C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q2 2022 Earnings Presentation
24 slides from C.h. Robinson Worldwide's earnings presentation, Jul 27, 2022
Slide 1: Q2 2022 Earnings Presentation
Bob Biesterfeld, CEO Arun Rajan, CPO Mike Zechmeister, CFO Chuck Ives, Director of IR Q2 2022 Earnings Presentation July 27, 2022 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-loo
Slide 3: Q2 Highlights: Record Quarterly Financial Results
Q2 Highlights: Record Quarterly Financial Results ■ Adjusted operating margin expanded to 44.3% in NAST and 51.6% in Global Forwarding Q2 2022 ■ Grew Truckload volume in a declining market $6.8B $1.0B ■ Truckload AGP per shipment improved Total Revenues Adj. Gross Profit 48% as the cost of purchased
Slide 4: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1) Q2 2022 Adjusted North American Surface Global Forwarding (GF) Gross Profit(2) Transp
Slide 5: NAST Q2'22 Results by Service
NAST Q2’22 Results by Service Adjusted Gross Profit (1) ($ in millions) ▪ Truckload volume up 2.0%, compared to the Cass Freight Index that reflected a 2% decline in 2Q22 2Q21 %▲ shipments (2) Truckload (“TL”) $432.0 $286.6 50.8% ▪ Truckload AGP per shipment increased 48% due to a higher AGP per shi
Slide 6: Truckload Price and Cost Change
Truckload Price and Cost Change (1)(2)(3) Truckload Q2 ■ 60% / 40% truckload contractual to transactional volume mix, up from Volume(2)(4) +2.0% 55% / 45% in Q2 last year Pricing(1)(2)(3) +1.5% ■ Average routing guide depth of 1.4 in Managed Services business vs. Cost(1)(2)(3) -5.0% 1.7 in Q2 last y
Slide 7: Truckload AGP $ per Shipment Significantly Improved
Truckload AGP $ per Shipment Significantly Improved ■ AGP $ per Truckload Shipment reflects business performance better than AGP Margin % (1) ■ While NAST AGP Margin % has declined 20 bps compared to Q2 2020, AGP $ per Truckload Shipment has grown 59% over the same timeframe 1. Adjusted gross profit
Slide 8: Global Forwarding Q2'22 Results by Service
Global Forwarding Q2’22 Results by Service Adjusted Gross Profit (1) ($ in millions) ▪ Ocean AGP increased due to a 47.5% increase in 2Q22 2Q21 %▲ AGP per shipment and a 2.5% increase in shipments (2) Ocean $228.1 $150.9 51.1% ▪ Ocean market becoming more balanced, but rates Air $56.1 $52.2 7.5% rem
Slide 9: All Other & Corporate Q2'22 Results
All Other & Corporate Q2’22 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 2Q22 2Q21 %▲ ▪ 8.5% increase in case volume, across all verticals (2) Robinson Fresh $35.0 $29.9 16.8% ▪ Increased revenue tied to integrated supply chain and technology services Managed Services $27.6 $26.2
Slide 10: Sustainable Growth Strategy
Sustainable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic integrated service Forwarding (“GF”) and carriers the internal tools and growth by model to grow business a
Slide 11: Delivering Scalable Digital Solutions to Fuel Growth
Delivering Scalable Digital Solutions to Fuel Growth ■ Scale capacity/procurement Build a digital carrier network that gives customers access to additional capacity ■ Scale demand generation Attract, retain and grow demand via digitally connected channels by delivering technology features that shipp
Slide 12: New Carrier Experiences Driving Digital Adoption
New Carrier Experiences Driving Digital Adoption +66% +96% Y/Y +234% Y/Y Visits per Carriers Loads Booked ■ Following Navisphere® Carrier Day Booking Loads Digitally enhancements in early February: • Visits per day to Navisphere Carrier ® 107% Y/Y 71% grew 66% from January to June Increase in of Spo
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts that you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and
Slide 14: Financial Performance: Record Quarterly Results
Financial Performance: Record Quarterly Results ■ Changes in cash flow have been driven primarily by increases in operating working capital and improvement in net income. ■ As the cost and price of purchased transportation (inclusive of fuel surcharges) come down, we expect a commensurate benefit to
Slide 15: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Capital Distribution ($M) Sustain & Drive Growth Optimize Balance Sheet Cash Dividends ■ Prioritize high-return, close-in ■ Optimize Weighted Average investments to drive organic Cost of Capital (WACC) by Share Repurchases growth maintaining
Slide 16: 2022 Strategic Priorities
2022 Strategic Priorities ■ Continue driving long-term diversified growth across an intentional combination of modes, services and geographic footprint ■ Design scalable solutions by transforming our processes, accelerating the pace of development and prioritizing data integrity, in order to improve
Slide 17: Appendix
Appendix 17
Slide 18: Q2 2022 Transportation Results
Q2 2022 Transportation Results(1) Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $6,465,642 $5,240,448 23.4 % $12,993,993 $9,800,675 32.6 % Total Adjusted Gross Profits(2) $998,768 $721,143 38.5 % $1,876,895 $1,400,085 34.1 % A
Slide 19: Q2 2022 NAST Results
Q2 2022 NAST Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $4,147,046 $3,585,481 15.7 % $8,261,935 $6,796,904 21.6 % Total Adjusted Gross Profits(1) $624,551 $436,596 43.1 % $1,130,651 $857,704 31.8 % Adjusted Gross P
Slide 20: Q2 2022 Global Forwarding Results
Q2 2022 Global Forwarding Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $2,093,190 $1,450,794 44.3 % $4,287,587 $2,606,833 64.5 % Total Adjusted Gross Profits(1) $324,443 $238,754 35.9 % $646,291 $453,054 42.7 % Adjust
Slide 21: Q2 2022 All Other and Corporate Results
Q2 2022 All Other and Corporate Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2022 2021 % Change 2022 2021 % Change Total Revenues $558,239 $496,451 12.4 % $1,064,906 $932,858 14.2 % Total Adjusted Gross Profits(1) $82,619 $73,826 11.9 % $160,867 $140,798 14.3 % Income
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary
Slide 24: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 24
C.H. Robinson Worldwide — Q2 2022 Earnings Presentation on 6ix