Slide 1: 3Q 2021 Earnings Presentation
3 Q 2 0 2 1 E A R N I N G S P R E S E N TAT I O N October 28, 2021
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, 3Q 2021 Highlights
WERNER OVERVIEW, 3Q 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 $3.1B 5,120 3,100 13,575 1.0% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 3Q21 Revenues by Segment 3 Q 2 1 Reve n u e s b y Ve r t i c a l 3Q21 Reven
Slide 5: 3Q 2021 Highlights
3Q 2021 HIGHLIGHTS Revenues 19% to $703M GAAP EPS 41% to $0.94 Financial Adjusted EPS1 14% to $0.79 Highlights Adjusted operating income1 15% to $73.9M Adjusted TTS operating margin1, 2 150 bps to 14.0% Strategic Updates and Other Developments Comparisons to prior year quarter unless otherwise noted
Slide 6: 3Q 2021 Company and Segment Financial Results
3Q 2021 COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: 3Q 2021 Financial Performance
3Q 2021 FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income1 ($M) 1 Adjusted EPS $820 and Adjusted Operating Margin1 25.0% $810 $800 $790 $780 $100.0 $703 $770 $760 $750 $740 $0.79 $730 $720 $710 $700 $90.0 $618 $690 $680 $670 $590 $660 $0.69 20.0% $650 $640 $73.9 $630 $80.0 $620 $61
Slide 8: Truckload Transportation Services (TTS) Results
T R U C K L O A D T R A N S P O R TAT I O N S E R V I C E S ( T T S ) R E S U LT S 3Q19 3Q20 3Q21 3Q21 vs. 3Q20 Revenues ($M) $480.4 $458.3 $527.7 15% Adjusted Operating Income1 ($M) $49.7 $65.2 $65.4 0% Adjusted Operating Margin1, 2 11.7% 15.5% 14.0% (150) bps Adjusted Operating Ratio1, 2 88.3% 84.
Slide 9: TTS Fleet Metrics Update
T T S 1 F L E E T M E T R I C S U P DAT E Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 $271 $244 5,051 $4,115 $4,129 $232 $3,888 4,592 4,567 $250 $200 $150 $100 $50 $‐ 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 One-Way Truckload Trucking Revenues2 ($M) Averag
Slide 10: Werner Logistics Results
W E R N E R L O G I S T I C S R E S U LT S 3Q19 3Q20 3Q21 3Q21 vs. 3Q20 Revenues ($M) $121.3 $117.4 $158.0 35% Revenues, less purchased $18.4 $12.7 $23.0 81% transportation expense Operating Income (Loss) ($M) $3.0 $(0.9) $7.6 +$8.5M Operating Margin 2.5% (0.7)% 4.8% 550 bps YoY Commentary (3Q21 vs.
Slide 11: Strong FCF Generation; Expected to Continue
S T R O N G F C F G E N E R AT I O N ; E X P E C T E D T O C O N T I N U E ($M) COMMENTARY $446 $430 $427 $418 FCF generation of $180M in 2020 $349 2021 Net CapEx expected to be in the $310 range of $250M to $275M; over the $283 $284 $266 long-term, targeting Net CapEx at 11- 13% of annual reven
Slide 12: 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 2018-2020 $1.4B safety technology, that extend sustainable competitive advant
Slide 13: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Chairman, President and Chief Executive Officer
Slide 14: 5 Ts + 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 1. Trucks modern truck fleet, which includes state- of-the-art safety technology Fleet age increased slightly, due to OEM
Slide 15: Quest for Quality
Quest for Quality 38th annual awards, August 2021 Dry freight public company truckload award winners 2021 2020 2019 2018 2017 X X X X X Werner had the 2nd 5 dry freight rating criteria: On-time Performance, Value, Information Technology, Customer Service, highest overall weighted Equipment and Opera
Slide 16: The Evolution of Our ESG Effort
T H E E VO LU T I O N O F O U R E S G E F F O RT 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 demonst
Slide 17: Raising Long-Term Goal Range for TTS Annual Adjusted Operating Margin
RAISING LONG-TERM GOAL RANGE FOR TTS ANNUAL ADJUSTED O P E R AT I N G M A R G I N 1 Raising long-term TTS adjusted operating margin percentage goal to a range of 12% to 17% Carefully constructed fleet mix generates strong financial performance in good TL freight markets Demonstrated resilience
Slide 18: 2021 Guidance Metrics and Assumptions
2 0 2 1 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 Prior Actual New (as of 7/29/21) (as of 9/30/21) (as of 10/28/21) Commentary 2021 Guidance 1% to 4% 5% 3% to 5% TTS truck growth from BoY to EoY Flat to slightly lower fleet expected in 4Q21 (annual) (YTD21) (annual) $9M to $13M $15.3M
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 Q3 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
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) Three Months Ended September 30, 2019 2020 2021 Non-GAAP Adjusted Operating Income % of Op. % of Op. % of Op. and Non-GAAP Adjusted Operating Margin (1) $ Rev. $ Rev. $ Rev. Operating in
Slide 23: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) Three Months Ended September 30, 2019 2020 2021 Non-GAAP Adjusted Operating Income % of Op. % of Op. % of Op. and Non-GAAP Adjusted Operating Margin (1) $ Rev. $ Rev. $ Rev. Ope
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 Expenses, Net of Fuel Surcharge; Three Months Ended Septem ber 30, Non-GAAP Adjusted Operating Margin, Net of Fuel Surcharge; 2019 2020 2021 (1) and
Slide 25: 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