Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Investor Presentation (April 2014)
23 slides from Xpo's investor presentation, Apr 14, 2014
Slide 1: Management Presentation April 2014
Exhibit Management April 2014 99.1 Presentation
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking This XPO’s be “forecast,” well These any those impact litigation, with synergies developments this 2unanticipated identified future document as document XPO’s discussed forward-looking full of other and acquisitions, including results, “goal,” year networks by factors events cost ant
Slide 3: One of the largest providers of transportation and logistics services
Onefreight We #4 heavy International Growing 3Sources facilitate ofgoods the for presence brokerage Largest rankings: over and domestic 22,000 in 3PLs firm managed Transport indeliveries and freight North Top transportation Topics, America forwarder 50per logistics day Journal and company ofLTL Comm
Slide 4: Clearly Defined Strategy for Value Creation
Clearly Acquire 4We are on Defined companies track or Strategy ahead that bring of forplan Value value with Creation and allare three highly legs scalable of our growth Significantly strategyscale up and optimize existing operations Open cold-starts where sales recruitment can drive revenue
Slide 5: Disciplined Execution of Growth Plan
Precisenational Completed Introduced Added Stratified Created 5Disciplined Execution aleading customers, culture scalable 11 focus strategic operations edge of on ofIT passionate Growth assigned operational recruiting platform acquisitions centers Plan aon-time and single excellence for and training
Slide 6: Massive Network Built Over Two Years
Massive Built 12,000 Over 6Approximately 3,000 24,000 integrated customers Commitment employees active, 400 network inadditional vetted theto atmanufacturing, across Shipper 120 carriers locations trucks North Satisfaction under America in industrial, the exclusive U.S. in two and retail, contract y
Slide 7: Acquired Pacer International – March 2014
Acquired –Provides Creates Establishes Enhances 7Sources: Third Largest largest company-wide SJ instant Pacer provider XPO’s strong Consulting provider in scale value March platform of cross-border inproposition cross-selling Group, of the 2014 intermodal for $15Inc., organic billion Mexico asAmeric
Slide 8: Transformational Acquisition: Pacer Scale
Transformational 120 Over 22,000 XPO Locations 8Source: locations 24,000 3PD deliveries Company Pacer active, aImpact data day vettedoncarriers Scale Access to 60,000 miles of network rail routes
Slide 9: Largest Provider of Heavy Goods Last-Mile Logistics
Largest High Strengthens Industry-leading 9–Acquired Highly value, provider scalable 3PD Optima high XPO’s in customer of margin August Service supplier position heavybusiness, 2013 Solutions goods, to experience with 3PD,shippers last-mile rapidly leader in IT November can in as growing logistics l
Slide 10: Leading Positions in High-Growth Sectors
Leading Market Sector Truck Long-haul Heavy $13 Sources: 10 5-6brokerage ($ goods, Projected times Positions Armstrong billions) railOutsourcing efficiencies $50 Size in (x&High-Growth GDP) 2-3 Growth Associates, times and and Growth Intermodal Outsourcing e-commerce Norbridge, Sectors Drivers$15 an
Slide 11: Acquired NLM – Makes XPO #1 in Expedited
Acquired Makes #1 –XPO Capitalizes 11Proprietary provider NLM XPONLM on manages of the online trend web-based in largest December toward auction more manager transportation than just-in-time system 2013 $600 of expedited allows million inventories management carriers of shipments annual to bid for g
Slide 12: Significant Growth Drivers
Significant Strategic Cold-starts: Scale Supply Performance: M&A 12 and program: chain accounts: productivity: Growth expand offering: become focus market Embedded footprint on the build recruit the logistics toleadership top in large sales inmarkets 100 XPO’s partner shippers reps pipeline position
Slide 13: Focused Sales and Marketing Effort
Focused Differentiate –Single Capture Source: 13Strategic National Branch point SJ more Sales network accounts Consulting accounts of XPO of and contact the expands by Marketing team $32 team providing Group, forbillion focused marketing each ourEffort Inc. reach customer less-than-truckload a passi
Slide 14: Proprietary IT Platform
Increasing One Proprietary Highly Total (1) 14 Includes common ITscalable budget Productivity freight ITITbudget of load platform more optimizer execution for through than for Pacer tools $70 freight and Technology million for tendering brokerage pricing for 2014 via and inautomated load-covering al
Slide 15: Cold-starts Growth in Brokerage
Growth –Hire 1511 in Brokerage strong freight through industry cold-starts brokerage, Cold-starts veterans on12 a combined in asfreight branchforwarding, annual presidents revenue Position one run in expedited rate in prime of more recruitment than $150areas million Rapidly scale up by adding salesp
Slide 16: CEO Bradley Jacobs Track Record
CEO Bradley Founded Amerex United 16 Waste Rentals: Oil andAssociates: led stock S.Built Jacobs four outperformed world’s highly Builtsuccessful one largest S&P of world’s equipment 500 companies, by largest 5.6x rental including from oilcompany brokerage 1992world-class to 1997 firmsUnited Hamilton
Slide 17: Highly Experienced Management Team
Highly Sean John Scott Troy Gordon AutoNation, General Mario Oakleaf Dave Echo Karl 3PD, Julie Pacer Chief Tom EVE Senior Lou Electrolux, Vice The 17 full Amo Meyer Connolly President, Luna Hardig Cooper Partners Fernandez Inc., Global Malat Rowe Technology International, Operating Financial Strateg
Slide 18: Deep Operational Bench
Deep Chris Boyd President, Will Ryder Chief Gregory Knight, Senior Jake Sr. Jenna OHL, Marie Kip Crowley Regional Drew C.H. Doug AFN, Branch Evan Director Andrew Livingston Sales 18 Operational Douglass O’Shea Schnell Robinson, Robinson Laskaris Bench and Brothers, Healy Wilkerson Sales George Ryder
Slide 19: Quarterly Revenue Growth
FirstQ2 Revenue $137 $194 $257 Q1 2012 28% Source: 19 quarter-over-quarter 24 $109 2013 Q3 Company Months ($Q4 $114 millions) Q1of $71 Q2 data Growth $55 Q3 $45 Q4 CAGR Strategy
Slide 20: Key Financial Statistics
Key Revenue –4Q Source: 202011 Currently Expedited: Freight growth Financial revenue Company trajectory brokerage: forwarding: by atrevenue approximately business Statistics of data $177 revenue up revenue unit, million 19%, 2013 up $2 flat, gross 202%, billion vs. gross margin 2012 gross annual mar
Slide 21: Financial Targets
Financial Annual At Full Revenue EBITDA 21 least yearEBITDA revenue $400 of 2014 2017 of Targets $7.5 $425 million run billion run million rate rate of acquired ofofatatleast least historical $2.75 $100 billion million annual by by revenue, December December excluding 31 31 the Pacer acquisition
Slide 22: Incentivized Management and Equity Capitalization
Incentivized Equity Management Common Preferred Warrants Fully (1) (2) principal (4) 22 As Based Dilutive Diluted of ownership April amount (Strike Shares Stock oneffect XPO SEC and Shares 1,Equivalent Price 10.5 52.5 of 2014, directors aligns Management beneficial ofoutstanding Outstanding warrants
Slide 23: Clear Path to Significant Value Creation
Clear aPath Assembled Built Established Intent We’re 23 on making $177 making for top leading million Significant the management XPO best positions company use an Value irreplaceable, oftalent ininto our the Creation resources with the fastest-growing 4th skills single-source largest to uniquely bui