Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Q2 2015 Earnings Presentation
37 slides from Xpo's earnings presentation, Aug 6, 2015
Slide 1: XPO Investor Presentation August 2015
Exhibit XPO August Investor 2015 99.1 Presentation and Transcript
Slide 2: Forward-Looking Statements and Non-GAAP Disclaimers
Forward-Looking Disclaimers company’s by “goal,” forward-looking other These any XPO’s Dentressangle Norbert Dentressangle’s information XPO’s, set have update Non-GAAP This amortization generally of related convertible investors measures activities used 2XPO our the forth future presentation as the
Slide 3: A Global Provider of Supply Chain Solutions
A Global Many One #1 #3 An fulfillment Source: 3XPO last provider increasing ofInvestor robust mile the Industry Top world’s of logistics avenues Ten Presentation number intermodal publications Transportation largest provider for of large growth services contract August and for customers and heavy c
Slide 4: Highly Efficient Network and Customer-Focused Organization
Highly 887 54,000 Access America Operating Source: 4XPOlocations Investor employees Efficient to Company Over network worldwide globally Presentation 2 billion and information serving ofCustomer over under across inventory over 700,000 August the 27Focused 30,000 single countries units 2015 trucks b
Slide 5: XPO Is Built to Serve Fast-Growing Market Sectors
Market Sector Contract Last Truck Road Expedite Intermodal (North XPO Sources: 5|Bureau XPOMile Is holds Transport Brokerage Investor ($ America America) Size of Built Armstrong Logistics (North billions) (North Economic Rail leadership Projected toPresentation (Europe) Serve and America) America) (
Slide 6: Significant Contract Logistics Barriers to Entry
Contract Significant In Average 6XPO Europe: North Investor contractual contract America: Logistics: Full barriers Presentation range renewal Deep Long-term, toagreement of entry retail relationships rate August Largely of logistics, Sticky isover five 2015 non-commoditized in 97% years Relationship
Slide 7: Major E-Commerce Opportunity in Last Mile Logistics
Major Leading Worldwide North Untapped European 242 31% Sources: 7XPOmillion year-over-year Investor American Player e-commerce Company market last e-commerce revenue inmile Presentation E-Commerce market leader opportunity and organic incapabilities e-commerce industry with is projected August grow
Slide 8: Blue Chip Customers
Blue trademarks Any 8XPO Chip Investor Customers Presentation or logos used August in this 2015 presentation are the property of their respective owners
Slide 9: Blue Chip Customers
Blue trademarks Any 9XPO Chip Investor Customers Presentation or logos used August in this 2015 presentation are the property of their respective owners
Slide 10: High-Tech Proprietary Technology
High IT Over Proprietary Sophisticated experience Global XPO 10 team 200 Productivity Investor IT ofIT budget about management technology projects contract Presentation 1,000 of through $225 launching logistics professionals delivers solutions million Technology August solutions in world-class this
Slide 11: Disciplined Acquisition Strategy
Disciplined Acquisition Provide Technology-oriented, customer Two-pronged XPO 11 Investor services service Selection prospects pipeline Presentation our thatcustomers mirrors with Process must of complementary aAugust meet willingness XPO’s from highly strategic 2015 M&A culture value toprospects Pi
Slide 12: Rock Solid Financial Position
Rockbillion $1.2 caliber September XPO 12 Investor Solid institutional 2014: Financial in Presentation cash, three investors inPosition addition leading August Raised global to an 2015 total undrawn investors of $2$415 endorsed billion million of XPO’s equity asset-backed growth in two private strat
Slide 13: XPO's Growth Strategy: Quarterly Revenue
FirstQ2 TTM $871 $1,315 $1,783 $831 $2,777 $3,412 Q1 2012 XPO 13 42 $554 2013 Investor Revenue Q3 Months Q4 $702 2014Presentation Q1 ($of $279 2015 millions) Q2 XPO’s Q3 $348 Q4 Growth August $431 Q1 Q2 $180 Strategy 2015 Q3$191 Q4 Q1 $214 Q2
Slide 14: CEO Bradley Jacobs Track Record
CEO to Prior United XPO 14 Bradley Investor Waste: Rentals: Rentals XPO, S.Presentation founded Created stock Built Jacobsoutperformed world’s 5th and largest August ledlargest foursolid 2015 S&P highly equipment waste 500 successful by business rental 2.2x from companies, company in North 1997Ameri
Slide 15: Highly Skilled Management Team
Highly Ashfaque CIO, Troy Louis CEO, Gordon General Bill COO, Luis Managing John Mario Angela Senior Julie Chief Partial XPO 15 Fraine Angel Luna Hardig Cooper Contract Investor Operating Financial Information Commercial Contract DeJoy Contract Harik Vice list Skilled Kirkby Devens Counsel Chowdhury
Slide 16: Highly Skilled Management Team (Cont'd)
Highly Scott Karl Hervé Dominick Michael Executive Will Chief Ludovic Greg Senior Paul President, Malcolm Managing Partial XPO 16 O’Shea Meyer Smith Ritter Investor Malat Strategy Executive Sales Montjotin Vice list Skilled O’Donnell Oster Wilson Global Intermodal VP, Muzi Director, and President, P
Slide 17: Second Quarter 2015 Financial Results
Second Quarter 2015 Financial Results
Slide 18: Second Quarter 2015 Revenue and Adjusted EBITDA
Second Revenue $1,216 +109% +465% Q2 $14.1 $581 (1) 18 XPO ‘14 $79.7 Q2 YOY Quarter For ($‘15 millions) a Presentation Investor reconciliation Q2 2015 ‘14Adjusted Results Q2 ‘15 of EBITDA adjusted August 2015 EBITDA ($ millions) to GAAP (1) net loss, see Appendix
Slide 19: Incentivized Management and Fully Diluted Shares
Incentivized Common Preferred Warrants Convertible Stock Fully (1) (2) senior XPO 19 Based Dilutive Investor diluted Options notes 10.5 Shares Stock oneffect Senior due XPO SEC shares Presentation million and Equivalent 2017 10.4 107.8 Management beneficial of RSUs Notes outstanding warrants million
Slide 20: Financial Targets 2015 and 2019
Financial 2015 An 2019 Approximately XPO 20 annual Year-End Full-Year Investor Targets revenue Presentation Targets $23run billion rate August of of revenue at least 2015$9.5 Approximately billion by December $1.5 billion 31,of2015 EBITDA An annual EBITDA run rate of at least $625 million by Decembe
Slide 21: XPO's Growth Plan Is Still in Early Innings
XPO’s Leading European logistics As XPO 21 large Investor Growth positions operations, asplatform wePresentation are, Plan inHigh-growth we P&L Is fastest-growing Still have performance August in captured Early positions 2015 Innings areas less andthan in of M&A contract transportation 1%integration
Slide 22: Acquired Norbert Dentressangle
Acquired June 8, 2015 Norbert Dentressangle(ND)
Slide 23: Expansive European Logistics Platform
Expansive June ($5.5 Contract 2014 27,800 Leading 13,900 approximately Over offices employees (1) (2) 23 XPO 8€1 Revenue billion) acquisition employees 2014 billion outsourced Logistics Platform of revenue 2014 90% of annual Management Investor freight of Balanced Transportation of European for Reve
Slide 24: Strategic Rationale for Acquisition
Strategic ND’s revenue future XPO 24 gained Investor capabilities acquisition Combined Rationale global Presentation closely opportunities blue for scale Acquisition chip in mirrored August three customer for ofXPO’s 2015 XPO its base core inNorth highly services: includes American fragmented many c
Slide 25: Significant Cross-Selling Opportunity
Significant Massive Complementary Opportunity Combined 3458Cross 1 Selling: cross global Synergy toselling XPO grow Customers Customers Service contract 2forwarding 5Service Potential European potential logistics 3Offerings Customers Services volume freight to serve services Services allows Used bro
Slide 26: Favorable Business Growth in European Logistics
Favorable 242 31% Business Strong Expected Serves Leading Source: XPO 26 million organic Gained Investor both growth Company capabilities focused tohistorical revenue B2B increase growth Leadership Presentation potential and in information the performance in compared at B2C e-commerce high-growth 9%
Slide 27: Preeminent European Transportation Network
Preeminent 36-year Rapid transportation Source: XPO 27 Investor growth history Company European in Presentation asfreight primary global information Transportation brokerage, partner markets Augusttoof2015 asset-light blue the Network UK, chip Spain customers palletized and France Combines serviceis
Slide 28: Combination Capabilities and Growth Accelerator
Combination Deploy Pricing Combined Top Leading Expand Sharing XPO 28 outsourced Investor and cutting-edge leadership best capabilities annual truck practices isPresentation ae-fulfillment Growth matching technology position in technology and reverse Accelerator capabilities August algorithms inprov
Slide 29: Loyal and Diversified Customer Base
LoyalInvestor Highlights Diversified commerce Source: XPO 29 European Company and Top portfolio Presentation high Customers Customer information tech of blueBase August chipincustomers Attractive 2015 Largest Verticals client under 4% of revenue 97% customer renewal rate in logistics Customer vertic
Slide 30: Purchase Price and Financing
Purchase Financing Consideration Enterprise Transaction On price The $1.26 senior Source: XPO 30 June remaining of Investor billion notes Consensus 217.50 8,Price Sources Value: 2015, Multiple: due equity Presentation ND euros inND’s Approximately 2022 stock per raise per Approximately Thompson foun
Slide 31: Acquired Bridge Terminal Transport (BTT)
Acquired June 1, 2015 Bridge Terminal Transport (BTT)
Slide 32: Acquired Bridge Terminal Transport
Acquired One Approximately was Represents XPO 32 $100 ofInvestor theBridge million, largest a consideration Presentation 1,800 Terminal asset-light excluding customers, Transport August ofany drayage 8.1working including times 2015 (BTT) providers EBITDA capital manyinof adjustments, longstanding, t
Slide 33: Strategic Rationale for BTT Acquisition
Strategic Increased Strengthened More XPO 33 gained can Investor costRationale take XPO’s effective 1,300 XPO’s Presentation on total more independent and and drayage capacity freight Synergies more August footprint reliable inunder owner tight 2015 contract to markets operators onuse thecontracted
Slide 34: Supplemental Materials
Supplemental Materials
Slide 35: Business Glossary
Integrated Contract component packaging, Expedite: chain transportation North Freight shipper brokerage XPO 35 Business Investor disruptions America. Brokerage: and Logistics: Arevenue services factory that the non-asset Presentation facilitated Glossary cost minimizes orannually, support, A An just
Slide 36: Business Glossary (Cont'd)
Integrated Global locations. as Intermodal: generated in is Last installation omni-channel XPO 36 booming intermodal to Mile: size, Business Investor Forwarding: Services by weight services, Aof due Annon-asset ain distribution heavy Presentation Glossary mix asset-light to North or aare of continue
Slide 37: Reconciliation of Adjusted EBITDA to Net Loss
Reconciliation Appendix Consolidated (In (Unaudited) Category 2015 Preferred Debt Loss Income Accelerated Other EBITDA Net Noncontrolling Transaction Gain Rebranding Adjusted Note: XPO 37 millions) loss on commitment 2014 Logistics, Investor Please interest depreciation tax conversion sale available