©2017 XPO Logistics , Inc. Presentation SAM_TRANS...we’ve proven that rich data and industry expertise ... ©2017 XPO Logistics, Inc. 6 why xpo Our customers continue to grow with

©2017 XPO Logistics, Inc.

2©2017 XPO Logistics, Inc.

a g e n d a03 | Why XPO

TRANSPORTATION09 | Less-Than-Truckload

13 | Full Truckload

17 | Intermodal and Drayage

21 | Expedite

25 | Global Forwarding

29 | Last Mile

SUPPLY CHAIN34 | Contract Logistics

39 | Managed Transportation

APPENDICES43 | Customers

46 | BusinessProfile

48 | Culture

50 | Sustainability


O v e r v i e w

w h y x p oOur highly integrated network delivers customized supply chain solutions to the most successful companies in the world.

■ LESS-THAN-TRUCKLOAD

■ FULL TRUCKLOAD

■ INTERMODAL AND DRAYAGE

■ EXPEDITE

■ GLOBAL FORWARDING

■ LAST MILE

■ SUPPLY CHAIN LOGISTICS

■ MANAGED TRANSPORTATION


O v e r v i e w

w h y x p o

89,000employees

1,431locations

34countries

50,000customers

Companies choose XPO because we have the global scale to manage and transport their goods anywhere in the world.


W h y X P OO v e r v i e w

■ Largest last mile logistics provider for heavy goods in North America

■ Largest manager of expedited shipments in North America

■ Second largest contract logistics provider worldwide based on facility space, with the largest outsourced e-fulfillment platform in Europe

■ Second largest provider of less-than-truckload transportation in North America, and a leading LTL provider in Western Europe

■ Second largest freight broker worldwide, with a leading road fleet in Europe

■ Third largest provider of intermodal and drayage services in North America

Customers rely on XPO because of our experience. With leadership positions across the supply chain, we’ve proven that rich data and industry expertise give our customers a competitive advantage.


w h y x p oOur customers continue to grow with us because of our technology. It’s what fuels our global network—creating efficiency and visibility, and powering innovation in automation and customization.

We invest approximately $425 million a year in technology.

O v e r v i e w


w h y x p oUnified by a single, unwavering principle:

Accountability is in our DNA. Passion drives our people

to deliver for our customers.

O v e r v i e w

TRANSPORTATION


LESS-THAN-TRUCKLOADThe leader in on-time pickup and delivery, damage-free

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L e s s - T h a n - T r u c k l o a d

Over 400 LTL locations in North America

■ Service to approximately 99% of U.S. zip codes


e x p e r i e n c eRanked #1 for on-time and damage-free performance.

■ Fastest transit times in the industry

■ More next day and 2 day lanes than any other LTL carrier in North America

■ Business intelligence reporting and custom analytics drive continuous improvement

■ A leader in Western Europe in LTL (palletized) service

■ Over 30 years of experience

MAJOR CAPACITY Approximately 16,000 tractors and 39,000 trailers in North America

Safe, modern line-haul fleet

DAMAGE PREVENTION Proprietary, heavy-duty decking system

Safety-alert technology installed in fleet

RELIABLE 13,000 uniformed, professional drivers

IT-enabled dock operations

Customer Care team dedicated to your business



t ec h n o lo gy

■ Pre-populates information and templates for frequently used items

■ Reports on the up-to-the- minute status of shipments and manifests

■ Quotes rates on demand based on your pricing agreement

■ Tracks intuitively, with predictive search capabilities

LTL.xpo.com is a personal suite of shipping management tools and resources.


for ease-of-use as ranked by LTL shippers in North America#

full truckloadMassive capacity managed with cutting-edge technology


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F u l l T r u c k l o a d

Our robust capacity mix ensures optimal equipment and price.

■ Brokerage network of over 38,000 carriers with more than a million trucks in North America

■ Dry vans, refrigerated, specialized and permitted flatbeds, and dropdecks

■ Constant influx of big data on lanes, pricing, carrier ratings and market conditions

■ Fierce commitment to execution and follow-through

■ Single point of accountability


■ FINISHED GOODS OF ALL TYPES

■ RAW MATERIALS AND PARTS

■ TEMPERATURE-CONTROLLED

■ HIGH VALUE AND HIGH SECURITY

■ HEAVY HAUL AND OVERSIZED

■ SINGLE-SOURCE MULTINATIONAL

e x p e r i e n c eF u l l T r u c k l o a d


t ec h n o lo gyFreight Optimizer combines the best in technology with the best in customer service.

Powerful tools source the optimal capacity for each load by analyzing data from multiple sources, weighted by cost and performance.

F u l l T r u c k l o a d

INTERMODAL AND DRAYAGELarge, owned container capacity and national drayage network for seamless solutions


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I n t e r m o d a l a n d D r a y a g e

A top three intermodal provider in North America.

■ Approximately 9,500 53-ft. boxes and 8,000 chassis exclusively controlled by XPO, and access to small box capacity

■ Leading U.S. drayage capacity of 2,200 contracted independent owner-operators

■ HazMat or tank certifications held by majority of contractors

■ Access to over 25,000 additional drayage trucks

■ Network of over 40 terminals serving every major U.S. rail ramp and port

■ Large Mexico-based chassis fleet and ramp personnel

■ Cross-docking and transloading


E X P E R I E N C EWe analyze our customers’ shipping patterns and identify savings opportunities.

■ National rail ramp drayage network

■ TWIC-compliant port drayage

■ Ocean drayage management services

■ Certified HazMat handling of freight

■ Safety-conscious contract carriers

■ A focus on visibility, follow-through and communication

■ Over 30 years of experience in Mexico

INTERMODAL SERVICE LOCATIONS

DRAYAGE U.S. SERVICE AREAS

Kansas City



t ec h n o lo gyProprietary Rail Optimizer intermodal management system is driving best-ever on-time performance.

■ Tracks door-to-door movements of long haul freight with GPS on containers

■ Secures 53-ft. container, small box and drayage capacities

■ Communicates constantly with railroads to proactively identify any delays

■ Fosters driver communication during drayage legs

■ Keeps shippers informed through EDI integration and an online, self-service portal


expediteTime-critical deadlines met by ground, air and automated TMS


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E x p e d i t e

GROUND TRANSPORTATION ■ Extensive North American

network of independent owner-operators with capacities from 1 to 44,000 lbs.

■ Optimal equipment: cargo vans, sprinters, straight trucks, tractor-trailers, lift gate, temperature-controlled

■ Special handling includes blankets, straps and pads, thermal mapping, debris removal and more

AIR CHARTER ■ Proprietary online bid system

collects competitive bids in a transparent manner

■ Immediate access to quick-launch carriers, project cargo carriers and AN-124 operators

■ Air and ground combinations for door-to-door service

■ Air freight services available manager of expedited shipments in North America#


e x p e r i e n c eOVER 30 YEARS OF EXPERIENCE■ Rapid, reliable response

minimizes supply chain and production disruptions

■ Experienced owner-operators understand the urgent nature of expedite

■ Disciplined processes for high-value, high-security goods

■ Ability to pivot quickly between modes as part of XPO’s integrated service range

CROSS-BORDER NETWORK ■ Expedited movements in and

out of Mexico and Canada

■ Urgent service to eight Mexican airports and on to 18 cities

■ Intra-Mexico capabilities and seasoned organization

■ Bilingual cross-border specialists

E x p e d i t e


T ec h n o lo gy

The entire expedite experience is rapid, disciplined and transparent.

XPO’s expedite capabilities include the largest web-based TMS for urgent load tendering in North America.

■ Over 700 qualified carriers can potentially bid on your load

■ Over 95% of shipments are sourced in 24 minutes or less

■ Loads are self-posted via automated or manual order entry

■ Requirements are broadcast to carriers within minutes of receipt

■ Loads are assigned electronically based on competitive carrier bids

■ Automated GPS and cellular track and trace, proof of delivery, invoicing and reporting

E x p e d i t e

GLOBAL FORWARDINGShipments of any size, shape or weight, anywhere in the world

©2017 XPO Logistics, Inc. CONFIDENTIAL AND PROPRIETARY MATERIAL ©2017 XPO Logistics, Inc. 25

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G l o b a l F o r w a r d i n g

Our global footprint comes with local expertise in more than 15 countries.

Annually, we facilitate:

■ Over 86,000 customs entries

■ Over 157,000 TEUs of ocean freight

■ Over 220,000 shipments worldwide including 44,000 in the U.S.


e x p e r i e n c e

We have the expertise to guide your freight through the regulatory processes and custom points at thousands of destinations in Asia, Europe and the United Kingdom.



t ec h n o lo gy

Our technology has eyes on the world, giving you shipper information, weight, tonnage, consignee, number of SKUs, transit time and real-time location status.


last mileIndustry-leading consumer satisfaction for superior brand protection

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L a s t M i l e

We facilitate more than 12 million home deliveries and installations annually.

■ 45 market delivery centers with service across the U.S.

■ Over 500,000 installations and assemblies a year

■ 35,000 thresholds crossed every day

■ Professional deliveries to homes, businesses and new construction sites

■ Pickup and delivery service in over 500 markets in North America

■ Seven times larger than our nearest competitor

■ European service available in select countries # last mile logistics provider for

heavy goods in North America


e x p e r i e n c eIndustry-leading track record for consumer satisfaction with retail and e-commerce deliveries.

■ Cutting-edge mobile technology ensures process consistency

■ Code compliances rigorously maintained and documented

■ Online order entries, street-level geocoding and UPC label creation

■ Pre-delivery inspection, with expert touch-up and repair as needed

■ Shipment optimization, route-building and delivery scheduling

■ Installer network includes licensed master plumbers and electricians

L a s t M i l e


t ec h n o lo gyProprietary, customer-centric technology is developed exclusively for the last mile logistics of heavy goods.

■ Highly flexible and customizable

■ Powerful feedback loop identifies issues for quick resolution

■ Proactive exception reporting within one hour or less

■ Automated notifications of appointments and deliveries

■ GPS tracking with live ETA updates and PODs

L a s t M i l e

S u p p ly C h a i n


contract logist icsCustomized solutions designed to give customers a competitive advantage



s c a l eC o n t r a c t L o g i s t i c s

■ $85 billion in goods distributed across a broad range of industries

■ 160 million square feet of logistics facility space globally; 86 million in North America

■ Skilled workforce of approximately 50,000 globally; 25,000 in North America

■ Global footprint ensures consistent service for our multinational customers

■ Use of automation, robotics and other technical advances

■ Flexible solutions for seasonal volumes

■ Ability to add sites quickly in any market

750+Global Supply Chain Locations

Second largest contract logistics provider worldwide based on facility space, with the largest outsourced e-fulfillment platform in Europe.


C o n t r a c t L o g i s t i c s

e x p e r i e n c eWe collaborate with industry-leading companies to create customized solutions that deliver results.

■ Industry vertical expertise

■ Operational excellence

■ Long-term relationships

■ TECHNOLOGY Precise fulfillment, easy returns and repairs

■ OMNI-CHANNEL RETAIL Retail and e-commerce solutions, brand protection

■ FOOD AND BEVERAGE High-value-add services, all temperature ranges

■ AEROSPACE AND GOVERNMENT Highly engineered, critical supply chain solutions

■ CONSUMER PACKAGED GOODS Turnkey solutions, integrated packaging

■ CHEMICAL Safe, secure processes, environmentally sound

■ OIL AND GAS Upstream, midstream and downstream

■ AUTOMOTIVE AND INDUSTRIAL Global best practices, cutting-edge technology

■ AGRIBUSINESS Innovative storage, handling and distribution

■ HEALTHCARE Time-critical agility, consistently responsive


Our industry-leading technology solutions are designed and implemented to optimize your specific supply chain.

■ Secure, private cloud hosting

■ Real-time visibility of transactions, order status, and inventory

■ Rapid integration to leading ERP Systems

■ Proprietary management systems for warehousing, order processing and transportation

■ Highly scalable solutions

■ Our technology tracks more than five billion inventory units a day

■ ISO 20000 and ISO/IEC 27001 certified

t ec h n o lo gyC o n t r a c t L o g i s t i c s


■ Real-time inventory and transaction visibility

■ Singular integration for all supply chain solutions, including warehousing and transportation

■ Highly configurable, rules-based engine enables customer-specific business decisions

■ Integrated to all supply chain applications

■ Alerts focused on addressing supply chain exceptions and improving customer service

■ Quick, easy search capabilities with data extraction and download

■ Role-based security

■ Validated by auditing authorities to satisfy general computing practices and SSAE-16

t ec h n o lo gyC o n t r a c t L o g i s t i c s

MANAGED TRANSPORTATIONCustomized transportation solutions that decrease costs and increase efficiencies



M a n a g e d T r a n s p o r t a t i o n

scale and experienceLeverage our technology, expertise and buying power to manage your freight expense.

Customers trust us with approximately $2.7 billion of freight under management.

SCALE Access to market intelligence and buying power

OPTIMIZATION Proprietary technology that integrates with thousands of carriers

RELIABILITY 24/7 mission-critical control tower and expertise


t ec h n o lo gyFully customizable services that enhance flexibility and provide you with constant visibility and control.

■ TMS data sharing

■ Customized dashboards

■ Secure online portals

■ KPI performance scorecards

■ Door-to-door online visibility

■ Freight spend analysis

■ Shipping pattern analysis

■ Robust reporting, scheduled and on-demand

■ ISO9001, ISO14001 and Lean certified

M a n a g e d T r a n s p o r t a t i o n

APPENDICES


C u s t o m e r sA p p e n d i x

Retail and E-Commerce

©2017 XPO Logistics, Inc. Any trademarks or logos used in this presentation are the property of their respective owners.

Industrial and Manufacturing



Food and Beverage




B u s i n es s P r o f i l eXPO is a top ten global logistics company. 2016 Revenue of $14.6 billion

High-value-add services and engineered solutions

Freight moved using the most efficient and cost-effective mode

■ Omni-Channel and E-Commerce Fulfillment

■ Reverse Logistics

■ Technology-Enabled Managed Transportation

■ High-Value-Add Warehousing and Distribution

■ Supply Chain Optimization

■ Truckload Transport and Brokerage, Expedite

■ Less-Than-Truckload

■ Intermodal and Drayage

■ Global Forwarding

■ Last Mile

37% of revenue 63% of revenue

Our highly integrated network of people, technology, assets and expertise helps our customers manage their goods more efficiently throughout their supply chains.

A p p e n d i x


Full-year 2016 highlights

■ $14.6 billion of gross revenue

■ $84.5 million of net income

■ $625.4 million of cash flow from operations

Named Fortune 500’s fastest-growing company

Ranked by Forbes as #17 among innovative growth companies and #263 among best employers

B u s i n es s P r o f i l eA p p e n d i x


Our values drive our people. Our people drive our business.

As a global leader in our industry, we have a responsibility to set an example that is beyond reproach. Our XPO values are the heart of our culture.

They are the reasons why our customers and investors believe in us.

c u lt u r eA p p e n d i x

■ T r u s t w o r t h y

■ R e s p o n s i v e

■ U n i t e d

■ C o m m i t t e d

■ E n t r e p r e n e u r i a l

■ S a f e t y - F o c u s e d


XPO is committed to safe practices throughout our global operations.

The disciplines, certifications and insurances we have in place are the framework of our comprehensive safety infrastructure.

■ A culture that engages our employees in proactive safety awareness as a way of doing business

■ Proprietary management software and rigorous disciplines for health and safety functions and regulatory compliance

■ Automated monitoring of carrier safety ratings, insurance qualifications and operating authorities in real-time

■ Corporate and local safety professionals stationed in all of our operating regions to encourage a zero-incident mindset

■ Company programs that reduce cargo damage, improve cargo security and enhance worker safety

■ Customizable theft mitigation programs and root cause damage analyses

■ Professional training for customer dock workers, drivers and our owner-operators

c u lt u r eA p p e n d i x


As a leader in sustainability, we use our initiative and innovation to reduce environmental impact.

The range of supply chain solutions we offer presents numerous opportunities to help our customers achieve their green objectives.

■ XPO owns the largest natural gas truck fleet in Europe and will lower the carbon footprint of trucking in Paris by using natural gas trucks for the road transport portion of France’s first intermodal urban rail shuttle (2017)

■ Launched government-approved mega-trucks in Spain, expected to reduce CO2 emissions by over 25% (2016)

■ Named a Top 75 Green Supply Chain Partner by Inbound Logistics (2016)

■ Committed to a 6% CO2 reduction in 2018 vs. 2016 via the COÇ charter; and awarded the label “Objectif CO2” for outstanding environmental performance of transport operations in Europe by the French Ministry of the Environment and the French Environment and Energy Agency (2016)

■ Honored for excellence in environmental improvement by SmartWay (2015)

■ ISO14001-certified logistics facilities ensure environmental compliance

S u s ta i n a b i l i t yA p p e n d i x

©2017 XPO Logistics , Inc. Presentation SAM_TRANS...we’ve proven that rich data and industry expertise ... ©2017 XPO Logistics, Inc. 6 why xpo Our customers continue to grow with

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