C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2022 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, Nov 2, 2022
Slide 1: Q3 2022 Earnings Presentation
Bob Biesterfeld, Chief Executive Officer Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q3 2022 Earnings Presentation November 2, 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: Q3 Financial Highlights
Q3 Financial Highlights ■ Highest quarterly Truckload volume, resulting in year-over-year volume Q3 2022 growth for the sixth consecutive quarter ■ Truckload AGP per shipment improved 20.5% year-over-year due to a higher $6.0B $887M AGP per shipment on contractual Total Revenues Adj. Gross Profit vo
Slide 4: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1) Q3 2022 Adjusted Global Forwarding (GF) North American Surface Gross Profit(2) Transp
Slide 5: NAST Q3'22 Results by Service
NAST Q3’22 Results by Service Adjusted Gross Profit(1) ($ in millions) 3Q22 3Q21 %▲ ▪ Truckload volume up 0.5% year-over-year(2) ▪ Truckload AGP per shipment increased 20.5% due Truckload (“TL”) $374.1 $309.8 20.8% to a higher AGP per shipment on contractual Less than Truckload (“LTL”) volume(2) $16
Slide 6: YoY % Change in Price and Cost
Truckload Price and Cost Change (1)(2)(3) 50% 40% YoY % Change in Price and Cost 30% 20% 10% 0% -10% -20% -30% 2016 2017 2018 2019 2020 2021 2022 YoY Price Change YoY Cost Change Truckload Q3 ■ 65% / 35% truckload contractual to transactional volume mix, up Volume(2)(4) +0.5 % from 60% / 40% in Q3 l
Slide 7: NAST Adjusted Gross Profit $ per Truckload Shipment
Truckload AGP $ per Shipment Improved Year-over-Year 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 Gro
Slide 8: Global Forwarding Q3'22 Results by Service
Global Forwarding Q3’22 Results by Service Adjusted Gross Profit (1) ($ in millions) ▪ Slowdown in global demand impacting ocean and air 3Q22 3Q21 %▲ pricing and volumes Ocean $159.7 $214.8 (25.6)% ▪ Ocean AGP decreased due to a 24.0% decrease in AGP per shipment and a 2.5% decline in shipments(2) A
Slide 9: All Other & Corporate Q3'22 Results
All Other & Corporate Q3’22 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 3Q22 3Q21 %▲ ▪ Increased revenue and AGP tied to integrated supply chain Robinson Fresh $27.7 $26.7 3.8% and technology services Managed Services Managed Services $29.6 $26.7 10.8% ▪ AGP growth driven by new
Slide 10: Sustainable Growth Strategy
Sustainable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage integrated ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic service model to Forwarding business and carriers the internal tools and growth by leveraging gr
Slide 11: Delivering Scalable Digital Solutions to Fuel Growth
Delivering Scalable Digital Solutions to Fuel Growth ■ Scale capacity/procurement Build a digital carrier network that gives customers access to additional capacity ■ Scale demand generation Attract, retain and grow demand via digitally connected channels by delivering technology features that shipp
Slide 12: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Carriers booking loads via Navisphere Carrier ® increased 77% year-over-year in Q3 ■ 658,000 fully automated bookings with carriers in NAST truckload business, an 87% increase compared to Q3 2021; $1.2 billion of revenue through this digi
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts that you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ Changes in cash from operations have been driven ■ $607 million of cash returned to shareholders in Q3 2022, up 156% primarily by sequential changes in operating working capital due to v
Slide 15: 2022 Strategic Priorities
2022 Strategic Priorities ■ Continue driving long-term diversified growth across an intentional combination of modes, services and geographic footprint ■ Design and deliver scalable solutions by transforming our processes, accelerating the pace of development and prioritizing data integrity, in orde
Slide 16: Appendix
Appendix 16
Slide 17: Q3 2022 Transportation Results
(1) Q3 2022 Transportation Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $5,724,364 $5,999,901 (4.6)% $18,718,357 $15,800,576 18.5 % Total Adjusted Gross Profits(2) $861,823 $819,511 5.2 % $2,738,718 $2,219,
Slide 18: Q3 2022 NAST Results
Q3 2022 NAST Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $4,002,461 $3,814,988 4.9 % $12,264,396 $10,611,892 15.6 % Total Adjusted Gross Profits(1) $563,787 $460,149 22.5 % $1,694,438 $1,317,853 28.6 % Ad
Slide 19: Q3 2022 Global Forwarding Results
Q3 2022 Global Forwarding Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $1,511,115 $1,978,901 (23.6)% $5,798,702 $4,585,734 26.5 % Total Adjusted Gross Profits(1) $248,433 $310,898 (20.1)% $894,724 $763,952
Slide 20: Q3 2022 All Other and Corporate Results
Q3 2022 All Other and Corporate Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $501,800 $469,806 6.8 % $1,566,706 $1,402,664 11.7 % Total Adjusted Gross Profits(1) $74,974 $73,145 2.5 % $235,841 $213,943 10.
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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