MARCH 6, 2019 INVESTOR PRESENTATION€¦ · Revenue Margin NORTH AMERICA TRUCKLOAD PRICE AND COST...

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©2019 C.H. Robinson Worldwide, Inc. All Rights Reserved. MARCH 6, 2019 INVESTOR PRESENTATION

Transcript of MARCH 6, 2019 INVESTOR PRESENTATION€¦ · Revenue Margin NORTH AMERICA TRUCKLOAD PRICE AND COST...

Page 1: MARCH 6, 2019 INVESTOR PRESENTATION€¦ · Revenue Margin NORTH AMERICA TRUCKLOAD PRICE AND COST YOY % CHANGE (1), TRANSPORTATION NET REVENUE MARGIN AVERAGE: 17.1% Average Trans

©2019 C.H. Robinson Worldwide, Inc. All Rights Reserved.

MARCH 6, 2019

INVESTOR PRESENTATION

Page 2: MARCH 6, 2019 INVESTOR PRESENTATION€¦ · Revenue Margin NORTH AMERICA TRUCKLOAD PRICE AND COST YOY % CHANGE (1), TRANSPORTATION NET REVENUE MARGIN AVERAGE: 17.1% Average Trans

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-looking statements are subject to certain risks and

uncertainties that could cause actual results to differ materially from our historical experience or our present

expectations, including, but not limited to such factors as changes in economic conditions, including uncertain

consumer demand; changes in market demand and pressures on the pricing for our services; changes in the

availability of equipment and services from third party providers, including the availability of contracted truckload

carriers and changes in prices; changes in political and governmental conditions domestically and internationally;

catastrophic events such as environmental events or terrorist attacks; failure to retain employees; failure of any of

our technology or operating systems, including due to data security breaches or hacking; competition and growth

rates within the third party logistics industry; risks associated with our decentralized operations; seasonality in the

transportation industry; risks associated with litigation and insurance coverage; risks associated with operations

outside of the U.S.; risks associated with the produce industry, including food safety and contamination issues; fuel

prices and availability; risk of unexpected or unanticipated events or opportunities that might require additional

capital expenditures; our dependence on our largest customers; risks associated with identifying suitable

acquisitions and investments and with integrating acquired companies; risks associated with our long-term

growth and profitability; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

S A F E H A R B O R S TAT E M E N T

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• 115 year history of accelerating commerce

• Connecting over 200,000 customers and carriers around the globe

• North America’s largest 3PL

• Unmatched experience and scale

GLOBAL MULTIMODAL, MULTISERVICE PROVIDER

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Based on 2018 net revenues

W E D E L I V E R A N AV E R A G E O F O V E R 3 S E R V I C E S P E R T O P 5 0 0 C U S T O M E R

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FULL SUITE OF LOGISTICS AND TECHNOLOGY SERVICES

$1.45BTRUCKLOAD

53%

$471M LESS THAN

TRUCKLOAD

(LTL)

17%

$313M OCEAN

12%

$122M MANAGED SERVICES

AND OTHER

5%

$111M SOURCING

4%

$121MAIR

5%

$89M CUSTOMS

3%

$32M INTERMODAL

1%

$20B FREIGHT UNDER

MANAGEMENT

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WE COMPETE IN A GROWING INDUSTRY

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Source: Technavio

G L O B A L O C E A N F R E I G H T M A R K E T F O R E C A S T

4 % 2 0 1 8 - 2 0 2 2 C A G R (IN MILLION TEUs)

67

2018

69

2019

72

2020

75

2021

79

2022

Source: Technavio

G L O B A L A I R F R E I G H TM A R K E T F O R E C A S T

4 % 2 0 1 8 - 2 0 2 2 C A G R (IN MILLION TONNES)

31

2018

32

2019

34

2020

35

2021

37

2022

Source: Armstrong & Associates

U . S . 3 P L B R O K E R A G E M A R K E T F O R E C A S T

1 0 % 2 0 1 8 - 2 0 2 2 C A G R (IN BILLIONS)

$80

2018E

$88

2019E

$97

2020E

$107

2021E

$118

2022E

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FREIGHT BROKERAGE MODEL IS INCREASINGLY RELEVANT

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Source: Armstrong & Associates

U . S . F R E I G H T B R O K E R A G E P E N E T R AT I O N O F T O TA L F R E I G H T M A R K E T

4%5%

6% 6%7%

8%9% 9%

10%

8%

10%11%

12%13%

15% 15%

16%

19%

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SIZE AND SCALE MATTER

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Source: Transport Topics

L A R G E S T N O R T H A M E R I C A F R E I G H T B R O K E R S B Y E S T I M AT E D N E T R E V E N U E S

2 0 1 8(IN BILLIONS)

$1,525

$521$395 $339 $330 $305 $300

$180 $164 $151

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DIVERSIFIED PORTFOLIO

OF CUSTOMERS

124K+ C U S T O M E R S A C R O S S T H E G L O B E

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CUSTOMER SIZE SEGMENTATION

CUSTOMER COUNT

% OF NET REVENUES

GLOBAL

LARGE

MEDIUM

SMALL

0.6%

2.2%

5.9%

91.3%

26.2%

23.7%

18.9%

31.2%

% of 2018 net revenues

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48%O F N E T

R E V E N U E S

100%R E T E N T I O N

I N 2 0 1 8

90%1 0 + Y E A R S W I T H

C . H . R O B I N S O N

T O P 5 0 0 C U S T O M E R S

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A GLOBAL, DIVERSE CARRIER BASE –

AGGREGATING A FRAGMENTED MARKET

EXTENSIVE INTERMODAL COVERAGE WITH

DIRECT ACCESS TO ALL CLASS 1NORTH AMERICAN RAILROADS

TOP 5 NVOCC WITHIN THE GLOBAL OCEAN

CARRIER PORTFOLIO

20 CORE AIR CARRIERS MOVE 73% OF OUR VOLUME

CAPACITY RELATIONSHIPS WITH OVER 100LTL CARRIERS

PERCENTAGE OF 2018

TRUCKLOAD

SHIPMENTS

BY CARRIER SIZE

8%LARGE CARRIERS

>400 TRUCKS

83%SMALL CARRIERS

<100 TRUCKS

9%MEDIUM CARRIERS

100-400 TRUCKS

76K ACTIVE CARRIERS AND SUPPLIERS IN 2018

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VOLUME GROWTH OVER TIME

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+4%T R U C K L O A D

N O R T H A M E R I C A

V O L U M E G R O W T H

2 0 1 0 - 2 0 1 8 C A G R

+13%LT L

G L O B A L

V O L U M E G R O W T H

2 0 1 3 - 2 0 1 8 C A G R

+10%O C E A N

+15%A I R

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11%

13%

15%

17%

19%

21%

23%

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

YoY Price Change

YoY Cost Change

Trans Net Revenue Margin

N O R T H A M E R I C A T R U C K L O A D P R I C E A N D C O S T Y O Y % C H A N G E ( 1 ) ,

T R A N S P O R TAT I O N N E T R E V E N U E M A R G I N

AVERAGE: 17.1%

Average Trans Net Revenue Margin

MAINTAIN MARGIN THROUGH THE FREIGHT CYCLE

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(1) YoY change in cost and price exclude the estimated impact of fuel.

TR

AN

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OR

TA

TIO

N N

ET

RE

VE

NU

E M

AR

GIN

YO

Y %

CH

AN

GE

IN

CO

ST

AN

D P

RIC

E

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N O R T H A M E R I C A T R U C K L O A D P R I C E A N D C O S T P E R M I L E ( 1 )

MAINTAIN MARGIN THROUGH THE FREIGHT CYCLE

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PRICE PER MILE

COST PER MILE

201820172016201520142013201220112010

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(1) Cost and price per mile exclude the estimated impact of fuel.

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CONNECTS 200K

CUSTOMERS AND

CARRIERS,

DELIVERING REAL

TIME INSIGHTS AND

VISIBILITY

O U R G L O B A L

M U LT I M O D A L P L AT F O R M

76KC A R R I E R S

TRUCKLOAD

LTL

OCEAN

MANAGED SERVICES

INTERMODAL

124KC U S T O M E R S

AIR

CUSTOMS

SOURCING

DIGITAL &

TRADITIONAL

DIGITAL &

TRADITIONAL

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M E E T I N G O U R C U S T O M E R S & C A R R I E R S W H E R E T H E Y WA N T T O B U Y

MOST CONNECTED,

EASIEST TO ACCESS:

USE OUR PLATFORM OR

CONNECT VIA OTHERS

650M D I G I TA L

I N T E R A C T I O N S A N N U A L LY

VISIBILITY PLATFORMS

TELEMATICS PROVIDERS

PROPRIETARY TMS

ERP

AGGREGATORS50% O F S H I P M E N T S

P O W E R E D B Y N AV I S P H E R E A R E F U L LY

A U T O M AT E D

75% O F S H I P M E N T S A R E

T E N D E R E D T O U S E L E C T R O N I C A L LY

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O U R I N F O R M AT I O N A D VA N TA G E C R E AT E S B E T T E R O U T C O M E S

EXPERIENCE• 115 years of accelerating commerce

• Multimodal

• Across all industries

• Across all customer segments

+

SCALE• 124K customers, 76K carriers

• 650M digital interactions annually

• 18M shipments annually

• 1.5M quote requests per day

Creating better outcomes for customers, carriers, and employees

D E L I V E R S A N

INFORMATIONADVANTAGE

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(1) Adjusted results excluding Non-Recurring Transaction Impacts related to the acquisition of Phoenix International Freight Services LTD. and Apreo Logistics S.A. and the divestiture of T-Chek Systems Inc.

(2) Includes a $500 million accelerated share repurchase.

N E T R E V E N U E S7 . 0 % 1 0 - Y E A R C A G R (IN MILLIONS)

H A S R E T U R N E D O V E R

$5 BILLIONT O S H A R E H O L D E R S

I N T H E L A S T 1 0 Y E A R S ( 2 )

O U R R E S U LT S

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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$2,705

D I L U T E D E P S F R O M C O N T I N U I N G O P E R AT I O N S ( 1 )

8 . 6 % 1 0 - Y E A R C A G R

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$4.73$2,800

$2,600

$2,400

$2,200

$2,000

$1,800

$1,600

$1,400

$z1,200

$1,000

D I V I D E N D

P E R S H A R E

7.6%1 0 - Y E A R C A G R

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Continued focus on taking market share

Automation of core processes

Improved operating leverage

WHAT YOU SHOULD EXPECT

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