Global commerce in motion.
Fourth Quarter & Full Year 2020 Earnings
Presentation
Global commerce in motion.
Q4 Financial Highlights – Continuing Operations
2
$34.7MRecord Net Income
21.2%Return on Equity
$81.6MRecord Container Lease Revenue
$46.7MRecord Operating Income
2.25%Average Cash Funding Rate
99.6%Quarter-end CEU Utilization
Global commerce in motion.
Strategic Priorities – Q4 2020 – CAI Overdelivered
3
• 21.2% - Q4 ROE from continuing operations
• Leased $154 million in new long-dated leases at mid-teen to low 20%
ROE’s – average lease tenor ~ 11 years
Capital allocation: Create value with significant free cash flow
• 20% increase in quarterly dividends to $0.30 per share
• Beginning Q4 2020, repurchased 639,000 shares (3.6% of outstanding
shares(1))
• Successful exit of Logistics and Rail businesses to simplify and optimize
free cash flow
Operating execution: Industry-leading container utilization
• 99.3% average Q4 CEU utilization
• 99.6% ending Q4 and 99.7% current CEU utilization
Return-focused strategy: Target mid-to-high teens ROE
(1) – Based on Q3 2020 ending share count
Global commerce in motion.
2020 in Review – Positioned to Drive Returns in 2021
4
Significant funding cost reduction with fixed rates over next 5+ years
• Average cash funding cost at end of Q4 2020 = 2.25% - 38% lower than
Q4 2019 = $24.1 million in annual interest savings(1)
• 83% of debt is fixed – with locked in rates including:
• 5-year swap on $500 million of RCF debt @1.79%
• $743 million ABS Securitization – 5-year WAL @ 2.27%
Successfully navigated COVID challenges
• Invested heavily in the 2nd half of 2020 at attractive returns
• $300 million new long-term leases
• ~9-year average lease tenor
• Mid teen to low 20% ROE
CAI is well positioned for 2021 with a high level of locked-in long-term
cash flow, low funding costs and industry leading operating efficiency
Exited non-core businesses
• Sold our Logistics business in August 2020
• Sold our Rail business in December 2020
(1) – Based on 12/31/2020 Funded Debt
Global commerce in motion.
Replacement Investment(1) 281.8
LTM Steady-state net cash flow
$ 84.8
Per share $ 4.77
Yield(2) 21.1%
Strong Cash Flow Generation Through the Cycle
$179
$222 $217 $206
$246
$300
$316
$367
$(100)
$-
$100
$200
$300
$400
$500
2013 2014 2015 2016 2017 2018 2019 2020
Container Leasing Cash Flow before Investment ($mn)
Cash Interest Expense + Preferred Stock Dividend
NBV of Container Disposals
Principal Payments
EBITDA
Cash Flow before Investment
5
Container Leasing Cash Flow before CapEx
LTM December 31, 2020 ($mn)
EBITDA 261.7
Principal payments on finance leases
80.8
NBV of container disposals 91.1
Major cash inflows $ 433.6
Cash interest expense 58.3
Preferred stock dividend 8.8
Cash flow before Investment
$ 366.5
(1) Replacement Investment = depreciation + principal payments on finance leases + NBV of container disposals(2) Yield calculated using LTM as of 12/31/2020 average stock price of $22.62
Steady-state net cash flow can fund $400 million of growth investment or is available to return to
shareholders
Global commerce in motion. 6
Free Cash Flow to Enhance Shareholder Returns
Opportunistic share repurchases can provide support for CAI’s
book value per share when container returns are less attractive
$84.8 million LTM 2020 “steady-state” net cash flow can be used
for investment in containers and / or capital return
~$50 million of free cash flow invested in containers at mid-teen
returns could increase CAI’s
annual earnings per share by approximately $0.50
Global commerce in motion.
Container Market Fundamentals Are Positive
7
Drewry Container Maritime Research most recent market forecast
2021 - 6.5% container fleet growth
2022 – 2025 estimated fleet growth 3.5% per annum
52% - 2020 = lessor share of global container fleet growth
54% - 2025 = estimated lessor share of global container fleet growth
Expect rising container prices 1H 2021
Prices expected to stabilize in 2H 2021
Long term – expect prices to remain elevated relative to historical
levels based on increasing input costs and manufacturers focus on
profitability rather than market share
Lessor and shipper container fleets expected to remain at full utilization
as shippers extend assets life in order to minimize the impact of high
container prices on the expected growth in global container demand
Container re-sale prices expected to remain elevated due to the level of
new container prices and high fleet utilization
✓
✓
✓
✓
✓
Global commerce in motion.
CAI outlook and value proposition
8
• Positive container market fundamentals
• High level of long-term committed cash flow
• Attractive container re-sale prices
• Industry-leading container utilization
• Locked in long term low-rate funding costs
CAI is well positioned to drive sustainable mid-
to-high teen ROE
ROE is the key to drive shareholder return via
book value growth and return of capital
Global commerce in motion. (1) Book value available to common shareholders
CAI at a Glance
CAI-Owned, Revenue-Earning Container Assets
$2.5BNet Book Value
Historical Quarterly Book Value1
$6.94
$34.07
CAGR: 12.5%
1.7Million CEU
9
Q22007
Q42020
$34.07
CAI-Owned Container Fleet
Book Value Per Share
Global commerce in motion.
172130 133
286
46
589
0%
20%
40%
60%
80%
100%
120%
140%
0
100
200
300
400
500
600
700
Lease Expiration by Year
Standard Dry Containers (80% of Fleet)
CEUs (000s) Per Diem Rate vs Fleet Avg.
40
73
34
70 69
56
0%
25%
50%
75%
100%
125%
150%
0
10
20
30
40
50
60
70
80
Lease Expiration by Year
Reefers and Specials (20% of Fleet)
CEUs (000s) Per Diem Rate vs Fleet Avg.
Lease Expiration Profile
10
• $1.6 billion in committed cash flow
• 92% of CAI’s on-lease containers are on long-dated operating and finance leases
• Those long-dated leases cover, on average, 70% of the containers’ remaining life
• Q4 2020 average new long term lease tenor was 11 years – trend moving towards long dated leases
Long-term committed cash flow drives ROE
Finance
leases24%
Long-term
leases68%
Master &
Short-term leases8%
CEU’s
Lease Types
Global commerce in motion.
Container Leasing – Q4 2020 - Strong Fundamentals
• Container operating income margin – 57.2%
• 99.3% (CEU) average utilization (owned)
• Current utilization of 99.7% (CEU)
• At the end of Q4 2020, ~92% of CAI’s on-lease container fleet (CEUs) were on long-term operating and finance leases
$76 $74 $76
$74
$69 $69
$74
$82
95%
96%
97%
98%
99%
100%
$30
$40
$50
$60
$70
$80
$90
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
Container lease revenues ($mn) - (left)
Utilization - (right)
$1,834 $1,866 $1,886
$1,855
$1,796 $1,750 $1,749
$1,776
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
Average operating lease assets ($mn) - (left)
Asset yield on container operating lease assets - (right)
(1) Asset yield = Annualized container lease revenue minus container interest income divided by average container operating lease assets
11
40 ft Dry57%
20 ft Dry22%
Reefers13%
Special8%
Equipment Types(CEU)
Global commerce in motion.
$28
$292
$417
$460
$336
$253
$229
$120
$487
$734
$319 $325
$(20) $(23) $(17) $(32) $(26)$(59) $(59) $(79) $(60) $(56) $(77) $(91)
$8
$269
$400 $428
$310
$194 $170
$41
$426
$678
$241 $234
$(200)
$(100)
$-
$100
$200
$300
$400
$500
$600
$700
$800
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD2020
Container Investment ($mn) Container Disposals ($mn) Net Investment
Disciplined Container Investment
12
2020
Global commerce in motion.
2.2%
24.9%
30.5%
20.1%
28.0%26.0%
40.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2016 2017 2018 2019 2020 Q3'20 Q4'20
$202
$235
$285 $299 $294 $296
$326
$0
$50
$100
$150
$200
$250
$300
$350
2016 2017 2018 2019 2020 Q3'20*Q4'20*
$41
$101
$150 $140
$149 $151
$187
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2016 2017 2018 2019 2020 Q3'20*Q4'20*
Storage, Handling & Misc Op. Ex ($mn)Container Lease Revenue ($mn)
Container Operating Income ($mn) Container Pre-Tax Margin
Dramatically Improving Fundamentals
13*Signifies annual run rate for specified quarter
$32
$15
$9
$18 $18 $19
$14
$0
$5
$10
$15
$20
$25
$30
$35
$40
2016 2017 2018 2019 2020 Q3'20*Q4'20*
Global commerce in motion.
$32 $31 $31 $31
$62
$53
$67
$61
$66
$79
$96
$9
$13 $13
$7 $7
($2)
($12)
$5
$10
$6
$9
$(15)
$(10)
$(5)
$-
$5
$10
$15
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD2020
Gain
($m
n)
Tota
l Pro
ceeds (
$m
n)
$ Proceeds ($mn) (left) $ Gain ($mn) (right)
Asset Values Supported by Gains On Sale
14
2020
Consistent gains on asset dispositions
validates underlying container book values
Total gain on asset disposition 2010 – 2020 = $65 million
Above data excludes the impact of total losses and the exercise of purchase options related to finance leases
Global commerce in motion.
1,160
1,283
1,569
1,7281,799
-
250
500
750
1,000
1,250
1,500
1,750
2,000
2016 2017 2018 2019 2020
962
225
308
84128
0%
20%
40%
60%
80%
100%
120%
140%
0
200
400
600
800
1,000
<2017 2017 2018 2019 2020
CEUs (000s) Per Diem Rate vs Fleet Avg.
On-Lease Fleet by Manufacturing YearNet Lease Outs (CEU) (000s)
Fleet Growth and Supply & Demand Trends
15
Utilization (CEU)Container Fleet (CEU) (000s)
191
288315
288 281
(185)
(83) (94)
(148)(132)
-250
-175
-100
-25
50
125
200
275
350
2016 2017 2018 2019 2020
Lease Outs Turn Ins Net Lease Outs
90%
92%
94%
96%
98%
100%
2016 2017 2018 2019 2020
Global commerce in motion.
Capitalization
Global commerce in motion.
Capitalization Summary – Q4 2020
17
Debt and Liquidity Profile
Floating Rate 17%
Fixed Rate 83%
Average Rate 2.25%
Average Debt Maturity
3.5 years
Current Liquidity(1) $250M
(1) Liquidity = excess availability on revolving credit facilities (borrowing base less loan balance)
Refinanced ABS Sept. 2020
Before After
Principal ($mn) $709.4 $742.7
Interest Rate 4.1% 2.3%
Savings180bps
~$11.4M in 2021
YE 2020 average rate of 2.25% is 38% lower than YE 2019 average rate of 3.6%
Global commerce in motion.
Appendix
Global commerce in motion.
CAI Historical Financial Results - Annual
19
Leasing revenue 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Container Revenue $292,008 $297,145 $283,352 $233,324 $200,186 $217,573 $210,756 $197,360 $157,603 $110,404 $66,937
Rail Revenue 22,949 26,130 35,703 32,476 30,490 17,433 10,336 7,179 2,972 0 0
Logistics revenue 66,304 117,687 111,471 80,552 61,536 11,434 0 0 0 0 0
Gain On Portfolio Sales 0 0 0 0 0 0 0 0 1,256 2,345 614
Management fee income 2,005 1,708 1,572 2,041 2,142 3,227 6,497 7,866 12,094 12,957 10,348
Total revenue $383,266 $442,670 $432,098 $348,393 $294,354 $249,667 $227,589 $212,405 $173,925 $125,706 $77,899
Operating expenses
Depreciation and impairment of rental equipment 135,899 150,122 121,298 110,952 104,877 113,590 77,976 67,109 48,352 33,633 20,807
Storage, handling and other expenses 23,490 24,315 14,545 20,918 35,862 30,264 26,043 19,257 9,402 5,513 6,170
Transportation costs 58,440 104,109 97,170 68,155 51,980 10,102 0 0 0 0 0
Loss (gain) on sale of used rental equipment 9,404 (13,892) (11,725) (5,347) 12,671 654 (6,522) (7,356) (12,445) (13,374) (9,112)
Administrative expenses 63,169 56,379 50,305 42,699 35,678 27,617 26,538 24,628 25,560 22,263 22,595
Total operating expenses $290,402 $321,033 $271,593 $237,377 $241,068 $182,227 $124,035 $103,638 $70,869 $48,035 $40,460
Operating income $92,864 $121,637 $160,505 $111,016 $53,286 $67,440 $103,554 $108,767 $103,056 $77,671 $37,439
Other expenses
Net interest expense 74,770 92,501 78,345 53,052 42,754 36,271 35,592 36,000 28,787 16,139 5,169
Other expense (651) 313 677 765 654 182 773 1,190 170 (366) 513
Total other expenses $74,119 $92,814 $79,022 $53,817 $43,408 $36,453 $36,365 $37,190 $28,957 $15,773 $5,682
Net income (loss) before income taxes and
non controlling interest$18,745 $28,823 $81,483 $57,199 $9,878 $30,987 $67,189 $71,577 $74,099 $61,898 $31,757
Income tax expense (8,988) (2,188) 2,887 (14,861) 3,844 4,252 7,191 7,057 9,818 11,084 3,555
Net income (loss) $27,733 $31,011 $78,596 $72,060 $6,034 $26,735 $59,998 $64,520 $64,281 $50,814 $28,202
Dividends on Preferred Stock 8,829 8,829 5,124 0 0 0 0 0 0 0 0
Net income attributable to non-controlling
interest0 0 0 0 (37) (134) (111) (594) (816) (625) 181
Net income (loss) attributable to CAI
common stockholders$18,904 $22,182 $73,472 $72,060 $5,997 $26,601 $59,887 $63,926 $63,465 $50,189 $28,383
Earnings Per Fully Diluted Share $1.06 $1.23 $3.71 $3.68 $0.31 $1.27 $2.83 $2.82 $3.18 $2.55 $1.56
Book Value Per Share $34.07 $33.72 $31.83 $27.65 $24.01 $22.81 $21.27 $18.64 $15.73 $11.92 $9.31
Global commerce in motion.
CAI Historical Financial Results - Quarterly
20
Leasing revenue Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018
Container Revenue $81,064 $73,339 $68,953 $68,652 $73,060 $75,023 $73,899 $75,163 $76,254 $74,958 $67,952 $64,261
Rail Revenue 5,702 5,162 6,282 5,803 5,916 5,871 6,462 7,881 8,721 8,759 9,119 9,104
Logistics revenue 0 13,550 22,648 30,106 29,899 30,270 29,802 27,716 30,220 31,362 28,253 21,636
Gain On Portfolio Sales 0 0 0 0 0 0 0 0 0 0 0 0
Management fee income 503 551 490 461 461 512 387 348 372 373 381 373
Total revenue $87,269 $92,602 $98,373 $105,022 $109,336 $111,676 $110,550 $111,108 $115,567 $115,452 $105,705 $95,374
Operating expenses
Depreciation and impairment of rental equipment 29,853 30,428 29,403 46,215 27,536 53,663 37,139 31,784 31,777 31,272 29,402 28,847
Storage, handling and other expenses 4,582 6,686 6,474 5,748 5,871 8,125 5,199 5,120 4,318 3,514 2,613 4,100
Transportation costs 0 12,092 19,533 26,815 26,462 27,037 26,091 24,519 26,634 27,541 24,330 18,665
Loss (gain) on sale of used rental equipment 15,855 (2,729) (2,108) (1,614) (1,627) (3,168) (265) (8,832) (4,186) (2,625) (2,719) (2,195)
Administrative expenses 11,549 9,821 29,973 11,826 15,293 13,322 13,368 14,396 14,035 12,869 12,160 11,241
Total operating expenses $61,839 $56,298 $83,275 $88,990 $73,535 $98,979 $81,532 $66,987 $72,578 $72,571 $65,786 $60,658
Operating income $25,430 $36,304 $15,098 $16,032 $35,801 $12,697 $29,018 $44,121 $42,989 $42,881 $39,919 $34,716
Other expenses
Net interest expense 16,532 20,270 17,592 20,376 22,348 23,098 23,205 23,850 23,223 19,783 18,440 16,899
Other expense (494) (306) (97) 246 (224) 380 119 38 167 116 429 (35)
Total other expenses $16,038 $19,964 $17,495 $20,622 $22,124 $23,478 $23,324 $23,888 $23,390 $19,899 $18,869 $16,864
Net income (loss) before income taxes and
non controlling interest$9,392 $16,340 ($2,397) ($4,590) $13,677 ($10,781) $5,694 $20,233 $19,599 $22,982 $21,050 $17,852
Income tax expense (4,854) 897 (1,771) (3,260) 955 (5,002) 200 1,659 192 1,228 753 714
Net income (loss) $14,246 $15,443 ($626) ($1,330) $12,722 ($5,779) $5,494 $18,574 $19,407 $21,754 $20,297 $17,138
Dividends on Preferred Stock 2,208 2,207 2,207 2,207 2,208 2,207 2,207 2,207 2,207 1,748 1,148 21
Net income attributable to non-controlling
interest0 0 0 0 0 0 0 0 0 0 0 0
Net income (loss) attributable to CAI
common stockholders$12,038 $13,236 ($2,833) ($3,537) $10,514 ($7,986) $3,287 $16,367 $17,200 $20,006 $19,149 $17,117
Earnings Per Fully Diluted Share $0.67 $0.75 ($0.16) ($0.20) $0.60 ($0.46) $0.18 $0.87 $0.89 $1.03 $0.97 $0.83
Book Value Per Share $34.07 $33.54 $33.25 $33.49 $33.72 $33.13 $33.55 $32.98 $31.83 $30.69 $29.72 $28.44