12/16/00. -10- Presentation of Financial Statements o Presentation of two companies: GWI and ARG o Consolidated financial results for North America o Equity accounting for ARG and deconsolidation of ASR o Equity accounting for the Oriental (Bolivia) -11- GWI Financial Results Pro Forma For ARG* 9 Months Ended 9 Months September 30, 2000* Annualized ------------------- ---------- ($million) Net Income Before Equity Earnings $ 7.8 $ 10.4 Equity Earnings - ARG $ 6.8 $ 9.1 Net Income $ 14.5 $ 19.4 Diluted EPS $ 2.76 $ 3.68 GWI Reported EPS $ 2.25 $ 3.00 Accretion $ 0.51 $ 0.68 *As reported in Form 8-K dated 3/2/01 -12- Overview of Genesee & Wyoming North South Weighted America Australia America Total --------- --------- --------- --------- ($ million) GWI% Ownership 100%(a) 50% 22.6% Revenue $169 $190 $ 31 $271 EBITDA $ 36 $ 54 $ 16 $ 67 Net Income $ 10 $ 17 $ 8 $ 20 Balance Sheet: Total Debt $105 $272 $ 0(b) $241 Total Assets $342 $405 $ 69 $496 (a) Excludes 12.7% IFC interest in Mexico (b) Excludes $10.8 million non-recourse debt for a portion of the GWI investment -13- North America Revenue [Chart illustrating the following:] 1998 1999 2000 ---- ---- ---- North America Revenue 101 132 169 ($million) -14- 6 Cylinders of North America [Pie chart illustrating the following:] Canada 18% Mexico 19% Rail Link & Louisiana 15% Oregon 13% New York-Pennsylvania 21% Illinois 14% 2000 Revenue: $169 million 2000 EBITDA: $36 million -15- North America Operating Income [Chart illustrating the following:] 1998 1999 2000 ---- ---- ---- North America Operating Income ($ million) 11 16 24 Operating Ratio 89.3% 88.1% 85.9% -16- Strong Financial Position o Available Revolving Credit* --> $50 million o Total Debt* --> $105 million o Total Debt/EBITDA* --> 2.9x o Private Equity Sponsor --> Brown Brothers Harriman o Debt Financing in Mexico --> IFC--World Bank o JV Partner in Australia --> Wesfarmers *As of December 31, 2000, for North America consolidated financial statements -17- Growth and Value Investment Value Investment --> o First Call Consensus '01 P/E:6.5x o Relevant Comps '01 P/E:10x-15x ------------------------------------------------------------------------------ Growth Investment --> o 25%+ EPS CAGR since 1997 ------------------------------------------------------------------------------ Investment in Global Rail --> o Unique global operator Privatization o Strong financial sponsorship ------------------------------------------------------------------------------ Strong Cash Flow --> o Free cash flow positive -18- [Genesee & Wyoming logo] -19-