Slides
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2024 INVESTOR DAY December 12
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2024 INVESTOR DAY Chuck Ives Senior Director of Investor Relations Welcome and Opening Remarks
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2024 INVESTOR DAY Except for the historical information contained herein, the matters set forth in this presentation are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; and other risks and uncertainties detailed in our Annual and Quarterly Reports. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. 3 Safe Harbor Statement
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2024 INVESTOR DAY 4 Today’s Agenda 10:15 am Driving Sustainable Growth and Efficiency in North American Surface Transportation Michael Castagnetto | President of North American Surface Transportation (NAST) Driving the Future of Global Forwarding Mike Short | President of Global Freight Forwarding (GF) Building on a Resilient Financial Foundation Damon Lee | Chief Financial Officer Closing Remarks Dave Bozeman | President and Chief Executive Officer 11:15 am Q&A Session 9:00 am Welcome and Opening Remarks Chuck Ives | Senior Director of Investor Relations Executing our Strategy to Deliver Premium Shareholder Value Dave Bozeman | President and Chief Executive Officer Differentiating through Talent and Culture Angie Freeman | Chief Human Resources and ESG Officer Leading the Logistics Industry into the Era of Digital Enablement Arun Rajan | Chief Strategy & Innovation Officer 10:00 am Break
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2024 INVESTOR DAY Dave Bozeman President & Chief Executive Officer Executing our Strategy to Deliver Premium Shareholder Value
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2024 INVESTOR DAY 6 Key Messages Clear path to enhanced operational efficiency by leveraging the Robinson Operating Model Significant free cash flow, driving investment optionality throughout the cycle Asset-light operating model, generating strong investment returns Strategic execution already yielding results, with additional runway for market share growth and margin expansion Ongoing industry leadership and strong, defensible competitive moat 1 2 3 4 5
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2024 INVESTOR DAY 7 Building on a Strong Foundation FIRST MOVER ADVANTAGE STRONG BALANCE SHEET THROUGH CYCLE LARGEST CUSTOMER BASE AND DATA-SET MOTIVATED EMPLOYEE BASE 2024 INVESTOR DAY
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2024 INVESTOR DAY 8 C.H. Robinson at a Glance (NASDAQ: CHRW) Global Leader in Expanding Freight & Logistics Market 35M Shipments Managed / Year $22B Freight Under Management 500K+ Customers & Contract Carriers Move the Most Truckload Freight of Any Company in North America Leading Forwarder of Ocean Freight Globally Global Managed TMS Provider Powering the Most Complex Supply Chains in the World $3B+ North America LTL Brokerage World’s Most Powerful Supply Chain Company 1905 Founded Eden Prairie, MN Headquarters ~$13B Market Cap1 150 Countries across 6 Continents ~$18B 2023 Revenue ~14,000 Global Employees Nearly $1B drop trailer business (12% of NAST Truckload volume) 1. As of December 2, 2024
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2024 INVESTOR DAY 9 Learning from Our Past to Deliver a Better Future Adapting to Meet Evolving Market Needs and Lead the Industry into Era of Digital Enablement • Leveraging digital capabilities and generative AI as enablers of relationship-driven brokerage • Firming up customer relationships, particularly with SMB customers • Re-capturing lost market share with a focus on key growth segments / verticals • Driving additional synergies and cross-selling across our portfolio • Strengthening operational rigor and developing greater organizational agility • Built scale as a market leader, serving customers of all sizes • High-touch approach to logistics management • Developed strong customer relationships Building a Future-ready C.H. Robinson 2023+ Era of Traditional Brokerage Pre-2017 Era of Digital Disruption 2017-2022 • Experienced significant industry disruption and competition from new “digital” entrants • Developed digital capabilities; shifted to “tech-first” approach • Focused on largest customers to protect market share RESULT WAS… • Lower market share • Loss of SMB1 customers • Erosion of NAST operating margin
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2024 INVESTOR DAY CLEAR FOCUS ON TWO NORTH STARS New Strategy and Stronger Execution Enables the Next Era of Profitable Growth 10 Key Priorities for the New C.H. Robinson Shifting to a more action-oriented culture: • From “admiring” problems to solving problems • From slow innovation to fast innovation • From people-heavy resourcing, then tech-first approach, to using technology as an enabler of our strategy Commitment to strategic execution: • Executing at a higher and more consistent level • Implementing a new Lean operating model • Cascading problem-solving tools through organization GROWING MARKET SHARE1 2 EXPANDING OPERATING MARGINS
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2024 INVESTOR DAY 11 Strategic Execution is Driving Results 180bps YoY improvement in Q3 2024 NAST Adjusted Gross Profit Margin On track for >30% improvement in NAST & GF productivity over a 2-year period 500bps YoY improvement in Q3 2024 YTD Adj. Operating Margin1 • Delivery of exceptional service for our customers and carriers, with record high net promoter scores • Increased yields and gross margin resulting from dynamic costing and pricing innovations • Improved productivity and operating leverage • All fostered by the operating discipline that the new Robinson Operating Model demands Key Accomplishments Gaining Operational Traction and Creating Momentum for Sustained Performance 1. Excluding restructuring and loss on divestiture
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2024 INVESTOR DAY 6% 7% 7% 7% 8% 9% 10% 10% 10% 11% 11% 12% 12% 13% 14% 14% 16% 17% 19% 18% 22% 26% 26% 29% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 12 Brokerage is Steadily Capturing More of the Total Freight Market Shift from Asset-Based Trucking to Brokers has Been Ongoing and is Continuing Brokerage Penetration of U.S. Freight Market 1 1. Source: Third-party research
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2024 INVESTOR DAY 13 Connecting and Serving the Two-sided Marketplace Continuing to Win with the Scale of Our Network 90K+ Active customers across the globe 450K+ Contract carriers on our platform 9% large carriers > 400 trucks 17% medium carriers 100-400 trucks 74% small carriers < 100 trucks truckload shipments by carrier size 100+ LTL Carriers All Class 1 N.A. Carriers Top 5 NVOCC Global Ocean 20 Partners move 75% vol * NOTE: All customer, carrier, and supplier data for year ended December 31, 2023 TOP 500 Customers 51% of adjusted gross profit 99% retention in 2023 86% 10+ years with C.H. Robinson
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2024 INVESTOR DAY Best-in-class, Global Suite of Services Scale and expertise across a full portfolio of services 14 2024 INVESTOR DAY 4 Core Modes Enablers | Delivery Model Org & People Technology / Tools Processes Standalone Services Speed Scope Distance Equipment (Un)load Temp. Warehousing Standard Domestic Long-Haul Dry-Van Live Ambient Fixed Expedited International Short-Haul Specialized Drop Temp-Control Consolidation Value-Added Services TL 1 Ocean 3 LTL 2 Air 4 Managed Solutions Supplier Management Order Management E2E Visibility Expertise and Credentials Port Services
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2024 INVESTOR DAY C.H. Robinson Success is Fueled by Our Customer Promise Customer Promise 15 2024 INVESTOR DAY We deliver customer success through exceptional service and high value — like no one else Unrivaled Scale Tailored Solutions We get you anywhere you need to go — even when others can’t — with the full power of our connections, relationships, and global reach. Unlock solutions designed for your business through our integrated suite of services and advanced tech capabilities. ++ Unmatched Expertise Work with the experts who go further, no matter what, and know more than anyone else about logistics for your industry, business, and customers.
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2024 INVESTOR DAY Serving Customers that Are the Global Economy 16 2024 INVESTOR DAY
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2024 INVESTOR DAY 17 Our Sustainable Competitive Advantages | How We Win Capitalize on comprehensive knowledge of customer needs for each vertical and segment Leverage size and scale to meet the needs of our most complex global customers Utilize robust suite of digital tools to enable a seamless customer experience Enhance deep focus and expertise within our core modes Drive relationship- focused approach grounded in a partnership model Demonstrate proven track record of supporting customers’ changing sustainability objectives
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2024 INVESTOR DAY 18 Executing Our Strategy to Deliver Premium Shareholder Value Strategic Pillars Focused on growing market share and expanding operating margins Ignite growth in core modes Improve cost base & margin profile Capture portfolio synergies OPERATING MODEL TALENT INNOVATION Expand key foundational capabilities
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2024 INVESTOR DAY 19 Clear Strategic Priorities Driving Clarity and Focus to Deliver Higher Highs and Higher Lows through the Cycle Ignite Growth in Core Modes Improve Cost Base & Margin Profile Capture Portfolio Synergies • Drive outsized growth with SMBs • Target growth verticals (e.g., Retail, Automotive, Healthcare, and Energy) • Expand TAM through targeted capabilities (e.g., Drop Trailer, Consolidation / Warehousing, and Global Forwarding lane expansion) • Increase productivity and scalability • Optimize organizational structure and personnel costs • Build on NAST cost-of-hire advantage • Drive enhanced yield and gross margin • Leverage enterprise scale and capabilities • Enhance go-to-market strategy by cross-selling solutions, optimizing managed services • Build distinct market position with comprehensive solutions for global customers • Feed the 4 core modes
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2024 INVESTOR DAY 20 Expand Key Foundational Capabilities OPERATING MODEL TALENT STRATEGY INNOVATION
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2024 INVESTOR DAY Doing Things Differently 21 Implementing and Executing New Operating Model to Drive Profitable Growth and Increase Operating Income 5 2 1 3 4 Clear Long-Term Strategy and Goals Defined Strategic Workstreams Scorecard: Measurable and Actionable Inputs Continuous and Rigorous Measurement and Action Plans Continuously Improving. Never Stops. PLAN A C T I V ATE IM P R O VE • Operational discipline • Execution – regular cadence of operating reviews • Opportunities for improvement – “embracing and attacking the red” • Faster problem solving and countermeasures • Transparency and accountability to key input metrics
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2024 INVESTOR DAY 22 Leading Differently through Authentic and Credible Team with Proven Track Record 300+ Years Dave Bozeman Damon Lee Arun Rajan Angie Freeman Michael Castagnetto Mike Short President and Chief Executive Officer Joined: 2023 Chief Financial Officer 2024 Chief Strategy and Innovation Officer 2021 Chief Human Resources and ESG Officer 1998 President of NAST 2005 President of Global Freight Forwarding 2012 TODAY’S PRESENTERS ADDITIONAL EXECUTIVE LEADERSHIP Ben Campbell Duncan Burns Jim Reutlinger Michael Neill Jose Rossignoli Jordan Kass Chief Legal Officer and Secretary 2004 Chief Communications Officer 2020 VP, Enterprise Strategy Program Management 2024 Chief Technology Officer 2002 President of Robinson Fresh 2012 President of Managed Solutions 2000 of Combined Industry Experience Across Multiple Leading Companies:
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2024 INVESTOR DAY 23 Accountable and Engaged Board of Directors Jodee A. Kozlak James J. (Jim) Barber, Jr. Dave Bozeman Kermit Crawford Timothy C. Gokey Mark A. Goodburn Chair of the Board, C.H. Robinson Worldwide, Inc. and Former EVP and CHRO, Target Corporation Retired COO, United Parcel Service, Inc. President & CEO, C.H. Robinson Worldwide, Inc. Retired President and COO, Rite Aid Corporation CEO, Broadridge Financial Solutions Retired Chairman and Global Head of Advisory, KPMG International Mary J. Steele Guilfoile Henry J. Maier Michael H. McGarry Paige K. Robbins Paula C. Tolliver Henry W. (Jay) Winship Former EVP, JP Morgan Chase Retired President and CEO of FedEx Ground Retired Executive Chairman and CEO, PPG Industries SVP and President, Grainger Business Unit Retired Corporate VP and Chief Information Officer, Intel Corporation Founder, President and Managing Member of Pacific Point Capital LLC ~92% Independent Directors 50% Gender / Racial / Ethnic Diversity Board Attributes ~62 Avg. Age 3.6 years Avg. Tenure • CEO / Executive Mgmt. Experience • Public Company Board • Sales & Marketing • Accounting / Finance • Logistics / Supply Chain / Transportation • Strategic Initiatives / M&A • Technology / Digital / Cybersecurity • Business / International Operations • Talent Strategy & Human Capital Management • Optimization & Innovation Board Skills
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2024 INVESTOR DAY 24 Why Invest in C.H. Robinson Significant free cash flow, driving investment optionality throughout the cycle Ongoing industry leadership and strong, defensible competitive moat Clear path to enhanced operational efficiency by leveraging the Robinson Operating Model Asset-light operating model, generating strong investment returns Strategic execution already yielding results, with additional runway for market share growth and margin expansion
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2024 INVESTOR DAY Angie Freeman Chief Human Resources and ESG Officer Differentiating through Talent and Culture
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2024 INVESTOR DAY 26 Key Messages Aligning our incentives with business strategy to drive long-term, profitable growth 4 Maximizing the power of our people by leveraging innovative technology, a people-first culture of excellence, continuous improvement mindset, and our Robinson Operating Model 3 Empowering our people with strong, skilled leaders ready to drive the company into the future and enhance shareholder value 2 Building on our industry- leading capability of finding and developing great talent 1
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2024 INVESTOR DAY 27 Our Service is Well Recognized Industry Leader and Strategic Partner of Choice “Your greatest asset is your people. Ahmed A. is the biggest reason we continue to do business with C.H. Robinson. He is communicative and works quickly to resolve issues.” NAST Carrier “This has been a 5-star experience, and we are extremely happy we have partnered with C.H. Robinson as our strategic partner. We have never worked with such a thorough implementation or account management team – from Solution Design, LTL and TL, to Flatbed and Small Parcel.” NAST & Global Forwarding Customer “I have been working with Adam S. for several years now. He is my company's #1 freight specialist. He provides great rates, is excellent at what he does and consistently goes the extra mile for every shipment. We really enjoy working with him.” Freightquote & Global Forwarding Customer
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2024 INVESTOR DAY 28 Leading the Industry with a Strong and Performance-driven Team ~14K Employees vs. ~18K 2 years ago 37 Countries ~5.4 YRS Median Tenure 80 Languages Spoken 49% Gender Diversity 30% Ethnic Diversity +4% Increased percentage of employees in customer and carrier facing roles vs. 2 years ago 12.6% Voluntary Turnover vs. 15% Industry Average Reflecting the Needs of Our Customers and the Demands of a Future-ready Business Global Workforce Shift to Relationships and Revenue Generation * NOTE: All data as of September 30, 2024
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2024 INVESTOR DAY 29 Our People and Culture Are a Competitive Advantage Research Shows the #1 Reason Customers Work with Us is Our People and Their Expertise We find people that are driven to succeed: • Embody our EDGE values of integrity, excellence, and growth • Competitive and team orientated • Adaptable, innovative problem solvers • Relationship builders Identifying the Best Unmatched opportunities to learn and grow career for both early career and experienced talent Growth and Development • We encourage candidates to leverage AI • Recruiters leverage AI, resulting in 1-day reduction in time to fill a position, leading to 33% increase in hires per recruiter per year • Using AI to help realign talent by automating certain tasks and boosting productivity • Employees can free up time for critical thinking, problem solving and relationship building Philosophy and adoption of AI We attract top talent because: • Leading supply chain expertise • Advanced technology • Career opportunities • Track record of supporting our people and their communities • Winning culture Strong Talent Brand
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2024 INVESTOR DAY Utilize data-driven approach to build leadership excellence Build deep supply chain expertise across the organization Ability to recognize strong talent early and leverage defined leadership success profile to identify what great looks like at Robinson Leverage our scale, global footprint, and diverse relationships to grow highly capable and knowledgeable leaders 30 Developing Decisive Leaders Who Are Fit, Fast, and Focused Retaining the best of the best Utilize Unmatched Scale and High-performance Culture to Develop Leaders Like No Other 77% of people leaders have been with Robinson for 5+ years 52% of people leaders have been with Robinson for 10+ years
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2024 INVESTOR DAY 31 The Robinson Operating Model: A Winning Formula Foundational to Our Culture Prioritizing People + Tech Performance Based Culture Grounded in our Purpose • Blend logistics science and Robinson’s tech expertise with a focus on service and customer dedication • Highlight our people’s unique capabilities and commitment in the marketplace • EDGE values • Exceptional service • Tackle challenges together and go the extra mile • Support the team and always do the right thing • Get better every day Continuous Improvement + Speed Strong Corporate Citizens • Foster continual improvement for customer satisfaction and growth • Leverage operating model to empower employees to continually identify ways to enhance processes and outcomes • Culture reflects dedication to making a positive impact on the organizations our people care about most • C.H. Robinson Foundation grantmaking supports our communities, industry and the environment
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2024 INVESTOR DAY 32 • Balance of margin and volume goals, promoting a cohesive approach • Aligned employees on performance metrics to unify towards shared goals • Updated employees on compensation details and performance expectations Unified Performance Metrics • Through our equity and stock purchase programs we have a large base of employee-owners • In our equity program, we grant equity to 10% of our population, compared to Fidelity benchmark of approx. 5% • Our Employee Stock Purchase plan has a 20% participation rate Ownership Mentality • Designed a compensation philosophy that aligns employee pay with performance • Competitive compensation rewards top talent and exceptional performance Philosophy • Strategic overhaul of incentive program to drive growth • Top leaders on plans to drive long term enterprise growth • CEO: 89% performance based, 72% equity1 • NEOs: 81% performance based, 63% equity1 • Top 70 leaders: 54% performance based, 33% equity1 Top-Down Alignment From the Desk to Leadership, Our People Have Clear Goals and Aligned Incentives to Drive Success Aligning Incentives to Drive Sustainable Growth Continue to expand operating margin and grow market share 1. For the year ended December 31, 2023
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2024 INVESTOR DAY 33 Our People & Culture Are Recognized for Excellence Strong Progress Made with Significant Runway Ahead AWARDS & RECOGNITION Most Responsible Company Broker Carrier of the Year World’s Most Admired Company America’s Most Innovative Company Strategic Partner Award for Innovation Value Award for Teamwork Enterprise Partner of the Year
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2024 INVESTOR DAY 34 Key Takeaways Building on our industry-leading capability of finding and developing great talent1 Empowering our people with strong, skilled leaders ready to drive the company into the future and enhance shareholder value2 Maximizing the power of our people by leveraging innovative technology, a people-first culture of excellence, continuous improvement mindset, and our Robinson Operating Model3 Aligning our incentives with business strategy to drive long-term, profitable growth4 2024 INVESTOR DAY Together, we keep the world moving forward. Every shipment. Every challenge. Every day.
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2024 INVESTOR DAY Leading the Logistics Industry into the Era of Digital Enablement Arun Rajan Chief Strategy & Innovation Officer
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2024 INVESTOR DAY 36 Experiencing Well-known Pattern of Technology Disruption Logistics Complexity Favors Incumbents with Scale and Expertise to Disrupt from Within FOUNDED 1999 INDUSTRY e-Commerce Industry disruption favored New Entrants FOUNDED 1996 INDUSTRY Travel Industry disruption favored New Entrants FOUNDED 1905 INDUSTRY Logistics Industry disruption favors Incumbents
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2024 INVESTOR DAY 37 Key Messages Driving gross margin and operating margin expansion 3 Delivering business model scalability 2 Transforming the customer and carrier experience to grow market share 1 Disrupting from Within to Lead the Logistics Industry into the Era of Digital Enablement
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2024 INVESTOR DAY 38 Executing Our Strategy to Deliver Premium Shareholder Value Strategic Pillars Focused on growing market share and expanding operating margins Ignite growth in core modes Improve cost base & margin profile Capture portfolio synergies OPERATING MODEL TALENT INNOVATION Expand key foundational capabilities
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2024 INVESTOR DAY 39 Leading the Industry into the Era of Digital Enablement Elevating the customer and carrier experience Setting the Bar with the C.H. Robinson Digital Platform Load search & recommendations Negotiation Booking Invoicing Track / Trace Analytics Quoting Tendering Appointment scheduling Advanced visibility Alerts Analytics Customer Platform Carrier Platform Accept / Reject Dynamic pricing Contractual pricing Dynamic costing ETA predictions Freight flow Award management All customers All carriers CHR Gen AI & Machine Learning Digital connectivity (ELD, EDI, API) Digital connectivity (TMS, ERP, EDI, API) Navisphere System | C.H. Robinson Team Members
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2024 INVESTOR DAY 40 Leveraging Proven Platform Patterns Delivering a Superior Customer Experience, Scalability, and Margin Expansion Industry-leading Digital and AI Capabilities Leveraging unmatched scale and information advantage to fuel the most powerful AI/ML capabilities in the industry 1 Frictionless Quote-to-cash Order Execution Lowering our cost to serve to enable operating leverage and margin expansion by automating every step in the quote-to-cash lifecycle 3 People and Technology Synergy Combining unmatched domain expertise with cutting-edge technology 4 Dynamic Pricing and Costing Technologies Sophisticated dynamic pricing / costing technology and revenue management to optimize gross margins 2 Learning from success in digital marketplaces to lead the way 40 2024 INVESTOR DAY
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2024 INVESTOR DAY 41 Capitalizing on Dynamic Costing & Pricing Innovating to Deliver an Elevated Experience While Expanding Gross Margins Key Aspects • Leveraging data resulting from our tremendous transactional scale to power AI/ML • Dynamically adjusting to real time supply and demand signals from our digital channels to optimize yield • Massively scalable dynamic time pricing and costing capability • Maintaining expert “Humans in the Loop” to continuously improve the algorithms and fill in blind spots • Optimizing profitability via real-time yield management 700K Customer quotes per day > 1M Digital negotiations per month with carriers > 100K Costing changes per day Improve Cost Base & Margin Profile
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2024 INVESTOR DAY 42 Innovating Across the Quote-to-Cash Lifecycle Innovating for an Elevated Experience while Creating Operating Leverage QUOTING TO CUSTOMER ORDER TENDER ACCEPT / REJECT ORDER PLAN & OPTIMIZE SHIPMENT CAPACITY BOOKING APPOINT- MENTS IN TRANSIT TRACKING FINANCIALS LEAD / OPPORTUNITY Driving >30% SPPPD1 Improvement in 2024 (vs 2022) PICK UP > 10K Gen AI Transactions/Day > 300K Automated Accept /Reject per month > 50% Automated Appointments ~50% Digital Capacity Booking 1B Automated Tracking Updates DELIVERY QUOTE > 85% Automated Orders Improve Cost Base & Margin Profile 1. Shipments per person per day
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2024 INVESTOR DAY 43 Generative AI Order Processing Benefits of AI-Driven Order Processing 2K Email order requests per day <1 Minutes Human touch time (down from 8-15 minutes) ~250-500 Hours Saved Each Day ADDITIONAL BENEFITS • Enhanced customer satisfaction and faster turnaround times • Scalability: enables creation of multiple orders at once • Ability to turn email shipment requests into orders • Streamlines emails regarding appointments for pickup and delivery • Freeing our people up to perform more value-added work for customers and carriers Driving Operating Margin Expansion Prior Order Entry Pain Points • Manual data entry • Toggling between screens • Copying and pasting data between fields and applications • Significant human touch time required / potential for human error
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2024 INVESTOR DAY Leading the Logistics Industry into the Future 44 Areas of Expanded Focus 2 Ignite growth in high-potential markets • Key verticals powered by high priority horizontal capabilities • To access greater Total Addressable Market (TAM) 3 Maximize One Robinson go-to-market strategy • Starting with Managed Solutions as a horizontal capability • To power increased capability to solve complex supply chain problems for customers 4 Accelerate profitability through innovation • Double down on digital capabilities that amplify our expertise • Gen AI solutions that transform customer experiences Implement long-term, multi-horizon strategy • Drive short- and long-term strategic priorities • Informed by secular trends 1
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2024 INVESTOR DAY 45 Transforming the customer and carrier experience to grow market share1 Delivering business model scalability2 Driving gross margin and operating margin expansion3 2024 INVESTOR DAY45 Key Takeaways Disrupting from Within to Lead the Logistics Industry into the Era of Digital Enablement
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2024 INVESTOR DAY Break
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2024 INVESTOR DAY Michael Castagnetto President of North American Surface Transportation (NAST) Driving Sustainable Growth and Efficiency in North American Surface Transportation
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2024 INVESTOR DAY 48 Key Messages Digitizing operations and carrier experience to increase productivity, optimize cost structures, and enhance margins 4 Driving growth in core transportation modes, expanding addressable market and market share through core capability development, and focusing on high- growth verticals and innovative service solutions 3 Leveraging unrivaled scale, data, and information advantage to deliver best-in-class tailored solutions for our customers 2 Capitalizing on our industry leadership position through strong relationships and deep expertise enabled by technology 1
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2024 INVESTOR DAY 49 North American Surface Transportation (NAST) at a Glance Driving Operational Excellence and Strategic Vision to Become Fit, Fast, and Focused Market leader competitively advantaged via scale, with a commitment to 40% operating margin target 68K Active Customers 50K Shipments per Day 340K+ Contract Carriers on Our Platform Leading talent and tech capabilities enhancing scalability and information advantages: Most Connected and Efficient Marketplace Real Time, Dynamic Pricing Tools Enhanced Digital Products for Customers and Carriers $3B+ North America LTL Brokerage Nearly $1B drop trailer business (12% of Truckload volume)
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2024 INVESTOR DAY 50 Leading Position in Fragmented Brokerage Market 12.4% 8.1% 6.3% 6.0% 4.8% 3.4% 0.5% CHRW J.B. Hunt RXO Total Quality Logistics Transportation Insight Remaining Top 10 Remaining Top 100 Average Market Share of Top 100 Domestic 3PLs1 • Leading market position despite recent loss of SMB market share • Size and scale to compete effectively across market cycles • Ability to serve customers of all sizes with a full portfolio of solutions 1. Source: Armstrong & Associates, Inc.
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2024 INVESTOR DAY For-Hire Trucking: ~$400B 51 Large and Growing Addressable Market Key Market Growth Drivers Industry-wide recognition that 3PL is essential for optimizing supply chains Customers seeking partners to develop long- term strategic plans Critical demand for people- driven expertise powered by technology MARKET Brokerage Non-Brokerage MARKET SIZE1 ~$117B ~$283B OUR FOCUS • Reinforcing leadership position • Reclaiming SMB market share • Accelerating growth via vertical-centric solutions • Growing managed solutions • Expanding asset- enabled solutions • Elevating customer and employee experience We bring flexibility of solutions with scale 1. Source: Kearney
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2024 INVESTOR DAY 52 Executing Our Strategy to Deliver Premium Shareholder Value Strategic Pillars Focused on growing market share and expanding operating margins Ignite growth in core modes Improve cost base & margin profile Capture portfolio synergies OPERATING MODEL TALENT INNOVATION Expand key foundational capabilities
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2024 INVESTOR DAY 53 Recapturing Small and Medium Customers to Take Back Share Driving Profitable Growth by Recapturing Our Position with Traditional Customer Base INTENTIONAL FOCUS ON SMALL AND MEDIUM CUSTOMERS • Investing in sales, leadership, and technology • Leveraging existing playbooks informed by decades of expertise • Hiring at traditional brokerage role Mid-single Digit year-over-year volume growth YTD, in the midst of a freight recession Ignite Growth in Core Modes
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2024 INVESTOR DAY 54 Focusing on Markets Highly Aligned to Our Value Prop 2024 INVESTOR DAY54 Ignite Growth in Core Modes Key Industry Characteristics For Our Vertical Growth Strategy • Highly complex multi-modal supply chains • Cross-border • Just-in-time or inventory-intensive supply chains • Need for consolidation services • Ability to leverage One Robinson expertise Example Verticals That Fit Our Value Prop • Why We Play Here: Deep integration across multiple key focus areas with history of growth and success • Competitive Edge: Scale and scope, talent, industry knowledge, and breadth of solutions within retail delivers full breadth of solutions with ability to flex supply and capability Retail Automotive • Why We Play Here: Long history but early innings of market penetration, strong alignment with international solutions, need for just-in-time inventory solutions • Competitive Edge: Extensive network, technology integration, industry expertise, global reach, customized solutions, and sustainability initiatives
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2024 INVESTOR DAY 55 Igniting Growth through TAM Expansion Leveraging Our Expertise and Capabilities to Expand in High Growth Adjacencies Ignite Growth in Core Modes Enhance Targeted Capabilities Focus on High-Growth Adjacencies Expand into Additional Solutions • Drop Trailer Expansion-Asset light position with exponential impact beyond direct assets (12% of NAST Truckload volume) • Consolidation and Warehousing solutions to provide inventory positioning and flexibility to customers • Industry leading intra Mexico, intra Canada and Cross-border solutions that capitalizes on near shoring and impacts key customer verticals • 4PL Managed Solutions bringing to bear the full scale of One Robinson across data, information, solution design, engineering, and supply chain execution
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2024 INVESTOR DAY 56 Drive Productivity and Scalability Achieving 30%+ productivity improvement over two years Enabling Industry-Leading 40% Mid-Cycle Operating Margin Improve Cost Base & Margin Profile 1 Capitalize on enterprise size and scale • Industry leading cost-to- serve to drive volume growth on our terms • Pursue cross-sell opportunities through One Robinson approach • Solutions to meet all customers across all segments and industries 2 Leverage tech to enhance productivity • Improve order flow and workflow through AI and system improvements • Leverage automation to reduce task-oriented work while upskilling our talent to focus on customer- centric work 3 Drive efficiencies through Lean principles • Execute Robinson Operating Model throughout the business • Drive adoption of continuous improvement mindset 4 Optimize pricing and margin profile • Reduce cost-of-hire via digital brokerage • Drive enhanced yield via revenue management • Shift product mix to higher margin solutions over time
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2024 INVESTOR DAY 57 Unlocking Value through Portfolio Synergies Leveraging One Robinson Go-to-Market Strategy • Robinson Fresh: Unparalleled temperature and inventory expertise • Global Forwarding: Comprehensive global solutions across Air, Ocean, LTL, and Truckload • Managed Solutions: Strengthening customer relationships through seamless access to integrated solutions Capturing Portfolio Synergies Harnessing synergies across our portfolio to provide differentiated value
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2024 INVESTOR DAY 58 Capitalizing on our industry leadership position through strong relationships and deep expertise enabled by technology1 Driving growth in core transportation modes, expanding addressable market and market share through core capability development, and focusing on high-growth verticals and innovative service solutions3 Digitizing operations and carrier experience to increase productivity, optimize cost structures, and enhance margins 4 2024 INVESTOR DAY58 Key Takeaways Leveraging unrivaled scale, data, and information advantage to deliver best-in-class tailored solutions for our customers2
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2024 INVESTOR DAY Mike Short President of Global Freight Forwarding (GF) Driving the Future of Global Forwarding
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2024 INVESTOR DAY 60 Key Messages Leveraging One Robinson to capture opportunities across key verticals and trade lanes that drive profitable growth 4 Utilizing automation and continuous improvement to increase productivity, scalability, and operating leverage 3 Building on our unique scale, deep customer intimacy, differentiated service, and technology enablement through continuous improvement 2 Delivering sustained market share growth in an expanding market 1
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2024 INVESTOR DAY 61 Global Forwarding (GF) at a Glance Making Global Freight Move Around the World with Ease 25K Active Customers 6K Shipments per Day 149 Steps in Our Order-to- Cash Lifecycle Connecting disparate components of international supply chains, with a commitment to 30% operating margin target Strong customer and carrier collaboration enabled by scale and breadth of One Robinson: Fast, reliable air freight services at all major hubs globally Top 5 NVOCC within global ocean carrier portfolio Leading ocean forwarder in Transpacific, Transatlantic, Oceania, and Indian Subcontinent
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2024 INVESTOR DAY Driving Profitable Growth Across Market Cycles 62 Modal AGP and Adjusted Income from Operations1 2020 – 2022 Avg. OI: $381M 2012 OI: $10M 2019 OI: $81M 2023 OI: $108M LTM OI: $188M $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2012 2019 2020 2021 2022 2023 LTM Pandemic-related impact Acquired Phoenix Int’l in Nov 2012 Customer expertise / service Targeted lane expansion Near- and re-shoring Vertical-centric solutions Key Focus Areas to Expand Our Market Share 2024 INVESTOR DAY 12 Months Ended 9/30/2024 1. Adjusted income from operations is a non-GAAP financial measure. Refer to the Non-GAAP Reconciliations at the end of this presentation for further discussion and a GAAP to Non-GAAP reconciliation for 2022 to 2024.
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2024 INVESTOR DAY 63 Executing Our Strategy to Deliver Premium Shareholder Value Strategic Pillars Focused on growing market share and expanding operating margins Ignite growth in core modes Improve cost base & margin profile Capture portfolio synergies OPERATING MODEL TALENT INNOVATION Expand key foundational capabilities
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2024 INVESTOR DAY 64 Competitive Advantages Enabling Our Right to Win Compliance expertise across supply chain governing bodies • Driving stickier customer relationships Unique scale in the U.S. freight forwarding market • Empowering growth by capitalizing on expanding market Differentiated service driven by our people • Positioning GF to create tailored solutions that precisely align with customer needs Optimized mix of proprietary and third-party technology • Eliminating the need for outsourcing, enabling better data integrity and more impactful solutions for customers Ignite Growth in Core Modes
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2024 INVESTOR DAY 65 Targeted Lane Expansion Proven Playbook to Drive Repeatable Process through Shifting Market Dynamics Flexibility to Capture Growth as Market Dynamics Shift • Aligning our services with carriers’ preferences, whether they need us to work with them locally, globally, or regionally • Delivering compliance expertise to seamlessly guide customers as they enter new regions • Customizing services to meet customers’ unique needs, powered by our commitment to commercial excellence Background • Bridges Asia’s manufacturing hubs with other key consumer markets and industrial centers • Serves as a backbone for supply chains, driven by heavy dependence on Asian-manufactured goods Well-positioned to win: • Leverages existing sales networks, minimizing investment while maximizing global reach Well-Positioned to Capture Significant Share in Rapidly Expanding Trade Lanes Focus on lanes involving Southeast Asia, India, and Transatlantic Ignite Growth in Core Modes
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2024 INVESTOR DAY 66 Drive Productivity and Scalability Improve Cost Base & Margin Profile 1 Drive higher productivity and scalability through digitization • Leveraging automation and continuous improvement 2 Lower cost to serve • Transforming operational management rigors through center-led guidance and persistent network adoption • Driving operating leverage • Labor arbitrage for high frequency tasks 3 Enhance yield via revenue management • Building pricing and operational platforms that better support commercial and product goals • Maximizing profitability 4 Focus on products that require expertise, scale, and internal structure • Expanding Ocean and Air gateways, which are high barrier to entry, difficult to replicate, and highly valued • Vertical expertise and solutions
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2024 INVESTOR DAY 67 Build on Distinctive Market Position One-Robinson Go-to-Market Strategy • Enhance cross-selling strategy and execution between GF and NAST • Drive volume to four core modes • 20% of GF’s new AGP comes from relationships that were initiated by NAST • Opportunity to integrate NAST’s domestic solutions with GF’s global customer base, enhancing relationships • Connecting NAST customers to GF vertical expertise, modal, and trade lane solutions to enable wallet share growth across the enterprise Harnessing “One Robinson” to strengthen NAST relationships and highlight our unique GF capabilities, meeting customers’ unique needs in key global trade lanes and verticals Capturing Portfolio Synergies
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2024 INVESTOR DAY 68 Expand Key Foundational Capabilities | Enable Strategic Pillars Becoming a Market Leader in Global Supply Chain Business Intelligence and Prediction Enhance customer experience by improving operational quality, uniformity, and controls Execute Operating Model to drive quality, growth, productivity, and expense management Capitalize on technology advancements to reduce task-oriented work and upskill talent KEY OPPORTUNITIES Scale within Europe Scale within Air Freight Leverage technology to simplify customer interactions
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2024 INVESTOR DAY 69 2024 INVESTOR DAY69 Key Takeaways Delivering sustained market share growth in an expanding market1 Utilizing automation and continuous improvement to increase productivity, scalability, and operating leverage3 Leveraging One Robinson to capture opportunities across key verticals and trade lanes that drive profitable growth4 Building on our unique scale, deep customer intimacy, differentiated service, and technology enablement through continuous improvement2
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2024 INVESTOR DAY Damon Lee Chief Financial Officer Building on a Resilient Financial Foundation PRESENTATION AND FINANCIAL TARGETS TO BE POSTED DURING THE EVENT
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2024 INVESTOR DAY APPENDIX
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2024 INVESTOR DAY 3PL: Third-party logistics 4PL: Fourth-party logistics AGP: Adjusted gross profit AI: Artificial intelligence EDGE: Evolve constantly, Deliver excellence, Grow together, Embrace integrity GF: Global Forwarding GHG: Greenhouse gas LTL: Less-than-truckload ML: Machine learning NAST: North America Surface Transportation NEO: Named executive officer NGO: Non-governmental organization NVOCC: Non-Vessel Operating Common Carrier SMB: Small and medium-sized businesses SPPPD: Shipments per person per day TL: Truckload TMS: Transportation management system 72 Glossary of Terms
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2024 INVESTOR DAY SPEAKER BIOS
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2024 INVESTOR DAY 74 Speaker Bios Dave Bozeman | President & Chief Executive Officer David (Dave) Bozeman is President and Chief Executive Officer and a member of the Board of Directors of C.H. Robinson. Dave is an accomplished executive, bringing over 30 years of experience at industry-leading companies and iconic brands across supply chains, middle-mile transportation, manufacturing, digital and customer service to C.H. Robinson. Dave previously served as Vice President, Ford Customer Service Division, and Vice President, Enthusiast Vehicles, for Ford Blue of Ford Motor Company. Prior to joining Ford, Dave served as Vice President, Amazon Transportation Services of Amazon.com, Inc. from 2017 to 2022. Before that, Dave held roles of increasing seniority at Caterpillar, Inc. from 2008 to 2016, ultimately serving as Senior Vice President Enterprise Systems. Earlier in his career, Dave spent 16 years at Harley-Davidson, Inc. from 1992 to 2008. Dave served as a member of the Board of Directors of Weyerhaeuser from 2015 to 2017. Dave received an MS in Engineering Management from the Milwaukee School of Engineering and a BS in Manufacturing Design from Bradley University. Dave is a member of the Board of Directors of The Brookings Institution, as well as a member of the Board of Directors of The Conservation Fund, a U.S. nonprofit organization with a dual charter to pursue environmental preservation and economic development. Dave is also a member of The Executive Leadership Council (ELC), an independent non-profit organization opening opportunities for the development of Black executives to positively impact business and our communities.
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2024 INVESTOR DAY 75 Speaker Bios Angie Freeman | Chief Human Resources and ESG Officer As Chief Human Resources & ESG Officer at C.H. Robinson, Angie Freeman is a member of the executive team and leads the company’s global talent and sustainability strategies, including recruiting, compensation, learning and leadership development, culture and talent brand, environmental impact, charitable giving, and diversity and inclusion. Angie leads teams around the world, including North America, Europe, Asia, Australia, and South America. In addition, Angie has served as the President of the C.H. Robinson Foundation, which along with the company has contributed approximately $30 million to charitable organizations. Angie has had a unique career with experiences leading a wide variety of areas, including Marketing and Public Relations, Corporate Communications, Investor Relations, and Government Affairs. During her career, Angie has also provided board leadership to several organizations. She currently serves on the Board of Directors for The Shyft Group (NASDAQ: SHYF), a manufacturer of commercial specialty vehicles. In addition, she serves on the Board of the University of North Dakota Alumni Association & Foundation, the Nistler College of Business and Public Administration Advisory Board, and the Gartner Global CHRO Board. Previous board experiences include serving as Chairman of LeadersUp, a national non-profit founded by Starbucks that supports increased employment opportunity for at-risk youth, and Community Health Charities of Minnesota. In addition, Angie has played an active role in numerous transportation and logistics industry organizations, including serving on committees within the National Industrial Transportation League, and the U.S. Chamber of Commerce Transportation & Infrastructure Committee. She is also a frequent public speaker on talent strategy and leadership topics. Angie is a graduate of the University of North Dakota, with a Bachelor of Arts in Political Science and a Bachelor of Science in Secondary Education, Summa Cum Laude, Phi Beta Kappa. She also holds a Master of Science degree in Comparative Politics, with Distinction, from the London School of Economics.
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2024 INVESTOR DAY 76 Speaker Bios Arun Rajan | Chief Strategy and Innovation Officer Arun Rajan serves as the Chief Strategy and Innovation Officer (CSIO) at C.H. Robinson. In this role, Arun oversees Robinson’s enterprise strategy and innovation process, from creation to implementation, and measures the company’s performance against strategic goals. He also leads research, analysis and competitive intelligence to inform major company decisions related to the portfolio, mergers and acquisitions and organizational transformation. In his prior position as Chief Operating Officer, Arun focused on accelerating digital transformation and delivering financial outcomes. He led the Product, Technology, Data Science and Analytics organizations with a mission to align business strategy, technological innovation, and execution to surpass the expectations of customers, carriers and shareholders by empowering employees with purpose-built technology. Arun joined C.H. Robinson in September 2021 as Chief Product Officer. Prior to joining Robinson, he held technology and operating leadership roles at innovative, digital-first companies that have transformed entire industries. Arun was the Chief Technology Officer of Whole Foods Market, part of Amazon, where he led the creation and execution of the technology strategy for a large-scale transformation from a legacy technology landscape and ways of working to modern engineering practices and a technology landscape that heavily leveraged AWS/Amazon technology. Arun also held leadership positions at customer-obsessed Zappos, through its acquisition by Amazon, serving as Chief Operating Officer from 2014 to 2019 and Chief Technology Officer from 2009 to 2013. As Zappos Chief Operating Officer, Arun was accountable for the financial performance of Zappos and was responsible for creating and operationalizing business strategy across all major functions including merchandising, marketing, technology and fulfillment with a focus on sustainable and profitable long-term growth. During his time as Zappos CTO, Arun led the creation and execution of Zappos’ technology and data strategy in the context of rapid business growth and scalability. Arun has been building and operating Internet based solutions since the mid-‘90s. His earlier career included roles as the CTO of One Kings Lane in San Francisco, Co-founder and CTO of New York City’s Intent Media, CTO of Travelocity Europe and LastMinute.com in London, and Co-Founder and CTO of ITRadar.com in Minneapolis.
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2024 INVESTOR DAY 77 Speaker Bios Michael Castagnetto | President of North American Surface Transportation Michael Castagnetto was named president of North American Surface Transportation (“NAST”) in January 2024. Prior executive positions with the company include Vice President, Customer Success in NAST from January 2023 – January 2024 and President of Robinson Fresh from December 2019 – January 2023. Michael began his career with C.H. Robinson in 2005 and has held various leadership roles including sourcing manager at Food Source, general manager of the tropical and dry vegetable categories, director of global supply and vice president of global sourcing. He holds a bachelor’s degree from Saint Mary’s College of California.
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2024 INVESTOR DAY 78 Speaker Bios Mike Short | President of Global Freight Forwarding Michael J. Short was named President of Global Freight Forwarding in May 2015. He joined C.H. Robinson through the acquisition of Phoenix International in 2012 and is an 18-year veteran of the global forwarding industry. Prior to being named President, Mike served as Vice President, Global Forwarding – North America. Prior to joining C.H. Robinson, he held a number of roles at Phoenix International, including Regional Manager, Sales Manager, and General Manager of the St. Louis office. He graduated from the University of Missouri in 1993 with a Bachelor of Science in Business.
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2024 INVESTOR DAY 79 Speaker Bios Damon Lee | Chief Financial Officer Damon Lee is the Chief Financial Officer for C.H. Robinson. Damon is an accomplished finance leader with over 25 years of progressive experience with S&P 200 companies. Damon has deep experience with Lean, continuous improvement and comprehensive strategy creation and execution. Damon has also built high performing teams, fostered collaboration, and developed personal connections that have enabled him to accelerate change. Before joining C.H. Robinson in July 2024, Damon served as the Vice President and CFO, Commercial Engines and Services, GE Aerospace. Prior to GE Aerospace, Damon served as Vice President of Finance, Electrical Distribution Systems (EDS) for Aptiv, a global technology company, where he provided financial leadership and controllership for a $6.5 billion operating division with 60 manufacturing facilities. Prior to Aptiv, Damon served as Vice President of Finance for Wyman Gordon, a division of Precision Castparts Corporation, a Berkshire Hathaway Company, where he had financial oversight and controllership of 30 manufacturing facilities for a $2.5 billion aerospace and industrial operating division. Damon received his MBA and BS in Finance from Murray State University. Outside of work, Damon enjoys spending time with his family and watching University of Kentucky basketball.
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2024 INVESTOR DAY Non-GAAP Reconciliations
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2024 INVESTOR DAY 81 Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring and loss on divestiture is a similar non-GAAP financial measure to adjusted operating margin, but also excludes the impact of restructuring and loss on divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring and loss on divestiture are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring and loss on divestiture are presented below: Nine Months Ended September 30, $ in thousands 2024 2023 Total Revenues $ 13,540,300 $ 13,374,556 Income from operations 485,342 407,178 Operating margin 3.6% 3.0% Adjusted gross profit $ 2,080,391 $ 1,985,985 Income from operations 485,342 407,178 Adjusted operating margin 23.3% 20.5% Adjusted gross profit $ 2,080,391 $ 1,985,985 Adjusted income from operations(1) 574,941 449,495 Adjusted operating margin - excluding restructuring and loss on divestiture 27.6% 22.6% 1. In the Nine Months Ended September 30, 2024 we incurred restructuring expenses of $20.3 million related to workforce reductions and $69.3 million of other charges, which includes a $57.0 million loss on the planned divestiture of our Europe Surface Transportation business, an impairment of internally developed software, and charges related to reducing our facilities footprint. In the Nine Months Ended September 30, 2023, we incurred restructuring expenses of $19.7 million related to workforce reductions and $22.6 million of other charges, primarily related to the divestiture of our operations in Argentina. Non-GAAP Reconciliations
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2024 INVESTOR DAY 82 Our adjusted income (loss) from operations is a non-GAAP financial measure. This non-GAAP measure is calculated excluding the impact of restructuring and losses from divestitures. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations. The reconciliation of this non-GAAP measure is presented below (in thousands): Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2023 Three Months Ended December 31, 2023 Nine Months Ended September 30, 2024 Twelve Months Ended September 30, 2024 Global Forwarding Income (loss) from operations $ 449,364 $ 85,830 $ 22,576 $ 160,649 $ 183,225 Severance and other personnel expenses 3,831 3,817 (925) 5,855 4,930 Other selling, general, and administrative expenses 3,174 18,158 (3,084) 2,448 (636) Total adjustments to income (loss) from operations(1)(2)(3)(4) 7,005 21,975 (4,009) 8,303 4,294 Adjusted income from operations $ 456,369 $ 107,805 $ 18,567 $ 168,952 $ 187,519 1. The Twelve Months Ended December 31, 2022 includes $7.0 million of restructuring charges related to workforce reductions and reprioritizing our technology investments. 2. The Twelve Months Ended December 31, 2023 includes $22.0 million of restructuring charges mainly related to divesting our operations in Argentina. 3. The Three Months Ended December 31, 2023 includes $4.0 million of favorable restructuring adjustments due to amounts settling for an amount different than originally estimated related to divesting our operations in Argentina. 2. The Nine Months Ended September 30, 2024 includes $8.3 million of restructuring charges mainly related to workforce reductions. Non-GAAP Reconciliations