C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2022 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, Feb 1, 2023
Slide 1: Q4 2022 Earnings Presentation
Scott Anderson, Interim CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q4 2022 Earnings Presentation February 1, 2023 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-loo
Slide 3: Q4 Highlights
Q4 Highlights ■ Unseasonably soft freight demand, driven by shippers managing through elevated inventory levels amidst slowing economic Q4 2022 growth ■ Staying focused on customers and $5.1B $768M carriers and accelerating delivery of our Total Revenues Adj. Gross Profit scalable digital operating
Slide 4: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1) Q4 2022 Adjusted Global Forwarding (GF) North American Surface Gross Profit(2) -39.0%
Slide 5: NAST Q4'22 Results by Service
NAST Q4’22 Results by Service Adjusted Gross Profit(1) ($ in millions) 4Q22 4Q21 %▲ ▪ Truckload volume down 4.0% year-over-year(2) Truckload (“TL”) $322.3 $316.0 2.0% ▪ Truckload AGP per shipment increased 6.5% due to a higher AGP per shipment on contractual volume(2) Less than Truckload (“LTL”) $14
Slide 6: YoY % Change in Price and Cost
Truckload Price and Cost Change (1)(2)(3) 50% 40% YoY % Change in Price and Cost 30% 20% 10% 0% -10% -20% -30% 2016 2017 2018 2019 2020 2021 2022 YoY Price Change YoY Cost Change Truckload Q4 ■ 65% / 35% truckload contractual / transactional volume mix, up from 55% / 45% in Volume(2)(4) -4.0 % Q4 la
Slide 7: NAST Adjusted Gross Profit $ per Truckload Shipment
Truckload AGP $ per Shipment Improved Year-over-Year NAST Adjusted Gross Profit $ per Truckload Shipment (left) NAST Adjusted Gross Profit Margin % (right) Average AGP $ per Truckload Shipment (left) 20% NAST Adjusted Gross Profit $ per Truckload 19% NAST Adjusted Gross Profit Margin % 18% 17% Shipm
Slide 8: Global Forwarding Q4'22 Results by Service
Global Forwarding Q4’22 Results by Service Adjusted Gross Profit (1) ($ in millions) 4Q22 4Q21 %▲ ▪ Inventory destocking and a slowdown in global demand impacting ocean and air pricing and volumes Ocean $120.2 $209.7 (42.7)% ▪ Ocean AGP decreased due to a 36.5% decrease in Air $31.5 $64.9 (51.5)% AG
Slide 9: All Other & Corporate Q4'22 Results
All Other & Corporate Q4’22 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 4Q22 4Q21 %▲ ▪ Increased revenue and AGP tied to integrated supply chain Robinson Fresh $28.5 $26.0 9.5% and technology services Managed Services Managed Services $29.8 $26.6 12.2% ▪ AGP growth driven by new
Slide 10: Sustainable Growth Strategy
Sustainable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage integrated ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic service model to Forwarding business and carriers the internal tools and growth by leveraging gr
Slide 11: Scalable Operating Model to Drive Profitable Growth
Scalable Operating Model to Drive Profitable Growth 11
Slide 12: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Loads booked digitally by carriers increased 183% year- over-year in 2022 ■ Increased automation of the order lifecycle: – Automation of appointment- related tasks increased 34% year-over-year in Q4 – 450 bps increase from Q3 to Q4 in the
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ Changes in cash from operations have been driven ■ $507 million of cash returned to shareholders in Q4 2022, up 128% primarily by sequential changes in operating working capital due to v
Slide 15: Appendix
Appendix 15
Slide 16: Q4 2022 Transportation Results
(1) Q4 2022 Transportation Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $4,798,027 $6,245,998 (23.2)% $23,516,384 $22,046,574 6.7 % Total Adjusted Gross Profits(2) $741,951 $832,404 (10.9)% $3,480,669 $3,05
Slide 17: Q4 2022 NAST Results
Q4 2022 NAST Results Three Months Ended December 31 Twelve Months Ended December 31, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $3,563,071 $3,896,025 (8.5)% $15,827,467 $14,507,917 9.1 % Total Adjusted Gross Profits(1) $502,266 $475,100 5.7 % $2,196,704 $1,792,953 22.5 % Adj
Slide 18: Q4 2022 Global Forwarding Results
Q4 2022 Global Forwarding Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $1,013,306 $2,144,056 (52.7)% $6,812,008 $6,729,790 1.2 % Total Adjusted Gross Profits(1) $188,749 $309,589 (39.0)% $1,083,473 $1,073,5
Slide 19: Q4 2022 All Other and Corporate Results
Q4 2022 All Other and Corporate Results Three Months Ended December 31 Twelve Months Ended December 31, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $490,444 $461,767 6.2 % $2,057,150 $1,864,431 10.3 % Total Adjusted Gross Profits(1) $77,159 $71,652 7.7 % $313,000 $285,595 9.6
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations and net income per share
Slide 23: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 23
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