c.h. robinson worldwide, inc. jan-sep 2008 rev 9.21.07

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C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Page 1: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

C.H. Robinson Worldwide, Inc.

Jan-Sep 2008

Rev 9.21.07

Page 2: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

[ 2 ]

Long Term Debt $0.00

0

1

2

3

4

5

6

7

8

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Gross RevenuesIn Billions

Overview

+ A leading 3rd party provider logistics services

+ 103 years of growth + (founded in 1905)

+ 2007 Statistics+ $7.3 billion gross revenues

+ 218 offices worldwide

+ 7,332 employees

+ One of the largest non-asset based transportation companies.

+ Publicly traded (NASDAQ)+ Ranked 341 on Fortune 500

+ #1 in our industry

Jan-Sep 2008$6.6 Billion Gross Rev +23.5%

224 Offices7,966 Employees +817

Page 3: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Overview Cont’d

+ Nearly 6.5 million shipments delivered for 25,000 customers

+ All modes, Door-to-door service around the world

+ Contract with over 48,000 carriers worldwide

+ Service driven culture

+ Employees continue to own significant percentage of outstanding shares

FOOD AND BEVERAGE

RETAIL

PAPER AND PAPERRELATED PRODUCTS

MANUFACTURING

OTHER

37%

14%

26%

9%

14%

Top 100 Customers Represent 31% of CHRW Total Gross Profits

Percentage of 2007 Top 100 Customersby Total Gross Profits

Page 4: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Overview cont’d

+ CHRW had its beginning in the buying and selling of produce

+ 26 produce offices in major cities and growing areas

+ 660 employees dedicated to produce and perishable transportation

+ 2006 Results+ Sourcing sales were 8.7% of CHRW

gross profit

+ Over 88 million cases sold

+ Managed over 200,000 produce shipments

... 4th largest produce and sourcing company in the United States.

Page 5: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Long-Term Growth Strategy

To continue growing our share of the North American market

Develop new third-party logistics services

Replicate North American branch network on other continents

Strengthen global forwarding network

Page 6: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Core Competencies

Carrier/SupplierRelationships

Business Processes & Technology

PeopleShipper/VendorRelationships

Page 7: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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North American Network

• San Juan, PR

Opened in 2007•Baton Rouge, LA•Bay Area, CA•Colorado Springs, CO•Long Beach, CA

Opening in 2008•Albany, NY•Washington DC•Lansing, MI•Columbus North, OH•Corpus Christi, TX

Page 8: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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South American Network

European Network

Asian Network

Overseas Networks

Opened in 2007Singapore

Page 9: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Why is the 3rd Party Logistics industry growing?

+ Flexibility and service

+ Fixed costs become variable costs for shippers

+ Leveraged economies of scale

+ Immediate access to implemented information technology

+ Broad logistics knowledge

+ Anticipated continuation of capacity shortages

Page 10: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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CHRW Transportation and Logistics Services

+ Truckload

+ Less Than Truckload (LTL)

+ Intermodal

+ Ocean

+ Air

+ Customs brokerage

+ Consolidation and cross docking

+ Transportation management

Page 11: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Truckload Network

+ Equipment Base+ 1,121,594 dry vans

+ 170,607 refrigerated

+ 143,175 flatbed units

+ Real-time access to truckload capacity across North America

+ Largest truckload network under contract

+ Management of every shipment from pickup to delivery

CHRW Contract Carrier Network Encompasses Businesses of Every Size

Percentage of 2007 CHRW ShipmentsPercentage of 2007 CHRW Shipmentsby Carrier Sizeby Carrier Size

MEDIUM CARRIERS (100-399 TRACTORS)MEDIUM CARRIERS (100-399 TRACTORS)

LARGE CARRIERS (OVER 400 TRACTORS)LARGE CARRIERS (OVER 400 TRACTORS)

SMALL CARRIERS (LESS THAN 100 TRACTORS)SMALL CARRIERS (LESS THAN 100 TRACTORS)

75%12%12%12%13%

Page 12: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Leading Competitors

COMPANY Air Freight Ocean Truck Intermodal Customs

Air Express Intl

Circle Intl

Eagle USA

Expeditors Intl

UPS Supply Chain SolutionsSM (fna: Fritz)

Hub Group

Mark VII

CH Robinson

Page 13: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Competitive Advantages

+ Reduced transportation and administrative costs

+ Access to North America’s largest carrier network

+ The freedom to focus on core business

+ Leading-edge communications

+ Information and technology advantages

+ Global distribution – single source

+ Performance-oriented culture

+ Non-asset-based business model provides greater flexibility

A Strong, Stable Company With A

Century Of Experience

A Strong, Stable Company With A

Century Of Experience

…more than just another

3PL

Page 14: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Culture

+ Driven by the people

+ Majority of the stock is employee owned

+ Promote an atmosphere rich in entrepreneurial spirit

+ Open door policy with management

+ Strong interaction with teams

+ Employee empowerment

+ Business casual work environment

Page 15: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Motivated and Creative Employees

+ Empowered to serve customers

+ Compensation systems support growth and variable cost model

+ Average Tenure of managers is 11 years

+ Training programs for on-boarding and continuous learning

+ Compensation and equity incentives align management with goals of shareholders

Page 16: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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C.H. Robinson employees are:

+ Ambitious – Motivated self-starters who enjoy a fast paced

work environment

+ Innovative – Think ‘outside the box’

+ Big Picture – Acting currently, but always aware of future

impacts

+ Empowered – Ability to solve problems and act on them

confidently

+ Persuasive – Negotiate effectively, overcoming objections

Page 17: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Career Paths

Every day is an opportunity+ We challenge our people to take on new

responsibilities every single day+ Operations+ Customer Service+ Account Management+ Inside/Outside Sales+ Team Lead/Zone Manager+ Expanding modes of transportation within current mix+ National Account Manager+ On site+ Transportation/Branch Manager+ Executive

Page 18: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Compensation

+ Base salary plus six month increase after training

+ 2nd year bonus incentive plan

+ Determined by individual performance and branch goals

+ Reviewed yearly by you and your management team

+ Full-benefits – 1st of the month following 30 days

+ Health, dental, vision, life and disability insurance, flex spending

+ Wealth accumulation

+ 401K match, Employee Stock Purchase program, profit sharing

Page 19: C.H. Robinson Worldwide, Inc. Jan-Sep 2008 Rev 9.21.07

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Discussion Questions