Xpo, Inc. · NYSE:XPO
Xpo — XPO Logistics — Shareholder Meeting (May 2021)
16 slides from Xpo's shareholder meeting presentation, May 4, 2021
Slide 1: May 2021 Annual Meeting Stockholder Update
MAY 2021 Annual Meeting Stockholder Update
Slide 2: Executive Summary
STOCKHOLDER UPDATE | MAY 2021 EXECUTIVE SUMMARY 2 Company Performance ▪ We recorded record fourth quarter results in several key metrics and our total shareholder return continued its long history of significant outperformance ▪ We announced the planned spin - off of our logistics segment into GXO S
Slide 3: XPO's Global Operations: Moving the World Forward
STOCKHOLDER UPDATE | MAY 2021 3 XPO’s Global Operations: Moving the World Forward Logistics 38% Transportation 62% 2020 REVENUE BY SEGMENT (1) XPO Logistics provides pivotal supply chain solutions to the most successful companies in the world by providing customers with a global network of transport
Slide 4: Qualified Team in Place to Lead GXO Post-Spin
STOCKHOLDER UPDATE | MAY 2021 QUALIFIED TEAM IN PLACE TO LEAD GXO POST - SPIN ► Malcolm Wilson (current CEO of XPO Logistics Europe) will become CEO of GXO ► Baris Oran (CFO of the Logistics Segment effective May 2021) will become Chief Financial Officer of GXO ► Maryclaire Hammond (current SVP of H
Slide 5: Strong Focus on Stability and Liquidity Through Challenging Operating Conditions
STOCKHOLDER UPDATE | MAY 2021 Strong Focus on Stability and Liquidity Through Challenging Operating Conditions 5 ADJUSTED EBITDA* $ in millions Despite volatility in 2020, the skilled leadership of our NEOs led to a financial rebound for the company in the second half of the year, creating momentum
Slide 6: XPO Continues to Deliver Long-Term Sustainable Value to its Stockholders
STOCKHOLDER UPDATE | MAY 2021 17% 23% 80% 14% 28% 79% 50% 30% 337% One-year TSR Three-year TSR Five-year TSR Dow Jones Transportation Average S&P 400 MidCap XPO Logistics XPO Continues to Deliver Long - Term Sustainable Value to its Stockholders 6 TOTAL SHAREHOLDER RETURN (1) (1) TSR calculations re
Slide 7: Extensive Stockholder Engagement Throughout 2020
STOCKHOLDER UPDATE | MAY 2021 Extensive Stockholder Engagement Throughout 2020 7 STOCKHOLDER OUTREACH AND ENGAGEMENT ► Regular engagement with stockholders to discuss our business strategy, governance, executive compensation, corporate sustainability reporting and other important matters ► In 2020,
Slide 8: Compensation Program Designed to Support Stockholder Value Creation
STOCKHOLDER UPDATE | MAY 2021 Compensation Program Designed to Support Stockholder Value Creation 8 ▪ To attract and retain high - performing executives BASE SALARY SHORT - TERM INCENTIVE LONG - TERM INCENTIVES ▪ To reward annual performance and individual contributions that support strategy and res
Slide 9: 2020 Long-Term Incentive Award Structured to Reward Sustainable Value Creation
STOCKHOLDER UPDATE | MAY 2021 2020 Long - Term Incentive Award Structured to Reward Sustainable Value Creation Over Time 9 METRIC HIGHLIGHTS RATIONALE ABSOLUTE ADJUSTED CASH FLOW PER SHARE (50%) ▪ Consistent with market practice of incorporating operational goal ▪ Target payout requires progressivel
Slide 10: Compensation Committee Incorporated Stockholder Feedback to Enhance Executive Compensation Program
STOCKHOLDER UPDATE | MAY 2021 Compensation Committee Incorporated Stockholder Feedback to Enhance Executive Compensation Program Design and Disclosure 10 Goal Achievement and Metrics ▪ Preference for s liding scales as a retentive and risk - reducing measure and a relative metric to peers in the lon
Slide 11: Thoughtful Board Composition and Highly Qualified Directors Ensure Strong Oversight
STOCKHOLDER UPDATE | MAY 2021 ▪ Former Vice Chairman and CFO at Qwest Communications ▪ Former President and COO at Sorrento Networks ▪ Committees : AC* OREN SHAFFER ▪ Founder and CIO of ARIS Capital Mgmt. ▪ Former Founder and Managing Director, Fund of Hedge Funds Strategies Group of Banc of America
Slide 12: Comprehensive Corporate Sustainability
STOCKHOLDER UPDATE | MAY 2021 Comprehensive Corporate Sustainability 12 ▪ Appointed first Chief Diversity Officer in August 2020 ▪ Partnered with diverse suppliers, including 44% that are women - owned and 37% that are minority owned ▪ Launched eight Employee Resource Groups to establish a culture o
Slide 13: We Request Your Support at Our 2021 Annual Meeting
STOCKHOLDER UPDATE | MAY 2021 We Request Your Support at Our 2021 Annual Meeting 13 4. AGAINST STOCKHOLDER PROPOSAL REGARDING ADDITIONAL DISCLOSURE OF THE COMPANY’S POLITICAL ACTIVITIES 5. AGAINST STOCKHOLDER PROPOSAL REGARDING REQUIREMENT THAT THE CHAIRMAN OF THE BOARD BE AN INDEPENDENT DIRECTOR 6.
Slide 14: Disclaimers
STOCKHOLDER UPDATE | MAY 2021 Disclaimers 14 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, wh
Slide 15: Financial reconciliations
STOCKHOLDER UPDATE | MAY 2021 Financial reconciliations 15 The following table reconciles XPO’s net income (loss) for the six months ended June 30, 2020 and 2019 and December 31, 2020 and 2019 to adjusted EBITDA for the same periods. Refer to the “Non - GAAP Financial Measures” section on page 14 of
Slide 16: Financial reconciliations (cont.)
STOCKHOLDER UPDATE | MAY 2021 Financial reconciliations (cont.) 16 Refer to the “Non - GAAP Financial Measures” section on page 14 of this document The following table reconciles XPO’s net cash provided by operating activities for the six months ended June 30, 2020 and 2019 and December 31, 2020 and