Investor Presentation First Quarter 2019 Disclaimer and - PowerPoint PPT Presentation

May 2019 Investor Presentation First Quarter 2019

Disclaimer and Forward-Looking Statements Special Note Regarding Forward-Looking Statements This presentation, and certain information that management may discuss in connection with this presentation, contains forward- looking statements, within the meaning of the United States Private Securities Litigation Reform Act of 1995, which are intended to come within the safe harbor protection provided by such Act. These forward-looking statements reflect our current expectations, beliefs, plans, or forecasts with respect to, among other things, future events and financial performance and trends in our business and industry. Forward-looking statements are often characterized by words or phrases such as “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “prospects,” “potential” and “forecast,” and other words, terms, and phrases of similar meaning. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties. Readers are cautioned that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Risks and uncertainties that could cause our actual results to differ materially from those contained in the forward-looking statements include, among others, those discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (SEC) as well as in other sections of the Form 10-K and in our subsequently filed Quarterly Reports on Form 10-Q and other filings with the SEC. Non-GAAP Financial Measures Reconciliation This presentation, and certain information that management may discuss in connection with this presentation, references certain non-GAAP financial measures, including revenues (excluding fuel surcharge), adjusted income from operations, adjusted net income, adjusted diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and Free Cash Flow. Reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are in an appendix to this presentation. Management believes the use of these non-GAAP measures assists investors in understanding our business. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools, and you should not consider them in isolation, or as substitutes, for analysis of our results as reported under GAAP. 2

Leading North American Transportation Services Company Iconic Orange Brand  A $5.0 billion Company founded in 1935 in Green Three Segments, all at scale – Truckload , Intermodal Bay, WI and Logistics ― Provides resiliency across market cycles  Brand reputation of operational excellence built on ― Positioned for sustainable growth service, trust, and reliability ― Utilize transformative Quest technology 4%  Industry-leading safety, culture and performance 19% Truckload : ― For-hire and Dedicated configurations 56% 69%  Comprehensive presence throughout North 20% ― One of the largest carriers in North America America Intermodal :  Broad Portfolio of businesses with different asset ― Owned container/chassis w/Company dray intensities ― One of the largest providers in North America  Only known industry peer of size to have Logistics : completed a comprehensive IT platform ― Freight brokerage & logistics services transformation ― Fastest growing segment  Strong balance sheet, with access to capital, provides flexibility to pursue organic and acquisitive growth initiatives 3

First Quarter 2019 Key Takeaways Results (dollars in $M except EPS)  Revenues (xFSC) growth of 6% YoY driven by price REVENUE REVENUE Metric 1 1Q19 1Q18 and volume growth in Intermodal and volume (xFSC) growth in Logistics.  Truckload Revenue decreased 3% YoY. Price was Operating Revenues $1,194 $1,139 positive compared to 1Q18, however, it was more $916.29 $1,006.44 than offset by lower volume and asset utilization. Revenues (xFSC) $1,082 $1,021 Income from operations decreased 50% YoY due to lower volume and productivity, and increased Adj Income from Operating Net Income $52 $68 Operations variable costs. Operating ratio of 95.6%. (adj.) Income (adj.)  Intermodal Revenue growth of 18% YoY. Revenue Adj Net Income $37 $48 per order improved 13% YoY due to carry-over and $22.57 1Q19 rate renewals, and increased length of haul. Adj Diluted EPS $0.21 $0.27 Income from operations decreased 10% due to lower productivity and higher rail and ramp storage costs, largely the result of adverse weather. EBITDA Adj EBITDA $125 $139 Operating ratio of 91.6%.  Logistics Revenue growth of 10% YoY. Income from Free Cash Flow $83 $74 operations increased 32% YoY due to brokerage $0.14 $111.42 growth and effective net revenue management. Net CapEx $50 $26 Operating ratio of 95.8%. Note: 1 See Appendix for non-GAAP reconciliations 4

Diversity of Customers and End-Markets Served Supports Stability and Growth Through Business Cycles Diverse end-market footprint… …with a broadening customer base… 2018 Revenues (xFSC) 1 Change in Customer Concentration 1 Retail 16% 2 All Other 36% 51% 61% Consumer Products 11% 11% 10% Food & Beverage 12% 38% E-Commerce 6% 29% Auto 5% Transportation 6% 2011 2018 Home Improvement #1 – #10 #11 – #20 All Others 8% …that includes nearly 200 of the Fortune 500 Notes: 1 Based on Enterprise Revenues (excluding fuel surcharge). See Appendix for non-GAAP reconciliation 2 “All Other” includes Apparel, Electronics, Paper, Chemical, Construction, Energy, Furniture, Medical, Metal, Plastics, and other miscellaneous industries 5

TRUCKLOAD INTERMODAL LOGISTICS BROKERAGE STANDARD FOR HIRE DEDICATED DOOR-TO-DOOR Temperature Control Full Truckload DRY VAN LTL Flatbed Long-Haul Expedited Intermodal Sole-Source Regional/Short-Haul CONTAINER ON SPECIALTY FOR HIRE DEDICATED FLAT CAR (COFC) BULK Long-Haul Chemical SUPPLY CHAIN SERVICES (3PL) Regional/Short-Haul Energy LONG-HAUL Expedited Supply Chain Management Supplier Management Supply Chain Design Procurement TEMPERATURE CONTROL Cross Border Freeze Protection Reefer REGIONAL E-COMMERCE/First-to-Final-Mile White Glove Threshold NORTH Expedited Large Parcel AMERICAN OTHER SPECIALTY IMPORT/EXPORT SERVICES CROSS-BORDER Specialty Van Multi-Stop Warehousing Port Drayage Flatbed Cross-Dock Transloading NORTH AMERICAN CROSS-BORDER / INTERNATIONAL FREIGHT 6

Significant Size and Scale in Each Business Segment Enterprise Revenues (xFSC) 1 Truckload Revenues (xFSC) 1 $4,454 208 $3,997 $2,268 $3,752 $2,187 $3,588 $2,091 196 $3,334 $1,977 166 1,025 $1,862 182 834 161 737 639 588 954 780 758 790 723 2,268 2,187 2,091 1,977 1,862 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Truckload Intermodal Logistics Other 2 Intermodal Revenues (xFSC) 1 Logistics Revenues (xFSC) 1 $1,025 $954 $834 $737 $790 $780 $758 $639 $723 $588 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Notes: 1 Revenue excludes fuel surcharge, in millions. See appendix for reconciliation of Enterprise Revenues (xFSC) 2 Other is net of intercompany eliminations . 7

A Consistent Track Record of Financial Performance Enterprise Revenues (xFSC) 1 Adjusted EBITDA 1 $4,454 $3,997 208 $675 $3,752 $3,588 196 $3,334 $559 $561 166 1,025 $529 182 $474 834 161 737 639 588 954 780 758 790 723 2,268 2,187 2,091 1,977 1,862 2014 2015 2016 2016 2017 2014 2015 2017 2018 2018 2 Truckload Intermodal Logistics Other Adjusted Income from Operations 1 Adjusted Net Income 1 $275 $384 $293 $293 $282 $244 $163 $161 $158 $136 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 Note: 1 See Appendix for non-GAAP reconciliations, in millions 2 Other is net of intercompany eliminations 8 3 Based on most recent 4-year CAGR of Revenues (xFSC)

Appendix

Non-GAAP Reconciliation – Revenues (excluding fuel surcharge) 1 ($M) FY2014 FY2015 FY2016 FY2017 FY2018 1Q19 1Q18 Operating revenues $3,940.6 $3,959.4 $4,045.7 $4,383.6 $4,977.0 $1,194.1 $1,139.0 Less: Fuel surcharge revenues 606.9 371.2 294.0 386.3 522.8 111.8 117.8 Revenues (excluding fuel surcharge) $3,333.7 $3,588.2 $3,751.7 $3,997.3 $4,454.2 $1,082.3 $1,021.2 Notes: 1 Table may not sum due to rounding 10