Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Baird Industrial Conference 2008
17 slides from Yellow's conference presentation, Nov 10, 2008
Slide 1: Baird Industrial Conference
Bill Zollars Chairman, President & CEO Baird Industrial Conference Bill Zollars Chairman, President & CEO Baird Industrial Conference November 11, 2008 Exhibit 99.1
Slide 2: Brand Recognition
2 Brand Recognition Brand Recognition YRC Worldwide generates more than $9 billion of revenue through global transportation services, transportation management solutions, and logistics management under a portfolio of successful brands.
Slide 3: YRC Worldwide Strategy
3 Accelerating Our National Integration De-levering & Liquidity Initiatives Strategic Global Growth YRC Regional Network Optimization YRC Worldwide Strategy YRC Worldwide Strategy One operating company with a combined national network Further opportunities for growth Teamster collaboration Competiti
Slide 4: Accelerating Our Integration
4 Accelerating Our Integration Accelerating Our Integration • What does it mean? Yellow and Roadway networks will be combined, significantly reducing fixed costs and enhancing service performance Local sales teams join forces to sell services of both brands • Why now? Economic downturn has created e
Slide 5: Integration Approach
5 Integration Approach Integration Approach Planning Stage Combined numerous physical locations Dedicated team working on data conversion for 2 years Formed one National leadership team Pilot consolidations in Canada First Wave Smaller end-of-line facilities Focus on P&D and dock functions Full proc
Slide 6: YRC Worldwide
‘YRC Worldwide
Slide 7: Slide 7
Slide 8: National Networks
7 National Networks National Networks Yellow Terminals Roadway Terminals YRC Inc. Terminals Yellow and Roadway networks before integration National network after integration
Slide 9: Customer Support for Integration
8 Customer Support for Integration Customer Support for Integration • Many of our larger customers have expressed support for the benefits of the integration, including among others: Wal-Mart Tomkins Hallmark Levitron General Electric L’Oreal Siemens Embarq Wolseley-Ferguson
Slide 10: Integration Financial Targets
9 Integration Financial Targets Integration Financial Targets • As of now, we have over 60 consolidations either done or in process • At the time of the acquisition, total facilities between Yellow and Roadway were 704. After integration and upon further optimization, we expect around 400 facilities
Slide 11: Integration Example: Wichita, KS
10 R YRC Integration Example Wichita, KS Integration Example Wichita, KS KANSAS KANSAS Before Integration (2 Facilities, 2 Operations) After Integration (1 Facility, 1 Operation) Y Kansas City Kansas City • Current labor cost opportunity for P&D, dock and linehaul is around $3 billion annually Lineh
Slide 12: Integration Example: Kansas City Metro
11 R YRC YRC MISSOURI Integration Example Kansas City Metro Integration Example Kansas City Metro KANSAS Kansas City Y Kansas City KANSAS MISSOURI Before Integration (Large, overlapping coverage areas) After Integration (Condensed, strategic coverage areas)
Slide 13: Other Cost Savings Initiatives
12 Other Cost Savings Initiatives Other Cost Savings Initiatives • $50 million improvement at the Regional companies 3Q08 operating income improved by $23 million compared to 1Q08 When accounting for contractual rate increases of $15 million and volume/yield reductions of $12 million, the Regional c
Slide 14: De-Levering Initiatives
13 De-Levering Initiatives De-Levering Initiatives 12/31/2005 12/31/2006 12/31/2007 9/30/2008 12/31/08E • Continual reduction in debt • Reduced net debt by $95 million since year end • Expect at least an additional $100 million in fourth quarter • Evaluating other opportunities • Sale/leaseback pack
Slide 15: Leverage Ratio
14 Leverage Ratio Leverage Ratio Leverage Ratio 4Q07 1Q08 2Q08 3Q08 2.50x 2.79x 2.99x 3.18x Bank Limit • Bank limit drops to 3.5x as of December 31 and we expect to remain within that limit • Non-cash impairment charges are excluded from EBITDA and do not impact liquidity a Amortization of debt issu
Slide 16: Summary
15 Summary Summary • Despite the downturn in the economy, YRC has unique levers to enhance its market position and improve its financial condition • National integration is underway and proceeding very well We continually evaluate the timeline and accelerate where it makes sense Customer response ha
Slide 17: Forward-Looking Statements
16 Forward-Looking Statements Forward-Looking Statements • This presentation contains 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. The words "expect," “expected,“ "will,“ “p