C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2021 Earnings Presentation
24 slides from C.h. Robinson Worldwide's earnings presentation, Feb 2, 2022
Slide 1: Q4 2021 Earnings Presentation
Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR Q4 2021 Earnings Presentation February 2, 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: Q4 Highlights: Balanced Growth Continues
Q4 Highlights: Balanced Growth Continues ▪ 6% year-over-year Truckload volume growth ▪ Year-over-year AGP increases were driven Q4 2021 by both higher AGP per shipment and higher volume in ocean, truckload and air ▪ Truckload AGP per mile continued to $6.5B $856.3M Total Revenues Adj. Gross Profit i
Slide 4: FY'21 Highlights: Record Year, Momentum Remains Strong
FY’21 Highlights: Record Year, Momentum Remains Strong ▪ Delivered record annual financial results ▪ Responsiveness of team and superior FY 2021 customer service enabled us to maintain customer loyalty ▪ Effectively helped our customers and carriers $23.1B $3.2B Total Revenues Adj. Gross Profit navi
Slide 5: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of 2021 total revenues and approximately half of 2021 transportation adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services. FY 2021 Adjusted Global Forwarding (GF) N
Slide 6: NAST Q4'21 Results by Service
NAST Q4’21 Results by Service Adjusted Gross Profit (1) Fourth Quarter Highlights ($ in millions) ▪ Truckload volume up 6.0% (2) 4Q21 4Q20 %▲ ▪ Truckload AGP per load increased 15.0% due to a Truckload (“TL”) $316.0 $258.6 22.2 % higher AGP per load on both contractual and transactional volume (2) L
Slide 7: Truckload Price and Cost Change
Truckload Price and Cost Change (1)(2)(3) 50% 40% YoY Price Change 30% YoY Cost Change 20% 10% 0% -10% -20% Truckload Q4 ▪ 55% / 45% truckload contractual to transactional volume mix, consistent Volume(2)(4) +6.0% with Q4 last year Pricing(1)(2)(3) +18.5% ▪ Average routing guide depth of 1.7 in Mana
Slide 8: Technology & Transformation Efforts Enhancing Efficiencies
Technology & Transformation Efforts Enhancing Efficiencies The decline over the past two quarters was driven by active hiring and expansion of our workforce to accommodate future demand and an extended cycle and in order to drive growth while new employees ramp up to expected productivity Beginning
Slide 9: Global Forwarding Q4'21 Results by Service
Global Forwarding Q4’21 Results by Service Adjusted Gross Profit (1) Fourth Quarter Fourth Quarter Highlights Highlights ($ in millions) ▪ Ocean AGP increased due to a 78.0% increase in 4Q21 4Q20 %▲ AGP per shipment and a 5.0% increase in shipments (2) Ocean $209.7 $112.4 86.5% ▪ Ocean market impact
Slide 10: All Other & Corporate Q4'21 Results
All Other & Corporate Q4’21 Results Adjusted Gross Profit (1) Fourth Quarter Highlights ($ in millions) Robinson Fresh 4Q21 4Q20 %▲ ▪ 11.5% increase in case volume (2) Robinson Fresh $26.0 $23.6 10.2 % Managed Services Managed Services $26.6 $24.7 7.3% ▪ 2.5% increase in transaction volume (2) Other
Slide 11: Tech-Plus Strategy: Unlocking Growth Across Suite of Services
Tech-Plus Strategy: Unlocking Growth Across Suite of Services Best-in-class solutions delivered through a global network of experts that you can rely on ▪ Diversified, global suite of services ▪ Technology built by and for supply chain experts ▪ Proven, tailored, market-leading solutions that drive
Slide 12: Tech-Plus Strategy: Delivering Comprehensive Solutions
Tech-Plus Strategy: Delivering Comprehensive Solutions ✓ 153% year-over-year increase in volume driven through our real-time, dynamic pricing tools in 2021; $875 million of revenue through this digital channel, up 193% over 2020 ✓ 15%+ year-over-year growth in daily average users of our customer and
Slide 13: Financial Performance: Record Q4 Revenue/AGP Results
Financial Performance: Record Q4 Revenue/AGP Results Total Revenues Adjusted Gross Cash Flow from ($B) Profit ($M) Operations ($M) $6.5 $856 $4.5 $641 $579 $3.8 Q4'19 Q4'20 Q4'21 Q4'19 Q4'20 Q4'21 Income from Decrease in cash flow driven primarily Earnings Per Share ▪ Operations ($M) by an increase
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Capital Distribution ($M) Sustain & Drive Growth Optimize Balance Sheet ▪ Prioritize high-return, close-in ▪ Minimize WACC by maintaining Cash Dividends investment grade credit ratings $277 investments to drive organic Share Repurchases growt
Slide 15: Sustainable Growth Strategy
Sustainable Growth Strategy Leverage position as world’s most powerful supply chain platform to sustainably outpace industry growth Take Share Digital Spend Commitment Strategically Grow Optimize Globally Processes • Leverage integrated service model to take • Expand Global Forwarding (“GF”) • Provi
Slide 16: 2022 Priorities
2022 Priorities ▪ Continue driving long-term diversified growth across an intentional combination of modes, services and geographic footprint ▪ Advance our tech-plus strategy to enhance, expand and leverage the most connected supply chain platform and deliver best-in-class, comprehensive solutions f
Slide 17: Appendix
Appendix 17
Slide 18: Q4 2021 Transportation Results
Q4 2021 Transportation Results(1) Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $6,245,998 $4,311,852 44.9% $22,046,574 $15,147,562 45.5% Total Adjusted Gross Profits(2) $832,404 $618,598 34.6% $3,052,000 $2,312,954
Slide 19: Q4 2021 NAST Results
Q4 2021 NAST Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $3,896,025 $3,089,674 26.1% $14,507,917 $11,312,553 28.2% Total Adjusted Gross Profits(1) $475,100 $396,814 19.7% $1,792,953 $1,517,091 18.2% Adjust
Slide 20: Q4 2021 Global Forwarding Results
Q4 2021 Global Forwarding Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $2,144,056 $1,030,364 108.1% $6,729,790 $3,100,525 117.1% Total Adjusted Gross Profits(1) $309,589 $180,057 71.9% $1,073,541 $628,988 7
Slide 21: Q4 2021 All Other and Corporate Results
Q4 2021 All Other and Corporate Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $461,767 $429,414 7.5% $1,864,431 $1,794,028 3.9% Total Adjusted Gross Profits(1) $71,652 $63,707 12.5% $285,595 $266,178 7.3% In
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
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