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
<PAGE>
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
<PAGE>
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
<PAGE>
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%
<PAGE>
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
<PAGE>
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$43 million 1999 revenue (19% of LQ)
- Main Products: grain, hook and pull, gypsum
Recent Evenuts
- ARG Joint Venture wins Westrail Bid
- APTC (Alice Springs to Darwin line)
- BHP contract
- Additional privatizations
[Map illustrating South Australian operations]
[Picture of train in Australia]
<PAGE>
[FINANCIAL OVERVIEW]
Strong Revenue Growth
[Chart illustrating the following:]
1997 1998 1999 LTM
------ ------ ------ ------
Revenue 103.6 147.5 175.6 211.5
($ 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
<PAGE>
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 $0.72
Note: Excludes extraordinary items and non-cash impact of currency
fluctuations
<PAGE>
Positive Free Cash Flow
[Chart illustrating the following:]
1997 1998 1999
---- ---- ----
($ 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
<PAGE>
<PAGE>
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]
