Exhibit 99.1
![](j9392ex99d1image001.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image002.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image003.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image004.jpg)
Link to searchable text
of slide shown above
![](j9392ex99d1image005.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image006.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image007.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image008.jpg)
Link to searchable text of slide
shown above
![](j9392ex99d1image009.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image010.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image011.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image012.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image013.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image014.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image015.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image016.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image017.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image018.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image019.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image020.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image021.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image022.jpg)
Link to searchable text of slide shown
above
![](j9392ex99d1image023.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image024.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image025.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image026.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image027.jpg)
Link to
searchable text of slide shown above
![](j9392ex99d1image028.jpg)
Link to searchable
text of slide shown above
![](j9392ex99d1image029.jpg)
Link to searchable text of
slide shown above
![](j9392ex99d1image030.jpg)
Link to searchable text of slide
shown above
Searchable text
section of graphics shown above
Presentation to Investors
STEWART & STEVENSON
[LOGO]
April 2003
1
[LOGO]
Forward Looking Statements
Statements Contained in This Presentation
Which Are Not Historical Facts Could Be Considered Forward-looking Statements.
Such Forward-looking Statements Are Made Pursuant to the Safe Harbor Provision
of the Private Securities Litigation Reform Act of 1995. Actual Results May Differ Materially From
Anticipated Results. Forward-looking
Statements Involve Risks and Uncertainties Including the Effects of Government
Budgets and Requirements, Economic Conditions, Competitive Environment and
Timing of Awards and Contracts, in Addition to Other Factors Described in the
Companys Filings With the Securities and Exchange Commission Including the
Most Recent 10-K.
2
Overview Video
Stewart & Stevenson
3
Corporate Profile
Stewart & Stevenson is a Global System
Integrator and Aftermarket Support Organization for Energy Conversion and
Utilization Systems in Niche and Environmentally Challenging Applications.
Competitive Advantage is Achieved Through Speed, Application Skills, Customer
Relationships and Superior Service Utilizing Enabling Technology Provided by
Partners Who Have Scale.
Manufacturer, Distributor & Provider of
Service for Engine-Driven Equipment
Headquarters in Houston, Texas
$1.2 Billion U.S. Dollars Sales FY2002
3600+ Employees
800+ Service Techs & 200+
Engineering Positions
Focus on Four Business Groupings
[PHOTO
OF CORPORATE OFFICE HOUSTON, TEXAS]
4
NYSE Listing Update
[GRAPHIC]
Moved to NYSE October 18, 2002:
Expand Shareholder Base
Reduce Transaction Costs
Improve Trading Efficiency
Lower Volatility
Centralize Trading Information
Create Global Visibility
New Ticker Symbol SVC
5
Focus on Four Business Groupings
Fiscal Year 2002
[CHART]
$1776MM Sales
Power Products
Tactical Vehicle Systems
Engineered Products
Petroleum Equipment
Distributed Energy
Solutions
Utility Equipment
S&S Tug (Airline)
6
Power Products
FY2002 ($MM)
[CHART]
Parts & Service Sales 60% of
Total
Restructured Into 10 Trade Areas
Smaller Business Units Aimed at Driving Top Line Growth
Equipment, Parts, Rental, Service Solutions
43 Service Locations
800+ Service Techs
Industrial Equipment and Service
Significant Class 8 and Specialty Vehicle Engine,
Transmission, and Truck Parts & Service Business
Material Handling
Targeting Operating Margin
Improvement of 2-3% Over Next 1-2 Years
7
Power Products
[GRAPHIC]
8
Power Products Applications
[GRAPHIC]
9
Power Products Locations
[GRAPHIC]
10
Tactical Vehicle Systems
[GRAPHIC]
Soldiers with the lst squadron, Bravo Company, 2/502nd
board a Light Medium Tactical Vehicle (sic)
during a break in a 19-hour truck ride in blowing sand and high winds from Camp
New York into Iraq on Thursday.
11
Tactical Vehicle Systems
$451MM Sales FY2002
[GRAPHIC]
Sole Source Provider of 2½-Ton & 5-Ton Family of
Medium Tactical Vehicles (FMTV) to US Army Since 1991
Fifteen Vehicle Variants with 85% Component Commonality
Over 20,000 Vehicles Assembled
Facility in Sealy, Texas, Producing 2000+ Trucks &
Trailers Annually
Growing Aftermarket Support Infrastructure With
Facilities in Military Locations
E-Commerce Business for Repair Parts and Component
Repair Services
Technology Focus on Hybrid Electric, Suspension and
Braking, On-Vehicle Electronics, and Diagnostics
US Government R&D Program Funding Adds to
Technology Base
Lean Manufacturing and Innovative Supplier Partnering
Awarded $396 Million Production Contract Extension
Through September 2004
12
Tactical Vehicle Systems Outlook
[GRAPHIC]
Positioning to Win Next Multi-year Award Expected
FY2003
Five Year Program
Over 10,000 Vehicles
Same Proven Product With
Further Enhancements
Integrate Fabrication to Further Enhance Quality and Reduce Lead Times
Additional Sales Targeted to Other Branches of the US
Military and Allied Governments
UK MoD $2.0 Billion Bid With International Consortium
34 Consecutive Months of On-time Delivery20,000th
Vehicle Rolled Off Assembly Line on 3/26/03
13
Engineered Products Strategy
[GRAPHIC]
Top Line Growth
Market Rebound and Share Growth
New Product Introductions
Acquisitions
Product Line Extensions
Process Driven Productivity
JD Edwards
Product Structuring
Project Management
Synergies with Power Products & TVS
Shared Technology
Leveraged Service Infrastructure
Consolidating Onto One Campus
14
Petroleum Equipment
[GRAPHIC]
15
Petroleum Equipment
[GRAPHIC]
Equipment and Service Solutions for Land and Offshore
Oil & Gas Applications
Coil Tubing Systems
Fracturing Systems
Acidizing Systems
Remanufacturing
Global Business With Locations in Houston, Hong Kong,
Moscow
Technology Focus on Coil Tubing Systems, Electronic
Controls, Engine Application
New Proprietary Product Introduction and Service Growth
Focus
Sold Non-core Blowout Preventer, Valve, and Drilling
Riser Business in FY02
Unique Engineering Solutions in
Global Markets
16
Distributed Energy Solutions
[GRAPHIC]
17
Distributed Energy Solutions
[GRAPHIC]
Power Generation Solutions Land and Marine
Reciprocating Engine Generator Sets
Turnkey Power Plants
Installation Services
Operations and Maintenance Services
Equipment From 550 kW to 5700 kW
Complete Power Plants to 50 MW
Fabrication Facilities Located in Houston, Texas, and
Sacramento, California
Power Products Segment Performs Aftermarket Service and
Support
Detroit Diesel/MTU, EMD, Wartsila, Deutz, and Waukesha
Global Market Participant Providing
Distributed Energy Solutions
18
Utility Equipment
[GRAPHIC]
19
Utility Equipment
[GRAPHIC]
Equipment and Service Solutions
for Specialty Vehicles in a Niche Market
Rail King
Rail Car Movers
Snow Removal
Used by Airports
& State/Local Highway Departments
Input/Output Product Lines
Seismic Vibrators
for Geophysical Industry
Located in Houston, Texas
20
S&S Tug (Airline)
[GRAPHIC]
21
S&S Tug (Airline)
[GRAPHIC]
Manufacturer and Service Provider of Full Range of
Aircraft Ground Support Systems:
Baggage & Push Back Tractors
Ground Power
Belt Loaders
Air Starts
Air Conditioners
Facilities Near Atlanta, GA
Service Facilities on Airport Properties
Technology Focus
Emissions, Electric Propulsion, Drive
Train Systems
MXi Electric Propulsion Tow Tractor for Industrial
Plant Material Handling Applications
Market Growth Through Electric Products, Regional
Airlines, Military, and Specialty Material Handling
Acquired DAVCO January 2003
Regional and Governmental Airline Ground Support
Equipment
Global Market Participant With
Strong Customer Relationships
22
[LOGO]
Financial
Results
23
Strong Balance Sheet
[CHART]
Solid Asset Base
$652 Million in Total Assets
89% Comprised of Cash, Receivables, Inventory,
Property, Plant and Equipment
Positive Shareholders Equity
28.7 Million Common Shares Outstanding (Diluted)
$362 Million Total Shareholders Equity
$12.71 Book Value Per Share at End of FY2002
24
Low Corporate Debt
[GRAPHIC]
$58 Million Total Debt at the End of Fiscal 2002
$55 Million of Senior Unsecured Notes
$30 Million Due May 2003
$25 Million Due in 2006
Unsecured Revolving Credit Facility
Provides Up to $150 Million Including Letter of Credit
Facility
No Borrowings Under the Revolver at Year End
Loan Covenants Not Overly Restrictive
Debt Reduced $148 Million Since 1st
Quarter FY99
25
Positive Cash Generation
Net Cash
Provided by Operating Activities
|
|
65.9
|
|
Expenditures
for PPE
|
|
(27.0
|
)
|
Acquisition of
Businesses
|
|
(4.9
|
)
|
Dividends Paid
|
|
(9.7
|
)
|
Other
|
|
2.3
|
|
Total
|
|
26.6
|
|
$66 Million Cash Provided by Operations in Fiscal 2002
Capital Reinvestment Rate Approximates Depreciation
Plus Expansion
Minimal Cash Used for Acquisitions
Quarterly Dividend Paid for 57 Consecutive Quarters
Positive Cash Provided by Operations Expected to
Continue in Fiscal 2003
26
Excellent Liquidity Profile
Maintain Flexibility in Uncertain Times
$108 Million in Cash
$58 Million in Debt
$150 Million in Credit Availability
Strong Balance Sheet
Positive Cash Generation
Conservative and Selective Acquisition Criteria
Returns Must Be in Excess of Cost of Capital or Have
Synergistic Attributes to Enhance Businesses
Continuing To Evaluate Acquisition Candidates
Stock Repurchase Strategy
No Re-purchase Program in Place
Decision to Maintain Strong Liquidity
Cash is King
[GRAPHIC]
27
Sales & Earnings Trend
[GRAPHIC]
* Excluding $39 Million Settlement With US
Army
Sales Down Year Over Year $154 Million
Relatively Flat on a Quarterly Basis
Continuing Operations Remained Profitable for the Year
Despite Revenue Drop
$9.4 Million Net Income Decrease on $154 Million Drop
in Sales
Expectation is to Remain Profitable in FY03
Strong Cost Management in FY02
FY03
Cost and Top Line Focus
28
Summary
[GRAPHIC]
Major Focus on Power Products Revenue & Margin
Growth
Win U.S. Army ReBuy at TVS
Grow Service in All Business Units
Increase Margin Rates in Engineered Products
Launch New Products in Engineered Products
Utilize Information Management for Improved Customer
Service, Lower Costs, and e-Commerce
[GRAPHIC]
29
[LOGO]
Thank You!
30