GXO Logistics, Inc. · NYSE:GXO
GXO Logistics — Investor Presentation (August 2022)
8 slides from GXO Logistics's investor presentation, August 2022
Slide 1: Investor presentation
Investor presentation August, 2022 ©2022 GXO Logistics, Inc. | Confidential and Proprietary
Slide 2: Disclaimer
Disclaimer This presentation is being provided for informational purposes only and is intended solely to facilitate a discussion with the recipient regarding certain illustrative examples of customer contract performance. No representation or warranty, express or implied, is or will be given by the
Slide 3: Process from RFP to go-live
ILLUSTRATIVE Process from RFP to go-live GXO has the resources and flexibility to serve the full spectrum of client mandates – from quick scale ups to meet urgent needs, to long-term initiatives that require significant planning Receipt of RFP to qualification Illustrative Solution design and pricin
Slide 4: All GXO contracts are structured to manage risks by passing through costs
All GXO contracts are structured to manage risks by passing • Open book contracts are cost plus. Hybrid-closed through costs ~45%* book contracts are partly cost plus and partly fixed of contracts price. Margins are protected are open in both cases with a high book degree of variable costs All GXO •
Slide 5: Contract maturity curve
Contract maturity curve* ILLUSTRATIVE • Open book contracts Revenue maturity curve EBITDA margin maturity curve see faster margin maturity curves than hybrid-closed book 100% 15% contracts 90% • Both sets of contracts Roughly 12 can take up to four 80% months for All contracts quarters to reach full
Slide 6: Open book contract – example
Open book contract – example* ILLUSTRATIVE Benefits Revenue Costs EBITDA • Open book margins are resilient to drops in activity with Variable Variable Margin on all costs passed through to the revenue costs variable costs customer with a mark-up 0 • Margins stay broadly fixed; profitability is Fixed
Slide 7: Hybrid-closed book contract – example
Hybrid-closed book contract – example* ILLUSTRATIVE Revenue Costs EBITDA Benefits Variable Variable • Fixed and variable revenue revenue costs closely matched to fixed and variable costs to protect margins from volume moves Margin on variable costs • Inflation escalators are Fixed + revenue + Fixed*
Slide 8: Project based >30% return on invested capital
Project* based >30% return on invested capital ILLUSTRATIVE ~100 Revenue ~100 Benefits Open Revenue Hybrid- book closed - Fixed and Fixed and • Hybrid-closed book variable costs book - variable costs contracts have higher EBITDA margins than open EBITDA ~7 EBITDA ~10 book contracts reflecting higher