LOGISTICS & TRANSPORTATION INDUSTRY UPDATE – Q3 2019 Capital Markets Capital Markets LOGISTICS & TRANSPORTATION INDUSTRY UPDATE – Q3 2019 Industry News ‘Booming’ Logistics M&A Shows No Sign of Slowing Blackstone and Prologis Battle for Fast-Shipping Leadership Shippers are set to be the winners, benefitting from more competitive rates, With companies offering millions of consumers next-day delivery, supply wider geographic coverage and more extensive services. chains are expanding to include thousands of new industrial centers closer - Journal of Commerce Read More to population centers. - Wall Street Journal Read More Drawn by the Salary, Women Flock to Trucking With Capacity to Spare, Railroads Have an Eye on Truck Cargo The growth in women in the industry comes as demand for transportation Shipments are down for autos, coal, grain, chemicals and consumer workers is high, boosted by the expansion of e-commerce. goods. So, now railroads are looking for other sources of freight. - Wall Street Journal Read More - Transport Topics Read More Global Air Cargo Rates Fall to Four-Year Low Oil Markets Could See Volatility, Arbitrage as Shipping Fuel Shifts In the eight months from January through August, global air cargo demand Many analysts report the shipping industry is not yet ready for the U.N. fell five percent year over year. mandate aimed at cutting 3% of global carbon dioxide emissions. - Journal of Commerce Read More - Forbes Read More Public Company Valuations by Segment 14x Total Enterprise Value (“TEV”)/EBITDA 12.9x 13.0x 12.5x 12x 11.6x 11.9x 11.7x 10.3x 10x 9.6x 8.9x 8x 8.0x 7.9x 7.2x 7.5x 6x 6.0x 4x 2x Q3 2018 Q3 2019 0x Third Party Truckload (“TL”) Less-than- Marine Railroad Transportation Waste Logistics (“3PL”) Truckload (“LTL”) Equipment BB&T Capital Markets Transaction Profile About Team Drive-Away a portfolio company of Based in Olathe, Kansas, TDA is a national non-asset-based commercial vehicle logistics provider specializing in matching professional drivers with moves of used and new heavy-haul Class 8 trucks for sellers and buyers as well as moves to reposition and optimize fleets. TDA handles 20,000 vehicles annually via a national network of more than 500 independent contractors. has been acquired by About CID Capital Founded in 1981 and headquartered in Indianapolis, CID Capital is a private equity group that makes majority investments in high-quality, lower-middle-market companies that have shown a consistent track a portfolio company of record of success. For companies that have reached a performance level that finds them transitioning beyond being an entrepreneurial business, CID Capital can deliver the planning, experience, resources and capital to overcome critical constraints – and build long-term value. About United Road Services BB&T Capital Markets Served as Founded in 1998, United Road is the premier finished vehicle logistics company in North America. Each year, Financial Advisor to Team Drive-Away coast to coast and across borders, United Road manages the transport of 4 million-plus vehicles. Headquartered and its Shareholders in Romulus, Michigan, the company operates an integrated national network, has over 1,700 employees, 2,500 company-owned and dedicated independent vehicle carriers, and 4,500 third-party carrier partners. About The Carlyle Group The Carlyle Group is a global investment firm with $223 billion of assets under management across 362 investment vehicles. Founded in 1987 in Washington, DC, Carlyle has grown into one of the world’s largest and most successful investment firms, with more than 1,775 professionals operating in 33 offices in North America, South America, Europe, the Middle East, Africa, Asia and Australia. Note: Total Enterprise Value defined as total market capitalization plus net debt 2 Selected Industry Data LOGISTICS & TRANSPORTATION INDUSTRY UPDATE – Q3 2019 Truck Tonnage Index Rail Freight Carloads 120 1,800 (Seasonally-adjusted, Jan ’00 = 100) (Seasonally-adjusted, in thousands of carloads) 110 1,400 100 90 1,000 80 July 2019 = 119 July 2019 = 1,095 70 600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 n Measures total tonnage of domestic freight volume from a survey conducted n Measures rail traffic for all North American railroads. by the American Trucking Association. n Carloads have decreased by 4.2% since July 2018. n The index has increased by 5.1% since July 2018. Tonnage for U.S. Internal Waterways Air Revenue Ton Miles of Freight and Mail 60,000 4,200 (Seasonally-adjusted, in thousands of short tons) (Seasonally-adjusted, in thousands of ton miles) 3,600 50,000 3,000 40,000 2,400 July 2019 = 49,100 June 2019 = 3,636 30,000 1,800 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 n Measures freight moving via waterborne navigational channels within the U.S. n Measures freight and mail moving through airborne channels within the U.S. n Tonnage has decreased by 2.6% since July 2018. n Ton miles have decreased by 2.3% since June 2018. Volume at Select Major U.S. Ports Rail Freight Intermodal Traffic 2,800 1,400 (In thousands of TEUs) (Seasonally-adjusted, in thousands of carloads) 2,400 1,200 2,000 1,000 1,600 800 Aug. 2019 = 2,690 July 2019 = 1,149 1,200 600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 n Measures total combined inbound and outbound TEUs at the ports n Measures total intermodal traffic volume in the U.S. of New York and New Jersey, Long Beach, Los Angeles, Virginia, and n Volume has decreased by 5.6% since July 2018. Savannah. n Volume has increased by 3.5% since August 2018. Sources: U.S. Bureau of Transportation Statistics, Port of Los Angeles, Port of Long Beach, The Port Authority of New York and New Jersey, Virginia Port Authority, Georgia Ports Authority; charts reflect most recent data available 3 Public Company Financial Performance LOGISTICS & TRANSPORTATION INDUSTRY UPDATE – Q3 2019 $ in millions (except for stock price) Market Data Financial Performance Valuation Multiples Total LTM TEV/LTM Stock Price % of Equity Enterprise Total EBITDA Total Ticker 9/30/19 52-Week High Value Value Sales EBITDA Margin Sales EBITDA EBIT THIRD-PARTY LOGISTICS ("3PL") Air Transport Services Group, Inc. ATSG $21.02 81.4% $1,238 $2,682 $1,168 $382 32.7% 2.3x 7.0x 18.1x Atlas Air Worldwide Holdings, Inc. AAWW $25.23 39.1% $652 $3,520 $2,757 $506 18.4% 1.3x 7.0x 16.8x BEST Inc. BEST $5.28 77.0% $2,072 $2,653 $31,888 $4 0.0% 0.1x NA NA CEVA, Inc. CEVA $29.86 90.0% $656 $514 $78 $4 4.5% 6.6x NA NA C.H. Robinson Worldwide, Inc. CHRW $84.78 85.7% $11,477 $12,647 $15,654 $993 6.3% 0.8x 12.7x 13.9x Deutsche Post AG XTRA:DPW $33.42 97.8% $41,217 $57,790 $62,838 $5,080 8.1% 0.9x 11.4x 16.8x DSV Panalpina A/S DSV $95.18 93.4% $22,035 $24,211 $85,524 $972 1.1% 0.3x 24.9x 26.8x Echo Global Logistics, Inc. ECHO $22.65 72.5% $618 $794 $2,236 $68 3.0% 0.4x 11.8x 18.0x Expeditors International of Washington, Inc. EXPD $74.29 92.1% $12,683 $11,979 $8,382 $853 10.2% 1.4x 14.1x 15.0x FedEx Corporation FDX $145.57 59.8% $37,981 $68,386 $69,689 $4,921 7.1% 1.0x 13.9x NA Forward Air Corporation FWRD $63.72 87.5% $1,804 $1,997 $1,385 $163 11.7% 1.4x 12.3x 16.4x Hub Group, Inc. HUBG $46.50 94.2% $1,585 $1,773 $3,786 $269 7.1% 0.5x 6.6x 11.3x J.B. Hunt Transport Services, Inc. JBHT $110.65 90.6% $11,814 $13,303 $9,033 $1,156 12.8% 1.5x 11.5x 19.8x Kuehne + Nagel International AG SWX:KNIN $147.33 94.3% $17,641 $19,726 $21,251 $1,241 5.8% 0.9x 15.9x 19.9x Landstar System, Inc. LSTR $112.58 91.0% $4,462 $4,327 $4,277 $361 8.5% 1.0x 12.0x 13.6x Panalpina Welttransport (Holding) AG SWX:PWTN $223.30 92.9% $5,303 $5,424 $6,083 $144 2.4% 0.9x NA NA Radiant Logistics, Inc. RLGT $5.17 70.5% $257 $288 $891 $39 4.3% 0.3x 7.4x 12.3x Roadrunner Transportation Systems, Inc. RRTS $10.36 43.6% $390 $778 $2,076 ($8) (0.4%) 0.4x NA NA Ryder System, Inc. R $51.77 70.0% $2,761 $10,550 $8,905 $2,414 27.1% 1.2x 4.4x 14.4x TFI International Inc. TSX:TFII $30.64 84.1% $2,528 $4,222 $5,195 $548 10.6% 0.8x 7.7x 12.5x United Parcel Service, Inc. UPS $119.82 96.9% $102,890 $124,013 $73,374 $7,906 10.8% 1.7x 15.7x 22.0x Universal Logistics Holdings, Inc. ULH $23.28 62.2% $635 $1,071 $1,522 $146 9.6% 0.7x 7.4x 13.7x XPO Logistics, Inc. XPO $71.57 61.9% $6,597 $14,173 $16,901 $1,600 9.5% 0.8x 8.9x 16.4x ZTO Express (Cayman) Inc.