Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ APRIL 2015

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. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, 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.

0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

CONTENTS HARRIS WILLIAMS & CO. DEAL SPOTLIGHT . M&A TRANSACTIONS . PUBLIC MARKETS OVERVIEW Marquette Transportation Company . STOCK PRICE PERFORMANCE Harris Williams & Co. advised Marquette Transportation . OUR GROUP a portfolio company of Company (“Marquette”), a portfolio company of KRG Capital Partners, on its sale to BDT Capital Partners. Marquette is a leading provider of towing services on the

has been acquired by inland waterways of the United States. CONTACTS

Press Release UNITED STATES

Frank Mountcastle Managing Director WHAT WE’RE READING [email protected] +1 (804) 915-0124 LOGISTICS | INTERNET OF THINGS POISED TO TRANSFORM LOGISTICS Jason Bass Managing Director A new trend report compiled by Cisco Consulting Services and DHL claims that the [email protected] Internet of Things (IoT) will completely transform global supply chain structures and +1 (804) 915-0132 logistics practices. The IoT presents a unique technology transition that is impacting Joe Conner all our lives and will have huge implications for the business of logistics as we move Managing Director from 15 billion connected devices today to some 50 billion by 2020. [email protected] Fleet Owner +1 (804) 915-0151 Jeff Burkett TRUCKING | REVENUE INCREASINGLY FLOWS TO BIGGEST CARRIERS Director [email protected] In the U.S., trucking is considered a "fragmented" industry, with hundreds of +1 (804) 932-1334 thousands of carriers, many of them fielding only a few trucks, hauling freight Jershon Jones across the continent. However, trucking revenue has become increasingly Director concentrated, as the number of carriers with more than $1bn in annual revenue [email protected] more than doubled over the last decade. +1 (804) 932-1356 Journal of Commerce Jeff Kidd Vice President RAIL | 2014 SAFEST YEAR ON RECORD [email protected] +1 (804) 915-0178 The most recent safety statistics released by the Federal Railroad Administration (FRA) in April show that 2014 was the safest year on record for train operations in EUROPE the United States, in terms of both the number of accidents and the accident rate per million train-miles, for a variety of causes. Jeffery Perkins Railway Age Managing Director [email protected] +49 (0) 69 3650638 00 MARINE | SAVINGS AVAILABLE THROUGH ALLIANCE COOPERATION

The scale advantage container shipping alliances are realizing at sea comes to an end when vessels arrive in port, and extending that cooperation to land is the critical next step towards improving efficiency and profitability, a new McKinsey report has found. Reducing the overall cost base and complexity of land-based work by combining the operations of alliance members would give a midsize alliance member $100 million in U.S. landside savings a year, the report found. Journal of Commerce

AIR | LUNAR NEW YEAR AND U.S. PORT CONGESTION BOOST AIR FREIGHT

The International Air Transport Association (IATA) released February data for global air freight markets showing a sharp increase in year-on-year air freight volumes. Growth measured by freight tonne kilometers (FTK) was up 11.7% in February, compared to February 2014. Capacity grew 7.4%. IATA

www.harriswilliams.de

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer Pending Logistics Command Provides truckload brokerage and non-asset based transportation Echo Global Logistics, Inc. Transportation, LLC services.

Pending Marine Baltic Trading Limited Transports iron ore, coal, grain, steel products, and other drybulk Genco Shipping & Trading cargo along global shipping routes. Ltd.

Pending Logistics TNT Express N.V. Provides express delivery services in Europe, the Middle East and FedEx Corporation Africa, Asia-Pacific, and the Americas.

Pending Logistics Transfreight North Provides third-party logistics and supply chain solutions. Penske Logistics, Inc. America

Pending Logistics Air Medical Group Provides air ambulance services. KKR & Co. Holdings, Inc.

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 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.

4/2/2015 Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North Radiant Global Logistics America.

4/2/2015 Trucking Jardine Transport Ltd. Provides long-haul trucking solutions including flatbed and drop- SeaFort Capital deck services.

3/31/2015 Marine Marquette Provides towing services on inland waterways of the United States. BDT Capital Partners, LLC Transportation Company

3/25/2015 Rail Freightliner Group Ltd Provides international freight rail services with operations in the Genesee & Wyoming Inc. United Kingdom, Poland, Germany, the Netherlands, and Australia.

3/23/2015 Logistics McNutt Automotive Provides asset-light automotive logistics services. MetroGistics, LLC Logistics, LLC

3/23/2015 Logistics Modern Forwarding and Provides truckload and less-than-truckload transport services with Dicom Transportation Leasing Company Inc. emphasis on U.S.-Canada cross-border business. Group, L.P.

3/9/2015 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.

3/3/2015 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.

2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction services to the freight and Westinghouse Air Brake commuter rail industry. Technologies Corporation

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015E EBITDA

Logistics Providers 11.3x Logistics Providers 10.4x

Rail & Rail Services 10.6x Rail & Rail Services 9.1x

Marine 9.4x Marine 8.4x

Trucking 8.2x Trucking 6.6x

Transportation Transportation 7.1x 6.0x Equipment Equipment

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

Rail & Rail Services 11.5% Trucking 9.5%

Transportation 8.7% Rail & Rail Services 8.7% Equipment

Trucking 7.7% Logistics Providers 7.0%

Transportation Logistics Providers 6.4% 5.2% Equipment

Marine 3.5% Marine 2.0%

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

Rail & Rail Services 17.5% Trucking 15.7%

Trucking 13.0% Logistics Providers 13.3%

Marine 8.1% Marine 12.3%

Transportation 7.4% Rail & Rail Services 11.5% Equipment

Transportation Logistics Providers 6.8% 11.2% Equipment

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

STOCK PRICE PERFORMANCE

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

Marine 9.7% Rail & Rail Services 15.7%

Rail & Rail Services (2.0%) Logistics Providers 9.1%

Transportation (4.3%) Trucking 6.9% Equipment

Transportation Logistics Providers (4.5%) (5.9%) Equipment

Trucking (7.2%) Marine (9.5%)

TRAILING TWELVE MONTHS

(Indexed to April 21, 2014)

40%

30%

20%

10%

(10%)

(20%)

(30%) 4/21/14 7/21/14 10/21/14 1/21/15 4/21/15

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 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 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 │ APRIL 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.

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

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

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Philadelphia Frankfurt Two International Place 1600 Market Street Bockenheimer Landstrasse 33-35 24th Floor 21st Floor 60325 Frankfurt Boston, Massachusetts 02110 Philadelphia, Pennsylvania 19103 Germany Phone: +1 (617) 482-7501 Phone: +1 (267) 675-5900 Phone: +49 069 3650638 00 Fax: +1 (617) 482-7503 Fax: +1 (267) 675-5901 Fax: +49 069 3650638 01 Cleveland Richmond (U.S. Headquarters) London 1900 East 9th Street 1001 Haxall Point 63 Brook Street 20th Floor 9th Floor London W1K 4HS, England Cleveland, Ohio 44114 Richmond, Virginia 23219 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (804) 648-0072 Fax: +44 (0) 20 7526 2187 Fax: +1 (216) 689-2401 Fax: +1 (804) 648-0073 Minneapolis San Francisco NETWORK OFFICES 222 South 9th Street 575 Market Street Suite 3350 31st Floor Beijing New Delhi Minneapolis, Minnesota 55402 San Francisco, California 94105, USA Phone: +1 (612) 359-2700 Phone: +1 (415) 288-4260 Hong Kong Shanghai Fax: +1 (612) 359-2701 Fax: +1 (415) 288-4269 Mumbai

PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 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 Apr-14 Oct-14 Current 2014 2015E Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $2,660 $2.55 (4.3%) (4.6%) $2.65 96.2% 8.8x 10.1x 10.1x 10.1x NA Air Transport Services Group, Inc. 917 9.35 4.5% 18.4% 9.72 96.2% 5.4x 4.6x 5.1x 5.1x 5.0x Atlas Air Worldwide Holdings, Inc. 2,730 43.28 (7.8%) 22.4% 51.00 84.9% 6.8x 7.5x 7.9x 7.9x 7.5x CH Robinson Worldwide Inc. 11,115 68.57 (8.8%) 20.8% 77.49 88.5% 12.6x 14.1x 14.0x 14.0x 12.4x Deutsche Post AG 40,702 31.79 2.4% (13.5%) 33.60 94.6% 9.8x 9.3x 9.2x 9.2x 8.3x DSV A/S 6,361 32.51 4.7% 0.8% 34.86 93.2% 12.3x 10.9x 13.1x 13.1x 12.9x Echo Global Logistics, Inc. 575 25.50 (6.3%) 48.1% 30.18 84.5% 13.3x 17.6x 16.0x 16.0x 10.6x Expeditors International of Washington Inc. 7,780 45.60 (6.7%) 14.0% 49.51 92.1% 11.1x 10.8x 12.1x 12.1x 11.0x FedEx Corporation 51,421 168.00 (3.4%) 23.9% 183.51 91.5% 7.1x 7.5x 7.6x 8.5x 7.4x Forward Air Corp. 1,531 50.75 (8.9%) 9.1% 57.65 88.0% 12.2x 11.6x 12.1x 12.1x 9.6x Hub Group Inc. 1,375 37.28 (6.2%) (13.0%) 51.47 72.4% 11.7x 9.9x 10.2x 10.2x 11.0x JB Hunt Transport Services Inc. 11,380 90.18 1.8% 19.0% 93.50 96.4% 11.6x 10.9x 11.7x 12.3x 10.8x Kuehne + Nagel International AG 16,408 147.38 (0.1%) 9.3% 155.98 94.5% 13.5x 13.5x 16.3x 16.6x 15.3x Landstar System Inc. 2,816 64.09 (5.8%) 5.0% 81.80 78.3% 13.0x 14.0x 11.3x 11.3x 10.2x Panalpina World Transport Holding Ltd. 3,120 147.48 2.3% (3.5%) 156.50 94.2% 18.9x 17.2x NM NM 13.7x Roadrunner Transportation Systems, Inc. 1,358 24.60 (6.6%) (1.2%) 29.02 84.8% 11.2x 10.4x 11.3x 11.3x 9.3x Ryder System, Inc. 9,495 94.48 (2.6%) 18.0% 99.32 95.1% 5.6x 5.8x 5.8x 5.8x 5.3x TransForce Inc. 3,786 23.87 (1.3%) 6.7% 25.81 92.5% 9.5x 9.5x 10.5x 10.5x 8.4x United Parcel Service, Inc. 93,675 95.38 (4.5%) (2.7%) 114.40 83.4% 10.8x 12.0x 13.6x 13.6x 9.8x Universal Truckload Services Inc. 856 21.35 (21.2%) (24.9%) 29.25 73.0% 10.5x 8.9x 7.5x 7.5x 7.1x UTi Worldwide Inc. 1,475 9.21 (32.4%) (11.4%) 14.75 62.4% 17.2x 18.9x NM 17.5x 15.6x World Fuel Services Corp. 4,450 56.15 0.6% 27.7% 58.50 96.0% 11.1x 9.9x 14.0x 14.0x 12.1x XPO Logistics, Inc. 3,342 42.05 (8.4%) 50.9% 47.49 88.5% NM NM NM NM 15.6x Median (4.5%) 9.1% 91.5% 11.2x 10.6x 11.3x 11.3x 10.4x Trucking ArcBest Corporation $907 $37.16 (8.2%) (2.3%) $47.52 78.2% 8.1x 5.7x 5.9x 5.9x 4.6x Celadon Group Inc. 1,064 27.12 (0.2%) 14.7% 29.15 93.0% 8.7x 6.8x 10.0x 10.2x 8.0x Con-way Inc. 2,731 42.04 (7.3%) 1.4% 53.54 78.5% 6.1x 5.6x 5.5x 5.5x 4.7x Covenant Transportation Group, Inc. 767 32.29 (7.0%) 229.8% 36.82 87.7% 5.6x 6.5x 8.6x 8.6x 6.6x Heartland Express, Inc. 2,018 22.90 (7.8%) 1.4% 27.96 81.9% 12.9x 11.3x 9.7x 9.7x 7.6x Knight Transportation Inc. 2,725 31.69 (7.1%) 29.7% 34.73 91.2% 10.3x 10.2x 11.4x 11.4x 8.9x Marten Transport Ltd. 770 23.63 1.2% 1.7% 25.71 91.9% 6.9x 5.8x 6.4x 6.7x 5.5x Old Dominion Freight Line Inc. 6,375 72.78 (9.4%) 31.6% 81.48 89.3% 10.3x 11.2x 10.9x 10.9x 9.3x P.A.M. Transportation Services, Inc. 481 57.42 3.3% 162.9% 63.70 90.1% 5.4x 6.7x 8.8x 8.8x NA Quality Distribution Inc. 637 10.23 (4.4%) (20.8%) 15.83 64.6% 10.4x 10.1x 9.1x 9.1x 7.4x Saia, Inc. 1,116 42.04 (6.8%) 10.7% 57.60 73.0% 7.7x 9.3x 7.7x 7.7x 6.3x Swift Transportation Company 5,029 25.50 (10.9%) 3.2% 29.44 86.6% 9.1x 8.3x 8.6x 8.6x 7.4x Universal Truckload Services Inc. 856 21.35 (21.2%) (24.9%) 29.25 73.0% 10.5x 8.9x 7.5x 7.5x 7.1x USA Truck Inc. 401 27.00 (5.8%) 47.0% 32.14 84.0% 8.8x 6.1x 6.7x 6.7x 6.2x Werner Enterprises Inc. 2,252 30.50 (7.9%) 19.0% 33.42 91.3% 6.4x 5.9x 7.1x 7.1x 5.9x YRC Worldwide Inc. 1,445 16.08 (16.2%) (17.9%) 29.21 55.0% 10.9x 8.6x 7.3x 7.3x 4.5x Median (7.2%) 6.9% 85.3% 8.7x 7.5x 8.2x 8.2x 6.6x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

PUBLIC COMPARABLES

Rail and Rail Services American Railcar Industries, Inc. $1,436 $52.24 6.6% (17.4%) $82.82 63.1% 7.8x 7.5x 7.0x 7.0x 6.1x Canadian National Railway Company 60,354 66.33 (2.9%) 17.1% 72.61 91.3% 12.1x 12.6x 12.3x 12.3x 11.7x Canadian Pacific Railway Limited 35,655 189.61 0.9% 28.1% 202.21 93.8% 13.8x 16.1x 14.6x 14.6x 12.7x CSX Corp. 41,846 33.30 (4.2%) 18.3% 37.99 87.7% 8.3x 9.1x 8.6x 8.8x 8.4x FreightCar America Inc. 195 29.45 (1.1%) 19.7% 37.48 78.6% NM NM 11.4x 11.4x 3.5x Genesee & Wyoming Inc. 6,572 92.75 (10.7%) (4.3%) 106.02 87.5% 12.9x 11.9x 11.5x 11.5x 9.7x The Greenbrier Companies, Inc. 2,156 63.52 12.5% 36.0% 78.32 81.1% 9.6x 7.8x 6.7x 9.1x 5.3x Kansas City Southern 13,833 104.49 (9.1%) 3.3% 126.49 82.6% 13.4x 13.9x 12.5x 12.5x 11.5x Norfolk Southern Corporation 41,210 100.65 (8.8%) 4.5% 117.64 85.6% 9.6x 9.0x 9.1x 9.1x 9.2x Trinity Industries Inc. 8,562 35.72 5.1% 0.9% 50.77 70.4% 7.4x 6.3x 6.1x 6.1x 5.5x Union Pacific Corporation 105,171 108.42 (7.8%) 14.4% 124.52 87.1% 9.9x 10.2x 9.9x 9.9x 9.1x Westinghouse Air Brake Technologies Corporation 9,283 95.09 (0.1%) 28.7% 97.16 97.9% 14.3x 13.3x 15.8x 15.8x 14.2x Median (2.0%) 15.7% 86.3% 9.9x 10.2x 10.6x 10.6x 9.1x Marine Aegean Marine Petroleum Network Inc. $1,304 $14.37 (3.6%) 56.0% $15.37 93.5% 14.0x 12.7x 11.9x 11.9x 9.9x Costamare Inc. 3,115 19.50 5.2% (7.5%) 24.94 78.2% 12.4x 10.5x 9.8x 9.8x 9.6x Diana Shipping Inc. 767 6.08 (6.9%) (48.4%) 12.20 49.8% NM 17.5x 15.3x 15.3x 17.8x Kirby Corporation 5,261 81.82 9.0% (19.3%) 124.12 65.9% 11.0x 10.4x 8.1x 8.1x 8.5x Matson, Inc. 1,833 40.40 (2.9%) 63.3% 42.55 94.9% 7.6x 7.4x 9.0x 9.0x 8.1x Neptune Orient Lines Limited 6,347 0.83 22.2% 3.2% 0.84 99.1% NM NM NM NM 10.3x Nordic American Tankers Limited 1,279 12.67 11.5% 46.1% 13.09 96.8% NM 19.5x NM NM 8.2x Rand Logistics, Inc. 246 3.40 10.4% (47.9%) 6.73 50.5% 9.2x 10.1x 7.7x 8.4x 7.0x SEACOR Holdings Inc. 1,894 75.91 11.3% (11.5%) 87.78 86.5% 9.7x 8.8x 7.7x 7.7x 7.9x Wilh. Wilhelmsen ASA 2,305 6.35 13.2% (27.6%) 7.76 81.8% 19.8x 18.2x 16.5x 16.5x 5.6x Median 9.7% (9.5%) 84.1% 11.0x 10.5x 9.4x 9.4x 8.4x Transportation Equipment Accuride Corp. $507 $4.46 (5.1%) (5.9%) $5.91 75.5% 9.8x 7.5x 6.8x 6.8x 5.5x Dana Holding Corporation 3,914 20.84 0.5% (8.5%) 24.82 84.0% 6.0x 4.7x 5.6x 5.6x 5.3x Gentherm Incorporated 1,825 50.50 3.8% 40.9% 52.56 96.1% 13.4x 11.6x 13.6x 13.6x 12.2x Spartan Motors Inc. 141 4.83 (5.7%) (8.9%) 5.71 84.6% 14.1x 12.7x 15.0x 15.0x 8.8x Wabash National Corp. 1,138 13.93 (4.3%) 4.1% 14.96 93.1% 8.1x 7.2x 7.1x 7.1x 6.0x Median (4.3%) (5.9%) 84.6% 9.8x 7.5x 7.1x 7.1x 6.0x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 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 NA NA (1.0%) NA $199 $254 $296 $265 NA NA 10.0% NA Air Transport Services Group, Inc. 730 607 580 590 591 619 (6.9%) 2.4% 181 163 158 179 183 193 (0.3%) 3.7% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,765 1,807 8.8% 0.6% 203 296 307 344 346 346 19.1% 0.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,891 16,019 9.2% 9.1% 720 751 731 797 898 971 3.4% 10.4% Deutsche Post AG 68,631 73,191 75,621 68,547 63,435 66,262 (0.0%) (1.7%) 3,384 4,129 5,108 4,424 4,916 5,410 9.3% 10.6% DSV A/S 7,639 7,937 8,439 7,896 7,458 7,756 1.1% (0.9%) 498 519 543 486 491 517 (0.8%) 3.2% Echo Global Logistics, Inc. 603 758 884 1,173 1,349 1,583 24.9% 16.1% 23 27 27 36 54 65 16.5% 34.4% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,009 7,494 2.1% 6.8% 655 571 600 644 706 767 (0.6%) 9.1% FedEx Corporation 39,304 42,680 44,287 45,567 47,653 50,600 5.1% 5.4% 4,506 5,367 5,597 6,033 6,883 7,865 10.2% 14.2% Forward Air Corp. 509 584 652 781 989 1,081 15.4% 17.7% 97 104 107 127 159 184 9.4% 20.4% Hub Group Inc. 2,752 3,124 3,374 3,571 3,771 4,040 9.1% 6.4% 112 134 138 135 124 138 6.4% 0.8% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,470 7,266 11.4% 19.6% 658 759 830 926 1,058 1,176 12.1% 12.7% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 22,240 23,283 0.5% 15.0% 1,038 979 1,070 987 1,072 1,143 (1.7%) 7.6% Landstar System Inc. 2,628 2,771 2,665 3,185 3,471 3,723 6.6% 8.1% 204 223 201 250 278 298 6.9% 9.2% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 7,118 7,513 (1.0%) 5.5% 220 92 161 150 226 283 (11.9%) 37.3% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,223 2,403 30.5% 13.3% 54 81 99 121 149 168 30.9% 18.0% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,847 7,242 3.1% 4.4% 1,290 1,396 1,459 1,628 1,766 1,917 8.1% 8.5% TransForce Inc. 2,378 2,822 2,620 2,817 3,697 3,787 5.8% 15.9% 313 392 318 361 452 483 4.9% 15.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 60,171 63,213 3.1% 4.2% 7,830 3,201 8,868 6,864 9,563 10,298 (4.3%) 22.5% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,170 1,247 6.3% 2.3% 84 96 105 115 122 132 11.1% 7.3% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,224 (0.8%) (2.4%) 183 213 146 84 96 127 NM 22.8% World Fuel Services Corp. 34,623 38,945 41,562 43,386 40,121 43,327 7.8% (0.1%) 291 287 301 319 377 393 3.0% 11.1% XPO Logistics, Inc. 177 279 702 2,357 4,238 6,462 NM NM 3 (25) (20) 95 217 379 NM NM Total $276,154 $295,114 $307,000 $308,146 $310,962 $330,951 6.4% 7.0% $22,746 $20,009 $27,149 $25,368 $30,135 $33,251 6.8% 13.3% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,766 $3,006 11.1% 7.3% $82 $70 $104 $155 $198 $229 23.5% 21.6% Celadon Group Inc. 467 475 489 615 886 964 9.6% 25.1% 89 103 106 104 130 147 5.4% 18.7% Con-way Inc. 5,290 5,580 5,473 5,806 6,166 6,537 3.2% 6.1% 386 428 427 493 572 625 8.5% 12.6% Covenant Transportation Group, Inc. 512 527 539 579 759 825 4.2% 19.4% 63 71 65 89 115 128 11.8% 20.3% Heartland Express, Inc. 529 546 582 871 848 912 18.1% 2.3% 132 138 149 208 265 292 16.3% 18.4% Knight Transportation Inc. 697 752 792 926 1,282 1,412 9.9% 23.5% 169 184 192 239 307 343 12.3% 19.7% Marten Transport Ltd. 604 638 659 673 684 735 3.7% 4.5% 97 101 110 115 142 153 5.9% 15.3% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,114 3,452 13.6% 11.3% 326 396 460 587 687 790 21.6% 16.0% 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 1,028 1,092 10.8% 13.1% 70 69 72 70 85 91 0.0% 14.1% Saia, Inc. 1,030 1,099 1,139 1,272 1,319 1,433 7.3% 6.1% 65 107 126 145 176 201 30.3% 17.9% Swift Transportation Company 3,779 3,976 4,118 4,299 4,529 4,939 4.4% 7.2% 549 573 577 583 681 749 2.0% 13.4% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,170 1,247 6.3% 2.3% 84 96 105 115 122 132 11.1% 7.3% USA Truck Inc. 411 512 555 602 605 673 13.6% 5.7% 33 20 35 60 65 73 22.0% 10.3% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,196 2,338 2.2% 4.5% 311 318 296 318 380 411 0.7% 13.7% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,274 5,516 1.4% 4.3% 49 198 199 197 316 361 NM NM Total $25,905 $27,247 $28,030 $30,615 $32,627 $35,080 7.7% 9.5% $2,536 $2,913 $3,073 $3,532 $4,240 $4,724 13.0% 15.7%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 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 $844 $805 12.2% 4.8% $55 $145 $179 $204 $240 $238 NM 7.9% Canadian National Railway Company 8,881 9,952 9,954 10,478 10,609 11,355 5.7% 4.1% 4,112 4,624 4,568 4,900 5,146 5,566 6.0% 6.6% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,845 6,379 3.9% 6.9% 1,378 1,778 2,190 2,434 2,797 3,108 20.9% 13.0% CSX Corp. 11,795 11,763 12,026 12,669 12,519 13,218 2.4% 2.1% 4,446 4,523 4,577 4,764 4,982 5,355 2.3% 6.0% FreightCar America Inc. 487 677 290 599 841 893 7.1% 22.1% 12 41 (8) 17 57 66 12.2% NM Genesee & Wyoming Inc. 829 875 1,569 1,639 2,172 2,463 25.5% 22.6% 252 277 534 574 676 771 31.6% 16.0% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,636 2,798 21.8% 14.9% 97 152 145 237 409 467 34.5% 40.3% Kansas City Southern 2,098 2,239 2,369 2,577 2,652 2,881 7.1% 5.7% 772 872 962 1,106 1,202 1,354 12.7% 10.7% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,213 11,949 1.3% 1.4% 4,073 4,036 4,169 4,522 4,491 4,840 3.5% 3.5% Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,851 6,602 28.1% 3.4% 575 730 963 1,400 1,560 1,468 34.6% 2.4% Union Pacific Corporation 18,508 19,686 20,684 22,560 24,609 26,260 6.8% 7.9% 7,341 8,505 9,223 10,657 11,552 12,634 13.2% 8.9% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,350 3,616 15.7% 9.0% 334 436 485 588 662 731 20.8% 11.5% Total $65,339 $70,451 $73,136 $79,795 $84,140 $89,218 11.5% 8.7% $23,446 $26,119 $27,987 $31,403 $33,773 $36,598 17.5% 11.5% Marine Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $5,322 $5,974 (1.5%) (5.3%) $75 $85 $75 $110 $133 $143 13.4% 14.1% Costamare Inc. 382 386 414 484 489 510 8.2% 2.6% 236 238 258 318 323 345 10.4% 4.2% Diana Shipping Inc. 256 221 164 176 164 189 (11.8%) 3.8% 166 124 53 50 41 51 (32.9%) 0.8% Kirby Corporation 1,850 2,113 2,242 2,566 2,420 2,499 11.5% (1.3%) 445 509 582 647 618 654 13.3% 0.6% Matson, Inc. 1,463 1,560 1,637 1,714 1,801 2,059 5.4% 9.6% 142 175 172 203 226 260 12.8% 13.1% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 8,068 7,894 (2.2%) (4.3%) (90) 96 131 294 608 609 NM NM Nordic American Tankers Limited 95 131 244 351 234 225 NM NM 10 13 (21) 58 152 125 NM 46.4% Rand Logistics, Inc. 98 109 119 129 149 156 9.9% 9.7% 16 28 25 29 35 39 23.3% 14.9% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,287 1,355 8.5% 1.4% 155 164 197 245 239 266 16.4% 4.2% Wilh. Wilhelmsen ASA 309 395 325 285 2,546 2,562 NM NM 147 227 154 140 409 454 NM NM Total $21,661 $22,993 $21,559 $22,304 $22,480 $23,422 3.5% 2.0% $1,301 $1,658 $1,627 $2,094 $2,785 $2,945 8.1% 12.3% Transportation Equipment Accuride Corp. $805 $795 $643 $705 $744 $744 (4.3%) 2.7% $74 $65 $43 $75 $90 $93 0.2% 12.0% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,445 6,820 (4.3%) 1.5% 720 753 706 705 745 817 (0.7%) 7.6% Gentherm Incorporated 370 555 662 811 913 1,032 30.0% 12.8% 46 67 84 135 150 175 42.6% 14.1% Spartan Motors Inc. 426 471 470 507 530 561 6.0% 5.2% 14 16 6 9 16 29 (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,008 2,001 16.2% 3.6% 33 108 142 161 189 198 NM 11.1% Total $10,331 $10,506 $10,179 $10,504 $10,640 $11,157 8.7% 5.2% $888 $1,008 $981 $1,084 $1,191 $1,312 7.4% 11.2%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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