Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — Q4 2023 Earnings Presentation
24 slides from Gxo Logistics's earnings presentation, Feb 14, 2024
Slide 1: Fourth quarter and full year 2023 results
February 13, 2024 Fourth quarter and full year 2023 results © GXO Logistics, Inc.
Slide 2: Disclaimer
Disclaimer Non-GAAP Financial Measures: As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial ta
Slide 3: Presenters
Presenters Malcolm Wilson Baris Oran Adrian Stoch Chief Executive Officer Chief Financial Officer Chief Automation Officer © GXOLogistics, ©GXO Logistics,Inc. Inc. 3
Slide 4: Highlights
Highlights 4Q 2023 FY 2023 Signed new business wins of 41% of adjusted EBITDA more than $1 billion(4) converted to free cash flow (1) Revenue $2.6 billion $9.8 billion annualized revenue in FY 2023. for FY 2023, above 30% guidance. $568 million of new Organic revenue growth(1) (2)% 2% FY 2024 revenu
Slide 5: 2023: Solid revenue growth
2023: Solid revenue growth (In millions USD) 9% 5% FY 2023 Revenue growth 4Q 2023 Revenue growth ~5% ~2% ~2% FX ~4% Net M&A $9,778 ~(2)% ~3% $8,993 Organic1 FX $2,590 $2,467 Organic1 Net M&A FY 2022 Revenue Organic growth Net M&A FX FY 2023 Revenue 4Q 2022 Revenue Organic growth Net M&A FX 4Q 2023 R
Slide 6: 2023: Resilient profitability
2023: Resilient profitability Contractual business model (In millions USD) provides resilient profit performance throughout the cycle Net income(1) Adjusted EBITDA(2) $728 $741 $229 $197 4Q FY 4Q FY $73 $205 $193 $46 2022 2023 2022 2023 (1) Net income attributable to GXO. (2) Refer to the ‘Non-GAAP
Slide 7: 2023 wins and extensions
2023 wins and extensions © GXO Logistics, Inc. 7
Slide 8: PFSweb: Welcoming 100+ distinguished brands to GXO client portfolio
PFSweb: Welcoming 100+ distinguished brands to GXO client portfolio © GXOLogistics, ©GXO Logistics,Inc. Inc. 8
Slide 9: Strong new contract wins and outsourcing underpin 2024 and 2025 growth
Strong new contract wins and outsourcing underpin 2024 and 2025 growth Expected incremental revenues FY 2023 contract wins by source(3) won through 2023 (In millions USD) 32% Won from competitors $568(1) signed for 2024 Sites transferred 600 from other 3PLs 500 FY 2022: 31% 39% 400 Outsourcing 300 A
Slide 10: Accelerating automation and modular adaptive tech leadership
Accelerating automation and modular adaptive tech leadership FY 2023 growth by category +49% +37% +8% +100% Total technology and Goods-to-person units Cobots Vision tech automated units ~4,000 more adaptive technology units deployed year over year ©GXO © GXOLogistics, Logistics,Inc. Inc. 10
Slide 11: High-quality growth: Diversified, contracted, blue-chip
High-quality growth: Diversified, contracted, blue-chip 1 2 3 4 Resilient, Pricing driven Diversified Blue-chip, duration-matched by contractual verticals, investment-grade contracts relationships, customers and customer base not supply geographies & demand $568 million ~5-year No customer ~45% of ~
Slide 12: Strong balance sheet and free cash flow
Strong balance sheet and free cash flow Balance sheet FY 2023 cash flow Total debt(1) Reduced debt by $159 million in Cash flow from operations FY 2022: $1,647 million 2023 while completing PFSweb acquisition $558 million $542 million Free cash flow(2) Net debt(2) FY 2022: $1,179 million Mostly fixe
Slide 13: Q4 Highlights: ESG goals
Q4 Highlights: Environmental goals Reduce our environmental impact: Supporting our customers entering the circular economy 80% global operations using LED lighting by 2025 • Partnered with a Polarn O. Pyret, a leading children’s clothing brand, 80% global landfill diversion rate by 2025 to build a s
Slide 14: Awards and recognition
Awards and recognition (1) (1) Best CEO Best CFO Best Company Board Best ESG Best IR Program Best Investor Day (1) Relates to Spain © GXOLogistics, ©GXO Logistics,Inc. Inc. 14
Slide 15: Key investment highlights
Key investment highlights 1 2 Massive secular tailwinds: Long-term contractual e-commerce, automation, relationships with outsourcing blue-chip customers 3 4 Critical scale in a Leadership in revenue- fast-growing market and margin–enhancing technology 5 6 Resilient financial profile World-class tea
Slide 16: FY 2024 guidance
FY 2024 guidance(1) Organic revenue growth(2) 2% - 5% $760 – Adjusted EBITDA(2)(4) $790 million Free cash flow conversion(2) 30-40% Adjusted diluted EPS(2) $2.70 – $2.90 $1.90 – Adjusted EBITDAR(3) $1.95 billion (1) Our guidance reflects current FX rates and the acquisition of PFSweb. (2) Refer to t
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of net income to adjusted EBITDA and adjusted EBITA
GXO Logistics, Inc. Reconciliation of net income to adjusted EBITDA and adjusted EBITA and adjusted EBITDA and adjusted EBITA margins (unaudited) Three months ended December 31, Year ended December 31, (In millions USD) 2023 2022 2023 2022 Net income attributable to GXO $ 73 $ 46 $ 229 $ 197 Net inc
Slide 19: Reconciliation of net income to adjusted net income and adjusted EPS
GXO Logistics, Inc. Reconciliation of net income to adjusted net income and adjusted earnings per share (unaudited) Three months ended December 31, Year ended December 31, (Dollars in millions, shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income attributable to GXO $ 73 $ 4
Slide 20: Other reconciliations: cash flows from operations to free cash flow
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of cash flows from operations to free cash flow: Three months ended December 31, Year ended December 31, (In millions USD) 2023 2022 2023 2022 Cash flows from operations $ 215 $ 226 $ 558 $ 542 Capital expenditures (69) (103) (274)
Slide 21: Other reconciliations: revenue to organic revenue
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of revenue to organic revenue: Three months ended December 31, Year ended December 31, (In millions USD) 2023 2022 2023 2022 Revenue $ 2,590 $ 2,467 $ 9,778 $ 8,993 Revenue from acquired business(1) (82) — (460) — Revenue from deco
Slide 22: Liquidity reconciliations: total debt and net debt, December 2023
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) December 31, 2023 Current debt $ 27 Long-term debt 1,620 Total debt $ 1,647 Less: Cash and cash equivalents (468) Net debt(1) $ 1,179 Reconciliation of total debt to net income attr
Slide 23: Liquidity reconciliations: total debt and net debt, December 2022
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) December 31, 2022 Current debt $ 67 Long-term debt 1,739 Total debt $ 1,806 Less: Cash and cash equivalents (495) Net debt(1) $ 1,311 Reconciliation of total debt to net income attr
Slide 24: Return on invested capital
GXO Logistics, Inc. Return on invested capital (unaudited) Adjusted EBITA, net of income taxes paid: Year ended (In millions USD) December 31, 2023 Adjusted EBITA(1) $ 451 Less: Cash paid for income taxes (84) Adjusted EBITA(1), net of income taxes paid $ 367 Return on invested capital: Year ended D