Yellow Corporation · OTC:YELLQ
Yellow — Merger or Acquisition (July 2003)
14 slides from Yellow's merger presentation, Jul 8, 2003
Slide 1: Yellow - Roadway Corporation
Yellow - Roadway Corporation July 8, 2003
Slide 2: A Strategic Combination
A Strategic Combination Complementary Expertise, Services and Technologies Complementary Expertise, Services and Technologies Complementary Expertise, Services and Technologies Industry Leading Technologies Making Global Commerce Work by Connecting People, Places & Information
Slide 3: The Right Strategy, the Right Partner, the Right Brands, at the Right Time
The Right Strategy, the Right Partner, the Right Brands, at the Right Time Advances Strategy Capitalize on strengths and minimize risks through continued investments in both companies' brands Strengthens Competitive Position Comprehensive portfolio of transportation services Grows premium services O
Slide 4: The Right Strategy: Benefits
The Right Strategy, the Right Partner, the Right Brands, at the Right Time Benefits Customers Key customer interfaces remain in place and unchanged Supported by industry leading technology Provides Stable Work Environment for Employees Favorable Financial Markets Potential of Economic Recovery Provi
Slide 5: Highlights of the Transaction
* Assumes a 50% cash election The Right Strategy, the Right Partner, the Right Brands, at the Right Time Highlights of the Transaction Offer of $48 per share - 50% cash, 50% stock* Roadway shareholders receive .962 shares of Yellow stock for every share they own* 15% collar, 33% walk-away Expect acc
Slide 6: Creates Significant Scale & Capabilities
Creates Significant Scale & Capabilities Estimated 2003 revenues of more than $6 billion Nearly 48,000 employees Significant North American networks Broad global and non-asset capabilities capabilities capabilities capabilities capabilities capabilities capabilities capabilities The largest North Am
Slide 7: Expanding Our Market through Complementary Services
Expanding Our Market through Complementary Services... Comprehensive coverage of North America Premium expedited and time-definite air and ground service Next-day and second-day regional services Global freight forwarding and customs brokerage service Specialized services for trade shows and high se
Slide 8: Technology that Benefits Customers & Creates Operational Efficiencies
Technology that Benefits Customers & Creates Operational Efficiencies... Efficient variable speed networks provide the ability to serve multiple markets Industry leading customer service capabilities Ability to manage costs with business volumes E-commerce connectivity with customers and trading par
Slide 9: Serving a Broad Array of Customer Requirements
Serving a Broad Array of Customer Requirements... Significant market presence Represented in all major industry segments Servicing customer needs in regional, national, and international markets National Service 0.53 Truckload 0.06 Specialized Services 0.13 1 and 2 day service 0.28
Slide 10: Cost Synergies Required to Be Accretive
Approximately $30 million of cost synergies required to be accretive in 2004, which represents: Less than 0.5% of operating expenses Less than 1.6% of non-labor costs Conservative case of $45 million in cost synergies Total potential cost synergies exceed $125 million Expect accretion within 12 mont
Slide 11: Pro Forma Leverage
Pro Forma Leverage Both companies will continue to reduce debt between now and year-end Strength of current balance sheets support transaction financing Free cash flow generation allows for rapid debt reduction NOPAT return on capital above cost of capital within 12 months of closing Debt to EBITDA
Slide 12: Summary of Strategic Combination
Summary of Strategic Combination Comprehensive portfolio of transportation services Continue to invest in and build both companies' brands Benefit for customers Minimal impact for employees Opportunities to leverage expertise and strengths Cost synergies required to be accretive are very attainable
Slide 13: Yellow - Roadway Corporation A Strategic Combination
Yellow - Roadway Corporation A Strategic Combination
Slide 14: Forward Looking Statements
Forward Looking Statements This presentation (and oral statements made regarding the subjects of this presentation, contains 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. The