C.H. RobinsonInvestor Presentation – Through Q2 2019
SAFE HARBOR STATEMENT
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.
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C.H. ROBINSON OVERVIEW
• Global provider of transportation services and logistics solutions
• Select and hire the appropriate transportation for shipment
• Purchase or market fresh produce and sell to customers
• Non-asset based business model
$16.6BTOTAL GROSS
REVENUE
#193ON
FORTUNE
500
OVER
124KCUSTOMERS
76KCARRIERS
AND SUPPLIERS
ACTIVE IN 2018
INBOUND LOGISTICS
A TOP 3PL1998 – 2018
3
SERVICE LINES
Truckload
Less Than
Truckload
Intermodal
Ocean
Air
Customs
Sourcing
Managed
Services
and Other
4
53%
17%
12%
5%
Based on 2018 net revenues.
5%
4%
3%
1%
• We deliver an average of over 3 services per top 500 customer
NORTH AMERICAN SURFACE TRANSPORTATION
5
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2018 results.
NET REVENUES(2)
:
OPERATING INCOME(2)
:
TOTAL REVENUES(1)(2)
:
Truckload
Less Than Truckload
Intermodal
• Largest truckload network in North America
• Largest LTL 3PL in the U.S.
• Direct programs on all Class 1 railroads
GLOBAL FORWARDING
6
NET REVENUES(2)
:
OPERATING INCOME(2)
:
TOTAL REVENUES(1)(2)
:
Ocean
Air
Customs
• #1 NVOCC from China to the U.S.
• 225K metric tonnes moved in 2018
• Over 1.5M transactions in 2018
Over $900 million in acquisitions since 2012
(1) Total revenues do not include intersegment revenues.
(2) Represents FY 2018 results.
ALL OTHER & CORPORATE
7
NET REVENUES(1)
:
Managed Services
Other Surface Transportation
• Over $4 billion in freight under management
• Shipments across 184 countries
NET REVENUES(1)
:
• Presence in 14 countries in Europe
(1) Represents FY 2018 results.
NET REVENUES(2)
:
Robinson Fresh
• Largest provider of fresh produce in North America
• Network of 1,600 growers
$167$184 $200
$213$227
2016 2017 2018E 2019E 2020E
65 67 69 72 76
2017 2018 2019 2020 2021
WE COMPETE IN A GROWING INDUSTRY
30 31 32 3435
2017 2018 2019 2020 2021
Global Air Freight Market ForecastIn million tonnes
Source: Technavio
U.S. 3PL Market Forecast$ in billions
Source: Armstrong & Associates
In million TEUs
8
Global Ocean Freight Market Forecast
FREIGHT BROKERAGE MODEL IS INCREASINGLY RELEVANT
9Source: Armstrong & Associates
U.S. Freight Brokerage Penetration of Total Freight Market
6%7%
7% 7%8%
9%10% 10%
10% 11%11% 12% 12%
13%14%
14%
16%
17%
19%
$1,789
$683
$515 $514$420 $400 $360
$245 $206 $197
SIZE AND SCALE MATTER
10Source: Transport Topics
2019 – Largest North America Freight Brokers By Estimated Net Revenues ($ in millions)
32K 35K 36K 37K 42K 46K 46K
110K 113K 120K 124K
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
20%
17%
14%13%
12%
6%
6%
5%
Percentage of 2018
Gross Revenues
Food & Beverage
Manufacturing
Auto / Industrial
Chemicals
Retail
Paper / Packaging
Professional Services
Technology
Healthcare
Energy / Utilities
Transport
Government / Education
DIVERSIFIED CUSTOMER BASE
Over 124K customers active in 2018
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Growing Customer Base
• Top 500 customers are 48% of net revenues
Acquisition
5% 6%
89%
0 - 5 years 5 - 10 years 10+ years
99.6% 99.2% 99.2% 99.8% 100.0%
2014 2015 2016 2017 2018
ESTABLISHED CUSTOMER RELATIONSHIPS
12
Client Relationship Length(1) Annual Retention Rates(1)
• 99.6% average retention rate since 2014
• Majority of top 500 customers have continued to do business with C.H. Robinson for 10+ years
(1) Based on 2018 net revenues of top 500 customers.
1-5 TRUCKS6-50
TRUCKS51-399TRUCKS
400-3,999TRUCKS
4,000+TRUCKS
U.S. TruckloadCarriers 212,634 30,998 3,470 181 13
% of Total U.S. For Hire TL Carriers
86% of tota l 13% of tota l 1% of tota l 0.1% of tota l 0.0% of tota l
2018 CHRW ActiveCarriers
38,702 9,916 1,624 135 12
% of Carrier Segment 18% 32% 47% 75% 92%
U.S. TRUCKLOAD CARRIER NETWORK
13
2 4 7 , 2 9 6 for-hire motor carriers 1 , 4 5 9 , 3 1 9 truck tractors
C.H. Robinson 2018 analysis of FMCSA’s 2018 MCMIS Census Data
Carriers included: For hire, USA 48 State, active status updated in 2018; Carriers excluded: LTL carriers, bus companies, government vehicles, private, forwarders and brokers.
C.H. Robinson U.S. For Hire Truckload Carrier Share
EXTENSIVE CAPACITY RELATIONSHIPS
Intermodal coverage with direct access to ALL CLASS 1 North American railroads
TOP 5 NVOCC within the global ocean carrier portfolio
20 core air carriers move 73% of our volume
1,600 growers and over 106 MILLION cases of fresh produce sold annually
Capacity relationships with OVER 100 LTL carriers
14
VOLUME GROWTH OVER TIME
15
2010 – 2018 CAGR
+4%IN
TRUCKLOAD
North America
2010 – 2018 CAGR
+13%IN
LTL
2013 – 2018 CAGR
+10%IN
OCEAN
Global
2013 – 2018 CAGR
+15%IN
AIR
11%
13%
15%
17%
19%
21%
23%
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
TR
AN
SP
OR
TA
TIO
N N
ET R
EV
EN
UE M
AR
GIN
YO
Y %
CH
AN
GE I
N C
OS
T A
ND
PR
IC
E
MAINTAIN MARGIN THROUGH THE FREIGHT CYCLE
YoY Price Change
YoY Cost Change
Trans Net Revenue Margin
North America Truckload Price and Cost YoY % Change(1),
Transportation Net Revenue Margin
16
Average: 16.8%
Average Trans Net Revenue Margin
(1) YoY change in cost and price exclude the estimated impact of fuel.
NAVISPHERE® – EMPOWERING DIGITAL SUPPLY CHAINS
55 MILLIONDigital transactions
MONTHLYwith customers& carriers
Over 75% of
primary means of customer interaction is
AUTOMATED
Over 50% of
shipments powered by Navisphere are fully
AUTOMATED
200K+organizations
CONNECTEDto our system
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✓Online ecosystem connecting
customers and suppliers
✓Real time global visibility to
every shipment
✓Seamless electronic integration
✓Order & route optimization
through mobile application
✓Customized solutions for
individual customers
✓Inventory & purchases order
management
®
$2.65
$4.73
FY 2013 FY 2018
FINANCIAL PERFORMANCE
18
+$869M, +8.1% CAGR +$2.08, +12.3% CAGR
Net Revenues EPS
$ in millions,
except per share amounts
$1,836
$2,705
FY 2013 FY 2018
YTD 2019 PERFORMANCE
NET REVENUE +5.9%
INCOME FROM
OPERATIONS+10.1%
NET INCOME +9.8%
DILUTED EPS +11.7%
% GROWTHYTD JUNE 30, 2018
$1,297.4
$1,374.0
$410.6
$452.1
$301.5
$331.0
$2.14
$2.39
YTD JUNE 30, 2019
19
$ in millions, except per share amounts
CAPITAL RETURNED TO SHAREHOLDERS
20
• $6.2B cumulative cash returns to shareholders
• 22.3% CAGR
• Dividends per Share CAGR of 17.9%
• Added to the Dividend Aristocrat Index in 2017
-
$0.50
$1.00
$1.50
$2.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000 An
nu
al Divid
en
ds p
er Sh
are ($
actual)
Cu
mu
lati
ve C
apit
al R
etu
rne
d ($
in m
illio
ns)
Cumulative Capital Returned Dividends Per Share
LONG-TERM GROWTH TARGETS
NAST
ANNUAL GROWTH TARGET (1)
5 – 10%
GLOBAL FORWARDING 10%+
ROBINSON FRESH 4 – 8%
OTHER (2) 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. 21