Slide 1: Continuing on the Path of Evolution - Growth - Stability
‘CONTINUING ON THE PATH OF EVOLUTION - GROWTH - STABILITY Se
Slide 2: Disclosure
Disclosure i This presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words suchas “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking state
Slide 3: Marten's Culture
Marten’s Culture abo | People Focused on Today’s Accelerated Business Environment “Managers may believe that industry structures are ordained by the Good Lord, but they can - and often do- change overnight.” “The Discipline of Innovation” Harvard Business Review May-June 1985 By Peter F. Drucker “Pe
Slide 4: Marten's Strategic Vision
| Marten’s Strategic Vision ar sbat Transportation Service Solutions for Today and into the Future * Truckload Business Platform - regional and OTR operating from 15 regional service centers — including a new dry van operation in 2016 out of our Kansas City facility- $375.9 million 2016 revenue + De
Slide 5: Business Platform Network Growth
Marten’s unique operation stands out in these excess capacity truckload times Marten’s Business Platform Network Growth “#7 Operating Revenue Growth (excluding fuel surcharge) LE! tm. Diluted EPS Growth In millions rm $1.05 Be 12% 12%* $1.00 $0.95 $0.90 $0.80 2014 2015 2016 2014 2015 2016 *Excluding
Slide 6: Regional Operating Centers Network
Marten’s Vision and Plan - Regional Operating Centers Network THE FOUNDATION of Marten’s service and growth An $89 million expansion since ’09 paid for in challenging times ~ All locations acquired, replaced or updated since 09 ~ Carlisle, Otay Mesa and McAllen only leased facilities ~ Only $7.9 mil
Slide 7: Truckload and Dedicated Tractor Growth
Marten’s Vision and Plan - Truckload and Dedicated Tractor Growth Continued Organic Tractor Growth 2,800 a | 2,600 | 2,400 7 | 2,200 | 2,000 | 1,800 | 1,600 Dec. 31, 13 Dec. 31,14 Dec. 31,15 Dec. 31, 16 The organic growth of 546 tractors, or 25%, since December 31,’13 is a direct result of our conti
Slide 8: 2016 Growth
Marten’s Vision and Plan - 2016 Growth All Segments Load Growth Truckload and Dedicated Loads/Tractor/Week Growth 700,000 40 19% 12% 600,000 © 17% 36 500,000 3% 34 400,000 : a 300,000 30 2014 2015 2016 2014 2015 2016
Slide 9: Dedicated Growth
Marten’s Vision and Plan - Dedicated Growth Currently the 16" largest dedicated carrier - Transport TopicsApr. 2016 Revenue Growth Load Growth (excluding fuel surcharge) In millions 300,000 $175 37% sang 51% on % 200000 = oo 89% = $100 160,000 $75 100,000 $50 0,000 925 0 $0 2014 2015 2016 2014 2015
Slide 10: TOFC Intermodal Growth
37,000 35,000 33,000 31,000 29,000 27,000 25,000 TOFC Intermodal Growth I ted temperature—controlled TOFC in ’05 Marten is the largest truckload intermodal temperature-controlled carrier with BNSF Expanded intermodal growth with longer drayage supported by Marten’s regional business platform Today c
Slide 11: Brokerage Growth
Marten’s Vision and Plan - Brokerage Growth Provides capacity to surge and cover all of Marten’s customers’ freight needs Tempered ’16 growth in present unsustainable rate environment Revenue Growth Load Growth (including fuel surcharge) In millions 000 $0 mn 31% oh 25% = won sm $0 40,000 $a 000 ES
Slide 12: Mexico Growth
32,500 30,000 27,500 25,000 2,500 20,000 17,500 46,000 Marten’s Vision and Plan - Mexico Growth Door-to-door cost saving solutions + Expanded into Western Mexico with Otay Mesa facility in ‘13 + Moved into new, larger company-owned Laredo facility in 713 + Opened additional entry faci! + EI Paso, TX
Slide 13: Increasing Revenue Equipment Costs
Increasing Revenue Equipment Costs Average Monthly Depreciation Tractors Trailers $1,600 $450 $1,570 $424 = $1,528 Sn0 $1,500 ‘$40 | $1,462 $1,450 $390 $387 $1,400 $370 $1,350 $250 $1,300 $330 Dec. 14 Dec. 15 Dec. 16 Dec. "14 Dec. 15 Dec. 16 The monthly depreciation of tractors and trailers added in
Slide 14: Net Capital Expenditures
Net Capital Expenditures In millions $140 $125.0 118.6 $120 s $100 $97.2 $88.0 $80 $60 $40 $20 $0 2014 2015 2016 2017 Estimate
Slide 15: Marten's Vision and Plan Initiatives
= Marten’s Vision and Plan Initiatives TRANSPORT al ia Marten People Drive Our Freight and Cost Efficiencies and Profitable Growth People initiate and implement our strategic vision and key strategic initiatives “The more they know, the more they'll understand. The more they understand, the more the
Slide 16: Financial Results
Marten’s Financial Results ar sbat 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 (Operating revenue | $671.1] $665.0] $672.9] $659.2| $638.5| $603.7| $516.9| $505.9 Net income $33.5 | $33.3*| $29.8 | $30.1 | $27.3 | $24.3 | $19.7 | $16.3 Diluted EPS $1.02 | $0.99*| $0.89 | $0.90 | $0.82 | $0
Slide 17: Dedicated, Intermodal and Brokerage Operating Income
Dedicated Operating Income Eighth Consecutive Year-Over-Year Increase in Quarterly Operating Income within each of our Dedicated, Intermodal and Brokerage Segments Intermodal Operating Income In thousands In thousands $5.00 Tor $2300 258% 299% $5.00 ce ar >100% " 20% cael ‘4,000 $4200 9,000 200 ‘2,0
Slide 18: Improvement in Marten's Operating Ratio
94% 93% 92% 91% 90% 89% 88% 87% Improvement in Marten’s Operating Ratio, Net of Fuel Surcharge 93.5% 91.2% 2%, 90.6% 90.2% 90.4%* 2009 2010 2011 (2012 2013 (2014 (2015 2016 Stable margins with rate and cost pressures *Excluding a gain on disposition of two facilities in 2015
Slide 19: Improvement in Marten's Earnings
$1.20 $1.00 $0.80 $0.60 $0.40 $0.20 Improvement in Marten’s Earnings - Cents Per Diluted Share 10% (1)% 12% 22% 22% 2009 2010 2011 2012 2014 2013 *Excluding a gain on disposition of two facilities in 2015 108% increase from 2009 to 2016
Slide 20: Culture | Marten's Vision and Plan | People
Marten’s Culture | Marten’s Vision aura + Marten’s Plan | Marten’s People “Sufficient urgency around a strategically rational and emotionally exciting opportunity is the bedrock upon which allelseis built.” “Accelerate!” Harvard Business Review November 2012 By John P. Kotter Konosuke Matsushita Pro
Slide 21: Truckload Carrier CY'17 EV/EBITDA
Truckload Carrier CY'17EV/EBITDA query, TRANSPORT (Consensus) er ta ee Source: Company Filings and Factset
Slide 22: Q2 & Q3 Earnings Comparison
Q2 &Q3 Earnings Comparison 7H ai Compare these earnings results with the previous slide “The times they are a changin’ ... you better start swimmin’ or you'll sink like a stone” Dylan, Bob. Like a Rolling Stone, Gates of Eden. Columbia, 1965 Figure 1. Only Two Truckload Companies Managed Earnings Gr