C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q2 2024 Earnings Presentation
25 slides from C.h. Robinson Worldwide's earnings presentation, Jul 31, 2024
Slide 1: Q2 2024 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Strategy & Innovation Officer Mike Zechmeister, Chief Financial Officer Damon Lee, Chief Financial Officer Elect Michael Castagnetto, President of NAST Chuck Ives, Director of Investor Relations Q2 2024 Earnings Presentation July 31, 2024 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- lo
Slide 3: Thoughts from President & CEO, Dave Bozeman
Thoughts from President & CEO, Dave Bozeman ■ Our Q2 results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this poin
Slide 4: Robinson Operating Model
Robinson Operating Model 1 2 3 4 5 Clear Defined Scorecard: Continuous Continuously Long-Term Strategic Measurable and and Rigorous Improving. Strategy Workstreams Actionable Measurement Never and Goals Inputs and Action Stops. Plans • Enterprise • Enterprise • Regular • Accountable Strategy Map • D
Slide 5: Q2 Highlights
Q2 Highlights ■ Global freight markets continue to be impacted by low demand and excess capacity, resulting in suppressed transportation rates. Q2 2024 ■ Q2 NAST truckload & LTL volume increased 1.5% Y/Y, which outpaced the market indices for the fourth consecutive quarter, and truckload AGP/load im
Slide 6: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues is garnered from customers to whom we provide both surface transportation and global forwarding services.(1) Q2 2024 Adjusted Global Forwarding (GF) North American Surface Gross Profits(2) 2.7% ■ Ongoing conflict in the Red Sea has s
Slide 7: NAST Q2'24 Results by Service
NAST Q2’24 Results by Service Adjusted Gross Profits(1) Second Quarter Highlights ($ in millions) 2Q24 2Q23 %▲ ■ Truckload volume up 1.5% year-over-year(2) ■ Truckload AGP per shipment increased 6.5% due to Truckload (“TL”) $254.8 $236.1 7.9% increasing profit per shipment on transactional volume(2)
Slide 8: YoY % Change in Price and Cost per Mile
Truckload Price and Cost Change (1)(2)(3) 50% YoY % Change in Price and Cost per Mile 40% 30% 20% 10% 0% -10% -20% -30% 2016 2017 2018 2019 2020 2021 2022 2023 2024 YoY Price Change YoY Cost Change Truckload Q2 ■ 70% / 30% truckload contractual / transactional volume mix in Q2 Volume(2)(4) +1.5% Pri
Slide 9: Truckload AGP $ per Shipment Trend
Truckload AGP $ per Shipment Trend NAST Adjusted Gross Profit $ per Truckload Shipment (left axis) NAST Adjusted Gross Profit Margin % (right axis) Average NAST AGP $ per Truckload Shipment (left axis) 20% NAST Adjusted Gross Profit $ per Truckload 19% NAST Adjusted Gross Profit Margin % 18% 17% Shi
Slide 10: Global Forwarding Q2'24 Results by Service
Global Forwarding Q2’24 Results by Service Adjusted Gross Profits (1) Second Quarter Highlights ($ in millions) ■ Ongoing conflict in the Red Sea is causing transit 2Q24 2Q23 %▲ interruptions and vessel re-routing, which has put a strain on ocean capacity, resulted in port congestion Ocean $116.6 $1
Slide 11: All Other & Corporate Q2'24 Results
All Other & Corporate Q2’24 Results Adjusted Gross Profits (1) Second Quarter Highlights ($ in millions) Robinson Fresh 2Q24 2Q23 %▲ ■ Increased AGP due to an increase in integrated supply Robinson Fresh $39.9 $37.9 5.2% chain solutions for retail and foodservice customers Managed Services Managed S
Slide 12: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 12
Slide 13: New Customer & Carrier Experiences Driving Digital Adoption
New Customer & Carrier Experiences Driving Digital Adoption ■ Improving customer and carrier outcomes with technology that supports our people and processes ■ Leveraging GenAI to capitalize on our data and information advantage ■ Concurrent workstreams are delivering process optimization by eliminat
Slide 14: Our Customer Promise
Our Customer Promise © C.H. Robinson Worldwide, Inc. All rights reserved. © C.H. Robinson Worldwide, Inc. All rights reserved. 14
Slide 15: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ The decline in the cost and price of purchased surface ■ $76 million of cash returned to shareholders in Q2 2024 transportation (inclusive of fuel surcharges) has slowed ■ Q2 2024 capita
Slide 16: Appendix
Appendix 16
Slide 17: Q2 2024 Transportation Results
(1) Q2 2024 Transportation Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 4,121,930 $ 4,084,827 0.9 % $ 8,204,518 $ 8,412,792 (2.5)% Total Adjusted Gross Profits(2) $ 651,547 $ 631,267 3.2 % $ 1,279,139 $ 1,288,201 (0
Slide 18: Q2 2024 NAST Results
Q2 2024 NAST Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 2,989,909 $ 3,079,268 (2.9)% $ 5,990,222 $ 6,383,455 (6.2)% Total Adjusted Gross Profits(1) $ 419,657 $ 400,532 4.8 % $ 816,767 $ 827,187 (1.3)% Adjusted Gr
Slide 19: Q2 2024 Global Forwarding Results
Q2 2024 Global Forwarding Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 921,223 $ 779,867 18.1 % $ 1,779,860 $ 1,569,845 13.4 % Total Adjusted Gross Profits(1) $ 184,067 $ 179,231 2.7 % $ 364,112 $ 357,150 1.9 % Adju
Slide 20: Q2 2024 All Other and Corporate Results
Q2 2024 All Other and Corporate Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 572,216 $ 562,721 1.7% $ 1,125,577 $ 1,080,226 4.2% Total Adjusted Gross Profits(1) $ 83,685 $ 85,733 (2.4%) $ 164,259 $ 166,799 (1.5%) I
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. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure to adjusted operating margin, but also excludes the
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as i
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as i
Slide 25: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 25
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