Transportation & Logistics Industry Update

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ MAY 2016

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0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

WHAT WE’RE READING

CONTENTS LOGISTICS | INVENTORIES REMAIN FULL, DEPRESSING U.S. FREIGHT DEMAND . M&A TRANSACTIONS Could U.S. freight volumes rise and overall economic growth slow? If that increase . PUBLIC MARKETS OVERVIEW in freight volume accompanies significant de-stocking of “bloated” inventories, . STOCK PRICE PERFORMANCE the answer is yes, an economist said at the 2016 NASSTRAC Shippers Conference. Investment in private inventories contributes to the expansion of real GDP, . OUR GROUP American Trucking Associations Chief Economist said in comments after a presentation to the conference. Cutting those business inventories pushes GDP down. In 2014, inventory investment added 0.05 percentage points to annual GDP growth of 2.4 percent, Federal Reserve Bank data show. In 2015, that figure CONTACTS leaped to 0.17 points out of 2.4 percent growth. U.S. GDP growth would have been closer to 2.2 percent without the buildup. UNITED STATES Journal of Commerce Frank Mountcastle Managing Director TRUCKING | TRUCKLOAD DRIVER TURNOVER CLIMBS [email protected] +1 (804) 915-0124 Turnover at smaller truckload fleets leaped 21 percentage points in the fourth quarter of 2015, while churn at larger carriers reached even more elevated levels Jason Bass in spite of lackluster freight demand, American Trucking Associations reported last Managing Director week. The annualized rate for smaller fleets, those with $30 million or less in [email protected] revenue, jumped to 89% from 68%, while the rate for larger truckload fleets with +1 (804) 915-0132 revenue above $30 million rose 2 percentage points to 102%. It was the first time Joe Conner since 2012 that larger fleets’ churn remained over 100% for two consecutive Managing Director quarters. [email protected] Transport Topics +1 (804) 915-0151 Jeff Burkett MARINE | GLOBAL SHIP OPERATORS SET TO STRIKE VESSEL-SHARING DEAL Director [email protected] A new alliance involving some of the biggest Asian and European shipping lines +1 (804) 932-1334 will be unveiled, closing a circle of new partnerships that will dominate the Jershon Jones movement of global cargo, the WSJ’s Costas Paris reports. The vessel-sharing deal Director will involve the Japanese trio of Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen [email protected] Kaisha Ltd. and Mitsui O.S.K. Lines Ltd.; Germany’s Hapag-Lloyd AG; South Korea’s +1 (804) 932-1356 Hanjin Shipping Co. and Hyundai Merchant Marine Co.; and Taiwan’s Yang Ming Jeff Kidd Marine Transport Corp. Teaming up is a must after several of the top container Vice President carriers struck vessel-sharing deals in recent weeks driven by the big new ships the [email protected] companies have been buying. +1 (804) 915-0178 Wall Street Journal James O’Malley Vice President RAIL | NORTH AMERICA INTERMODAL FORECAST GIVES RAILS HOPE [email protected] +1 (804) 915-0165 North American intermodal volume growth accelerated in the first quarter of 2016 and is forecast to continue at or above that clip for the remainder of the year, according to the Intermodal Association of North America. Total intermodal growth increased 2 percent year-over-year in the first three months of 2016, after EUROPE increasing just 0.3 percent in the fourth quarter of 2015, IANA reported. Despite the modest uptick, the group still expects 3 to 4 percent growth for total intermodal volume in 2016. It’s not the most optimistic forecast — total intermodal volume was Jeffery Perkins Managing Director up nearly 3 percent last year — but North American railroads, hit hard by double- [email protected] digit declines in commodity and coal volume, will take what they can get in what +49 (0) 69 3650638 00 many have called a challenging marketplace. Journal of Commerce

AIR | WEAK MARCH AIR FREIGHT VOLUMES POINT TO DIFFICULT YEAR

The International Air Transport Association (IATA) released demand growth data for global air freight markets for March 2016 showing a 2.0% drop in volumes measured in freight tonne kilometers (FTKs) compared to the same period last year. In contrast, freight capacity (measured in available freight tonne kilometers or AFTKs) rose by 6.9%, putting increased pressure on already struggling yields. IATA www.harriswilliams.com

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 5/12/2016* Equipment Direct ChassisLink, Inc. Provides chassis leasing and chassis / container management EQT Infrastructure Partners services.

5/9/2016 Rail UNITRAC Railroad Designer and manufacturer of railcar and railroad track products. Westinghouse Air Brake Materials, Inc. and Pride Technologies Corporation Bodies Ltd 5/2/2016* Logistics LeanLogistics, Inc. Provides SaaS transportation management system applications and Kewill plc supply chain services.

4/29/2016 Logistics pixi* Software GmbH Provides software solutions and applications for logistics businesses. The Descartes Systems Group Inc

4/14/2016* Marine Maher Terminals USA, Owns and operates a multi-user container terminal in Port Elizabeth, Macquarie Infrastructure LLC New Jersey. Partners Inc.

4/13/2016* Logistics Indev Logistics Pvt. Ltd. Provides sea freight, air freight, and logistics services in India and Kerry Logistics India Pvt. internationally. Ltd.

4/11/2016* Logistics gategroup Holding AG Provides global air catering and hospitality, provisioning and logistics, HNA Group Co., Ltd. and onboard products and services.

4/4/2016 Trucking Internet Truckstop Provides online freight matching services for the trucking industry. Bregal Sagemount Group LLC

4/4/2016* Air Virgin America Inc. Provides scheduled passenger air travel services. Alaska Air Group, Inc.

3/14/2016* Logistics KLN Investment (US) LLC Provides ocean freight, air freight, trucking, customs brokerage, and Kerry Logistics Holding (US) warehousing services. Limited

3/14/2016* Logistics Coastal Pacific Xpress Provides refrigerated carrier services specializing in the shipping of VersaCold North America Inc. perishable and ambient products throughout the U.S. and Canada. Transportation Solutions Limited 3/9/2016* Air Avjet Corporation Provides aircraft management and charter services. Jet Aviation AG

3/8/2016 Logistics Almacenes De Provides temperature controlled logistics solutions to manufacturers AGRO Merchants Group, Productos Congelados, and retailers. LLC Insofrisa S.A And 3/1/2016 Equipment Interstar Fleet Services Provider of emergency road service repair solutions for the TRAC Intermodal LLC intermodal and commercial trucking industries.

2/29/2016 Air Aero Express Logistics Provides air freight services in Singapore. Midnite Air Corp. Pte Ltd

2/11/2016 Logistics Advanced Distribution Provides manufacturing services and logistics services through cross Dicom Transportation Services docking facilities. Group, L.P.

2/9/2016 Logistics VersaCold North Provides refrigerated truckload hauling services. Versacold International America Transportation Corporation Solutions Limited 2/3/2016 Marine Alliance Supply Provides supply services for commercial and industrial shippers in the Ship Supply Of Florida, Inc. Management Ltd. U.S. Gulf of Mexico and South Eastern U.S.

2/2/2016 Marine Global Distribution and Provides various freight transportation services in the U.S. and Rockfarm Supply Chain Logistics LLC internationally. Solutions Inc. *Denotes pending transactions

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2016E EBITDA

Logistics Providers 9.8x Logistics Providers 8.6x

Rail & Rail Services 8.6x Rail & Rail Services 8.6x

Marine 8.1x Marine 7.3x

Transportation Trucking 5.4x 5.6x Equipment Transportation 5.1x Equipment Trucking 5.2x

AVERAGE REVENUE GROWTH (2012 – 2015) AVERAGE REVENUE GROWTH (2015 – 2017P)

Rail & Rail Services 6.8% Logistics Providers 7.2%

Trucking 5.7% Trucking 5.8%

Transportation Transportation 4.4% 1.9% Equipment Equipment

Logistics Providers 3.8% Marine (0.7%)

Marine 1.3% Rail & Rail Services (1.7%)

AVERAGE EBITDA GROWTH (2012 – 2015) AVERAGE EBITDA GROWTH (2015 – 2017P)

Trucking 14.6% Logistics Providers 11.8%

Transportation 14.4% Marine 10.7% Equipment

Rail & Rail Services 14.0% Trucking 8.2%

Transportation Logistics Providers 8.4% 1.5% Equipment

Marine 3.7% Rail & Rail Services (0.7%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

STOCK PRICE PERFORMANCE

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

Transportation Equipment 14.1% S&P 500 (1.7%)

Marine 2.0% Logistics Providers (9.3%)

S&P 500 0.8% Rail & Rail Services (26.0%)

Rail & Rail Services 0.8% Marine (26.2%)

Logistics Providers 0.6% Trucking (30.5%)

Trucking (3.8%) Transportation Equipment (33.0%)

TRAILING TWELVE MONTHS

(Indexed to May 11, 2015)

10%

(10%)

(20%)

(30%)

(40%)

(50%) May-11-2015 Aug-11-2015 Nov-11-2015 Feb-11-2016 May-11-2016

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.

RECENTLY CLOSED T&L TRANSACTIONS

has merged with a portfolio company of a portfolio company of a portfolio company of a portfolio company of

a division of has been acquired by has acquired

has been acquired by has been acquired by in a recapitalization by has been acquired by a portfolio company of and

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

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

DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIR TRANSPORTATION

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

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 at www.harriswilliams.com/industries

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

PUBLIC COMPARABLES

Logistics Providers Agility Public Warehousing Company K.S.C.P. $1,867 $1.66 7.8% (33.3%) $2.50 66.5% 10.5x 7.5x 6.5x NA NA Air Transport Services Group, Inc. 1,174 13.21 (9.1%) 26.4% 15.53 85.1% 5.3x 4.6x 5.9x 5.5x 5.3x Atlas Air Worldwide Holdings, Inc. 2,704 46.58 19.5% (17.6%) 59.47 78.3% 7.9x 6.2x 7.4x 7.3x 7.2x CH Robinson Worldwide Inc. 11,154 72.59 1.0% 11.7% 76.10 95.4% 12.7x 12.2x 12.0x 11.5x 10.9x Deutsche Post AG 39,525 30.22 10.1% (5.5%) 33.51 90.2% 11.3x 11.3x 10.9x 7.3x 6.8x DSV A/S 7,832 43.41 1.7% 26.3% 44.56 97.4% 15.3x 15.0x 15.8x 12.6x 11.5x Echo Global Logistics, Inc. 851 23.09 (10.5%) (25.2%) 34.35 67.2% NM NM 18.0x 9.5x 7.8x Expeditors International of Washington Inc. 7,692 47.80 0.7% 0.2% 51.80 92.3% 12.0x 11.1x 10.3x 9.8x 9.2x FedEx Corporation 48,941 161.29 (1.3%) (7.0%) 185.19 87.1% 7.2x 6.8x 6.7x 6.4x 5.8x Forward Air Corp. 1,365 43.76 (1.3%) (16.8%) 54.99 79.6% 13.0x 10.8x 9.5x 8.6x 7.6x Hub Group Inc. 1,299 38.96 4.3% (5.2%) 44.00 88.5% 11.0x 9.6x 7.8x 8.4x 7.9x JB Hunt Transport Services Inc. 10,345 83.35 0.5% (3.5%) 89.43 93.2% 11.2x 9.3x 9.6x 9.2x 8.4x Kuehne + Nagel International AG 15,718 138.82 (3.9%) (3.9%) 146.55 94.7% 15.9x 15.1x 14.4x 14.2x 13.5x Landstar System Inc. 2,737 66.15 4.0% 4.8% 73.60 89.9% 11.0x 10.1x 10.1x 10.4x 9.7x Panalpina World Transport Holding Ltd. 2,388 119.13 7.5% (15.7%) 136.55 87.2% 19.5x 16.7x 16.5x 10.9x 9.2x Roadrunner Transportation Systems, Inc. 723 8.21 (29.2%) (68.0%) 28.51 28.8% 10.8x 6.7x 6.3x 5.1x 4.9x Ryder System, Inc. 9,308 70.11 13.2% (25.8%) 97.12 72.2% 5.8x 5.1x 5.2x 5.0x 4.8x TransForce Inc. 2,508 18.81 8.7% (17.9%) 21.76 86.5% 13.1x 8.2x 7.5x 7.6x 7.4x United Parcel Service, Inc. 99,670 102.45 (1.8%) 2.5% 107.32 95.5% 13.8x 12.1x 10.1x 9.6x 9.1x Universal Logistics Holdings, Inc. 612 14.20 (5.7%) (29.0%) 22.72 62.5% 6.9x 6.2x 5.7x 5.8x 5.4x World Fuel Services Corp. 3,330 45.22 (6.0%) (11.6%) 51.81 87.3% 12.2x 11.4x 11.1x 9.7x 8.7x XPO Logistics, Inc. 8,778 27.75 (2.7%) (42.5%) 50.96 54.5% NM NM 14.3x 7.2x 6.0x Median 0.6% (9.3%) 87.2% 11.2x 9.9x 9.8x 8.6x 7.8x Trucking ArcBest Corporation $450 $17.46 (14.1%) (51.9%) $36.91 47.3% 5.5x 3.5x 2.9x 2.7x 2.4x Celadon Group Inc. 805 9.94 2.9% (60.1%) 25.41 39.1% 9.5x 8.1x 6.9x 5.6x 5.0x Covenant Transportation Group, Inc. 617 20.38 (9.1%) (32.0%) 32.18 63.3% 7.0x 5.0x 4.8x 4.9x 4.5x Heartland Express, Inc. 1,406 17.73 2.8% (15.9%) 22.13 80.1% 8.6x 8.1x 7.2x 6.4x 6.0x Knight Transportation Inc. 2,235 26.79 8.9% (11.0%) 30.79 87.0% 9.8x 8.0x 8.1x 7.6x 6.9x Marten Transport Ltd. 603 18.64 8.1% (17.2%) 23.84 78.2% 6.1x 4.8x 4.7x 4.3x 4.0x Old Dominion Freight Line Inc. 5,494 64.43 (3.9%) (10.5%) 74.86 86.1% 10.1x 8.6x 8.3x 7.8x 7.1x P.A.M. Transportation Services, Inc. 261 20.14 (24.3%) (65.1%) 62.79 32.1% 7.9x 6.1x 4.3x NA NA Saia, Inc. 786 26.77 (2.0%) (35.7%) 45.24 59.2% 7.5x 4.3x 5.1x 5.0x 4.6x Swift Transportation Company 3,442 16.65 (3.6%) (32.9%) 25.23 66.0% 8.0x 6.1x 5.8x 5.3x 5.0x Universal Logistics Holdings, Inc. 612 14.20 (5.7%) (29.0%) 22.72 62.5% 6.9x 6.2x 5.7x 5.8x 5.4x USA Truck Inc. 284 19.76 25.6% (19.8%) 24.93 79.3% 5.6x 4.4x 5.6x 5.2x 4.9x Werner Enterprises Inc. 1,841 24.80 (5.2%) (10.6%) 29.34 84.5% 6.0x 5.6x 4.9x 4.5x 4.2x YRC Worldwide Inc. 1,155 8.42 (5.9%) (43.3%) 21.37 39.4% 6.1x 4.8x 4.3x 3.5x 3.1x Median (3.8%) (30.5%) 64.7% 7.3x 5.9x 5.4x 5.2x 4.9x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

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 May-15 Nov-15 Current 2016E 2017P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,140 $38.74 (2.5%) (31.2%) $57.93 66.9% 6.6x 6.1x 4.5x 4.5x NA Canadian National Railway Company 54,120 59.57 (4.2%) (6.6%) 65.27 91.3% 12.5x 11.5x 10.7x 11.1x 10.5x Canadian Pacific Railway Limited 27,323 137.84 1.9% (24.6%) 172.00 80.1% 14.9x 11.8x 11.1x 11.0x 10.3x CSX Corp. 34,190 25.89 4.4% (27.5%) 36.07 71.8% 9.0x 7.4x 7.3x 7.3x 6.9x FreightCar America Inc. 83 14.11 (5.9%) (42.2%) 25.13 56.1% 8.7x 3.8x 1.4x 1.7x 2.3x Genesee & Wyoming Inc. 5,727 60.18 0.6% (32.9%) 89.74 67.1% 12.2x 10.5x 9.9x 9.7x 9.1x The Greenbrier Companies, Inc. 1,005 27.03 (10.8%) (55.6%) 63.78 42.4% 6.5x 3.1x 1.9x 2.1x 3.3x Kansas City Southern 12,556 91.77 4.4% (7.0%) 101.24 90.6% 12.0x 11.3x 11.4x 11.1x 10.2x Norfolk Southern Corporation 35,456 88.82 9.0% (10.3%) 99.84 89.0% 8.7x 8.6x 8.7x 8.8x 8.2x Trinity Industries Inc. 5,397 17.68 (3.8%) (41.9%) 31.80 55.6% 5.6x 4.7x 3.8x 4.1x 4.8x Union Pacific Corporation 83,579 84.49 6.7% (20.1%) 105.70 79.9% 9.6x 8.1x 8.5x 8.5x 8.0x Westinghouse Air Brake Technologies Corporation 7,704 79.50 1.1% (19.9%) 103.07 77.1% 15.8x 11.7x 11.5x 11.3x 11.2x Median 0.8% (26.0%) 74.5% 9.3x 8.3x 8.6x 8.6x 8.2x Marine Aegean Marine Petroleum Network Inc. $943 $7.29 (2.0%) (49.8%) $15.25 47.8% 13.2x 10.8x 8.6x 7.0x 6.6x Costamare Inc. 2,155 9.06 (3.3%) (55.0%) 20.43 44.3% 9.8x 8.0x 6.7x 6.6x 6.8x Diana Shipping Inc. 660 3.07 2.3% (55.6%) 8.27 37.1% 17.5x NM NM NM NM Kirby Corporation 4,147 63.61 7.1% (22.4%) 83.03 76.6% 8.4x 7.3x 7.6x 8.4x 8.0x Matson, Inc. 1,829 31.62 (12.7%) (25.8%) 53.18 59.5% 8.1x 10.4x 6.2x 5.5x 5.4x Neptune Orient Lines Limited 5,407 0.94 0.5% 14.7% 0.95 99.6% NM 12.1x NM 11.4x 10.0x Nordic American Tankers Limited 1,613 14.89 6.0% 24.6% 17.45 85.3% 14.5x 9.2x 7.5x 7.9x 8.9x Rand Logistics, Inc. 213 0.93 1.7% (72.8%) 3.67 25.2% 8.1x 8.3x 8.6x 7.3x 5.8x SEACOR Holdings Inc. 1,506 54.12 3.9% (26.7%) 74.77 72.4% 8.9x 8.7x 10.1x 7.6x 7.3x Wilh. Wilhelmsen ASA 2,178 5.11 6.3% (24.7%) 6.33 80.8% 16.2x 10.1x 11.8x 5.2x 4.8x Median 2.0% (26.2%) 65.9% 9.8x 9.2x 8.1x 7.3x 6.8x Transportation Equipment Accuride Corp. $395 $1.59 16.9% (59.2%) $4.67 34.0% 6.4x 5.4x 5.6x 5.6x 5.5x Dana Holding Corporation 2,683 12.23 (4.5%) (43.8%) 22.34 54.8% 6.0x 4.8x 4.5x 4.1x 3.9x Gentherm Incorporated 1,265 35.75 (11.3%) (33.0%) 57.95 61.7% 14.3x 11.3x 8.1x 7.6x 6.8x Spartan Motors Inc. 172 5.94 30.8% 39.4% 6.21 95.7% 13.9x 11.4x NM 15.8x 11.6x Wabash National Corp. 1,032 14.16 14.1% (5.4%) 15.13 93.6% 7.3x 5.0x 4.3x 4.9x 5.9x Median 14.1% (33.0%) 61.7% 7.3x 5.4x 5.1x 5.6x 5.9x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P Transportation & Logistics Logistics Providers Agility Public Warehousing Company K.S.C.P. $5,039 $4,873 $4,633 $4,294 NA NA (5.2%) NA $254 $296 $265 $285 NA NA 3.9% NA Air Transport Services Group, Inc. 607 580 590 619 625 651 0.6% 2.5% 163 158 179 198 212 223 6.7% 6.0% Atlas Air Worldwide Holdings, Inc. 1,632 1,643 1,785 1,807 1,897 1,937 3.5% 3.5% 296 307 344 390 375 379 9.6% (1.5%) CH Robinson Worldwide Inc. 11,359 12,752 13,470 13,476 13,611 14,551 5.9% 3.9% 751 731 797 915 974 1,026 6.8% 5.9% Deutsche Post AG 73,191 75,621 68,547 64,328 69,539 72,015 (4.2%) 5.8% 4,129 5,116 4,469 3,279 5,403 5,768 (7.4%) 32.6% DSV A/S 7,937 8,439 7,896 7,403 10,752 11,252 (2.3%) 23.3% 519 543 486 497 631 696 (1.5%) 18.4% Echo Global Logistics, Inc. 758 884 1,173 1,512 1,851 2,196 25.9% 20.5% 27 27 36 45 89 108 18.9% 54.7% Expeditors International of Washington Inc. 5,992 6,080 6,565 6,617 7,004 7,350 3.4% 5.4% 571 600 644 767 779 838 10.4% 4.5% FedEx Corporation 42,680 44,287 45,567 47,453 49,899 51,964 3.6% 4.6% 5,367 6,112 6,417 7,141 7,594 8,369 10.0% 8.3% Forward Air Corp. 584 652 781 959 1,022 1,089 18.0% 6.6% 104 107 127 141 161 179 10.7% 12.8% Hub Group Inc. 3,124 3,374 3,571 3,526 3,614 3,818 4.1% 4.1% 134 138 135 154 160 169 4.8% 4.6% JB Hunt Transport Services Inc. 4,058 4,527 5,083 5,516 6,634 7,294 10.8% 15.0% 759 830 926 1,055 1,127 1,230 11.6% 8.0% Kuehne + Nagel International AG 18,699 19,290 17,618 16,711 21,768 22,679 (3.7%) 16.5% 979 1,070 987 1,022 1,106 1,173 1.4% 7.1% Landstar System Inc. 2,735 2,628 3,145 3,277 3,237 3,461 6.2% 2.8% 223 201 250 271 263 279 6.6% 1.6% Panalpina World Transport Holding Ltd. 7,227 7,589 6,752 5,848 6,318 6,539 (6.8%) 5.7% 92 161 150 141 214 254 15.4% 34.4% Roadrunner Transportation Systems, Inc. 1,073 1,361 1,873 1,995 2,014 2,119 23.0% 3.1% 81 99 121 130 142 153 17.0% 8.4% Ryder System, Inc. 6,257 6,419 6,639 6,572 6,759 7,086 1.7% 3.8% 1,396 1,473 1,637 1,764 1,842 1,931 8.1% 4.6% TransForce Inc. 2,822 2,620 2,817 2,617 2,924 2,974 (2.5%) 6.6% 392 318 361 313 322 341 (7.2%) 4.3% United Parcel Service, Inc. 54,127 55,438 58,232 58,363 61,812 64,807 2.5% 5.4% 3,201 8,868 6,864 9,747 10,442 11,015 44.9% 6.3% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,124 1,180 2.9% 2.3% 96 105 115 108 106 114 4.2% 2.6% World Fuel Services Corp. 38,945 41,562 43,386 30,380 29,545 32,360 (7.9%) 3.2% 287 301 319 304 353 390 2.0% 13.3% XPO Logistics, Inc. 279 702 2,357 7,623 15,250 16,545 NM NM (25) (20) 95 417 1,245 1,440 NM NM Total $290,163 $302,356 $303,671 $292,025 $317,199 $333,867 3.8% 7.2% $19,796 $27,540 $25,722 $29,084 $33,538 $36,074 8.4% 11.8% Trucking ArcBest Corporation $2,066 $2,300 $2,613 $2,667 $2,745 $2,879 8.9% 3.9% $70 $104 $155 $165 $165 $190 33.0% 7.5% Celadon Group Inc. 475 489 615 770 1,082 1,137 17.5% 21.5% 103 100 97 118 147 163 4.7% 17.5% Covenant Transportation Group, Inc. 527 539 579 640 707 758 6.7% 8.8% 71 65 89 130 124 137 22.1% 2.6% Heartland Express, Inc. 546 582 871 736 720 750 10.5% 0.9% 138 149 208 193 215 232 12.0% 9.4% Knight Transportation Inc. 752 792 926 1,062 1,191 1,278 12.2% 9.7% 184 192 239 281 295 321 15.1% 7.0% Marten Transport Ltd. 638 659 673 665 695 742 1.4% 5.6% 101 110 115 127 140 152 7.7% 9.4% Old Dominion Freight Line Inc. 2,135 2,338 2,788 2,972 3,118 3,378 11.7% 6.6% 396 460 587 660 711 781 18.6% 8.8% P.A.M. Transportation Services, Inc. 298 313 317 355 NA NA 6.1% NA 41 50 55 63 NA NA 15.3% NA Saia, Inc. 1,099 1,139 1,272 1,221 1,222 1,288 3.6% 2.7% 107 126 145 155 153 172 13.2% 5.3% Swift Transportation Company 3,976 4,118 4,299 3,782 4,303 4,496 (1.7%) 9.0% 573 577 583 606 651 700 1.9% 7.4% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,124 1,180 2.9% 2.3% 96 105 115 108 106 114 4.2% 2.6% USA Truck Inc. 512 555 602 508 476 501 (0.3%) (0.7%) 20 35 60 56 54 58 41.6% 1.8% Werner Enterprises Inc. 2,036 2,029 2,139 2,094 2,138 2,237 0.9% 3.4% 318 296 318 374 407 432 5.6% 7.4% YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,821 5,005 (0.1%) 1.8% 198 199 197 259 328 369 9.3% 19.5% Total $20,948 $21,752 $23,955 $23,434 $24,342 $25,628 5.7% 5.8% $2,415 $2,567 $2,962 $3,294 $3,495 $3,820 14.6% 8.2%

*Excluded from averages

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MAY 2016

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P 2012 2013 2014 2015 2016E 2017P '12-15 '15-17P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $712 $751 $733 $889 $823 $674 7.7% (12.9%) $145 $179 $204 $272 $251 NA 23.3% NA Canadian National Railway Company 9,952 9,954 10,478 9,089 9,304 9,795 (3.0%) 3.8% 4,624 4,568 4,900 4,630 4,872 5,146 0.0% 5.4% Canadian Pacific Railway Limited 5,568 5,631 5,582 4,722 4,901 5,172 (5.3%) 4.7% 1,774 2,194 2,434 2,246 2,466 2,649 8.2% 8.6% CSX Corp. 11,763 12,026 12,669 11,811 11,218 11,694 0.1% (0.5%) 4,523 4,577 4,803 4,799 4,613 4,939 2.0% 1.4% FreightCar America Inc. 677 290 599 773 718 624 4.5% (10.2%) 41 (8) 17 51 50 38 7.9% (13.7%) Genesee & Wyoming Inc. 875 1,569 1,639 2,000 2,010 2,100 31.7% 2.5% 277 534 574 586 591 625 28.4% 3.3% The Greenbrier Companies, Inc. 1,736 1,685 2,121 2,507 2,771 2,157 13.0% (7.2%) 152 145 237 437 471 319 42.1% (14.6%) Kansas City Southern 2,239 2,369 2,577 2,419 2,388 2,552 2.6% 2.7% 872 962 1,106 1,098 1,131 1,222 8.0% 5.5% Norfolk Southern Corporation 11,040 11,245 11,624 10,511 10,076 10,601 (1.6%) 0.4% 4,046 4,179 4,531 3,943 4,031 4,320 (0.9%) 4.7% Trinity Industries Inc. 3,812 4,365 6,170 6,393 5,792 5,211 18.8% (9.7%) 730 963 1,400 1,527 1,355 1,198 27.9% (11.4%) Union Pacific Corporation 19,686 20,684 22,560 20,397 20,965 21,900 1.2% 3.6% 8,505 9,223 10,657 10,064 9,898 10,508 5.8% 2.2% Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,308 3,407 3,475 11.4% 2.5% 436 485 588 672 688 685 15.5% 0.9% Total $70,451 $73,136 $79,795 $74,820 $74,373 $75,955 6.8% (1.7%) $26,125 $28,000 $31,451 $30,325 $30,416 $31,648 14.0% (0.7%) Marine Aegean Marine Petroleum Network Inc. $7,259 $6,335 $6,662 $4,233 $4,550 $4,831 (16.5%) 6.8% $85 $75 $98 $113 $136 $145 10.1% 13.2% Costamare Inc. 386 414 484 490 487 476 8.3% (1.5%) 238 258 318 318 326 318 10.1% 0.0% Diana Shipping Inc. 221 164 176 158 121 139 (10.6%) (6.0%) 124 53 50 25 (2) 14 (41.2%) (25.2%) Kirby Corporation 2,113 2,242 2,566 2,148 1,874 1,905 0.5% (5.8%) 509 582 647 573 494 509 4.1% (5.8%) Matson, Inc. 1,560 1,637 1,714 1,885 2,077 2,152 6.5% 6.8% 175 172 203 298 337 345 19.5% 7.7% Neptune Orient Lines Limited 9,512 8,831 8,617 5,383 5,874 6,061 (17.3%) 6.1% 96 131 294 255 429 525 38.6% 43.5% Nordic American Tankers Limited 131 244 351 446 288 272 50.5% (21.9%) 13 (21) 60 211 201 179 NM (7.9%) Rand Logistics, Inc. 109 119 129 131 145 144 6.3% 4.9% 28 25 29 30 29 36 2.7% 9.5% SEACOR Holdings Inc. 1,308 1,247 1,319 1,055 1,089 1,156 (6.9%) 4.7% 165 194 241 147 199 205 (3.7%) 18.0% Wilh. Wilhelmsen ASA 395 325 285 313 2,345 2,370 (7.5%) NM 227 154 140 185 429 440 (6.6%) 54.2% Total $22,993 $21,559 $22,303 $16,241 $18,850 $19,506 1.3% (0.7%) $1,658 $1,624 $2,080 $2,154 $2,578 $2,716 3.7% 10.7% Transportation Equipment Accuride Corp. $795 $643 $705 $686 $678 $691 (4.8%) 0.4% $65 $43 $75 $77 $70 $78 5.9% 0.8% Dana Holding Corporation 7,224 6,769 6,617 6,060 5,847 6,207 (5.7%) 1.2% 753 706 705 618 651 690 (6.4%) 5.6% Gentherm Incorporated 555 662 811 856 946 1,043 15.6% 10.4% 67 84 135 153 167 185 31.4% 9.9% Spartan Motors Inc. 471 470 507 550 554 578 5.4% 2.5% 16 6 9 0 11 15 NM NM Wabash National Corp. 1,462 1,636 1,863 2,027 1,958 1,825 11.5% (5.1%) 108 142 161 219 213 175 26.5% (10.6%) Total $10,506 $10,179 $10,504 $10,180 $9,984 $10,346 4.4% 1.9% $1,008 $981 $1,084 $1,066 $1,111 $1,142 14.4% 1.5%

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TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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