Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Merger or Acquisition (March 2022)
14 slides from Xpo's merger presentation, Mar 8, 2022
Slide 1: XPO to create two standalone industry leaders: LTL and tech-enabled brokered transportation
INVESTOR PRESENTATION MARCH 2022 v XPO to create two standalone industry leaders: less - than - truckload and tech - enabled brokered transportation MARCH 2022 Spin - Off and Divestitures Exhibit 99.2
Slide 2: Disclaimers
INVESTOR PRESENTATION MARCH 2022 Disclaimers 2 NON - GAAP FINANCIAL MEASURES As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non - GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP,
Slide 3: Disclaimers (cont.)
INVESTOR PRESENTATION MARCH 2022 Disclaimers (cont.) 3 FORWARD - LOOKING STATEMENTS This presentation includes forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended, including s
Slide 4: Highlights of the plan
INVESTOR PRESENTATION MARCH 2022 4 Highlights of the plan XPO’s spin - off of its tech - enabled brokered transportation services to its shareholders would transform the remaining business into a pure - play less - than - truckload (LTL) company ▪ The company is planning a spin - off of its asset -
Slide 5: Standalone, tech-enabled brokered transportation leader
INVESTOR PRESENTATION MARCH 2022 5 Standalone, tech - enabled brokered transportation leader 1 Includes the company’s truck brokerage, last mile logistics, managed transportation and global forwarding operations Note: for reconciliations of brokered transportation adjusted EBITDA, and truck brokerag
Slide 6: Standalone, pure-play less-than-truckload (LTL) leader
INVESTOR PRESENTATION MARCH 2022 6 Standalone, pure - play less - than - truckload (LTL) leader Note: for reconciliations of less - than - truckload adjusted EBITDA, adjusted operating margin improvement and net cash, see page 1 2 1 Excluding gains from sales of real estate SIGNIFICANT COMPETITIVE A
Slide 7: Greater focus on strategic priorities
INVESTOR PRESENTATION MARCH 2022 7 Greater focus on strategic priorities ▪ Each company will benefit from an undiluted focus on strategic priorities, customer requirements and stakeholder interests, with its own management team and culture, and greater flexibility to tailor strategic decision - maki
Slide 8: Solving the valuation discount
INVESTOR PRESENTATION MARCH 2022 XPO’s spin - off of its GXO logistics segment in 2021 was a highly successful strategy, unlocking significant stakeholder value as a contract logistics pure - play 8 Solving the valuation discount Many of XPO’s industry peers trade at significant valuation premiums t
Slide 9: Profiles of planned divestitures
INVESTOR PRESENTATION MARCH 2022 XPO intends to divest its European business through either a sale or a listing on a European stock exchange, and is under an exclusivity agreement in connection with a potential sale of its North American intermodal operation 9 Profiles of planned divestitures XPO ex
Slide 10: Appendix
Appendix
Slide 11: Reconciliation of adjusted EBITDA attributable to the planned spin-off
INVESTOR PRESENTATION MARCH 2022 RECONCILIATION OF ADJUSTED EBITDA ATTRIBUTABLE TO THE PLANNED SPIN - OFF Financial reconciliations The following table reconciles XPO’s operating income attributable to the planned spin - off operations (1) for the year ended December 31, 2021 to adjusted EBITDA for
Slide 12: Financial reconciliations (cont.)
INVESTOR PRESENTATION MARCH 2022 Financial reconciliations (cont.) The following table reconciles XPO’s operating income attributable to its North American less - than - truckload business for the ye ars ended December 31, 2021, 2020, 2019, 2018, 2017 and 2016 to adjusted operating income, adjusted
Slide 13: Reconciliation of North American truck brokerage margin
INVESTOR PRESENTATION MARCH 2022 $ in millions (unaudited) Change % Revenue $ 2,749 $ 1,684 63.2% Cost of transportation and services (exclusive of depreciation and amortization) 2,322 1,398 Margin (2) $ 427 $ 286 49.3% Years Ended December 31, 2021 2020 RECONCILIATION OF NORTH AMERICAN TRUCK BROKER
Slide 14: Slide 14