1Genesee & Wyoming Inc. Association of Car Accounting and Car Service Officers Austin, Texas...

1Genesee & Wyoming Inc.

Association of Car Accounting and Car Service OfficersAustin, Texas

November 12, 2014


Genesee & Wyoming Inc. 1899

The originalGenesee & Wyoming Railroad;

14-miles in upstate NYserving one customer

that we still serve today


G&W Board of Directors 1899


Early G&W Power


Origin of G&W Logo

Milton Glaser: “America’s most celebrated designer.”November, 1977


Genesee & WyomingG&W (2014) – U.S., Canada, Australia, The Netherlands and BelgiumGenesee & Wyoming Inc. 2014


• Listed on NYSE (“GWR”)with $1.6 billion of revenues

• Own 112 railroads and employ 5,000 people serving 2,000 customers

• Operate over 15,000 track miles with ~1,000 locomotives

• 11 operating regions worldwide

Today


43,000 U.S. Short Line Track Miles

23%

Rest of Industry 77%

Total Class II & III miles per ASLRRA


Broadest Geographic Coverage in North America with Significant International Diversity

Region G&W UP BNSF CN CP KCS NS CSX

Northwest

Southwest

Midwest

Southeast

Northeast

Canada

Mexico

International


1978 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

$3 77.795103.643

147.472175.586206.53173.576209.54244.827270.5350.4

450.7516.2

602544.9

630.2

829.1875

1569$1,650

Consistent Long-Term Growth($ millions)

Revenue CAGR ~19% from IPO thru 2013≈


Revenue Diversity by Geography

U.S. 70%(8 Regions)

Australia 20%

Canada

9%

Europe 1%


Revenue Diversity by Commodity

Coal & Coke; 10.0%Minerals & Stone;

10.0%

Agricultural Products; 12.0%

Metals; 11.0%

Pulp & Paper; 9.0%Chemicals & Plas-

tics; 11.0%

Lumber & Forest Products; 7.0%

Petroleum Products; 5.0%

Metallic Ores; 10.0%

Intermodal; 7.0%

Food or Kindred Products; 3.0%

Waste; 1.0% Autos & Auto Parts; 2.0%Other; 2.0%

2014 Freight Revenue* by Commodity (Q3 Run Rate)

*Freight revenue is 75% of total revenues


G&W’s Decentralized Operating Philosophy

Eleven regions with strong local management backed by centralized corporate staff support

•Continuous Safety Improvement

•Focused Regional Marketing

•Lower Operating Costs

•Efficient Use of Capital

Our local focus is key to G&W’s strong safety and customer-satisfaction results


G&W Revenue By Region

• In 1999, G&W had 21 railroads and $175 million in revenues

• Today, an average G&W region has 10 railroads and $150 million in revenues

Australia

Central

Ohio Valley

SouthernCoastal

Pacific

Canada

Northeast

Midwest

MtnWest


Mountain West Region

Safety Finance HR ITMarketi

ng/Sales

Transportation

Mechanical

Engineering

Regional Operating Structure:Designed to be Close to Customers

Customers15


Our Core Purpose

To be the safest and most respected rail service provider in the world.


Industry-Leading Safety Performance2014 Injury-Frequency Rate per 200,000 man-hoursG&W through September; others through July

FRA Group

3

FRA Group

2

KCS NS Class I Avg

UP BNSF CSX G&W RRs

3.31 3.24

1.63

1.17 1.12 1.04 0.98 0.97

0.49


G&W Railroad Injury Frequency Rate and Number of Employees

20022003200420052006200720082009201020112012201320140

0.5

1

1.5

2

2.5

0

1000

2000

3000

4000

5000

6000Injury Frequency Rate per 200,000 Man-Hours

Employees


Respected by Our Customers:Industry-Leading Customer Satisfaction


Respected by Our Customers:Gross Capital Investment

2010 2011 2012 2013 2014B$0

$50

$100

$150

$200

$250

$300

$350

$120

$179

$232

$268

$325

($ m

illio

ns)


Respected by Class I Partners2014: 1.7MM* G&W Carloads Interchanged

404,000

328,000

155,000

70,000

279,000

408,000

59,000

*Q3 Run Rate


In recent years, our employees made 1,000 Operation Lifesaver presentations to more than 50,000 schoolchildren, school bus drivers and others on the importance of rail-crossing safety.

Respected by Our Communities: G&WCommunity


20002000

20012002

20022003

20042004

20052006

20062007

20082008

20092010

20102011

20122012

20132014

2014$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Class 1 Rails

S&P 500

Respected by Our Shareholders: Consistent Share Price Appreciation$100 Invested January 2000


Components of Growth

1.Traditional Class I spinoffs after Staggers Act


1. Traditional Class I spinoffs “First & Last Mile” to the Customer



2.Railroads embedded in industrial facilities


2. Embedded Industrial Railroads Non-Core Competence for Owners



3.Contiguous railroads as building blocks of regional rail systems


3. Contiguous RailroadsBuilding Regional Rail Systems

1977 Genesee & Wyoming Railroad (GNWR)

1985 Dansville & Mount Morris Railroad (DMM)

1986 Rochester & Southern Railroad (RSR)

1988 Buffalo & Pittsburgh Railroad (BPRR)

1992 Allegheny & Eastern Railroad (ALY)

1996 Pittsburg & Shawmut Railroad (PS)

2001 South Buffalo Railway (SB)

2008 Ohio Lines


3. Contiguous RailroadsBuilding Regional Rail Systems

1977 Genesee & Wyoming Railroad (GNWR)

1985 Dansville & Mount Morris Railroad (DMM)

1986 Rochester & Southern Railroad (RSR)

1988 Buffalo & Pittsburgh Railroad (BPRR)

1992 Allegheny & Eastern Railroad (ALY)

1996 Pittsburg & Shawmut Railroad (PS)

2001 South Buffalo Railway (SB)

2008 Ohio Central railroads

2012 RailAmerica railroads



4.Internationalprivatizations


4. International Privatizations G&W in Australia: de facto Class I Railroad



5.Mining-focused railroads serving Asian industrialization


5. Mining-Focused Railroads Serving Asian Industrialization

Iron Ore Mines in Canada



6.Consolidation of short line industry with G&W acquisition of RailAmerica


G&W acquisition of RailAmerica:Natural progression in the evolution of the rail industry since deregulation

Step 1: rationalization and dramatic improvements by Class I railroads; industry now capable of earning its cost of capital and reinvesting in its network for decades to come


G&W acquisition of RailAmerica:Natural progression in the evolution of the rail industry since deregulation

Step 2: consolidation of lower-density short lines, creating the ability to invest in long-term infrastructure and provide customers world-class service from door to door


Beyond the First and Last Mile

• Short line industry has matured greatly since its birth in 1980

• Successful business model of being close to customers with entrepreneurial decision-making unchanged

• Transformation from “Mom & Pop” railroads to professional, well capitalized partners to support customer growth in the U.S. and abroad

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