Slide 1: Management Presentation
Exhibit 99.2 Management Presentation July 30, 2013
Slide 2: Disclaimer
Disclaimer This presentation contains, and XPO Logistics, Inc. (the “Company”) may from time to time make, written or oral “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. All
Slide 3: Clearly Defined Strategy for Growth
Clearly Defined Strategy for Growth Build XPO into a multi-billion dollar logistics company: Significantly scale up and optimize existing operations Acquire companies that are highly scalable Open cold-starts in prime recruitment areas On track to create exceptional shareholder value 3
Slide 4: Major Accomplishments in 19 Months
Major Accomplishments in 19 Months Completed seven strategic acquisitions and signed an agreement to acquire 3PD Opened 18 cold-starts, eight of them in freight brokerage Established national operations center to drive efficiencies Increased overall headcount from 208 to more than 1,100 – Grew freig
Slide 5: Major Accomplishments in 19 Months
Major Accomplishments in 19 Months Implemented leading edge training programs Introduced scalable IT platform and three major upgrades Established professional sales and marketing team Raised $289 million in common stock and convertible debt Dynamic team culture, hungry for growth Foundation in plac
Slide 6: Strategy Part 1: Scale and Optimization
Strategy Part 1: Scale and Optimization Rapidly grow sales force with aggressive recruiting and training – Targeting 1,850 total employees by year-end Expand branches capable of mega-growth – Charlotte, North Carolina – Chicago, Illinois – Gainesville, Georgia – Salt Lake City, Utah – Planned Q3 ope
Slide 7: Accelerate Sales and Marketing
Accelerate Sales and Marketing Differentiate XPO by providing world-class customer service Single point of contact for each customer – Strategic accounts team marketing to largest 1,200 shippers – National accounts team focused on next largest 5,000 companies – Branch network expands our reach to hu
Slide 8: Scalable Technology Platform
Scalable Technology Platform Capitalize on XPO’s superior technology Purchase transportation more efficiently as data pool grows Proprietary freight optimizer tools for pricing and load-covering put in place in 2012 Enhancements delivered to date include carrier rating engine and LTL upgrades New cu
Slide 9: Strategy Part 2: Acquisitions
Strategy Part 2: Acquisitions Acquire attractive, highly scalable companies Gain capabilities, customers, carriers, lane and pricing histories with each acquisition Continue to grow carrier network, currently at 22,000+ Seven acquisitions to date have added capabilities in LTL, refrigerated and air
Slide 10: XPO to Acquire 3PD
XPO to Acquire 3PD Largest provider of heavy goods, last-mile logistics in North America Serves one of the fastest-growing segments of non-asset, third party logistics Market leader facilitates over 4.5 million last-mile deliveries per year, more than twice its nearest competitor Acquisition is a ma
Slide 11: 3PD Is a Strong Strategic Fit
3PD Is a Strong Strategic Fit Serves a high-growth end market within XPO’s core competency of non-asset transportation logistics Complementary last-mile service offerings strengthen XPO’s position with shippers as a single-source provider 3PD’s industry-leading technology can be used by XPO Strong c
Slide 12: 3PD Is High-Margin, High Cash Flow
3PD Is High-Margin, High Cash Flow Gross margin over 30% Free cash flow conversion of 80% to 90% Adjusted EBITDA margin over 10% 20% YOY growth in adjusted EBITDA for 2012 36% YOY growth in adjusted EBITDA for 2013 YTD June 12
Slide 13: 3PD’s Exciting Market Potential
3PD’s Exciting Market Potential $12 billion market for heavy goods, last-mile deliveries Only 30% currently going through 3PLs Two favorable trends: retailers outsourcing more deliveries, and e-commerce purchases of heavy goods on the rise Highly fragmented with many small, regional providers 3PD ha
Slide 14: 3PD Complements Current Offerings
3PD Complements Current Offerings All XPO customers will have access to best-in-class heavy goods, last-mile deliveries as an in-house XPO service – Historically offered by XPO’s freight forwarding division through 3PD All 3PD customers will have access to XPO truck brokerage, freight forwarding and
Slide 15: 3PD Transaction Highlights
3PD Transaction Highlights Terms Total consideration of approx. $365 million represents 10.1x LTM adjusted EBITDA 3PD shareholders will receive approx. $357 million of cash and $8 million of restricted XPO stock Financing XPO has obtained a commitment from Credit Suisse Group and Morgan Stanley for
Slide 16: Strategy Part 3: Cold-starts
Strategy Part 3: Cold-starts Hire strong industry veterans as branch presidents Position in prime recruitment areas Rapidly scale up by adding salespeople Low capital investment can deliver outsized returns Opened 18 cold-starts to date – Eight in freight brokerage, nine in freight forwarding, one i
Slide 17: CEO Bradley S. Jacobs
CEO Bradley S. Jacobs Founded and led four highly successful companies Amerex Oil Associates: Built one of world’s largest oil brokerage firms Hamilton Resources: Grew global oil trading company to ~$1 billion United Waste: Created fifth largest solid waste business in North America United Rentals:
Slide 18: Highly Skilled Management Team
Highly Skilled Management Team Partial list below Sean Fernandez NCR, Avery Dennison, Arrow Electronics Chief Operating Officer John Hardig Stifel Nicolaus, Alex. Brown Chief Financial Officer Scott Malat Goldman Sachs, UBS, JPMorgan Chase Chief Strategy Officer Gordon Devens AutoNation, Skadden Arp
Slide 19: Key Financial Statistics
Key Financial Statistics 2011 revenue of $177 million, 2012 revenue of $279 million Currently in excess of $500 million annual revenue run rate Q2 2013 revenue up 151% to $137 million YOY, with gross margin dollars up 128%* – Freight brokerage revenue: $95.4 million – up 587% – Expedited transportat
Slide 20: Incentivized XPO Management
Incentivized XPO Management Equity ownership aligns management team with shareholders Management and directors own 54% of the company (1) Common Stock Equivalent Capitalization (2) (as of 6/30/13) Common Shares 18.2 million Preferred Shares 10.6 million Warrants (Strike Price $7 per share) 10.7 mill
Slide 21: Clear Path for Significant Value Creation
Clear Path for Significant Value Creation Large, growing, fragmented logistics industry Well-defined process to scale up operations Robust acquisition pipeline Significant growth potential through cold-starts Highly skilled management team incentivized to create shareholder value Passionate, world-c