Slide 1: 2Q 2022 Earnings Presentation
2Q 2022 EARNINGS PRESENTATION August 3, 2022
Slide 2: Disclosure Statement
DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Lit
Slide 3: Werner Overview
Derek Leathers Chairman, President and Chief Executive Officer Werner Overview 2Q 2022
Slide 4: Werner Overview
WERNER OVERVIEW PREMIUM TRUCKLOAD TRANSPORTATION & LOGISTICS SERVICES PROVIDER 8,400 TTS Trucks1 Omaha, NE $2.8B 14,341 1.1% Headquarters Market Cap1 Associates2 Dividend Yield1 5,320 3,080 Dedicated1 One-Way1 2021 REVENUES BY SEGMENT 2021 REVENUES BY VERTICAL 2021 REVENUES BY CUSTOMER 2% 23% Top 5
Slide 5: 2Q 2022 Financial Highlights
2Q 2022 FINANCIAL HIGHLIGHTS Adjusted EPS3 Trending $1.20 $4.00 Adj Qtr EPS $1.00 $3.50 Revenues 29% to $836M 4 Qtr Rolling Adj EPS $0.80 $3.00 GAAP EPS 6% to $1.12 $0.60 $2.50 $0.40 $2.00 Adjusted EPS1,3 1% to $0.87 $0.20 $1.50 Adjusted operating income1,3 (2%) to $77.6M $0.00 $1.00 Adjusted TTS op
Slide 6: 2Q 22 Company and Segment Financial Results
John Steele EVP, Treasurer and Chief Financial Officer 2Q 2022 Company and Segment Financial Results
Slide 7: 2Q 2022 Financial Performance
2Q 2022 FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income1 ($M) Adjusted EPS1 and Adjusted Operating Margin1 25. 0% $12 0.0 $11 0.0 $85 0 $84 0 $836 $10 0.0 20. 0% $83 0 $82 0 $0.86 $0.87 $81 0 $80 0 $79 0 $78 0 $90 .0 $79.1 $77 0 $76 0 $75 0 $650 $74 0 $77.6 $73 0 $72 0 $71 0 $70
Slide 8: Truckload Transportation Services (TTS) Results
TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 2Q20 2Q21 2Q22 2Q22 vs. 2Q21 Revenues ($M) $445.1 $491.2 $613.6 25% Adjusted Operating Income1 ($M) $56.1 $74.4 $66.2 (11%) Adjusted Operating Margin1, 2 13.7% 17.1% 13.4% (370) bps Adjusted Operating Ratio1, 2 86.3% 82.9% 86.6% 370 bps YoY Commentary
Slide 9: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE Trucking Revenues 2 ($M) Average Trucks Revenues / Truck / Week2 DEDICATED TRUCKLOAD $300 5,184 $4,452 $262 4,613 4,949 $3,983 $4,079 $239 2Q20 2Q21 2Q22 2Q20 2Q21 2Q22 2Q20 2Q21 2Q22 $25 0 ONE-WAY TRUCKLOAD $20 0 $188 $168 $166 3,149 3,102 $4,709 $4,665 2,715 $4,103 $15 0
Slide 10: Werner Logistics Results
WERNER LOGISTICS RESULTS 2Q20 2Q21 2Q22 2Q22 vs. 2Q21 Revenues ($M) $110.2 $141.7 $203.9 44% Revenues, less purchased $17.3 $17.3 $37.6 118% transportation expense ($M) Adjusted Operating Income ($M)1 $3.1 $3.9 $13.0 +$9.1M Adjusted Operating Margin1 2.8% 2.8% 6.4% 360 bps YoY Commentary (2Q22 vs. 2
Slide 11: Durable and Resilient Revenues and Customer Mix
DURABLE AND RESILIENT REVENUES AND CUSTOMER MIX STRUCTURED TO PRODUCE STRONG EARNINGS AND FREE CASH FLOW Resilient, Consumer Oriented Freight Base Improved Revenue Mix Leading To Greater Durability 2015 Top 50 Revenues1 Dedicated 46% Customers* 8% Logistics 19% TTS 81% OWT 36% Discount Retail 54% 18
Slide 12: Strong FCF Generation; Expected to Continue
STRONG FCF GENERATION; EXPECTED TO CONTINUE COMMENTARY ($M) • FCF generation of $140M in 2021 $446 • 2022 Net CapEx expected to be $418 $427 in the range of $275M to $325M; over the long-term, targeting Net $349 CapEx at 11-13% of annual $333 revenues $283 $284 $266 • Investment focused on maintaini
Slide 13: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION PRIORITIES Capital Allocation History Continual and Consistent Investment in the Business 2018-2021 $1.9B • Reinvestments in new, feature-rich trucks and trailers, including the latest safety technology, that extend sustainable competitive Share Buybacks advantages for
Slide 14: Business Update & Financial Outlook
Derek Leathers Chairman, President and Chief Executive Officer Business Update & Financial Outlook
Slide 15: The Evolution of the 5 Ts + S – Introducing Werner Drive
THE EVOLUTION OF THE “5 Ts + S” – INTRODUCING WERNER DRIVE OUR CORE. OUR ADVANTAGE. OUR FUTURE. Proactive Asset Management Sustainability For Our People, Our Planet Relentless Focus and Our Profitability on Value Delivery A Company that Now and for the Future Cares and Delivers Investing Mindset 15
Slide 16: The Evolution of Our ESG Effort
THE EVOLUTION OF OUR ESG EFFORT “While ESG concepts have long been woven into the fabric of Werner’s history, the release of our inaugural CSR report further elevates our commitment to conducting business in a socially and environmentally responsible manner. We are excited to demonstrate our ongoing
Slide 17: 2022 Guidance Metrics and Assumptions
2022 GUIDANCE METRICS AND ASSUMPTIONS Prior Guidance Actual New Guidance Commentary (as of 5/3/22) (as of 6/30/22) (as of 8/3/22) 2022 Guidance 2% to 5% 1% 2% to 5% Subject to availability of drivers and new TTS truck growth from BoY to EoY (annual) (YTD22) (annual) equipment; growth focused in Dedi
Slide 18: Q&A
WERNER WE KEEP AMERICA MOViNGs Q&A
Slide 19: Invest With Us
INVEST WITH US ✓ Positioned for strong performance in a truckload freight market that is beginning to moderate from peak levels • Large, stable and growing Dedicated fleet with winning customers who value our superior service; attractive driving positions with frequent home time • Diversified One-Wa
Slide 20: Appendix
WERNER WE KEEP AMERICA MoviNge Appendix
Slide 21: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 21
Slide 22: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 22
Slide 23: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 23
Slide 24: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 24
Slide 25: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 25
Slide 26: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (unaudited) (In thousands) 26
Slide 27: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 27
Slide 28: Thank you
Thank you FOR MORE INFORMATION, VISIT WERNER.COM