Transportation & Logistics Industry Report

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ FEBRUARY 2015

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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 │ FEBRUARY 2015

WHAT WE’RE READING

CONTENTS LOGISTICS | DELIVERING WITH DATA: HOW LOGISTICS COMPANIES ARE SHIPPING… . M&A TRANSACTIONS With the immediacy technology has brought to life, customer service expectations . PUBLIC MARKETS OVERVIEW are at an all-time high. No industry is immune from those expectations, including . STOCK PRICE PERFORMANCE the logistics industry, where delivery services face greater pressure to get packages to their destination in the most timely and efficient way possible. This . OUR GROUP rang true over the 2014 holiday season, when trends such as omnichannel retailing and same-day delivery pressured carriers to improve delivery systems or risk losing customers. Forbes CONTACTS

TRUCKING | DRIVER SHORTAGE MAKES CAPITALIZING ON LOW OIL HARD… UNITED STATES

A chronic shortage of drivers means America's long-haul trucking companies are Frank Mountcastle struggling to capitalize on cheap fuel prices that could allow them to take goods Managing Director shipments away from railroads. A 50 percent fall in oil prices from their peak last [email protected] year should have erased some of the cost advantage railroads enjoy, especially +1 (804) 915-0124 for longer hauls. But for customers hoping to save money by switching from train to Jason Bass truck, the lack of drivers makes that harder. Managing Director Reuters [email protected] +1 (804) 915-0132 RAIL | IANA OFFERS BRIGHT FORECAST FOR 2015 INTERMODAL GROWTH Joe Conner Managing Director Neither U.S. West Coast port congestion nor the East Coast winter weather could [email protected] stop intermodal volume growth in 2014 and they won’t be able to this year either, +1 (804) 915-0151 the Intermodal Association of North America says. Intermodal volume increased Jeff Burkett 4.8 percent in 2014 and will likely see similar-sized gains this year, thanks in large Director part to a boost in consumer spending driven by plunging oil prices and a [email protected] strengthening U.S. dollar. +1 (804) 932-1334 Journal of Commerce Jershon Jones Director RAIL | FOR 2015, FREIGHT RAIL WILL CARRY THE ECONOMY [email protected] +1 (804) 932-1356 The U.S. economy continues to grow, and strong demand for rail service demonstrates that the freight rail industry is integral to this growth. By providing Jeff Kidd cost-effective transportation of goods, from lumber to oil to auto parts, freight rail is Vice President [email protected] playing a central role in positive economic trends — including rising gross domestic +1 (804) 915-0178 product, improving employment statistics and low gasoline prices. In 2015, the nation’s major freight railroads plan to spend an estimated $29 billion — which would set an annual record — to build, maintain and grow the rail network. EUROPE AAR Jeffery Perkins MARINE | CARRIER ON-TIME RELIABILITY PLUNGES TO NEW LOW AS RATES RISE Managing Director [email protected] +49 (0) 69 3650638 00 U.S. West Coast port congestion and the phasing in of major shipping alliances pulled global carrier reliability to a record low, adding an extra sting to rising rates hitting shippers, according to Drewry’s most recent Carrier Performance Insight report. The sliver of good news in the report, released Sunday, is that Drewry expects carrier reliability to improve in the coming months, as “new alliance services settle down and each carrier group seeks to make their new services more attractive to customers.” Journal of Commerce

AIR | AIR CARGO ENDS 2014 ON A POSITIVE NOTE

The International Air Transport Association (IATA) released full-year air cargo data for 2014 showing 4.5% demand growth compared to 2013 measured by freight tonne kilometers (FTKs). That is a significant acceleration from the 1.4% recorded in 2013 over 2012. Air cargo market expansion gathered momentum as 2014 progressed. The year finished on a positive note, with growth in December accelerating to 4.9%, compared to December 2013. IATA

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 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 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.

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

Pending Logistics Charter Brokerage LLC Non-asset based third party logistics provider to the petroleum and Berkshire Hathaway Inc. chemical industries.

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.

Pending 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.

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

2/2/2015 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.

1/26/2015 Marine Cronos Ltd. Provides intermodal marine container leasing services. Bohai Leasing Co., Ltd.

1/26/2015 Trucking Taylor Express, Inc. Provides regional dry van, dry bulk for-hire, and dedicated truckload Celadon Group Inc. services.

1/9/2015 Trucking Gardewine Group Inc. Provides regional less-than truckload, truckload, and specialized Mullen Group Ltd. truckload services primarily in Manitoba and Ontario.

1/5/2015 Logistics Freightquote.com, Inc. Largest provider of online freight brokerage services in the United C.H. Robinson Company, States. Inc.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015P EBITDA

Logistics Providers 11.5x Logistics Providers 10.6x

Rail & Rail Services 11.3x Rail & Rail Services 9.5x

Marine 10.5x Marine 8.2x

Trucking 8.4x Trucking 7.1x

Transportation Transportation 8.1x 6.2x Equipment Equipment

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

Rail & Rail Services 11.8% Trucking 6.7%

Trucking 9.8% Logistics Providers 6.3%

Transportation 8.7% Marine 6.2% Equipment

Transportation Logistics Providers 7.6% 5.8% Equipment

Marine 6.0% Rail & Rail Services 5.5%

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

Rail & Rail Services 18.8% Trucking 14.9%

Trucking 12.9% Logistics Providers 11.2%

Marine 9.0% Marine 10.9%

Transportation Transportation 8.5% 10.8% Equipment Equipment

Logistics Providers 7.9% Rail & Rail Services 10.6%

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

STOCK PRICE PERFORMANCE

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

Transportation 12.6% Rail & Rail Services 24.3% Equipment

Rail & Rail 10.7% Trucking 21.6% Services

Marine 4.2% Logistics Providers 15.0%

Logistics Transportation 4.2% 13.3% Providers Equipment

Trucking 2.5% Marine (9.3%)

TRAILING TWELVE MONTHS

(Indexed to February 18, 2014)

40%

30%

20%

10%

(10%)

(20%)

(30%) 2/18/14 5/18/14 8/18/14 11/18/14 2/18/15

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 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

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

AIRPORT & AVIATION SERVICES

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 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 & Government & Materials Services & Power Services

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

PUBLIC COMPARABLES

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA TEV Current Prior Month Prior Year High % of High Feb-14 Aug-14 Current 2014E 2015P Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $2,799 $2.67 3.2% 18.1% $3.11 85.9% 7.7x 9.9x 8.9x NA NA Air Transport Services Group, Inc. 908 8.77 0.7% 39.4% 9.57 91.6% 5.0x 5.3x 5.2x 5.1x 4.9x Atlas Air Worldwide Holdings, Inc. 2,846 47.93 4.3% 48.3% 51.00 94.0% 7.1x 7.8x 8.3x 8.9x 8.3x CH Robinson Worldwide Inc. 11,430 71.38 (2.8%) 31.2% 77.49 92.1% 12.1x 14.8x 14.2x 14.2x 12.7x Deutsche Post AG 43,538 33.04 4.2% (9.6%) 33.81 97.7% 10.2x 9.2x 10.1x 8.2x 8.3x DSV A/S 6,292 31.82 4.1% 2.9% 32.11 99.1% 12.0x 11.8x 13.0x 12.0x 12.1x Echo Global Logistics, Inc. 609 27.00 (1.4%) 62.7% 30.18 89.5% 12.3x NM 14.7x 13.7x 11.1x Expeditors International of Washington Inc. 7,773 45.60 5.1% 8.9% 47.24 96.5% 12.0x 11.6x 12.5x 12.2x 11.2x FedEx Corporation 53,403 179.78 1.7% 35.4% 183.51 98.0% 6.9x 7.4x 8.3x 8.9x 7.8x Forward Air Corp. 1,587 53.44 13.3% 18.6% 54.60 97.9% 11.7x 12.3x 12.4x 12.2x 10.1x Hub Group Inc. 1,418 38.40 13.1% (4.1%) 51.47 74.6% 10.5x 12.6x 10.5x 12.6x 11.5x JB Hunt Transport Services Inc. 10,620 83.14 4.2% 15.0% 85.54 97.2% 11.1x 11.5x 11.5x 11.6x 10.2x Kuehne + Nagel International AG 16,013 141.33 1.3% 3.4% 147.26 96.0% 14.3x 14.2x 15.5x 15.7x 14.7x Landstar System Inc. 3,014 68.51 5.4% 15.9% 81.80 83.8% 13.0x 14.0x 12.0x 12.1x 10.8x Panalpina World Transport Holding Ltd. 2,829 133.80 0.8% (20.4%) 159.44 83.9% NM 18.9x 18.0x 15.1x 11.9x Roadrunner Transportation Systems, Inc. 1,377 25.26 15.1% 12.8% 29.02 87.0% 10.4x 12.2x 11.3x 11.4x 9.3x Ryder System, Inc. 9,433 93.82 6.2% 31.2% 95.82 97.9% 5.4x 6.1x 5.8x 5.7x 5.3x TransForce Inc. 3,312 23.94 (5.4%) 10.6% 25.05 95.6% 8.7x 10.4x 10.2x 9.4x 7.4x United Parcel Service, Inc. 99,652 102.62 (7.0%) 6.4% 114.40 89.7% 10.8x 12.4x 14.5x 10.9x 10.4x Universal Truckload Services Inc. 957 24.60 (3.3%) (12.3%) 29.49 83.4% 9.1x 9.2x 8.6x 8.3x 7.1x UTi Worldwide Inc. 1,843 12.39 8.6% (21.0%) 16.51 75.0% NM 17.8x NM 17.3x 19.3x World Fuel Services Corp. 4,322 54.44 16.7% 21.9% 54.50 99.9% 11.2x 12.1x 13.6x 13.2x 11.8x XPO Logistics, Inc. 3,227 41.79 11.3% 51.4% 43.40 96.3% NM NM NM NM 14.7x Median 4.2% 15.0% 94.0% 10.6x 11.8x 11.5x 12.0x 10.6x Trucking ArcBest Corporation $977 $39.78 (5.3%) 23.4% $47.52 83.7% 7.8x 6.7x 6.1x 6.3x 4.9x Celadon Group Inc. 1,021 25.40 13.6% 18.7% 25.72 98.8% 8.2x 7.3x 9.6x 10.0x 7.8x Con-way Inc. 3,277 43.97 1.7% 16.9% 53.54 82.1% 6.7x 6.9x 6.4x 6.3x 5.7x Covenant Transportation Group, Inc. 733 29.10 4.8% 193.1% 30.70 94.8% 5.2x 5.6x 8.3x 8.6x 6.6x Heartland Express, Inc. 2,276 25.84 (3.6%) 28.9% 27.96 92.4% 12.2x 12.2x 11.1x 9.4x 8.6x Knight Transportation Inc. 2,774 32.72 0.3% 50.9% 34.69 94.3% 9.2x 10.0x 11.0x 11.2x 9.0x Marten Transport Ltd. 786 22.80 7.9% 16.6% 25.71 88.7% 5.8x 6.5x 6.9x 6.8x 5.7x Old Dominion Freight Line Inc. 6,748 76.91 6.2% 44.1% 81.48 94.4% 10.4x 11.8x 11.6x 11.7x 9.8x P.A.M. Transportation Services, Inc. 468 55.55 (5.3%) 181.6% 63.70 87.2% 4.9x 7.2x 8.5x NA NA Quality Distribution Inc. 662 10.92 20.5% (22.1%) 15.83 69.0% 10.5x 11.5x 9.6x 8.5x 7.5x Saia, Inc. 1,198 45.58 (8.8%) 40.2% 57.60 79.1% 6.9x 9.9x 8.3x 8.3x 6.8x Swift Transportation Company 5,264 27.29 (0.8%) 12.2% 29.44 92.7% 8.6x 8.2x 9.0x 8.7x 7.7x Universal Truckload Services Inc. 957 24.60 (3.3%) (12.3%) 29.49 83.4% 9.1x 9.2x 8.6x 8.3x 7.1x USA Truck Inc. 444 31.79 9.7% 132.4% 31.99 99.4% 8.3x 7.4x 7.3x 7.8x 7.1x Werner Enterprises Inc. 2,304 31.26 3.4% 19.7% 31.71 98.6% 6.5x 6.1x 6.9x 7.0x 6.1x YRC Worldwide Inc. 1,559 19.85 12.1% (4.1%) 29.21 68.0% 8.7x 10.8x 7.9x 7.1x 4.8x Median 2.5% 21.6% 90.5% 8.3x 7.8x 8.4x 8.3x 7.1x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

PUBLIC COMPARABLES CONT.

Rail and Rail Services American Railcar Industries, Inc. $1,519 $56.12 14.8% 10.6% $82.82 67.8% 6.5x 9.5x 7.4x 7.5x 6.8x Canadian National Railway Company 63,966 70.79 6.2% 26.5% 71.03 99.6% 11.7x 13.1x 13.1x 13.3x 12.7x Canadian Pacific Railway Limited 37,370 192.16 7.7% 22.5% 198.91 96.6% 14.4x 15.9x 15.0x 15.0x 13.6x CSX Corp. 43,861 35.39 1.5% 29.1% 37.99 93.2% 7.9x 8.7x 9.2x 9.2x 8.5x FreightCar America Inc. 210 30.78 32.9% 26.0% 37.48 82.1% NM NM 12.3x 10.4x 4.0x Genesee & Wyoming Inc. 6,627 94.12 11.3% (0.5%) 106.02 88.8% 12.4x 13.2x 11.6x 11.4x 10.3x The Greenbrier Companies, Inc. 1,933 56.10 11.1% 48.2% 78.32 71.6% 9.0x 11.1x 7.5x 7.7x 4.8x Kansas City Southern 15,460 119.35 8.5% 30.2% 126.49 94.4% 12.7x 14.2x 14.0x 14.0x 12.4x Norfolk Southern Corporation 42,520 111.21 7.4% 21.7% 117.64 94.5% 8.7x 9.3x 9.4x 9.3x 8.9x Trinity Industries Inc. 7,281 30.14 18.0% (0.5%) 50.77 59.4% 7.9x 8.1x 5.2x 5.0x 4.8x Union Pacific Corporation 118,600 123.35 10.2% 38.4% 124.52 99.1% 9.7x 10.5x 11.1x 11.2x 10.1x Westinghouse Air Brake Technologies Corporation 9,240 92.77 11.4% 22.3% 94.97 97.7% 15.5x 15.9x 15.7x 15.8x 14.1x Median 10.7% 24.3% 93.8% 9.7x 11.1x 11.3x 10.8x 9.5x Marine Aegean Marine Petroleum Network Inc. $1,480 $14.60 6.1% 54.0% $15.11 96.6% 14.1x 14.7x 15.3x 14.0x 10.9x Costamare Inc. 3,176 19.35 18.1% (4.6%) 24.94 77.6% 13.1x 11.8x 10.0x 9.6x 9.7x Diana Shipping Inc. 776 7.23 11.1% (42.0%) 13.93 51.9% NM NM 17.9x 14.3x 11.3x Kirby Corporation 5,199 79.60 1.8% (21.7%) 124.12 64.1% 11.4x 12.2x 8.1x 8.1x 8.4x Matson, Inc. 1,802 38.46 10.7% 50.6% 38.47 100.0% 7.6x 8.3x 10.5x 8.6x 8.0x Neptune Orient Lines Limited 6,089 0.75 4.8% (5.5%) 0.78 95.8% NM NM NM NM 9.9x Nordic American Tankers Limited 1,069 10.31 (10.7%) 4.1% 12.08 85.3% NM NM 14.1x 12.7x 7.0x Rand Logistics, Inc. 248 3.49 3.6% (48.4%) 7.49 46.6% 10.0x 11.2x 7.7x 7.8x 7.0x SEACOR Holdings Inc. 1,867 74.13 3.6% (13.0%) 90.69 81.7% 10.7x 8.7x 8.1x 7.7x 6.8x Wilh. Wilhelmsen ASA 2,199 5.70 (2.7%) (41.1%) 8.07 70.6% NM NM 15.8x 5.4x 5.4x Median 4.2% (9.3%) 79.7% 11.0x 11.5x 10.5x 8.6x 8.2x Transportation Equipment Accuride Corp. $557 $5.18 15.1% 31.1% $5.91 87.6% 11.6x 9.3x 8.1x 7.1x 6.2x Dana Holding Corporation 4,321 23.08 12.6% 13.3% 24.82 93.0% 5.6x 6.1x 6.1x 5.8x 5.6x Gentherm Incorporated 1,527 41.69 10.7% 57.9% 52.29 79.7% 11.8x 15.0x 12.3x 11.8x 10.3x Spartan Motors Inc. 163 5.47 2.2% (4.4%) 5.94 92.1% NM 17.6x 14.6x 15.6x 8.2x Wabash National Corp. 1,174 14.32 15.1% 6.0% 14.91 96.0% 8.3x 8.3x 7.3x 7.1x 6.2x Median 12.6% 13.3% 92.1% 10.0x 9.3x 8.1x 7.1x 6.2x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth 2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P Transportation & Logistics Logistics Providers Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 NA NA NA NA NA $199 $254 $296 NA NA NA NA NA Air Transport Services Group, Inc. 730 607 580 583 589 616 (7.2%) 2.8% 181 163 158 178 186 190 (0.5%) 3.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,806 1,734 1,844 9.3% 1.0% 203 296 307 329 346 346 17.3% 2.6% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,441 14,883 16,005 9.1% 9.1% 720 751 731 804 896 974 3.8% 10.0% Deutsche Post AG 68,631 73,191 75,859 68,190 67,082 69,495 (0.2%) 1.0% 3,384 4,129 4,719 5,260 5,241 5,747 15.8% 4.5% DSV A/S 7,639 7,937 8,439 7,895 7,908 8,200 1.1% 1.9% 498 519 543 518 518 547 1.3% 2.8% Echo Global Logistics, Inc. 603 758 884 1,175 1,357 1,604 24.9% 16.9% 23 27 27 45 55 65 25.3% 20.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,555 6,948 7,406 2.1% 6.3% 655 571 600 636 690 737 (1.0%) 7.6% FedEx Corporation 39,304 42,680 44,287 45,371 47,700 50,474 4.9% 5.5% 4,506 5,367 5,597 6,023 6,869 7,884 10.2% 14.4% Forward Air Corp. 509 558 626 781 988 1,076 15.4% 17.4% 97 104 107 130 157 184 10.4% 18.9% Hub Group Inc. 2,752 3,124 3,374 3,550 3,802 4,050 8.9% 6.8% 112 134 138 113 124 141 0.1% 11.6% JB Hunt Transport Services Inc. 3,678 4,058 4,527 6,176 6,786 7,524 18.9% 10.4% 658 759 830 916 1,039 1,162 11.6% 12.6% Kuehne + Nagel International AG 17,351 18,699 19,290 21,397 21,226 22,603 7.2% 2.8% 1,038 979 1,070 1,022 1,091 1,182 (0.5%) 7.6% Landstar System Inc. 2,628 2,771 2,665 3,158 3,479 3,730 6.3% 8.7% 204 223 201 250 280 298 6.9% 9.2% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,790 7,473 7,806 (0.8%) 7.2% 220 92 161 186 241 291 (5.4%) 25.0% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,826 2,227 2,404 29.4% 14.8% 54 81 99 121 150 169 30.9% 18.3% Ryder System, Inc. 6,051 6,257 6,419 6,663 6,847 7,254 3.3% 4.3% 1,290 1,396 1,459 1,637 1,764 1,902 8.3% 7.8% TransForce Inc. 2,378 2,822 2,620 3,168 3,660 3,763 10.0% 9.0% 313 392 317 351 445 469 3.9% 15.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,098 60,195 63,373 3.0% 4.4% 7,830 3,182 8,864 9,063 9,581 10,300 5.0% 6.6% Universal Truckload Services Inc. 991 1,037 1,033 1,191 1,253 1,303 6.3% 4.6% 84 96 105 115 136 146 11.1% 12.8% UTi Worldwide Inc. 4,550 4,914 4,608 4,450 4,284 4,392 (0.7%) (0.7%) 183 213 146 106 97 180 NM NM World Fuel Services Corp. 34,623 38,945 41,562 45,255 40,121 43,327 9.3% (2.2%) 291 287 301 330 377 412 4.3% 11.7% XPO Logistics, Inc. 177 279 702 2,301 4,187 6,150 NM NM 3 (20) (28) 76 220 386 NM NM Total $276,154 $295,087 $307,211 $309,820 $314,728 $334,399 7.6% 6.3% $22,746 $19,995 $26,747 $28,208 $30,503 $33,711 7.9% 11.2% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,598 $2,804 $3,029 10.9% 8.0% $82 $70 $104 $154 $199 $229 23.2% 22.0% Celadon Group Inc. 467 475 489 762 877 953 17.7% 11.9% 89 103 106 101 130 145 4.3% 19.8% Con-way Inc. 5,290 5,580 5,473 5,812 6,188 6,548 3.2% 6.1% 386 428 427 522 575 631 10.6% 9.9% Covenant Transportation Group, Inc. 512 527 539 704 731 786 11.2% 5.6% 63 71 65 83 111 124 9.5% 22.0% Heartland Express, Inc. 529 546 582 887 844 897 18.8% 0.5% 132 138 149 241 268 293 22.2% 10.3% Knight Transportation Inc. 697 752 792 1,089 1,282 1,415 16.0% 14.0% 169 184 192 245 308 345 13.1% 18.8% Marten Transport Ltd. 604 638 659 677 689 732 3.9% 4.0% 97 101 110 116 137 150 6.1% 13.7% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,780 3,132 3,455 13.5% 11.5% 326 396 460 577 684 790 21.0% 16.9% P.A.M. Transportation Services, Inc. 284 298 313 NA NA NA NA NA 29 41 50 NA NA NA NA NA Quality Distribution Inc. 628 719 805 992 1,035 1,112 16.4% 5.9% 70 74 73 79 88 96 4.1% 9.8% Saia, Inc. 1,030 1,099 1,139 1,275 1,327 1,438 7.4% 6.2% 65 107 126 145 177 202 30.3% 18.1% Swift Transportation Company 3,779 3,976 4,118 4,291 4,548 4,913 4.3% 7.0% 549 573 577 605 687 750 3.3% 11.3% Universal Truckload Services Inc. 991 1,037 1,033 1,191 1,253 1,303 6.3% 4.6% 84 96 105 115 136 146 11.1% 12.8% USA Truck Inc. 411 409 444 607 611 672 13.9% 5.2% 33 20 35 57 63 73 20.1% 12.9% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,219 2,339 2.2% 4.6% 311 318 296 331 377 406 2.1% 10.7% YRC Worldwide Inc. 4,869 4,851 4,865 5,100 5,265 5,594 1.6% 4.7% 49 198 205 226 335 356 NM NM Total $25,905 $27,143 $27,919 $30,905 $32,804 $35,186 9.8% 6.7% $2,536 $2,917 $3,080 $3,598 $4,274 $4,736 12.9% 14.9%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

PUBLIC COMPARABLES CONT.

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth 2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $749 $842 $838 13.0% 5.8% $55 $145 $179 $203 $227 $239 NM 8.7% Canadian National Railway Company 8,881 9,952 9,954 10,372 10,388 11,118 5.3% 3.5% 4,112 4,624 4,568 4,820 5,046 5,428 5.4% 6.1% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,693 5,730 6,260 4.6% 4.9% 1,378 1,778 2,190 2,470 2,729 3,016 21.5% 10.5% CSX Corp. 11,795 11,763 12,026 12,666 12,917 13,623 2.4% 3.7% 4,446 4,523 4,577 4,779 5,122 5,502 2.4% 7.3% FreightCar America Inc. 487 677 290 581 826 853 6.0% NM 12 41 (8) 21 58 67 20.9% NM Genesee & Wyoming Inc. 829 875 1,569 1,641 1,627 1,748 25.6% 3.2% 252 277 533 581 641 698 32.2% 9.6% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,209 2,605 2,815 23.5% 12.9% 97 152 145 252 400 448 37.3% 33.2% Kansas City Southern 2,098 2,239 2,369 2,593 2,720 2,968 7.3% 7.0% 772 872 962 1,109 1,246 1,411 12.8% 12.8% Norfolk Southern Corporation 11,172 11,040 11,245 11,675 11,655 12,424 1.5% 3.2% 4,073 4,036 4,169 4,547 4,780 5,162 3.7% 6.5% Trinity Industries Inc. 2,938 3,812 4,365 6,123 6,640 6,420 27.7% 2.4% 575 751 963 1,469 1,517 1,463 36.8% (0.2%) Union Pacific Corporation 18,508 19,686 20,684 23,966 24,957 26,735 9.0% 5.6% 7,341 8,505 9,223 10,581 11,778 12,863 13.0% 10.3% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,031 3,321 3,591 15.5% 8.8% 334 436 489 586 665 739 20.7% 12.3% Total $65,339 $70,451 $73,136 $81,296 $84,229 $89,392 11.8% 5.5% $23,446 $26,139 $27,989 $31,420 $34,208 $37,035 18.8% 10.6% 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. 382 386 414 482 496 511 8.0% 3.0% 236 238 258 329 328 363 11.7% 5.0% Diana Shipping Inc. 256 221 164 175 207 248 (11.9%) 19.1% 166 121 53 54 64 74 (31.2%) 17.3% Kirby Corporation 1,850 2,113 2,242 2,495 2,439 2,537 10.5% 0.9% 445 509 582 640 619 654 12.9% 1.1% Matson, Inc. 1,463 1,560 1,637 1,730 1,879 2,062 5.8% 9.2% 142 175 172 208 226 250 13.7% 9.6% Neptune Orient Lines Limited 9,211 9,512 8,831 8,716 8,704 9,268 (1.8%) 3.1% (90) 96 131 299 619 642 NM NM Nordic American Tankers Limited 95 131 244 158 234 215 18.6% 16.5% 10 7 (22) 86 151 130 NM 22.9% Rand Logistics, Inc. 98 109 119 155 149 157 16.6% 0.7% 16 28 25 32 35 39 26.7% 11.1% SEACOR Holdings Inc. 1,032 1,308 1,247 1,322 1,392 1,409 8.6% 3.2% 155 164 197 240 272 278 15.6% 7.6% Wilh. Wilhelmsen ASA 309 395 325 2,603 2,562 2,640 NM 0.7% 147 227 154 412 416 454 NM 5.0% Total $21,661 $22,993 $21,559 $24,812 $25,184 $26,798 6.0% 6.2% $1,301 $1,648 $1,626 $2,411 $2,868 $3,039 9.0% 10.9% Transportation Equipment Accuride Corp. $805 $795 $643 $705 $740 $744 (4.3%) 2.8% $74 $65 $43 $78 $90 $94 1.8% 9.5% Dana Holding Corporation 7,544 7,224 6,769 6,618 6,762 7,193 (4.3%) 4.3% 720 753 698 745 767 853 1.1% 7.0% Gentherm Incorporated 370 555 662 813 915 1,029 30.0% 12.6% 46 70 83 129 148 174 40.5% 16.3% Spartan Motors Inc. 426 471 470 510 538 569 6.2% 5.7% 14 15 6 10 20 32 (9.5%) NM Wabash National Corp. 1,187 1,462 1,636 1,859 2,003 1,998 16.1% 3.7% 33 108 142 162 189 198 NM 10.5% Total $10,331 $10,506 $10,179 $10,503 $10,958 $11,534 8.7% 5.8% $888 $1,011 $972 $1,124 $1,214 $1,351 8.5% 10.8%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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