©2017 XPO Logistics, Inc. Investor Presentation...we’ve proven that rich data and industry...


O v e r v i e w

w h y x p oOur highly integrated network delivers customized supply chain solutions to the most successful companies in the world.

■ LESS-THAN-TRUCKLOAD

■ FULL TRUCKLOAD

■ INTERMODAL AND DRAYAGE

■ EXPEDITE

■ GLOBAL FORWARDING

■ LAST MILE

■ SUPPLY CHAIN LOGISTICS

■ MANAGED TRANSPORTATION


O v e r v i e w

w h y x p o

89,000employees

1,431locations

34countries

50,000customers

Companies choose XPO because we have the global scale to manage and transport their goods anywhere in the world.


W h y X P OO v e r v i e w

■ Largest last mile logistics provider for

heavy goods in North America

■ Largest manager of expedited shipments

in North America

■ Second largest contract logistics

provider worldwide based on facility

space, with the largest outsourced

e-fulfillment platform in Europe

■ Second largest provider of less-than-truckload transportation in North

America, and a leading LTL provider in

Western Europe

■ Second largest freight broker worldwide,

with a leading road fleet in Europe

■ Third largest provider of intermodal and drayage services in North America

Customers rely on XPO because of our experience. With

leadership positions

across the supply chain,

we’ve proven that rich data

and industry expertise give

our customers a

competitive advantage.


w h y x p oOur 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.

O v e r v i e w


w h y x p oUnified by a single, unwavering principle:

Accountability is in our DNA.

Passion drives our people

to deliver for our customers.

O v e r v i e w

TRANSPORTATION


LESS-THAN-TRUCKLOADThe leader in on-time pickup and delivery, damage-free

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L e s s - T h a n - T r u c k l o a d

Over 400 LTL locations in North America

■ Service to approximately 99% of U.S. zip codes


e x p e r i e n c eRanked #1 for on-time and damage-free performance.

■ Fastest transit times in

the industry

■ More next day and 2 day lanes than any other LTL carrier

in North America

■ Business intelligence reporting

and custom analytics drive

continuous improvement

■ A leader in Western Europe in

LTL (palletized) service

■ Over 30 years of experience

MAJOR CAPACITY Approximately 16,000 tractors and 39,000 trailers in North America

Safe, modern line-haul fleet

DAMAGE PREVENTION

Proprietary, heavy-duty decking system

Safety-alert technology installed in fleet

RELIABLE

13,000 uniformed, professional drivers

IT-enabled dock operations

Customer Care team dedicated to your business



t ec h n o lo gy

■ 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 pricing agreement

■ Tracks intuitively, with

predictive search capabilities

LTL.xpo.com is a personal suite of shipping management tools and resources.


for ease-of-use as ranked by LTL shippers in North America#

full truckloadMassive capacity managed with cutting-edge technology


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F u l l T r u c k l o a d

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, pricing, carrier ratings

and market conditions

■ Fierce commitment to execution

and follow-through

■ Single point of accountability


■ FINISHED GOODS OF ALL TYPES

■ RAW MATERIALS AND PARTS

■ TEMPERATURE-CONTROLLED

■ HIGH VALUE AND HIGH SECURITY

■ HEAVY HAUL AND OVERSIZED

■ SINGLE-SOURCE MULTINATIONAL

e x p e r i e n c eF u l l T r u c k l o a d


t ec h n o lo gyFreight 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.

F u l l T r u c k l o a d

INTERMODAL AND DRAYAGELarge, owned container capacity and national drayage network for seamless solutions


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I n t e r m o d a l a n d D r a y a g e

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 certifications

held by majority of contractors

■ Access to over 25,000 additional drayage trucks

■ Network of over 40 terminals serving every major U.S. rail ramp and port

■ Large Mexico-based chassis

fleet and ramp personnel

■ Cross-docking and transloading


E X P E R I E N C EWe analyze our customers’ shipping patterns and identify savings opportunities.

■ National rail ramp

drayage network

■ TWIC-compliant port drayage

■ Ocean drayage management

services

■ Certified HazMat handling

of freight

■ Safety-conscious contract carriers

■ A focus on visibility, follow-

through and communication

■ Over 30 years of experience

in Mexico

INTERMODAL SERVICE LOCATIONS

DRAYAGE U.S. SERVICE AREAS

Kansas City



t ec h n o lo gyProprietary 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 railroads to proactively

identify any delays

■ Fosters driver communication

during drayage legs

■ Keeps shippers informed through EDI integration and an online, self-service portal


expediteTime-critical deadlines met by ground, air and automated TMS


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E x p e d i t e

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 and pads, thermal

mapping, debris removal and more

AIR CHARTER ■ Proprietary online bid system

collects competitive bids in a

transparent manner

■ Immediate access to quick-

launch carriers, project cargo

carriers and AN-124 operators

■ Air and ground combinations

for door-to-door service

■ Air freight services availablemanager of expedited shipments in North America#


e x p e r i e n c eOVER 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 part of XPO’s integrated service range

CROSS-BORDER NETWORK ■ Expedited movements in and

out of Mexico and Canada

■ Urgent service to eight Mexican

airports and on to 18 cities

■ Intra-Mexico capabilities and

seasoned organization

■ Bilingual cross-border specialists

E x p e d i t e


T ec h n o lo gy

The entire expedite experience is rapid, disciplined and transparent.

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 order entry

■ Requirements are broadcast to carriers within minutes of receipt

■ Loads are assigned electronically

based on competitive carrier bids

■ Automated GPS and cellular track and trace, proof of delivery,

invoicing and reporting

E x p e d i t e

GLOBAL FORWARDINGShipments of any size, shape or weight, anywhere in the world

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G l o b a l F o r w a r d i n g

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.


e x p e r i e n c e

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.



t ec h n o lo gy

Our technology has eyes on the world, giving you shipper information, weight, tonnage, consignee, number of SKUs, transit time and real-time location status.


last mileIndustry-leading consumer satisfaction for superior brand protection

XPO.COM | 29©2017 XPO Logistics, Inc. CONFIDENTIAL AND PROPRIETARY MATERIAL ©2017 XPO Logistics, Inc. 29

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L a s t M i l e

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 construction sites

■ Pickup and delivery service in over 500 markets in

North America

■ Seven times larger than our

nearest competitor

■ European service available

in select countries

#last mile logistics provider for

heavy goods in North America


e x p e r i e n c eIndustry-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 creation

■ Pre-delivery inspection,

with expert touch-up and

repair as needed

■ Shipment optimization, route-

building and delivery scheduling

■ Installer network includes

licensed master plumbers

and electricians

L a s t M i l e


t ec h n o lo gyProprietary, 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 notifications of

appointments and deliveries

■ GPS tracking with live ETA updates and PODs

L a s t M i l e

S u p p ly C h a i n


contract logist icsCustomized solutions designed to give customers a competitive advantage



s c a l eC o n t r a c t L o g i s t i c s

■ $85 billion in goods distributed across a broad

range of industries

■ 160 million square feet of

logistics facility space globally;

86 million in North America

■ Skilled workforce of

approximately 50,000 globally;

25,000 in North America

■ Global footprint ensures

consistent service for our

multinational customers

■ Use of automation, robotics

and other technical advances

■ Flexible solutions for

seasonal volumes

■ Ability to add sites quickly

in any market

750+Global Supply

Chain Locations

Second largest contract logistics provider worldwide based on facility space, with

the largest outsourced e-fulfillment platform in Europe.


C o n t r a c t L o g i s t i c s

e x p e r i e n c eWe collaborate with industry-leading companies to create customized solutions that deliver results.

■ Industry vertical expertise

■ Operational excellence

■ Long-term relationships

■ TECHNOLOGY Precise fulfillment, easy returns and repairs

■ OMNI-CHANNEL RETAIL

Retail and e-commerce solutions, brand protection

■ FOOD AND BEVERAGE

High-value-add services, all temperature ranges

■ AEROSPACE AND GOVERNMENT Highly engineered, critical supply chain solutions

■ CONSUMER PACKAGED GOODS Turnkey solutions, integrated packaging

■ CHEMICAL Safe, secure processes, environmentally sound

■ OIL AND GAS Upstream, midstream and downstream

■ AUTOMOTIVE AND INDUSTRIAL Global best practices, cutting-edge technology

■ AGRIBUSINESS Innovative storage, handling and distribution

■ HEALTHCARE Time-critical agility, consistently responsive


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 management systems for warehousing, order

processing and transportation

■ Highly scalable solutions

■ Our technology tracks more than

five billion inventory units a day

■ ISO 20000 and ISO/IEC 27001

certified

t ec h n o lo gyC o n t r a c t L o g i s t i c s


■ 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

applications

■ Alerts focused on addressing

supply chain exceptions and

improving customer service

■ Quick, easy search capabilities

with data extraction and download

■ Role-based security

■ Validated by auditing authorities

to satisfy general computing

practices and SSAE-16

t ec h n o lo gyC o n t r a c t L o g i s t i c s

MANAGED TRANSPORTATIONCustomized transportation solutions that decrease costs and increase efficiencies



M a n a g e d T r a n s p o r t a t i o n

scale and experienceLeverage 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

Proprietary technology that integrates with thousands of carriers

RELIABILITY 24/7 mission-critical control tower and expertise


t ec h n o lo gyFully 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 spend analysis

■ Shipping pattern analysis

■ Robust reporting, scheduled

and on-demand

■ ISO9001, ISO14001 and

Lean certified

M a n a g e d T r a n s p o r t a t i o n

APPENDICES



B u s i n es s P r o f i l eXPO is a top ten global logistics company. 2016 Revenue of $14.6 billion

High-value-add services and engineered solutions

Freight moved using the most efficient and cost-effective mode

■ Omni-Channel and E-Commerce Fulfillment

■ Reverse Logistics

■ Technology-Enabled Managed Transportation

■ High-Value-Add Warehousing and Distribution

■ Supply Chain Optimization

■ Truckload Transport and

Brokerage, Expedite

■ Less-Than-Truckload

■ Intermodal and Drayage

■ Global Forwarding

■ Last Mile

37% of revenue 63% of revenue

Our highly integrated network of people, technology, assets and expertise helps our customers manage their goods more efficiently throughout their supply chains.

A p p e n d i x


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

B u s i n es s P r o f i l eA p p e n d i x


Our values drive our people. Our people drive our business.

As a global leader in

our industry, we have a

responsibility to set an

example that is beyond

reproach. Our XPO values are the heart of our culture.

They are the reasons

why our customers and

investors believe in us.

c u lt u r eA p p e n d i x

■ T r u s t w o r t h y

■ R e s p o n s i v e

■ U n i t e d

■ C o m m i t t e d

■ E n t r e p r e n e u r i a l

■ S a f e t y - F o c u s e d


XPO is committed to safe practices throughout our global operations.

The disciplines,

certifications and insurances we have in

place are the framework

of our comprehensive

safety infrastructure.

■ A culture that engages our employees

in proactive safety awareness as a way of

doing business

■ Proprietary management software

and rigorous disciplines for health and safety

functions and regulatory compliance

■ Automated monitoring of carrier safety

ratings, insurance qualifications and operating

authorities in real-time

■ Corporate and local safety professionals

stationed in all of our operating regions to

encourage a zero-incident mindset

■ Company programs that reduce cargo damage,

improve cargo security and enhance worker safety

■ Customizable theft mitigation programs

and root cause damage analyses

■ Professional training for customer dock workers,

drivers and our owner-operators

c u lt u r eA p p e n d i x


As a leader in sustainability, we use our initiative and innovation to reduce environmental impact.

The range of supply

chain solutions we offer

presents numerous

opportunities to help

our customers achieve

their green objectives.

■ XPO owns the largest natural gas truck fleet in Europe and will lower the carbon footprint

of trucking in Paris by using natural gas trucks

for the road transport portion of France’s first

intermodal urban rail shuttle (2017)

■ Launched government-approved mega-trucks

in Spain, expected to reduce CO2 emissions by

over 25% (2016)

■ Named a Top 75 Green Supply Chain Partner by Inbound Logistics (2016)

■ Committed to a 6% CO2 reduction in 2018 vs. 2016 via the COÇ charter; and awarded

the label “Objectif CO2” for outstanding

environmental performance of transport

operations in Europe by the French Ministry of the Environment and the French Environment and Energy Agency (2016)

■ Honored for excellence in environmental

improvement by SmartWay (2015)

■ ISO14001-certified logistics facilities ensure

environmental compliance

S u s ta i n a b i l i t yA p p e n d i x

©2017 XPO Logistics, Inc. Investor Presentation...we’ve proven that rich data and industry...

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