Presented by Rob Jones, Jacobson Companies

1. Click to edit Master title style
Moving Iowa Forward
Fuel Management
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3. Proud History of Expansion
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Over our 43-year history, Jacobson has evolved from a small warehouse-based
company into one of the largest fully integrated logistics providers in the US
1968 2002 1980
2004 1985
2006 1990
2007 1995
2008 2000
2009 2010 2011
1968 Opened 1st warehouse
2002 Opened first LMC outside of Des Moines & renewed focus on growing Carrier services
2004 Acquired by Norwest Equity Partners and management
2005 Acquired Bekins Logistics
2006 Acquired Phoenix-based Southwest Storage & Distribution
2006 Acquired St. Louis-based The Arthur Wells Group
2006 Acquired Atlanta-based Wilpak, Inc
2006 Oak Hill Acquired Arnold Logistics
2007 Acquired by Oak Hill & combined with Arnold Logistics
2008 Acquired Louisville-based Dixie Warehouse Services
2009 Brian Lutt joins as CEO. Restructure organization (CLS/TLS)
2010 Launch International Logistics Services (ILS)
2010 Acquires Global Transportation Services Inc.
2011 January - Establish legal entity Jacobson Global Logistics, Ltd in Hong Kong
2011 January - Acquire Hong Kong based Chimerica Global Logistics, Ltd (CGL)
2011 February – Strategic Partnership formed with European company Rhenus Logistics
2011 August – Acquire Singapore based G-Link Express Logistics
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Jacobson Today
 1st Warehouse operation opened in 1968 Service Profile by Revenue
 Corporate Headquarters – Des Moines, Iowa
 “Top 3” U.S. 3PL Managing 35 Million SF
 197 sites serving over 1,500 customers
 ISO 14001:2004 Certified
Industry Vertical by Revenue
 Asset Light U.S. Domestic Transportation and
Freight Management business
 545+ Tractors and 1,930+ Trailers
 $600 Million in freight under management
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5. End-to-End Supply Chain Solutions
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 Warehousing & Order Fulfillment (Dedicated and Multi-Tenant)
Contract Logistics  Secondary Packaging & Project Management
 Contract Manufacturing
 Reverse Logistics
 Short/Long Term Staffing Solutions
 Facility Network Design & Planning
 Manufacturing Support
 High technology WMS solutions - Tier 1 WMS & ERP
 Full Truck Load Capacity Mgmt
Transportation Logistics  Cross-Dock/Freight Consolidation
 Over–the–Road Solutions
 Dedicated Contract Carriage
 Freight Management
 Mode Optimization
 Freight Bill Audit & Payment
 Transportation Management System (LINCS™)
 Ocean & Airfreight Forwarding
International Logistics  Consolidation at Origin
 Customs House Brokerage
 Deconsolidation & Trans loading
 Sea/Air Programs
 International & Domestic Warehousing, Transportation & Packaging
 Project Cargo Services
 Tracking &Tracing Tools
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6. Jacobson Locations
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Offices
Jacobson/Rhenus
Partners/Agencies
Dedicated Operations
Bulk Dedicated Operations
Dedicated Distribution Ctrs Cross Dock Operations
Multi-Tenant Distribution Ctrs Load Management Centers
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8. Fuel to edit
ClickHistory Master title style
Weekly US Diesel Retail Prices
$5.000
$4.500
$4.000
$3.500
$3.000
$2.500
$2.000
$1.500
$1.000
$0.500
$-
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The Department of Energy projects diesel will average $4.21/gallon this summer, staying above $4.00 into 2013.
Source: U.S. Energy Information Administration
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9. How to edit Master
Clickfar on $500? title style
March, 2012
$4.127/gallon
March, 1999
$0.997/gallon February, 2005
$2.027/gallon
May, 2010
$3.069/gallon
April, 2003
$1.533/gallon
Assuming 6 MPG
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10. Operating Expenses
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2006 2011
Fuel
Fuel
While a fuel surcharge or fuel peg adjustment Unprotected fuel expense
provides some relief, there remains a gap that
$
widens as fuel prices continue to escalate.
$2.00 $2.50 $3.00 $3.50 $3.75 $4.00 $4.25
$/Gallon
Fuel Expense Fuel Recovery
Increased expense continues to be spread across the supply chain.
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12. Immediate and Ongoing
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Purchasing Focus Consumption Focus
 Bulk fuel  Improve MPG
 Price negotiations  Equipment
 Fuel optimizer  Maintenance
 Purchasing discipline (are drivers  Driver
fueling at ‘network’ stops?)  Reduce empty miles
 Purchase timing  Reduce out-of-route miles
 Hedging  Recruit ‘in network’ drivers
 Training
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13. Strategic
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Process & Partnership Alternative Fuel Sources
 Reduce unproductive miles  Natural Gas
(company trucks, owner  Compressed natural gas
operators, partner carriers)  Liquefied natural gas
 Route optimization  Liquefied Petroleum Gas
– Fewer miles
– Continuous move opportunities (Propane)
 Shipment consolidation and  Biodiesel
distribution  Ethanol
– Reduce the amount of ‘air’ being
transported
 Network evaluation
 Getting closer to customers and
suppliers
– Sourcing alternatives
– Mode shift
– Freight terms Source: U.S. Department of Energy
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16. Fuel to edit Master title style
ClickOptimizer
Origin: Des Moines, IA Destination: Los Angeles, CA Miles: 1,775
Fuel Level: 100 gallons Tank Capacity: 240 gallons MPG: 6.2 mpg
Pump Effective Pump Effective
City St Price Cost Gallons City St Price Cost Gallons
DES MOINES IA $3.760 $3.535 140 MILAN NM $3.929 $3.719 0
KEARNEY MO $3.705 $3.535 0 GALLUP NM $3.919 $3.709 0
N KANSAS CITY MO $3.821 $3.651 0 JAMESTOWN NM $3.941 $3.731 0
OTTAWA KS $3.834 $3.574 0 JOSEPH CITY AZ $3.913 $3.653 0
BETO JUNCTION KS $4.019 $3.759 0 WINSLOW AZ $3.924 $3.664 0
EMPORIA KS $3.843 $3.583 0 BELLEMONT AZ $3.903 $3.643 0
HOOKER OK $3.797 $3.667 0 KINGMAN AZ $3.858 $3.598 165
TUCUMCARI NM $3.875 $3.665 69 KINGMAN AZ $3.913 $3.653 0
SANTA ROSA NM $3.946 $3.736 0 LAKE HAVASU CITY AZ $3.930 $3.670 0
MORIARTY NM $3.956 $3.746 0 BARSTOW CA $4.090 $3.743 0
ALBUQUERQUE NM $3.917 $3.707 0 ONTARIO CA $4.051 $3.704 0
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17. Timing Fuel Master title
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Location: Marion, IN Price Change = Tomorrow’s Price – Today’s Price
If Price Change <= ($0.020) then Fuel Tomorrow
Timing: ~ 13:00 CST If Price Change >= $0.020 then Fuel Today
JTLS Price Fuel
Date Price Change Recommendation
12/13/2011 $3.312 ($0.023) Fuel Tomorrow - Prices will be 2.3 cents lower
12/14/2011 $3.289 $0.020 Fuel Today - Prices will be 2.0 cents higher
12/15/2011 $3.309 ($0.082) Fuel Tomorrow - Prices will be 8.2 cents lower
12/16/2011 $3.227 $0.000 N/A
12/17/2011 $3.227 ($0.013) N/A
12/18/2011 $3.215 $0.000 N/A
12/19/2011 $3.215 $0.000 N/A
12/20/2011 $3.215 ($0.061) Fuel Tomorrow - Prices will be 6.1 cents lower
12/21/2011 $3.154 $0.076 Fuel Today - Prices will be 7.6 cents higher
12/22/2011 $3.230 $0.051 Fuel Today - Prices will be 5.1 cents higher
12/23/2011 $3.281
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18. Fuel to edit Master title style
ClickConsumption Example
Annual Miles 30,000,000 Annual Miles 30,000,000
MPG 6.00 MPG 6.10
Gallons 5,000,000 Gallons 4,918,033
Fuel price $4.210 Fuel price $4.210
Raw Fuel Cost $21,050,000 Raw Fuel Cost $20,704,918
Percentage Miles Percentage Miles
OOR 9.50% 2,850,000 OOR 9.00% 2,700,000
Non-OOR 27,150,000 Non-OOR 27,300,000
MT 12.50% 3,393,750 MT 12.00% 3,276,000
Loaded 87.50% 23,756,250 Loaded 88.00% 24,024,000
Fuel Surcharge Rate $0.50 Fuel Surcharge Rate $0.50
Fuel Surcharge Revenue $11,878,125 Fuel Surcharge Revenue $12,012,000
Net Fuel Cost $9,171,875 Net Fuel Cost $8,692,918
Fuel Cost/Mile $0.306 Fuel Cost/Mile $0.290
CO2 Emissions 50,420 metric tons CO2 Emissions 49,593 metric tons
Reduction to net fuel
cost of $479,000
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