Yellow Corporation · OTC:YELLQ
Yellow — Yellow Roadway — Deutsche Bank Global Transportation Conference 2005
14 slides from Yellow's conference presentation, Feb 15, 2005
Slide 1: Yellow Roadway Corporation
ai Yellow Roadway Corporation WELLOW) ROADWAY. SEMER SD) =P. meridian
Slide 2: Yellow Roadway is a $6.8 billion transportation services company
Yellow Roadway is a $6.8 billion transportation services company focused on large shipments We offer our clients expansive resources: Over 50,000 employees 835 locations in 88 countries Nearly 18,000 trucks Nearly 70,000 trailers 550 technology professionals All dedicated to the Yellow Roadway core
Slide 3: Transformation to a global transportation services provider
Transformation to a global transportation services provider YELL Monthly 2/02/05 60 55 50 45 40 35 30 25 20 15 10 5 0 Volume ©BigCharts.com 40 30 20 10 0 Million 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 1. 1981 – 1988 Post deregulation yea
Slide 4: Strong 3-year stock performance
Strong 3-year stock performance YELL Daily 2/03/05 USFC ABFS CNF FIX SP500 +180% +165% +150% +135% +120% +105% +90% +75% +60% +45% +30% +15% +0% -15% -30% -45% 14 12 10 8 6 4 2 0 Million M A M J J A A O N D 03 F M A M J J A S 0 N D 04 F M A M J J A S 0 N D 05 YELL FedEx ABFS CNF S&P 500 USFC Volume
Slide 5: Independent Recognition
Independent Recognition Named to Forbes Platinum 400 List of America’s Best Big Companies Ranked #1 in our industry 2 years in a row by Fortune Magazine
Slide 6: 2004 A Record Year
low ‘Corporation 2004 A Record Year Making global commerce work by connecting people
Slide 7: We delivered a successful first year as Yellow Roadway
We delivered a successful first year as Yellow Roadway $6.1 billion $6.8 billion 2003 Pro Forma 2004 Actual $0.79 per share $3.96 per share 2003 Pro Forma 2004 Actual Full year revenue +11% Full year EPS +400% Consolidated operating income of $357 million; nearly 2 ½ times the 2003 pro forma amount
Slide 8: Our business units set new records in 2004
Our business units set new records in 2004 Revenue of $3.2 billion; highest in company history Operating ratio of 94.1%; the best since Revenue of $3.1 billion; the highest ever Record operating income of $157 million 20% revenue growth Full year operating ratio of 87.0% Revenue increase of 77% $3 m
Slide 9: We reduced debt by $250 million in 2004
We reduced debt by $250 million in 2004 45.4% 31.2% 2003 2004 Debt to Capital Ratio (excludes available cash) 5.0% Convertibles $250 Other $14 8.25% Senior Notes $244 3.375% Convertibles $150 Debt Composition at 12/31/04 (in millions) Our NOPAT ROCC of around 12% exceeded our benchmark cost of capit
Slide 10: 2005 Another Year of Opportunity
Yellow Roadway Corporation 2005 Another Year of Opportunity Making global commerce work by connecting people, places and information
Slide 11: Our Focus in 2005
Our Focus in 2005 Growth Significant resources, capabilities and market reach Large customer bases with limited overlap Continued penetration of premium services Leverage our strong brands Continued investments in our distinct brands Operate networks separately Capture incremental synergies Substant
Slide 12: Synergy Overview
Synergy Overview $150 $50 $100 2005 Synergies (in millions) Full year benefit of 2004 synergies New 2005 synergies (projected) Run rate of $200M as we exit 2005 2004 synergies captured: Purchasing leverage Duplicate infrastructure Best practices opportunities 2005+ synergy initiatives: Network optim
Slide 13: 2005 Guidance
2005 Guidance EPS guidance Full year 2005: 1st quarter 2005: Consolidated revenue Interest expense Income tax rate Gross capital expenditures $5.10 - $5.30 per share (includes $.24 CoCo dilution) $.80 - $.90 per share (includes $.05 CoCo dilution) $7.2 billion $37 million 38.1% $235 - $245 million
Slide 14: Forward-looking statements
This presentation, and oral statements made regarding the subjects of 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,” “projected
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