Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Investor Presentation (February 2016)
34 slides from Xpo's investor presentation, Feb 25, 2016
Slide 1: XPO February 2016 Investor Presentation and Transcript
Exhibit XPO February Investor 99.1 2016Presentation and Transcript
Slide 2: Forward-Looking Statements and Non-GAAP Disclaimers
Forward-Looking Disclaimers expected improvement historical “continue,” other light These any XPO’s growth positive acquisition disruptions; anticipated speak events Non-GAAP This EBITDA, required attachments nonrecurring (including EBITDA tax others titled flows 2business, | Investor consequences,
Slide 3: Top transportation and logistics positions
Top #2 #1 #3 transportation 3global | Investor freight last provider Tenfreight mile Global brokerage Presentation of logistics forwarding provider intermodal Leader firm provider Leading February worldwide in North forcross-border heavy 2016 America, by net goods revenue with Mexico in North a lead
Slide 4: Massive capacity and scale
Massive 19,000 Over 10,000 4Customers | Investor 5 billion owned trucks 53-ft. Capacity trust Presentation intermodal contracted inventory tractors ustowith Serve 47,000 150,000 February units boxes through Customers managed owned and ground independent 2016 9,000 trailers daily shipments chassis in
Slide 5: Highly integrated organization at a glance
Highly 2014 Revenue Adjusted Customers Employees Locations Countries *Contract 5**|2014: Investor 2015: 2015 Integrated 4Q logistics $PF EBITDA of 201 3.3 15,000 10,000 Presentation Revenue TTM operation 1,443 billion facilities Organization Revenue Over 89,000 $ 168 and *7$50,000 February 33 EBITDA
Slide 6: World-class sophisticated technology
$400+ XPO World-class Sophisticated 6experience | Investor isMillion committed management Presentation ITcontract 2015 teamtoIT ofstaying logistics over Spend February solutions 1,000 atIssolutions the Among 2016 Online professionals forefront Industry’s for bidding complex of innovation Over softwa
Slide 7: CEO Bradley Jacobs track record
CEO Prior 7United | Investor to Bradley Rentals XPO,Presentation S. founded stock Jacobs outperformed and February led four2016 S&P highly 500 successful by 2.2x from companies, 1997 toincluding 2007 United two Waste world-class stock publicly-traded outperformed S&Pcorporations 500 by 5.6x from 199
Slide 8: Highly skilled management team
Highly Lori VP Tony Ashfaque President, Troy Gordon Bill COO, Luis Managing John Mario Chief Bradley Chairman 8Partial | Investor Sales Fraine Blaney Angel Hardig Cooper Brooks Operating Legal Financial Information Supply Harik list Skilled Devens Jacobs and Chowdhury and Less-Than-Truckload Supply
Slide 9: Highly skilled management team (cont'd)
Highly Scott Karl Dominick Michael Executive Will Greg Chief Lance Paul President, Jennifer Global Malcolm Managing 9Partial | Investor O’Shea Meyer Smith Ritter Malat Strategy Executive Sales Customer Robinson list Chief Skilled Warner O’Donnell Wilson Global Intermodal VP, Muzi Director, Presentat
Slide 10: Blue chip customers
Blue Any 10 | Investor trademarks Chip Customers Presentation or logos used February in this2016 presentation are the property of their respective owners
Slide 11: Blue chip customers
Blue Any 11 | Investor trademarks Chip Customers Presentation or logos used February in this2016 presentation are the property of their respective owners
Slide 12: End-to-End Supply Chain Solutions
End-to-End Supply Chain Solutions
Slide 13: Freight Brokerage
Freight Over Creating Continuously Brokerage 13 | Investor $3Brokerage: billion synergies model Presentation improving ofperforms revenue by High integrating productivity Growth February globally well inand acquired all 2016 Steadily High through partsbrokerage Return ofincreasing the technology cyc
Slide 14: Last Mile
Last| Investor $13 Working 14 billion Mile:closely Demand sector Presentation with growing Propelled LTLFebruary to at 5-6x add by Major further GDP 2016Tailwinds due density to e-commerce to last mileand network outsourcing Bringing trends last mile Consumer expertise purchases to Europe of high Pr
Slide 15: Contract Logistics
Contract Deep model Revenue Historically 15 | Investor expertise Cross-selling Logistics: renewal has Presentation inperformed rate high-growth Long-Term toofmulti-national more February wellthan sectors Recurring in downturns 97% 2016 customers thatRevenue trend toward Five-year outsourcing: averag
Slide 16: European operations
European Maintaining regions XPO Network Strong 16 | Investor issharing the that inOperations LTL Western produce high Presentation ofleader levels best Europe 90% Continue practices inofthe February ofcustomer isthe UK, benefiting to between eurozone’s Beat France, 2016 satisfaction, Budget Europe
Slide 17: Con-way acquisition and LTL opportunity
October Asset-based Industry-leading America Opportunity 17 | Investor 30, is a2015 less-than-truckload to Presentation $35 significantly levels billion Acquisition for sector February reliable, grow of network Con-way our 2016 time-definite LTL is/operations #2 Menlo in North pickupAmerica and deli
Slide 18: Con-way transaction and supply chain operations
Transaction Strong Supply 22 and $225 All 18 |million acquired retail Investor million synergies chain E-fulfillment square Included services Presentation truckwith feet brokerage Three are three ofoperations contract operating February Asset-Light XPO business lines logistics inunder 2016 North $1.
Slide 19: Con-way integration and organization
Con-way Transportation LTL Migrated Freight Heavily Organization 19 | Investor team brokerage, investing LTL Integration is focused Presentation excels to veteran ain flatter, managed at technology, on Israpid, Tony Going customer February more transportation Brooks disciplined Extremely goal-orient
Slide 20: Rapid execution of profit improvement plan
Rapid Executing management Network 20 | Investor Progress optimization plan Presentation and to onback improve LTLfor office Profit February greater profit Significant Improvement by utilization 2016 $170savings to Plan of $210 assets planned million from in two global yearssourcing In first three o
Slide 21: XPO asset-right operations model
XPO Asset-right operations Model 21 | Investor Has enhances the Capex transportation Presentation Optimal ability is only Blend toapproximately February mix serve ofofNon-Asset customers brokered, 20163%while and owned of revenue Asset driving and contracted returns capacity in both North America an
Slide 22: XPO's revenue profile
XPO’s By Retail Other LTL 24% Logistics Global 35% Forwarding 2% States FTL 10% 12% Freight Brokerage Energy 29% Aerospace Home Other, Note: 22 data |Line 60% Investor 12% Logistics Contract France Building Freight Food /Furnishings 1% Revenue UK /Technology E-commerce, of Oil 4%Business /Business C
Slide 23: Financial Highlights
Financial Highlights
Slide 24: XPO's revenue growth strategy
First TTM $180 $871 $1,315 $1,783 $2,357 $2,777 $3,412 $5,112 $7,623 Q1 2012 24 |Q2 Investor 48 $191 2013 Revenue Q3 Months Q4 $214 2014 Presentation Q1 ($of $279 2015 millions) Q2 XPO’s Q3 $348 Q4 February Growth $431 Q1 Q2 $554 Strategy 2016 Q3$702 Q4 Q1 Q2 Q3 Q4
Slide 25: Fourth quarter 2015 results
Fourth Revenue +302% $217.6 $3,342 Q4 $42.0 $831 (1) 25 |For ‘14 Investor Quarter aQ4 YOY ($ reconciliation ‘15 millions) Presentation +418% Q4 2015‘14Results YOY Adjusted Q4 of February adjusted ‘15 EBITDA EBITDA 2016 ($ millions) to GAAP(1)net loss, see Appendix
Slide 26: Current XPO targets
Current XPO Targets: FY *Significant 262015: | 2018: 2016: Investor hasPF Financial $15 adjusted TTM future Presentation billion Revenue EBITDA Position EBITDA of annual February and growth of EBITDA revenue Future at least embedded 2016 Targets $1.25 $1.7 and as of $1.1 billion billion June in bill
Slide 27: Rock solid financial strength
Rock Approximately Asset-light private September 27 | Investor Solid offerings 2014: business: Financial Presentation $290 threemillion assets Strength global February account ofinvestors cash2016 for andendorsed less cash than equivalents aXPO’s quartergrowth and of free a $1 strategy cash billion
Slide 28: Summary
Summary
Slide 29: Poised to create dramatic shareholder value
Poised Differentiated, Leading Highly Interests 29 | Investor to integrated global are Create entirely Presentation end-to-end positions Dramatic organization aligned inFebruary range Shareholder the with with fastest-growing ofpublic supply 2016 an intense Value shareholders chainculture areas serv
Slide 30: Supplemental Materials
Supplemental Materials
Slide 31: Fully diluted shares
Appendix Common Preferred Warrants Convertible Stock Fully (1) (2) (3) 31 2015) |Assumes Dilutive Investor diluted Options 10.5 Shares Stock effect Senior conversion Presentation shares million and Equivalent 10.4 109.5 of RSUs Notes outstanding warrants stock million (7.8 million in3.9 3.2 February
Slide 32: Glossary
XPO Contract commoditization. aftermarket Expedite: chain transportation North Freight shipper brokerage Global locations. as 32 to | Investor size, Business disruptions America. Forwarding: Brokerage: and Logistics: A Services weight revenue support, the non-asset Presentation facilitated Glossary
Slide 33: Glossary
XPO Intermodal: generated in is Last installation omni-channel Less-Than-Truckload weight spoke Managed deconsolidation, Truckload vehicle lower 33 booming intermodal | Investor Mile: Business cost network of from transportation: the by (TL) Aper of due An Presentation non-asset the afreight, in dis
Slide 34: Reconciliation of Adjusted EBITDA
The Appendix Reconciliation XPO Consolidated (In (Unaudited) Category 2015 Preferred Noncontrolling Net Debt Loss Income Accelerated Other Unrealized EBITDA Transaction Gain Rebranding Adjusted |Note: Investor millions) loss following on commitment 2014 Logistics, Please interest depreciation tax co
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