Title: Offering Summary
1Presenter comments may contain forward-looking
statements, which are subject to risk and
uncertainties. Our SEC filings contain
additional information about factors that could
cause actual results to differ from managements
expectations.
2WHO IS C.H. ROBINSON WORLDWIDE?
- A leading third-party provider of
transportation,distribution and other logistics
services - One of the worlds largest non asset-based
transportation companies with 2006 gross
revenues of 6.6 billion - 7,150 committed, service-driven employees
- More than 25,000 customers
- Over 45,000 carriers under contract worldwide
- 218 branch offices worldwide
3C.H. ROBINSON SERVICE LINES
Percentage of Total Gross Profits
Service Lines
- Transportation 88
- Sourcing 8
- Information Services 4
4TRUCKINGTRANSPORTATIONL O G I S T I
C SS U P P L Y C H A I
NB U S I N E S S S T R A T E G
Y
WHAT IS A THIRD PARTY LOGISTICS (3PL) COMPANY?
DEFINITIONS VARY
5WHY IS THE 3PL INDUSTRY GROWING?
- Flexibility and service
- Fixed costs become variable costs for shippers
- Leveraged economies of scale
- Immediate access to implemented information
technology - Broad logistics knowledge, with industry
specialists - Anticipated continuation of capacity shortages
6CHRW GLOBAL TRANSPORTATION LOGISTICS SERVICES
- Truckload
- LTL (pallet to partial)
- Intermodal
- Ocean / NVOCC
- Air
- Customs Brokerage
- Transportation Management
7SOURCING
- Procurement, distribution, and marketing of
fresh produce - Customers grocery retailers, foodservice
companies, wholesalers, and repackers
8Information Services
INFORMATION SERVICES
- Carrier services T-Chek Systems
- Fuel card Fuel, phone and cash
- Fuel tax management
- Online information services
9CORE COMPETENCIES
Carrier/Supplier Relationships
Customer Relationships
People
Business Processes Technology
10MAJOR CUSTOMERS INDUSTRIES SERVED IN 2006
9
40
24
12
15
Top 100 Customers Represent 34 of Total Gross
Profit
11STRONG CUSTOMER RELATIONSHIPS
Logistics Information Provider
Value-added Logistics Services
Spot Market Transactional
Mode Management
Facility Management On-site Personnel
Supply Chain Mgmt
Dedicated, Single Source
Core Carrier Designation
12Percentage of 2006 CHRW Shipments, by Carrier
Size
AGGREGATING THE NATIONS CARRIER BASE
77
10
13
40,000 Contract Carriers in North America
13MOTIVATED AND CREATIVE EMPLOYEES
- Empowered to serve customers
- Compensation systems support growth and variable
cost model - Average tenure of managers is 11 years with the
company - Compensation and equity incentives align
management with goals of shareholders
14BUSINESS PROCESSES AND TECHNOLOGY
- All North American operations are networked to
provide consistent, real-time information - Core operating systems are internally developed
- Continuous improvement and upgrade to enhance
productivity and functionality - Increasing levels of customer and carrier
electronic connectivity
15CHRW LONG-TERM STRATEGIC GOALS
- North American market penetration of current
services - Develop new third-party logistics services
- Build continental branch networks
- Strengthen global forwarding network
Global Service Provider
16CHRW IS A GROWTH COMPANY
(Gross profits in millions)
1,082.5
Asia South America Europe Info. Services N.A.
Sourcing N.A. Misc. N.A.-based Ocean/Air N.A.
Intermodal N. A. Truckload LTL
179.1
YEAR BRANCHES EMPLOYEES
1996 108 1,665
1997 119 1,925
1998 120 2,205
1999 131 3,125
2000 137 3,677
2001 139 3,770
2002 150 3,814
2003 158 4,112
2004 176 4,806
2004 176 4,806
2005 196 5,776
2006 214 6,768
17GROSS PROFIT GROWTH
(dollars in millions)
1,082.5
14.6
921.0
804.0
19.7 10-year CAGR
206.0
18INCOME FROM OPERATIONS
(dollars in millions)
417.8
22.6
376.8
307.5
23.6 10-year CAGR
56.7
Excludes unusual charges and expenses related
to the companys initial public
offering 2000-2003 results restated for adoption
of SFAS 123
19EPS FROM CONTINUING OPERATIONS
(in dollars)
1.53
23.4
1.37
1.11
22.9 10-year CAGR
0.22
Excludes unusual charges and expenses related
to the companys initial public offering Adjusted
for December 2000 stock split and October 2005
stock split
2000-2003 results restated for adoption of SFAS
123
20CHRW SUMMARY BALANCE SHEET DATA
(dollars in millions)
September 30, 2007
- Cash and Investments 410.8
- Current Assets 1,369.0
- Total Assets 1,785.0
- Current Liabilities 748.7
- Stockholders Equity 1,026.5
- Long Term Debt 0.0
21C.H. ROBINSON WORLDWIDE
- History of consistent growth in revenuesand
profitability - Strong balance sheet and free cash flow
- Motivated management and employees-aligned with
the goals of shareholders