Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results August 2, 2022 ©2022 GXO Logistics, Inc. | Confidential and Proprietary
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 financial tab
Slide 3: Presenters
Presenters Malcolm Wilson Baris Oran Mark Manduca Bill Fraine Chief Executive Officer Chief Financial Officer Chief Investment Officer Chief Commercial Officer ©2022 GXO Logistics, Inc. 3
Slide 4: 2Q 2022: highlights
2Q 2022: highlights • 15% revenue growth, highest-ever organic Revenue growth of 20%, as GXO gains market share $2.2 billion • Highest-ever quarter of new contract wins in 2Q 2022. Over $1.1 billion of new FY 2022 revenue won through 2Q, equivalent to ~14% Organic revenue growth* 20% YoY revenue gro
Slide 5: 2Q 2022: revenue growth
2Q 2022: revenue growth (In millions USD) 2500 ~15% Revenue 2000 ~3% growth Net M&A (~9%) FX 1500 ~20% Organic* 1000 500 0 2Q 2021 Revenue Organic growth NetM&A M&A FX 2Q 2022 Revenue * Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information. ©2022 GXO Logi
Slide 6: 2Q 2022: Solid profit growth
2Q 2022: Solid profit growth (In millions USD) Net Income* Adjusted EBITDA** $60 $180 $50 $175 $40 $170 $30 $165 $20 $160 $10 $155 $0 $150 2Q 2021 2Q 2022 2Q 2021*** 2Q 2022 ©2022 GXO Logistics, Inc. *Net income attributable to GXO. **Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and
Slide 7: Recent wins and expansions
Recent wins and expansions GXO named a Supplier of the Year by Boeing GXO joined the Fortune 500 list ©2022 GXO Logistics, Inc. 7 7
Slide 8: New contract wins underpin 2022 and 2023 revenue growth
New contract wins underpin 2022 and 2023 revenue growth Expected 2022 revenue Expected incremental 2023 $1,083 $457 from contract wins revenues from contract wins million million $1,200 $500 $450 $1,000 $400 $350 $800 $300 $600 $250 $200 $400 $150 $100 $200 $50 $0 $0 Prior Q1 Q2 Q3 Q4 Q1 Q2 FY Prior
Slide 9: Record-breaking revenue YTD driven by contract wins
Record-breaking revenue YTD driven by contract wins 26% First time outsourcing 54% New activity 20% Won from competitors ©2022 GXO Logistics, Inc. Excludes any information related to the Clipper acquisition. 9
Slide 10: High earnings and cash flow visibility
High earnings and cash flow visibility High revenue visibility • $2.1 billion sales pipeline • $1 billion of revenues won to start in 2022 • ~5-year average contract duration • Mid-to-high 90s revenue retention rate 29% since spin Fixed Costs Stable earnings structure • High exposure to predictable
Slide 11: Accelerating automation and technology leadership
Accelerating automation and technology leadership >30% of 2Q22 revenue2is from automated sites Total technology and Goods-to-person Cobots Vision tech automated systems systems +256% +30% +43% +29% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 ©2022 GXO Logistics, Inc. Excludes any
Slide 12: Balance sheet and free cash flow
Balance sheet and free cash flow Balance sheet 2Q 2022 — Free cash flow Total debt* Cash flow from operations Interest: mostly fixed $1,885 million rate borrowing $154 million 2Q 2021: $99 million Net debt** Free cash flow** Commitment to $1,501 million maintaining investment $68 million grade ratin
Slide 13: FY 2022 guidance updated
FY 2022 guidance updated** PRIOR NEW Organic revenue growth* 11% – 15% 12% – 16% Adjusted EBITDA* $707 – $742 million $715 – $750 million Adjusted EBITDAR* $1.50 – $1.60 billion $1.60 – $1.65 billion Adjusted diluted EPS* $2.70 – $2.90 $2.70 – $2.90 Adjusted EBITDA to FCF conversion ~30% ~30% ©2022
Slide 14: FY 2022 adjusted EBITDA guidance bridge
FY 2022 adjusted EBITDA** guidance bridge ~$(10)m ~$18m $715 – $750m $707 – $742m FY 22 Guidance at 1Q Net M&A FX FY 22 Guidance at 2Q *Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information. ©2022 GXO Logistics, Inc. **Our guidance reflects the acquisitio
Slide 15: GXO on track to reach ESG targets
GXO on track to reach ESG targets GXO’s environmental targets LEDs 10 million+ square feet YTD compared to 44 million square feet at FY 2021 Solar Panel roll-out continued 2021: LED penetration at 47% through 2Q 2022 2021: GXO GHG intensity (gCO2e/$m) reduced 24% ~70% reduction in emissions and ener
Slide 16: Appendix
Appendix GXO
Slide 17: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin
GXO Logistics, Inc. Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 (Pro forma)(1) (Pro forma)(1) Net income attributable to GXO $ 51 $ 11 $ 16 $ 88 $ 25 $ 34 Net income att
Slide 18: Reconciliation of Net Income to Adjusted EBITA and Adjusted EBITA Margin
GXO Logistics, Inc. Reconciliation of Net Income to Adjusted EBITA and Adjusted EBITA Margin (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 (Pro forma)(1) (Pro forma)(1) Net income attributable to GXO $ 51 $ 11 $ 16 $ 88 $ 25 $ 34 Net income attri
Slide 19: Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share
GXO Logistics, Inc. Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, shares in thousands, except per share amounts) 2022 2021 2022 2021 Net income attributable to GXO $ 51 $ 1
Slide 20: Other Reconciliations
GXO Logistics, Inc. Other Reconciliations (Unaudited) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Net cash provided by operating activities $ 154 $ 99 $ 200 $ 146 Payment for purchas
Slide 21: Return on Invested Capital
GXO Logistics, Inc. Return on Invested Capital (Unaudited) Trailing Twelve Year Ended Months Ended Six months ended June 30, December 31, June 30, (In millions) 2022 2021 2021 2022 (Pro forma) (1) Adjusted EBITA(1)(2) $ 205 $ 171 $ 374 $ 408 Cash paid for income taxes (46) (22) (75) (99) Adjusted EB
Slide 22: Reconciliation of Net Income to Trailing Twelve Months Pro forma Adjusted EBITA
GXO Logistics, Inc. Reconciliation of Net Income to Trailing Twelve Months Pro forma Adjusted EBITA (Unaudited) Trailing Twelve Year Ended Months Ended Six months ended June 30, December 31, June 30, (In millions) 2022 2021 2021 2022 (Pro forma) (1) Net income attributable to GXO $ 88 $ 34 $ 162 $ 2
Slide 23: Reconciliation of Net Debt
GXO Logistics, Inc. Reconciliation of Net Debt (Unaudited) Reconciliation of Net Debt: (In millions) June 30, 2022 Shor-term debt $ 84 Long-term debt 1,801 Total Debt $ 1,885 Less: Cash and cash equivalents 384 Net debt (1) $ 1,501 (1) See the “Non-GAAP Financial Measures” section for additional inf
Slide 24: ©2022 GXO Logistics, Inc. | Confidential and Proprietary
©2022 GXO Logistics, Inc. | Confidential and Proprietary 24