0

www.harriswilliams.de

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorisedand regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

TRANSPORTATION & LOGISTICS

0

INDUSTRY UPDATE │ NOVEMBER 2016

PAGE |

www.harriswilliams.de

1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging Directorfmountcastle@harriswilliams.com+1 (804) 915-0124

Jason BassManaging Directorjbass@harriswilliams.com+1 (804) 915-0132

Joe ConnerManaging Director jconner@harriswilliams.com+1 (804) 915-0151

Jeff BurkettDirector jburkett@harriswilliams.com +1 (804) 932-1334

Jershon JonesDirector jjones@harriswilliams.com+1 (804) 932-1356

Jeff KiddVice President jkidd@harriswilliams.com +1 (804) 915-0178

James O’MalleyVice President jomalley@harriswilliams.com+1 (804) 915-0165

EUROPE

Jeffery PerkinsManaging Director jperkins@harriswilliams.com+49 (0) 69 3650638 00

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ NOVEMBER 2016

WHAT WE’RE READING

TRUCKING | SELF-DRIVING TRUCK DELIVERS

In what it called the world’s first shipment by a self-driving truck, technology firmOtto announced Oct. 25 that one of its heavy-duty, semi-autonomous trucksassisted in a 133-mile delivery for Anheuser- Busch InBev. Otto was founded inJanuary by former Google engineers and acquired in August by UberTechnologies Inc. With a professional driver on board Oct. 20, the Class 8 tractorand its trailer loaded with 51,744 cans of beer traveled south in Colorado from FortCollins to Colorado Springs — with 120 miles of the historic journey occurring withthe truck in full autonomous mode on Interstate 25.

Transport Topics

MARINE | SHIPPING INDUSTRY FEELS SHOCK WAVES FROM ELECTION

The election of Donald Trump is sending shock waves across the shipping industry,which fears the antitrade rhetoric that took center stage during the campaign willfurther hurt ship operators as they try to deal with the worst down-cycle in 30 years.“There is little detail about Trump’s trade policy, but his overall protectionist, anti-globalization stance will likely hurt shipping—an industry that thrives on low tradingbarriers for goods,” said Basil Karatzas, a New York-based maritime ad adviser whoworks with the industry’s biggest names. “In the short term, the shock effect to themarkets will likely lead to lower trading volumes at a time when shippingcompanies report earnings in bright red numbers.”

Wall Street Journal

AIR | GLOBAL AIR CARGO STRONGEST SINCE US WEST COAST PORT CRISIS

Global air cargo traffic rose 6.6 percent year-over-year in September, the fastestgrowth rate since the industry benefited from the disruption caused by the US WestCoast ports strike in February 2015, the International Air Transportation Associationsaid. The rebound, which coincided with an apparent upturn in new export ordersin recent months, may also have been driven by some “unique” factors, includingthe rush replacement of Samsung Galaxy Note 7 devices and the early impactfrom the collapse of Hanjin Shipping at the end of August, according to theindustry body.

Journal of Commerce

RAIL | U.S. WEEKLY RAIL TRAFFIC INCREASES FOR FIRST TIME IN MONTHS

The Association of American Railroads (AAR) reported on November 9 that U.S. railtraffic for the week ending November 5, 2016 was 543,377 carloads andintermodal units, up 0.7% compared with the same week last year. Total carloadsfor the week ending November 5 were 271,262 carloads, down 0.4% comparedwith the same week in 2015, while U.S. weekly intermodal volume was 272,115containers and trailers, up 1.7% compared to 2015. Four of the 10 carloadcommodity groups posted an increase compared with the same week in 2015.

RailwayAge

LOGISTICS | MAJOR CARRIERS FORECAST GROWTH IN HOLIDAY VOLUMES

UPS, FedEx and the U.S. Postal Service are all projecting major growth in holidayshipping volume during the peak season, driven by the continued boom inecommerce activity. UPS, for example, is projecting 700 million deliveries betweenThanksgiving and the end of the year, a 14% increase over 2015. This year has twoextra shipping days, which contributes a few percentage points to the increase.UPS includes the last week of the year in its holiday forecasts because of thegrowth of returns, gift card activation and inventory replenishment during thisperiod.

Multi Channel Merchant

PAGE |

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2

TRANSPORTATION & LOGISTICS

*Denotes minority investment

INDUSTRY UPDATE │ NOVEMBER 2016

Date Sector Target Business Description Acquirer

11/7/2016 Logistics Marken Ltd. Prov ides transportation serv ices for clinical trial materials and

medicine.

United Parcel Serv ice,

Inc.

11/2/2016 Logistics Trademark Global LLC Provides shipping and warehousing serv ices. Bertram Capital

11/1/2016 Marine McKeil Marine Provides marine transportation and project serv ices in Canada. TorQuest Partners

10/31/2016 Rail American Track Serv ices Prov ides rail inspection, maintenance, repair, and design and

construction serv ices.

Hilltop Private Capital

10/28/2016 Trucking XPO Truckload Div ision Provides truckload logistics serv ices. TransForce Inc.

10/27/2016 Logistics Diamond Transportation

Serv ices

Prov ides paratransit and shuttle serv ices to the Greater Washington,

D.C. area.

National Express Group

10/26/2016 Logistics TTS, LLC Provides multimodal, agent-based freight management serv ices. Sunteck Transport Group

10/26/2016 Logistics MetroGistics, LLC Provides non-asset based automotive logistics serv ices. Tailwind Capital

10/26/2016 Logistics Pilot Freight Serv ices Prov ides transportation and logistics serv ices worldwide. ATL Partners and bcIMC

10/24/2016 Rail Frauscher Sensor

Technology

Provides train tracking solutions for the railway signaling industry. Greenbriar Equity Group

10/20/2016 Rail Glencore Rail Prov ides rail based transportation serv ices in the Hunter Valley of

Australia.

Genesee & Wyoming Inc.

10/19/2016 Logistics IDS Transportation

Serv ices, Inc.

Prov ides a comprehensive mix of supply chain logistics serv ices,

including warehousing, distribution, and order fulfillment.

R2 Freight and Logistics,

Inc.

10/19/2016* Logistics TVS Logistics Serv ices

Ltd.

Prov ides third party logistics serv ices in India. Caisse de depot et

placement du Quebec

10/18/2016 Air Aurora Jet Center Prov ides airport FBO serv ices in Aurora, OR. Lynx FBO Network

10/18/2016 Marine Kamil Ship Supply Prov ides last-mile port logistics serv ices. Ship Supply International

10/4/2016 Logistics Golden State Overnight

Delivery Serv ice, Inc.

Prov ides ground and priority overnight delivery serv ices. General Logistics Systems

BV

10/4/2016 Marine Pan-United Shipping Pte

Ltd.

Specializes in the transportation of bulk cargoes through coastal

shipping, affreightment, ship management, agency and trading

serv ices.

Sedgefield Corp. Pte Ltd.

10/3/2016 Logistics MITSafetrans SRL Prov ides transportation and logistics serv ices. DHL Supply Chain

9/30/2016 Logistics Albini & Pitigliani Sverige

AB

Provides transportation, freight, and warehousing serv ices. Kerry Logistics Network

Ltd.

PAGE |

PUBLIC MARKETS OVERVIEW

3

TRANSPORTATION & LOGISTICS

TEV / LTM EBITDA TEV / 2016E EBITDA

AVERAGE REVENUE GROWTH (2012 – 2015) AVERAGE REVENUE GROWTH (2015 – 2017P)

AVERAGE EBITDA GROWTH (2012 – 2015) AVERAGE EBITDA GROWTH (2015 – 2017P)

INDUSTRY UPDATE │ NOVEMBER 2016

(8.2%)

(5.4%)

(3.3%)

(0.9%)

9.7%

Rail & Rail Services

Marine

Transportation

Equipment

Trucking

Logistics Providers

1.9%

3.4%

4.7%

5.3%

7.2%

Marine

Transportation

Equipment

Logistics Providers

Trucking

Rail & Rail Services

5.7x

6.5x

8.8x

10.1x

10.5x

Transportation

Equipment

Trucking

Marine

Rail & Rail Services

Logistics Providers

5.9x

6.5x

8.0x

8.8x

10.0x

Transportation

Equipment

Trucking

Marine

Logistics Providers

Rail & Rail Services

(8.4%)

(7.3%)

(1.7%)

0.5%

4.5%

Rail & Rail Services

Marine

Transportation

Equipment

Trucking

Logistics Providers

(3.5%)

8.4%

14.5%

15.8%

17.0%

Marine

Logistics Providers

Rail & Rail Services

Trucking

Transportation

Equipment

PAGE |

STOCK PRICE PERFORMANCE

4

TRANSPORTATION & LOGISTICS

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)

INDUSTRY UPDATE │ NOVEMBER 2016

(30%)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

Nov-15 Feb-16 May-16 Aug-16 Nov-16

Logistics Providers Trucking Rail and Rail Services

Marine Transportation Equipment S&P 500 Index

(27.5%)

4.8%

5.0%

5.7%

10.3%

10.5%

Marine

S&P 500

Rail & Rail Services

Trucking

Logistics Providers

Transportation Equipment

2.0%

4.9%

6.5%

9.2%

15.4%

19.8%

S&P 500

Transportation Equipment

Rail & Rail Services

Marine

Logistics Providers

Trucking

(Indexed to November 18th, 2015)

PAGE |

OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.

TRANSPORTATION & LOGISTICS

RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

5

INDUSTRY UPDATE │ NOVEMBER 2016

has been acquired by

a portfolio company of

and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

a portfolio company of

has been acquired by

a portfolio company of

has acquired

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

has merged with

an operating company of

in a recapitalization by

and

a portfolio company of

has been acquired by

has been acquired by

a portfolio company of

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

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FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

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NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Transportation & Logistics

6

OUR FIRM

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ NOVEMBER 2016

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website.

PAGE |

Logistics Providers

Agility Public Warehousing Co. K.S.C. $2,299 $1.77 15.4% 5.6% $1.81 97.8% 7.1x 6.4x 7.4x 7.1x 7.0x

Air Transport Services Group, Inc. 1,394 16.45 13.0% 88.0% 16.56 99.3% 4.5x 5.7x 6.9x 6.5x 5.1x

Atlas Air Worldwide Holdings, Inc. 3,018 50.85 21.1% 24.4% 57.77 88.0% 6.3x 10.7x 16.0x 7.4x 6.6x

C.H. Robinson Worldwide, Inc. 11,631 74.40 8.1% 8.9% 76.10 97.8% 12.0x 12.0x 12.5x 12.7x 12.5x

Deutsche Post AG 44,050 30.79 1.2% 6.9% 32.70 94.2% 12.1x 12.7x 10.5x 8.5x 8.0x

DSV A/S 9,552 43.99 (8.2%) 10.3% 51.16 86.0% 14.1x 18.1x 16.1x 15.9x 13.3x

Echo Global Logistics, Inc 915 25.70 15.8% 9.7% 28.49 90.2% 16.7x 14.0x 16.2x 13.0x 10.8x

Expeditors International of Washington, Inc. 8,370 51.50 4.2% 4.6% 52.58 97.9% 11.2x 10.3x 11.6x 11.7x 11.2x

FedEx Corporation 61,174 187.29 9.7% 14.7% 187.33 100.0% 9.9x 9.1x 9.5x 7.1x 6.7x

Forward Air Corporation 1,504 48.55 15.8% 1.6% 49.71 97.7% 12.4x 9.8x 10.6x 10.7x 9.7x

Hub Group, Inc. Class A 1,456 42.95 11.0% 10.7% 43.51 98.7% 9.4x 7.6x 8.5x 8.8x 8.7x

J.B. Hunt Transport Services, Inc. 11,308 91.47 15.8% 17.9% 92.17 99.2% 9.7x 9.4x 10.5x 10.5x 9.7x

Kuhne & Nagel International AG 14,604 127.72 (5.2%) (4.7%) 147.27 86.7% 14.8x 14.5x 13.5x 13.5x 12.7x

Landstar System, Inc. 3,364 81.30 23.7% 30.0% 83.00 98.0% 10.1x 10.1x 13.2x 13.3x 12.4x

Panalpina Welttransport (Holding) AG 2,563 124.17 (8.6%) 13.6% 146.33 84.9% 12.1x 13.4x 14.4x 16.1x 11.9x

Roadrunner Transportation Systems, Inc. 786 10.09 33.1% (5.5%) 13.67 73.8% 5.9x 6.0x 8.3x 7.8x 6.9x

Ryder System, Inc. 9,642 78.76 25.1% 16.5% 80.15 98.3% 5.5x 5.3x 5.6x 5.4x 5.2x

TransForce Inc. 2,947 24.37 16.7% 28.2% 24.64 98.9% 10.5x 7.8x 9.6x 8.8x 6.5x

United Parcel Service, Inc. Class B 110,962 114.09 5.5% 9.6% 114.75 99.4% 12.6x 10.4x 11.4x 10.5x 10.2x

Universal Logistics Holdings, Inc. 633 14.05 15.7% (9.7%) 18.31 76.7% 6.1x 5.4x 6.7x 7.2x 7.1x

XPO Logistics, Inc. 10,643 42.25 22.6% 34.1% 42.80 98.7% 18.3x 12.6x 9.6x 8.5x 7.8x

Median 15.4% 10.3% 97.8% 10.5x 10.1x 10.5x 8.8x 8.7x

Trucking

ArcBest Corporation $803 $28.85 47.9% 13.7% $29.95 96.3% 3.4x 2.6x 6.1x 5.9x 4.7x

Celadon Group, Inc. 657 7.90 9.6% (42.2%) 14.23 55.5% 7.9x 6.5x 6.8x 4.9x 6.5x

Covenant Transportation Group, Inc. Class A 569 19.21 26.8% (9.0%) 25.77 74.5% 4.4x 3.7x 4.4x 5.4x 4.8x

Heartland Express, Inc. 1,699 21.60 18.9% 11.6% 22.28 96.9% 8.0x 7.2x 9.1x 8.9x 8.8x

Knight Transportation, Inc. 2,854 34.70 27.4% 32.3% 35.25 98.4% 7.6x 7.7x 10.6x 10.6x 9.9x

Marten Transport, Ltd. 781 23.60 20.7% 34.4% 24.00 98.3% 4.9x 4.8x 5.9x 5.6x 5.4x

Old Dominion Freight Line, Inc. 7,317 86.21 23.1% 33.7% 87.23 98.8% 8.4x 7.8x 10.7x 10.8x 9.9x

P.A.M. Transportation Services, Inc. 286 22.52 11.4% (38.2%) 38.26 58.9% 7.2x 4.2x 5.1x 4.6x 4.3x

Saia, Inc. 1,146 41.03 40.9% 74.3% 42.55 96.4% 4.3x 4.8x 7.5x 7.2x 6.4x

Swift Transportation Company Class A 4,373 24.80 24.0% 53.1% 25.34 97.9% 5.9x 5.4x 8.0x 7.7x 6.9x

Universal Logistics Holdings, Inc. 633 14.05 15.7% (9.7%) 18.31 76.7% 6.1x 5.4x 6.7x 7.2x 7.1x

USA Truck, Inc. 226 9.24 7.7% (52.6%) 21.46 43.1% 4.5x 5.6x 6.1x 6.6x 5.6x

Werner Enterprises, Inc. 2,098 27.10 18.1% (0.2%) 28.80 94.1% 5.5x 4.7x 6.4x 6.4x 5.9x

YRC Worldwide Inc. 1,102 11.49 (7.1%) (31.7%) 17.73 64.8% 4.7x 4.2x 4.5x 3.8x 3.4x

Median 19.8% 5.7% 95.2% 5.7x 5.1x 6.5x 6.5x 6.2x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Nov-15 May-16 Current 2016E 2017P

Transportation & Logistics

TEV / LTM EBITDA as of

PUBLIC COMPARABLES

7

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ NOVEMBER 2016

PAGE |

Rail and Rail Services

American Railcar Industries, Inc. $1,179 $42.54 8.9% (21.9%) $57.57 73.9% 6.4x 4.4x 5.7x 6.1x 6.9x

Canadian National Railway Company 57,508 64.35 (3.7%) 6.9% 67.79 94.9% 10.7x 10.4x 11.9x 12.0x 11.4x

Canadian Pacific Railway Limited 28,263 145.55 (5.0%) (2.1%) 156.98 92.7% 11.2x 10.7x 12.4x 11.7x 10.9x

CSX Corporation 41,840 34.00 9.6% 16.4% 35.12 96.8% 7.8x 7.3x 9.4x 9.3x 8.8x

FreightCar America, Inc. 133 14.58 7.0% (39.5%) 24.95 58.4% 3.9x 1.3x 4.1x 7.2x 8.6x

Genesee & Wyoming, Inc. Class A 6,501 76.72 11.0% 5.8% 77.81 98.6% 10.8x 9.5x 11.9x 11.5x 9.9x

Greenbrier Companies, Inc. 1,355 35.60 0.1% 4.2% 37.40 95.2% 3.4x 2.1x 3.0x 2.9x 4.7x

Kansas City Southern 12,019 87.57 (5.4%) (6.5%) 100.69 87.0% 11.4x 11.3x 10.7x 10.6x 9.8x

Norfolk Southern Corporation 39,608 103.45 8.9% 6.8% 104.87 98.6% 9.3x 8.5x 9.9x 9.7x 9.1x

Trinity Industries, Inc. 6,521 25.98 12.3% (2.4%) 27.98 92.9% 4.6x 3.7x 5.7x 6.5x 8.3x

Union Pacific Corporation 96,452 99.83 3.2% 14.7% 100.63 99.2% 8.4x 8.3x 10.4x 10.4x 9.7x

Westinghouse Air Brake Technologies Corporation 8,095 85.63 6.0% 10.1% 88.47 96.8% 11.5x 10.7x 12.3x 13.2x 12.9x

Median 6.5% 5.0% 95.1% 8.8x 8.4x 10.1x 10.0x 9.4x

Marine

Aegean Marine Petroleum Network Inc. $1,253 $10.70 11.8% 48.8% $11.41 93.7% NM 11.2x 9.7x 8.9x 8.4x

Costamare Inc. 1,920 7.23 (2.3%) (42.1%) 12.56 57.6% 7.4x 6.4x 5.9x 6.0x 6.6x

Diana Shipping Inc. 757 3.47 38.8% (30.6%) 5.10 68.0% 19.8x NM NM NM NM

Kirby Corporation 4,128 63.55 9.2% (1.3%) 73.25 86.8% 7.3x 8.0x 8.6x 9.4x 10.0x

Matson, Inc. 2,418 37.55 (7.0%) (27.5%) 52.98 70.9% 10.0x 6.2x 9.0x 8.3x 7.7x

Nordic American Tankers Limited 1,101 9.06 (7.6%) (40.2%) 16.18 56.0% 8.8x 7.0x 6.6x 7.8x 9.6x

Rand Logistics, Inc. 233 1.23 59.7% (44.1%) 2.95 41.7% 7.6x 6.9x 7.7x 7.3x 6.6x

SEACOR Holdings Inc. 1,588 57.05 (2.3%) 9.5% 62.93 90.7% 8.5x 10.1x 13.7x 15.8x 10.1x

Wilh. Wilhelmsen ASA 2,222 3.36 12.5% 47.8% 5.55 60.5% 13.1x NM 15.7x 4.9x 6.3x

Median 9.2% (27.5%) 68.0% 8.6x 7.0x 8.8x 8.0x 8.0x

Transportation Equipment

Accuride Corporation $428 $2.58 4.9% 10.7% $2.84 90.8% 5.2x 5.5x 6.2x 5.9x 6.3x

Dana Incorporated 3,369 17.01 19.0% 10.5% 17.02 99.9% 4.8x 4.1x 5.2x 5.2x 5.0x

Gentherm Incorporated 1,138 30.85 9.8% (34.9%) 51.55 59.8% 11.2x 7.8x 7.7x 7.7x 7.2x

Spartan Motors, Inc. 264 8.70 (7.9%) 138.4% 10.50 82.9% 11.0x NM NM 14.6x 12.1x

Wabash National Corporation 932 12.71 (5.5%) (1.3%) 14.97 84.9% 5.1x 4.3x 3.6x 3.9x 5.4x

Median 4.9% 10.5% 84.9% 5.2x 4.9x 5.7x 5.9x 6.3x

PUBLIC COMPARABLES

8

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ NOVEMBER 2016

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Oct-15 Apr-16 Current 2016E 2017P

Transportation & Logistics

TEV / LTM EBITDA as of

PAGE |

Logistics Providers

Agility Public Warehousing Co. K.S.C. $5,061 $4,846 $4,767 $4,330 $4,077 $4,133 (5.1%) (2.3%) $258 $289 $276 $292 $322 $328 4.2% 6.0%

Air Transport Services Group, Inc. 607 580 590 619 758 894 0.6% 20.2% 157 158 179 198 218 275 8.0% 17.8%

Atlas Air Worldwide Holdings, Inc. 1,646 1,657 1,799 1,823 1,828 1,965 3.5% 3.8% 296 292 327 271 376 425 (2.9%) 25.2%

C.H. Robinson Worldwide, Inc. 11,359 12,752 13,470 13,476 13,050 13,973 5.9% 1.8% 723 740 805 925 914 931 8.5% 0.3%

Deutsche Post AG 71,303 73,132 75,117 65,681 61,071 63,738 (2.7%) (1.5%) 3,517 3,887 4,198 2,984 5,159 5,495 (5.3%) 35.7%

DSV A/S 7,750 8,137 8,645 7,563 9,631 10,243 (0.8%) 16.4% 530 543 560 532 608 723 0.1% 16.6%

Echo Global Logistics, Inc 758 884 1,173 1,512 1,725 1,913 25.9% 12.5% 34 34 44 54 73 82 16.5% 23.5%

Expeditors International of Washington, Inc. 5,981 6,080 6,565 6,617 6,066 6,435 3.4% (1.4%) 571 600 644 767 712 740 10.4% (1.8%)

FedEx Corporation 44,287 45,567 47,453 50,365 59,910 62,462 4.4% 11.4% 5,597 6,033 4,951 6,165 8,601 9,115 3.3% 21.6%

Forward Air Corporation 584 652 781 959 975 1,021 18.0% 3.2% 105 109 128 128 139 156 7.0% 10.2%

Hub Group, Inc. Class A 3,124 3,374 3,571 3,526 3,530 3,755 4.1% 3.2% 134 137 136 154 167 169 4.8% 4.7%

J.B. Hunt Transport Services, Inc. 5,055 5,585 6,165 6,188 6,557 7,127 7.0% 7.3% 759 825 920 1,054 1,081 1,167 11.6% 5.2%

Kuhne & Nagel International AG 18,248 18,529 19,118 17,376 19,763 20,507 (1.6%) 8.6% 956 1,028 1,073 1,062 1,085 1,156 3.6% 4.3%

Landstar System, Inc. 2,793 2,665 3,185 3,321 3,100 3,251 5.9% (1.1%) 232 203 251 269 254 270 5.1% 0.1%

Panalpina Welttransport (Holding) AG 7,053 7,289 7,327 6,081 5,163 5,517 (4.8%) (4.8%) 102 172 205 179 167 215 20.7% 9.4%

Roadrunner Transportation Systems, Inc. 1,073 1,361 1,873 1,995 1,961 2,019 23.0% 0.6% 81 103 125 130 104 115 17.0% (5.6%)

Ryder System, Inc. 6,257 6,419 6,639 6,572 6,762 6,979 1.7% 3.1% 1,299 1,361 1,505 1,660 1,792 1,854 8.5% 5.7%

TransForce Inc. 3,141 3,018 3,363 3,150 2,974 3,429 0.1% 4.3% 386 319 372 332 339 459 (4.9%) 17.5%

United Parcel Service, Inc. Class B 54,064 55,491 58,256 58,050 60,970 63,929 2.4% 4.9% 3,109 8,765 6,889 9,429 10,511 10,935 44.7% 7.7%

Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,076 1,100 2.9% (1.3%) 87 123 114 108 89 89 7.4% (9.5%)

XPO Logistics, Inc. 279 702 2,357 7,623 14,629 14,923 NM NM (25) (17) 92 474 1,247 1,354 NM NM

Total $251,461 $259,756 $273,405 $267,955 $285,576 $299,312 4.7% 4.5% $18,909 $25,705 $23,794 $27,169 $33,957 $36,051 8.4% 9.7%

Trucking

ArcBest Corporation $2,066 $2,300 $2,613 $2,667 $2,691 $2,857 8.9% 3.5% $71 $107 $154 $167 $137 $168 33.0% 0.3%

Celadon Group, Inc. 599 614 742 901 1,065 1,059 14.6% 8.4% 94 99 87 117 132 92 7.7% (11.4%)

Covenant Transportation Group, Inc. Class A 674 685 719 724 668 699 2.4% (1.7%) 63 63 89 143 106 122 31.2% (7.8%)

Heartland Express, Inc. 546 582 871 736 623 624 10.5% (7.9%) 138 149 208 193 190 190 12.0% (0.8%)

Knight Transportation, Inc. 936 969 1,102 1,183 1,112 1,177 8.1% (0.2%) 193 193 256 281 269 286 13.3% 1.0%

Marten Transport, Ltd. 638 659 673 665 666 700 1.4% 2.6% 101 110 115 127 140 141 7.7% 5.6%

Old Dominion Freight Line, Inc. 2,110 2,338 2,788 2,972 2,985 3,191 12.1% 3.6% 396 466 606 676 679 738 19.5% 4.5%

P.A.M. Transportation Services, Inc. 381 403 411 417 434 464 3.1% 5.5% 41 50 55 63 62 67 15.3% 3.1%

Saia, Inc. 1,099 1,139 1,272 1,221 1,212 1,275 3.6% 2.2% 106 125 145 155 157 175 13.5% 6.2%

Swift Transportation Company Class A 3,493 4,118 4,299 4,229 4,046 4,195 6.6% (0.4%) 528 577 583 611 569 632 5.0% 1.7%

Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,076 1,100 2.9% (1.3%) 87 123 114 108 89 89 7.4% (9.5%)

USA Truck, Inc. 512 555 602 508 434 438 (0.3%) (7.1%) 20 41 60 56 34 39 41.6% (15.9%)

Werner Enterprises, Inc. 2,036 2,029 2,139 2,094 2,001 2,072 0.9% (0.5%) 318 295 316 370 327 353 5.2% (2.3%)

YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,686 4,842 (0.1%) 0.1% 198 205 197 259 292 329 9.3% 12.8%

Total $20,979 $22,289 $24,492 $24,279 $23,699 $24,693 5.3% 0.5% $2,355 $2,603 $2,984 $3,326 $3,182 $3,423 15.8% (0.9%)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P

Transportation & Logistics

PUBLIC COMPARABLES

9

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INDUSTRY UPDATE │ NOVEMBER 2016

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Rail and Rail Services

American Railcar Industries, Inc. $712 $751 $733 $889 $628 $531 7.7% (22.7%) $146 $179 $204 $273 $196 $170 23.2% (21.1%)

Canadian National Railway Company 9,923 10,263 10,986 9,857 8,835 9,320 (0.2%) (2.8%) 4,611 4,710 5,137 5,021 4,788 5,039 2.9% 0.2%

Canadian Pacific Railway Limited 5,697 5,952 5,994 5,246 4,644 4,925 (2.7%) (3.1%) 1,800 2,340 2,640 2,431 2,413 2,597 10.5% 3.4%

CSX Corporation 11,756 12,026 12,669 11,811 10,859 11,239 0.2% (2.5%) 4,422 4,534 4,764 4,792 4,508 4,765 2.7% (0.3%)

FreightCar America, Inc. 677 290 599 773 504 409 4.5% (27.3%) 41 (4) 17 51 18 15 7.9% (45.2%)

Genesee & Wyoming, Inc. Class A 875 1,569 1,639 2,000 1,973 2,109 31.7% 2.7% 277 533 579 586 562 661 28.4% 6.2%

Greenbrier Companies, Inc. 1,812 1,755 2,203 2,605 2,680 2,076 12.9% (10.7%) 157 143 237 430 474 284 40.0% (18.8%)

Kansas City Southern 2,239 2,369 2,577 2,419 2,330 2,475 2.6% 1.2% 872 962 1,106 1,098 1,131 1,230 8.0% 5.8%

Norfolk Southern Corporation 11,040 11,245 11,624 10,511 9,867 10,325 (1.6%) (0.9%) 4,040 4,173 4,526 3,938 4,089 4,343 (0.8%) 5.0%

Trinity Industries, Inc. 3,812 4,365 6,170 6,393 4,591 3,414 18.8% (26.9%) 730 963 1,402 1,528 999 783 27.9% (28.4%)

Union Pacific Corporation 20,926 21,963 23,988 21,813 19,882 20,854 1.4% (2.2%) 8,505 9,223 10,657 10,064 9,246 9,918 5.8% (0.7%)

Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,308 2,909 2,935 11.4% (5.8%) 436 489 588 701 607 633 17.1% (5.0%)

Total $71,860 $75,115 $82,227 $77,625 $69,701 $70,611 7.2% (8.4%) $26,035 $28,243 $31,857 $30,912 $29,030 $30,437 14.5% (8.2%)

Marine

Aegean Marine Petroleum Network Inc. $7,259 $6,335 $6,662 $4,232 $4,031 $5,091 (16.5%) 9.7% $102 $84 $54 $81 $140 $150 (7.5%) 36.0%

Costamare Inc. 386 414 484 490 462 435 8.3% (5.8%) 246 267 330 325 323 288 9.8% (5.9%)

Diana Shipping Inc. 221 164 176 158 100 133 (10.6%) (8.1%) 121 55 52 28 (15) 1 (38.5%) (81.6%)

Kirby Corporation 2,113 2,242 2,566 2,148 1,754 1,758 0.5% (9.5%) 507 582 646 573 440 422 4.2% (14.2%)

Matson, Inc. 1,560 1,637 1,714 1,885 1,921 1,998 6.5% 3.0% 175 182 203 298 292 314 19.5% 2.7%

Nordic American Tankers Limited 131 244 351 446 238 226 50.5% (28.8%) 13 (7) 74 211 144 112 NM (27.2%)

Rand Logistics, Inc. 157 156 153 148 117 118 (1.8%) (10.7%) 28 33 34 32 32 35 4.5% 4.0%

SEACOR Holdings Inc. 1,581 1,247 1,319 1,055 831 893 (12.6%) (8.0%) 235 197 245 150 101 160 (14.0%) 3.6%

Wilh. Wilhelmsen ASA 395 325 285 313 1,957 1,890 (7.5%) NM 226 170 134 186 336 336 (6.3%) 34.4%

Total $13,802 $12,764 $13,710 $10,874 $11,411 $12,542 1.9% (7.3%) $1,654 $1,562 $1,772 $1,884 $1,793 $1,818 (3.5%) (5.4%)

Transportation Equipment

Accuride Corporation $930 $643 $705 $686 $590 $577 (9.7%) (8.3%) $50 $43 $75 $77 $72 $67 15.6% (6.2%)

Dana Incorporated 7,224 6,769 6,617 6,060 5,772 6,003 (5.7%) (0.5%) 753 706 705 654 654 679 (4.6%) 1.9%

Gentherm Incorporated 555 662 812 856 918 982 15.6% 7.1% 68 83 135 155 148 158 31.4% 1.1%

Spartan Motors, Inc. 471 470 507 550 585 604 5.4% 4.8% 16 6 10 0 18 22 NM NM

Wabash National Corporation 1,462 1,636 1,863 2,027 1,824 1,577 11.5% (11.8%) 110 142 161 219 242 178 25.7% (9.8%)

Total $10,641 $10,179 $10,504 $10,180 $9,688 $9,743 3.4% (1.7%) $997 $981 $1,086 $1,105 $1,133 $1,105 17.0% (3.3%)

PUBLIC COMPARABLES

10

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ NOVEMBER 2016

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P

Transportation & Logistics

PAGE |

TRANSPORTATION & LOGISTICS

SOURCES

TRANSPORTATION & LOGISTICS

1. FactSet.

2. MergerMarket.

3. Pitchbook.

DISCLOSURES

11

INDUSTRY UPDATE │ NOVEMBER 2016

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