TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ FEBRUARY 2016

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 │ FEBRUARY 2016

WHAT WE’RE READING

CONTENTS LOGISTICS | ADDRESSING FUTURE DEMAND LEVELS NOW . M&A TRANSACTIONS Increased variation in what buyers require at a given time means it is no longer . PUBLIC MARKETS OVERVIEW sufficient to rely on traditional baseline ordering patterns. Meeting demand on a . STOCK PRICE PERFORMANCE more consistent basis therefore requires complex stock management systems, building and maintaining key relationships throughout the supply chain and a . OUR GROUP review of the triggers that influence buying behavior. Recent years have seen a concerted focus on suppliers adopting more products lines – both in terms of volume and variation – in order to react quickly to the demands of buyers, which can often come at a moment’s notice. CONTACTS Supply Chain Digital UNITED STATES TRUCKING | LOGISTICS CHIEF EXPECTS TRUCKERS TO ADAPT TO NEW RULES Frank Mountcastle Logistics provider C.H. Robinson Worldwide Inc. says the trucking industry should Managing Director [email protected] absorb new federal safety regulations with relative ease despite sharp divisions +1 (804) 915-0124 among trucking companies over the rules. The requirement for electronic logging devices and restrictions on driving hours for truck drivers will raise costs for some Jason Bass smaller trucking companies, John Wiehoff, the company’s chief executive, said in Managing Director an earnings conference call with analysts on Wednesday. “But we’re pretty [email protected] comfortable…that it will get absorbed over time and that it will get adapted to by +1 (804) 915-0132 the small carriers,” he said. Joe Conner Wall Street Journal Managing Director [email protected] +1 (804) 915-0151 MARINE | EXPANSION OF PANAMA CANAL NEARLY FINISHED Jeff Burkett Nearly a decade in the making, the expansion of the Panama Canal is expected Director [email protected] to be ready for commercial traffic in late spring. However, a vigorous debate +1 (804) 932-1334 continues over just how much that project will shift U.S.-bound ocean freight to the East Coast at a time when new, larger ships that are too big to traverse even the Jershon Jones widened canal already are servicing West Coast ports. Today, the century-old Director canal linking the Pacific Ocean and the Caribbean Sea can accommodate only [email protected] ships carrying up to about 5,000 20-foot containers, but growth in the size of cargo +1 (804) 932-1356 vessels helped prompt the Panama Canal Authority to begin the $5.25 billion Jeff Kidd expansion in 2007. Vice President Transport Topics [email protected] +1 (804) 915-0178 RAIL | RAIL COMPETITION INTENSE FOR EVEN MODEST U.S. GROWTH James O’Malley Vice President Intermodal volume growth slid to a near-halt in 2015, and the headwinds that [email protected] stymied growth — high inventories, a strong U.S. dollar, decelerating +1 (804) 915-0165 manufacturing production, low fuel prices and flush truck capacity — show no signs of subsiding anytime soon. Outlook for the Class I rail industry in 2016 varies from cautiously optimistic to downright grim. Even though intermodal service has generally improved, the railroads are finding competition from the trucking sector EUROPE — for domestic loads and marine containers — as fierce as ever. Fluid truck capacity and historically low fuel prices have helped keep truck spot rates low. Jeffery Perkins With U.S. crude, gasoline and diesel inventories close to overflowing, fuel prices Managing Director and surcharges are likely to remain depressed. [email protected] Journal of Commerce +49 (0) 69 3650638 00

AIR | AIR FREIGHT GROWTH SLOWED TO 2.2% IN 2015

The International Air Transport Association (IATA) released figures for global air freight markets showing cargo volumes measured in freight tonne kilometers (FTKs) expanded 2.2% in 2015 compared to 2014. This was a slower pace of growth than the 5.0% growth recorded in 2014. The weakness reflects sluggish trade growth in Europe and Asia-Pacific. After a strong start, air freight volumes began a decline that continued through most of 2015, until some improvements to world trade drove a modest pick-up late in the year. IATA www.harriswilliams.com

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 2/11/2016 Logistics Advanced Distribution Provides manufacturing services and logistics services through cross Dicom Transportation docking facilities. Group, L.P.

2/9/2016 Logistics Gary Heer Transport Ltd. Provides refrigerated truckload hauling services. Versacold International Corporation

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.

1/14/2016 Logistics EZ Alternative Transport Provides bulk chemical hauling services. Heniff Transportation Systems

1/12/2016 Logistics Enroute Systems Provides SaaS transportation management systems. Pitney Bowes Inc. Corporation

1/11/2016* Logistics Consolidated Aviation Provides cargo handling services throughout the United States and Worldwide Flight Services, Services LLC South America. Inc.

12/29/2015* Logistics Sinotrans & CSC Holdings Provides integrated logistics solutions for customers in China and China Merchants Group Co. Ltd. internationally. Limited

12/9/2015 Logistics United Transportation Provides motor fuel delivery services. Sentinel Transportation LLC Co LLC, Motor Fuel Delivery Fleet 12/7/2015* Marine Neptune Orient Lines Owns and operates charter vessels and other related assets and CMA CGM S.A. Limited provides global cargo container transportation services.

12/2/2015 Equipment Polar Corporation Provider of high-quality tank trailers, parts, and related repair & American Industrial maintenance services. Partners

12/1/2015 Logistics Optimal Freight, LLC Provides truckload, less-than-truckload, intermodal, air, ocean, and Transport America, Inc. freight management services.

12/1/2015 Logistics Bear Transportation Provides less-than-truckload and truckload freight brokerage ABF Logistics II, Inc. Services, LP services.

11/18/2015 Logistics The Secor Group, Inc. Provides moving, storage, and logistics services. The Suddath Companies

11/9/2015* Equipment TAL International Group, Leases intermodal transportation equipment and provides maritime Triton Container Inc. container management services worldwide. International Limited

11/4/2015 Logistics Juno Logistics Provides non-asset based, global third party logistics. Sojitz Logistics Corporation

11/2/2015 Logistics Copper Logistics, Inc. Provides domestic and international asset-light freight forwarding Radiant Logistics, Inc. services.

11/2/2015 Logistics Dunbar Armored, Inc., Provides armored logistics services and cash management solutions. Loomis AB Global Logistics Operations 10/29/2015 Logistics TransForce Waste Provides an extended range of services for residual materials GFL Environmental Inc. Management Segment management in the residential, municipal, industrial, commercial, *Denotes pending transactions and institutional sectors.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2016E EBITDA

Logistics Providers 9.3x Logistics Providers 8.2x

Marine 8.4x Rail & Rail Services 7.8x

Rail & Rail Services 7.8x Marine 6.7x

Trucking 5.0x Trucking 4.9x Transportation 4.2x Transportation Equipment 4.6x Equipment

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

Rail & Rail Services 7.3% Logistics Providers 5.7%

Trucking 7.2% Trucking 3.7%

Transportation Logistics Providers 5.2% 2.0% Equipment

Transportation 4.3% Marine Equipment 0.5%

Marine (2.8%) Rail & Rail Services (2.5%)

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

Trucking 16.7% Logistics Providers 8.9%

Rail & Rail Transportation 10.8% 7.4% Services Equipment

Logistics 10.4% Trucking 4.9% Providers

Transportation 3.7% Equipment Marine 2.6%

Marine 2.9% Rail & Rail Services 1.7%

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

STOCK PRICE PERFORMANCE

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

S&P 500 Trucking 19.2% (11.1%)

Logistics Providers Logistics Providers 8.6% (22.6%)

Rail & Rail Services Rail & Rail Services 6.7% (32.9%)

Marine S&P 500 6.7% (37.3%)

Trucking Transportation Equipment 5.8% (38.6%)

Transportation Equipment Marine (1.4%) (46.3%)

TRAILING TWELVE MONTHS

(Indexed to February 15, 2014)

20%

10%

0%

(10%)

(20%)

(30%)

(40%)

(50%) Feb-15-2015 May-15-2015 Aug-15-2015 Nov-15-2015 Feb-15-2016

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 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

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 │ FEBRUARY 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.

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

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

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 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 Feb-15 Aug-15 Current 2016E 2017P Transportation & Logistics

Logistics Providers Agility Public Warehousing Company K.S.C.P. $1,613 $1.41 6.8% (46.2%) $2.65 53.1% 10.9x 9.0x 6.1x NA NA Air Transport Services Group, Inc. $985 $10.73 13.9% 22.8% $11.20 95.8% 5.1x 4.8x 5.1x 4.7x 4.4x Atlas Air Worldwide Holdings, Inc. $2,311 $36.31 8.8% (24.4%) $59.47 61.1% 8.3x 6.6x 5.9x 6.2x 6.2x CH Robinson Worldwide Inc. $10,830 $70.16 10.4% (3.3%) $76.18 92.1% 14.6x 12.7x 11.7x 11.1x 10.6x Deutsche Post AG $31,871 $23.30 (6.3%) (29.5%) $34.76 67.0% 9.7x 10.6x 9.3x 5.9x 5.5x DSV A/S $7,311 $39.98 8.9% 26.6% $43.28 92.4% 12.9x 15.0x 14.7x 11.7x 10.7x Echo Global Logistics, Inc. $893 $24.34 23.6% (8.9%) $34.35 70.9% 16.7x NM 16.6x 10.0x 8.2x Expeditors International of Washington Inc. $7,545 $45.70 8.3% (0.2%) $51.80 88.2% 12.1x 11.6x 10.1x 9.6x 9.0x FedEx Corporation $40,292 $128.60 1.3% (27.1%) $185.19 69.4% 7.5x 7.0x 5.5x 5.3x 4.8x Forward Air Corp. $1,208 $37.51 (8.8%) (30.1%) $57.65 65.1% 12.6x 12.0x 10.2x 7.6x 6.7x Hub Group Inc. $1,246 $35.93 21.4% (8.9%) $44.00 81.7% 10.8x 11.0x 8.1x 8.0x 7.6x JB Hunt Transport Services Inc. $9,481 $74.43 14.2% (10.2%) $93.50 79.6% 11.4x 10.2x 9.0x 8.4x 7.7x Kuehne + Nagel International AG $15,381 $132.33 4.6% (8.0%) $150.44 88.0% 16.5x 15.2x 14.8x 13.9x 13.2x Landstar System Inc. $2,495 $58.89 5.4% (14.2%) $73.60 80.0% 12.1x 11.4x 9.2x 9.5x 8.8x Panalpina World Transport Holding Ltd. $2,110 $101.07 2.9% (25.3%) $149.73 67.5% 19.0x 17.1x 14.8x 9.7x 8.1x Roadrunner Transportation Systems, Inc. $857 $11.14 56.7% (56.2%) $28.51 39.1% 11.5x 10.0x 6.6x 6.1x 5.8x Ryder System, Inc. $8,353 $54.14 9.9% (42.4%) $100.64 53.8% 5.8x 5.8x 4.7x 4.5x 4.3x TransForce Inc. $2,696 $14.68 (1.4%) (39.7%) $22.84 64.3% 9.3x 7.9x 6.9x 8.2x 7.9x United Parcel Service, Inc. $95,562 $97.25 8.0% (4.5%) $107.32 90.6% 14.4x 11.9x 9.8x 9.2x 8.7x Universal Truckload Services Inc. $634 $14.42 21.1% (41.9%) $27.63 52.2% 8.4x 6.7x 5.8x 5.6x 5.4x World Fuel Services Corp. $3,211 $42.54 11.7% (20.8%) $58.50 72.7% 13.4x 10.5x 10.3x 9.4x 8.4x XPO Logistics, Inc. $5,146 $23.18 8.0% (45.4%) $50.96 45.5% NM NM 16.2x 4.2x 3.5x Median 8.6% (22.6%) 70.2% 11.5x 10.6x 9.3x 8.2x 7.7x Trucking ArcBest Corporation $486 $19.27 6.9% (51.5%) $43.68 44.1% 6.3x 4.4x 2.9x 2.9x 2.6x Celadon Group Inc. 786 9.44 26.2% (62.7%) 29.15 32.4% 10.2x 9.4x 6.5x 5.5x 4.9x Covenant Transportation Group, Inc. 620 22.02 44.4% (25.7%) 36.82 59.8% 8.3x 5.4x 4.9x 4.9x 4.6x Heartland Express, Inc. 1,569 19.05 17.2% (26.4%) 26.09 73.0% 11.0x 8.6x 8.2x 7.2x 6.7x Knight Transportation Inc. 2,115 24.84 13.3% (23.0%) 34.73 71.5% 11.4x 8.6x 7.3x 7.2x 6.5x Marten Transport Ltd. 603 17.26 6.2% (23.5%) 24.92 69.3% 6.8x 5.2x 4.8x 4.3x 4.0x Old Dominion Freight Line Inc. 5,278 60.95 17.2% (20.1%) 80.96 75.3% 11.4x 10.0x 8.0x 7.5x 6.8x P.A.M. Transportation Services, Inc. 268 24.69 (5.1%) (56.0%) 67.61 36.5% 8.8x 6.6x 4.3x NA NA Saia, Inc. 739 26.84 36.5% (41.1%) 47.74 56.2% 8.3x 7.0x 4.8x 4.7x 4.3x Swift Transportation Company 3,746 17.25 37.6% (36.0%) 28.90 59.7% 9.0x 7.6x 6.2x 5.8x 5.4x Universal Truckload Services Inc. 634 14.42 21.1% (41.9%) 27.63 52.2% 8.4x 6.7x 5.8x 5.6x 5.4x USA Truck Inc. 263 16.11 23.9% (46.8%) 32.14 50.1% 7.1x 5.0x 4.5x 4.8x 4.5x Werner Enterprises Inc. 1,957 26.58 22.2% (14.4%) 33.42 79.5% 7.2x 6.0x 5.0x 4.8x 4.5x YRC Worldwide Inc. 1,132 7.00 (29.6%) (64.4%) 21.37 32.8% 7.9x 5.5x 4.4x 3.4x 3.1x Median 19.2% (38.6%) 58.0% 8.4x 6.6x 5.0x 4.9x 4.6x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 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 Feb-15 Aug-15 Current 2016E 2017P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,312 $41.95 2.6% (22.7%) $67.31 62.3% 6.7x 5.3x 5.2x 5.2x NA Canadian National Railway Company 51,048 55.31 10.8% (21.1%) 64.24 86.1% 12.9x 11.6x 11.0x 10.5x 9.9x Canadian Pacific Railway Limited 24,983 124.09 18.7% (33.4%) 177.09 70.1% 14.9x 12.5x 10.8x 10.0x 9.4x CSX Corp. 32,580 24.19 6.3% (33.0%) 37.67 64.2% 9.3x 7.8x 6.8x 7.0x 6.6x FreightCar America Inc. 110 19.04 2.9% (30.6%) 32.07 59.4% 15.0x 6.5x 2.6x 2.2x 3.0x Genesee & Wyoming Inc. 5,334 53.13 13.0% (44.0%) 105.49 50.4% 11.6x 10.7x 9.4x 9.0x 8.5x The Greenbrier Companies, Inc. 1,193 26.56 19.0% (53.6%) 66.50 39.9% 7.6x 4.9x 2.2x 2.5x 4.0x Kansas City Southern 11,196 79.40 17.4% (32.8%) 120.63 65.8% 13.9x 12.2x 10.2x 9.9x 9.1x Norfolk Southern Corporation 30,909 72.56 1.1% (34.0%) 112.05 64.8% 9.3x 7.8x 7.8x 7.7x 7.1x Trinity Industries Inc. 6,287 21.44 7.1% (28.0%) 37.15 57.7% 5.7x 5.1x 4.1x 4.6x 5.2x Union Pacific Corporation 78,153 77.20 4.2% (37.0%) 124.52 62.0% 11.1x 8.7x 7.8x 7.9x 7.5x Westinghouse Air Brake Technologies Corporation 6,549 65.35 2.8% (27.8%) 105.10 62.2% 15.3x 15.4x 10.0x 9.6x 9.6x Median 6.7% (32.9%) 62.3% 11.3x 8.2x 7.8x 7.8x 7.5x Marine Aegean Marine Petroleum Network Inc. $904 $6.63 0.5% (55.6%) $15.71 42.2% 15.3x 12.4x 9.0x 6.7x 6.3x Costamare Inc. 2,012 6.70 (3.3%) (65.8%) 20.50 32.7% 10.1x 8.6x 6.3x 6.1x 6.4x Diana Shipping Inc. 530 2.25 (9.3%) (68.9%) 8.27 27.2% 15.5x NM 14.6x NM NM Kirby Corporation 3,719 53.70 11.1% (32.3%) 84.24 63.7% 8.0x 7.5x 6.5x 7.5x 7.2x Matson, Inc. 2,192 39.87 7.5% 4.5% 53.18 75.0% 8.8x 9.9x 8.4x 6.6x 6.5x Neptune Orient Lines Limited 5,188 0.88 2.8% 18.1% 0.89 99.2% NM NM NM NM NM Nordic American Tankers Limited 1,408 12.42 (4.7%) 21.8% 17.45 71.2% 17.7x 11.0x 6.7x 6.9x 7.7x Rand Logistics, Inc. 212 0.89 (21.2%) (75.2%) 3.77 23.6% 7.8x 7.9x 8.6x 7.3x 5.8x SEACOR Holdings Inc. 1,324 42.45 (4.5%) (42.4%) 78.95 53.8% 7.7x 9.2x 7.4x 6.6x 6.5x Wilh. Wilhelmsen ASA 1,982 4.46 18.3% (22.6%) 5.96 75.0% 15.8x 12.2x 10.7x 4.7x 4.4x Median (1.4%) (37.3%) 58.8% 10.1x 9.5x 8.4x 6.7x 6.4x Transportation Equipment Accuride Corp. $326 $0.90 (6.3%) (82.4%) $5.47 16.5% 7.4x 5.9x 4.2x 4.6x 4.5x Dana Holding Corporation 2,620 12.34 8.9% (46.3%) 23.22 53.1% 6.1x 5.2x 4.0x 4.0x 3.8x Gentherm Incorporated 1,391 38.96 2.5% (5.5%) 57.95 67.2% 11.2x 12.8x 9.3x 8.4x 7.5x Spartan Motors Inc. 84 2.92 5.8% (46.5%) 5.51 53.0% 17.3x 12.0x 8.9x 7.7x 5.7x Wabash National Corp. 912 11.66 13.4% (16.8%) 15.21 76.7% 7.2x 6.2x 4.2x 4.4x 5.2x Median 5.8% (46.3%) 53.1% 7.4x 6.2x 4.2x 4.6x 5.2x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P Transportation & Logistics Logistics Providers Agility Public Warehousing Company K.S.C.P. $5,039 $4,873 $4,633 NA NA NA NA NA $254 $296 $265 NA NA NA NA NA Air Transport Services Group, Inc. 607 580 590 593 625 651 (0.8%) 4.8% 163 158 179 197 212 223 6.6% 6.2% Atlas Air Worldwide Holdings, Inc. 1,632 1,643 1,785 1,838 1,897 1,937 4.0% 2.7% 296 307 344 379 375 379 8.5% (0.1%) CH Robinson Worldwide Inc. 11,359 12,752 13,470 13,585 13,611 14,551 6.1% 3.5% 751 731 797 920 974 1,026 7.0% 5.6% Deutsche Post AG 73,191 75,621 68,547 65,008 69,539 72,015 (3.9%) 5.3% 4,129 5,116 4,469 4,382 5,403 5,768 2.0% 14.7% DSV A/S 7,937 8,439 7,896 7,476 10,752 11,252 (2.0%) 22.7% 519 543 486 519 631 696 0.0% 15.7% Echo Global Logistics, Inc. 758 884 1,173 1,528 1,851 2,196 26.3% 19.9% 27 27 36 66 89 108 35.0% 27.9% Expeditors International of Washington Inc. 5,992 6,080 6,565 6,725 7,004 7,350 3.9% 4.5% 571 600 644 768 779 838 10.4% 4.5% FedEx Corporation 42,680 44,287 45,567 47,609 49,899 51,964 3.7% 4.5% 5,367 6,112 6,417 6,891 7,594 8,369 8.7% 10.2% Forward Air Corp. 584 652 781 959 1,022 1,089 18.0% 6.6% 104 107 127 144 161 179 11.6% 11.5% Hub Group Inc. 3,124 3,374 3,571 3,542 3,614 3,818 4.3% 3.8% 134 138 135 127 160 169 (1.8%) 15.3% JB Hunt Transport Services Inc. 4,058 4,527 5,083 6,185 6,634 7,294 15.1% 8.6% 759 830 926 1,055 1,127 1,230 11.6% 8.0% Kuehne + Nagel International AG 18,699 19,290 17,618 20,253 21,768 22,679 2.7% 5.8% 979 1,070 987 1,047 1,106 1,173 2.3% 5.9% Landstar System Inc. 2,735 2,628 3,145 3,315 3,237 3,461 6.6% 2.2% 223 201 250 269 263 279 6.4% 1.9% Panalpina World Transport Holding Ltd. 7,227 7,589 6,752 6,060 6,318 6,539 (5.7%) 3.9% 92 161 150 176 214 254 24.2% 20.3% Roadrunner Transportation Systems, Inc. 1,073 1,361 1,873 1,999 2,014 2,119 23.0% 2.9% 81 99 121 129 142 153 16.8% 8.6% Ryder System, Inc. 6,257 6,419 6,639 6,575 6,759 7,086 1.7% 3.8% 1,396 1,473 1,637 1,815 1,842 1,931 9.1% 3.1% TransForce Inc. 2,822 2,620 2,817 3,095 2,924 2,974 3.1% (2.0%) 392 318 361 372 322 341 (1.7%) (4.3%) United Parcel Service, Inc. 54,127 55,438 58,232 58,585 61,812 64,807 2.7% 5.2% 3,201 8,868 6,864 9,752 10,442 11,015 45.0% 6.3% Universal Truckload Services Inc. 1,037 1,033 1,192 1,129 1,157 1,202 2.9% 3.2% 96 105 115 108 110 116 4.1% 3.5% World Fuel Services Corp. 38,945 41,562 43,386 31,516 29,545 32,360 (6.8%) 1.3% 287 301 319 305 353 390 2.1% 13.1% XPO Logistics, Inc. 279 702 2,357 7,397 15,250 16,545 NM NM (25) (20) 95 488 1,245 1,440 NM NM Total $290,163 $302,356 $303,671 $294,972 $317,233 $333,889 5.2% 5.7% $19,796 $27,540 $25,722 $29,910 $33,542 $36,076 10.4% 8.9% Trucking ArcBest Corporation $2,066 $2,300 $2,613 $2,666 $2,745 $2,879 8.9% 3.9% $70 $104 $155 $172 $165 $190 34.8% 5.3% Celadon Group Inc. 475 489 615 888 1,082 1,137 23.2% 13.1% 103 100 97 136 147 163 10.0% 9.3% Covenant Transportation Group, Inc. 527 539 579 703 707 758 10.1% 3.8% 71 65 89 126 124 137 21.0% 4.0% Heartland Express, Inc. 546 582 871 742 720 750 10.8% 0.5% 138 149 208 226 215 232 18.0% 1.2% Knight Transportation Inc. 752 792 926 1,197 1,191 1,278 16.8% 3.3% 184 192 239 294 295 321 16.8% 4.6% Marten Transport Ltd. 638 659 673 671 695 742 1.7% 5.1% 101 110 115 134 140 152 9.7% 6.3% Old Dominion Freight Line Inc. 2,135 2,338 2,788 2,980 3,118 3,378 11.8% 6.5% 396 460 587 667 711 781 19.0% 8.2% P.A.M. Transportation Services, Inc. 298 313 317 NA NA NA NA NA 41 50 55 NA NA NA NA NA Saia, Inc. 1,099 1,139 1,272 1,225 1,222 1,288 3.7% 2.6% 107 126 145 151 153 172 12.3% 6.6% Swift Transportation Company 3,976 4,118 4,299 4,244 4,303 4,496 2.2% 2.9% 573 577 583 629 651 700 3.2% 5.5% Universal Truckload Services Inc. 1,037 1,033 1,192 1,129 1,157 1,202 2.9% 3.2% 96 105 115 108 110 116 4.1% 3.5% USA Truck Inc. 512 555 602 520 476 501 0.5% (1.9%) 20 35 60 59 54 58 44.3% (1.1%) Werner Enterprises Inc. 2,036 2,029 2,139 2,108 2,138 2,237 1.2% 3.0% 318 296 318 391 407 432 7.1% 5.1% YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,821 5,005 (0.1%) 1.8% 198 199 197 352 328 369 NM NM Total $20,948 $21,752 $23,955 $23,906 $24,376 $25,650 7.2% 3.7% $2,415 $2,567 $2,962 $3,446 $3,499 $3,821 16.7% 4.9%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $712 $751 $733 $848 $823 $674 6.0% (10.9%) $145 $179 $204 $270 $251 NA NM NA Canadian National Railway Company 9,952 9,954 10,478 9,106 9,304 9,795 (2.9%) 3.7% 4,624 4,568 4,900 4,606 4,872 5,146 (0.1%) 5.7% Canadian Pacific Railway Limited 5,568 5,631 5,582 4,861 4,901 5,172 (4.4%) 3.2% 1,774 2,194 2,434 2,338 2,466 2,649 9.6% 6.4% CSX Corp. 11,763 12,026 12,669 11,856 11,218 11,694 0.3% (0.7%) 4,523 4,577 4,803 4,795 4,613 4,939 2.0% 1.5% FreightCar America Inc. 677 290 599 812 718 624 6.2% (12.4%) 41 (8) 17 52 50 38 8.3% NM Genesee & Wyoming Inc. 875 1,569 1,639 2,001 2,010 2,100 31.8% 2.5% 277 534 574 584 591 625 28.3% 3.4% The Greenbrier Companies, Inc. 1,736 1,685 2,121 2,652 2,771 2,157 15.2% (9.8%) 152 145 237 431 471 319 NM NM Kansas City Southern 2,239 2,369 2,577 2,418 2,388 2,552 2.6% 2.7% 872 962 1,106 1,080 1,131 1,222 7.4% 6.4% Norfolk Southern Corporation 11,040 11,245 11,624 10,535 10,076 10,601 (1.5%) 0.3% 4,046 4,179 4,531 3,991 4,031 4,320 (0.5%) 4.0% Trinity Industries Inc. 3,812 4,365 6,170 6,474 5,792 5,211 19.3% (10.3%) 730 963 1,400 1,651 1,355 1,198 31.3% (14.8%) Union Pacific Corporation 19,686 20,684 22,560 22,007 20,965 21,900 3.8% (0.2%) 8,505 9,223 10,657 10,216 9,898 10,508 6.3% 1.4% Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,314 3,407 3,475 11.5% 2.4% 436 485 588 668 688 685 15.2% 1.3% Total $70,451 $73,136 $79,795 $76,884 $74,373 $75,955 7.3% (2.5%) $26,125 $28,000 $31,451 $30,681 $30,416 $31,648 10.8% 1.7% Marine Aegean Marine Petroleum Network Inc. $7,259 $6,335 $6,662 $4,374 $4,550 $4,831 (15.5%) 5.1% $85 $75 $98 $116 $136 $145 11.2% 11.6% Costamare Inc. 386 414 484 490 487 476 8.3% (1.4%) 238 258 318 341 326 318 12.8% (3.5%) Diana Shipping Inc. 221 164 176 143 121 139 (13.5%) (1.2%) 124 53 50 31 (2) 14 (37.3%) (32.1%) Kirby Corporation 2,113 2,242 2,566 2,180 1,874 1,905 1.1% (6.5%) 509 582 647 576 494 509 4.2% (6.0%) Matson, Inc. 1,560 1,637 1,714 1,903 2,077 2,152 6.9% 6.3% 175 172 203 318 337 345 22.2% 4.1% Neptune Orient Lines Limited 9,512 8,831 8,617 6,041 5,874 6,061 (14.0%) 0.2% 96 131 294 298 429 525 NM 32.6% Nordic American Tankers Limited 131 244 351 294 288 272 NM NM 13 (21) 60 220 201 179 NM NM Rand Logistics, Inc. 109 119 129 149 145 144 11.1% (1.8%) 28 25 29 35 29 36 8.1% 1.4% SEACOR Holdings Inc. 1,308 1,247 1,319 1,074 1,089 1,156 (6.4%) 3.7% 165 194 241 160 199 205 (0.9%) 13.0% Wilh. Wilhelmsen ASA 395 325 285 2,326 2,345 2,370 NM NM 227 154 140 346 429 440 NM NM Total $22,993 $21,559 $22,303 $18,974 $18,850 $19,506 (2.8%) 0.5% $1,658 $1,624 $2,080 $2,442 $2,578 $2,716 2.9% 2.6% Transportation Equipment Accuride Corp. $795 $643 $705 $690 $678 $691 (4.6%) 0.1% $65 $43 $75 $81 $70 $78 7.9% (2.0%) Dana Holding Corporation 7,224 6,769 6,617 6,022 5,847 6,207 (5.9%) 1.5% 753 706 705 655 651 690 (4.5%) 2.6% Gentherm Incorporated 555 662 811 861 946 1,043 15.7% 10.1% 67 84 135 150 167 185 30.8% 10.7% Spartan Motors Inc. 471 470 507 550 554 578 5.3% 2.6% 16 6 9 8 11 15 (19.5%) 35.2% Wabash National Corp. 1,462 1,636 1,863 1,996 1,958 1,825 10.9% (4.4%) 108 142 161 214 213 175 NM (9.5%) Total $10,506 $10,179 $10,504 $10,118 $9,984 $10,346 4.3% 2.0% $1,008 $981 $1,084 $1,108 $1,111 $1,142 3.7% 7.4%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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