2. Forward Looking Statements
This presentation contains or may contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act including with respect to revenue earnings per share margins cash flows debt levels
Act, revenue, share, margins, flows, levels,
expenses, capital expenditures, business and financial strategies, management’s plans and objectives for future
performance and the time by which objectives will be achieved, and future economic, industry and market conditions or
performance. Forward-looking statements speak only as of the date they are made, and the company undertakes no
obligation to update or revise any forward-looking statement. All remarks made during our financial results conference
call will be current at the time of the call and we undertake no obligation to update the replay. If the company updates
any forward-looking statement, no inference should be drawn that the company will make additional updates with
respect to that statement or any other forward-looking statements.
These forward-looking statements are based on the company's current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements are general economic and business
conditions; industry trends, including changes in the costs of services from rail, motor, ocean and air transportation
providers; our success in implementing our business, operational and commercial strategies; competitive pressures;
shipping volumes; the loss of one or more of our major customers; and weather related issues and service disruptions
affecting our rail and motor transportation providers. Additional information about these and other factors that could
affect the compan 's b siness is set forth in the compan 's various filings with the Sec rities and E change
company's business company's ario s ith Securities Exchange
Commission, including those set forth in the company's annual report on Form 10-K for the year ended December 31,
2012. Our actual consolidated results of operations and the execution of our business strategy could differ materially
from those expressed in, or implied by, the forward-looking statements contained in this presentation. All forward-
looking statements attributable to us or persons acting on our behalf are expressly qualified by the cautionary
statements in this presentation and in our SEC filings.
2
3. Topics Covered
• Business Overview
– Pacer International Company Overview
– Intermodal Segment
– Logistics Segment
• Financial Update – 4Q 2012
• Summary 2013 Focus
3
5. Pacer International Overview
• Founded in 1997 through the acquisition of several logistics
companies and the APL Linertrain business, which was
renamed Pacer Stacktrain
• Leader in North American Intermodal transportation
• Headquartered near Columbus, OH
• ~ 900 employees in our global operations
p y g p
• Comprehensive transportation and logistics portfolio
• Best-in-class service delivery model
• Publically traded (PACR on NASDAQ)
• Financially sound and well positioned for growth
5
6. Pacer Portfolio
Pacer
Intermodal ($1.2B) Logistics ($0.2B)
• Door to door intermodal
Door-to-door • International freight
International
"Retail" movements provided to forwarding and shipping
beneficial cargo owners
Freight Forwarding (Ocean World Lines & RF
(BCOs) International)
• Transportation primarily for • Warehousing consolidation,
Warehousing, consolidation
Warehouse, Port, &
Automotive Auto OEMs and parts deconsolidation, and
manufacturers Transload Services transloading
• Inland intermodal for • Brokered truck based freight
truck-based
Ocean Carrier
incoming / outgoing ISO Highway Brokerage movements
Services containers for Ocean
Carriers
• Drayage and repositioning • Supply chain management
Drayage services sold externally and Logistics Solutions solutions
to support other lines of
business
6
7. One Pacer Vision
Integrated Transportation Solutions
TRACK & TRACE
WAREHOUSE,
WAREHOUSE WAREHOUSE,
WAREHOUSE Los Angeles Columbus
C l b
CUSTOMS CUSTOMS
Shanghai
RAIL DRAYAGE
HIGHWAY INTERMODAL
OCEAN AIR
Portfolio of Transportation Solutions The Promise
• Multi-mode i t
M lti d international (
ti l (ocean, air)
i) • Long Term Sector Attractiveness
(Intermodal and International)
• Multi-mode domestic (intermodal,
highway) + Overlapping Customer Bases
• Value added services (trans-load,
+ Portfolio Differentiator
warehouse, customs, visibility)
• End-to-end capability for global supply = Profitable Growth
chains
h i
A Differentiated Portfolio of Transportation Solutions
7
9. The Pacer Service Differentiator
Intermodal Service Levels
• Service is the foundation for
Pacer's success 95% 95% 94%
92%
Pacer
• Pacer service starts with railroad
investments in intermodal 72%
66% 67%
capacity 71%
Railroads
• Pacer extends rail service levels
to best in class logistics levels
2Q11 4Q11 2Q12 4Q12
– Rails: 70% on time within 1 day
vs. published schedule
– Pacer: >90% on time within 2 Customer / Industry Accolades
hours vs. customer want 2012 Business Partner of the year"
- Proctor & Gamble
• Service becomes a tool for
account retention and growth 2012 Best Overall Carrier
- Sony Foxconn
9
10. Intermodal Market Development
Market View Our Focus
• Most mature intermodal market • Grow with the market at acceptable
East / West
E t/W t • Modal shift opportunities on West margins
Trans‐con Coast, but growth is dependent on • Optimize network fit
imports and ocean carrier IPI Rates • Leverage bundled Pacer Intermodal and
• Panama Canal expansion not Logistics solutions for inbound transload
expected to have a significant i
t dt h i ifi t impact
t freight
f i ht
• Large modal shift opportunities • Leverage 20+ years and leading position
• Near-sourcing continues
g in cross-border Intermodal
Mexico • Conversion of Auto business to direct
– Auto production expanding …
expect 8% unit growth in 2013 • Crescent corridor with NS / KCS
• Above average market growth • Commodity focused selling
• Heavy rail Intermodal investments • Focused initiatives for Eastern Core
drives rail service improvements lanes and modal conversion
East • Significant modal shift opportunities Directed network selling
• Intermodal rate advantage of 15% Partner with railroads
on average over truckload • Continue expanding non-core lanes as
rail infrastructure and service improves
10
12. Intermodal Mexico Development
Southeast to Mexico Connection
New Mexico to SE Corridor
• New
Ne Intermodal Net ork
Network
between SE / NE and Mexico
• New terminals at:
– Rossville,
Rossville TN (Memphis)
– Birmingham, AL
– Greencastle, PA
(Chambersburg)
• Creates over 30 new
intermodal lanes
• Improves service between
Mexico and the Southeast
– 1 day transit reduction
– Competitive vs. truck
– Expands TMXU and P
E d d Pacer
service
12
13. Intermodal Margin Improvement
• Initiatives in place for all margin elements
• Heaviest focus on those Pacer can best control
Margin % of Ability to
Elements
El t Cost
C t Impact
I t Key Initiatives
K I iti ti
Price ‐ Med • Sales Effectiveness
• Commercial Terms
Rail >50
50 Med • Rail Contracts
Rail Contracts
• Bid Collaboration
Dray 20 – 30 High • Carrier Mix
• Street Efficiency
• Accessorial Management
Accessorial Management
Equipment < 10 Med • Equipment Utilization
Network < 10 High • Network Balance
SG&A < 10 High • "Lean" Processes
• Processing and Decision Support Systems
13
15. Logistics Segment Value Proposition
• Long Term Growth
– Att ti markets long term
Attractive k t l t
Long – Profitable on a stand alone basis
Term
Growth
• Customer B
C t Base
– More touch points for existing
Value customers
Portfolio Customer – E t point for new customers
Entry i t f t
Differentiation Base
• Portfolio Differentiation
– Full range of global door-to-door
transportation solutions
– Connects to Intermodal, Ocean
Carrier,
Carrier and Drayage offerings
15
16. Pacer Logistics Transformation
Intermodal
Logistics
Liquidity
• Debt Agreements (2009, 2010, 2012), Cash Flow, Debt Free (2011+)
Organization and Incentives
• Business Leadership: Commercial, Finance, Capacity, Logistics
• Functional Excellence: Sales, Network, Operations, Capacity, Logistics
• Global presence (China WOFE, China offices, SE Asia)
Customer Service
C t S i
• Logistics (95‐98%, +/‐ 2 hours) mindset
Carrier Relationships
• Ocean Carriers
• Air Carriers
Air Carriers
Systems
• Highway Brokerage
• International Freight Forwarding
SG&A
• Rightsizing
• PProcessing Efficiency
i Effi i
• Volume Leverage
= completed (announced phases) = in process / planned 16
17. Pacer Freight Forwarding Network
Pacer's Ocean World Lines and RF International have global
presence with over 200 employees in more than 20 owned-offices
in Europe, Asia and N. America, and an international network of
top-tier agents worldwide.
USA Europe Asia
Chicago Hamburg Hong Kong
Cincinnati Berlin Ningbo
Houston London Shanghai
g
Long Beach Shenzhen
Miami Qingdao
New Orleans Singapore
New York (HQ) Xiamen
Norfolk
Phoenix
San Francisco
Seattle
Pacer Agent Office
17
18. activities. Pacer Freight Forwarding
China Development
• Pacer History in China
Heilongjiang – Agents in place for years
Jiling
– Hong Kong opened (Aug-09)
Liaoning
– Shanghai opened (Sep-09)
Inner Mongolia
Beijing
– Class B licenses (2011) …
Hebei Tianjin
capability and growth limitations
Shanxi
Shandong
Qingdao
Qinghai
Gansu Ningxia
Shaanxi
• Development Plans (2013+)
Henan Jiangsu
Anhui – Cl
Class A li
licenses (1Q13)
Hubei Shanghai
Sichuan
– Quick build of experienced team
Chongqing Zhejiang Ningbo
Hunan Jiangxi – Full suite of global door-to-door
Guizhou Fujian
transportation solution
p
Yunnan Taiwan
Guangxi Guangdong • Ocean and air freight
Xiamen
• P.O. management
Hong Kong
Hainan Shenzen – Cross sell and tie-in with
domestic Intermodal and
Highway
18
19. Pacer Highway
• Complements Intermodal and Freight Forwarding businesses
• Completes the portfolio of multi-modal transportation solutions
Service Offerings Initiatives
• Truckload • Enhanced IT platform (2012 / 2013)
• LTL – Mercurygate – a proven industry leader
• JIT • Brokerage Sales Model (2012 / 2013)
g ( )
– Historically mixed Intermodal / Highway
• Transactional / Flex – New dedicated Brokerage sales (2012)
• Dedicated • High energy, high incentives culture
• Service recovery
Se ce eco e y • Prove concept, gain traction
p,g
– Scale up (2013)
• 6,000+ carrier relationships • Carrier Development (2012 / 2013)
– Mid-level carriers
– Dedicated fleets
– Mexico presence
19
21. Earnings Per Share
• 4Q12 Diluted EPS of $0.06 (adjusted at $0.08)
– Intermodal margins rebound: +70 bps Y/Y and +120 bps sequentially
g p p q y
• 2012 Diluted EPS of $0.12 (adjusted at $0.14)
– Intermodal domestic growth offsets Logistics segment losses
• 2013 Guidance of $0 25 – $0 35 with both segments improving
$0.25 $0.35
$0.40
$0.40 $0.04
$0.20 $0.14 $0.25 ‐
$0.36 $0.02 $0.35
$0.15
$0.00
$0.12
($0.20)
($ )
($0.60)
($0.40)
($0.60)
2009 2010 2011 2012 2013
2009, 2010 adjusted, as reported in 2011 10K * 2011 adjusted GAAP results of $0.40 for: * 2012 adjusted GAAP results of $0.12 for:
‐ 2011 realignment expense (+$0.3m income / +1 cent EPS) ‐ 2012 realignment expense (+$0.8m income / +2 cents EPS)
‐ 2011 deferred tax adjustment (+$1.2m income / +3 cents EPS)
21
22. Balance Sheet
• 4Q12: remain Debt Free with $20m Cash
– Operating cash flow +$10m and Capital Expenditures of $
p g $ p p $2.1m
• 2012: maintained debt free position
– Operating cash flow +$6.1m and Capital Expenditures of $11.4m
• 2013: maintain debt free position $40-45m cash on hand
position,
$40 Net Debt
$
$30 (Debt) + Cash
$40.0 ‐
$
$20 $45.0
$10 $24.0 $20.2
$0
($ )
($9.2)
($10) ($20.2)
($20) ($39.0)
($30)
($40)
($50)
2008 2009 2010 2011 2012 2013
22
23. Our Focus
• Continue Double-Digit Domestic Intermodal Growth
– Eastern and Mexico market profitable growth
– Focus on truck conversion
• Transform Logistics Segment for Profitable Growth
– New organization, incentives, product offerings
– Contributes on a stand alone basis and complements Intermodal
• Retain a Competitive Cost Structure
– Drayage capacity/efficiency: optimized mix (76% in-house now)
– Network optimization, equipment utilization, empty miles
– SG&A scaling
• Enhance Pacer’s Core: People, Processes, and Technologies
– Intermodal drayage, retail, and decision support systems
– Highway brokerage organization model and operating system
– International organization model and systems
23
24. Our Vision
To be the customers’ preferred choice,
earning customer confidence every day by
reliably delivering best-in-class door-to-door
transportation services and logistics
p g
solutions.
24
25. Investor Contacts
John Hafferty
EVP and Chief Financial Officer
(614) 923-1987
Steve Markosky
VP, Financial Planning & Analysis and
Investor Relations
(614) 923-1703
25
