C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q2 2023 Earnings Presentation
25 slides from C.h. Robinson Worldwide's earnings presentation, Aug 2, 2023
Slide 1: Q2 2023 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q2 2023 Earnings Presentation August 2, 2023 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: Thoughts from new President & CEO, Dave Bozeman
Thoughts from new President & CEO, Dave Bozeman ■ Privilege to be leading C.H. Robinson, a market leader with enormous scale, a strong base of loyal customers, and a resilient business model that generates profits and free cash flow through the entirety of the freight cycle ■ Tremendous opportunity
Slide 4: Q2 Highlights
Q2 Highlights ■ Global freight markets continue to be impacted by weak demand, high inventories and excess capacity, resulting in a more competitive market Q2 2023 and suppressed transportation rates ■ Focused on providing superior service to our customers and carriers and continuing to $4.4B $665M
Slide 5: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1) Q2 2023 Adjusted Global Forwarding (GF) North American Surface Gross Profit(2) -44.8% Transportation (NA
Slide 6: NAST Q2'23 Results by Service
NAST Q2’23 Results by Service Adjusted Gross Profit(1) ($ in millions) 2Q23 2Q22 %▲ ■ Truckload volume down 6.5% year-over-year(2) ■ Truckload AGP per shipment decreased 41.5% due Truckload (“TL”) $236.1 $432.0 (45.4)% to declining profit per shipment on both contractual and transactional volume(2)
Slide 7: YoY % Change in Price and Cost per Mile
Truckload Price and Cost Change (1)(2)(3) 50% YoY % Change in Price and Cost per Mile 40% 30% 20% 10% 0% -10% -20% -30% 2016 2017 2018 2019 2020 2021 2022 2023 YoY Price Change YoY Cost Change Truckload Q2 ■ 70% / 30% truckload contractual / transactional volume mix in Q2 Volume(2)(4) -6.5% Price/Mi
Slide 8: NAST Adjusted Gross Profit $ per Truckload Shipment
Truckload AGP $ per Shipment Trend NAST Adjusted Gross Profit $ per Truckload Shipment (left axis) NAST Adjusted Gross Profit Margin % (right axis) Average NAST AGP $ per Truckload Shipment (left axis) 20% NAST Adjusted Gross Profit $ per Truckload 19% NAST Adjusted Gross Profit Margin % 18% 17% Shi
Slide 9: Global Forwarding Q2'23 Results by Service
Global Forwarding Q2’23 Results by Service Adjusted Gross Profit (1) ($ in millions) ■ Destocking of inventories and a slowdown in global 2Q23 2Q22 %▲ demand impacted ocean and air pricing and volumes on a year-over-year basis Ocean $107.4 $228.1 (52.9)% ■ Ocean AGP decreased due to a 49.5% decrease
Slide 10: All Other & Corporate Q2'23 Results
All Other & Corporate Q2’23 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 2Q23 2Q22 %▲ ■ Increased AGP driven by a 10.0%(2) increase in case Robinson Fresh $37.9 $35.0 8.3% volume and integrated supply chain solutions for foodservice and wholesale customers Managed Services $29.0
Slide 11: Sustainable Profitable Growth Strategy
Sustainable Profitable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage integrated ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic service model to Forwarding business and carriers the internal tools and growth by le
Slide 12: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 12
Slide 13: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Improving customer outcomes with technology that supports our people and processes ■ Shipments per person per day increased 12% YTD as of Q2, as we progress toward our goal of 15% year-over-year improvement by Q4 2023 – Accelerated the di
Slide 14: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 15: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ $106 million of cash returned to shareholders in Q2 2023 ■ As the cost and price of purchased transportation (inclusive of fuel surcharges) has come down over the last ■ Q2 2023 capital
Slide 16: Appendix
Appendix 16
Slide 17: Q2 2023 Transportation Results
(1) Q2 2023 Transportation Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $4,084,827 $6,465,642 (36.8)% $8,412,792 $12,993,993 (35.3)% Total Adjusted Gross Profits(2) $631,267 $998,768 (36.8)% $1,288,201 $1,876,895 (31.
Slide 18: Q2 2023 NAST Results
Q2 2023 NAST Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $3,079,268 $4,147,046 (25.7)% $6,383,455 $8,261,935 (22.7)% Total Adjusted Gross Profits(1) $400,532 $624,551 (35.9)% $827,187 $1,130,651 (26.8)% Adjusted Gro
Slide 19: Q2 2023 Global Forwarding Results
Q2 2023 Global Forwarding Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $779,867 $2,093,190 (62.7)% $1,569,845 $4,287,587 (63.4)% Total Adjusted Gross Profits(1) $179,231 $324,443 (44.8)% $357,150 $646,291 (44.7)% Adju
Slide 20: Q2 2023 All Other and Corporate Results
Q2 2023 All Other and Corporate Results Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $562,721 $558,239 0.8 % $1,080,226 $1,064,906 1.4 % Total Adjusted Gross Profits(1) $85,733 $82,619 3.8 % $166,799 $160,867 3.7 % Income (l
Slide 21: 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 22: 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 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations and net income per share
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income from operations and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income from operations and adjusted net income per share (diluted) is calculated as income from operations and net income per share (diluted) excluding t
Slide 25: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 25
C.H. Robinson Worldwide — Q2 2023 Earnings Presentation on 6ix