XPO, Inc. · NYSE:XPO
XPO — XPO Logistics — Investor Presentation (May 2017)
47 slides from XPO's investor presentation, May 3, 2017
Slide 1: XPO Logistics Investor Presentation
©2017 XPO Logistics, Inc.
Slide 2: Agenda
agenda 03 | Why XPO TRANSPORTATION 09 | Less-Than-Truckload 13 | Full Truckload 17 | Intermodal and Drayage 21 | Expedite 25 | Global Forwarding 29 | Last Mile SUPPLY CHAIN 34 | Contract Logistics 39 | Managed Transportation APPENDICES 43 | Customers 46 | Business Profile 48 | Culture 50 | Sustainab
Slide 3: Why XPO
Overview why xpo Our highly integrated network delivers customized supply chain LESS-THAN-TRUCKLOAD solutions to the most ■ successful companies ■ FULL TRUCKLOAD in the world. ■ INTERMODAL AND DRAYAGE ■ EXPEDITE ■ GLOBAL FORWARDING ■ LAST MILE ■ SUPPLY CHAIN LOGISTICS ■ MANAGED TRANSPORTATION ©2017
Slide 4: Why XPO: global scale
Overview why xpo Companies choose XPO 89,000 1,431 34 50,000 because we have the global scale to manage and transport their goods employees locations countries customers anywhere in the world. ©2017 XPO Logistics, Inc. 4
Slide 5: Why XPO: experience and leadership positions
Overview Why XPO Customers rely on XPO because of our experience. With ■ Largest last mile logistics provider for heavy goods in North America leadership positions across the supply chain, ■ Largest manager of expedited shipments in North America we’ve proven that rich data and industry expertise gi
Slide 6: Why XPO: technology
Overview why xpo Our customers continue to grow with us because of our technology. It’s what fuels our global network— creating efficiency and visibility, and powering innovation in automation and customization. We invest approximately $425 million a year in technology. ©2017 XPO Logistics, Inc. 6
Slide 7: Why XPO: accountability
Overview why xpo Unified by a single, unwavering principle: Accountability is in our DNA. Passion drives our people to deliver for our customers. ©2017 XPO Logistics, Inc. 7
Slide 8: Transportation
TRANSPORTATION ©2017 XPO Logistics, Inc.
Slide 9: Less-Than-Truckload
LESS-THAN- TRUCKLOAD The leader in on-time pickup and delivery, damage-free ©2017 XPO Logistics, Inc. 9
Slide 10: LTL scale
L e s s -T h a n -Tr u c k l o a d scale Over 400 LTL locations in North America ■ Service to approximately 99% of U.S. zip codes ©2017 XPO Logistics, Inc. 10
Slide 11: LTL experience
L e s s -T h a n -Tr u c k l o a d experience Ranked #1 for on-time and MAJOR CAPACIT Y damage-free performance. Approximately 16,000 tractors and 39,000 trailers in North America ■ Fastest transit times in the industry Safe, modern line-haul fleet ■ More next day and 2 day lanes than any other LTL
Slide 12: LTL technology
L e s s -T h a n -Tr u c k l o a d t echnology LTL.xpo.com is a personal suite of shipping management tools and resources. ■ Pre-populates information and templates for frequently used items ■ Reports on the up-to-the- minute status of shipments and manifests ■ Quotes rates on demand based on your p
Slide 13: Full Truckload
full truckload Massive capacity managed with cutting- edge technology ©2017 XPO Logistics, Inc. 13
Slide 14: Full Truckload scale
Fu l l Tr u c k l o a d scale Our robust capacity mix ensures optimal equipment and price. ■ Brokerage network of over 38,000 carriers with more than a million trucks in North America ■ Dry vans, refrigerated, specialized and permitted flatbeds, and dropdecks ■ Constant influx of big data on lanes,
Slide 15: Full Truckload experience
Fu l l Tr u c k l o a d experience ■ FINISHED GOODS OF ALL T YPES ■ HIGH VALUE AND HIGH SECURIT Y ■ R AW MATERIALS AND PARTS ■ HEAV Y HAUL AND OVERSIZED ■ TEMPER ATURE-CONTROLLED ■ SINGLE-SOURCE MULTINATIONAL ©2017 XPO Logistics, Inc. 15
Slide 16: Full Truckload technology
Fu l l Tr u c k l o a d technology Freight Optimizer combines the best in technology with the best in customer service. Powerful tools source the optimal capacity for each load by analyzing data from multiple sources, weighted by cost and performance. ©2017 XPO Logistics, Inc. 16
Slide 17: Intermodal and Drayage
INTERMODAL AND DRAYAGE Large, owned container capacity and national drayage network for seamless solutions ©2017 XPO Logistics, Inc. 17
Slide 18: Intermodal and Drayage scale
Intermodal and Drayage scale A top three intermodal provider in North America. ■ Approximately 9,500 53-ft. boxes and 8,000 chassis exclusively controlled by XPO, and access to small box capacity ■ Leading U.S. drayage capacity of 2,200 contracted independent owner-operators ■ HazMat or tank certifi
Slide 19: Intermodal and Drayage experience
Intermodal and Drayage EXPERIENCE We analyze our customers’ shipping patterns and identify savings opportunities. ■ National rail ramp drayage network ■ TWIC-compliant port drayage INTERMODAL SERVICE ■ Ocean drayage management LOCATIONS services ■ Certified HazMat handling of freight ■ Safety-consci
Slide 20: Intermodal and Drayage technology
Intermodal and Drayage t echnology Proprietary Rail Optimizer intermodal management system is driving best-ever on-time performance. ■ Tracks door-to-door movements of long haul freight with GPS on containers ■ Secures 53-ft. container, small box and drayage capacities ■ Communicates constantly with
Slide 21: Expedite
expedite Time-critical deadlines met by ground, air and automated TMS ©2017 XPO Logistics, Inc. 21
Slide 22: Expedite scale
Expedite scale GROUND TRANSPORTATION ■ Extensive North American network of independent owner- operators with capacities from 1 to 44,000 lbs. ■ Optimal equipment: cargo vans, sprinters, straight trucks, tractor-trailers, lift gate, temperature-controlled ■ Special handling includes blankets, straps
Slide 23: Expedite experience
Expedite experience OVER 30 YEARS OF EXPERIENCE ■ Rapid, reliable response minimizes supply chain and production disruptions ■ Experienced owner-operators understand the urgent nature of expedite ■ Disciplined processes for high- value, high-security goods ■ Ability to pivot quickly between modes as
Slide 24: Expedite technology
Expedite T echnology XPO’s expedite capabilities include the largest web- based TMS for urgent load tendering in North America. ■ Over 700 qualified carriers can potentially bid on your load ■ Over 95% of shipments are sourced in 24 minutes or less ■ Loads are self-posted via automated or manual ord
Slide 25: Global Forwarding
GLOBAL FORWARDING Shipments of any size, shape or weight, anywhere in the world ©2017 XPO Logistics, ©2017 Inc. XPO Logistics, Inc. CONFIDENTIAL AND PROPRIETARY MATERIAL 25
Slide 26: Global Forwarding scale
Global Forwarding scale Our global footprint comes with local expertise in more than 15 countries. Annually, we facilitate: ■ Over 86,000 customs entries ■ Over 157,000 TEUs of ocean freight ■ Over 220,000 shipments worldwide including 44,000 in the U.S. ©2017 XPO Logistics, Inc. 26
Slide 27: Global Forwarding experience
Global Forwarding experience We have the expertise to guide your freight through the regulatory processes and custom points at thousands of destinations in Asia, Europe and the United Kingdom. ©2017 XPO Logistics, Inc. 27
Slide 28: Global Forwarding technology
Global Forwarding t echnology Our technology has eyes on the world, giving you shipper information, weight, tonnage, consignee, number of SKUs, transit time and real-time location status. ©2017 XPO Logistics, Inc. 28
Slide 29: Last Mile
last mile Industry-leading consumer satisfaction for superior brand protection ©2017 XPO Logistics, ©2017 Inc. XPO Logistics, Inc. CONFIDENTIAL AND PROPRIETARY MATERIAL XPO.COM | 29
Slide 30: Last Mile scale
Last Mile scale We facilitate more than 12 million home deliveries and installations annually. ■ 45 market delivery centers with service across the U.S. ■ Over 500,000 installations and assemblies a year ■ 35,000 thresholds crossed every day ■ Professional deliveries to homes, businesses and new con
Slide 31: Last Mile experience
Last Mile experience Industry-leading track record for consumer satisfaction with retail and e-commerce deliveries. ■ Cutting-edge mobile technology ensures process consistency ■ Code compliances rigorously maintained and documented ■ Online order entries, street- level geocoding and UPC label creat
Slide 32: Last Mile technology
Last Mile t echnology Proprietary, customer- centric technology is developed exclusively for the last mile logistics of heavy goods. ■ Highly flexible and customizable ■ Powerful feedback loop identifies issues for quick resolution ■ Proactive exception reporting within one hour or less ■ Automated
Slide 33: Supply Chain
Supply Chain ©2017 XPO Logistics, Inc.
Slide 34: Contract Logistics
contract logistics Customized solutions designed to give customers a competitive advantage ©2017 XPO Logistics, Inc. 34
Slide 35: Contract Logistics scale
Contract Logistics scale Second largest contract logistics provider worldwide based on facility space, with the largest outsourced e-fulfillment platform in Europe. 750+ Global Supply Chain Locations ■ $85 billion in goods ■ Skilled workforce of ■ Use of automation, robotics distributed across a bro
Slide 36: Contract Logistics experience
Contract Logistics experience We collaborate with ■ TECHNOLOGY industry-leading Precise fulfillment, easy returns and repairs companies to create ■ OMNI-CHANNEL RETAIL Retail and e-commerce solutions, brand protection customized solutions that deliver results. ■ FOOD AND BEVER AGE High-value-add ser
Slide 37: Contract Logistics technology
Contract Logistics t echnology Our industry-leading technology solutions are designed and implemented to optimize your specific supply chain. ■ Secure, private cloud hosting ■ Real-time visibility of transactions, order status, and inventory ■ Rapid integration to leading ERP Systems ■ Proprietary m
Slide 38: Contract Logistics technology (continued)
Contract Logistics t echnology ■ Real-time inventory and transaction visibility ■ Singular integration for all supply chain solutions, including warehousing and transportation ■ Highly configurable, rules-based engine enables customer- specific business decisions ■ Integrated to all supply chain app
Slide 39: Managed Transportation
MANAGED TRANSPORTATION Customized transportation solutions that decrease costs and increase efficiencies ©2017 XPO Logistics, Inc. 39
Slide 40: Managed Transportation scale and experience
M a n a g e d Tr a n s p o r t a t i o n scale and experience Leverage our technology, expertise and buying power to manage your freight expense. Customers trust us with approximately $2.7 billion of freight under management. SCALE Access to market intelligence and buying power OPTIMIZATION Propriet
Slide 41: Managed Transportation technology
M a n a g e d Tr a n s p o r t a t i o n t echnology Fully customizable services that enhance flexibility and provide you with constant visibility and control. ■ TMS data sharing ■ Customized dashboards ■ Secure online portals ■ KPI performance scorecards ■ Door-to-door online visibility ■ Freight s
Slide 42: Appendices
APPENDICES ©2017 XPO Logistics, Inc.
Slide 43: Business Profile
Appendix Business Profile XPO is a top ten global logistics company. 2016 Revenue of $14.6 billion High-value-add services and Freight moved using the most engineered solutions efficient and cost-effective mode 37% of revenue 63% of revenue ■ Omni-Channel and ■ Truckload Transport and E-Commerce Ful
Slide 44: Business Profile: full-year 2016 highlights
Appendix Business Profile Full-year 2016 highlights ■ $14.6 billion of gross revenue ■ $84.5 million of net income ■ $625.4 million of cash flow from operations Named Fortune 500’s fastest- growing company Ranked by Forbes as #17 among innovative growth companies and #263 among best employers ©2017
Slide 45: Culture
Appendix cult ure Our values drive our people. Our people drive our business. ■ Trustworthy As a global leader in our industry, we have a responsibility to set an ■ Responsive example that is beyond reproach. Our XPO values ■ United are the heart of our culture. They are the reasons ■ Committed why
Slide 46: Culture: safety
Appendix cult ure XPO is committed to safe practices throughout our ■ A culture that engages our employees global operations. in proactive safety awareness as a way of doing business The disciplines, certifications and ■ Proprietary management software and rigorous disciplines for health and safety
Slide 47: Sustainability
Appendix Sustainabili t y As a leader in XPO owns the largest natural gas truck fleet sustainability, we ■ in Europe and will lower the carbon footprint use our initiative and of trucking in Paris by using natural gas trucks innovation to reduce for the road transport portion of France’s first inter