Slide 1: 4Q 2021 and 2021 Earnings Presentation
4 Q 2 0 2 1 A N D 2 0 2 1 E A R N I N G S P R E S E N TAT I O N February 3, 2022
Slide 2: Disclosure Statement
DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Lit
Slide 3: Werner Overview, 4Q 2021 and 2021 Highlights
WERNER OVERVIEW, 4Q 2021 AND 2021 HIGHLIGHTS Derek Leathers Chairman, President and Chief Executive Officer
Slide 4: Werner Overview
W E R N E R OV E R V I E W Premium Truckload Transportation & Logistics Services Provider Omaha, NE $3.0B 5,235 3,105 13,815 1.1% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 2021 Revenues by Se gment 2 0 2 1 Reve n u e s b y Ve r t i c a l 2021 Reve
Slide 5: 4Q 2021 and 2021 Highlights
4Q 2021 AND 2021 HIGHLIGHTS 4Q21 2021 Revenues 23% to $765M 15% to $2.7B GAAP EPS 31% to $1.15 57% to $3.82 Financial Adjusted EPS1 27% to $1.13 33% to $3.45 Highlights Adjusted operating income1 22% to $101M 31% to $317M Adjusted TTS operating margin1, 2 Flat at 18.2% 190 bps to 15.9% Strategic Upd
Slide 6: 4Q 2021 and 2021 Company and Segment Financial Results
4Q 2021 AND 2021 COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: 4Q Financial Performance
4Q FINANCIAL PERFORMANCE Adjusted Operating Income1 ($M) $85 0 $84 0 Total Revenues ($M) and Adjusted Operating Margin1 25. 0% Adjusted EPS1 $765 $83 0 $82 0 $12 0.0 $81 0 $1.131 $80 0 $79 0 $78 0 $77 0 $76 0 $75 0 $11 0.0 $74 0 $101.1 $73 0 $72 0 $71 0 $70 0 $622 $620 $69 0 $68 0 $10 0.0 20. 0% $67
Slide 8: Full Year Financial Performance
FULL YEAR FINANCIAL PERFORMANCE Adjusted Operating Income1 ($M) Total Revenues ($M) Adjusted EPS1 $3, 000 $37 0.0 and Operating Margin1 20. 0% $2,734 $2, 990 $2, 980 $2, 970 $3.45 $2, 960 $36 0.0 $2, 950 $2, 940 $2, 930 $316.8 $2, 920 $2, 910 $2, 900 $35 0.0 $2, 890 $2, 880 $2, 870 $2, 860 $2, 850 $
Slide 9: Truckload Transportation Services (TTS) 4Q Results
T R U C K L O A D T R A N S P O R TAT I O N S E R V I C E S ( T T S ) 4 Q R E S U LT S 4Q19 4Q20 4Q21 4Q21 vs. 4Q20 Revenues ($M) $486.6 $475.0 $563.2 19% Adjusted Operating Income1 ($M) $60.4 $79.9 $90.0 13% Adjusted Operating Margin1, 2 14.0% 18.2% 18.2% 0 bps Adjusted Operating Ratio1, 2 86.0% 81
Slide 10: TTS Fleet Metrics Update
T T S 1 F L E E T M E T R I C S U P DAT E Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 $1,078 5,225 $4,287 $4,116 $3,888 $4,075 $1,2 00 $973 4,693 4,872 5,040 $3,827 $4,012 $1,0 00 $914 4,593 4,661 $80 0 $60 0 $40 0 $237 $258 $291 $20 0 $- 4Q19 4Q20 4Q21 2019 2
Slide 11: Werner Logistics Results
W E R N E R L O G I S T I C S R E S U LT S 4Q19 4Q20 4Q21 4Q21 vs. 4Q20 Revenues ($M) $120.1 $130.1 $185.0 42% Revenues, less purchased $18.4 $16.2 $29.5 82% transportation expense ($M) Operating Income ($M) $3.4 $2.6 $11.7 +$9.1M Operating Margin 2.8% 2.0% 6.3% 430 bps YoY Commentary (4Q21 vs. 4Q20
Slide 12: Strong FCF Generation; Expected to Continue
S T R O N G F C F G E N E R AT I O N ; E X P E C T E D T O C O N T I N U E ($M) COMMENTARY $446 $418 $427 ▪ FCF generation of $140M in 2021 $349 $333 ▪ 2022 Net CapEx expected to be in the range of $275M to $325M; over the $283 $284 $266 long-term, targeting Net CapEx at 11- 13% of annual revenues $
Slide 13: Disciplined Capital Allocation
D I S C I P L I N E D C A P I TA L A L L O C AT I O N Priorities Continual and Consistent Investment in the 5 Ts + S ▪ Reinvestments in new, feature-rich trucks and trailers, including the latest Capital Allocation History 2018-2021 $1.9B safety technology, that extend sustainable competitive advant
Slide 14: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Chairman, President and Chief Executive Officer
Slide 15: 5Ts + S Are Core Components of Our Strategy
5 TS + S ARE CORE COMPONENTS OF OUR STRATEGY COMMITTED TO REMAINING AT THE FOREFRONT OF OUR INDUSTRY KEY FOCUS AREAS RELEVANT UPDATES ▪ Maintain the age of our industry-leading ▪ Maintained newer truck age; trailer age 1. Trucks modern truck fleet, which includes state- increased slightly, due to OE
Slide 16: The Evolution of Our ESG Effort
THE EVOLUTION OF OUR ESG EFFORT “While ESG concepts have long been woven into the fabric of Werner’s history, the release of our inaugural CSR report further elevates our commitment to conducting business in a socially and environmentally responsible manner. We are excited to demonstrate our ongoing
Slide 17: Long-Term Goal Range for TTS Annual Adjusted Operating Margin
LO N G - T E R M G OA L R A N G E F O R T T S A N N UA L A D J U S T E D O P E R AT I N G M A R G I N 1 ▪ Raised long-term TTS adjusted operating margin percentage goal to a range of 12% to 17% (October 2021) ▪ Carefully constructed fleet mix generates strong financial performance in good TL freight
Slide 18: 2021 and 2022 Guidance Metrics and Assumptions
2 0 2 1 A N D 2 0 2 2 G U I DA N C E M E T R I C S A N D A S S U M P T I O N S Guidance Actual 2022 Guidance (as of 10/28/21) (as of 12/31/21) (as of 2/3/22) Commentary 2021 and 2022 Guidance 3% to 5% 7% 2% to 5% Subject to driver availability and timing of delivery TTS truck growth from BoY to EoY
Slide 19: Q&A
Q&A
Slide 20: Invest With Us
INVEST WITH US ✓ Executing in strong freight market; expected to continue well into 2022 • Achieved record Adjusted operating income and Adjusted EPS • Positioned to deliver cash flow stability through the cycle ✓ Focused on operational excellence and our performance • Aligning with leading edge tec
Slide 21: Appendix
APPENDIX
Slide 22: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) Quarter Ended December 31, 2019 2020 2021 % of Op. % of Op. % of Op. $ Rev. $ Rev. $ Rev. Operating income a
Slide 23: Reconciliation of Non-GAAP Financial Measures – Consolidated (Continued)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) (Continued) Non-GAAP Adjusted Net Income Attributable to Werner and Non-GAAP Adjusted Diluted EPS (1) Quarter Ended December 31, 2019 2020 2021 Diluted Diluted Diluted $ EPS $ EPS $ EPS
Slide 24: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) Quarter Ended December 31, Year Ended December 31, 2019 2020 2021 2020 2021 % of Op. % of Op. % of
Slide 25: Reconciliation of Non-GAAP Financial Measures – TTS Segment (Continued)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) (Continued) Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of Fuel Surchage; and Non-GAAP Adjusted Operating Ratio, Net of
Slide 26: Reconciliation of Non-GAAP Financial Measures – Footnotes
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) Non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income attributable to Werner; non-GAAP adjusted diluted earnings per share; non-GAAP adjusted op
Slide 27: For More Information, Visit werner.com
F O R M O R E I N F O R M AT I O N , V I S I T W E R N E R . C O M