Slide 1: 2Q 2021 Earnings Presentation
2 Q 2 0 2 1 E A R N I N G S P R E S E N TAT I O N July 29, 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, 2Q 2021 Highlights
WERNER OVERVIEW, 2Q 2021 HIGHLIGHTS Derek Leathers Chairman, President and Chief Executive Officer
Slide 4: Werner + ECM Pro Forma
WERNER + ECM PRO FORMA Premium Truckload Transportation & Logistics Services Provider Omaha, NE $3.0B 5,040 3,105 13,319 1.1% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 2020 Revenues by Segment 2 0 2 0 Reve n u e s b y Ve r t i c a l 2020 Revenues
Slide 5: 2Q 2021 Highlights
2Q 2021 HIGHLIGHTS Revenues 14% to $650M GAAP EPS 87% to $1.06 Financial Adjusted EPS 40% to $0.86 Highlights Adjusted operating income 37% to $79.1M Adjusted TTS operating margin1 340 bps to 17.1% Strategic Updates and Other Developments Comparisons to prior year quarter unless otherwise noted Re
Slide 6: 2Q 2021 Company and Segment Financial Results
2Q 2021 COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: 2Q 2021 Financial Performance
2Q 2021 FINANCIAL PERFORMANCE $820 Total Revenues ($M) Adjusted Operating Income ($M) 25.0% Adjusted EPS and Operating Margin $810 $800 $790 $780 $100.0 $770 $760 $750 $0.86 $740 $730 $650 $720 $710 $628 $700 $90.0 $690 $680 $79.1 $670 $660 20.0% $650 $569 $640 $630 $80.0 $620 $610 $600 $590 $580 $5
Slide 8: Truckload Transportation Services (TTS) Results
T R U C K L O A D T R A N S P O R TAT I O N S E R V I C E S ( T T S ) R E S U LT S 2Q19 2Q20 2Q21 2Q21 vs. 2Q20 Revenues ($M) $480.0 $445.1 $491.2 10% Adjusted Operating Income ($M) $52.4 $56.1 $74.4 33% Adjusted Operating Margin1 12.6% 13.7% 17.1% 340 bps Adjusted Operating Ratio1 87.4% 86.3% 82.9%
Slide 9: TTS Fleet Metrics Update
T T S 1 F L E E T M E T R I C S U P DAT E Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 $262 $239 4,949 $3,983 $4,079 $227 $3,833 4,558 4,613 $250 $200 $150 $100 $50 $‐ 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 One-Way Truckload Trucking Revenues2 ($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 2Q19 2Q20 2Q21 2Q21 vs. 2Q20 Revenues ($M) $130.9 $110.2 $141.7 29% Gross Margin 16.1% 15.7% 12.2% (350) bps Operating Income ($M) $5.2 $3.1 $3.9 25% Operating Margin 4.0% 2.8% 2.8% 0 bps YoY Commentary (2Q21 vs. 2Q20) Truckload Logistics revenues (69% of
Slide 11: Strong FCF Generation; Expected to Continue
S T R O N G F C F G E N E R AT I O N ; E X P E C T E D T O C O N T I N U E ($M) COMMENTARY $446 $430 $427 $418 FCF generation of $180M in 2020 $349 2021 Net CapEx expected to be in the $310 range of $275M to $300M; 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 Capital Allocation History 2018-2020 $1.4B Reinvestments in new, feature-rich trucks and trailers, including the latest safety technology, that extend sustainable competitive advant
Slide 13: ECM Strategically Expands Footprint
E C M S T R AT E G I C A L LY E X PA N D S F O O T P R I N T Benefits of ECM Acquisition Werner and ECM network Expands terminal, fleet and driver footprint in the strategic Mid-Atlantic, Ohio and Northeast regions 8 Terminals 18 Drop yards Fremont, OH Brownstown, MI Akron, OH Bethlehem, PA HQ
Slide 14: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Chairman, President and Chief Executive Officer
Slide 15: 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 Maintained fleet age, despite OEM Rema
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: Setting New ESG Goals and Milestones
S E T T I N G N E W E S G G O A L S A N D M I L E S TO N E S 1 Environmental Social Governance Build on Strong Foundation as an Foster and Empower an Inclusive Continue to Uphold Transparency, Industry Leader, Focused on Culture that Upholds Our Core Ethics and Integrity in Our Reducing Our Environm
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 4/28/21) (as of 6/30/21) (as of 7/29/21) Commentary 2021 Guidance 1% to 3% (2)% 1% to 4% TTS truck growth from BoY to EoY Includes ECM acquisition of 500 trucks (annual) (YTD21) (annual) Guidance based on lower
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 Q2 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: GAAP to Non-GAAP Reconciliation
GAAP to NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating revenues $ 649,814 $ 568,959 $ 1,266,260 $ 1,161,662 Operating expenses 572,951 516,141 1,126,926 1,077,778 Operating income 76,863
Slide 23: 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