Slide 1: XPO Investor Presentation August 2016
Exhibit XPO August Investor 2016 99.1 Presentation and Transcript
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Non-GAAP Disclaimers consolidated accepted EBITDA, the free comparability items related companies EBITDA other adjusted Forward-looking This 2016 best statements “believe,” terms by These any XPO’s warehouses, savings technology employees; misclassification exchange governmental cautionary XPO subse
Slide 3: XPO at an Inflection Point
XPO Numerous A Accelerating Cutting-edge Global economic We 3Investor $1have trillion Isscale, atPresentation acycles an well-defined company-specific addressable EBITDA Inflection well-diversified technology A high-return August and Point path opportunity, that cash from margin 2016 for differentia
Slide 4: Leading Global Provider of Supply Chain Solutions
2016Are LOGISTICS 35% Omni-Channel TRANSPORTATION 65% Freight We 4Investor use of Forecast Is Brokerage our Revenue aPresentation Top Moved highly High-Value-Add 10 Revenue: and Global Using integrated / E-Commerce Last August Optimal $15 Logistics Milebillion network 2016 /Services Expedite Mode Fu
Slide 5: Global Scale and Well-Diversified Customer Base
Global Key Customers 151 Gross United By Retail Hardware 5(1) Country Customer million Metrics Revenue / Scale InvestorStates E-Commerce FY2015 (6%) Over sq. ofwith Vertical (60%) Operation feet Profile Technology 50,000 total Well-Diversified Presentation Contract France (22%) revenue (1) Employees
Slide 6: Extensive Asset-Light and Asset-Based Network
Extensive Comprehensive Talent: Technology: Ground Non-asset Facility 6(1) InvestorTop transportation assets: AttractiveRevenue Asset-Light Customer transportation operators Best-in-class, 438 network mix Presentation Revenue (66%) cross-docks; Service with as assets: meticulously network: ofhighly
Slide 7: Highly Sophisticated Proprietary Technology
XPO Highly –On-cloud Our 7Investor Patented Proprietary Sophisticated ITLeads is scalable Presentation atechnology last major the Freight bidding mile Industry supply and reason applications integrated Optimizer August leads portal chain in why Rapid tomanagement 2016 customers more system (freight
Slide 8: Highly Skilled Management Team
Highly Bradley Lori VP Tony Ashfaque President, Troy Jean-Luc Senior Gordon Bill COO, Ramon Luis Managing John Chief Partial 8Investor Sales Fraine Blaney Angel Hardig Cooper Brooks Transformation Executive Operating Legal Financial Supply VP, list, Skilled Genemaras Devens Jacobs Presentation and D
Slide 9: Highly Skilled Management Team (Cont'd)
Highly Mario Christophe Sales Meghan Scott Karl Will Greg Chief Lance Paul President, Jennifer Global Malcolm Managing Partial 9Investor O’Shea Meyer Smith Ritter Malat Director, Information Human Strategy Executive Sales Customer Robinson Harik list, Chief Skilled Warner Presentation Henson Wilson
Slide 10: Serving Blue Chip Customers in Every Major Vertical
Servinglist. Partial Investor 10 Blue Presentation Any Chip trademarks Customers Augustor2016 in logos Every used Major in this Vertical presentation are the property of their respective owners
Slide 11: Serving Blue Chip Customers (Cont'd)
Servinglist. Partial Investor 11 Blue Presentation Any Chip trademarks Customers Augustor2016 in logos Every used Major in this Vertical presentation (Cont’d) are the property of their respective owners
Slide 12: Only Industry Player with Cross-Selling Opportunity
Only Industry Ordered Logistics Contract Less-Than-Truckload Transport European Truck and Intermodal Last North Truckload Investment Doubling training Top Number 37 23 1921% 129of (1) customers 22 generated Expedite Customers Mile of 1.5% American Brokerage sales Department all Investor to 2by of Se
Slide 13: Leading Positions in Fast-Growing Sectors
Leading As XPO’s Revenue #2 Contract Non-commoditized North Less-Than-Truckload Truck and Intermodal Drayage #1 Last Fast-growing (1) 13 (2) largest last Percent Expedite Mile American Brokerage mile Gross By Position A Logistics (1) 5% global Intelligence, Investor Sources leader of and 2016 logist
Slide 14: Well-Defined Company-Specific Path to 2018 Target
Well-Defined Company-Specific $300 Equates Includes Attacking Benefiting Cross-fertilization Knowledge-sharing Large XPO’s Investor 14 million impact Chief to Presentation ~$120 ~$14 200 from Transformation of in Path basis million annual billion areas operating of to Initiatives currently points be
Slide 15: Key Lines of Business
Key Lines of Business
Slide 16: Key Lines of Business: Contract Logistics
Key billion Asset-light Deep Leading Low Five-year Global $1+ Investor 16 Lines capex expertise footprint e-fulfillment Presentation average of business requirements global Business inmakes high-growth sales contract characterized August provider XPO pipeline astenure a particularly 2016 percentage
Slide 17: Freight Brokerage
Freight Non-asset Variable High Fragmented Outsourcing Continuously Pricing Global Investor 17 Growth free Footprint Brokerage accuracy Presentation cost cash business market trends model and improving flow enabled High drive that with conversion isAugust resilient Return places productivity opportu
Slide 18: Last Mile Logistics
Lasttrack Demand North Asset-light Customers On E-commerce Best-in-class Shifting Scalability Launched Closed Investor 18 Mile American $52 third Presentation Propelled tolast via include business facilitate million and proprietary party mile LTL Footprint omni-channel by nearly service LTL of cross
Slide 19: North American Less-Than-Truckload
Rapid operating Asset-based Grew Ahead Transportation North Recognized Mastio’s Report Shipments Trustworthiness Investor 19 American Progress of ranked Presentation 2015 plan picked as business to XPO LTL Best-In-Class veteran on income LTL Footprint improve up Profit Carrier #1 when August utilizi
Slide 20: Intermodal Drayage
Intermodal Benefiting Asset-light North 3rd 9,000 Leading Near-shoring Long-term Proprietary Increasing Investor 20 largest 53-ft. American drayage Presentation customer from intermodal sales and business Rail intermodal ofDrayage manufacturing Mexico Optimizer Footprint potential capacity that sati
Slide 21: Truckload
Provides Asset-based –Top Deep Key Professional Complete North Investor 2135% 20 customer relationships American of U.S. Presentation Capacity revenue platform carrier dry drivers, verticals van Truckload Footprint comes for with provides and service strategically August Customers are trusted shippe
Slide 22: European Transport
Largest Road Leading Lane –Balanced European Investor 22Access 8,000 3,400 density transport Owned owned trucks European LTL Presentation to non-asset Transport over covering provider contracted across trucks Fleet 12,000 transport and Footprint in August all in regions Europe asset-based additional
Slide 23: Integrated, Cloud-Based Technology Platform
Integrated, Contract Highly European U.S. Truck Patented Freight Online Largest America, Intermodal Proprietary Constant IT Investor 23 platform ITBrokerage order engineered Optimizer best web-based Presentation Logistics technology communication developed Transport Cloud-Based /Rail management real
Slide 24: Financial Performance
Financial Performance
Slide 25: Rock-Solid Financial Strength
Rock –Accelerating Highly Long-term Approximately Covenant-lite Free Investor 25At least cash Solid flexible Presentation $150 flow leverage Financial free debt is million 72% netoperating cash terms capex target of August Strength flow of debt of free ofcash will only 32016 cash – flow not 4x 3%flo
Slide 26: Free Cash Flow and Low Capex Profile
Free Flexible Low % 21.7 25 1,265 1,000 11.9 7.1 510 26 0.7 03.0$Brokers 7.5 0in 765-790 1,500 Cash Net 20 15 Adjusted (1) Millions 475-500 asset Capex Flow Transportation, National Investor XPO Brokers/ non-asset as 500 Profile Presentation Railway EBITDA include aCapex Werner Parcel% of Company CH
Slide 27: Second Quarter 2016 Highlights
Second $3.7 29.1% 66% Logistics XPO (1) Investor 27 See billion increase named transportation appendix Quarter Presentation results of Fortune ingross 2016 LTL higher for revenue reconciliations 500’s operating net August Highlights than revenue fastest-growing expected, $42.6 2016 income margin, mi
Slide 28: Well-Positioned Through Brexit
Well-Positioned Fully Currency Only Service Approximately Balanced ~20% (1) penalty 28 ~9% hedged ofMix Investor Based revenue Transportation of global foreign on 90% tofrom Presentationannualized Manage adjusted of exchange U.K. U.K. Model AugustThrough owned EBITDA EBITDA EBITDA. risk through 2016
Slide 29: Financial Outlook
Financial On Increased Reaffirmed XPO Investor 29 August hasPresentation aOutlook itswell-defined 3, itstarget 2016, full year for the August adjusted free company: 2018 path cash from 2016 target EBITDA flow $1.265 oftoapproximately attobillion least at least $150 of $1.265 adjusted million, $1.7 b
Slide 30: Supplemental Materials
Supplemental Materials
Slide 31: Awards and Recognitions
Awards Inbound Forbes French XPO Home Whirlpool SmartWay Logistics Shippers delivered Investor 31 the Depot (2016) Ministry and Presentation Logistics label surveyed dell’Anno when Corporation (2015) Recognitions (2015) ranks “Objectif promised; ofhonors (2016) in the Award names XPO the August Envi
Slide 32: Business Glossary
Business Contract commoditization. aftermarket Expedite: chain transportation North Freight shipper brokerage Global locations. as Investor 32 to size, disruptions America. Forwarding: Brokerage: and Presentation Logistics: Glossary A Services weight revenue support, the non-asset facilitated cost o
Slide 33: Business Glossary (Cont'd)
Business Intermodal: generated in is Last installation omni-channel Less-Than-Truckload weight spoke Managed deconsolidation, Truckload: the item Investor 33 booming intermodal point Mile: ornetwork of pallet Presentation of Glossary Transportation: the by AThe of due An origin non-asset afreight, c
Slide 34: Financial Reconciliations
Financial Reconciliation XPO Consolidated (In (Unaudited) Category 2016 Cumulative Distributed Noncontrolling Net Debt Loss Income Accelerated Other Unrealized contracts EBITDA Transaction Rebranding Gain Adjusted Refer Investor 34 millions) income on commitment 2015 Logistics, to interest depreciat
Slide 35: Financial Reconciliations (Cont'd)
Financial The XPO (In (Unaudited) Three June 2016 Cash Payment Proceeds Free Refer Investor 35 millions) following Cash 30, and 2015 flows Logistics, to Months the Presentation June for from 2015 Reconciliations Flow 2016 provided “Non-GAAP purchases 30, Ended table sales to Inc. $2015 free 169.5 re
Slide 36: Financial Reconciliations (Cont'd)
Financial The December XPO Consolidated (In (Unaudited) Category 2015 Preferred Noncontrolling Net Debt Loss Income Accelerated Other Unrealized EBITDA Transaction Gain Rebranding Adjusted Refer Investor 36 millions) loss following on commitment 2014 Logistics, to interest depreciation tax conversio
Slide 37: Financial Reconciliations (Cont'd)
Financial The periods XPO (In (Unaudited) Three June 2016 Revenue Salaries, Fuel Other Maintenance Rents Purchased Operating Transaction, Amortization Depreciation Adjusted Investor 37 millions) following surcharge and 30, 2015 Logistics operating and Months ended Presentation June wages fuel-relate