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Investor Presentation | Through Q4 2017
This presentation includes forward-looking statements which are subject to risk and uncertainties
that could cause actual results to differ materially, including changes in market demand and
pressures on the pricing for our services, freight levels and increasing costs and availability of
trucking and other transportation alternatives, our ability to integrate the operations of acquired
businesses and those risks and uncertainties detailed in our most recently filed Annual Report on
Form 10-K and Quarterly Report on Form 10-Q.
We have included herein certain non-GAAP financial information, including certain fiscal 2012
information adjusted to reflect an acquisition and a divestiture that occurred during 2012.
Reconciliations of such non-GAAP information to actual results are available in our press release
dated February 5, 2013 furnished as an exhibit to our Form 8-K filing of the same date.
SAFE HARBOR STATEMENT
Our people, processes, and
technology set us apart
113 years of innovation and
still shaping the future
Global services company with
over 15,000 employees across
38 countries on 5 continents
$14.9BTOTAL GROSS
REVENUE
WHO WE ARE
#212ON
FORTUNE
500
OVER
120K
CUSTOMERS
73KCARRIERS
AND SUPPLIERS
ACTIVE IN 2017
INBOUND LOGISTICS
A TOP 3PL
1998 – 2017
WHAT WE DO FOR OUR CUSTOMERS
WE CREATE TRANSPORTATION AND SUPPLY CHAIN ADVANTAGES
DRIVE
IMPROVE
MITIGATE
MANAGE
21%
15%
15%14%
12%
6%
5%
5%
Percentage of 2017
Customer Gross Revenues
Food & Beverage
Manufacturing
Retail
Auto / Industrial
Chemicals
Paper / Packaging
Professional Services
Technology
Healthcare
Energy / Utilities
Transport
Government / Education
120K
OVER
CUSTOMERS
Top 25
12%
WE DELIVER AN AVERAGE OF
3 SERVICES PER TOP 500 CUSTOMER
Diversified Customer Portfolio
Top 100
23%
Top 500
43%
EXTENSIVE INTERMODAL COVERAGE WITH
DIRECT ACCESS TO ALL
CLASS 1 NORTH AMERICAN RAILROADS
TOP 10 NVOCC WITHIN THE
GLOBAL OCEAN CARRIER PORTFOLIO
20 CORE AIR CARRIERS MOVE 72% OF
OUR VOLUME
ROBINSON FRESH
MORE THAN 1,600 GROWERS AND
118 MILLION CASES OF FRESH PRODUCE
SOLD ANNUALLY
LARGEST CONTRACTED POOL OF MOTOR CAPACITY IN
NORTH AMERICA WITH ACCESS TO MORE THAN
ONE MILLION PIECES OF EQUIPMENT
82%
10%
8%
Motor Carrier Relationships
Percentage of 2017 TL Shipments by Carrier Size
Small Carriers
(<100 Trucks)
Medium Carriers
(100-400 Trucks)
Large Carriers
(>400 Trucks)
CAPACITY RELATIONSHIPS WITH OVER
100 LTL CARRIERS
HOW WE DO IT
TECHNOLOGYPROCESSPEOPLE
15,074
employees
OVER 70% of
shipments are tendered
to us electronically
45 MILLION digital
transactions per month
Case Study:
Blue Ridge Project
Solutions
• Saved 15% on
transportation costs
• Cut transit time by
three days
Average Tenure
Employees: 6 years
Leadership: 15 years
NAST (North American Surface Transportation)
NET REVENUES
(2)
:
OPERATING INCOME
(2)
:
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2017 results.
(3) Average headcount in Q4 2017.
EMPLOYEES
(3)
:
TOTAL REVENUES
(1)(2)
:
Largest LTL 3PL
Truckload
Less Than Truckload /
Consolidation
Intermodal
69%
% OF NAST
NET REVENUE
(2)
25%
2%
Most powerful truckload network in North America
Direct programs on all Class 1 railroads
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2017. Includes results from APC Logistics, acquired on September 30, 2016, as well as Milgram & Company, acquired on August 31, 2017.
(3) Average headcount in Q4 2017.
GLOBAL FORWARDING
NET REVENUES
(2)
:
OPERATING INCOME
(2)
:
EMPLOYEES
(3)
:
TOTAL REVENUES
(1)(2)
:
Ocean
Air
Customs
59%
% OF GF
NET REVENUE
(2)
19%
14%
#1 NVOCC from China to U.S.
175,000 metric tonnes moved in 2017
Leading North America & Oceania customs house
broker with 1.4M+ entries
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2017 results.
(3) Average headcount in Q4 2017.
ROBINSON FRESH
NET REVENUES
(2)
:
OPERATING INCOME
(2)
:
EMPLOYEES
(3)
:
TOTAL REVENUES
(1)(2)
: Sourcing
Transportation
54%
% OF RF
NET REVENUE
(2)
46%
Largest provider of fresh produce in North America with
100 million pounds of fruits and vegetables sourced weekly
2,000 shipments daily
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2017 results. All Other includes results from Managed Services, Other Surface Transportation outside of North America, and other miscellaneous operations.
(3) Average headcount in Q4 2017. Headcount includes personnel from shared services, Managed Services, Other Surface Transportation, and other miscellaneous operations.
ALL OTHER
NET REVENUES
(2)
:
EMPLOYEES
(3)
:
TOTAL REVENUES
(1)(2)
: Managed Services
Other Surface Trans.
55%
% OF ALL OTHER
NET REVENUE
(2)
45%
Over $3.5 billion in freight under management
Primarily surface transportation in Europe
NAVISPHERE – OUR SINGLE GLOBAL PLATFORM
GLOBAL TMS
AN ECOSYSTEM CONNECTS
EMPLOYEES, CUSTOMERS,
AND SUPPLIERS FOR TRADE
VISIBILITY TO EVERY
SHIPMENT IN REAL
TIME
6 MILLION
web and mobile
interactions
MONTHLY
with customers
& carriers
Over 70% of primary
means of customer
interaction is
AUTOMATED
Over 45% of
shipments powered by
Navisphere are fully
AUTOMATED
EMPOWERING DIGITAL SUPPLY CHAINS
200K+
organizations
CONNECTED
to our system
WHY C.H. ROBINSON?
OUR PEOPLE MAKE A DIFFERENCE
WE FOCUS ON SOLUTIONS, NOT ASSETS
NAVISPHERE® CONNECTS THE WORLD
BEST IN CLASS FINANCIAL RETURNS
2017 PERFORMANCE
NET REVENUE 4.0%
INCOME FROM
OPERATIONS (7.5%)
NET INCOME (1.7%)
DILUTED EPS (1.1%)
% GROWTH
FY 2016
$2,277.5
$2,368.1
$837.5
$775.1
$513.4
$504.9
$3.59
$3.57
FY 2017
NAST
TRUCKLOAD
VOLUME
NAST
LTL
VOLUME
NAST
INTERMODAL
VOLUME
GLOBAL
FORWARDING
CUSTOMS VOLUME
ROBINSON FRESH
TRUCKLOAD
VOLUME
GLOBAL
FORWARDING
OCEAN VOLUME
GLOBAL
FORWARDING
AIR VOLUME
YTD 2017 HIGHLIGHTS
SIGNIFICANT MARKET SHARE GAINS IN NEARLY ALL SERVICES
NAST 4.1%
2014 – 2017 CAGR ANNUAL GROWTH TARGET (1)
5 – 10%
GLOBAL
FORWARDING 11.5% 10%+
ROBINSON FRESH 3.6% 4 – 8%
OTHER (2)
8.7% 10%+
NET REVENUE
Enterprise Growth Targets (1)
OPERATING INCOME: Equal to or greater than net revenue growth
EPS: 10%+
(1) Long-term growth targets represent an over time perspective and do not necessarily represent an expected annual growth rate.
(2) Other includes Managed Services, European Surface Transportation, and all other services.
LONG-TERM GROWTH TARGETS
NET REVENUE
6.6% 10-YEAR CAGR
(IN MILLIONS)
INCOME FROM OPERATIONS
4.3% 10-YEAR CAGR
(IN MILLIONS)
DILUTED EPS FROM CONTINUING OPERATIONS
6.7% 10-YEAR CAGR
(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.
$2,368
$3.57
$775
$5,628
$500
$1,000
$1,500
$2,000
$2,500
07 08 09 10 11 12 13 14 15 16 17
$0
$200
$400
$600
$800
$1,000
07 08 09 10 11 12 13 14 15 16 17
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
$1.00
$2.00
$3.00
$4.00
07 08 09 10 11 12 13 14 15 16 17
CAPITAL RETURNED TO SHAREHOLDERS
22.0% CAGR SINCE IPO
(IN MILLIONS)

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CHRW Q4 2017 Investor Presentation

  • 1. Investor Presentation | Through Q4 2017
  • 2. This presentation includes forward-looking statements which are subject to risk and uncertainties that could cause actual results to differ materially, including changes in market demand and pressures on the pricing for our services, freight levels and increasing costs and availability of trucking and other transportation alternatives, our ability to integrate the operations of acquired businesses and those risks and uncertainties detailed in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We have included herein certain non-GAAP financial information, including certain fiscal 2012 information adjusted to reflect an acquisition and a divestiture that occurred during 2012. Reconciliations of such non-GAAP information to actual results are available in our press release dated February 5, 2013 furnished as an exhibit to our Form 8-K filing of the same date. SAFE HARBOR STATEMENT
  • 3. Our people, processes, and technology set us apart 113 years of innovation and still shaping the future Global services company with over 15,000 employees across 38 countries on 5 continents $14.9BTOTAL GROSS REVENUE WHO WE ARE #212ON FORTUNE 500 OVER 120K CUSTOMERS 73KCARRIERS AND SUPPLIERS ACTIVE IN 2017 INBOUND LOGISTICS A TOP 3PL 1998 – 2017
  • 4. WHAT WE DO FOR OUR CUSTOMERS WE CREATE TRANSPORTATION AND SUPPLY CHAIN ADVANTAGES DRIVE IMPROVE MITIGATE MANAGE
  • 5. 21% 15% 15%14% 12% 6% 5% 5% Percentage of 2017 Customer Gross Revenues Food & Beverage Manufacturing Retail Auto / Industrial Chemicals Paper / Packaging Professional Services Technology Healthcare Energy / Utilities Transport Government / Education 120K OVER CUSTOMERS Top 25 12% WE DELIVER AN AVERAGE OF 3 SERVICES PER TOP 500 CUSTOMER Diversified Customer Portfolio Top 100 23% Top 500 43%
  • 6. EXTENSIVE INTERMODAL COVERAGE WITH DIRECT ACCESS TO ALL CLASS 1 NORTH AMERICAN RAILROADS TOP 10 NVOCC WITHIN THE GLOBAL OCEAN CARRIER PORTFOLIO 20 CORE AIR CARRIERS MOVE 72% OF OUR VOLUME ROBINSON FRESH MORE THAN 1,600 GROWERS AND 118 MILLION CASES OF FRESH PRODUCE SOLD ANNUALLY LARGEST CONTRACTED POOL OF MOTOR CAPACITY IN NORTH AMERICA WITH ACCESS TO MORE THAN ONE MILLION PIECES OF EQUIPMENT 82% 10% 8% Motor Carrier Relationships Percentage of 2017 TL Shipments by Carrier Size Small Carriers (<100 Trucks) Medium Carriers (100-400 Trucks) Large Carriers (>400 Trucks) CAPACITY RELATIONSHIPS WITH OVER 100 LTL CARRIERS
  • 7. HOW WE DO IT TECHNOLOGYPROCESSPEOPLE 15,074 employees OVER 70% of shipments are tendered to us electronically 45 MILLION digital transactions per month Case Study: Blue Ridge Project Solutions • Saved 15% on transportation costs • Cut transit time by three days Average Tenure Employees: 6 years Leadership: 15 years
  • 8. NAST (North American Surface Transportation) NET REVENUES (2) : OPERATING INCOME (2) : (1) Total revenues do not include intersegment revenues. (2) Represents FY 2017 results. (3) Average headcount in Q4 2017. EMPLOYEES (3) : TOTAL REVENUES (1)(2) : Largest LTL 3PL Truckload Less Than Truckload / Consolidation Intermodal 69% % OF NAST NET REVENUE (2) 25% 2% Most powerful truckload network in North America Direct programs on all Class 1 railroads
  • 9. (1) Total revenues do not include intersegment revenues. (2) Represents FY 2017. Includes results from APC Logistics, acquired on September 30, 2016, as well as Milgram & Company, acquired on August 31, 2017. (3) Average headcount in Q4 2017. GLOBAL FORWARDING NET REVENUES (2) : OPERATING INCOME (2) : EMPLOYEES (3) : TOTAL REVENUES (1)(2) : Ocean Air Customs 59% % OF GF NET REVENUE (2) 19% 14% #1 NVOCC from China to U.S. 175,000 metric tonnes moved in 2017 Leading North America & Oceania customs house broker with 1.4M+ entries
  • 10. (1) Total revenues do not include intersegment revenues. (2) Represents FY 2017 results. (3) Average headcount in Q4 2017. ROBINSON FRESH NET REVENUES (2) : OPERATING INCOME (2) : EMPLOYEES (3) : TOTAL REVENUES (1)(2) : Sourcing Transportation 54% % OF RF NET REVENUE (2) 46% Largest provider of fresh produce in North America with 100 million pounds of fruits and vegetables sourced weekly 2,000 shipments daily
  • 11. (1) Total revenues do not include intersegment revenues. (2) Represents FY 2017 results. All Other includes results from Managed Services, Other Surface Transportation outside of North America, and other miscellaneous operations. (3) Average headcount in Q4 2017. Headcount includes personnel from shared services, Managed Services, Other Surface Transportation, and other miscellaneous operations. ALL OTHER NET REVENUES (2) : EMPLOYEES (3) : TOTAL REVENUES (1)(2) : Managed Services Other Surface Trans. 55% % OF ALL OTHER NET REVENUE (2) 45% Over $3.5 billion in freight under management Primarily surface transportation in Europe
  • 12. NAVISPHERE – OUR SINGLE GLOBAL PLATFORM GLOBAL TMS AN ECOSYSTEM CONNECTS EMPLOYEES, CUSTOMERS, AND SUPPLIERS FOR TRADE VISIBILITY TO EVERY SHIPMENT IN REAL TIME 6 MILLION web and mobile interactions MONTHLY with customers & carriers Over 70% of primary means of customer interaction is AUTOMATED Over 45% of shipments powered by Navisphere are fully AUTOMATED EMPOWERING DIGITAL SUPPLY CHAINS 200K+ organizations CONNECTED to our system
  • 13. WHY C.H. ROBINSON? OUR PEOPLE MAKE A DIFFERENCE WE FOCUS ON SOLUTIONS, NOT ASSETS NAVISPHERE® CONNECTS THE WORLD BEST IN CLASS FINANCIAL RETURNS
  • 14. 2017 PERFORMANCE NET REVENUE 4.0% INCOME FROM OPERATIONS (7.5%) NET INCOME (1.7%) DILUTED EPS (1.1%) % GROWTH FY 2016 $2,277.5 $2,368.1 $837.5 $775.1 $513.4 $504.9 $3.59 $3.57 FY 2017
  • 15. NAST TRUCKLOAD VOLUME NAST LTL VOLUME NAST INTERMODAL VOLUME GLOBAL FORWARDING CUSTOMS VOLUME ROBINSON FRESH TRUCKLOAD VOLUME GLOBAL FORWARDING OCEAN VOLUME GLOBAL FORWARDING AIR VOLUME YTD 2017 HIGHLIGHTS SIGNIFICANT MARKET SHARE GAINS IN NEARLY ALL SERVICES
  • 16. NAST 4.1% 2014 – 2017 CAGR ANNUAL GROWTH TARGET (1) 5 – 10% GLOBAL FORWARDING 11.5% 10%+ ROBINSON FRESH 3.6% 4 – 8% OTHER (2) 8.7% 10%+ NET REVENUE Enterprise Growth Targets (1) OPERATING INCOME: Equal to or greater than net revenue growth EPS: 10%+ (1) Long-term growth targets represent an over time perspective and do not necessarily represent an expected annual growth rate. (2) Other includes Managed Services, European Surface Transportation, and all other services. LONG-TERM GROWTH TARGETS
  • 17. NET REVENUE 6.6% 10-YEAR CAGR (IN MILLIONS) INCOME FROM OPERATIONS 4.3% 10-YEAR CAGR (IN MILLIONS) DILUTED EPS FROM CONTINUING OPERATIONS 6.7% 10-YEAR CAGR (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. $2,368 $3.57 $775 $5,628 $500 $1,000 $1,500 $2,000 $2,500 07 08 09 10 11 12 13 14 15 16 17 $0 $200 $400 $600 $800 $1,000 07 08 09 10 11 12 13 14 15 16 17 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 $1.00 $2.00 $3.00 $4.00 07 08 09 10 11 12 13 14 15 16 17 CAPITAL RETURNED TO SHAREHOLDERS 22.0% CAGR SINCE IPO (IN MILLIONS)