Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ MARCH 2015

www.harriswilliams.de

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

WHAT WE’RE READING

CONTENTS LOGISTICS | MANAGING MOUNTAIN OF DATA A CHALLENGE TO VISIBILITY . M&A TRANSACTIONS The quality, availability and management of data has to improve if the supply . PUBLIC MARKETS OVERVIEW chain is to efficiently handle the mountain of information that is now available to carriers and their customers, panelists said at the 15th annual TPM Conference in . STOCK PRICE PERFORMANCE Long Beach, California. Bill Schwebel, president of INTTRA Data, said the . OUR GROUP information management business was at a “lucky” time, with the cloud based technology and all the analytics that were available. But with so much data available, one of the greatest challenges being faced by carriers, forwarders and software providers was how to manage it without being buried under the tsunami CONTACTS of information. Journal of Commerce UNITED STATES

LOGISTICS | SIDECAR'S DELIVERY SERVICE NOW ACCOUNTS FOR 25% OF SF RIDES Frank Mountcastle Managing Director Sidecar is turning into a delivery company. The San Francisco based start- [email protected] up reported today that 25 percent of its total rides provided in the Bay Area are +1 (804) 915-0124 now deliveries, up 15 percent from last month. Sidecar is working with e- Jason Bass commerce, food, flower, and grocery companies to deliver items that are often in Managing Director the trunk of a car that’s also shuttling people around town. Sidecar said it can offer [email protected] a cheaper price point and faster deliveries than traditional companies in the +1 (804) 915-0132 delivery industry. Joe Conner Geek Wire Managing Director [email protected] +1 (804) 915-0151 RAIL | WEST COAST INTERMODAL VOLUME SURGE TESTS INLAND HUBS Jeff Burkett Tightening Chicago drayage capacity is causing rates to spike, as shippers have Director little choice but to pay for more local trucking to avoid demurrage charges that [email protected] railroads impose if loads aren’t removed from terminals after two days. Drayage +1 (804) 932-1334 rates for the largest North American freight hub have spiked at least 10 percent Jershon Jones over the last several weeks, largely because there are not enough drivers to Director handle the surges of international intermodal cargo moving from West Coast ports. [email protected] Journal of Commerce +1 (804) 932-1356 Jeff Kidd TRUCKING | INTERMODAL FREIGHT MARKET FACING BIG CHALLENGES Vice President [email protected] Intermodal freight movements are finally recovering since a tentative +1 (804) 915-0178 agreement was worked out about three weeks ago between West Coast Port workers and shipping companies, but diversions of freight from this part of the EUROPE country are expected to continue. That was one of the messages on Thursday coming from intermodal and rail expert and senior consultant to FTR, Larry Gross, Jeffery Perkins during a webinar hosted by the freight forecasting firm. Managing Director Trucking Info [email protected] +49 (0) 69 3650638 00

MARINE | CONTAINER LINE FINANCIALS GRADUALLY IMPROVING

Container line financials are gradually improving thanks to asset sales, reduced operating expenses, debt reduction and effects of a 50 percent drop in bunker fuel, says the consulting firm Alix Partners. Yet the industry remains challenged and has yet to demonstrate that the recent improvements are sustainable, Esben Christensen, director, told a webcast organized by Stifel Capital Markets on Friday. Journal of Commerce

AIR | THREE PRIORITIES FOR AIR CARGO

The International Air Transport Association (IATA) called for further action on three vital aspects of the air cargo business: transitioning to paperless freight processes, a focus on global handling standards for pharmaceutical freight, and tough action to ensure the continued safe transportation of lithium batteries by air. IATA

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer Pending Logistics Air Medical Group Provides air ambulance services. KKR & Co. Holdings, Inc.

Pending Rail Freightliner Group Ltd Provides international freight rail services with operations in the Genesee & Wyoming Inc. United Kingdom, Poland, Germany, the Netherlands, and Australia.

Pending Logistics Toll Holdings Limited Provides integrated logistics services in the Asia-Pacific region and Japan Post Bank Co., Ltd. internationally.

Pending Logistics APL Logistics Ltd Provides global supply chain and logistics services across all modes Kintetsu World Express, of transportation. Inc.

Pending Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North Radiant Global Logistics America.

Pending Marine Horizon Lines, Inc. Engages in Jones Act container shipping with primary service to ports Matson Navigation within the continental United States, Alaska, Hawaii, and Puerto Rico. Company, Inc.

3/9/2015 Trucking CLP Towne Inc. Doing business as Towne Air Freight. Provides full-service trucking Forward Air, Inc. solutions and specializes in time-definite airport-to-airport trucking.

3/3/2015 Equipment Milestone Equipment Transportation equipment lessor specializing in highway trailers, Wood Creek Capital Holdings, LLC intermodal trailers, domestic intermodal containers, and chassis. Management, LLC

3/3/2015 Logistics Neovia Logistics Provides third party contract logistics services, including warehouse The Goldman Sachs Group Services, LLC management, fulfillment, and distribution solutions. Rhone Capital L.L.C.

3/2/2015 Logistics Pegasus Transportation, Provides regional truckload services, with a focus on the high- CRST International, Inc. Inc. security, temperature sensitive, health sciences sector and the automotive industry. 2/26/2015 Logistics ITS Logistics LLC Provides a variety of services in supply chain management, McNally Capital, LLC transportation, warehousing, brokerage logistics, and transportation Coughlin Capital, LLC management. 2/9/2015 Logistics UX Specialized Logistics Provides non-asset based, last mile logistics services including home XPO Last Mile, Inc. delivery, assembly and installation, and same-day delivery.

2/5/2015 Logistics Xpress Solutions, Inc. Provides non-asset based less-than-truckload and truckload solutions Echo Global Logistics, Inc. with a regional focus in the Midwest.

2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction services to the freight and Westinghouse Air Brake commuter rail industry. Technologies Corporation

2/9/2015 Logistics Lazer Spot, Inc. Provides outsourced yard management services including trailer Greenbriar Equity Group spotting and shuttling.

2/2/2015 Logistics PODS Enterprises, Inc. Provides container-based moving and storage services. Ontario Teachers' Pension Plan

2/2/2015 Logistics Linkex, Inc. Provides asset-light, third party logistics services including supply Saia, Inc. chain design, transportation, warehousing, and last mile solutions.

1/30/2015 Logistics GENCO Distribution Provides product lifecycle and reverse logistics solutions in North FedEx Corporation Systems, Inc. America and internationally.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015E EBITDA

Logistics Providers 11.8x Logistics Providers 10.6x

Rail & Rail Services 11.3x Rail & Rail Services 9.1x

Marine 9.4x Marine 8.3x

Trucking 8.7x Trucking 7.3x

Transportation Transportation 7.5x 6.4x Equipment Equipment

AVERAGE REVENUE GROWTH (2011 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016P)

Rail & Rail Services 12.2% Trucking 9.7%

Transportation 8.7% Rail & Rail Services 8.7% Equipment

Trucking 7.7% Logistics Providers 8.0%

Logistics Providers 7.4% Marine 5.8%

Transportation Marine 5.4% 5.2% Equipment

AVERAGE EBITDA GROWTH (2011 – 2014) AVERAGE EBITDA GROWTH (2014 – 2016P)

Rail & Rail Services 18.4% Trucking 16.0%

Trucking 13.0% Logistics Providers 13.9%

Marine 7.7% Marine 12.6%

Transportation 7.4% Rail & Rail Services 12.5% Equipment

Transportation Logistics Providers 7.2% 11.1% Equipment

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

STOCK PRICE PERFORMANCE

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)

Logistics Providers 3.7% Logistics Providers 21.2%

Trucking 3.6% Rail & Rail Services 18.6%

Rail & Rail Services (1.6%) Trucking 13.8%

Transportation Marine (4.6%) (2.5%) Equipment

Transportation (6.5%) Marine (12.4%) Equipment

TRAILING TWELVE MONTHS

(Indexed to March 17, 2014)

40%

30%

20%

10%

(10%)

(20%)

(30%) 3/17/14 6/17/14 9/17/14 12/17/14 3/17/15

Logistics Providers Trucking Rail & Rail Services Marine Transportation Equipment S&P 500 Index

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group has experience across a broad range of sectors, including third-party logistics, rail and rail services, marine transportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport and aviation services.

RECENTLY CLOSED T&L TRANSACTIONS

RCL Services Group

in partnership with a portfolio company of and a portfolio company of a portfolio company of a portfolio company of a portfolio company of has sold and

has been acquired by to has been acquired by has been acquired by has been acquired by has been acquired by

a portfolio company of a portfolio company of a portfolio company of a portfolio company of has been acquired by has been acquired by

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DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIRPORT & AVIATION SERVICES

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

OUR FIRM

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.

Aerospace, Defense Building Products Business Consumer Energy & Government & Materials Services & Power Services

Healthcare Industrials Specialty Technology, Transportation & Life Sciences Distribution Media & Telecom & Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Philadelphia Frankfurt Two International Place 1600 Market Street Bockenheimer Landstrasse 33-35 24th Floor 21st Floor 60325 Frankfurt Boston, Massachusetts 02110 Philadelphia, Pennsylvania 19103 Germany Phone: +1 (617) 482-7501 Phone: +1 (267) 675-5900 Phone: +49 069 3650638 00 Fax: +1 (617) 482-7503 Fax: +1 (267) 675-5901 Fax: +49 069 3650638 01 Cleveland Richmond (U.S. Headquarters) London 1900 East 9th Street 1001 Haxall Point 63 Brook Street 20th Floor 9th Floor London W1K 4HS, England Cleveland, Ohio 44114 Richmond, Virginia 23219 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (804) 648-0072 Fax: +44 (0) 20 7526 2187 Fax: +1 (216) 689-2401 Fax: +1 (804) 648-0073 Minneapolis San Francisco NETWORK OFFICES 222 South 9th Street 575 Market Street Suite 3350 31st Floor Beijing New Delhi Minneapolis, Minnesota 55402 San Francisco, California 94105, USA Phone: +1 (612) 359-2700 Phone: +1 (415) 288-4260 Hong Kong Shanghai Fax: +1 (612) 359-2701 Fax: +1 (415) 288-4269 Mumbai

PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Mar-14 Sep-14 Current 2014 2015E Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $872 $0.83 3.7% 32.0% $0.92 90.2% 7.6x 10.4x 9.6x NA NA Air Transport Services Group, Inc. 896 8.97 5.8% 21.2% 9.72 92.3% 5.3x 5.2x 5.0x 5.0x 4.9x Atlas Air Worldwide Holdings, Inc. 2,810 46.48 (2.3%) 45.9% 51.00 91.1% 7.0x 8.0x 8.2x 8.2x 8.2x CH Robinson Worldwide Inc. 11,724 73.45 2.3% 43.6% 77.49 94.8% 11.4x 14.5x 14.7x 14.7x 13.1x Deutsche Post AG 37,289 29.10 0.6% 15.4% 30.78 94.6% 8.7x 9.9x 10.2x 10.2x 8.1x DSV A/S 42,849 218.10 4.9% 30.3% 221.90 98.3% 12.0x 11.8x 14.3x 14.3x 12.7x Echo Global Logistics, Inc. 645 28.45 7.9% 66.4% 30.18 94.3% 12.7x NM 17.9x 17.9x 11.8x Expeditors International of Washington Inc. 8,248 48.04 6.0% 23.2% 49.02 98.0% 11.0x 11.9x 12.8x 12.8x 11.6x FedEx Corporation 51,573 173.32 (1.7%) 26.7% 183.51 94.4% 7.1x 7.3x 8.0x 8.5x 7.4x Forward Air Corp. 1,599 53.77 (0.0%) 21.2% 54.63 98.4% 11.6x 12.4x 12.6x 12.6x 10.0x Hub Group Inc. 1,474 39.97 1.3% (2.0%) 51.47 77.7% 10.8x 11.0x 10.9x 10.9x 12.0x JB Hunt Transport Services Inc. 11,036 86.76 6.1% 21.4% 87.90 98.7% 10.9x 11.3x 11.9x 11.9x 10.6x Kuehne + Nagel International AG 16,098 144.10 8.4% 21.0% 144.60 99.7% 13.7x 14.7x 16.4x 16.4x 15.6x Landstar System Inc. 2,983 67.83 (1.2%) 12.0% 81.80 82.9% 13.3x 14.8x 11.9x 11.9x 10.7x Panalpina World Transport Holding Ltd. 3,060 144.20 17.2% 4.5% 149.20 96.6% NM 18.7x NM NM 13.8x Roadrunner Transportation Systems, Inc. 1,402 25.82 1.7% 4.5% 29.02 89.0% 11.3x 12.3x 11.6x 11.6x 9.5x Ryder System, Inc. 9,396 93.12 (0.4%) 20.6% 95.82 97.2% 5.6x 6.2x 5.8x 5.8x 5.3x TransForce Inc. 4,766 30.50 1.4% 32.0% 31.60 96.5% 8.7x 10.7x 11.4x 11.4x 8.6x United Parcel Service, Inc. 96,491 98.53 (2.8%) 2.3% 114.40 86.1% 10.7x 12.3x 14.1x 14.1x 10.0x Universal Truckload Services Inc. 1,020 26.82 8.3% (6.1%) 29.49 91.0% 10.3x 9.0x 9.0x 9.0x 7.7x UTi Worldwide Inc. 1,947 13.38 12.9% 15.8% 14.75 90.7% 16.5x 19.8x NM NM NM World Fuel Services Corp. 4,297 54.10 5.2% 22.1% 55.56 97.4% 11.2x 11.4x 13.5x 13.5x 11.7x XPO Logistics, Inc. 3,681 46.48 11.9% 48.9% 46.85 99.2% NM NM NM NM 16.8x Median 3.7% 21.2% 94.6% 10.9x 11.4x 11.8x 11.9x 10.6x Trucking ArcBest Corporation $1,002 $40.85 4.2% 14.9% $47.52 86.0% 8.7x 6.6x 6.5x 6.5x 5.0x Celadon Group Inc. 1,043 26.35 4.4% 9.6% 26.86 98.1% 8.8x 7.1x 9.8x 10.0x 8.0x Con-way Inc. 2,868 44.51 0.8% 12.8% 53.54 83.1% 5.9x 7.2x 5.8x 5.8x 5.0x Covenant Transportation Group, Inc. 844 36.55 22.8% 226.6% 36.70 99.6% 5.4x 6.2x 9.5x 9.5x 7.3x Heartland Express, Inc. 2,156 24.47 (3.5%) 11.4% 27.96 87.5% 13.3x 12.6x 10.4x 10.4x 8.1x Knight Transportation Inc. 2,806 32.77 4.4% 44.9% 34.69 94.5% 9.7x 10.6x 11.7x 11.7x 9.1x Marten Transport Ltd. 791 22.92 3.0% 12.9% 25.71 89.1% 6.0x 6.1x 6.9x 6.9x 5.7x Old Dominion Freight Line Inc. 6,839 78.19 3.9% 38.1% 81.48 96.0% 11.0x 12.3x 11.7x 11.7x 10.0x P.A.M. Transportation Services, Inc. 458 54.29 (3.3%) 144.2% 63.70 85.2% 5.5x 6.9x 8.4x 8.4x NA Quality Distribution Inc. 651 10.73 3.4% (18.6%) 15.83 67.8% 10.3x 11.5x 9.3x 9.3x 7.5x Saia, Inc. 1,188 44.97 0.8% 14.6% 57.60 78.1% 8.2x 10.1x 8.2x 8.2x 6.8x Swift Transportation Company 5,422 28.33 7.2% 10.6% 29.44 96.2% 9.0x 8.2x 9.3x 9.3x 7.9x Universal Truckload Services Inc. 1,020 26.82 8.3% (6.1%) 29.49 91.0% 10.3x 9.0x 9.0x 9.0x 7.7x USA Truck Inc. 418 28.56 (5.4%) 93.2% 32.14 88.9% 8.6x 7.1x 7.0x 7.0x 6.7x Werner Enterprises Inc. 2,355 31.94 4.5% 25.4% 32.65 97.8% 6.3x 6.3x 7.4x 7.4x 6.2x YRC Worldwide Inc. 1,500 17.72 (8.8%) (22.2%) 29.21 60.7% 9.3x 10.4x 7.6x 7.6x 4.5x Median 3.6% 13.8% 89.0% 8.8x 7.7x 8.7x 8.7x 7.3x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

PUBLIC COMPARABLES CONT.

Rail and Rail Services American Railcar Industries, Inc. $1,361 $48.70 (11.0%) (32.0%) $82.82 58.8% 9.1x 9.0x 6.7x 6.7x 5.8x Canadian National Railway Company 78,213 86.37 (1.9%) 39.4% 88.89 97.2% 12.2x 14.3x 13.8x 13.8x 12.4x Canadian Pacific Railway Limited 44,453 236.18 1.2% 38.9% 247.56 95.4% 14.7x 16.7x 15.8x 15.8x 12.9x CSX Corp. 42,613 34.13 (6.7%) 20.3% 37.99 89.8% 8.1x 8.8x 8.9x 8.9x 8.3x FreightCar America Inc. 207 30.46 14.0% 28.0% 37.48 81.3% NM NM 12.1x 12.1x 4.0x Genesee & Wyoming Inc. 7,136 103.28 8.6% 6.8% 106.02 97.4% 12.6x 13.2x 12.4x 12.4x 10.2x The Greenbrier Companies, Inc. 1,899 54.84 (5.1%) 18.6% 78.32 70.0% 10.1x 9.7x 7.4x 8.0x 4.7x Kansas City Southern 14,917 114.43 (3.0%) 18.5% 126.49 90.5% 13.2x 14.4x 13.5x 13.5x 11.9x Norfolk Southern Corporation 41,733 108.65 (1.3%) 14.9% 117.64 92.4% 8.9x 9.4x 9.2x 9.2x 8.7x Trinity Industries Inc. 8,286 33.94 15.2% (5.7%) 50.77 66.8% 8.7x 8.2x 5.9x 5.9x 5.3x Union Pacific Corporation 110,819 114.52 (7.5%) 23.7% 124.52 92.0% 10.0x 10.7x 10.4x 10.4x 9.4x Westinghouse Air Brake Technologies Corporation 9,104 93.49 4.7% 17.6% 97.16 96.2% 16.1x 15.5x 15.5x 15.5x 13.9x Median (1.6%) 18.6% 91.2% 10.1x 10.7x 11.3x 11.3x 9.1x Marine Aegean Marine Petroleum Network Inc. $1,426 $13.49 (8.0%) 37.1% $15.11 89.3% 15.8x 14.8x 14.7x 13.4x 10.5x Costamare Inc. 3,043 18.57 (3.8%) (10.0%) 24.94 74.5% 13.2x 11.7x 9.6x 9.6x 9.2x Diana Shipping Inc. 717 6.48 (8.3%) (47.5%) 12.77 50.7% NM 19.7x 16.4x 16.4x 15.4x Kirby Corporation 4,804 73.61 (5.7%) (27.6%) 124.12 59.3% 11.3x 12.4x 7.4x 7.4x 7.8x Matson, Inc. 1,865 41.15 9.4% 65.9% 41.70 98.7% 7.2x 8.4x 9.2x 9.2x 8.3x Neptune Orient Lines Limited 8,085 0.95 (5.5%) (5.0%) 1.07 88.7% NM NM NM NM 12.1x Nordic American Tankers Limited 1,078 10.41 3.1% 4.0% 12.08 86.2% NM NM 14.2x 14.2x 7.1x Rand Logistics, Inc. 241 3.13 (12.8%) (57.1%) 7.44 42.1% 10.3x 11.0x 7.5x 8.2x 6.8x SEACOR Holdings Inc. 1,773 69.66 (3.8%) (14.9%) 88.29 78.9% 10.3x 8.5x 7.2x 7.2x 7.4x Wilh. Wilhelmsen ASA 16,817 44.10 0.7% (22.6%) 60.75 72.6% NM NM NM NM NM Median (4.6%) (12.4%) 76.7% 10.8x 11.7x 9.4x 9.4x 8.3x Transportation Equipment Accuride Corp. $521 $4.76 (6.5%) (2.5%) $5.91 80.5% 12.3x 8.9x 7.0x 7.0x 5.7x Dana Holding Corporation 3,892 20.71 (10.0%) (4.8%) 24.82 83.4% 6.0x 5.7x 5.5x 5.5x 5.2x Gentherm Incorporated 1,675 46.33 13.5% 45.6% 52.29 88.6% 13.8x 16.4x 12.5x 12.5x 11.2x Spartan Motors Inc. 145 4.94 (9.5%) (7.8%) 5.71 86.5% NM 18.5x 15.3x 15.3x 9.1x Wabash National Corp. 1,199 14.74 8.1% 8.8% 14.96 98.5% 8.4x 8.2x 7.5x 7.5x 6.4x Median (6.5%) (2.5%) 86.5% 10.3x 8.9x 7.5x 7.5x 6.4x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Transportation & Logistics Logistics Providers Agility Public Warehousing Company KSC $1,331 $1,418 $1,376 NA NA NA NA NA $55 $72 $84 NA NA NA NA NA Air Transport Services Group, Inc. 730 607 580 590 591 619 (6.9%) 2.4% 181 163 158 179 183 193 (0.3%) 3.7% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,765 1,844 8.8% 1.6% 203 296 307 344 346 346 19.1% 0.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,883 16,005 9.2% 9.0% 720 751 731 797 896 974 3.4% 10.6% Deutsche Post AG 52,829 55,512 54,912 56,630 58,700 61,093 2.3% 3.9% 2,605 3,132 3,709 3,655 4,572 5,042 12.0% 17.5% DSV A/S 43,710 44,912 45,710 48,582 51,386 53,706 3.6% 5.1% 2,848 2,937 2,940 2,988 3,379 3,578 1.6% 9.4% Echo Global Logistics, Inc. 603 758 884 1,173 1,349 1,604 24.9% 16.9% 23 27 27 36 54 65 16.5% 34.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,027 7,506 2.1% 6.9% 655 571 600 644 707 765 (0.6%) 9.0% FedEx Corporation 39,304 42,680 44,287 45,567 47,721 50,544 5.1% 5.3% 4,506 5,367 5,597 6,033 6,869 7,896 10.2% 14.4% Forward Air Corp. 509 584 652 781 988 1,076 15.4% 17.4% 97 104 107 127 159 184 9.4% 20.4% Hub Group Inc. 2,752 3,124 3,374 3,571 3,802 4,050 9.1% 6.5% 112 134 138 135 124 141 6.4% 1.9% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,786 7,523 11.4% 21.7% 658 759 830 926 1,039 1,162 12.1% 12.0% Kuehne + Nagel International AG 16,218 17,120 17,178 17,501 21,324 22,249 2.6% 12.8% 970 896 953 980 1,028 1,092 0.3% 5.6% Landstar System Inc. 2,628 2,771 2,665 3,185 3,474 3,735 6.6% 8.3% 204 223 201 250 279 301 6.9% 9.7% Panalpina World Transport Holding Ltd. 6,500 6,617 6,758 6,707 6,737 7,192 1.1% 3.6% 206 84 143 149 224 272 (10.1%) 35.1% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,227 2,404 30.5% 13.3% 54 81 99 121 150 169 30.9% 18.4% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,847 7,254 3.1% 4.5% 1,290 1,396 1,459 1,628 1,764 1,902 8.1% 8.1% TransForce Inc. 2,418 2,812 2,783 3,263 4,526 4,649 10.5% 19.4% 318 391 336 417 553 588 9.5% 18.7% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 60,195 63,373 3.1% 4.3% 7,830 3,201 8,868 6,864 9,588 10,300 (4.3%) 22.5% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,295 1,351 6.3% 6.5% 84 96 105 113 133 142 10.5% 12.0% UTi Worldwide Inc. 4,550 4,914 4,608 4,441 4,284 4,395 (0.8%) (0.5%) 183 213 146 92 96 180 NM NM World Fuel Services Corp. 34,623 38,945 41,562 43,386 40,121 43,327 7.8% (0.1%) 291 287 301 319 377 412 3.0% 13.7% XPO Logistics, Inc. 177 279 702 2,357 4,235 6,498 NM NM 3 (25) (20) 95 219 392 NM NM Total $291,430 $308,590 $317,285 $332,571 $350,261 $371,997 7.4% 8.0% $24,097 $21,155 $27,819 $26,891 $32,740 $36,095 7.2% 13.9% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,804 $3,029 11.1% 7.7% $82 $70 $104 $155 $199 $229 23.5% 21.6% Celadon Group Inc. 467 475 489 615 877 953 9.6% 24.4% 89 103 106 104 130 145 5.4% 18.1% Con-way Inc. 5,290 5,580 5,473 5,806 6,183 6,548 3.2% 6.2% 386 428 427 493 575 631 8.5% 13.2% Covenant Transportation Group, Inc. 512 527 539 579 759 825 4.2% 19.4% 63 71 65 89 115 128 11.8% 20.3% Heartland Express, Inc. 529 546 582 871 853 905 18.1% 1.9% 132 138 149 208 268 291 16.3% 18.3% Knight Transportation Inc. 697 752 792 926 1,282 1,412 9.9% 23.5% 169 184 192 239 306 343 12.3% 19.7% Marten Transport Ltd. 604 638 659 673 689 732 3.7% 4.3% 97 101 110 115 137 150 5.9% 14.2% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,132 3,458 13.6% 11.4% 326 396 460 587 684 789 21.6% 15.9% P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.8% NA Quality Distribution Inc. 628 719 805 854 1,028 1,073 10.8% 12.1% 70 69 72 70 85 94 0.0% 15.4% Saia, Inc. 1,030 1,099 1,139 1,272 1,327 1,438 7.3% 6.3% 65 107 126 145 177 202 30.3% 18.1% Swift Transportation Company 3,779 3,976 4,118 4,299 4,548 4,913 4.4% 6.9% 549 573 577 583 687 750 2.0% 13.4% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,295 1,351 6.3% 6.5% 84 96 105 113 133 142 10.5% 12.0% USA Truck Inc. 411 512 555 602 611 672 13.6% 5.6% 33 20 35 60 63 73 22.0% 10.2% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,198 2,338 2.2% 4.5% 311 318 296 318 379 408 0.7% 13.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,288 5,565 1.4% 4.8% 49 198 199 197 340 356 NM NM Total $25,905 $27,247 $28,030 $30,615 $32,874 $35,211 7.7% 9.7% $2,536 $2,913 $3,073 $3,530 $4,277 $4,731 13.0% 16.0%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $733 $844 $805 12.2% 4.8% $55 $145 $179 $204 $240 $238 NM 7.9% Canadian National Railway Company 9,028 9,920 10,575 12,134 12,929 13,913 10.4% 7.1% 4,180 4,609 4,853 5,674 6,277 6,760 10.7% 9.2% Canadian Pacific Railway Limited 5,052 5,550 5,982 6,464 7,133 7,792 8.6% 9.8% 1,401 1,772 2,327 2,819 3,401 3,756 26.2% 15.4% CSX Corp. 11,795 11,763 12,026 12,669 12,878 13,570 2.4% 3.5% 4,446 4,523 4,577 4,764 5,118 5,514 2.3% 7.6% FreightCar America Inc. 487 677 290 599 842 893 7.1% NM 12 41 (8) 17 55 66 12.2% NM Genesee & Wyoming Inc. 829 875 1,569 1,639 2,217 2,506 25.5% 23.6% 252 277 534 574 708 793 31.6% 17.6% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,605 2,815 21.8% 15.2% 97 152 145 237 400 448 34.5% 37.3% Kansas City Southern 2,098 2,239 2,369 2,577 2,725 2,968 7.1% 7.3% 772 872 962 1,106 1,251 1,411 12.7% 13.0% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,649 12,371 1.3% 3.2% 4,073 4,036 4,169 4,522 4,751 5,109 3.5% 6.3% Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,851 6,602 28.1% 3.4% 575 730 963 1,400 1,552 1,468 34.6% 2.4% Union Pacific Corporation 18,508 19,686 20,684 22,560 24,922 26,696 6.8% 8.8% 7,341 8,505 9,223 10,657 11,773 12,883 13.2% 9.9% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,350 3,616 15.7% 9.0% 334 436 485 588 662 731 20.8% 11.5% Total $65,569 $70,401 $74,108 $82,334 $88,945 $94,545 12.2% 8.7% $23,537 $26,098 $28,408 $32,562 $36,189 $39,176 18.4% 12.5% Marine Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7,753 0.1% 5.4% $75 $85 $75 $111 $138 $155 13.8% 18.1% Costamare Inc. 382 386 414 484 499 511 8.2% 2.7% 236 238 258 318 328 352 10.4% 5.2% Diana Shipping Inc. 256 221 164 176 170 200 (11.8%) 6.7% 166 121 53 44 45 56 (35.8%) 13.5% Kirby Corporation 1,850 2,113 2,242 2,566 2,420 2,522 11.5% (0.9%) 445 509 582 647 618 653 13.3% 0.5% Matson, Inc. 1,463 1,560 1,637 1,714 1,801 2,059 5.4% 9.6% 142 175 172 203 226 260 12.8% 13.1% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 8,333 9,023 (2.2%) 2.3% (90) 96 131 280 619 609 NM NM Nordic American Tankers Limited 95 131 244 158 234 215 18.6% 16.5% 10 7 (22) 76 151 130 NM 31.0% Rand Logistics, Inc. 98 109 119 129 149 157 9.9% 10.1% 16 28 25 29 35 39 23.3% 15.8% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,287 1,319 8.5% (0.0%) 155 164 197 245 239 262 16.4% 3.4% Wilh. Wilhelmsen ASA 309 395 325 285 2,546 2,562 NM NM 147 227 154 139 416 454 NM NM Total $21,661 $22,993 $21,559 $22,426 $24,562 $26,318 5.4% 5.8% $1,301 $1,648 $1,626 $2,092 $2,814 $2,970 7.7% 12.6% Transportation Equipment Accuride Corp. $805 $795 $643 $705 $744 $744 (4.3%) 2.7% $74 $65 $43 $75 $90 $94 0.2% 12.1% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,478 6,853 (4.3%) 1.8% 720 753 698 705 745 815 (0.7%) 7.5% Gentherm Incorporated 370 555 662 811 913 1,032 30.0% 12.8% 46 67 84 135 150 175 42.6% 14.0% Spartan Motors Inc. 426 471 470 507 530 561 6.0% 5.2% 14 16 6 9 16 29 (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,003 1,998 16.2% 3.6% 33 108 142 161 189 198 NM 11.0% Total $10,331 $10,506 $10,179 $10,504 $10,669 $11,188 8.7% 5.2% $888 $1,008 $973 $1,084 $1,191 $1,310 7.4% 11.1%

Note: 2014 revenue and EBITDA estimates for Aegean Marine Petroleum Network Inc. and Nordic American Tankers Limited. PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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