Schneider National, Inc. · NYSE:SNDR
Schneider National — Q2 2024 Earnings Presentation
29 slides from Schneider National's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Investor Presentation
SECOND QUARTER 2024 Investor Presentation INNOVATIVE – RESILIENT – DRIVEN
Slide 2: Presentation highlights
Presentation highlights • BUSINESS OVERVIEW • STRATEGY • CAPITAL ALLOCATION • TECHNOLOGY AND INNOVATION • PEOPLE AND VALUES • SECULAR TRENDS • INVEST WITH SNDR • CURRENT RESULTS AND OUTLOOK • APPENDIX 2
Slide 3: Business overview: by the numbers
by the numbers ALL THIS COULDN'T BE DONE WITHOUT: . THE PEOPEE number of times theft-free loads Schneider loads freight miles circle the globe zero emission miles* per day" per day* with about 345,000 miles added monthly $5.5 BILLION annual operating revenues* $2.4 BILLION ff ceperes third-party fre
Slide 4: Experienced leadership, focused on growth and delivering shareholder value
BUSINESS OVERVIEW Experienced leadership, focused on growth and delivering shareholder value Mark Rourke Darrell Campbell Jim Filter • Chief Executive Officer and President since • Executive Vice President, Chief Financial • Executive Vice President, Group 2019, previously serving as Executive Vice
Slide 5: Driven by our uncompromising values to deliver the goods
BUSINESS OVERVIEW Driven by our uncompromising values to deliver the goods that enhance the lives of people everywhere. Truckload Segment Over the road freight transportation via dry van, bulk, temperature-controlled and flat- bed trailers across either network (irregular route) or dedicated (struct
Slide 6: Truckload consists primarily of dedicated contract configurations
BUSINESS OVERVIEW Truckload consists primarily of dedicated contract configurations, complemented by a trailer-centric network operation. Dedicated • Contracted and consistent capacity through freight cycles • Multi-year contracts with 90%+ renewal rates • Driver-preferred alignment • Organic and ac
Slide 7: Intermodal's goal is to double in size by 2030
BUSINESS OVERVIEW Intermodal’s goal is to double in size by 2030, leveraging our differentiated company-owned container, chassis and dray model. • Nearly 27,000 company-owned containers and 23,000 company-owned chassis • Approximately 1,400 company dray tractors, executing the majority of dray movem
Slide 8: Logistics continues to grow share connecting shippers and carriers
BUSINESS OVERVIEW Logistics continues to grow share by connecting shippers and carriers of all sizes through our advanced brokerage solutions, including Power Only. • Approximately 22,000 qualified carriers in our network • Largest Power Only network in the industry • Enabled by proprietary Schneide
Slide 9: Strong financial position built on diligent capital allocation
BUSINESS OVERVIEW Our strong financial position is built on diligent capital allocation, the relentless pursuit of profitable growth and delivering shareholder value. Operating revenues Income from operations Adjusted diluted earnings per share $5,499 $296 $1.37 $4,384 $0.94 $280 2017 2023 2017 2023
Slide 10: Diversity of customers and end-markets served
BUSINESS OVERVIEW Diversity of customers and end-markets served Growing Customer Base: supports resiliency through business cycles. Change in Customer Concentration Diverse End-Market Footprint: 2023 Revenues (xFSC) All other 33% Retail 19% Food and Online-only beverage 14% retail 2% Consumer Transp
Slide 11: Comprehensive North American footprint with industry-leading safety
BUSINESS OVERVIEW Comprehensive North American footprint with industry-leading safety, culture and performance. 11
Slide 12: Our strategy is to deliver a superior portfolio of services
STRATEGY Our strategy is to deliver a superior portfolio of services that enables our business to prosper and achieve sustainable growth in revenue and earnings performance and shareholder value. Strategic approach ► Deploy capital to targeted service offerings in support of our goal Always to enhan
Slide 13: Strategic growth areas are Intermodal, Logistics and Dedicated
STRATEGY Schneider’s strategic growth areas are Intermodal, Logistics and Dedicated. We have purposefully reshaped the portfolio since our April 2017 IPO to enable resiliency through cycles. Increased earnings contribution Increased Dedicated mix within Truckload from Intermodal and Logistics fleet
Slide 14: Use-of-cash strategy balances growth, returns and resilience
CAPITAL ALLOCATION Schneider’s use-of-cash strategy creates a balance between growth, shareholder returns and resilient financial performance. Maintain strong balance sheet Free cash flow Net Capex Total leverage* 0.8x Fund operating and growth needs $109 $106 0.4x $574 Fund acquisitive $462 $352 $3
Slide 15: Disciplined capital deployment and long-term shareholder value
CAPITAL ALLOCATION Committed to disciplined capital deployment and delivering long-term shareholder value. Share repurchase program Quarterly dividends As of Jun 30, 2024* *Does not include the $2.00 special dividend paid in Nov 2020 • Announced our inaugural $150.0 million, three-year share • Commi
Slide 16: Enhancing technology platforms and digital solutions
TECHNOLOGY AND INNOVATION We are driven to continually enhance our technology platforms and digital solutions to stay ahead of the needs of our customers, shippers and associates. • Our proprietary Schneider FreightPower® platform and marketplace drive growth into the enterprise by advancing and sim
Slide 17: Living out our core values in support of our vision
PEOPLE AND VALUES How we do it is as important: Living out our core values in support of our vision. SAFETY FIRST RESPECT INTEGRITY IN EXCELLENCE AND ALWAYS FOR ALL EVERY ACTION IN W HAT W E DO Schneider trucks are spec’d Schneider has provided nearly $11 Schneider named one of TIME Schneider surpas
Slide 18: Living: 2023 Corporate Responsibility Report
LIVING 2023 Corporate Responsibility Report 9.7% 94 13% 13% 780 18 reduction of reduction in battery electric of our drivers are percentage of associates active company third party and emissions per emissions at vehicles (BEVs) women, ahead of associate have military drivers who have customer awards
Slide 19: Secular trends that drive our strategy and future growth
SECULAR TRENDS Secular trends that drive our strategy and our future growth. Truckload Intermodal Logistics Customers value committed contract Increased focus on sustainability goals for Operating conditions are expected to freight in order to build reliability and all stakeholders. remain pressured
Slide 20: Positioned for value creation and growth
INVEST W ITH SNDR Positioned for value creation and growth at the forefront of the Premier multimodal transportation industry. transportation platform • Most diverse logistics and Technology leader and innovator transportation platform in North America. • Portfolio of services enables growth Strong
Slide 21: Second quarter showed continued progress toward market equilibrium
CURRENT RESULTS AND OUTLOOK The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market. 2Q23 2Q24 Enterprise results benefited from our continued emphasis on cost Operating Revenues $1,347 $1,317 containment and asset effi
Slide 22: 2Q24 Enterprise Results
CURRENT RESULTS AND OUTLOOK 2Q24 Enterprise Results Operating revenues Revenues excluding fuel surcharge • We have maintained pricing discipline in a highly competitive bid season and achieved positive contract pricing across our Truckload Network renewals in the quarter. • Intermodal and Logistics
Slide 23: 2Q24 Truckload Results
CURRENT RESULTS AND OUTLOOK 2Q24 Truckload Results Revenues excluding Income from fuel surcharge operations • Revenues were higher YoY due to dedicated organic and acquisitive growth, partially offset by lower network pricing and volumes. • Earnings were lower YoY due to lower network pricing and vo
Slide 24: 2Q24 Intermodal Results
CURRENT RESULTS AND OUTLOOK 2Q24 Intermodal Results Revenues excluding fuel surcharge Income from operations • Revenues decreased YoY primarily due to decreased revenue per order, while volumes were up slightly compared to the prior year. • Earnings were lower YoY driven by lower revenue per order,
Slide 25: 2Q24 Logistics Results
CURRENT RESULTS AND OUTLOOK 2Q24 Logistics Results Revenues excluding Income from fuel surcharge operations • Revenues were lower primarily due to decreased revenue per order and 4% lower brokerage volume YoY. • Earnings were lower YoY driven by lower brokerage volumes and decreased net revenue per
Slide 26: Updated full year 2024 guidance
CURRENT RESULTS AND OUTLOOK The outcomes of the freight allocation season to date have shifted the timing of achieving the level of pricing improvement that we previously anticipated. As a result, we have updated our full year 2024 guidance. Our results for the second quarter reflected progress in b
Slide 27: Disclaimer and Forward-Looking Statements
Special Note Regarding Forward-Looking Statements This presentation contains and, any commentary or discussion by management of the content of this presentation may Disclaimer and Forward- include “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995 (the “
Slide 28: Appendix
Appendix
Slide 29: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliation—Revenues Excluding Fuel Surcharge1 Non-GAAP Reconciliation—Adjusted Income from Operations1 ($M) 2Q23 2Q24 ($M) 2Q23 2Q24 Operating revenues $1,347 $1,317 Income from operations $104 $51 Less: fuel surcharge revenues 156 149 Litigation and audit assessments3 3 - Reve