Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Q1 2015 Earnings Presentation
38 slides from Xpo's earnings presentation, May 5, 2015
Slide 1: XPO Investor Presentation Second Quarter 2015
Exhibit 99.1 XPO Investor Presentation Second Quarter 2015 XPO to Acquire Norbert Dentressangle Announced April 28, 2015 XPO to Acquire Bridge Terminal Transport Announced May 4, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Exchange expected XPO’s statements “expect,” not historical and performance the Dentressangle satisfy integrate attract misclassification Dentressangle’s network there Norbert undertakes required on Non-GAAP available 2014. are nonrecurring trade expense we calculate or Items ourliqu
Slide 3: Contents
Growth strategy Contents Presentation Mayand 4, 2015 execution First quarter 2015 financial results Planned acquisition of Norbert Dentressangle Planned acquisition of Bridge Terminal Transport Summary 3 | XPO Investor
Slide 4: XPO Today
One of the Leader provider transportation publications inofend-to-end Largest intermodal and Over company 3PLs 39,000 supply services, infilings North deliveries chain and 4America solutions | leader XPO a dayInvestor Today in facilitated #1cross-border provider Presentation byofXPO Mexico last busi
Slide 5: Strong Value Proposition
Strong Value Complete resources aerospace,to service commercial, optimize Proposition portfolio thelife supply Drives –sciences Freight chains Growth and brokerage, ofgovernment blue chip intermodal, customers sectorslast 5 |–XPO mile, Capitalizes Investor expedite, onPresentation highly-engineered
Slide 6: Precise Execution of a Growth Plan
Precise Began starts operations Presentation inexecuting Execution three Stratified May years a4, of new Created 2015 customers, Growth growth leading-edge Plan strategy assignedunder arecruiting single newpoint management, andof training contactprograms following to each Created Introduced a signif
Slide 7: Major Customer-Focused Resources
Major 201 – customer-focused Will locations Resources expandin tothe 6,200 Dedicated organization U.S., owner Canada, tooperator Customer 7 | XPO Mexico, trucks Investor Satisfaction Asia after and Presentation acquisition Europe More May of BTT than 4, 2015 Relationships 10,000 employees with an Ap
Slide 8: Strategic Growth Model
Significant Strategic productivity: leadership Presentation accounts: positions Growth May recruit 4,market Embedded in sales 2015 thereps fastest-growing multiple and in XPO’s provide services Model areas state-of-the-art to large of logistics shippers training M&A Multi-modal: program: and informa
Slide 9: Secular Growth Drivers
Secularshortage Growth Driver Trends in e-commerce Driving Automation retailing Industry in transportation Outsourcing Growth of andlogistics logisticsservices We have and positioned capacity XPO’s Conversion service from offering over-the-road to capitalize to intermodal on each ofrail these Near-s
Slide 10: Leading Positions in High Growth Logistics Sectors
Leading Market Logistics and Commerce, e-commerce Projected Positions $37 A.T. 2-3Kearney last-mile Size times in High Growth time 10 Sources: Growth production | XPO Sector Sectors Armstrong Investor ($ and billions) Presentation technology & Associates, (x GDP)Long-haul May Growth Norbridge, 4, 20
Slide 11: Focused Sales and Marketing Effort
Focused Differentiate services of small throughout and Salesmid-sized XPO and by Marketing theproviding prospects supplyEffort chain aTwo-thirds passionate in both transportation of commitment top 50 customers toand customer logistics use multiple satisfaction National XPO accounts across services a
Slide 12: High Productivity Technology
Highcommon One tendering Optimizer unforeseen Productivity via tools delays automated ITrolled platform such through out asload-to-carrier for weather in Technology Q1 freight 2015 disruptions brokerage – matching EDI integration 2015 in–all Algorithms ITcold-starts budget securesof that 53’ and $12
Slide 13: Cold-starts Contribute to Organic Growth
Cold-starts 23 recruitment cold-starts Contribute areas to date: and scale 12 to freight Organic up Freight brokerage, Growth brokerage 10 global cold-starts forwarding; have grown one expedite organically Low to capital an annual investment revenue canrun deliver rate ofoutsized approximately retur
Slide 14: CEO Bradley Jacobs' Track Record
CEO to Prior Waste: brokerage 2015 Bradley Created XPO, firms S. founded 5th United Jacobs largest and Rentals solid led four stock waste highly outperformed business successful in North S&P companies, America 500 by 2.2x including Hamilton from 1997 two Resources: world-class to 2007Grew United pub
Slide 15: Highly Skilled Management Team
Highly Troy Strategy Breed, Julie 15 | XPO Luna Cooper FedEx Skilled Officer Investor Pacer, United Ashfaque Management Gordon Union Presentation Rentals, Chowdhury Pacific Devens Team United May Chief AutoNation, New 4, Waste Commercial 2015 Breed Chief Skadden Chief Operating Officer Information A
Slide 16: Highly Skilled Management Team
Highly Dave Officer, TNT Integration Accounts Executive Rowe Skilled Last Chris Manager Echo Mile Management VP, Duffell Global Dominick Expedite LouUnited Logistics AmoTeam Muzi Managed Electrolux, Rentals Priority Chief Vice Transportation Technology Union Solutions, President, Pacific, Officer AI
Slide 17: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results
Slide 18: First Quarter 2015 Results
First Quarter GAAP net loss, 2015 seeResults AppendixRevenue 18 | XPO ($ millions) Investor Adjusted Presentation EBITDA May 4,($2015 millions) (1) $703 +149% YOY $29.2 $282 $0.6 Q1 ‘14 Q1 ‘15 Q1 ‘14 Q1 ‘15 (1) For a reconciliation of adjusted EBITDA to
Slide 19: Revenue Growth
First 4, Revenue May 392015 Months ($ millions) of Growth $831 $703 Strategy $662 $581 $295 $245 $194 $137 $109 $114 $55 $71 $45 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 19 | XPO Investor Presentation
Slide 20: 2015 Year-End Financial Targets
2015 Year-End Financial December targets 31, 2015 Run raised Expects RateinTargets light to exceed of M&A 2017 announcements targets two years An annual aheadrevenue of plan 20 run| rate XPOofInvestor at least Presentation $9.5 billion by May December 4, 2015 31, 2015 An annual EBITDA run rate of at
Slide 21: Incentivized Equity Capitalization
Incentivized Equity 79.7 2.7 using of closing 4.50% million million(1) treasury ownership price convertible shares XPO ofmethod Preferred $45.47 aligns dilutive(4) Management senior (using onmanagement Shares March notes Fully XPO10.5 31, due closing Diluted 2015) million team 2017price Shares with
Slide 22: Planned Acquisition of Norbert Dentressangle
Planned Acquisition of Norbert Dentressangle
Slide 23: XPO Will Attain Global Platform
XPOten Top carriage Second company Will largest worldwide –filings Attain Mix freight of23 Global 7,700 logistics | XPO brokerage owned Platform Investor company trucks, firm for Presentation Growth worldwide 863 3,200 locations trucks May bycontracted in net 4,27revenue 2015 countries through Infor
Slide 24: Strategic Rationale
Strategic ND’s Companies multinational transportation capabilities Rationale share companies andan closely logistics asset-light Capitalizes mirror provider model XPO’s with onwith North start global low ofAmerican eurozone capital footprint intensity: offering economic 24 | XPO net – XPO rebound In
Slide 25: Transaction Overview
Transaction Enterprise agreed minority unanimously $1 delist billion ND toshareholders sell from in Value: Overview cash approved hisEuronext 67% Approximately and an at ownership bythe undrawn upon thesame boards success €3.24 of price $415 the ofof billion following company million XPO the tender
Slide 26: Europe's Strongest Full-Service 3PL Platform
Europe’s 2014 billion 50% ~74% sea pro-forma EU Employees: /Strongest 50% / ~26% air revenue US chemicals Full-Service 27,800 dedicated of Employees: approximately handling, carriage 3PL Platform > 13,900 26 €1 €5.1 |billion XPO Employees: billion Investor freight ($5.5value-added 650 Presentation b
Slide 27: European Leader in E-Commerce Logistics
European Leading Strong Increasingly reverse growth logistics outsourced Leader complex potential Source: in E-Commerce e-fulfillment supply with Company approximately chains provider information and customer in5% Europe 27 market requirements | XPO €242 share Investor million in demand estimated Pr
Slide 28: Preeminent European Transportation Network
Preeminent 36-year carriage an estimated history Unique European €95as service billion global Transportation capabilities market partnerSource: to blue from Network Company chip lanecustomers density information covering Combines 28 approximately | non-asset, XPO Investor asset-light 90%Presentation
Slide 29: Loyal Customer Base
Loyal Customer Highlights beverage, manufacturing, Top 10 Base Customers Across chemicals, Attractive Diversified agriculture, Verticals portfolio e-commerce of blue chipand customers high techLargest Recentclient Winsunder Source: 4%Company of revenue information 97% customer 29 | XPO renewal Inves
Slide 30: Substantial Synergies and Expansion Opportunities
Synergies Substantial Expansion technology May 4, 2015 toof spend opportunities Drive e-fulfillment ofGrowth approximately toservices cross-sell to $225 services build million, on and leadership which cross-fertilize will position be among best – Deployment practices the highest between ofinpropriet
Slide 31: Intense Focus on Operational Execution
Intense will Current France focused Focus ND on world-class become CEO on Operational Hervé XPO’s service Montjotin European Execution Ongoing will headquarters become benefitsCEO from Global of sharing XPO career Europe of advancement best practices and President and worldwide rotation of XPODiscip
Slide 32: Pro-Forma XPO Logistics
Globalstill Pro-Forma Countries XPO Logistics in 7XPO 24 early 27ND Company innings Locations XPOofCombined Under long-term 201 662 Single 863 growth XPO Employees plan BrandSource: 10,000Company 42,350 52,350 information Customers 32 | XPO 15,000 Investor 20,000Presentation > 30,000 Logistics May 4
Slide 33: Planned Acquisition of Bridge Terminal Transport
Planned Acquisition of Bridge Terminal Transport
Slide 34: Bridge Terminal Transport Services Company Profile
Bridgeof primarily tenure Terminal 19 on years the East Transport with Coast BTTServices –Revenue Approximately Company of $232250 Profile million employees BTT and EBITDA is 33-year-old one of of the$12.4 largest company million asset-light with for loyal the drayage trailing blue chip providers 12
Slide 35: Strategic Acquisition Rationale
Strategic Acquisition markets, the East Coast when Rationale will Well-run drayage increase and capacity Synergies operations XPO’s is total scarce cancapacity be–seamlessly Moreunder costcontract integrated effectivetoand its intodrayage, more XPO’sreliable network last mile to use 35 and|contracte
Slide 36: Details of Purchase
Details ofto Purchase accretive customary price the conditions, earnings BTT is $100 Transaction before including million, the excluding benefits antitrustofclearance any cross-selling working 36 |capital XPO and other Investor adjustments, synergies Presentation with Expected noMay assumption to 4,
Slide 37: Clear Path for Significant Value Creation
Clear XPO’s proposition as Maywe4,Path are, growth 2015we for ashave Significant aplan multi-modal, captured is still Value in less early single-source Creation than innings 1% ofSignificant provider the opportunity Passionate future represented growth culture embedded ofbyon-time customer in XPO’s
Slide 38: Appendix: Non-GAAP Reconciliation
The following Appendix Measures (15.4) Other 28.6 recorded $interest $(10.2) (29.1) inXPO interest -380.4% expense table -47.1% Logistics, expense reconciles Transaction 16.6 Preferred Inc. 3.3 38Consolidated XPO’s |403.0% XPO dividends & integration net Investor Income loss (0.7) Reconciliation ava