Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — FY2021 Earnings Presentation
34 slides from Gxo Logistics's earnings presentation, Feb 15, 2022
Slide 1: GXO Logistics Fourth Quarter and Full Year 2021 Results
GXO Logistics Fourth Quarter and Full Year 2021 Results February 15, 2022 ©2022 GXO Logistics, Inc.
Slide 2: Disclaimer
Disclaimer 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, which are set forth in the financial tab
Slide 3: Presenters
Presenters Malcolm Wilson Baris Oran Mark Manduca Chief Executive Officer Chief Financial Officer Chief Investment Officer ©2022 GXO Logistics, Inc. ©2021 3 3
Slide 4: Fourth quarter and full year 2021 highlights
Fourth quarter and full year 2021 highlights 4Q21 FY21 Revenue Revenue $2.3 billion $7.9 billion Organic revenue growth** Organic revenue growth** 19% 15% Net income* Net income* $56 million $153 million Adjusted diluted EPS growth** Adjusted diluted EPS growth** 70% 280% Adjusted EBITDA** Pro-forma
Slide 5: FY22 guidance raised
FY22 guidance raised PRIOR NEW Organic revenue growth 8% - 12% 8% - 12% Adjusted $705 - $740 $707 - $742 EBITDA* million million Adjusted ~$1.5 $1.5 - $1.6 EBITDAR* billion billion ©2022 GXO Logistics, Inc. * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related info
Slide 6: Key highlights – a quarter of records
Key highlights – a quarter of records Double-digit organic revenue* Highest-ever quarterly revenue, growth in every quarter of 2021, 1 adjusted EBITDA* and adjusted 2 accelerating to 19% in the fourth diluted EPS* quarter New wins through 2021 expected Sales pipeline reached an all-time to add ~$830
Slide 7: Recent wins and expansions
Recent wins and expansions ©2022 GXO Logistics, Inc. 77
Slide 8: New wins and increased contract scope with existing customers
New wins and increased contract scope with existing customers ~$5 billion ~$140 million in lifetime contract of incremental 2022 value won in FY21 revenue signed in the quarter New wins through the Revenue retention rate in the end of 2021 expected to add ~$830 million mid-to-high 90s since the spin
Slide 9: Massive secular tailwinds – opportunities continue to grow
Massive secular tailwinds – opportunities continue to grow Ecommerce Warehouse automation Outsourcing Ecommerce penetration1 Warehouse automation penetration2 % of logistics that is outsourced3 Currently insourced Outsourced Ecommerce opportunity Global ecommerce Automated warehouses Automation oppo
Slide 10: Record-breaking revenue driven by contract wins
Record-breaking revenue driven by contract wins FY21 business wins New Expansion of scope outsourced 31% contracts 36% Wins from competitors 33% ©2022 GXO Logistics, Inc. 1010
Slide 11: New contract wins underpin 2022 revenue growth
New contract wins underpin 2022 revenue growth Incremental 2022 revenue from contract wins $900 ~$830 million $800 $700 $600 $500 $400 $300 $200 $100 Prior 1Q21 2Q21 3Q21 4Q21 Total ©2022 GXO Logistics, Inc. 11
Slide 12: Another record sales pipeline
Another record sales pipeline Pipeline growth Pipeline by sales channel $2,600 ~$2.5 billion Ecommerce $2,500 49% $2,400 $2,300 $2,200 $2,100 $2,000 Other $1,900 51% 3Q21 4Q21 ©2022 GXO Logistics, Inc. 12
Slide 13: Ecommerce – accelerating growth from 3Q21
Ecommerce – accelerating growth from 3Q21 Ecommerce revenue growth Reverse logistics revenue growth 50% 30% 28% 45% 40% 25% 21% 30% 20% 22% 20% 15% 10% 10% 3Q21 4Q21 3Q21 4Q21 ©2022 GXO Logistics, Inc. | Confidential and Proprietary 13
Slide 14: Accelerating automation and technology leadership
Accelerating automation and technology leadership Total technology and Total goods-to-person automated systems systems +94% +103% ~30% of FY21 revenue FY20 FY21 FY20 FY21 is from automated sites ~200 new technologies tested in FY21 Vision tech Cobots +54% +223% FY20 FY21 FY20 FY21 ©2022 GXO Logistic
Slide 15: ‘AA’ ESG rating – an industry leader
‘AA’ ESG rating – an industry leader • On track to achieve sustainability targets E • 75% global landfill diversion rate achieved • New Vice President of Diversity, Inclusion and Belonging S • More than 11,000 participants in the Grow at GXO talent development program • Formed a new Global Risk Comm
Slide 16: 4Q21 – remarkable revenue growth
4Q21 – remarkable revenue growth $2,400 4Q21 Revenue bridge (In millions USD) 28% $2,262 Revenue growth $2,200 $2,000 ~19% Organic $1,800 $1,766 $1,600 ~10% $1,400 M&A $1,200 $1,000 4Q20 Revenue Organic M&A FX 4Q21 Revenue ~(1)% FX ©2022 GXO Logistics, Inc. 16
Slide 17: 4Q21 – record-breaking growth
4Q21 – record-breaking growth Organic growth by quarter* 20% 19% 18% 16% 16% 14% 13% 12% 12% 10% 8% 6% 4% 2% 1Q21 2Q21 3Q21 4Q21 ©2022 GXO Logistics, Inc. 1717 * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information
Slide 18: FY21 – stellar revenue growth
FY21 – stellar revenue growth $9,000 FY21 Revenue bridge (In millions USD) 28% Revenue growth $7,940 $8,000 ~15% $7,000 Organic $6,195 $6,000 $5,000 ~10% M&A $4,000 $3,000 FY20 Revenue Organic M&A FX FY21 Revenue ~3% FX ©2022 GXO Logistics, Inc. 18
Slide 19: 4Q21 – record net income and adjusted EBITDA
4Q21 – record net income and adjusted EBITDA (In millions USD) Net income* Adjusted EBITDA** $60 $170 $56 $167 $55 $165 $50 $160 $45 $155 $40 $150 $35 $146 $145 $30 $28 $140 $25 $20 $135 4Q20 4Q21 4Q20*** 4Q21 ©2022 GXO Logistics, Inc. * Net income attributable to common shareholders 1919 ** Refer t
Slide 20: FY21 – record net income and pro-forma adjusted EBITDA
FY21 – record net income and pro-forma adjusted EBITDA (In millions USD) Net income* Adjusted pro-forma $200 EBITDA** $700 $633 $153 +39% $150 $600 $500 $457 $100 +$184 million $400 $300 $50 $200 $0 $100 FY20 FY21 FY20 FY21 ($31) ($50) ©2022 GXO Logistics, Inc. * Net income attributable to common sh
Slide 21: Adjusted diluted EPS
Adjusted diluted EPS Adjusted diluted quarterly EPS* Adjusted diluted annual EPS* $2.20 $2.09 $0.85 $1.80 $0.73 $0.65 +70% $1.40 +280% $0.43 $0.45 $1.00 $0.25 $0.55 $0.60 $0.05 $0.20 4Q20 4Q21 FY20 FY21 * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related informat
Slide 22: FY21 – robust cash flow generation
FY21 – robust cash flow generation Cash flow from ~50% of capex is Free cash flow* operations technology $216 million $455 million investment * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information ©2022 GXO Logistics, Inc. 22
Slide 23: FY21 – solid balance sheet
FY21 – solid balance sheet Total debt*: $961 million Net debt: $628 million** 1.0x net debt to LTM adjusted EBITDA** Commitment to maintaining investment grade rating * Includes finance leases of $167 million at December 31, 2021 ©2022 GXO Logistics, Inc. ** Refer to the ‘Non-GAAP Financial Measures
Slide 24: More open book contracts, improved returns, higher margins
More open book contracts, improved returns, higher margins % of revenue from open Companywide adjusted book contracts pro-forma EBITA* 42% 38% margins 39% Companywide return on 5.0% 4.7% invested capital exceeds 4.0% 33% 3.5% 36% 30%* 33% 3.0% 30% 2.0% EOY 2020 EOY 2021 FY20 FY21 * Refer to the ‘Non
Slide 25: FY22 guidance raised
FY22 guidance raised Organic revenue 8% - 12% Depreciation and $260 - $280 million growth* (Unchanged) amortization** Adjusted EBITDA* $707 - $742 million Interest expense (Was $705 - $740 million) ~ $25 million Adjusted EBITDAR* $1.5 - $1.6 billion Tax rate ~ 25% (Was ~$1.5 billion) Return on inves
Slide 26: Appendix
Appendix ©2022 GXO Logistics, Inc. | Confidential and Proprietary 26
Slide 27: Reconciliation of Net Income to Adjusted EBITDA and margin
GXO Logistics, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA margin (Unaudited) Three Months Ended December 31, Years Ended December 31, (in millions) 2021 2020 2021 2020 Net income (loss) attributable to GXO 3 5S 2S 3S [eD) Net income attributable to noncontrolling
Slide 28: ©2021 GXO Logistics, Inc. ©2022 GXO Logistics, Inc.
©2021 GXO Logistics, Inc. ©2022 GXO Logistics, Inc. 28
Slide 29: Reconciliation of Net Income to Pro Forma Adjusted EBITA
GXO Logistics, Inc. Reconciliation of Net Income (Loss) to Pro Forma Adjusted EBITA and Pro Forma Adjusted EBITA margin (Unaudited) (in millions) Net income (loss) attributable to GXO™ $ (15) Net income attributable to noncontrolling interests’ 9 Net income (loss)'") a) Interest expense”) 32 Income
Slide 30: Reconciliation of Net Income and EPS to Adjusted
GXO Logistics, Inc. Reconciliation of Net Income (Loss) and Net Income (Loss) Per Share to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share (Unaudited) Three Months Ended December 31, Year Ended December 31, (Dollars in millions, shares in thousands, except per share amounts) 2027
Slide 31: Other Reconciliations
GXO GXO Logistics, Inc. Other Reconciliations (Unaudited) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow: Three Months Ended December 31, Year Ended December 31, (in millions) 2021 2020 2021 2020 ‘Net cash provided by operating activities $ 204 § (12) $ 455 § 333 Payment fo
Slide 32: Reconciliation of Net Debt and Net Leverage
Reconciliation of Net Debt: GXO Logistics. Liquidity Recon (Unaudited) inc. jations (in millions) December 31, 2021 Total Debt 961 Less: Cash and cash equivalents 333 Net debt 628 Reconciliation of Net Leverage: (Dollars in millions) December 31, 2021 Net debt Adjusted EBITDA” 611 Net Leverage 10x (
Slide 33: Reconciliation of Revenue to Organic Revenue
GXO Logistics, Inc. Reconciliation of Revenue to Organic Revenue (Unaudited) Reconciliation of Revenue to Organic Revenue: Three Months Ended (in millions) December 31, September 30, June 30, March 31, Revenue s 2262. «8 1974S 7,882 5 7,822 Revenue from acquired business (174) (163) (150) (118) Fore
Slide 34: Return on Invested Capital
GXO Return on Invested Capital (in millions) GXO Logistics, Inc. (Unaudited) Pro forma adjusted EBITA' Cash paid for income taxes Pro forma adjusted EBITA", net of taxes paid Total Equity Plus: Debt Less: Cash and Cash equivalents Less: Goodwill Less: Intangible assets, net Ratio of Return on Invest