Tra Nsportation & Logistics

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

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. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, 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. TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

WHAT WE’RE READING

CONTENTS LOGISTICS | RETAILERS LEASE WAREHOUSE SPACE AT RECORD PACE . M &A TRANSACTIONS . PUBLIC M ARKETS OVERVIEW Firms leased 70.1 million square feet of industrial space in the second quarter of 2016, the most in ov er 30 years of data and up 6% from the same quarter last year, . STOCK PRICE PERFORM ANCE real-estate brokerage Cu shman & Wakefield Inc. said in a report Monday. In a . OUR GROUP separate report, brokerage CBRE Inc. said warehouse availability declined for a 25th consecutiv e quarter to 8.8%. Wall Street Journal CONTACTS TRUCKING | BUSIER SPOT MARKET MAY SIGNAL A U.S. TRUCK RATE SPIKE UNITED STATES Pricing trends in the late second quarter may foreshadow a spike in higher transportation costs ahead for U.S. shippers. T ruckload spot market capacity got a Frank Mountcastle bit tighter in June, and pricing climbed higher, as a seasonal increase in freight M anaging Director v olumes, coupled with the produce season and a nationwide roadside truck [email protected] inspection program, filled more trailers. D AT ’s average dry van port market rates, +1 (804) 915-0124 excluding fuel su rcharges, rose from the mid-$1.30s into the $1.40s in June and shot Jason Bass th up to $1.49 in the week ending July 9 . This should be a warning to brokers and M anaging Director shippers that the excess layer of truck capacity depressin g transportation rates in jbass@harrisw illiams.com the U.S. is not v ery thick or deep, and could dissipate quickly, especially as freight +1 (804) 915-0132 demand picks up this fall. Joe Conner Journal of Commerce M anaging Director jconner@harrisw illiams.com MARINE | LONG BEACH VOLUME RISES AS PEAK SEASON BEGINS +1 (804) 915-0151 Jeff Burkett Laden containerized imports in Long Beach increased 5.5% in June from the same Director month in 2015 to 313,526 twenty-foot-equiv alent units as the second-largest port [email protected] transitions to the su mmer-fall peak-shipping season. Total container v olume in Lon g +1 (804) 932-1334 Beach, including laden export containers and empties, increased 3.4% compared with June 2015 to 603,339 TEUs. Loaded export containers declined slightly by 0.1% Jershon Jones Director to 128,009 TEUs. Exports could remain weak if the dollar strengthen s against other jjones@harrisw illiams.com curren cies as it has done in recent weeks, which would make U.S. exports more +1 (804) 932-1356 costly for ov erseas buyers. Journal of Commerce Jeff Kidd Vice President jkidd@harrisw illiams.com RAIL | RAIL PICKS UP STEAM +1 (804) 915-0178

From consu mer goods to automobiles and perishable products, an increasin g James O’Malley Vice President number of shippers are findin g that transporting products v ia North America’s [email protected] Class I railroads remains a cost-effectiv e method of transport.Rail and intermodal +1 (804) 915-0165 transportation prov iders say they are supporting the supply chain with faster deliv eries, infrastructure improv ements and improv ed tracking capabilities. At the same time, rail and intermodal prov iders are seein g an uptick in demand driv en by increased regulations within the trucking industry. SDC Executiv e EUROPE

AIR | AIR CARGO FIRMS FEEL PRESSURE FROM LOWER FREIGHT PRICES Jeffery Perkins M anaging Director jperkins@harrisw illiams.com Following a sharp fall in freight prices, air cargo companies are set to trim their +49 (0) 69 3650638 00 fleets and jobs further to battle ov ercapacity while looking for new partnerships and products to carry, industry executiv es and analysts say. Global trade volumes fell for the first time since 2009 by 1.7% between the final quarter of 2015 and the first quarter of 2016 and the International Air Transport Association has lowered its growth forecast for air freight demand in 2016 to 2.1% from 3%. And while the impact of Britain's Brexit v ote on the UK air freight market remains un certain, p rices for air freight generally are down about 15-20% compared with last year due to capacity outstripping demand by a factor of three. Reuters

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 7/18/2016 Logistics Span Alaska Provides LCL freight consolidation and forwarding services to Alaska. Matson Logistics, Inc.

7/16/2016 Logistics Farren International, LLC Provides transportation, rigging and related value-added solutions EZE Truck Holdings, Inc. such as warehousing and kitting.

7/7/2016 Logistics Global Transportation Provides freight forwarding and 3PL logistics. American Fast Freight Services, Inc.

7/5/2016 Logistics Jones Motor Group Provides flatbed, heavy haul, dry van, refrigerated and LTL Transport Investments, Inc. transportation services.

6/29/2016 Marine R.S. Stern, Inc. Provides custom, last mile logistics services to supply critical Ship Supply International perishable goods and required deck and engine products.

6/21/2016 Logistics Dematic Provides supply chain optimisation and automation. KION Group

6/20/2016 Logistics G-Force Shipping Provides transportation management services. Blue-Grace Logistics LLC

6/9/2016 Logistics American Global Provides customized logistics solutions and offers end-to-end ocean NexPhase Capital Logistics LLC and air transportation.

6/3/2016 Logistics Isotank Transport Provides container transport, cleaning, and depot services. Quality Distribution, Inc. Services Ltd.

6/2/2016 Trucking Lodeso, Inc. Provides last-mile delivery services. Schneider National, Inc.

6/2/2016 Trucking Watkins & Shepard Provides LTL, dry van, flatbed, and freight management services. Schneider National, Inc. Trucking, Inc.

6/1/2016 Marine Apex Maritime Co., Inc. Provides ocean, air, customer brokerage logistics, and freight Kerry Logisics Network Ltd. solutions.

6/1/2016 Logistics Hybrid Logistics, Inc. and Provides logistics services including flatbed, rail-intermodal, LTL, TL, CAI International, Inc. General Transportation and freight management. Services, Inc. 5/12/2016 Equipment Direct ChassisLink, Inc. Provides chassis leasing and chassis / container management EQT Infrastructure Partners services.

5/11/2016 Rail Heart of Texas Railraod Operates railway track between Lometa and Brady in Texas. BROE Management Co. LP LLC

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. *Denot es pending t ransactions

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2016E EBITDA

Logistics Providers 10.6x Rail & Rail Services 9.1x

Rail & Rail Services 9.0x Logistics Providers 8.6x

Marine 7.4x Marine 7.0x

Trucking 5.5x Trucking 5.4x Transportation 4.8x Transportation Equipment 5.3x Equipment

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

Rail & Rail Services 7.2% Logistics Providers 5.7%

Trucking 5.3% Trucking 1.7%

Transportation Logistics Providers 4.7% 1.2% Equipment

Transportation 3.4% Equipment Marine (5.2%)

Marine (0.0%) Rail & Rail Services (6.6%)

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

Transportation 17.0% Logistics Providers 12.6% Equipment

Trucking 15.9% Marine 5.2%

Rail & Rail Services 14.5% Trucking 2.6%

Transportation Logistics Providers 8.3% 0.1% Equipment

Marine 2.7% Rail & Rail Services (6.0%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

STOCK PRICE PERFORMANCE

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

Trucking 3.9% S&P 500 2.5%

Rail & Rail Services 3.7% Logistics Providers (6.1%)

S&P 500 2.7% Rail & Rail Services (13.1%)

Logistics Providers (0.6%) Marine (22.1%)

Transportation Equipment (4.3%) Trucking (24.6%)

Marine (6.3%) Transportation Equipment (28.3%)

TRAILING TWELVE MONTHS

(Indexed to July 15, 2015)

10%

(5%)

(10%)

(15%)

(20%)

(25%)

(30%)

(35%)

(40%)

(45%) Jul-15-2015 Oct-15-2015 Jan-15-2016 Apr-15-2016 Jul-15-2016

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

OUR GROUP

Harris Williams & Co. is a leading adv isor to the t ransportation and logistics M&A market. Our Transportation & Logistics Group serv es companies in a broad range of attractiv e niches, including third-party logistics (3PL), tru ck, rail, marine and air transportation, transportation equipment, and the automotiv e and heav y duty v ehicle 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

an operating company of has been acquired by has acquired

has been acquired by has been acquired by has been acquired by in a recapitalization 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

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

DEEP EXPERIENCE ACROSS T&L SECTORS

T H IR D-PARTY LOGIST ICS

R AIL & R AIL SERVICES

MAR IN E TRANSPORTATION

TRANSPORTATION EQUIPMENT

N ICH E TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEH ICLE

AIR TRANSPORTATION

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

OUR FIRM

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

Aerospace, Defense Building Products Business Consumer Energy, Power & Government & M aterials Services & Infrastructure Services

Healthcare Industrials Specialty Technology, TransportationTransportation & Life Sciences Distribution M edia & Telecom & Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Richmond (Headquarters) Frankfurt Tw o International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 24th Floor 9th Floor 60325 Frankfurt Boston, M assachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00

Cleveland San Francisco London 1900 East 9th Street 575 M arket Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260 Minneapolis 222 South 9th Street Suite 3350 NETWORK OFFICES M inneapolis, M innesota 55402 Phone: +1 (612) 359-2700 Beijing New Delhi Hong Kong Shanghai Mumbai

PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016 PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jul-15 Jan-16 Current 2016E 2017P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $1,831 $1.56 (3.4%) (27.5%) $2.21 70.2% 9.6x 5.5x 6.0x NA NA Air Transport Services Group, Inc. 1,250 14.11 3.8% 33.0% 15.53 90.9% 5.1x 4.7x 6.2x 5.8x 4.9x Atlas Air Worldwide Holdings, Inc. 2,597 42.79 (7.0%) (19.2%) 57.77 74.1% 7.3x 8.5x 10.6x 6.1x 5.6x C.H. Robinson Worldwide, Inc. 11,199 72.45 (0.7%) 11.8% 76.10 95.2% 12.1x 10.6x 11.9x 11.6x 11.1x Deutsche Post AG 38,956 28.40 (3.0%) (9.3%) 31.71 89.6% 12.8x 11.5x 12.6x 7.2x 6.8x DSV A/S 9,276 42.00 (4.0%) 23.8% 46.66 90.0% 12.3x 12.3x 17.3x 15.2x 12.6x Echo Global Logistics, Inc 856 23.50 2.7% (28.6%) 33.43 70.3% NM 13.3x 14.7x 10.3x 8.5x Expeditors International of Washington, Inc. 8,138 49.99 1.5% 8.9% 51.80 96.5% 10.9x 9.6x 10.8x 11.3x 10.7x FedEx Corporation 50,273 159.95 (0.6%) (6.4%) 173.00 92.5% 10.6x 8.0x 9.2x 6.1x 5.6x Forward Air Corporation 1,419 45.28 (0.7%) (14.8%) 53.30 85.0% 14.0x 10.8x 10.0x 9.1x 8.2x Hub Group, Inc. Class A 1,366 40.61 1.9% (2.7%) 44.00 92.3% 10.8x 6.6x 8.2x 8.1x 7.7x J.B. Hunt Transport Services, Inc. 10,682 85.32 5.4% (0.5%) 89.43 95.4% 11.0x 8.4x 9.9x 9.6x 8.8x Kuhne & Nagel International AG 15,738 138.91 (1.8%) 4.4% 147.27 94.3% 14.8x 13.7x 14.7x 13.8x 13.2x Landstar System, Inc. 2,956 71.05 8.1% 3.0% 73.60 96.5% 11.0x 9.2x 11.5x 11.7x 11.0x Panalpina Welttransport (Holding) AG 2,458 119.57 (1.6%) (2.9%) 131.39 91.0% 13.6x 11.8x 13.7x 13.3x 10.8x Roadrunner Transportation Systems, Inc. 735 8.51 11.8% (67.4%) 26.95 31.6% 10.3x 6.0x 6.3x 6.0x 5.3x Ryder System , Inc. 9,121 67.06 2.1% (26.9%) 93.86 71.4% 6.4x 4.9x 5.4x 5.0x 4.7x TransForce Inc. 2,586 19.00 0.6% (6.1%) 20.69 91.8% 10.2x 8.4x 8.0x 7.6x 7.3x United Parcel Service, Inc. Class B 107,793 110.29 5.5% 12.8% 110.74 99.6% 11.8x 9.8x 11.2x 10.3x 9.8x Universal Logistics Holdings, Inc. 603 13.89 (3.6%) (37.3%) 22.58 61.5% 7.5x 5.5x 5.7x 5.8x 5.4x XPO Logistics, Inc. 8,659 27.17 (6.2%) (41.0%) 47.30 57.4% NM 16.1x 12.8x 7.0x 6.0x Median (0.6%) (6.1%) 90.9% 10.9x 9.2x 10.6x 8.6x 8.0x Trucking ArcBest Corporation $452 $17.58 4.1% (45.3%) $34.97 50.3% 4.4x 2.9x 2.8x 3.2x 2.7x Celadon Group, Inc. 773 8.61 (13.9%) (61.2%) 22.95 37.5% 9.2x 6.1x 6.4x 5.7x 5.8x Covenant Transportation Group, Inc. Class A 547 19.82 (12.1%) (25.9%) 27.27 72.7% 5.3x 3.8x 3.8x 4.8x 4.5x Heartland Express, Inc. 1,442 18.11 (0.4%) (11.6%) 22.13 81.8% 8.2x 7.1x 7.4x 7.2x 6.7x Knight Transportation, Inc. 2,386 28.25 6.4% (2.4%) 29.00 97.4% 8.7x 6.8x 8.6x 8.6x 7.9x Marten Transport, Ltd. 703 21.56 8.6% (2.9%) 22.88 94.3% 6.1x 4.7x 5.4x 5.1x 4.7x Old Dominion Freight Line, Inc. 5,454 63.53 5.8% (6.6%) 74.86 84.9% 9.1x 7.1x 8.0x 8.1x 7.3x P.A.M. Transportation Services, Inc. 242 17.56 (4.0%) (71.5%) 61.87 28.4% 8.4x 4.7x 4.0x 3.8x 3.5x Saia, Inc. 793 26.60 3.8% (34.9%) 45.24 58.8% 7.1x 3.7x 5.2x 5.2x 4.8x Swift Transportation Company Class A 3,409 16.69 6.1% (30.1%) 24.76 67.4% 7.6x 5.1x 5.7x 5.5x 5.1x Universal Logistics Holdings, Inc. 603 13.89 (3.6%) (37.3%) 22.58 61.5% 7.5x 5.5x 5.7x 5.8x 5.4x USA Truck, Inc. 291 19.92 5.1% (7.9%) 24.00 83.0% 5.0x 4.7x 5.6x 6.1x 5.6x Werner Enterprises, Inc. 1,807 24.22 (1.5%) (12.4%) 29.34 82.5% 6.0x 4.2x 4.6x 5.3x 4.9x YRC Worldwide Inc. 1,184 10.21 13.3% (23.3%) 21.37 47.8% 4.7x 4.7x 4.5x 3.8x 3.4x Median 3.9% (24.6%) 70.0% 7.3x 4.7x 5.5x 5.4x 5.0x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016 PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jul-15 Jan-16 Current 2016E 2017P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,191 $41.97 3.6% (9.6%) $57.93 72.4% 5.7x 4.5x 4.7x 6.0x 7.1x Canadian National Railway Company 55,576 61.21 3.3% 5.6% 66.26 92.4% 10.3x 9.7x 11.0x 11.1x 10.5x Canadian Pacific Railway Limited 27,088 136.50 4.9% (12.9%) 163.00 83.7% 11.5x 9.9x 11.3x 10.6x 10.0x CSX Corporation 35,432 27.02 0.9% (15.3%) 33.10 81.6% 8.3x 6.8x 7.6x 7.9x 7.5x FreightCar America, Inc. 93 15.42 7.8% (27.4%) 24.95 61.8% 5.7x 1.9x 1.5x 2.6x 3.7x Genesee & Wyoming, Inc. Class A 5,858 62.92 (0.4%) (13.2%) 76.34 82.4% 10.9x 8.6x 10.1x 10.2x 9.4x Greenbrier Companies, Inc. 1,255 31.60 10.2% (34.5%) 48.86 64.7% 5.5x 2.3x 2.5x 2.8x 4.3x Kansas City Southern 12,532 91.30 3.2% (3.0%) 101.24 90.2% 11.4x 9.3x 11.4x 11.2x 10.2x Norfolk Southern Corporation 35,618 88.42 5.1% 2.3% 98.75 89.5% 8.2x 8.2x 8.8x 8.7x 8.1x Trinity Industries, Inc. 5,828 20.90 14.6% (19.1%) 30.38 68.8% 4.8x 3.9x 4.1x 5.9x 6.9x Union Pacific Corporation 90,467 92.06 3.7% (5.2%) 99.71 92.3% 9.1x 7.7x 9.2x 9.6x 8.9x Westinghouse Air Brake Technologies Corporation 7,011 72.52 (3.5%) (24.0%) 103.07 70.4% 14.7x 9.1x 10.2x 10.5x 9.8x Median 3.7% (13.1%) 82.0% 8.7x 8.0x 9.0x 9.1x 8.5x Marine Aegean Marine Petroleum Network Inc. $872 $6.41 6.5% (49.0%) $12.67 50.6% NM 10.8x 10.8x 7.1x 6.5x Costamare Inc. 2,063 8.64 (12.6%) (52.4%) 18.93 45.6% 9.1x 6.3x 6.3x 6.5x 6.8x Diana Shipping Inc. 668 2.78 17.3% (63.5%) 8.27 33.6% NM NM NM NM NM Kirby Corporation 4,139 63.92 (9.3%) (18.4%) 78.72 81.2% 8.3x 5.8x 7.6x 8.8x 8.3x Matson, Inc. 1,950 34.00 2.2% (21.6%) 53.18 63.9% 10.0x 7.0x 6.6x 6.6x 6.2x Neptune Orient Lines Limited 5,336 0.96 0.6% 48.0% 0.97 99.0% 9.8x 15.2x NM NM 10.2x Nordic American Tankers Limited 1,550 14.17 (10.4%) (6.3%) 17.45 81.2% 10.0x 7.3x 7.2x 7.9x 9.0x Rand Logistics, Inc. 227 1.05 (19.2%) (67.4%) 3.24 32.5% 7.7x 7.8x 7.0x 7.0x 6.2x SEACOR Holdings Inc. 1,553 58.14 (3.3%) (15.0%) 69.75 83.4% 9.6x 8.9x 10.5x 11.4x 8.7x Wilh. Wilhelmsen ASA 1,820 2.42 (17.2%) (22.7%) 6.02 40.2% NM 12.4x 18.8x 4.8x 5.0x Median (6.3%) (22.1%) 57.3% 9.6x 7.8x 7.4x 7.0x 6.8x Transportation Equipment Accuride Corporation $381 $1.30 (16.7%) (65.4%) $4.19 31.0% 5.9x 4.7x 5.4x 5.3x 5.6x Dana Holding Corporation 2,572 11.33 (5.4%) (43.9%) 20.49 55.3% 5.7x 4.2x 4.0x 4.1x 3.9x Gentherm Incorporated 1,300 36.63 (3.3%) (28.3%) 51.83 70.7% 13.4x 9.6x 8.2x 7.7x 7.0x Spartan Motors, Inc. 223 7.44 22.0% 68.3% 7.49 99.3% 11.3x NM NM 15.4x 9.8x Wabash National Corporation 1,006 13.47 (4.3%) 7.9% 14.97 90.0% 6.1x 4.1x 4.2x 4.3x 5.2x Median (4.3%) (28.3%) 70.7% 6.1x 4.4x 4.8x 5.3x 5.6x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016 PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Grow th ($ 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 Co. K.S.C. $5,061 $4,846 $4,767 $4,330 NA NA (5.1%) NA $258 $289 $276 $292 NA NA 4.2% NA Air Transport Services Group, Inc. 607 580 590 619 725 759 0.6% 10.7% 157 158 179 198 216 266 8.0% 15.9% Atlas Air Worldwide Holdings, Inc. 1,646 1,657 1,799 1,823 1,928 2,084 3.5% 6.9% 296 292 327 271 400 438 (2.9%) 27.0% C.H. Robinson Worldwide, Inc. 11,359 12,752 13,470 13,476 13,300 14,280 5.9% 2.9% 723 740 805 925 969 1,021 8.5% 5.1% Deutsche Post AG 71,303 73,132 75,117 65,681 66,304 67,818 (2.7%) 1.6% 3,517 3,887 4,198 2,984 5,415 5,726 (5.3%) 38.5% DSV A/S 7,750 8,137 8,645 7,563 10,386 10,859 (0.8%) 19.8% 530 543 560 532 615 742 0.1% 18.1% Echo Global Logistics, Inc 758 884 1,173 1,512 1,746 2,035 25.9% 16.0% 34 34 44 54 82 99 16.5% 35.6% Expeditors International of Washington, Inc. 5,981 6,080 6,565 6,617 6,148 6,506 3.4% (0.8%) 571 600 644 767 726 761 10.4% (0.4%) FedEx Corporation 44,287 45,567 47,453 50,365 52,377 62,684 4.4% 11.6% 5,597 6,033 4,951 5,708 8,248 8,977 0.7% 25.4% Forward Air Corporation 584 652 781 959 1,013 1,079 18.0% 6.1% 105 109 128 128 155 174 7.0% 16.4% Hub Group, Inc. Class A 3,124 3,374 3,571 3,526 3,514 3,694 4.1% 2.4% 134 137 136 154 168 178 4.8% 7.5% J.B. Hunt Transport Services, Inc. 5,055 5,585 6,165 6,188 6,576 7,220 7.0% 8.0% 759 825 920 1,054 1,111 1,229 11.6% 8.0% Kuhne & Nagel International AG 18,248 18,529 19,118 17,376 21,248 22,241 (1.6%) 13.1% 956 1,028 1,073 1,062 1,138 1,197 3.6% 6.2% Landstar System, Inc. 2,793 2,665 3,185 3,321 3,123 3,309 5.9% (0.2%) 232 203 276 269 252 272 5.1% 0.4% Panalpina Welttransport (Holding) AG 7,053 7,289 7,327 6,081 5,643 5,840 (4.8%) (2.0%) 102 172 205 179 186 227 20.7% 12.6% Roadrunner Transportation Systems, Inc. 1,073 1,361 1,873 1,995 1,970 2,069 23.0% 1.8% 81 103 125 130 123 138 17.0% 3.2% Ryder System , Inc. 6,257 6,419 6,639 6,572 6,777 7,091 1.7% 3.9% 1,299 1,361 1,505 1,660 1,835 1,927 8.5% 7.7% TransForce Inc. 3,141 3,018 3,363 3,150 3,068 3,122 0.1% (0.4%) 386 319 372 332 337 355 (4.9%) 3.3% United Parcel Service, Inc. Class B 54,064 55,491 58,256 58,050 60,758 63,772 2.4% 4.8% 3,100 8,765 6,889 9,429 10,497 11,022 44.9% 8.1% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,107 1,171 2.9% 1.8% 87 123 114 108 103 110 7.4% 0.9% XPO Logistics, Inc. 279 702 2,357 7,623 15,029 16,125 NM NM (25) (17) 92 474 1,241 1,440 NM NM Total $251,461 $259,756 $273,405 $267,955 $282,740 $303,756 4.7% 5.7% $18,900 $25,705 $23,820 $26,712 $33,816 $36,299 8.3% 12.6% Trucking ArcBest Corporation $2,066 $2,300 $2,613 $2,667 $2,686 $2,822 8.9% 2.9% $71 $107 $154 $167 $141 $169 33.0% 0.8% Celadon Group, Inc. 599 614 742 901 1,060 1,060 14.6% 8.5% 94 99 87 117 139 130 7.7% 5.3% Covenant Transportation Group, Inc. Class A 674 685 719 724 660 701 2.4% (1.7%) 63 63 89 143 112 118 31.2% (9.0%) Heartland Express, Inc. 546 582 871 736 663 696 10.5% (2.8%) 138 149 208 193 198 213 12.0% 4.9% Knight Transportation, Inc. 936 969 1,102 1,183 1,144 1,241 8.1% 2.4% 193 193 256 281 277 302 13.3% 3.7% Marten Transport, Ltd. 638 659 673 665 681 747 1.4% 6.0% 101 110 115 127 135 146 7.7% 7.2% Old Dominion Freight Line, Inc. 2,110 2,338 2,788 2,972 3,002 3,251 12.1% 4.6% 396 466 606 676 671 741 19.5% 4.7% P.A.M. Transportation Services, Inc. 381 403 411 417 408 421 3.1% 0.5% 41 50 55 63 64 69 15.3% 4.6% Saia, Inc. 1,099 1,139 1,272 1,221 1,207 1,267 3.6% 1.8% 106 125 145 155 151 167 13.5% 3.6% Swift Transportation Company Class A 3,493 4,118 4,299 4,229 4,075 4,298 6.6% 0.8% 528 577 583 611 600 651 5.0% 3.2% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,107 1,171 2.9% 1.8% 87 123 114 108 103 110 7.4% 0.9% USA Truck, Inc. 512 555 602 508 456 498 (0.3%) (1.0%) 20 41 60 56 46 49 41.6% (6.4%) Werner Enterprises, Inc. 2,036 2,029 2,139 2,094 2,003 2,107 0.9% 0.3% 328 305 316 393 335 369 6.1% (3.1%) YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,694 4,830 (0.1%) (0.0%) 198 205 197 259 314 348 9.3% 16.0% Total $20,979 $22,289 $24,492 $24,279 $23,845 $25,109 5.3% 1.7% $2,366 $2,613 $2,984 $3,349 $3,285 $3,582 15.9% 2.6%

*Excluded from averages

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016 PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Grow th ($ 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 $635 $526 7.7% (23.1%) $146 $179 $204 $273 $201 $170 23.2% (21.1%) Canadian National Railway Company 9,923 10,263 10,986 9,857 9,348 9,843 (0.2%) (0.1%) 4,611 4,710 5,137 5,021 5,008 5,293 2.9% 2.7% Canadian Pacific Railway Limited 5,697 5,952 5,994 5,246 4,958 5,199 (2.7%) (0.5%) 1,800 2,340 2,640 2,431 2,550 2,720 10.5% 5.8% CSX Corporation 11,756 12,026 12,669 11,811 10,811 11,263 0.2% (2.3%) 4,422 4,534 4,764 4,792 4,489 4,777 2.7% (0.2%) FreightCar America, Inc. 677 290 599 773 594 495 4.5% (20.0%) 41 (4) 17 51 35 25 7.9% (30.0%) Genesee & Wyoming, Inc. Class A 875 1,569 1,639 2,000 1,982 2,061 31.7% 1.5% 277 533 579 586 575 618 28.4% 2.7% Greenbrier Companies, Inc. 1,812 1,755 2,203 2,605 2,717 2,054 12.9% (11.2%) 157 143 237 430 466 294 40.0% (17.3%) Kansas City Southern 2,239 2,369 2,577 2,419 2,374 2,541 2.6% 2.5% 872 962 1,106 1,098 1,123 1,233 8.0% 5.9% Norfolk Southern Corporation 11,040 11,245 11,624 10,511 9,923 10,414 (1.6%) (0.5%) 4,040 4,173 4,526 3,938 4,114 4,371 (0.8%) 5.4% Trinity Industries, Inc. 3,812 4,365 6,170 6,393 4,646 3,767 18.8% (23.2%) 730 963 1,402 1,528 982 836 27.9% (26.0%) Union Pacific Corporation 20,926 21,963 23,988 21,813 19,941 20,938 1.4% (2.0%) 8,505 9,223 10,657 10,064 9,427 10,175 5.8% 0.6% Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,308 3,224 3,268 11.4% (0.6%) 436 489 588 701 667 687 17.1% (1.0%) Total $71,860 $75,115 $82,227 $77,625 $71,154 $72,367 7.2% (6.6%) $26,035 $28,243 $31,857 $30,912 $29,634 $31,200 14.5% (6.0%) Marine Aegean Marine Petroleum Network Inc. $7,259 $6,335 $6,662 $4,232 $3,579 $4,045 (16.5%) (2.2%) $102 $84 $54 $81 $124 $140 (7.5%) 31.4% Costamare Inc. 386 414 484 490 458 449 8.3% (4.4%) 246 267 330 325 315 308 9.8% (2.7%) Diana Shipping Inc. 221 164 176 158 107 146 (10.6%) (3.8%) 121 55 52 28 (19) 9 (38.5%) (44.7%) Kirby Corporation 2,113 2,242 2,566 2,148 1,824 1,880 0.5% (6.4%) 507 582 646 573 470 496 4.2% (7.0%) Matson, Inc. 1,560 1,637 1,714 1,885 1,946 2,030 6.5% 3.8% 175 182 203 298 295 319 19.5% 3.5% Neptune Orient Lines Limited 9,512 8,831 8,617 5,383 4,729 5,095 (17.3%) (2.7%) 90 142 353 321 225 504 53.0% 25.3% Nordic American Tankers Limited 131 244 351 446 282 287 50.5% (19.8%) 13 (7) 74 211 188 175 NM (8.8%) Rand Logistics, Inc. 157 156 153 148 127 136 (1.8%) (4.3%) 28 33 34 32 32 37 4.5% 6.0% SEACOR Holdings Inc. 1,581 1,247 1,319 1,055 887 913 (12.6%) (7.0%) 235 197 245 150 136 178 (14.0%) 9.0% Wilh. Wilhelmsen ASA 395 325 285 313 2,228 2,256 (7.5%) NM 226 170 134 186 385 362 (6.3%) 39.5% Total $23,314 $21,595 $22,327 $16,257 $16,166 $17,237 (0.0%) (5.2%) $1,743 $1,704 $2,125 $2,205 $2,151 $2,527 2.7% 5.2% Transportation Equipment Accuride Corporation $930 $643 $705 $686 $662 $670 (9.7%) (1.1%) $50 $43 $75 $77 $70 $74 15.6% (1.9%) Dana Holding Corporation 7,224 6,769 6,617 6,060 5,770 5,877 (5.7%) (1.5%) 753 706 705 654 631 653 (4.6%) (0.1%) Gentherm Incorporated 555 662 812 856 952 1,038 15.6% 10.1% 68 83 135 155 169 187 31.4% 9.7% Spartan Motors, Inc. 471 470 507 550 577 602 5.4% 4.6% 16 6 10 0 15 23 NM NM Wabash National Corporation 1,462 1,636 1,863 2,027 1,934 1,790 11.5% (6.0%) 110 142 161 219 232 188 25.7% (7.3%) Total $10,641 $10,179 $10,504 $10,180 $9,894 $9,977 3.4% 1.2% $997 $981 $1,086 $1,105 $1,117 $1,124 17.0% 0.1%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

TRANSPORTATION & LOGISTICS

SOURCES

1. Fact Set .

2. MergerMarket.

DISCLOSURES

Harris Williams & Co. (www.harriswilliams.com and w ww.harriswilliams.de) is a preeminent middle market inv estment bank focused on t he advisory needs of client s w orldwide. The firm has deep indust ry know ledge, global transaction expertise, and an unw avering commit ment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory serv ices.

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