C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Investor Day (December 2024)
101 slides from C.h. Robinson Worldwide's investor day presentation, Dec 12, 2024
Slide 1: 2024 Investor Day
December 12 2024 INVESTOR DAY
Slide 2: Welcome and Opening Remarks
Welcome and Opening Remarks Chuck Ives Senior Director of Investor Relations 2024 INVESTOR DAY
Slide 3: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain
Slide 4: Today's Agenda
Today’s Agenda 9:00 am Welcome and Opening Remarks 10:15 am Driving Sustainable Growth and Chuck Ives | Senior Director of Investor Relations Efficiency in North American Surface Executing our Strategy to Deliver Transportation Michael Castagnetto | President of North Premium Shareholder Value Ameri
Slide 5: Executing our Strategy to Deliver Premium Shareholder Value
Executing our Strategy to Deliver Premium Shareholder Value Dave Bozeman President & Chief Executive Officer 2024 INVESTOR DAY
Slide 6: Key Messages
Key Messages 1 2 3 4 5 Ongoing industry Strategic execution Clear path to Significant Asset-light leadership and already yielding enhanced free cash flow, operating model, strong, defensible results, with operational driving investment generating strong competitive moat additional runway efficiency
Slide 7: Building on a Strong Foundation
Building on a Strong Foundation STRONG LARGEST FIRST BALANCE MOTIVATED CUSTOMER MOVER SHEET EMPLOYEE BASE AND ADVANTAGE THROUGH BASE DATA-SET CYCLE 7 2024 INVESTOR DAY
Slide 8: C.H. Robinson at a Glance (NASDAQ: CHRW)
C.H. Robinson at a Glance (NASDAQ: CHRW) 1905 Eden Prairie, ~$13B 150 ~$18B ~14,000 Founded MN Market Countries across 2023 Global Headquarters Cap1 6 Continents Revenue Employees World’s Most Powerful Supply $22B Freight Under Management 35M 500K+ Customers & Contract Carriers Shipments Managed / Y
Slide 9: Learning from Our Past to Deliver a Better Future
Learning from Our Past to Deliver a Better Future Era of Traditional Era of Digital Building a Future-ready Brokerage Disruption C.H. Robinson Pre-2017 2017-2022 2023+ • Built scale as a market • Experienced significant industry • Leveraging digital capabilities and generative AI leader, serving cus
Slide 10: Key Priorities for the New C.H. Robinson
Key Priorities for the New C.H. Robinson Commitment to strategic execution: GROWING • Executing at a higher and more 1 MARKET SHARE consistent level • Implementing a new Lean operating model CLEAR • Cascading problem-solving tools FOCUS ON through organization TWO NORTH Shifting to a more action-ori
Slide 11: Strategic Execution is Driving Results
Strategic Execution is Driving Results Key Accomplishments 180bps YoY improvement in Q3 2024 NAST • Delivery of exceptional service for our Adjusted Gross Profit Margin customers and carriers, with record high net promoter scores • Increased yields and gross margin On track for >30% improvement in N
Slide 12: Brokerage is Steadily Capturing More of the Total Freight Market
Brokerage is Steadily Capturing More of the Total Freight Market Brokerage Penetration of U.S. Freight Market 1 29% 26% 26% 22% 19% 18% 17% 16% 14% 14% 12% 13% 11% 12% 10% 11% 10% 10% 9% 7% 8% 7% 7% 6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 13: Connecting and Serving the Two-sided Marketplace
Connecting and Serving the Two-sided Marketplace 90K+ Active customers across the globe 450K+ Contract carriers on our platform TOP 500 100+ All Class 1 Top 5 NVOCC 20 Partners Customers LTL Carriers N.A. Carriers Global Ocean move 75% vol 9% 74% large carriers small carriers 51% 99% 86% > 400 truck
Slide 14: Best-in-class, Global Suite of Services
Best-in-class, Global Suite of Services Scale and expertise across a full portfolio of services 4 Core Modes Standalone Services Enablers | Delivery Model 1 TL Speed Scope Distance Equipment (Un)load Temp. Warehousing Org & People Standard Domestic Long-Haul Dry-Van Live Ambient Fixed LTL 2 Expedite
Slide 15: C.H. Robinson Success is Fueled by Our Customer Promise
C.H. Robinson Success is Fueled by Our Customer Promise Customer We deliver customer success through exceptional Promise service and high value — like no one else Unmatched Unrivaled Tailored Expertise + Scale + Solutions Work with the experts who We get you anywhere you Unlock solutions designed go
Slide 16: Serving Customers that Are the Global Economy
Serving Customers that Are the Global Economy 16 2024 INVESTOR DAY
Slide 17: Our Sustainable Competitive Advantages | How We Win
Our Sustainable Competitive Advantages | How We Win Capitalize on Leverage size and Utilize robust suite comprehensive scale to meet of digital tools knowledge of customer the needs of our to enable a needs for each vertical most complex seamless customer and segment global customers experience Enha
Slide 18: Executing Our Strategy to Deliver Premium Shareholder Value
Executing Our Strategy to Deliver Premium Shareholder Value Focused on growing market share and expanding operating margins Strategic Pillars Ignite growth Improve cost base Capture in core modes & margin profile portfolio synergies Expand key foundational capabilities OPERATING TALENT INNOVATION MO
Slide 19: Clear Strategic Priorities
Clear Strategic Priorities Ignite Growth Improve Cost Base Capture Portfolio in Core Modes & Margin Profile Synergies • Drive outsized growth • Increase productivity • Leverage enterprise scale and with SMBs and scalability capabilities • Target growth verticals (e.g., • Optimize organizational • En
Slide 20: Expand Key Foundational Capabilities
Expand Key Foundational Capabilities OPERATING TALENT INNOVATION MODEL STRATEGY 20 2024 INVESTOR DAY
Slide 21: Implementing and Executing New Operating Model
Implementing and Executing New Operating Model to Drive Profitable Growth and Increase Operating Income 1 Doing Things Clear Long-Term Strategy and Goals Differently • Operational discipline 5 PL 2 A • Execution – regular cadence of E N Continuously Defined operating reviews PROV Improving. Strategi
Slide 22: Leading Differently through Authentic and Credible Team
Leading Differently through Authentic and Credible Team with Proven Track Record TODAY’S PRESENTERS Dave Bozeman Damon Lee Arun Rajan Angie Freeman Michael Castagnetto Mike Short President and Chief Financial Chief Strategy and Chief Human Resources President of President of Global Chief Executive O
Slide 23: Accountable and Engaged Board of Directors
Accountable and Engaged Board of Directors Board Skills • CEO / Executive Mgmt. Experience • Public Company Board • Sales & Marketing • Accounting / Finance Jodee A. James J. (Jim) Dave Kermit Timothy C. Mark A. • Logistics / Supply Chain / Kozlak Barber, Jr. Bozeman Crawford Gokey Goodburn Transpor
Slide 24: Why Invest in C.H. Robinson
Why Invest in C.H. Robinson Ongoing industry Strategic execution Clear path to enhanced Significant Asset-light leadership and already yielding operational efficiency free cash flow, operating model, strong, results, with additional by leveraging driving investment generating strong defensible runwa
Slide 25: Differentiating through Talent and Culture
Differentiating through Talent and Culture Angie Freeman Chief Human Resources and ESG Officer 2024 INVESTOR DAY
Slide 26: Key Messages
Key Messages 1 2 3 4 Building on our industry- Empowering our people Maximizing the power of Aligning our incentives leading capability of with strong, skilled our people by leveraging with business strategy finding and developing leaders ready to drive innovative technology, a to drive long-term, g
Slide 27: Our Service is Well Recognized
Our Service is Well Recognized “Your greatest asset is your people. Ahmed A. is the biggest reason we continue to do business with C.H. Robinson. He is communicative and works quickly to resolve issues.” NAST Carrier “This has been a 5-star experience, and we are extremely happy we have partnered wi
Slide 28: Leading the Industry with a Strong and Performance-driven Team
Leading the Industry with a Strong and Performance-driven Team Global Workforce Shift to Relationships and Revenue Generation ~14K Employees vs. ~18K 37 Countries 2 years ago ~5.4 YRS Median Tenure 80 Languages Spoken 49% Gender Diversity 30% Ethnic Diversity Increased percentage of employees in cus
Slide 29: Our People and Culture Are a Competitive Advantage
Our People and Culture Are a Competitive Advantage Strong Identifying Growth and Philosophy and Talent Brand the Best Development adoption of AI We attract top talent because: We find people that are Unmatched opportunities • We encourage candidates driven to succeed: to learn and grow career to lev
Slide 30: Developing Decisive Leaders Who Are Fit, Fast, and Focused
Developing Decisive Leaders Who Are Fit, Fast, and Focused Retaining the best of the best Ability to Leverage our scale, global footprint, and diverse relationships recognize strong talent early and leverage defined leadership 77% 52% to grow highly capable success profile of people of people and kn
Slide 31: The Robinson Operating Model: A Winning Formula Foundational to Our Culture
The Robinson Operating Model: A Winning Formula Foundational to Our Culture Prioritizing Performance Based Culture People + Tech Grounded in our Purpose • Blend logistics science and • EDGE values Robinson’s tech expertise • Exceptional service with a focus on service and • Tackle challenges togethe
Slide 32: Aligning Incentives to Drive Sustainable Growth
Aligning Incentives to Drive Sustainable Growth Continue to expand operating margin and grow market share Unified Top-Down Ownership Philosophy Performance Alignment Mentality Metrics • Strategic overhaul of incentive • Designed a compensation • Balance of margin and • Through our equity and program
Slide 33: Our People & Culture Are Recognized for Excellence
Our People & Culture Are Recognized for Excellence AWARDS & RECOGNITION Broker Carrier Enterprise Partner Strategic Partner Value Award for of the Year of the Year Award for Teamwork Innovation World’s Most Most Responsible America’s Most Admired Company Company Innovative Company Strong Progress Ma
Slide 34: Key Takeaways
Key Takeaways 1 Building on our industry-leading capability of finding and developing great talent Empowering our people with strong, skilled leaders ready to drive the company into the future 2 and enhance shareholder value Maximizing the power of our people by leveraging innovative technology, a p
Slide 35: Leading the Logistics Industry into the Era of Digital Enablement
Leading the Logistics Industry into the Era of Digital Enablement Arun Rajan Chief Strategy & Innovation Officer 2024 INVESTOR DAY
Slide 36: Experiencing Well-known Pattern of Technology Disruption
Experiencing Well-known Pattern of Technology Disruption FOUNDED FOUNDED FOUNDED 1999 1996 1905 INDUSTRY INDUSTRY INDUSTRY e-Commerce Travel Logistics Industry disruption favored Industry disruption favored Industry disruption favors New Entrants New Entrants Incumbents Logistics Complexity Favors I
Slide 37: Key Messages
Key Messages 1 2 3 Transforming the Delivering business Driving gross margin customer and carrier model scalability and operating margin experience to grow expansion market share Disrupting from Within to Lead the Logistics Industry into the Era of Digital Enablement 37 2024 INVESTOR DAY
Slide 38: Executing Our Strategy to Deliver Premium Shareholder Value
Executing Our Strategy to Deliver Premium Shareholder Value Focused on growing market share and expanding operating margins Strategic Pillars Ignite growth Improve cost base Capture in core modes & margin profile portfolio synergies Expand key foundational capabilities OPERATING TALENT INNOVATION MO
Slide 39: Leading the Industry into the Era of Digital Enablement
Leading the Industry into the Era of Digital Enablement Elevating the customer and carrier experience Contractual All customers Quoting pricing Load search & All carriers recommendations Tendering Dynamic Dynamic Negotiation pricing costing Appointment scheduling CHR Gen AI & Booking Digital connect
Slide 40: Leveraging Proven Platform Patterns
Leveraging Proven Platform Patterns Learning from success in digital marketplaces to lead the way 1 2 3 4 Industry-leading Dynamic Pricing Frictionless People and Digital and AI and Costing Quote-to-cash Technology Synergy Capabilities Technologies Order Execution Leveraging unmatched Sophisticated
Slide 41: Capitalizing on Dynamic Costing & Pricing
Improve Cost Base & Margin Profile Capitalizing on Dynamic Costing & Pricing Key Aspects • Leveraging data resulting from our tremendous transactional scale to power AI/ML 700K Customer quotes per day • Dynamically adjusting to real time supply and demand signals from our digital channels to optimiz
Slide 42: Innovating Across the Quote-to-Cash Lifecycle
Improve Cost Base & Margin Profile Innovating Across the Quote-to-Cash Lifecycle QUOTING ACCEPT / PLAN & LEAD / ORDER CAPACITY APPOINT- IN TRANSIT TO REJECT OPTIMIZE FINANCIALS OPPORTUNITY TENDER BOOKING MENTS TRACKING CUSTOMER ORDER SHIPMENT QUOTE PICK UP DELIVERY > 10K > 85% > 300K ~50% > 50% 1B G
Slide 43: Generative AI Order Processing
Generative AI Order Processing ADDITIONAL BENEFITS • Enhanced customer satisfaction Prior Order Entry and faster turnaround times Pain Points 2K • Scalability: enables creation Email order • Manual data entry of multiple orders at once requests per day • Ability to turn email shipment • Toggling bet
Slide 44: Areas of Expanded Focus
Areas of Expanded Focus 1 Implement long-term, multi-horizon strategy • Drive short- and long-term strategic priorities • Informed by secular trends 2 Ignite growth in high-potential markets • Key verticals powered by high priority horizontal capabilities • To access greater Total Addressable Market
Slide 45: Key Takeaways
Key Takeaways 1 Transforming the customer and carrier experience to grow market share 2 Delivering business model scalability 3 Driving gross margin and operating margin expansion Disrupting from Within to Lead the Logistics Industry into the Era of Digital Enablement 45 2024 INVESTOR DAY
Slide 46: Break
C.H. ROBINSON Investor Day ~~ Break
Slide 47: Driving Sustainable Growth and Efficiency in North American Surface Transportation
Driving Sustainable Growth and Efficiency in North American Surface Transportation Michael Castagnetto President of North American Surface Transportation (NAST) 2024 INVESTOR DAY
Slide 48: Key Messages
Key Messages 1 2 3 4 Capitalizing on our Leveraging unrivaled Driving growth in core Digitizing operations industry leadership scale, data, and transportation modes, and carrier experience position through strong information advantage expanding addressable to increase productivity, relationships and
Slide 49: North American Surface Transportation (NAST) at a Glance
North American Surface Transportation (NAST) at a Glance Market leader competitively advantaged via scale, with a commitment to 50K 68K 340K+ 40% Shipments per Day Active Customers Contract Carriers on Our Platform operating margin target Leading talent and tech capabilities enhancing scalability an
Slide 50: Leading Position in Fragmented Brokerage Market
Leading Position in Fragmented Brokerage Market Average Market Share of Top 100 Domestic 3PLs1 12.4% • Leading market position despite recent loss of SMB market share 8.1% • Size and scale to 6.3% 6.0% compete effectively 4.8% across market cycles 3.4% • Ability to serve customers of all sizes with
Slide 51: Large and Growing Addressable Market
Large and Growing Addressable Market For-Hire Trucking: ~$400B Key Market Growth Drivers MARKET Brokerage Non-Brokerage Industry-wide Customers Critical demand recognition that seeking partners for people- MARKET 3PL is essential to develop long- driven expertise SIZE1 ~$117B ~$283B for optimizing t
Slide 52: Executing Our Strategy to Deliver Premium Shareholder Value
Executing Our Strategy to Deliver Premium Shareholder Value Focused on growing market share and expanding operating margins Strategic Pillars Ignite growth Improve cost base Capture in core modes & margin profile portfolio synergies Expand key foundational capabilities OPERATING TALENT INNOVATION MO
Slide 53: Recapturing Small and Medium Customers to Take Back Share
Recapturing Small and Medium Customers Ignite Growth in Core Modes to Take Back Share INTENTIONAL FOCUS ON SMALL AND MEDIUM CUSTOMERS • Investing in sales, leadership, and technology • Leveraging existing playbooks Mid-single Digit informed by decades of expertise year-over-year volume growth YTD, i
Slide 54: Focusing on Markets Highly Aligned to Our Value Prop
Focusing on Markets Highly Aligned Ignite Growth in Core Modes to Our Value Prop Key Industry Characteristics Example Verticals That Fit Our Value Prop For Our Vertical Growth Strategy • Why We Play Here: Long history but • Highly complex multi-modal supply chains early innings of market penetration
Slide 55: Igniting Growth through TAM Expansion
Ignite Growth in Core Modes Igniting Growth through TAM Expansion Enhance Targeted Focus on High-Growth Expand into Additional Capabilities Adjacencies Solutions • Drop Trailer Expansion-Asset • Industry leading intra • 4PL Managed Solutions light position with exponential Mexico, intra Canada and b
Slide 56: Drive Productivity and Scalability
Improve Cost Base & Margin Profile Drive Productivity and Scalability Achieving 30%+ productivity improvement over two years 1 2 3 4 Capitalize on enterprise Leverage tech to Drive efficiencies Optimize pricing and size and scale enhance productivity through Lean principles margin profile • Industry
Slide 57: Unlocking Value through Portfolio Synergies
Capturing Portfolio Synergies Unlocking Value through Portfolio Synergies Leveraging One Robinson Go-to-Market Strategy • Robinson Fresh: Unparalleled temperature and inventory expertise Harnessing • Global Forwarding: Comprehensive synergies across global solutions across Air, Ocean, LTL, and Truck
Slide 58: Key Takeaways
Key Takeaways Capitalizing on our industry leadership position through strong relationships and 1 deep expertise enabled by technology Leveraging unrivaled scale, data, and information advantage to deliver best-in-class 2 tailored solutions for our customers Driving growth in core transportation mod
Slide 59: Driving the Future of Global Forwarding
Driving the Future of Global Forwarding Mike Short President of Global Freight Forwarding (GF) 2024 INVESTOR DAY
Slide 60: Key Messages
Key Messages 1 2 3 4 Delivering sustained Building on our unique Utilizing automation Leveraging One market share growth in scale, deep customer and continuous Robinson to capture an expanding market intimacy, differentiated improvement to opportunities across service, and technology increase produc
Slide 61: Global Forwarding (GF) at a Glance
Global Forwarding (GF) at a Glance Connecting disparate components of international supply chains, with a commitment to 6K Shipments 25KActive 149 Steps in Our Order-to- per Day Customers Cash Lifecycle 30% operating margin target Strong customer and carrier collaboration enabled by scale Leading oc
Slide 62: Driving Profitable Growth Across Market Cycles
Driving Profitable Growth Across Market Cycles Modal AGP and Adjusted Income from Operations1 2020 – 2022 Avg. OI: $1,400 $381M $1,200 2023 OI: LTM OI: $1,000 2019 OI: $108M $188M $800 $81M $600 2012 OI: $400 $10M $200 $0 2012 2019 2020 2021 2022 2023 LTM Acquired Phoenix Pandemic-related impact 12
Slide 63: Executing Our Strategy to Deliver Premium Shareholder Value
Executing Our Strategy to Deliver Premium Shareholder Value Focused on growing market share and expanding operating margins Strategic Pillars Ignite growth Improve cost base Capture in core modes & margin profile portfolio synergies Expand key foundational capabilities OPERATING TALENT INNOVATION MO
Slide 64: Competitive Advantages Enabling Our Right to Win
Competitive Advantages Enabling Ignite Growth in Core Modes Our Right to Win Unique scale in the U.S. freight Differentiated service driven forwarding market by our people • Empowering growth by capitalizing • Positioning GF to create tailored on expanding market solutions that precisely align with
Slide 65: Targeted Lane Expansion
Ignite Growth in Core Modes Targeted Lane Expansion Flexibility to Capture Well-Positioned to Capture Significant Growth as Market Share in Rapidly Expanding Trade Lanes Dynamics Shift Focus on lanes involving Southeast Asia, India, and Transatlantic • Aligning our services with carriers’ preference
Slide 66: Drive Productivity and Scalability
Improve Cost Base & Margin Profile Drive Productivity and Scalability 1 2 3 4 Drive higher Lower cost to serve Enhance yield via Focus on products productivity and • Transforming operational revenue management that require expertise, scalability through management rigors • Building pricing and scale
Slide 67: Build on Distinctive Market Position
Capturing Portfolio Synergies Build on Distinctive Market Position One-Robinson Go-to-Market Strategy • Enhance cross-selling strategy and execution between GF and NAST Harnessing “One Robinson” • Drive volume to four core modes to strengthen NAST • 20% of GF’s new AGP comes from relationships relat
Slide 68: Expand Key Foundational Capabilities | Enable Strategic Pillars
Expand Key Foundational Capabilities | Enable Strategic Pillars Execute Operating Model Enhance customer Capitalize on technology to drive quality, growth, experience by improving advancements to reduce productivity, and expense operational quality, task-oriented work and management uniformity, and
Slide 69: Key Takeaways
Key Takeaways 1 Delivering sustained market share growth in an expanding market Building on our unique scale, deep customer intimacy, differentiated service, and technology 2 enablement through continuous improvement Utilizing automation and continuous improvement to increase productivity, scalabili
Slide 70: Building on a Resilient Financial Foundation
Building on a Resilient Financial Foundation Damon Lee Chief Financial Officer 2024 INVESTOR DAY
Slide 71: Key Messages
Key Messages 1 2 3 4 Confidently pursuing a Embracing our Capitalizing on strong Leveraging consistent new era of growth and operating model to drive balance sheet enabled and disciplined capital profitability, empowered margin expansion and by ongoing free cash allocation framework by a clear and f
Slide 72: Historical Financial Performance
Historical Financial Performance Building on the past and embracing the future OPPORTUNITIES Evergreen Productivity ~$2.9B | 14.8% ~$875M ~$681M 5-Year Average 5-Year Average 5-Year Average Market Outgrowth Adj. Gross Profit Adjusted Income from Free Cash Flow1 and Margin1 Operations1 Manage Costs H
Slide 73: Executing Our Strategy to Deliver Premium Shareholder Value
Executing Our Strategy to Deliver Premium Shareholder Value Focused on growing market share and expanding operating margins Strategic Pillars Ignite growth Improve cost base Capture in core modes & margin profile portfolio synergies Expand key foundational capabilities OPERATING TALENT INNOVATION MO
Slide 74: Strong Growth Drivers Across the Business
Ignite Growth in Core Modes Strong Growth Drivers Across the Business North American Surface Transportation Global Forwarding (NAST) (GF) • Share recapture with SMB customers • Continued diversification within and across trade lanes • Above market growth in target verticals • Proactive expansion wit
Slide 75: Capitalizing on Investments Aligned to Our Strategy to Expand Margins
Capitalizing on Investments Aligned to Improve Cost Base & Margin Profile Our Strategy to Expand Margins Gross Margin Operating Margin • Utilizing data for more accurate and • Enhancing customer satisfaction with faster personalized quoting turnaround times • Improving cost of hire • Enabling creati
Slide 76: Disciplined Execution of Strategy Driving Strong Outcomes
Disciplined Execution of Strategy Driving Improve Cost Base & Margin Profile Strong Outcomes OUTCOMES On track 180bps 500bps for >30% YoY improvement YoY improvement improvement in NAST in Q3 2024 NAST in Q3 2024 YTD Adj. & GF productivity over Adjusted Gross Operating Margin1 a 2-year period Profit
Slide 77: Strong Free Cash Flow Supports Healthy Balance Sheet
Strong Free Cash Flow Supports Healthy Balance Sheet Free Cash Flow1 Net Debt to EBITDA Long-term Target Range ~$681M $182M 2.34x 2.25x 5-Year Average 2024 YTD2 2.08x 1.75x Key Drivers • Strong through-cycle EBITDA generation 1.42x • Managing through market volatility and 1.29x supply chain disrupti
Slide 78: Strong History of Returning Capital to Shareholders
Strong History of Returning Capital to Shareholders Dividends Per Share Cumulative Capital Returned $2.46 Cash Dividends ~15% $1.6B CAGR Deployed Capital (Q1’19 to Q3’24) $2.7B Share $0.07 Repurchases1 Returned 120% of FCF to Shareholders Since 2019 25+ Years of Annually Increasing Dividends on a Pe
Slide 79: Disciplined Approach to Future Capital Deployment
Disciplined Approach to Future Capital Deployment Sustain • Prioritize high-return, organic investments & Drive Growth • Opportunistically use M&A to accelerate strategy • Sustain investment grade credit ratings Optimize • Maintain $600M - $750M of liquid assets (cash & Balance borrowing availabilit
Slide 80: Delivering Strong Financial Performance through the Cycle
Delivering Strong Financial Performance through the Cycle Key Actions TAKING PROACTIVE ACTION • Dynamic costing and pricing TO DELIVER HIGHER HIGHS • Diversification across core modes and end markets AND HIGHER LOWS • Increased exposure to higher-growth THROUGH THE CYCLE verticals and adjacencies •
Slide 81: Our FY 2026 Financial Target
Our FY 2026 Financial Target Key Assumptions $350M-$450M • Outsized volume growth Incremental Operating Income in NAST and GF vs. 2023 • Ongoing gross margin expansion driven by technology enhancements Mid-Cycle • Consistent focus on driving 40% 30% Mid-30s productivity and operating leverage NAST O
Slide 82: Operating Income Bridge
Operating Income Bridge Market Assumptions Income from Operations • Market volume growth of 2025-2026 Drivers 0-5% annually in 2025-2026 • Market normalization ~$90M ~$60M $903M – $1.003B • NAST AGP/shipment increases ~$90M $0 – to 2019 average ~$40M Cost Inflationary $100M ~$10M • GF AGP/shipment d
Slide 83: Key Takeaways
Key Takeaways Confidently pursuing a new era of growth and profitability, empowered by a 1 clear and fully aligned strategy Embracing our operating model to drive margin expansion and compound 2 shareholder returns 3 Capitalizing on strong balance sheet enabled by ongoing free cash flow generation L
Slide 84: Closing Remarks: Positioned for Profitable Growth
Closing Remarks: Positioned for Profitable Growth Dave Bozeman President & Chief Executive Officer 2024 INVESTOR DAY
Slide 85: Why Invest in C.H. Robinson
Why Invest in C.H. Robinson Ongoing industry Strategic execution Clear path to enhanced Significant Asset-light leadership and already yielding results, operational efficiency free cash flow, operating model, strong, with additional runway by leveraging driving investment generating strong defensibl
Slide 86: Q&A
C.H. ROBINSON Investor Day ~~ Q&A
Slide 87: Thank you
C.H. ROBINSON Investor Day ~~ Thank you
Slide 88: Appendix
C.H. ROBINSON Investor Day ~~ APPENDIX
Slide 89: Glossary of Terms
Glossary of Terms 3PL: Third-party logistics 4PL: Fourth-party logistics AGP: Adjusted gross profit AI: Artificial intelligence EDGE: Evolve constantly, Deliver excellence, Grow together, Embrace integrity GF: Global Forwarding GHG: Greenhouse gas LTL: Less-than-truckload ML: Machine learning NAST:
Slide 90: Speaker Bios
SPEAKER BIOS 2024 INVESTOR DAY
Slide 91: Speaker Bios
Speaker Bios Dave Bozeman | President & Chief Executive Officer David (Dave) Bozeman is President and Chief Executive Officer and a member of the Board of Directors of C.H. Robinson. Dave is an accomplished executive, bringing over 30 years of experience at industry-leading companies and iconic bran
Slide 92: Speaker Bios
Speaker Bios Angie Freeman | Chief Human Resources and ESG Officer As Chief Human Resources & ESG Officer at C.H. Robinson, Angie Freeman is a member of the executive team and leads the company’s global talent and sustainability strategies, including recruiting, compensation, learning and leadership
Slide 93: Speaker Bios
Speaker Bios Arun Rajan | Chief Strategy and Innovation Officer Arun Rajan serves as the Chief Strategy and Innovation Officer (CSIO) at C.H. Robinson. In this role, Arun oversees Robinson’s enterprise strategy and innovation process, from creation to implementation, and measures the company’s perfo
Slide 94: Speaker Bios
Speaker Bios Michael Castagnetto | President of North American Surface Transportation Michael Castagnetto was named president of North American Surface Transportation (“NAST”) in January 202 . Prior executive positions with the company include Vice President, Customer Success in NAST from January 20
Slide 95: Speaker Bios
Speaker Bios Mike Short | President of Global Freight Forwarding Michael J. Short was named President of Global Freight Forwarding in May 2015. He joined C.H. Robinson through the acquisition of Phoenix International in 2012 and is an 18-year veteran of the global forwarding industry. Prior to being
Slide 96: Speaker Bios
Speaker Bios Damon Lee | Chief Financial Officer Damon Lee is the Chief Financial Officer for C.H. Robinson. Damon is an accomplished finance leader with over 25 years of progressive experience with S&P 200 companies. Damon has deep experience with Lean, continuous improvement and comprehensive stra
Slide 97: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2024 INVESTOR DAY
Slide 98: 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 and loss on divestiture is a similar non-GAAP financial measure to adjusted operating margin
Slide 99: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations is a non-GAAP financial measure. This non-GAAP measure is calculated excluding the impact of restructuring and losses from divestitures. We believe that these measures provide useful information to investors and include them within
Slide 100: 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 101: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free cash flow is a non-GAAP financial measure. Free cash flow is calculated as net cash provided by operating activities less capital expenditures. We believe free cash flow is a useful measure of our ability to manage our operations and capital. The reconciliation of cash
C.H. Robinson Worldwide — Investor Day (December 2024) on 6ix