c.h. robinson worldwide, inc. jan-sep 2008 rev 9.21.07
TRANSCRIPT
C.H. Robinson Worldwide, Inc.
Jan-Sep 2008
Rev 9.21.07
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Long Term Debt $0.00
0
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'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
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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
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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.
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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
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Core Competencies
Carrier/SupplierRelationships
Business Processes & Technology
PeopleShipper/VendorRelationships
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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
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South American Network
European Network
Asian Network
Overseas Networks
Opened in 2007Singapore
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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
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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
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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%
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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
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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
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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
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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
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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
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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
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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
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Discussion Questions