C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q1 2022 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 Earnings Presentation
Bob Biesterfeld, CEO Arun Rajan, CPO Mike Zechmeister, CFO Chuck Ives, Director of IR Q1 2022 Earnings Presentation April 27, 2022 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: Q1 Highlights: Record Quarterly Financial Results
Q1 Highlights: Record Quarterly Financial Results • Grew operating margins year-over-year in all segments Q1 2022 • Improved the health of our contractual Truckload portfolio and grew Truckload volume 4% year-over-year $6.8B $906.2M Total Revenues Adj. Gross Profit • Truckload AGP per mile improved
Slide 4: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of TTM total revenues and approximately half of TTM transportation adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services. Q1 2022 Adjusted Global Forwarding (GF) Nor
Slide 5: NAST Q1'22 Results by Service
NAST Q1’22 Results by Service Adjusted Gross Profit (1) ($ in millions) (2) 1Q22 1Q21 %▲ ▪ Truckload volume up 4.0% ▪ Truckload AGP per shipment increased 15.0% Truckload (“TL”) $334.9 $280.3 19.5% primarily due to a higher AGP per shipment on contractual volume (2) Less than Truckload (“LTL”) $150.
Slide 6: YoY % Change in Price and Cost
Truckload Price and Cost Change (1)(2)(3) 50% YoY % Change in Price and Cost 40% 30% 20% 10% 0% -10% -20% 2016 2017 2018 2019 2020 2021 2022 YoY Price Change YoY Cost Change • 60% / 40% truckload contractual to transactional volume mix, up from Truckload Q1 55% / 45% in Q1 last year Volume(2)(4) +4.
Slide 7: NAST Adjusted Gross Profit $ per Truckload Shipment
Improving the Health of our Truckload Portfolio 20% NAST Adjusted Gross Profit $ per Truckload 19% NAST Adjusted Gross Profit Margin % 18% 17% Shipment 16% 15% 14% 13% 12% 11% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 NAST Adjusted Gross Profit $ per Truckload Shipment NAST Adjusted Gross Pr
Slide 8: Global Forwarding Q1'22 Results by Service
Global Forwarding Q1’22 Results by Service Adjusted Gross Profit (1) ($ in millions) ▪ Ocean AGP increased due to a 52.5% increase in 1Q22 1Q21 %▲ AGP per shipment and a 7.0% increase in shipments (2) Ocean $221.4 $135.4 63.5% ▪ Ocean market impacted by strong demand and Air $60.6 $45.2 33.9% capaci
Slide 9: All Other & Corporate Q1'22 Results
All Other & Corporate Q1’22 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 1Q22 1Q21 %▲ ▪ 7.5% increase in case volume, across all verticals (2) Robinson Fresh $30.5 $24.9 22.3% ▪ Increased revenue tied to integrated supply chain and technology services Managed Services $28.1 $25.6
Slide 10: Tech-Plus Strategy: Unlocking Growth Across Suite of Services
Tech-Plus Strategy: Unlocking Growth Across Suite of Services Best-in-class solutions delivered through a global network of experts that you can rely on • Diversified, global suite of services • Technology built by and for supply chain experts • Proven, tailored, market-leading solutions that drive
Slide 11: Delivering Compelling Products & Solutions
Delivering Compelling Products & Solutions • 65% year-over-year increase in volume driven through our real- time, dynamic pricing tools in Q1 • Following enhancements to Navisphere Carrier in early February: ◦ Visits per day to Navisphere Carrier grew 45% from January to March ◦ Carriers booking loa
Slide 12: Financial Performance: Record Quarterly Results
Financial Performance: Record Quarterly Results ■ Changes in cash flow have been driven primarily by increases in operating working capital, partially offset by improvement in net income ■ When the cost of purchased transportation (inclusive of fuel surcharges), and subsequently prices, come down fr
Slide 13: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Capital Distribution ($M) Sustain & Drive Growth Optimize Balance Sheet ■ Optimize WACC by maintaining Cash Dividends ■ Prioritize high-return, close-in investments to drive organic investment grade credit ratings Share Repurchases growth ■ E
Slide 14: Sustainable Growth Strategy
Sustainable Growth Strategy Leverage position as world’s most powerful supply chain platform to sustainably outpace industry growth Take Share Digital Spend Commitment Strategically Grow Optimize Globally Processes ■ Leverage integrated ■ Expand Global ■ Provide customers & ■ Digitize more internal
Slide 15: 2022 Priorities
2022 Priorities • Continue driving long-term diversified growth across an intentional combination of modes, services and geographic footprint • Advance our tech-plus strategy to enhance, expand and leverage the most connected supply chain platform and deliver best-in-class, comprehensive solutions f
Slide 16: Appendix
Appendix 16
Slide 17: Q1 2022 Transportation Results
(1) Q1 2022 Transportation Results Three Months Ended March 31 $ in thousands 2022 2021 % Change Total Revenues $6,528,351 $4,560,227 43.2 % Total Adjusted Gross Profits(2) $878,127 $678,942 29.3 % Adjusted Gross Profit Margin % 13.5 % 14.9 % (140 bps) Transportation Adjusted 2013 2014 2015 2016 201
Slide 18: Q1 2022 NAST Results
Q1 2022 NAST Results Three Months Ended March 31 $ in thousands 2022 2021 % Change Total Revenues $4,114,889 $3,211,423 28.1 % Total Adjusted Gross Profits(1) $506,100 $421,108 20.2 % Adjusted Gross Profit Margin % 12.3 % 13.1 % (80 bps) Income from Operations $182,354 $136,784 33.3 % Adjusted Opera
Slide 19: Q1 2022 Global Forwarding Results
Q1 2022 Global Forwarding Results Three Months Ended March 31 $ in thousands 2022 2021 % Change Total Revenues $2,194,397 $1,156,039 89.8 % Total Adjusted Gross Profits(1) $321,848 $214,300 50.2 % Adjusted Gross Profit Margin % 14.7 % 18.5 % (380 bps) Income from Operations $167,638 $90,589 85.1 % A
Slide 20: Q1 2022 All Other and Corporate Results
Q1 2022 All Other and Corporate Results Three Months Ended March 31 $ in thousands 2022 2021 % Change Total Revenues $506,667 $436,407 16.1 % Total Adjusted Gross Profits(1) $78,248 $66,972 16.8 % Income from Operations -$4,518 -$4,044 NM Depreciation and Amortization $10,692 $11,004 (2.8)% Total As
Slide 21: 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 22: 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 23: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 23
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