The BGSA Supply Chain Index February 2021 Copyright © 2021 by BG Strategic Advisors No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of BG Strategic Advisors. BG Strategic Advisors Introduction to BG Strategic Advisors (“BGSA”) ▪ BGSA is the leader in supply chain investment banking with a unique set of unmatched capabilities The BGSA Supply Chain Index ▪ Due to our unique approach to strategy-led investment banking, BGSA has become the leading advisor on premium sell-side deals, the first call for buy- The BGSA Supply Chain Index tracks nine side acquisition strategy and execution, and a true thought leader with over 30 segments within our core coverage area of completed transactions in the supply chain sector supply chain and logistics: ▪ BGSA completed over 50 transactions within supply chain, logistics, and ▪ Logistics transportation ▪ Global Parcel / Logistics Recent Performance and Key Takeaways ▪ Truckload ▪ The BGSA Supply Chain Index as a whole is currently trading at an average EV / EBITDA ▪ Less Than Truckload multiple of 15.3x, up from 14.9x in December ▪ Railroads / Rail Services - Supply Chain Technology, Global Parcel and Logistics are currently outperforming the broader index, trading at 39.1x, 17.4x and 16.2x respectively ▪ Supply Chain Technology and Software ▪ The BGSA Supply Chain Index ended the month of January down 2.5%, while the S&P ▪ Technology Distribution 500 was up 0.4% ▪ Healthcare Distribution ▪ Over the last 12 months, the BGSA Supply Chain Index was up 25.1%, while the S&P 500 was up 16.2% ▪ Energy Transportation and Logistics - The highest performing segments were LTL, up 63.4%; Global Parcel, up 53.4%; Supply Chain Technology, up 33.9%; and Logistics, up 30.7% The following pages highlight current public valuation trends throughout each of these ▪ On Jan 4, Thompson Street Capital announced a growth investment in Made4net industry segments, including EV / LTM EBITDA ▪ On Jan 5, Lineage Logistics acquired Cryo-Trans for about $500 million and one year stock performance, among ▪ On Jan 7, Ridgemont Equity Partners announced the acquisition of a majority stake in others SEKO Worldwide ▪ On Jan 8, USPack Logistics acquired Capital Delivery Systems ▪ On Jan 11, Canada Cartage System Limited acquired Stalco ▪ On Jan 20, Cardinal Logistics Management Corporation acquired NRX Logistics ▪ On Jan 25, TFI signed an agreement to acquire UPS Freight for about $800 million ▪ On Jan 27, SGL entered into an agreement to acquire the freight forwarding services of Werner Global Logistics. BGSA served as exclusive financial advisor to Werner 2 The BGSA Supply Chain Index EV / LTM EBITDA EV / LTM EBITDA 45.0x 40.0x 39.1x 35.0x The BGSA Index Average: 15.3x 30.0x 25.0x 20.0x 17.4x 16.2x 15.0x 14.2x 13.0x 11.9x 10.4x 10.0x 8.2x 7.5x 5.0x 0.0x Supply Chain Global Logistics Railroads / Less Than Healthcare Technology Energy Truckload Technology Parcel / Logistics Rail Services Truckload Distribution Distribution Transportation and Software and Logistics Source: Capital IQ, as of January 31, 2021 3 The BGSA Supply Chain Index Stock Performance One Year Stock Performance One Month Stock Performance 40.0% 25.1% 5.0% 0.4% 30.0% 4.0% 20.0% 3.0% 10.0% 2.0% 0.0% 16.2% 1.0% (10.0%) 0.0% (20.0%) (1.0%) (2.5%) (30.0%) (2.0%) (40.0%) (3.0%) Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Jan 4 Jan 8 Jan 12 Jan 16 Jan 20 Jan 24 Jan 28 BGSA Index S&P 500 BGSA Index S&P 500 Source: Capital IQ, as of January 31, 2021 4 The BGSA Supply Chain Index by Segment One Year Stock Performance by Segment Logistics Global Parcel / Logistics Truckload 30.7% 53.4% 12.7% 80% 30% 40% 30% 60% 20% 20% 40% 10% 10% 0% 20% 0% (10%) 0% (10%) (20%) (20%) (20%) (30%) (40%) (40%) (30%) Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Less-Than-Truckload Railroads / Rail Services Supply Chain Technology & Software 33.9% 63.4% 30% 13.8% 80% 50% 20% 40% 60% 30% 10% 20% 40% 0% 10% 0% 20% (10%) (10%) (20%) 0% (20%) (30%) (20%) (30%) (40%) (50%) (40%) (40%) (60%) Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Technology Distribution Healthcare Distribution Energy Transportation & Logistics (0.8%) 18.3% (11.8%) 10% 25% 10% 20% 0% 0% 15% 10% (10%) (10%) 5% (20%) (20%) 0% (5%) (30%) (30%) (10%) (40%) (15%) (40%) (50%) (20%) (50%) (25%) (60%) Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Source: Capital IQ, as of January 31, 2021 5 The BGSA Supply Chain Index by Segment Logistics Public Trading Information ($ in US millions, except per share amounts) EV as a multiple of Stock Market Net Enterprise LTM LTM LTM Margins LTM LTM LTM Net Debt/ Fwd. P/E Company Name Price Cap Debt Value Revenue EBITDA EBIT EBITDA EBIT Revenue EBITDA EBIT EBITDA Ratio Agility $ 2.49 $ 4,758.1 $ 1,278.8 $ 6,210.1 $ 5,115.1 $ 452.0 $ 301.2 8.8% 5.9% 1.2x 13.7x 20.6x 2.8x 21.7x Americold 34.91 8,827.3 1,913.2 10,740.6 1,949.8 373.1 192.1 19.1% 9.9% 5.5x 28.8x 55.9x 5.1x 104.5x CH Robinson 85.56 11,631.6 1,184.3 12,815.8 16,207.1 775.0 673.3 4.8% 4.2% 0.8x 16.5x 19.0x 1.5x 19.8x DSV 156.63 35,203.8 2,644.1 37,924.0 18,036.3 1,541.8 1,366.6 8.5% 7.6% 2.1x 24.6x 27.8x 1.7x 29.0x Echo Global Logistics 26.33 700.6 129.1 829.7 2,288.9 39.6 18.7 1.7% 0.8% 0.4x 20.9x 44.3x 3.3x 16.5x Expeditors International 89.52 15,152.7 (1,037.4) 14,117.7 8,992.2 894.1 839.0 9.9% 9.3% 1.6x 15.8x 16.8x (1.2x) 22.1x Forward Air 71.69 1,972.0 191.4 2,163.4 1,434.1 128.7 88.1 9.0% 6.1% 1.5x 16.8x 24.6x 1.5x 25.5x Hub Group 52.63 1,797.7 89.4 1,887.0 3,443.6 230.7 108.7 6.7% 3.2% 0.5x 8.2x 17.4x 0.4x 19.5x Kuehne + Nagel 228.25 27,342.7 947.3 28,326.1 21,906.4 1,264.6 1,005.1 5.8% 4.6% 1.3x 22.4x 28.2x 0.7x 30.0x Landstar System 139.40 5,351.0 (115.2) 5,235.8 4,136.4 316.6 271.0 7.7% 6.6% 1.3x 16.5x 19.3x (0.4x) 21.7x Ryder System 62.59 3,372.9 7,002.2 10,375.2 8,483.7 2,029.1 323.2 23.9% 3.8% 1.2x 5.1x 32.1x 3.5x 17.5x Universal Truckload 21.20 570.7 548.0 1,118.7 1,381.1 146.7 70.1 10.6% 5.1% 0.8x 7.6x 16.0x 3.7x 8.3x XPO Logistics 110.41 10,093.2 6,928.0 17,198.2 15,723.0 1,276.0 517.0 8.1% 3.3% 1.1x 13.5x 33.3x 5.4x 32.8x Min $ 570.7 $ (1,037.4) $ 829.7 $ 1,381.1 $ 39.6 $ 18.7 1.7% 0.8% 0.4x 5.1x 16.0x (1.2x) 8.3x Mean $ 9,751.9 $ 1,669.5 $ 11,457.1 $ 8,392.1 $ 728.3 $ 444.2 9.6% 5.4% 1.5x 16.2x 27.3x 2.2x 28.4x Median $ 5,351.0 $ 947.3 $ 10,375.2 $ 5,115.1 $ 452.0 $ 301.2 8.5% 5.1% 1.2x 16.5x 24.6x 1.7x 21.7x Max $ 35,203.8 $ 7,002.2 $ 37,924.0 $ 21,906.4 $ 2,029.1 $ 1,366.6 23.9% 9.9% 5.5x 28.8x 55.9x 5.4x 104.5x Source: Capital IQ, as of January 31, 2021 6 The BGSA Supply Chain Index by Segment Global Parcel / Logistics Public Trading Information ($ in US millions, except per share amounts) EV as a multiple of Stock Market Net Enterprise LTM LTM LTM Margins LTM LTM LTM Net Debt/ Fwd. P/E Company Name Price Cap Debt Value Revenue EBITDA EBIT EBITDA EBIT Revenue EBITDA EBIT EBITDA Ratio Deutsche Post $ 49.54 $ 61,381.4 $ 16,614.6 $ 78,852.9 $ 76,201.3 $ 5,906.5 $ 3,923.2 7.8% 5.1% 1.0x 13.4x 20.1x 2.8x 15.6x FedEx 235.34 62,381.7 30,111.0 92,492.7 74,729.0 7,900.0 4,203.0 10.6% 5.6% 1.2x 11.7x 22.0x 3.8x 13.9x United Parcel Service 155.00 133,981.7 21,438.0 153,505.7 84,628.0 5,684.0 2,986.0 6.7% 3.5% 1.8x 27.0x 51.4x 3.8x 18.2x Min $ 61,381.4 $ 16,614.6 $ 78,852.9 $ 74,729.0 $ 5,684.0 $ 2,986.0 6.7% 3.5% 1.0x 11.7x 20.1x 2.8x 13.9x Mean $ 85,914.9 $ 22,721.2 $ 108,283.8 $ 78,519.4 $ 6,496.8 $ 3,704.1 8.3% 4.8% 1.4x 17.4x 31.2x 3.5x 15.9x Median $ 62,381.7 $ 21,438.0 $ 92,492.7 $ 76,201.3 $ 5,906.5 $ 3,923.2 7.8% 5.1% 1.2x 13.4x 22.0x 3.8x 15.6x Max $ 133,981.7 $ 30,111.0 $ 153,505.7 $ 84,628.0 $ 7,900.0 $ 4,203.0 10.6% 5.6% 1.8x 27.0x 51.4x 3.8x 18.2x Source: Capital IQ, as of January 31, 2021 7 The BGSA Supply Chain Index by Segment Truckload Public Trading Information ($ in US millions, except per share amounts) EV as a multiple of Stock Market Net Enterprise LTM LTM LTM Margins LTM LTM LTM Net Debt/ Fwd.