TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ AUGUST 2015

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

TRANSPORTATION AND LOGISTICS OVERVIEW

CONTENTS HARRIS WILLIAMS & CO. DEAL SPOTLIGHT . M&A TRANSACTIONS Kenan Advantage Group, Inc. . PUBLIC MARKETS OVERVIEW . STOCK PRICE PERFORMANCE Harris Williams & Co. announces the acquisition of The Kenan . OUR GROUP Advantage Group, a portfolio company of Goldman Sachs Capital Partners and Centerbridge Partners, by OMERS has acquired Private Equity (OPE). Kenan Advantage is North America’s largest tank truck transporter and logistics provider, delivering CONTACTS fuel, chemicals, industrial gasses, and food-grade products. HW&Co. acted as the buyside advisor for OPE. UNITED STATES

Frank Mountcastle WHAT WE’RE READING Managing Director [email protected] +1 (804) 915-0124 LOGISTICS | FREIGHT STARTUPS ATTRACT SILICON VALLEY’S ATTENTION Jason Bass Managing Director Silicon Valley investors are piling into companies that want to drag the $160-billion- [email protected] a-year business of arranging cargo shipments into the internet age. Since the start +1 (804) 915-0132 of 2014, venture capital firms have pumped more than $1 billion into start-up freight forwarding companies, an industry that was not on most tech investors’ Joe Conner Managing Director radar two years ago. [email protected] Wall Street Journal +1 (804) 915-0151 TRUCKING | HOW THE U.S. TRUCKING INDUSTRY IS KEEPING UP Jeff Burkett Director [email protected] With the U.S. economy continuing to expand, trucking companies have had to +1 (804) 932-1334 keep up with growing freight demand while battling a significant shortage of licensed truck drivers. In order to meet demand, trucking companies have opted Jershon Jones to add more trailers to increase the capacity of each individual driver. According Director to CK Commercial Vehicle Research, approximately 70 percent of surveyed [email protected] trucking companies plan to buy more trailers, representing the highest level since +1 (804) 932-1356 2007. Jeff Kidd Bloomberg Vice President [email protected] MARINE | WESTBOUND TRANS-ATLANTIC TRANSFORMED +1 (804) 915-0178

Driven by a combination of the euro’s slide against the dollar and the EUROPE strengthening U.S. economy, traffic on the head-haul Europe-to-U.S. westbound trade grew 8.4 percent year-over-year in the first quarter. That growth matched Jeffery Perkins the growth experienced throughout all of 2014, making it the second-fastest Managing Director growing east-west route after the 12.6 percent jump in the Asia-Mediterranean [email protected] trade. +49 (0) 69 3650638 00 Journal of Commerce

RAIL | RAIL SHIPPERS SEEK NEW RULES TO PROMOTE RATE COMPETITION

The National Industrial Transportation League and other shipper groups have urged the Surface Transportation Board to create new rules that would foster lower rail prices through competitive switching or rate caps, now that carriers have become profitable enough to absorb a slight revenue decline. Transport Topics

AIR | AIR FREIGHT SLOWDOWN CONTINUES

The International Air Transport Association (IATA) released data for global air freight markets displaying air freight volumes, measured in freight tonne kilometers (FTM), rose only 1.2 percent compared to a year ago. This is consistent with falling trade activity and weaker than expected global growth. IATA

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Announced Sector Target Business Description Acquirer 8/17/2015 Logistics Ozburn-Hessey Logistics, Provides third party logistics services, including warehousing & Geodis S. A. LLC fulfillment, transportation management, custom brokerage, and international transportation. 8/10/2015 Trucking Hornady Transportation Provides flatbed trucking services to customers on the east coast of Daseke, Inc. LLC the United States.

8/4/2015 Logistics Hallcon Corporation Canadian provider of specialty outsourced services to the railway Novacap and transit sectors in North America.

8/4/2015 Logistics Courier Express Asset-free provider of B2B last mile services with over 1,000 Dicom Transportation Enterprises LLC dedicated delivery providers. Group, L.P.

7/31/2015 Logistics Coyote Logistics, LLC Non-asset based truckload, LTL, and intermodal service provider. , Inc.

7/30/2015 Logistics North & South Logistics, Provides freight brokerage, focusing on LTL, truckload, and Transport United, Inc. Inc. intermodal freight logistics, throughout the continental United States.

7/28/2015 Trucking Stagecoach Cartage Provides regional, intermodal, and over-the-road truckload services Roadrunner Transportation and Distribution, LP. and warehousing and trans-loading solutions. Systems, Inc.

7/27/2015 Logistics SFO Shuttle Bus Provides employee commuter services as well as airport shuttle Hallcon Corporation Company and Loop services. Transportation 7/27/2015 Rail Faiveley Transport S.A. International manufacturer and supplier of equipment for the Westinghouse Air Brake railway industry. Technologies Corporation

7/22/2015 Logistics BearWare Inc. Provides freight tracking and related solutions for specialty retail The Descartes Systems shippers. Group Inc

7/21/2015 Logistics EXTRA Express Cerritos, Asset-light provider of B2B last mile services based in Los Angeles, Dicom Transportation Inc. CA. Group, L.P.

7/20/2015 Equipment Allstate Utility Trailers Inc. Provides utility trailers, cargo trailers, car trailers, and dump trailers, Mobile Mini, Inc. parts, and accessories nationwide.

7/16/2015 Logistics eBay Enterprise, Inc. eBay Enterprise handles warehousing and logistics for third-party Permira Advisers Ltd sellers.

7/16/2015 Logistics G4S International Provides secure transportation and delivery for high value goods. UPS Capital Corporation Logistics, Insured Parcel Services Business 7/14/2015 Rail Transportation Engineering and logistics company specializing in handling all aspects BNSF Logistics, LLC Technology Services, of shipping by rail. Inc. 7/8/2015 Air Fraport Cargo Services Provides independent cargo handling services at Frankfurt Airport, WFS Global SAS GmbH Europe's joint largest cargo airport alongside Paris CDG.

7/6/2015 Logistics TransForce, Inc. Specialized staffing and recruiting company that provides qualified Palladium Equity Partners commercial truck drivers to third-party logistics companies, private fleets, and trucking companies. 7/1/2015 Trucking Bulldog Hiway Express Provides truckload and intermodal carrier services in the U.S. and Daseke, Inc. Canada, operating several hundred power units and more than 400 trailers. 6/18/2015 Trucking The Kenan Advantage North America's largest tank truck transporter and logistics provider, OMERS Private Equity Group, Inc. delivering fuel, chemicals, industrial gases, and food-grade products.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015E EBITDA

Logistics Providers 10.6x Logistics Providers 10.7x

Marine 9.8x Rail & Rail Services 8.2x

Rail & Rail Services 8.2x Marine 8.1x

Trucking 6.6x Trucking 6.5x

Transportation Transportation 6.2x 5.3x Equipment Equipment

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

Rail & Rail Services 11.5% Trucking 8.5%

Transportation 8.7% Rail & Rail Services 6.6% Equipment

Trucking 7.7% Logistics Providers 6.1%

Transportation Logistics Providers 6.4% 5.2% Equipment

Marine 3.5% Marine (0.4%)

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

Rail & Rail Services 17.5% Marine 15.6%

Trucking 13.0% Trucking 15.1%

Marine 7.5% Logistics Providers 14.0%

Transportation Transportation 7.4% 11.6% Equipment Equipment

Logistics Providers 6.9% Rail & Rail Services 8.8%

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

STOCK PRICE PERFORMANCE

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

Rail & Rail Services 1.3% Trucking 2.7%

Transportation (2.7%) Logistics Providers 2.6% Equipment

Transportation Trucking (2.9%) (3.0%) Equipment

Logistics Providers (5.9%) Rail & Rail Services (17.6%)

Marine (8.0%) Marine (26.5%)

TRAILING TWELVE MONTHS

(Indexed to August 13, 2014)

30%

20%

10%

0%

(10%)

(20%)

(30%) Aug-13-2014 Nov-13-2014 Feb-13-2015 May-13-2015 Aug-13-2015

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

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

a portfolio company of a portfolio company of a portfolio company of a portfolio company of a portfolio company of

has been acquired by has acquired

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

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 │ AUGUST 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 at www.harriswilliams.com/industries.

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

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

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

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

PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 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 Aug-14 Feb-15 Current 2014 2015E Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $2,360 $2.18 1.6% (20.7%) $2.90 75.3% 9.5x 10.7x 9.1x 8.9x 8.3x Air Transport Services Group, Inc. 919 9.64 (9.1%) 13.9% 10.96 88.0% 5.2x 4.9x 4.8x 5.1x 4.7x Atlas Air Worldwide Holdings, Inc. 2,576 44.78 (15.5%) 35.5% 59.47 75.3% 7.8x 8.7x 6.6x 7.5x 6.5x CH Robinson Worldwide Inc. 10,702 68.71 6.0% 1.8% 77.49 88.7% 14.6x 14.3x 12.5x 13.4x 11.8x Deutsche Post AG 39,729 29.51 (5.9%) (6.9%) 34.75 84.9% 8.0x 9.3x 10.9x 8.9x 8.2x DSV A/S 7,198 37.92 11.6% 21.1% 38.73 97.9% 11.7x 12.5x 15.1x 14.8x 13.7x Echo Global Logistics, Inc. 921 24.52 (25.5%) 7.9% 34.35 71.4% 18.3x 16.1x NM NM 14.4x Expeditors International of Washington Inc. 8,186 48.72 6.1% 19.6% 49.51 98.4% 11.4x 11.9x 11.4x 12.7x 10.9x FedEx Corporation 49,711 163.60 (4.3%) 9.5% 185.19 88.3% 6.9x 8.1x 7.0x 7.7x 7.2x Forward Air Corp. 1,561 48.03 (9.6%) 3.2% 57.65 83.3% 12.3x 12.6x 11.8x 12.3x 10.7x Hub Group Inc. 1,456 40.85 (2.2%) (10.4%) 47.35 86.3% 12.2x 10.6x 10.6x 10.7x 11.4x JB Hunt Transport Services Inc. 10,197 80.08 (6.6%) 5.0% 93.50 85.6% 11.5x 11.2x 10.2x 11.0x 9.7x Kuehne + Nagel International AG 16,098 137.74 3.4% 2.6% 152.39 90.4% 14.1x 16.1x 15.2x 16.3x 15.4x Inc. 2,996 68.90 (0.1%) 2.7% 81.80 84.2% 13.9x 12.1x 11.4x 12.0x 11.0x Panalpina World Transport Holding Ltd. 2,655 122.36 (0.7%) (12.7%) 151.67 80.7% 18.3x 18.2x 17.0x 17.7x 13.4x Roadrunner Transportation Systems, Inc. 1,338 23.89 (8.5%) (6.6%) 28.51 83.8% 12.1x 11.3x 9.8x 11.1x 8.7x System, Inc. 9,881 88.75 (3.3%) 1.6% 100.64 88.2% 6.0x 5.7x 5.8x 6.1x 5.5x TransForce Inc. 3,155 18.63 (8.0%) (26.5%) 24.18 77.0% 10.4x 8.9x 8.1x 8.7x 8.1x United Parcel Service, Inc. 98,258 101.84 4.2% 5.4% 114.40 89.0% 12.2x 14.3x 11.8x 14.3x 10.0x Universal Truckload Services Inc. 777 20.27 (8.4%) (16.6%) 29.06 69.8% 8.9x 8.2x 6.7x 6.8x 6.5x UTi Worldwide Inc. 1,435 7.91 (14.9%) (16.2%) 14.75 53.6% 19.0x NM NM 17.0x 15.1x World Fuel Services Corp. 3,252 41.22 (15.2%) (7.5%) 58.50 70.5% 12.0x 12.6x 10.5x 10.2x 10.8x XPO Logistics, Inc. 7,512 38.18 (17.1%) 23.9% 50.96 74.9% NM NM NM NM 18.9x Median (5.9%) 2.6% 84.2% 11.8x 11.3x 10.6x 11.0x 10.7x Trucking ArcBest Corporation $752 $32.25 0.4% (5.3%) $47.52 67.9% 6.3x 6.1x 4.4x 4.9x 4.0x Inc. 1,106 20.38 (8.2%) (2.8%) 29.15 69.9% 7.2x 9.5x 9.7x 10.6x 8.3x Con-way Inc. 2,393 36.74 (1.7%) (27.5%) 53.54 68.6% 6.8x 6.6x 4.8x 4.9x 4.5x Covenant Transportation Group, Inc. 588 24.50 (8.4%) 104.5% 36.82 66.5% 5.4x 8.1x 5.2x 6.6x 4.8x Heartland Express, Inc. 1,762 20.96 2.3% (9.3%) 27.96 75.0% 11.8x 10.7x 8.5x 8.5x 7.2x Knight Transportation Inc. 2,325 27.66 (4.5%) 14.8% 34.73 79.6% 9.8x 11.0x 8.5x 9.7x 7.6x Marten Transport Ltd. 628 18.80 (15.3%) (5.7%) 24.92 75.4% 6.2x 6.5x 5.1x 5.5x 4.6x Old Dominion Freight Line Inc. 6,318 72.50 6.5% 12.0% 81.48 89.0% 11.3x 11.1x 9.9x 10.8x 9.3x P.A.M. Transportation Services, Inc. 390 47.04 (23.6%) 21.0% 67.61 69.6% 7.3x 8.5x 6.4x 7.1x NA Quality Distribution Inc. 774 15.95 1.2% 12.8% 15.98 99.8% 11.5x 9.3x 12.1x 11.0x 9.0x , Inc. 1,136 41.31 1.1% (13.7%) 57.60 71.7% 9.7x 8.1x 7.0x 7.8x 6.5x Company 4,616 22.88 (4.2%) 11.1% 29.44 77.7% 8.0x 8.7x 7.4x 7.9x 6.8x Universal Truckload Services Inc. 777 20.27 (8.4%) (16.6%) 29.06 69.8% 8.9x 8.2x 6.7x 6.8x 6.5x USA Truck Inc. 297 20.11 (7.0%) 8.2% 32.14 62.6% 7.5x 7.1x 4.8x 4.9x 4.7x Inc. 2,047 28.09 1.6% 12.1% 33.42 84.1% 6.2x 6.9x 5.9x 6.4x 5.3x YRC Worldwide Inc. 1,528 19.54 46.8% (12.3%) 25.40 76.9% 11.2x 7.7x 5.5x 7.7x 4.2x Median (2.9%) 2.7% 73.3% 7.8x 8.2x 6.6x 7.4x 6.5x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 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 Aug-14 Feb-15 Current 2014 2015E Transportation & Logistics

Rail and Rail Services American Railcar Industries, Inc. $1,239 $40.29 (13.2%) (46.2%) $82.82 48.6% 8.8x 6.7x 5.2x 6.1x 4.8x Canadian National Railway Company 56,480 61.86 6.6% (8.0%) 68.03 90.9% 12.9x 12.8x 11.6x 11.5x 11.7x Canadian Pacific Railway Limited 30,445 158.06 0.8% (17.0%) 189.46 83.4% 15.4x 14.9x 12.4x 12.5x 12.2x CSX Corp. 37,933 29.39 (7.9%) (1.1%) 37.99 77.4% 8.5x 9.3x 7.7x 8.0x 7.7x FreightCar America Inc. 205 22.10 4.0% (18.3%) 37.48 59.0% NM 14.1x 6.3x 12.0x 4.7x Genesee & Wyoming Inc. 6,332 73.82 1.8% (21.6%) 105.49 70.0% 12.8x 11.5x 10.7x 11.0x NA The Greenbrier Companies, Inc. 1,742 44.73 (7.2%) (30.8%) 78.32 57.1% 10.4x 7.7x 4.8x 7.3x 4.1x Kansas City Southern 13,201 97.78 3.9% (11.9%) 126.49 77.3% 14.0x 13.7x 12.1x 11.9x 12.1x Norfolk Southern Corporation 33,199 81.02 (6.3%) (21.5%) 117.64 68.9% 9.1x 9.3x 7.8x 7.3x 8.2x Trinity Industries Inc. 7,485 28.01 8.5% (35.9%) 50.77 55.2% 7.8x 5.6x 5.0x 5.3x 4.6x Union Pacific Corporation 91,733 92.70 (4.5%) (7.8%) 124.52 74.4% 10.1x 11.0x 8.7x 8.6x 8.9x Westinghouse Air Brake Technologies Corporation 9,769 99.63 4.3% 21.5% 105.10 94.8% 15.6x 14.8x 15.2x 16.6x 14.5x Median 1.3% (17.6%) 72.2% 10.4x 11.3x 8.2x 9.8x 8.2x Marine Aegean Marine Petroleum Network Inc. $1,201 $11.51 (8.4%) 21.8% $15.71 73.3% 12.1x 13.2x 12.1x 12.3x 9.3x Costamare Inc. 2,688 15.83 (12.7%) (31.6%) 23.84 66.4% 11.9x 9.9x 8.5x 8.5x 7.9x Diana Shipping Inc. 932 7.01 (7.9%) (30.7%) 11.04 63.5% 19.7x 15.1x NM 18.6x NM Kirby Corporation 4,671 70.41 (10.1%) (40.6%) 124.12 56.7% 12.0x 7.7x 7.5x 7.2x 8.1x Matson, Inc. 2,278 40.84 (5.8%) 51.5% 43.84 93.2% 8.2x 8.7x 9.9x 11.2x 8.1x Neptune Orient Lines Limited 4,454 0.62 (4.5%) (17.8%) 0.86 72.5% NM NM 9.8x 15.2x 9.9x Nordic American Tankers Limited 1,490 15.09 (0.2%) 70.7% 17.45 86.5% NM 17.7x 11.1x NM 6.8x Rand Logistics, Inc. 249 2.66 (17.4%) (57.6%) 6.65 40.0% 11.1x 7.8x 7.9x 8.5x 7.0x SEACOR Holdings Inc. 1,691 62.82 (8.2%) (22.3%) 83.12 75.6% 8.8x 7.7x 9.2x 7.0x 9.7x Wilh. Wilhelmsen ASA 2,151 5.48 (4.2%) (36.3%) 6.76 81.1% NM 15.1x 12.2x 15.4x 4.8x Median (8.0%) (26.5%) 72.9% 11.9x 9.9x 9.8x 11.2x 8.1x Transportation Equipment Accuride Corp. $461 $3.66 (2.7%) (26.9%) $5.47 66.9% 9.3x 7.3x 5.8x 6.2x 5.2x Dana Holding Corporation 3,612 18.40 (8.9%) (20.8%) 23.93 76.9% 5.9x 6.1x 5.2x 5.1x 5.0x Gentherm Incorporated 1,759 48.82 (4.5%) 7.9% 57.95 84.2% 14.4x 10.6x 12.8x 13.1x 12.2x Spartan Motors Inc. 150 4.82 9.0% 3.0% 5.71 84.4% 16.3x 17.1x 12.4x 15.9x 12.1x Wabash National Corp. 1,099 13.55 8.6% (3.0%) 15.21 89.1% 8.3x 7.0x 6.2x 6.8x 5.3x Median (2.7%) (3.0%) 84.2% 9.3x 7.3x 6.2x 6.8x 5.3x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

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 $4,775 $5,039 $4,873 $4,633 $4,603 $4,815 (1.0%) 1.9% $199 $254 $296 $265 $284 $303 10.0% 7.1% Air Transport Services Group, Inc. 730 607 580 590 605 623 (6.9%) 2.8% 181 163 158 179 191 199 (0.3%) 5.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,834 1,872 8.8% 2.4% 203 296 307 344 376 373 19.1% 4.1% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15,278 9.2% 6.5% 720 751 731 797 880 926 3.4% 7.8% Deutsche Post AG 68,631 73,191 75,621 68,547 65,236 67,747 (0.0%) (0.6%) 3,384 4,129 5,108 4,424 4,819 5,332 9.3% 9.8% DSV A/S 7,639 7,937 8,439 7,896 7,523 7,819 1.1% (0.5%) 498 519 543 486 503 537 (0.8%) 5.2% Echo Global Logistics, Inc. 603 758 884 1,173 1,684 2,255 24.9% 38.6% 23 27 27 36 74 107 16.5% 72.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,089 7,585 2.1% 7.5% 655 571 600 644 731 787 (0.6%) 10.6% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,467 5.1% 5.2% 4,506 5,367 6,112 6,417 6,891 7,899 12.5% 10.9% Forward Air Corp. 509 584 652 781 992 1,080 15.4% 17.6% 97 104 107 127 158 184 9.4% 20.7% Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,912 9.1% 4.7% 112 134 138 135 123 142 6.4% 2.4% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,280 NA 11.4% NA 658 759 830 926 1,056 1,181 12.1% 12.9% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 21,399 22,623 0.5% 13.3% 1,038 979 1,070 987 1,065 1,116 (1.7%) 6.4% Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3,620 6.6% 7.3% 204 223 201 250 271 297 6.9% 9.0% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,877 7,172 (1.0%) 3.1% 220 92 161 150 208 266 (11.9%) 33.1% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,144 2,293 30.5% 10.7% 54 81 99 121 151 169 30.9% 18.4% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,708 7,135 3.1% 3.7% 1,290 1,396 1,459 1,628 1,790 1,946 8.1% 9.3% TransForce Inc. 2,378 2,822 2,620 2,817 3,429 3,518 5.8% 11.8% 313 392 318 361 415 448 4.9% 11.4% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,696 62,766 3.1% 3.8% 7,830 3,201 8,868 6,864 9,647 10,333 (4.3%) 22.7% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) 183 213 146 84 96 111 NM 14.6% World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35,056 7.8% (10.1%) 291 287 301 319 362 377 3.0% 8.7% XPO Logistics, Inc. 177 279 702 2,357 6,705 10,617 NM NM 3 (25) (20) 95 381 698 NM NM Total $276,120 $295,078 $306,963 $308,106 $309,181 $323,643 6.4% 6.1% $22,746 $20,009 $27,664 $25,752 $30,591 $33,862 6.9% 14.0% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2,941 11.1% 6.1% $82 $70 $104 $155 $190 $216 23.5% 18.1% Celadon Group Inc. 467 475 489 615 888 997 9.6% 27.3% 89 103 106 104 136 158 5.4% 23.3% Con-way Inc. 5,290 5,580 5,473 5,806 5,922 6,252 3.2% 3.8% 386 428 427 493 547 600 8.5% 10.3% Covenant Transportation Group, Inc. 512 527 539 579 736 782 4.2% 16.2% 63 71 65 89 123 133 11.8% 22.4% Heartland Express, Inc. 529 546 582 871 780 832 18.1% (2.3%) 132 138 149 208 240 268 16.3% 13.5% Knight Transportation Inc. 697 752 792 926 1,269 1,406 9.9% 23.2% 169 184 192 239 314 353 12.3% 21.5% Marten Transport Ltd. 604 638 659 673 684 755 3.7% 5.9% 97 101 110 115 139 152 5.9% 15.0% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,051 3,409 13.6% 10.6% 326 396 460 587 676 774 21.6% 14.8% P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA Quality Distribution Inc. 628 719 805 854 1,020 1,093 10.8% 13.1% 70 69 72 70 84 92 0.0% 14.7% Saia, Inc. 1,030 1,099 1,139 1,272 1,249 1,348 7.3% 2.9% 65 107 126 145 169 190 30.3% 14.6% Swift Transportation Company 3,779 3,976 4,118 4,299 4,417 4,787 4.4% 5.5% 549 573 577 583 666 742 2.0% 12.8% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1% USA Truck Inc. 411 512 555 602 589 639 13.6% 3.0% 33 20 35 60 67 74 22.0% 10.7% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 NA NA 2.2% NA 311 318 296 318 380 408 0.7% 13.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,072 5,294 1.4% 2.2% 49 198 199 197 312 343 NM NM Total $25,905 $27,247 $28,030 $30,615 $29,604 $31,769 7.7% 8.5% $2,536 $2,913 $3,073 $3,532 $4,161 $4,631 13.0% 15.1%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

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 $925 $849 12.2% 7.6% $55 $145 $179 $204 $253 $242 NM 8.8% Canadian National Railway Company 8,881 9,952 9,954 10,478 9,765 10,394 5.7% (0.4%) 4,112 4,624 4,568 4,900 4,721 5,124 6.0% 2.3% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,320 5,747 3.9% 1.5% 1,378 1,778 2,190 2,434 2,556 2,794 20.9% 7.1% CSX Corp. 11,795 11,763 12,026 12,669 12,185 12,638 2.4% (0.1%) 4,446 4,523 4,577 4,764 4,934 5,265 2.3% 5.1% FreightCar America Inc. 487 677 290 599 745 798 7.1% 15.5% 12 41 (8) 17 36 48 12.2% NM Genesee & Wyoming Inc. 829 875 1,569 1,639 2,075 2,346 25.5% 19.7% 252 277 534 574 609 693 31.6% 10.0% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,647 2,830 21.8% 15.5% 97 152 145 237 427 472 34.5% 41.0% Kansas City Southern 2,098 2,239 2,369 2,577 2,473 2,669 7.1% 1.8% 772 872 962 1,106 1,095 1,234 12.7% 5.6% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,938 11,469 1.3% (0.7%) 4,082 4,036 4,169 4,522 4,108 4,471 3.5% (0.6%) Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,081 6,872 28.1% 5.5% 575 730 963 1,400 1,566 1,439 34.6% 1.4% Union Pacific Corporation 18,508 19,686 20,684 22,560 23,106 24,586 6.8% 4.4% 7,341 8,505 9,223 10,657 10,559 11,519 13.2% 4.0% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,363 3,627 15.7% 9.1% 334 436 485 588 670 743 20.8% 12.4% Total $65,339 $70,451 $73,136 $79,795 $80,623 $84,825 11.5% 6.6% $23,455 $26,119 $27,987 $31,403 $31,533 $34,043 17.5% 8.8% Marine Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,297 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $149 9.1% 23.4% Costamare Inc. 382 386 414 484 490 513 8.2% 3.0% 236 238 258 318 334 354 10.4% 5.6% Diana Shipping Inc. 256 221 164 176 163 187 (11.8%) 3.1% 166 124 53 50 35 43 (32.9%) (6.9%) Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2,376 11.5% (3.8%) 445 509 582 647 583 627 13.3% (1.5%) Matson, Inc. 1,463 1,560 1,637 1,714 1,896 2,082 5.4% 10.2% 142 175 172 203 244 275 12.8% 16.4% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,945 6,868 (2.2%) (10.7%) (90) 96 131 294 478 544 NM NM Nordic American Tankers Limited 95 131 244 351 283 255 NM NM 10 13 (21) 60 219 186 NM 76.5% Rand Logistics, Inc. 98 109 119 129 149 152 9.9% 8.3% 16 28 25 29 35 36 23.3% 11.0% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1,322 8.5% 0.1% 155 164 197 245 199 248 16.4% 0.6% Wilh. Wilhelmsen ASA 309 395 325 285 2,488 2,571 NM NM 147 227 154 140 453 447 NM NM Total $21,661 $22,993 $21,559 $22,303 $20,178 $21,361 3.5% (0.4%) $1,301 $1,658 $1,627 $2,083 $2,713 $2,911 7.5% 15.6% Transportation Equipment Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $94 0.2% 12.4% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,360 6,702 (4.3%) 0.6% 720 753 706 705 740 797 (0.7%) 6.3% Gentherm Incorporated 370 555 662 811 907 1,028 30.0% 12.5% 46 67 84 135 151 181 42.6% 16.0% Spartan Motors Inc. 426 471 470 507 535 570 6.0% 6.1% 14 16 6 9 11 16 (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,024 1,996 16.2% 3.5% 33 108 142 161 200 200 NM 11.6% Total $10,331 $10,506 $10,179 $10,504 $10,576 $11,050 8.7% 5.2% $888 $1,008 $981 $1,084 $1,191 $1,288 7.4% 11.6%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ AUGUST 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

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