Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ APRIL 2017

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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized 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 │ APRIL 2017

WHAT WE’RE READING

CONTENTS LOGISTICS | BIG RETURNS IN HASSLE-FREE RETURNS . M&A TRANSACTIONS Processing of returns and excess inventory, known in the retail trade as reverse . PUBLIC MARKETS OVERVIEW logistics, is attracting interest from venture capital and strategic investors looking . STOCK PRICE PERFORMANCE for new software and services. With retail sales in the US totaling almost $4.7 trillion . OUR GROUP in 2015 and a median retail return rate of 8%, more than $375 billion of merchandise is returned on an annual basis. While that figure represents the median of returns on all retail sales, not just online, it is estimated that upwards of 30% of goods purchased online are returned annually, according to Jeff Burkett, CONTACTS director in the Transportation & Logistics Group at investment bank Harris Williams. Mergermarket UNITED STATES

TRUCKING | US TRUCKLOAD SPOT RATE RAMP-UP Frank Mountcastle Managing Director After falling earlier in the year and experiencing a modest uptick in March, US spot [email protected] truckload rates have started to increase at a faster clip — a hint of things to come +1 (804) 915-0124 for the contract market, according to industry analysts. It’s not atypical for US spot Jason Bass truckload rates to jump up this time every year, as shippers rush to move goods out Managing Director before closing their books for the first quarter. But modest, sustained, and earlier- [email protected] than-usual rate increases this spring in the spot market should be a canary in the +1 (804) 915-0132 coal mine for shippers with longer term contracts, according to DAT Solutions Joe Conner Industry Pricing Analyst Mark Montague. Managing Director Journal of Commerce [email protected] +1 (804) 915-0151 MARINE | CARGO SHIPMENTS THROUGH U.S. PORTS ROSE IN MARCH Jeff Burkett Director [email protected] Cargo swelled through U.S. ports in March, as trade with China bounced back +1 (804) 932-1334 and companies rushed shipments before new shipping-industry alliances kicked in. The Ports of Los Angeles and Long Beach, which make up the nation’s largest Jershon Jones seaport complex, said they imported a combined 622,083 loaded 20-foot Director equivalent units in March. That amounted to a 26% increase over the same month [email protected] +1 (804) 932-1356 last year and a 13% rise from February. The rush of inbound ocean trade marks a return to form after a surprise slump in Chinese exports in February, as factories Jeff Kidd closed for the Lunar New Year holiday. Chinese exports rose 16.4% in March, Vice President topping economists’ expectations amid a wider trade boom in Asia. [email protected] +1 (804) 915-0178 Wall Street Journal James O’Malley Vice President RAIL | U.S. RAIL AND INTERMODAL SEE ANNUAL GAINS IN MARCH [email protected] +1 (804) 915-0165 United States rail carload and intermodal volumes in March each saw annual gains, according to data issued by the Association of American Railroads (AAR). Carloads were up 7.3% compared to March 2016. 13 of the 20 carload commodity categories tracked by the AAR saw annual gains, including coal up 19%, crushed stone, gravel and sand up 12.5%, and grain up 10.6%. Intermodal containers and EUROPE trailers were up 5.5%, in March. On a year-to-date-basis through March, U.S. rail carloads were up 5.7%, and intermodal containers and trailers were up 1.4%. Jeffery Perkins Logistics Management Managing Director [email protected] +49 (0) 69 3650638 00 AIR | AIRPORT CARGO DEMAND IMPROVES IN FEBRUARY

Airports enjoyed another bumper month in February for cargo, fueled by international demand. The latest cargo figures from industry body Airports Council International (ACI) show that volumes “surged” by 7.8% year on year in February. International demand improved ahead of domestic, with the former growing by 9.6% on the same month last year and the latter by 3.1%. The performance in February continues a strong start to the year for airports; in January ACI figures show that cargo demand increased by 5.7%. Air Cargo News

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

M&A TRANSACTIONS(1,2,3)

RECENT M&A TRANSACTIONS

Date Sector Target Business Description Acquirer 4/11/2017 Trucking Atlantic Trucking Provides intermodal, drayage, and related services. Forward Air Corporation Company

4/10/2017 Trucking Swift Transportation Provides trucking and transportation services. Knight Transportation

4/6/2017 Logistics Postal Express Provides regional overnight delivery services. Royal Mail (General Logistics Systems)

4/4/2017* Trucking Dickinson Fleet Services Provides services to the vehicle fleet maintenance industry. Ridgemont Equity Partners

3/27/2017 Logistics Premium Transportation Provides expedited domestic ground and freight brokerage services. Magnate Worldwide, LLC Logistics

3/23/2017 Logistics DAVACO, Inc. Provides logistics for high volume remodel and rollout programs to Crane Worldwide retail, restaurant and hospitality clients. Logistics

3/16/2017 Logistics Supply Chain Coach, Provides supply chain and logistics solutions. Rockfarm Supply Chain Inc. Solutions

3/15/2017 Rail Aero Transportation Manufacturers hatch covers and outlet gates for freight cars. Wabtec Corporation Products

3/14/2017 Air Air Methods Provides air medical transportation and air tourism services. American Securities Corporation

3/6/2017 Logistics Simplified Logistics Provides third party logistics services with a focus on less-than- CI Capital Partners truckload transportation management services.

3/2/2017 Logistics AsepTrans Provides tank transportation and cleaning services. Odyssey Logistics & Technology

3/2/2017 Rail Appalachian Railcar Provides railcar repair, railcar storage, plant loading and unloading, GenNx360 Capital Services and short line switching and operations. Partners

2/23/2017 Logistics Quick International Provides courier and priority freight services. The Jordan Company Courier

2/21/2017 Logistics Zentral Archiv Service Provides archiving services and logistics services in Germany. Rhenus Archive Services

2/15/2017 Logistics Transfreight Automotive Provides cross-docking, transportation and manufacturing plant Yusen Logistics Logistics Europe logistical support and operations services.

2/13/2017 Marine Marine Trading Services Provides regional port logistics services in New Jersey. Ship Supply International Inc

2/9/2017 Logistics Evans Network of Provides intermodal, flatbed, brokerage, and van trucking services. Calera Capital Companies

2/7/2017 Rail Atlantic Western Operates 219 miles of railway track leased from the Georgia Genesee & Wyoming Inc. Transportation Department of Transportation.

2/7/2017 Marine Settoon Towing - Liquid Purchased assets include 35 towboats and 63 liquid tank barges with Savage Companies Bulk Marine Assets a total capacity of nearly 2 million barrels.

*Denotes minority investment

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

PUBLIC MARKETS OVERVIEW(1)

TEV / LTM EBITDA TEV / 2017E EBITDA

Rail & Rail Services 10.9x Rail & Rail Services 10.0x

Logistics Providers 10.2x Logistics Providers 9.4x

Marine 8.8x Marine 9.1x

Transportation Transportation 7.3x 7.5x Equipment Equipment

Trucking 6.6x Trucking 6.3x

AVERAGE REVENUE GROWTH (2013 – 2016) AVERAGE REVENUE GROWTH (2016 – 2018P)

Transportation 4.7% Marine 7.9% Equipment

Logistics Providers 4.0% Logistics Providers 6.6%

Trucking 2.6% Trucking 4.6%

Transportation Rail & Rail Services 2.1% 3.6% Equipment

Marine (6.0%) Rail & Rail Services (1.9%)

AVERAGE EBITDA GROWTH (2013 – 2016) AVERAGE EBITDA GROWTH (2016 – 2018P)

Transportation 19.4% Logistics Providers 12.3% Equipment

Rail & Rail Services 6.0% Marine 11.5%

Transportation Trucking 5.1% 11.2% Equipment

Logistics Providers 5.1% Trucking 8.4%

Marine (4.5%) Rail & Rail Services(2.9%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

STOCK PRICE PERFORMANCE(1)

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

Marine 8.5% Transportation Equipment 47.3%

Rail & Rail Services 1.4% Trucking 14.4%

S&P 500 (1.2%) S&P 500 13.7%

Logistics Providers (2.3%) Marine 13.7%

Transportation Equipment (2.9%) Rail & Rail Services 13.3%

Trucking (8.6%) Logistics Providers 12.8%

TRAILING TWELVE MONTHS

(Indexed to April 12th, 2016)

70%

60%

50%

40%

30%

20%

10%

(10%)

(20%)

(30%) Apr-16 Jul-16 Oct-16 Jan-17 Apr-17

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

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

has merged with a portfolio company of a portfolio company of a portfolio company of a portfolio company of

has received a growth an operating company of investment from

has been acquired by has merged with has been acquired by has been acquired by in a recapitalization by

and

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

has acquired has been acquired by

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

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 │ APRIL 2017

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 │ APRIL 2017

PUBLIC COMPARABLES(1)

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-16 Oct-16 Current 2017E 2018P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $2,704 $2.13 10.4% 38.1% $2.52 84.5% 6.0x 6.6x 7.9x NA NA Air Transport Services Group, Inc. 1,480 16.47 (3.1%) 14.5% 17.81 92.5% 6.3x 6.3x 7.4x 5.7x 4.8x Atlas Air Worldwide Holdings, Inc. 3,097 55.25 1.7% 41.5% 59.60 92.7% 10.3x 14.9x 8.9x 6.5x 5.8x C.H. Robinson Worldwide, Inc. 11,687 74.79 (5.7%) 3.2% 81.16 92.2% 11.9x 12.0x 12.8x 12.6x 11.9x Deutsche Post AG 44,549 33.00 (0.5%) 18.7% 34.78 94.9% 10.0x 8.5x 8.9x 8.0x 7.5x DSV A/S 10,910 52.00 4.8% 24.2% 53.19 97.7% 17.2x 17.3x 17.3x 15.0x 13.4x Echo Global Logistics, Inc 745 19.05 (7.5%) (23.7%) 28.90 65.9% 15.5x 14.7x 15.6x 10.3x 8.4x Expeditors International of Washington, Inc. 9,205 55.70 (1.6%) 16.3% 57.35 97.1% 10.3x 11.5x 12.8x 12.3x 11.6x FedEx Corporation 62,075 186.31 (3.0%) 12.8% 201.57 92.4% 9.4x 8.9x 9.3x 6.7x 6.2x Forward Air Corporation 1,451 46.99 (1.3%) 3.8% 51.51 91.2% 10.3x 9.6x 10.3x 9.6x 8.6x Hub Group, Inc. Class A 1,414 40.28 (19.5%) 5.2% 52.50 76.7% 7.7x 8.0x 8.4x 9.1x 8.3x J.B. Hunt Transport Services, Inc. 11,201 90.16 (6.7%) 7.0% 102.38 88.1% 9.8x 9.5x 10.3x 9.9x 8.9x Kuhne & Nagel International AG 16,698 145.89 4.8% 1.8% 147.27 99.1% 15.1x 14.8x 15.4x 14.4x 13.6x Landstar System, Inc. 3,481 84.10 (2.3%) 31.2% 90.80 92.6% 9.9x 10.8x 13.5x 12.6x 11.6x Panalpina Welttransport (Holding) AG 2,546 122.90 1.8% 10.6% 146.33 84.0% 12.1x 15.7x 15.1x 13.8x 11.5x Roadrunner Transportation Systems, Inc. 644 6.37 (7.9%) (45.8%) 12.79 49.8% 7.3x 7.3x 6.8x 6.8x 5.8x Ryder System, Inc. 9,305 74.51 (2.2%) 19.0% 85.42 87.2% 5.3x 5.2x 5.4x 5.2x 4.9x TFI International Inc. 3,343 22.66 (4.5%) 28.9% 27.30 83.0% 7.6x 8.5x 10.2x 7.5x 7.0x United Parcel Service, Inc. Class B 103,984 104.23 (2.3%) (1.0%) 120.44 86.5% 10.7x 10.9x 14.3x 9.8x 9.2x Universal Logistics Holdings, Inc. 595 12.30 (11.5%) (18.6%) 17.70 69.5% 6.0x 6.2x 7.1x 7.4x 6.8x XPO Logistics, Inc. 10,498 45.95 (8.2%) 52.2% 54.70 84.0% 13.3x 8.9x 9.1x 7.8x 6.7x Median (2.3%) 12.8% 88.1% 10.0x 9.5x 10.2x 9.4x 8.3x Trucking ArcBest Corporation $721 $24.75 (9.7%) 22.5% $33.95 72.9% 3.3x 4.4x 5.2x 4.2x 3.7x Celadon Group, Inc. 510 4.90 (39.9%) (47.0%) 12.03 40.7% 6.6x 7.0x 6.1x 6.7x 5.3x Covenant Transportation Group, Inc. Class A 522 17.16 (9.0%) (21.6%) 25.22 68.0% 4.0x 4.2x 4.3x 4.6x 4.2x Heartland Express, Inc. 1,461 19.18 (5.3%) 11.7% 22.69 84.5% 7.0x 7.8x 8.0x 7.7x 7.2x Knight Transportation, Inc. 2,559 31.35 (4.6%) 26.4% 38.80 80.8% 6.9x 7.9x 9.9x 9.8x 8.7x Marten Transport, Ltd. 757 22.95 (3.8%) 33.0% 27.05 84.8% 4.3x 5.2x 5.8x 5.4x 4.9x Old Dominion Freight Line, Inc. 6,918 82.06 (8.3%) 20.7% 94.97 86.4% 8.5x 8.8x 10.0x 9.4x 8.5x P.A.M. Transportation Services, Inc. 252 14.87 (15.7%) (42.0%) 28.43 52.3% 4.9x 5.0x 4.6x 4.5x 3.7x Saia, Inc. 1,159 42.30 (7.5%) 56.8% 50.80 83.3% 5.2x 5.6x 7.4x 6.7x 5.9x Swift Transportation Company Class A 3,996 22.29 6.6% 30.8% 27.18 82.0% 5.8x 7.0x 7.9x 7.5x 6.6x Universal Logistics Holdings, Inc. 595 12.30 (11.5%) (18.6%) 17.70 69.5% 6.0x 6.2x 7.1x 7.4x 6.8x USA Truck, Inc. 211 7.33 (19.5%) (53.3%) 21.46 34.2% 4.9x 6.2x 7.2x 5.9x 4.8x Werner Enterprises, Inc. 1,987 25.20 (7.9%) (4.9%) 29.05 86.7% 5.0x 5.3x 5.9x 5.6x 5.1x YRC Worldwide Inc. 1,074 10.30 (11.3%) 17.2% 16.97 60.7% 4.3x 4.7x 4.0x 3.5x 3.1x Median (8.6%) 14.4% 76.9% 5.1x 5.9x 6.6x 6.3x 5.2x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

PUBLIC COMPARABLES(1)

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-16 Oct-16 Current 2017E 2018P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,192 $42.43 8.8% 0.7% $51.10 83.0% 4.7x 5.5x 6.5x 7.4x 7.9x Canadian National Railway Company 64,838 73.39 1.5% 17.9% 74.99 97.9% 11.2x 12.3x 13.1x 12.5x 11.8x Canadian Pacific Railway Limited 29,071 150.95 1.7% 5.4% 156.98 96.2% 11.7x 12.8x 12.0x 11.4x 10.7x CSX Corporation 54,275 46.40 (2.9%) 85.7% 50.31 92.2% 7.2x 8.7x 11.3x 11.1x 10.2x FreightCar America, Inc. 58 12.81 1.7% (16.9%) 18.03 71.0% 1.5x 4.1x 4.3x NM 8.2x Genesee & Wyoming, Inc. Class A 6,438 65.55 (6.6%) 8.7% 80.73 81.2% 9.9x 10.9x 11.6x 9.0x 8.4x Greenbrier Companies, Inc. 1,599 45.10 8.2% 44.3% 49.50 91.1% 2.4x 3.0x 4.1x 5.1x 5.9x Kansas City Southern 12,058 87.51 0.2% 0.1% 100.69 86.9% 11.0x 11.4x 10.8x 10.0x 9.2x Norfolk Southern Corporation 42,626 111.79 (6.6%) 42.0% 125.00 89.4% 8.1x 9.2x 10.3x 9.7x 9.1x Trinity Industries, Inc. 6,558 26.29 1.3% 36.8% 30.13 87.3% 3.9x 5.4x 6.5x 8.4x 8.7x Union Pacific Corporation 101,863 105.57 (0.7%) 32.6% 111.38 94.8% 8.2x 10.1x 10.9x 10.2x 9.5x Westinghouse Air Brake Technologies Corporation 8,782 79.67 2.7% 0.3% 89.18 89.3% 11.1x 11.7x 15.3x 12.6x 11.7x Median 1.4% 13.3% 89.4% 8.1x 9.7x 10.9x 10.0x 9.2x Marine Aegean Marine Petroleum Network Inc. $1,696 $12.10 10.0% 66.4% $13.10 92.4% 10.6x 6.8x 16.7x 12.1x 11.5x Costamare Inc. 1,767 6.78 10.2% (34.4%) 11.00 61.6% 6.7x 5.9x 5.6x 6.7x 7.4x Diana Shipping Inc. 977 5.93 52.1% 107.3% 6.20 95.6% NM NM NM NM 13.9x Kirby Corporation 4,378 68.35 0.1% 13.7% 73.40 93.1% 7.2x 8.2x 9.7x 11.0x 9.8x Matson, Inc. 2,086 31.28 (3.4%) (12.8%) 43.00 72.7% 6.9x 9.5x 8.8x 7.2x 6.8x Nordic American Tankers Limited 1,228 8.51 8.5% (40.4%) 16.18 52.6% 7.3x 6.9x 7.4x 10.9x 7.7x Rand Logistics, Inc. 221 0.78 21.9% (10.8%) 2.95 26.4% 6.9x 8.2x 7.5x 6.3x NA SEACOR Holdings Inc. 1,744 64.81 (2.4%) 17.9% 76.32 84.9% 10.2x 14.2x 18.4x 12.1x 10.0x Wallenius Wilhelmsen Logistics ASA 2,782 4.94 6.9% 88.7% 5.55 89.1% NM 15.1x NM 6.2x 6.5x Median 8.5% 13.7% 84.9% 7.2x 8.2x 8.8x 9.1x 8.7x Transportation Equipment Dana Incorporated 3,613 17.72 (5.9%) 35.3% 20.62 85.9% 4.7x 5.0x 5.9x 5.1x 4.7x Gentherm Incorporated 1,274 34.95 (2.8%) (14.5%) 44.62 78.3% 9.2x 7.5x 8.7x 8.2x 7.5x Spartan Motors, Inc. 225 7.50 7.1% 59.2% 10.50 71.4% NM NM 12.5x 8.6x 6.6x Wabash National Corporation 1,396 20.10 (2.9%) 60.3% 22.21 90.5% 4.0x 3.9x 5.8x 6.8x 7.3x Median (2.9%) 47.3% 82.1% 4.7x 5.0x 7.3x 7.5x 6.9x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $4,846 $4,767 $4,330 NA NA NA NA NA $289 $276 $292 NA NA NA NA NA Air Transport Services Group, Inc. 580 590 619 769 769 1,006 9.9% 14.4% 158 179 198 200 200 301 8.4% 22.5% Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,840 1,840 2,200 3.5% 9.4% 292 327 271 349 349 495 6.1% 19.1% C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,144 13,144 14,881 1.0% 6.4% 740 805 925 912 912 986 7.2% 4.0% Deutsche Post AG 73,132 75,117 65,681 63,423 63,423 65,915 (4.6%) 1.9% 3,887 4,812 3,587 5,013 5,013 5,890 8.8% 8.4% DSV A/S 8,137 8,645 7,563 10,066 10,066 10,777 7.3% 3.5% 543 560 532 631 631 823 5.1% 14.2% Echo Global Logistics, Inc 884 1,173 1,512 1,716 1,716 2,129 24.7% 11.4% 34 44 54 48 48 87 12.0% 35.3% Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,098 6,098 6,816 0.1% 5.7% 600 644 767 717 717 801 6.1% 5.7% FedEx Corporation 45,567 47,453 50,365 60,137 63,236 66,052 9.7% 4.8% 6,033 4,951 6,165 8,430 9,290 10,246 11.8% 10.2% Forward Air Corporation 652 781 959 983 983 1,117 14.6% 6.6% 109 128 128 141 141 168 8.9% 9.2% Hub Group, Inc. Class A 3,374 3,571 3,526 3,573 3,573 4,064 1.9% 6.7% 137 136 154 168 168 169 6.9% 0.3% J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,555 6,555 7,817 5.5% 9.2% 825 920 1,054 1,088 1,088 1,256 9.7% 7.4% Kuhne & Nagel International AG 18,529 19,118 17,376 16,774 16,774 21,520 (3.3%) 13.3% 1,028 1,073 1,069 1,084 1,084 1,230 1.8% 6.5% Landstar System, Inc. 2,665 3,185 3,321 3,168 3,168 3,535 5.9% 5.6% 203 251 269 258 258 299 8.3% 7.7% Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,274 5,274 5,530 (10.2%) 2.4% 172 218 184 169 169 216 (0.7%) 13.3% Roadrunner Transportation Systems, Inc. 1,361 1,873 1,995 NA 2,039 2,105 NA NA 103 125 130 NA 95 110 NA NA Ryder System, Inc. 6,419 6,639 6,572 6,787 6,787 7,362 1.9% 4.2% 1,361 1,505 1,649 1,738 1,738 1,923 8.5% 5.2% TFI International Inc. 3,018 3,363 3,150 3,038 3,038 3,569 0.2% 8.4% 319 372 332 328 328 475 0.9% 20.3% United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,502 60,502 67,613 2.9% 5.7% 8,765 7,991 9,429 7,295 7,295 11,280 (5.9%) 24.3% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,122 1.3% 2.2% 123 114 108 83 83 88 (12.3%) 2.5% XPO Logistics, Inc. 702 2,357 7,623 14,619 14,619 15,829 NM 4.1% (17) 92 474 1,158 1,158 1,575 NM 16.6% Total $259,756 $273,405 $267,955 $279,538 $284,676 $310,959 4.0% 6.6% $25,705 $25,523 $27,772 $29,811 $30,766 $38,418 5.1% 12.3% Trucking ArcBest Corporation $2,300 $2,613 $2,667 $2,700 $2,700 $3,015 5.5% 5.7% $107 $154 $167 $139 $139 $188 9.3% 16.3% Celadon Group, Inc. 614 742 901 1,065 1,065 1,103 20.2% 1.8% 99 87 117 109 109 96 3.2% (6.4%) Covenant Transportation Group, Inc. Class A 685 719 724 671 671 742 (0.7%) 5.2% 63 89 143 122 122 123 24.2% 0.7% Heartland Express, Inc. 582 871 736 613 613 635 1.7% 1.8% 149 208 193 182 182 202 7.0% 5.3% Knight Transportation, Inc. 969 1,102 1,183 1,118 1,118 1,263 4.9% 6.3% 193 256 312 259 259 291 10.4% 5.9% Marten Transport, Ltd. 659 673 665 671 671 765 0.6% 6.8% 110 115 127 130 130 155 5.6% 9.1% Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,992 2,992 3,473 8.6% 7.7% 466 606 676 690 690 809 14.0% 8.3% P.A.M. Transportation Services, Inc. 403 411 417 433 433 451 2.4% 2.1% 50 55 63 54 54 68 3.0% 12.0% Saia, Inc. 1,139 1,272 1,221 1,218 1,218 1,374 2.3% 6.2% 125 145 155 156 156 195 7.6% 11.8% Swift Transportation Company Class A 4,118 4,299 4,229 4,032 4,032 4,374 (0.7%) 4.2% 577 583 611 508 508 591 (4.1%) 7.8% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,122 1.3% 2.2% 123 114 108 83 83 88 (12.3%) 2.5% USA Truck, Inc. 555 602 508 429 429 480 (8.2%) 5.8% 41 60 56 29 29 45 (10.2%) 24.1% Werner Enterprises, Inc. 2,029 2,139 2,094 2,009 2,009 2,196 (0.3%) 4.5% 295 316 393 336 336 386 4.5% 7.2% YRC Worldwide Inc. 4,865 5,069 4,832 4,698 4,698 5,071 (1.2%) 3.9% 205 197 259 270 270 342 9.6% 12.6% Total $22,289 $24,492 $24,279 $23,721 $23,721 $26,063 2.6% 4.6% $2,603 $2,984 $3,380 $3,068 $3,068 $3,579 5.1% 8.4%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $751 $733 $889 $639 $639 $393 (5.2%) (21.6%) $179 $204 $272 $182 $182 $151 0.6% (9.0%) Canadian National Railway Company 10,263 10,986 9,857 9,085 9,085 10,151 (4.0%) 5.7% 4,710 5,137 5,021 4,934 4,934 5,498 1.6% 5.6% Canadian Pacific Railway Limited 5,952 5,994 5,246 4,704 4,704 5,140 (7.5%) 4.5% 2,340 2,640 2,431 2,414 2,414 2,716 1.0% 6.1% CSX Corporation 12,026 12,669 11,811 11,069 11,069 11,931 (2.7%) 3.8% 4,534 4,764 4,792 4,805 4,805 5,311 2.0% 5.1% FreightCar America, Inc. 290 599 773 524 524 294 21.7% (25.1%) (4) 17 51 14 14 2 NM (58.8%) Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 2,002 2,002 2,285 8.5% 6.8% 533 579 586 554 554 752 1.3% 16.5% Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,681 1,893 15.2% (16.0%) 143 237 430 458 458 280 47.5% (21.8%) Kansas City Southern 2,369 2,577 2,419 2,397 2,397 2,614 0.4% 4.4% 962 1,106 1,098 1,121 1,121 1,302 5.2% 7.8% Norfolk Southern Corporation 11,245 11,624 10,511 9,888 9,888 10,857 (4.2%) 4.8% 4,173 4,526 3,938 4,131 4,131 4,675 (0.3%) 6.4% Trinity Industries, Inc. 4,365 6,170 6,393 4,588 4,588 3,321 1.7% (14.9%) 963 1,402 1,528 1,008 1,008 757 1.5% (13.3%) Union Pacific Corporation 21,963 23,988 21,813 19,941 19,941 21,803 (3.2%) 4.6% 9,223 10,657 10,064 9,310 9,310 10,707 0.3% 7.2% Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,931 2,931 4,210 4.5% 19.8% 489 588 701 572 572 738 5.4% 13.6% Total $75,115 $82,227 $77,625 $70,448 $70,448 $74,892 2.1% (1.9%) $28,243 $31,857 $30,912 $29,502 $29,502 $32,889 6.0% (2.9%) Marine Aegean Marine Petroleum Network Inc. $6,335 $6,662 $4,232 $4,076 $4,076 $5,544 (13.7%) 16.6% $84 $54 $81 $101 $101 $145 6.4% 19.7% Costamare Inc. 414 484 490 468 468 375 4.2% (10.4%) 267 330 325 317 317 247 5.9% (11.6%) Diana Shipping Inc. 164 176 158 114 114 195 (11.4%) 30.8% 55 52 28 (12) (12) 62 NM NA Kirby Corporation 2,242 2,566 2,148 1,771 1,771 1,933 (7.6%) 4.5% 582 646 573 451 451 444 (8.1%) (0.8%) Matson, Inc. 1,637 1,714 1,885 1,942 1,942 2,020 5.8% 2.0% 182 203 298 238 238 305 9.4% 13.2% Nordic American Tankers Limited 244 351 446 231 231 265 (1.7%) 6.9% (7) 74 211 139 139 156 NM 6.0% Rand Logistics, Inc. 156 153 148 115 118 NA (9.6%) NA 33 34 32 32 35 NA (1.1%) NA SEACOR Holdings Inc. 1,247 1,319 1,055 831 831 917 (12.7%) 5.1% 197 245 150 95 95 192 (21.7%) 42.5% Wallenius Wilhelmsen Logistics ASA 325 285 313 257 257 NA (7.5%) NA 170 134 186 80 80 426 (22.3%) NM Total $12,764 $13,710 $10,874 $9,806 $9,809 $11,250 (6.0%) 7.9% $1,562 $1,772 $1,884 $1,441 $1,444 $1,978 (4.5%) 11.5% Transportation Equipment Dana Incorporated 6,769 6,617 6,060 5,826 5,826 6,561 (4.9%) 6.1% 706 705 618 612 612 753 (4.7%) 10.9% Gentherm Incorporated 662 812 856 918 918 1,064 11.5% 7.7% 83 135 155 146 146 171 20.5% 8.3% Spartan Motors, Inc. 470 507 550 591 591 677 8.0% 7.0% 6 10 0 18 18 34 42.4% 37.6% Wabash National Corporation 1,636 1,863 2,027 1,845 1,845 1,618 4.1% (6.4%) 142 161 218 241 241 186 19.2% (12.0%) Total $9,536 $9,799 $9,494 $9,180 $9,180 $9,920 4.7% 3.6% $938 $1,012 $991 $1,017 $1,017 $1,145 19.4% 11.2%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ APRIL 2017

TRANSPORTATION & LOGISTICS

SOURCES

1. FactSet.

2. MergerMarket.

3. Pitchbook.

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