Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results November 7, 2023 ©GXO Logistics, Inc.
Slide 2: Disclaimer
Disclaimer Non-GAAP Financial Measures As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financ ial ta
Slide 3: Highlights
Highlights 3Q 2023 • New business wins in 3Q 2023 expected to generate $181 million of annualized revenue(3), compared to $158 million of annualized revenue from new business Revenue $2.5 billion wins in 3Q 2022(4) • $520 million of new FY 2024 revenue won through 3Q 2023,(3) compared to $497 millio
Slide 4: Presenters
Presenters Malcolm Wilson Baris Oran Adrian Stoch Chief Executive Officer Chief Financial Officer Chief Automation Officer ©GXO Logistics, Inc. 4
Slide 5: 3Q 2023: Solid revenue growth
3Q 2023: Solid revenue growth (In millions USD) $3,000 8% Revenue ~5% growth ~3% FX $2,471 $2,500 Organic(1) $2,287 $2,000 $1,500 $1,000 $500 $0 3Q 2022 Revenue Organic growth FX 3Q 2023 Revenue (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information. ©
Slide 6: 3Q 2023: Growing and predictable profit profile
3Q 2023: Growing and predictable profit profile (In millions USD) Net income(1) Adjusted EBITDA(2) $80 $200 $200 $192 $70 $66 $63 $60 $150 $50 $40 $100 $30 $20 $50 $10 $0 $0 3Q 2022 3Q 2023 3Q 2022 3Q 2023 Contractual business model provides resilient profit performance throughout the cycle (1) Net
Slide 7: Recent wins and extensions
Recent wins and extensions * ©GXO Logistics, Inc. * US Mint and Glossier are contracts related to the PFSweb acquisition 7
Slide 8: Strong new contract wins underpin 2024 and 2025 revenue growth
Strong new contract wins underpin 2024 and 2025 revenue growth (In millions USD) Expected 2024 gross revenue from contract wins Expected 2025 gross revenue from contract wins $700 $250 $520(1) $187(1) $600 million million $200 $500 $150 $400 $300 $100 $200 $50 $100 $0 $0 Prior 1Q 2023 2Q 2023 3Q 202
Slide 9: 3Q 2023 contract wins by source
3Q 2023 contract wins by source 15% 43% Outsourcing Won from competitors 42% New activity ©GXO Logistics, Inc. 9
Slide 10: Accelerating automation and adaptive technology leadership
Accelerating automation and adaptive technology leadership Total technology and Goods-to-person units Cobots Vision tech automated units +67% +52% +55% +98% 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 ~4,000 more adaptive technology units deployed year over year ©GXO Logistics, I
Slide 11: High-quality growth: Diversified, contracted, blue-chip
High-quality growth: Diversified, contracted, blue-chip Resilient, Pricing driven Diversified Blue-chip, duration-matched by contractual verticals, customers investment-grade contractual relationships, not and geographies customer base relationships supply/demand $520 million ~5-year No customer ~45
Slide 12: Strong balance sheet and free cash flow
Strong balance sheet and free cash flow Balance sheet Cash flow Total debt(1) Reduced debt by $159 million Cash flow from operations year to date through 3Q 2023 $243 million $1,647 million 3Q 2022: $116 million Net debt(2) Mostly fixed-rate borrowings Free cash flow(2) $1,174 million $191 million 3
Slide 13: PFSweb acquisition
PFSweb acquisition Select brand partners Capabilities The acquisition of PFSweb expands GXO’s presence in the North American market and increases its share of the health and Value added services beauty and luxury goods verticals. • Gift wrap & branded packaging • Assembly, kitting, & bundling 2022 s
Slide 14: Q3 Highlights: Environmental and social goals
Environmental goals • Reduce our environmental impact Q3 Highlights: − 80% global operations using LED lighting by 2025 − 80% global landfill diversion rate by 2025 Enhancing environmental − 50% renewably sourced energy by 2030 efficiency for customers − 30% GHG emissions (scopes 1 & 2) reduction by
Slide 15: Key investment highlights
Key investment highlights 1 Massive secular tailwinds: 2 Long-term contractual e-commerce, automation, relationships with outsourcing blue-chip customers 3 4 Leadership in revenue- Critical scale in a and margin–enhancing fast-growing market technology 5 6 Resilient financial profile World-class tea
Slide 16: Updated FY 2023 guidance
Updated FY 2023 guidance(1) Current Prior Organic revenue 2% - 4% 6% – 8% growth(2) Adjusted EBITDA(2) $730 – $755 $725 – $755 million million Adjusted EBITDA(2) ~30% ~30% to free cash flow conversion Adjusted diluted EPS(2) $2.55 – $2.65 $2.45 – $2.65 Adjusted EBITDAR (3) $1.75 – $1.80 $1.75 – $1.8
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of net income to adjusted EBITDA and adjusted EBITA
GXO Logistics, Inc. Reconciliation of net income to adjusted EBITDA and adjusted EBITA and adjusted EBITDA and adjusted EBITA margins (unaudited) Trailing twelve Three months ended Nine months ended months September 30 September 30 Year ended ended December September (In millions USD) 2023 2022 2023
Slide 19: Reconciliation of net income to adjusted net income and adjusted EPS
GXO Logistics, Inc. Reconciliation of net income to adjusted net income and adjusted earnings per share (unaudited) Three months ended Nine months ended September 30 September 30 (Dollars in millions, shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income attributable to GXO $
Slide 20: Other reconciliations: free cash flow
GXO Logistics, Inc. Other reconciliations (Unaudited) Reconciliation of cash flows from operating activities to free cash flow: Three months ended Nine months ended September 30, September 30, (In millions USD) 2023 2022 2023 2022 Net cash provided by operating activities $ 243 $ 116 $ 343 $ 316 Cap
Slide 21: Other reconciliations: organic revenue
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of revenue to organic revenue: Three months ended Nine months ended September 30 September 30 (In millions USD) 2023 2022 2023 2022 Revenue $ 2,471 $ 2,287 $ 7,188 $ 6,526 Revenue from acquired business(1) — — (378) — Revenue from
Slide 22: Liquidity reconciliations
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) September 30, 2023 Current debt $ 26 Long-term debt 1,621 Total debt $ 1,647 Less: Cash and cash equivalents (473) Net debt(1) $ 1,174 Reconciliation of total debt to net income att
Slide 23: Return on invested capital
GXO Logistics, Inc. Return on invested capital (unaudited) Adjusted EBITA, net of income taxes paid Trailing twelve Nine months ended September 30 Year ended months ended December 31, September 30, (In millions USD) 2023 2022 2022 2023 Adjusted EBITA (1) $ 334 $ 329 $ 467 $ 472 Less: Cash paid for i
Slide 24: Revenue disaggregated by industry
GXO Logistics, Inc. Revenue disaggregated by industry (unaudited) Three months ended Nine months ended September 30, September 30, (In millions USD) 2023 2022 2023 2022 Omnichannel retail $ 1,051 $ 919 $ 3,041 $ 2,618 Technology and consumer electronics 360 338 1,081 963 Food and beverage 362 335 1,
Slide 25: PFSweb service fee equivalent revenue
GXO Logistics, Inc. PFSweb service fee equivalent revenue (Unaudited) Reconciliation of PFSweb 2022 service fee equivalent revenue Year ended (In thousands USD) December 31, 2022 Revenues: Service fee revenue $ 200,034 Product revenue, net 3,333 Pass-through revenue 91,755 Total revenues (1) $ 295,1