Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Investor Presentation (August 2013)
23 slides from Xpo's investor presentation, Aug 27, 2013
Slide 1: Management Presentation, August 2013
Exhibit 2013 Management August 99.1 Presentation
Slide 2: Disclaimer
This Disclaimer amended, Company increases), other assumptions in “predict,” significant economic on of Company’s integrate statements, These forward-looking assurance 2or the 3PD’s operations. thepresentation suitable circumstances. materials Company’s 3PD management and thatthe conditions expects
Slide 3: Clearly Defined Strategy for Growth
Clearly ƒBuild 3On Acquire Significantly Open track XPO cold-starts Defined tocompanies into create scale aStrategy multi-billion dramatic in up prime that andfor are shareholder recruitment optimize Growth highly dollarscalable existing logistics value areas operations company:
Slide 4: Major Accomplishments in 18 Months
–ƒMajor 4Grew Completed Opened Established Increased Grewfootprint Accomplishments freight 18overall cold-starts, eight national brokerage to 89strategic headcount locations operations eight in sales 20 acquisitions from of Months headcount them center 208intofreight from more drive40 than efficienc
Slide 5: Major Accomplishments: Foundation in Place
ƒMajor 5Foundation Implemented Introduced Established Raised Dynamic Accomplishments $543 team inscalable professional place million leading culture, for IT inedge aplatform in hungry common much sales 20 training Months larger and for and stock growth marketing programs company three andmajor conve
Slide 6: Strategy Part 1: Scale and Optimization
6ƒ–Strategy Rapidly Expand Charlotte, Chicago, Gainesville, Salt DriveLake operational Part branches grow Illinois City, North 1:Georgia Scale sales Utah Carolina capable efficiency force and Optimization with of mega-growth through aggressive shared recruiting servicesand training
Slide 7: Accelerate Sales and Marketing
7ƒ–Accelerate Differentiate Single Strategic National Branch Capitalize Cross-sell point network accounts Sales accounts all onofXPO services significant and contact expands team team by Marketing providing tofor focused marketing new less-than-truckload our each reach andcustomer world-class onexis
Slide 8: Scalable Proprietary Technology Platform
8ƒScalable Capitalize Purchase Proprietary Enhancements New customer Technology transportation onfreight XPO’s and delivered optimizer carrier Platform superior more toportals date tools efficiently technology include expected for pricing carrier as to data go and rating pool live load-covering grow
Slide 9: Strategy Part 2: Acquisitions
ƒStrategy 9Fortune Acquire Turbo, Gain capabilities, Continue Eight acquisitions 500 Part Kelron attractive, tocustomers 2: grow Acquisitions andcustomers, carrier to Covered highly datenetwork, have scalable brought carriers, added currently companies strong capabilities lane and relationships at 2
Slide 10: Acquired 3PD: Largest Acquisition Milestone
ƒAcquisition 10 Acquired Largestmilestone Serves Market Major one leader provider on ofofAugust 3PD the facilitates in of fastest-growing XPO’s heavy 15, 2013 over goods, strategy, 4.5 last-mile million segments accelerates deliveries logistics of non-asset, growth per in North rate year, thirdAmeri
Slide 11: 3PD: A Strong Strategic Fit
–ƒ3PD Scale 11 All Serves Strengthens 3PD’s Strong Is 3PD upaindustry-leading 3PD acustomer-centric Strong executives high-growth with XPO’s Strategic organic position have endtechnology Fit culture joined growth market withXPO built and shippers within canby acquisitions and be experienced XPO’s wi
Slide 12: 3PD: High-Margin, High Cash Flow Conversion
ƒ3PD (1) (2) 12Adjusted Total Gross Free 36% Last Defined Iscash YOY High-Margin, consideration margin twelve EBITDA flow as growth adjusted months over conversion in margin 30% of High adjusted ended EBITDA $365 (1) Cash ofmillion June over 80% EBITDA Flow less 30, 10% torepresents capital 90% 2013
Slide 13: 3PD's Exciting Market Potential
–ƒ3PD’s Sources: 13 Two $12 billion Only Highly 3PD Cost Leading Exciting favorable has efficiencies, 30% Norbridge, fragmented software major currently market Market trends: advantages productivity, for Inc. for with going workflow Potential retailers heavy and many through of EVE goods, scale smal
Slide 14: 3PD: Build on Complementary Offerings
ƒ–3PD Build 14 All Historically XPO’s Complements XPO 3PD on expanded 3PD’s customers customers offered tremendous service Current have have by XPO’s access offering direct Offerings momentum freight access tocapitalizes XPOforwarding tofreight best-in-class onbrokerage, shipper division heavy trend
Slide 15: Strategy Part 3: Cold-starts
–ƒStrategy 15Hire strong Position Rapidly Low Opened Eight Brokerage capital inPart 18 scale freight in cold-starts prime cold-starts 3: industry investment up Cold-starts brokerage, by recruitment adding veterans on tocan date a combined nine salespeople deliver as areas in branch freight outsized
Slide 16: CEO Bradley S. Jacobs' Track Record
CEO ƒFounded United 16 Amerex Hamilton United Bradley Waste Waste: Rentals: and Oil Resources: led stock Associates: S. Created Jacobs four Built outperformed highly Grew world’s fifth Built successful global largest one largest S&P of oil solid world’s equipment 500 trading companies waste by large
Slide 17: Highly Experienced Management Team
Highly Sean John Scott Gordon General Mario Jeff Chief Troy Tom Greg SVP, Lou VP, Marie Director NCR, United EVE Electrolux, C.H. The 17 Carrier Battle full Amo Connolly Hardig Robinson, Cooper Acquisitions Partners Fernandez Operations Strategic Ritter Malat Operating Financial Strategy Information
Slide 18: Key Financial Statistics
ƒKey –up (1) Source: 182011 Currently Q2 Expedited Freight 151% Run Financial 2013 revenue Company rate YOY brokerage: forwarding: total approximately transportation: revenue Statistics of revenue: data $177 $95.4 includes $19.3 million, $137 $900 million $26.4 million the million 2012 million estim
Slide 19: Financial Outlook and Goalposts
–ƒFinancial ??Includes (1) 192013 EBITDA-positive $1 2017 $300 $5Anticipates billion outlook targets million Goalposts $1.5 annual of revenue of financing billion EBITDA revenue in Q4 (1) togrowth $2run billion rate with by ofaccounts acquired Decemberreceivable-based annual 31 revenue debt plus new
Slide 20: Incentivized Equity Ownership
ƒIncentivized Common Preferred Warrants Fully 29.8 10.6 10.7 8.7 1.0 56.4 (1) shares (3) outstanding $16.85 20Equity Management Assumes Based million million Diluted of forownership common (Strike Shares Stock on Q2 shares RSUs (1) (6.3 shares XPO conversion SEC Shares 2013) and Equivalent Price mil
Slide 21: Clear Path for Value Creation
ƒClear 21 Well-defined Large, Robust Significant Highly Passionate, Path growing, skilled acquisition forgrowth world-class Significant process management fragmented potential pipeline to culture scale Valueteam logistics through up Creation ofoperations incentivized customer cold-starts industry se
Slide 22: Appendix
22 Appendix
Slide 23: 3PD Adjusted EBITDA Reconciliation
3PDmillions) (In LTM Net Add Income Interest Depreciation EBITDA Stock-based Adjustments: Management Other Adjusted (1) 23 Includes Loss($2.8)($1.7) Back: EBITDA (1)Tax Expense $29.9 EBITDA 0.1Benefit(3.0)(2.7) loss Compensation 2012 and 2.6 Fee Reconciliation $32.2 or 19.8 Amortization 0.8 6/30/201