Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — FY2022 Earnings Presentation
26 slides from Gxo Logistics's earnings presentation, Feb 14, 2023
Slide 1: Fourth Quarter and Full Year 2022 Results
Fourth Quarter and Full Year 2022 Results February 14, 2023 ©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 ©GXO Logistics, Inc. | Confidential and Proprietary 3
Slide 4: Highlights
Highlights • New business wins in 4Q expected to generate $182 million of annualized revenue(3). 4Q 2022 FY 2022 • $661 million of new FY 2023 revenue won through 4Q 2022, equivalent to 7% Revenue $2.5 billion $9.0 billion YoY revenue growth(3). • 4Q 2022 Adjusted EBITDA of $205 million compared to
Slide 5: 4Q 2022: Revenue growth
4Q 2022: Revenue growth (In millions USD) 4Q 2022 Revenue bridge $3,000 ~9% ~10% (~8%) Revenue ~7% Net M&A FX growth $2,500 Organic(1) $2,467 $2,262 $2,000 $1,500 $1,000 $500 $0 4Q 2021 Revenue Organic growth Net M&A FX 4Q 2022 Revenue (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide
Slide 6: FY 2022: Revenue growth
FY 2022: Revenue growth (In millions USD) FY 22 Revenue bridge ~13% ~6% (~8%) Revenue $10,000 ~15% Net M&A FX growth Organic(1) $8,993 $7,940 $8,000 $6,000 $4,000 $2,000 $0 FY 2021 Revenue Organic growth Net M&A FX FY 2022 Revenue (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and
Slide 7: 4Q 2022: Solid profitability
4Q 2022: Solid profitability (In millions USD) Net Income(1) Adjusted EBITDA(2) $250 250 $205 $200 200 $167 $150 150 $100 100 $56 $50 $46 50 $0 0 4Q 2021 4Q 2022 4Q 2021 4Q 2022 (1) Net Income attributable to GXO (2) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for rela
Slide 8: FY 2022: Solid profitability
FY 2022: Solid profitability (In millions USD) Adjusted EBITDA(3) Net Income(1) $800 $500 $728 $450 $700 $633(4) $400 $600 $350 $500 $300 $250 $400 $197 $200 $300 $153 $150 $42(2) $200 $100 $111 $100 $50 $0 $0 FY 2021 FY 2022 FY 2021 FY 2022 (1) Net Income attributable to GXO (2) FY 2021 net income
Slide 9: Recent wins and expansions
Recent wins and expansions ©GXO ©GXO Logistics, Logistics, Inc. Inc. || Confidential Confidential and and Proprietary Proprietary 99
Slide 10: New contract wins underpin 2022 and 2023 revenue growth
New contract wins underpin 2022 and 2023 revenue growth (In millions USD) 2022 revenue Expected 2023 revenue $661(2) from contract wins $1,054(1) from contract wins million $1,200 million $700 $1,000 $600 $500 $800 $400 $600 $300 $400 $200 $200 $100 $0 $0 Prior Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 11: 2022 contract wins by source
2022 contract wins by source 2022 new business wins(1) 31% 26% Won from New competitors outsourcing 43% New activity (1) Excludes the Clipper acquisition ©GXO Logistics, Inc. | Confidential and Proprietary 11 11
Slide 12: Diversified revenue in 4Q 2022
Diversified revenue in 4Q 2022 15% 13% Technology and consumer electronics Food and beverage 11% Industrial and manufacturing GXO revenue by vertical 4Q 2022 10% 42% Consumer packaged goods Omnichannel retail 9% Other ©GXO Logistics, Inc. | Confidential and Proprietary 12 12
Slide 13: Resilient business model with flexible cost structure
Resilient business model with flexible cost structure High revenue visibility Inflation pass-through Stable earnings structure Countercyclical FCF • ~$2.1 billion sales pipeline(1) • ~45% of revenue from ‘open • High exposure to predictable • Approximately two-thirds book’ (cost-plus) contracts(3) c
Slide 14: Accelerating automation and adaptive technology leadership
Accelerating automation and adaptive technology leadership ~30% of 4Q 2022 revenue 2 is from automated sites Total technology and Goods-to-person systems Cobots Vision tech automated systems +40% +14% +92% +76% 4Q 2021 4Q 2022 4Q 2021 4Q 2022 4Q 2021 4Q 2022 4Q 2021 4Q 2022 Accelerating technology d
Slide 15: FY Balance sheet and free cash flow
FY Balance sheet and free cash flow Balance sheet Cash flow Total debt(1) Paid down $50 million of debt Cash flow from operations ahead of schedule $542 million $1,806 million FY 2021: $455 million Net debt(2) Mostly fixed-rate borrowings Free cash flow(2) $1,311 million $240 million FY 2021: $216 m
Slide 16: FY 2023 guidance
FY 2023 guidance(1) Organic revenue growth(2) 6% – 8% Adjusted EBITDA(2) $700 – $730 million Adjusted EBITDA(2) ~30% to free cash flow conversion Adjusted diluted EPS(2) $2.30 – $2.50 Adjusted EBITDAR(3) $1.675 – $1.725 billion (1) Our guidance reflects current foreign currency exchange rates (2) Re
Slide 17: Environmental Social Governance
30% 80% 100% 80% 50% Environmental GHG emissions (Scopes 1&2) reduction Global landfill diversion rate by 2025 Carbon neutral (Scopes 1&2) by 2040 Global operations using LED lighting by 2025 Renewable energy globally by 2030 by 2030 vs. 2019 baseline 2021: 2021: 2021: 2021: 2021: GHG intensity 22%
Slide 18: Appendix
Appendix
Slide 19: 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 December 31, Year Ended December 31, (In millions) 2022 2021 2022 2021 (Pro forma)(1) Net income attributable to GXO $ 46 $ 56 $ 197 $ 153 $ 162 Net income attributable to no
Slide 20: 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 December 31, Year Ended December 31, (In millions) 2022 2021 2022 2021 (Pro forma)(1) Net income attributable to GXO $ 46 $ 56 $ 197 $ 153 $ 162 Net income attributable to nonc
Slide 21: Reconciliation of Net Income to Adjusted Net Income and Per Share
GXO Logistics, Inc. Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share (Unaudited) Three Months Ended December 31, Year Ended December 31, (Dollars in millions, shares in thousands, except per share amounts) 2022 2021 2022 2021 Net income attributable to GXO $ 46 $
Slide 22: Other Reconciliations
GXO Logistics, Inc. Other Reconciliations (Unaudited) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow: Three Months Ended December 31, Year Ended December 31, (In millions) 2022 2021 2022 2021 Net cash provided by operating activities $ 226 $ 204 $ 542 $ 455 Payment for purc
Slide 23: Liquidity Reconciliations
GXO Logistics, Inc. Liquidity Reconciliations (Unaudited) Reconciliation of Total Debt and Net Debt: (In millions) December 31, 2022 Short-term debt $ 67 Long-term debt 1,739 Total Debt $ 1,806 Less: Cash and cash equivalents (495) Net debt(1) $ 1,311 (1) See the “Non-GAAP Financial Measures” sectio
Slide 24: Operating Return on Invested Capital
GXO Logistics, Inc. Operating Return on Invested Capital (Unaudited) Year Ended December 31, (In millions) 2022 Adjusted EBITA(1) $ 467 Cash paid for income taxes (111) Adjusted EBITA(1), net of income taxes paid $ 356 (1) See the “Non-GAAP Financial Measures” section for additional information. Yea
Slide 25: Operating Return on Invested Capital
GXO Logistics, Inc. Operating Return on Invested Capital (Unaudited) Year Ended December 31, (In millions) 2021 Adjusted EBITA(1)(2) $ 374 Cash paid for income taxes (75) Adjusted EBITA(1)(2), net of income taxes paid $ 299 (1) Pro forma as prepared under combined financial statements for all period
Slide 26: ©GXO Logistics, Inc. | Confidential and Proprietary
©GXO Logistics, Inc. | Confidential and Proprietary 26