Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — Q3 2021 Earnings Presentation
22 slides from Gxo Logistics's earnings presentation, Nov 1, 2021
Slide 1: GXO Third Quarter 2021 Results
GXO Third Quarter 2021 Results November 1, 2021 ©2021 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 ©2021 GXO Logistics, Inc. 3
Slide 4: 3Q21 highlights – FY21 guidance raised
3Q21 highlights – FY21 guidance raised 3Q21 FY21 outlook raised Revenue Revenue $2 billion $7.6-$7.8 billion (Was $7.5-$7.7 billion) Net income* $72 million Pro-forma adjusted EBITDA** $607-$637 million (Was $605-$635 million) Adjusted EBITDA** $163 million * Net income attributable to common shareh
Slide 5: New wins and start-ups in 3Q21
New wins and start-ups in 3Q21 ©2021 GXO Logistics, Inc. 5
Slide 6: New wins and increased contract scope with existing customers
New wins and increased contract scope with existing customers >$4 billion in lifetime contract value ~50% of revenue from won year-to-date customers across 2+ countries New wins to date expected to add Added 22 new sites for 16 of top ~$700 million of incremental 2022 revenue 20 customers year-to-da
Slide 7: ‘AA’ ESG rating – an industry leader
‘AA’ ESG rating – an industry leader ‘AA’ ESG rating issued by MSCI, highlighting GXO as a “leader in the industry” New Vice President of Diversity, Inclusion and Belonging GXO recognized by the HRC on the Corporate Equality Index for LGBTQ+ inclusion Partnership with Virgin Media recognized for adv
Slide 8: 3Q21 – strong YoY revenue growth
3Q21 – strong YoY revenue growth $2,500 3Q21 Revenue bridge (in millions) 24.6% Revenue growth $1,974 $2,000 $1,584 ~12% Organic $1,500 $1,000 ~10% M&A $500 ~2% $0 3Q20 Revenue Organic M&A FX 3Q21 Revenue FX ©2021 GXO Logistics, Inc. 8
Slide 9: 3Q21 – record net income and adjusted EBITDA
3Q21 – record net income and adjusted EBITDA (in millions) Net income* Adjusted EBITDA** $80 $170 $72 $163 $70 $160 $150 $60 $142 *** $50 $42 $140 Growth driven by: $130 $40 • New customer wins $120 $30 $110 • Existing business $20 $18 $100 $10 $90 • Operational efficiencies $0 3Q20 3Q21 $80 3Q20 3Q
Slide 10: 3Q21 – robust cash flow and balance sheet
3Q21 – robust cash flow and balance sheet Cash flow from operations $105 million Free cash flow* $50 million Technology ~50% of capex Total debt**: $974 million 1.3x net debt to LTM adjusted EBITDA* * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information
Slide 11: Massive secular tailwinds – long runway for further penetration
Massive secular tailwinds – long runway for further penetration E-commerce Warehouse automation Outsourcing E-commerce penetration1 Warehouse automation penetration2 % of logistics that is outsourced3 Currently insourced Outsourced E-commerce opportunity Global e-commerce Automation opportunity Auto
Slide 12: Accelerating automation – technology leadership
Accelerating automation – technology leadership Total technology and Total goods-to-persons automated systems systems +139% +110% ~30% of revenue is from automated sites 100+ new technologies being tested in 3Q 3Q20 3Q21 3Q20 3Q21 Vision tech Cobots +341% 3Q21 automated revenue +215% +19% YoY Exceed
Slide 13: E-commerce – persistent and resilient growth
E-commerce – persistent and resilient growth E-commerce, omnichannel retail and Reverse logistics revenue technology revenue growth +21% +22% 3Q20 3Q21 3Q20 3Q21 ©2021 GXO Logistics, Inc. 13
Slide 14: Outsourcing – healthy trends across new contract wins
Outsourcing – healthy trends across new contract wins YTD new outsourced contracts Wins from competitors New 29% outsourced contracts 40% Expansion of scope 31% ©2021 GXO Logistics, Inc. 14
Slide 15: New contract wins underpin 2022 revenue growth
New contract wins underpin 2022 revenue growth Incremental 2022 revenue from contract wins ~$700 million 2020 1Q21 2Q21 3Q21 Total ©2021 GXO Logistics, Inc. 15
Slide 16: Pro forma FY21 guidance
Pro forma FY21 guidance Revenue $7.6-$7.8 billion (Was $7.5-$7.7 billion) Adjusted EBITDA* $607-$637 million (Was $605-$635 million) Depreciation and amortization** $240-$250 million Interest expense $20-$25 million Tax rate 25-27% (Was 26-28%) Net capital $225-$250 million expenditures (Was $240-$2
Slide 17: FY22 guidance
FY22 guidance Revenue 8-12% organic growth* Adjusted EBITDA* $705-740 million Adjusted EBITDAR* ~$1.5 billion * Refer to the ‘Non-GAAP Financial Measures’ section on ©2021 GXO Logistics, Inc. slide 2 and Appendix for related information 17
Slide 18: Appendix
Appendix ©2021 GXO Logistics, Inc. 18
Slide 19: Reconciliation of net income to adjusted EBITDA and adjusted pro forma EBITDA
Reconciliation of net income to adjusted EBITDA and adjusted pro forma EBITDA Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net income to adjusted EBITDA 2021 2020 2021 2020 Net Income (loss) attributable to GXO $ 72 $ 18 $ 97 $ (59) Net income attributable to no
Slide 20: Reconciliation of cash flows from operating activities to free cash flow
Reconciliation of cash flows from operating activities to free cash flow Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of cash flows from operating activities to free cash flow 2021 2020 2021 2020 Net cash provided by operating activities $ 105 $ 154 $ 251 $ 345 Pay
Slide 21: Reconciliation of GAAP revenue to organic revenue
Reconciliation of GAAP revenue to organic revenue Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of GAAP revenue to organic revenue 2021 2020 2021 2020 Revenue $ 1,974 $ 1,584 $ 5,678 $ 4,429 Revenue from acquired business 163 0 431 0 Foreign exchange rates 35 0 227
Slide 22: Reconciliation of net debt and net leverage
Reconciliation of net debt and net leverage Trailing Twelve Months Nine Months ended Twelve Months Ended Nine Months ended September 30, September 30, December September 30, Reconciliation of net income (loss) to adjusted EBITDA 2021 2021 2020 2020 Net income (loss) attributable to GXO $ 125 $ 97 $