Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Corporate Update (June 2021)
15 slides from Xpo's corporate update, Jun 9, 2021
Slide 1: Supplementary Financial Information
Supplementary Financial Information
Slide 2: Disclaimers
XPOLogistics Disclaimers [ADDITIONAL INFORMATION References neon to “GXO" refer fo GXO Logistics, nc, ally oued sbsiciy of APO Losi, In. CAPO", Fr ado infraian wth respect 9 GXO ante opated spina, place refer fo {he Fem 10 Ragsraton Statamant, os inay be futar mended a led by GXO wth the US. Secures
Slide 3: Disclaimers (continued)
XPOLogistics Disclaimers (continued) FORWARD-LOOKING STATEMENTS ‘This presonlaon nodes foardookng sateen within the moaing of Section 274 of the Sects At of 1999, 9 amend, and Sockon ZTE ofthe Seen Exchange et of 1624, a amended Incung the fale growth pospecs for XPO and GXO, XPO's and GAO's potent
Slide 4: Executive summary
XPOLogistics Executive summary = Following the completion of the planned spin-off: — XPO will be a pure-play transportation company, primarily comprised of less-than-truckload and truck brokerage businesses = GXO will be a pure-play logistics company, comprised of XPO's current logistics segment * T
Slide 5: Planned spin-off will create two pure-play industry powerhouses
XPOLogistics Planned spin-off will create two pure-play industry powerhouses XPOLogistics KEY TRANSPORTATION METRICS* (62% OF 2020 XPO'S REVENUE Leading global provider of freight transportation, primarily truck brokerage and less-than-truckload (LTL) services TTM revenue $10.7 billion Locations nr
Slide 6: Rationale for the GXO spin-off
XPOLogistics Rationale for the GXO spin-off Strategic focus Differentiation Flexibility Aligned investor base Pure-play equity currency XPO and GXO would both benefit from an undiluted focus on their specific strategic priorities and customer requirements Each company can deepen its differentiation
Slide 7: GXO: Global leader in warehouse automation, expertise and quality of performance
XPOLogistics GXO: Global leader in warehouse automation, expertise and quality of performance Strong positioning in a fast-growing industry with massive tailwinds Robust technological differentiation Long-term customer relationships in attractive verticals int business model with multiple drivers of
Slide 8: XPO: Global provider of high-margin LTL and truck brokerage transportation
XPOLogistics XPO: Global provider of high-margin LTL and truck brokerage transportation LESS-THAN-TRUCKLOAD Strong positioning and profit upside in industry with favorable fundamentals TRUCK BROKERAGE Compelling value proposition differentiated by first-mover digital advantage + #3 provider in $42 b
Slide 9: XPO guidance updates issued June 9, 2021
XPOLogistics XPO guidance updates issued June 9, 2021 XPO 2021 GUIDANCE FOR ADJUSTED EBITDA XPO has increased its expectation for Q2 2021 adjusted EBITDA to at least $490 million, driven by stronger-than-expected performance in its transportation segment. Consequently, the company has increased its
Slide 10: XPO post-spin-off pro forma adjusted EBITDA outlook
XPOLogistics XPO post-spin-off pro forma adjusted EBITDA outlook XPO ADJUSTED EBITDA BRIDGE Sin tions 4.378 ~ 1,420 20 (230) - (218) 4,465 ~ 1.225 ~ 4,170 1,230 Previous 2021 2021 guidance —-—Separation-telated ~_XPO post-spin-off Partialyear PO post-spin-off XPO guidance for increase for@2 adjustme
Slide 11: GXO pro forma adjusted EBITDA outlook
GXO pro forma adjusted EBITDA outlook GXO PRO FORMA ADJUSTED EBITDA BRIDGE Sin mitions 665 - 685 (68) (65) ee 30-45 as —_ Previous 2024 Separation-elated exo Paniak-year separation XPO guidance for adjustments? pro forma adjustments and logistics segment adjusted EBITDA corporate costs? Prima talon
Slide 12: Estimated impact of a January spin-off on full year financial targets
XPOLogistics Estimated impact of a January 1 spin-off on full year financial targets We estimate that if the spin-off had occurred on January 1, 2021, certain of our current full year financial targets — which exclude the impact of the spin-off - would be separated as follows: SPIN-OFF IMPACT ON SEL
Slide 13: Appendix
Appendix
Slide 14: Reconciliations of GXO pro forma adjusted EBITDA
XPOLogistics Reconciliations of GXO pro forma adjusted EBITDA GXO ADJUSTED EBITDA RECONCILED TO OUTLOOK Si milions 2020 GXO pro forma adjusted EBITDA (as presented in Form 10) az Adjusted for expected corporate cost run rate 10-20 2020 GXO pro forma adjusted EBITDA (comparable to 2021 outlook) 452-4
Slide 15: Reconciliations of GXO pro forma adjusted EBITDA (cont.)
XPOLogistics Reconciliations of GXO pro forma adjusted EBITDA (cont.) NET LOSS ATTRIBUTABLE TO GXO RECONCILED TO ADJUSTED EBITDA FOR 2020 Sin milbons Net loss attributable to GXO (14) Net income attributable to noncontrolling interest ®@ Net loss ® Interest expense 31 Income tax provision 15 Depreci