feb 20, 2019 investor presentation€¦ · feb 20, 2019 investor presentation. except for the...

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

FEB 20, 2019

INVESTOR PRESENTATION

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

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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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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(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

7

$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

$1,200

$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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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 L Y

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 L Y

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 L Y

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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• 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


C U S T O M E R B E N E F I T S

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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 # 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

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CUSTOMER RATE PER LOAD (ALL CARRIERS)

C.H. ROBINSON RATE PER LOAD (50th PERCENTILE)

L A R G E C P G C A R R I E R R AT E S F O R S I N G L E L A N E

• 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

RA

TE

CUSTOMER RATES ABOVE C.H. ROBINSON

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

• Navisphere Vision provides

shippers proactive alerts on

shipment delays & potential

disruptions

• Result: Better planning and

more proactive decision

making to mitigate delays

Origin

Wilmington,

NC, US

DELAYED SHIPMENT ALERT

Destination

Miami,

FL, US

Truck Load #

286961960

Probability of Delay 90%

VIEW DETAILS

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• 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

C A R R I E R B E N E F I T S

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FOR OUR CARRIERS



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

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• 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

U N P L A N N E D C A R R I E R R O U T I N G :

T R A N S A C T I O N A L & I N E F F I C I E N TO 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 TA B I L I T Y

$

$

OPTION 1

$

$

$

$

$

$

$

OPTION 2

$$

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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 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

PREVIOUS TOTAL SHIPMENTS VS. NEW TOTAL SHIPMENTS

C.H. ROBINSON STARTS PROVIDING PRICING GUIDANCE

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• 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

E M P L O Y E E B E N E F I T S

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AND GREATER EFFICIENCY FOR EMPLOYEES



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

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• Tools provide a real

time information

advantage that

enables employees

to maximize

profitability and drive

higher volumes

Dry Van, 2 Stops 716 miles

Real Time Rate $1,050

Predicted Cost $910 - 980

Projected Profitability $70 - 140

Likelihood of Coverage 80%

EQUIPPING EMPLOYEES WITH PREDICTIVE PRICE AND COST MODELS

TO MAXIMIZE PROFITABILITY

CHICAGO TO ATLANTA ROUTE


Continued focus on taking market share

Automation of core processes

Improved operating leverage

WHAT YOU SHOULD EXPECT

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