FEB 20, 2019 INVESTOR PRESENTATION C.H. Robinson Worldwide, Inc. All Rights Reserved.

Transcription

1 FEB 20, 2019 INVESTOR PRESENTATION

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

3 GLOBAL MULTIMODAL, MULTISERVICE PROVIDER 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 3

4 FULL SUITE OF LOGISTICS AND TECHNOLOGY SERVICES 53% 1.45B TRUCKLOAD Based on 2018 net revenues 17% 471M LESS THAN TRUCKLOAD (LTL) 12% 313M OCEAN 5% 122M MANAGED SERVICES AND OTHER 5% 121M AIR 4% 111M SOURCING 3% 89M CUSTOMS 1% 32M INTERMODAL W E D E L I V E R A N A V 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 C U S T O M E R 20B FREIGHT UNDER MANAGEMENT 4

5 DIVERSIFIED PORTFOLIO OF CUSTOMERS CUSTOMER SIZE SEGMENTATION GLOBAL CUSTOMER COUNT 0.6% % OF NET REVENUES 26.2% LARGE 2.2% 23.7% 124K+ MEDIUM 5.9% 18.9% C U S T O M E R S A C R O S S T H E G L O B E SMALL 91.3% 31.2% 48% O F N E T R E V E N U E S T O P C U S T O M E R S 100% R E T E N T I O N I N % Y E A R S W I T H C. H. R O B I N S O N % of 2018 net revenues 5

6 A GLOBAL, DIVERSE CARRIER BASE AGGREGATING A FRAGMENTED MARKET 9% MEDIUM CARRIERS TRUCKS 83% SMALL CARRIERS <100 TRUCKS 8% LARGE CARRIERS >400 TRUCKS PERCENTAGE OF 2018 TRUCKLOAD SHIPMENTS BY CARRIER SIZE 76K ACTIVE CARRIERS AND SUPPLIERS IN 2018 CAPACITY RELATIONSHIPS WITH OVER 100 LTL CARRIERS EXTENSIVE INTERMODAL COVERAGE WITH DIRECT ACCESS TO ALL CLASS 1 NORTH AMERICAN RAILROADS TOP 5 NVOCC WITHIN THE GLOBAL OCEAN CARRIER PORTFOLIO 20 CORE AIR CARRIERS MOVE 73% OF OUR VOLUME 6

7 O U R R E S U LT S N E T R E V E N U E S 7. 0 % 10- Y E A R C A G R (IN MILLIONS) 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 2, 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 % 10- Y E A R C A G R H A S R E T U R N E D O V E R 5 BILLION T 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 ) D I V I D E N D P E R S H A R E 7.6% 10- Y E A R C A G R (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. 7

8 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 CONNECTS 200K CUSTOMERS AND CARRIERS, DELIVERING REAL TIME INSIGHTS AND VISIBILITY INTERMODAL 124K C U S T O M E R S AIR DIGITAL & TRADITIONAL TRUCKLOAD OCEAN 76K C A R R I E R S LTL DIGITAL & TRADITIONAL CUSTOMS SOURCING MANAGED SERVICES 8

9 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 W A N T T O B U Y MOST CONNECTED, EASIEST TO ACCESS: USE OUR PLATFORM OR CONNECT VIA OTHERS 75% OF 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 L Y VISIBILITY PLATFORMS TELEMATICS PROVIDERS PROPRIETARY TMS ERP 50% O F S H I P M E N T S P O W E R E D B Y N A V I S P H E R E A R E F U L L Y A U T O M A T E D AGGREGATORS 650M D I G I T A L I N T E R A C T I O N S A N N U A L L Y 9

10 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 D E L I V E R S A N INFORMATION ADVANTAGE Creating better outcomes for customers, carriers, and employees 10

11 O U R I N F O R M AT I O N A D VA N TA G E UNIQUELY DELIVERS BETTER OUTCOMES FOR OUR CUSTOMERS C U S T O M E R B E N E F I T S Market insights to improve planning and effectiveness On demand reliable capacity Ability to identify and avoid supply chain disruptions Predictable pricing Real time visibility to inventory in motion Seamless integration and fully automated interactions Small to global services customized to the needs of customers 11

12 RATE C U S T O M E R # 1 : C R E AT I N G S U P P LY C H A I N E F F I C I E N C I E S F O R L A R G E C P G L A R G E C P G C A R R I E R R A T E S F O R S I N G L E L A N E CUSTOMER RATE PER LOAD (ALL CARRIERS) C.H. ROBINSON RATE PER LOAD (50th PERCENTILE) CUSTOMER RATES ABOVE C.H. ROBINSON Analyzed CPG s raw supply chain data to identify savings opportunities Identified several lanes where C.H. Robinson could bring savings vs. current providers Result: C.H. Robinson increased market share and large CPG reduced supply chain expenses 12

13 C U S T O M E R # 2 : P R O A C T I V E LY AV O I D I N G S U P P LY C H A I N D I S R U P T I O N S Truck Load # Origin Wilmington, NC, US Destination Miami, FL, US 31 9 Navisphere Vision provides shippers proactive alerts on shipment delays & potential disruptions DELAYED SHIPMENT ALERT Probability of Delay 90% Result: Better planning and more proactive decision making to mitigate delays VIEW DETAILS 13

14 O U R I N F O R M AT I O N A D VA N TA G E UNIQUELY DELIVERS BETTER OUTCOMES FOR OUR CARRIERS C A R R I E R B E N E F I T S Access to largest network of truckload and LTL freight Fully automated process from booking to payment Ability to optimize routes through multi-leg booking Improved yield through more efficient planning tools Carrier Advantage benefits Tools for carriers to run their businesses 14

15 C A R R I E R # 1 : O P T I M I Z I N G C A R R I E R R O U T I N G S U N P L A N N E D C A R R I E R R O U T I N G : TRANSACTIONAL & INEFFICIENT O P T I M I Z E D C A R R I E R R O U T I N G : M A X I M I Z I N G P R O F I T A B I L I T Y OPTION 1 OPTION 2 Maximizing choices and profitability for carriers Delivering the freight they want in the lanes they want Our information advantage delivers reduced downtime and increased margin for carriers and C.H. Robinson DEADHEAD 15

16 C A R R I E R # 2 : G R O W I N G C A R R I E R & C. H. R O B I N S O N R E V E N U E D A I L Y S H I P M E N T V O L U M E C.H. ROBINSON STARTS PROVIDING PRICING GUIDANCE PREVIOUS TOTAL SHIPMENTS VS. NEW TOTAL SHIPMENTS C.H. Robinson provides LTL carrier spot quote pricing guidance and improves carrier win rates Results: 3X increase in LTL shipments and 2X increase in net revenue growth for carrier C.H. Robinson captures additional market share 16

17 O U R I N F O R M AT I O N A D VA N TA G E UNIQUELY DELIVERS BETTER OUTCOMES AND GREATER EFFICIENCY FOR EMPLOYEES E M P L O Y E E B E N E F I T S Real time information driven by our data Predictive price & cost models Capacity availability and matching Real time market conditions Frictionless, information driven work stream Employees focus on meaningful high level customer service and problem solving 17

18 E M P L O Y E E : L E V E R A G I N G D ATA T O D R I V E P R O F I TA B L E S O L U T I O N S EQUIPPING EMPLOYEES WITH PREDICTIVE PRICE AND COST MODELS TO MAXIMIZE PROFITABILITY CHICAGO TO ATLANTA ROUTE Dry Van, 2 Stops 716 miles Real Time Rate 1,050 Predicted Cost Projected Profitability Likelihood of Coverage 80% Tools provide a real time information advantage that enables employees to maximize profitability and drive higher volumes 18

19 W H AT Y O U S H O U L D E X P E C T Continued focus on taking market share Automation of core processes Improved operating leverage 19