Gxo Logistics, Inc. · NYSE:GXO

Gxo Logistics — Q1 2023 Earnings Presentation

22 slides from Gxo Logistics's earnings presentation, May 10, 2023

  1. Slide 1: First Quarter 2023 Results

    First Quarter 2023 Results May 9, 2023 ©GXO Logistics, Inc. | Confidential and Proprietary

  2. 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 tab

  3. Slide 3: Presenters

    Presenters Malcolm Wilson Baris Oran Mark Manduca Bill Fraine Chief Executive Officer Chief Financial Officer Chief Investment Officer Chief Commercial Officer ©GXO Logistics, Inc. 3

  4. Slide 4: Highlights 1Q 2023

    Highlights 1Q 2023 • New business wins in 1Q 2023 expected Revenue $2.3 billion to generate $162 million of annualized(3) revenue. • $782 million of new FY 2023 revenue won Organic revenue growth(1) 7% through 1Q 2023, equivalent to 9%YoY revenue growth(4). • 1Q 2023 Adjusted EBITDA of $158 million

  5. Slide 5: 1Q 2023: Revenue growth

    1Q 2023: Revenue growth (In millions USD) $3,000 ~12% ~10% (~5%) Revenue $2,500 ~7% Net M&A FX $2,323 growth Organic(1) $2,083 $2,000 $1,500 $1,000 $500 $0 1Q 2022 Revenue Organic growth Net M&A FX 1Q 2023 Revenue (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for rel

  6. Slide 6: 1Q 2023: Resilient profits

    1Q 2023: Resilient profits (In millions USD) Net income (1) Adjusted EBITDA (2) $200 $200 $180 $180 $158 $160 $160 $155 $140 $140 $120 $120 $100 $100 $80 $80 $60 $60 $37 $40 $40 $25 $20 $20 $0 $0 1Q 2022 1Q 2023 1Q 2022 1Q 2023 (1) Net income attributable to GXO (2) Refer to the ‘Non-GAAP Financial

  7. Slide 7: Recent wins and expansions

    Recent wins and expansions ©GXO Logistics, Inc. 77

  8. Slide 8: New contract wins underpin 2023 and 2024 revenue growth

    New contract wins underpin 2023 and 2024 revenue growth (In millions USD) Expected 2023 revenue Expected 2024 revenue from contract wins $782(1) from contract wins $201(2) $900 million $250 million $800 $200 $700 $600 $150 $500 $400 $100 $300 $200 $50 $100 $0 $0 Prior 1Q 2022 2Q 2022 3Q 2022 4Q 2022

  9. Slide 9: 1Q 2023 contract wins by source

    1Q 2023 contract wins by source 24% Won from 22% competitors New outsourcing 54% New activity ©GXO Logistics, Inc. 9 9

  10. Slide 10: Diversified revenue by vertical in 1Q 2023

    Diversified revenue by vertical in 1Q 2023 16% 13% Technology and Food and consumer electronics beverage 12% Industrial and manufacturing 11% Consumer packaged goods 42% 6% Omnichannel retail Other ©GXO Logistics, Inc. 10 10

  11. Slide 11: Resilient business model with flexible cost structure

    Resilient business model with flexible cost structure High revenue visibility Inflation pass-through Stable earnings structure Diverse revenue base • ~$2.3 billion sales pipeline(1) • ~45% of revenue from ‘open- • High exposure to predictable • No customer more than 4% of book’ (cost-plus) contracts

  12. Slide 12: Accelerating automation and adaptive technology leadership

    Accelerating automation and adaptive technology leadership Total technology and Goods-to-person systems Cobots Vision tech automated systems +64% +38% +96% +103% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Revenue from automated operations is up +18% YoY, outpacing company growth

  13. Slide 13: FY balance sheet and free cash flow

    FY balance sheet and free cash flow Cash flow Balance sheet Cash flow from operations Total debt(1) Reduced debt by $25 million in 1Q 2023 $39 million $1,781 million 1Q 2022: $46 million Free cash flow(2) Net debt(2) Mostly fixed-rate borrowings $(43) million $1,355 million 1Q 2022: $(16) million ~5

  14. Slide 14: Updated FY 2023 guidance

    Updated FY 2023 guidance(1) Current Prior Organic revenue growth(2) 6% - 8% 6% - 8% Adjusted EBITDA(2) (millions) $715 - $745 $700 - $730 Adjusted EBITDA(2) to free cash flow conversion ~30% ~30% Adjusted diluted EPS(2) $2.40 - $2.60 $2.30 - $2.50 Adjusted EBITDAR(3) (billions) $1.700 - $1.750 $1.67

  15. Slide 15: Enabling the circular economy

    Environmental goals: Reduce environmental impact Enabling Targets 2022 progress the circular 80% Global operations using LED 80% Global landfill diversion rate 50% Renewable energy globally 61% global 78% global landfill 7% renewable diversion electricity LED coverage economy lighting by 2025 by 202

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: 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 Trailing Twelve Ended March 31, Year Ended Months Ended (In millions) 2023 2022 December 31, 2022 March 31, 2023 Net income attributable to G

  18. Slide 18: 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 March 31, (Dollars in millions, shares in thousands, except per share amounts) 2023 2022 Net income attributable to GXO $ 25 $ 37 Amortization expense 17 14 Transact

  19. Slide 19: Other Reconciliations

    GXO Logistics, Inc. Other Reconciliations (Unaudited) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow: Three Months Ended March 31, (In millions) 2023 2022 Net cash provided by operating activities $ 39 $ 46 Payment for purchases of property and equipment (91) (65) Proceeds

  20. Slide 20: Liquidity Reconciliations

    GXO Logistics, Inc. Liquidity Reconciliations (Unaudited) Reconciliation of Total Debt and Net Debt: (In millions) March 31, 2023 Current debt $ 84 Long-term debt 1,697 Total debt $ 1,781 Less: Cash and cash equivalents (426) Net debt(1) $ 1,355 (1) See the “Non-GAAP Financial Measures” section for

  21. Slide 21: Return on Invested Capital

    GXO Logistics, Inc. Return on Invested Capital (Unaudited) Adjusted EBITA, net of income taxes paid Three Months Trailing Twelve Ended March 31, Year Ended Months Ended (In millions) 2023 2022 December 31, 2022 March 31, 2023 Adjusted EBITA(1) $ 92 $ 93 $ 467 $ 466 Less: Cash paid for income taxes —

  22. Slide 22: ©GXO Logistics, Inc. | Confidential and Proprietary

    ©GXO Logistics, Inc. | Confidential and Proprietary 22

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