ethics • empowerment • execution
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ethics • empowerment • execution. Presenter 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 management’s expectations. - PowerPoint PPT PresentationTRANSCRIPT
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1 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
ethics • empowerment • execution
Presenter 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 management’s expectations.
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2 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• A leading third-party provider of transportation,distribution and other logistics services
• One of the world’s 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
WHO IS C.H. ROBINSON WORLDWIDE?
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3 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
Service Lines
Percentageof Total Gross Profits
Transportation 88%
Sourcing 8%
Information Services 4%
C.H. ROBINSON SERVICE LINES
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4 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
TRUCKING
TRANSPORTATION
L O G I S T I C S
S U P P L Y C H A I N
B 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:
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5 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• 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
WHY IS THE 3PL INDUSTRY GROWING?
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6 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• Truckload
• LTL (pallet to partial)
• Intermodal
• Ocean / NVOCC
• Air
• Customs Brokerage
• Transportation Management
CHRW GLOBAL TRANSPORTATION & LOGISTICS SERVICES
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7 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• Procurement, distribution, and marketing of fresh produce
• Customers: grocery retailers, foodservice companies, wholesalers, and repackers
SOURCING
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8 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
Information Services• Carrier services: T-Chek Systems– Fuel card – Fuel, phone and cash
– Fuel tax management
– Online information services
INFORMATION SERVICES
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9 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
Carrier/SupplierRelationships
Business Processes & Technology
PeopleCustomerRelationships
CORE COMPETENCIES
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10 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
FOOD ANDBEVERAGE
RETAIL
PAPER AND PAPERRELATED PRODUCTS
MANUFACTURING
OTHER
40%
12%
24%9%
15%
Top 100 Customers Represent 34% of Total Gross Profit
MAJOR CUSTOMERS: INDUSTRIES SERVED IN 2006
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11 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
Spot MarketTransactional
Core CarrierDesignation
ModeManagement
Dedicated,SingleSource
Value-addedLogistics Services
Facility Management
On-sitePersonnel
LogisticsInformation
Provider
SupplyChain Mgmt
STRONG CUSTOMER RELATIONSHIPS
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12 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
Percentage of 2006 CHRW Shipments, by Carrier Size
40,000 Contract Carriers in North America
MEDIUM CARRIERS (100-399 TRACTORS)
LARGE CARRIERS (OVER 400 TRACTORS)
SMALL CARRIERS (LESS THAN 100 TRACTORS)
77%10%13%
AGGREGATING THE NATION’S CARRIER BASE
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13 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• 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
MOTIVATED AND CREATIVE EMPLOYEES
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14 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• 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
BUSINESS PROCESSES AND TECHNOLOGY
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15 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• North American market penetration of current services• Develop new third-party logistics services• Build continental branch networks• Strengthen global forwarding network
Global Service Provider
CHRW LONG-TERM STRATEGIC GOALS
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16 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
(Gross profits in millions)
AsiaSouth AmericaEuropeInfo. ServicesN.A. SourcingN.A. Misc.N.A.-based Ocean/AirN.A. Intermodal
N. A. Truckload& LTL
YEARBRANCHESEMPLOYEES
$179.1
1996108
1,665
1997119
1,925
1998120
2,205
1999131
3,125
2000137
3,677
2001139
3,770
2002150
3,814
2003158
4,112
2004176
4,806
2004176
4,806
2005196
5,776
2006214
6,768
$1,082.5
CHRW IS A GROWTH COMPANY
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17 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
GROSS PROFIT GROWTH
$0
$200
$400
$600
$800
$1,000
$1,200
'97 '98 '99 '00 '01 '02 '03 '04 '05 2006 YTD'06
YTD'07
19.7% 10-year CAGR
$206.0
$1,082.5
(dollars in millions)
$804.0
$921.014.6%
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18 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
'97* '98 '99 '00 '01 '02 '03 '04 '05 2006 YTD'06
YTD'07
23.6% 10-year CAGR
$56.7
* Excludes unusual charges and expenses related to the company’s initial public offering2000-2003 results restated for adoption of SFAS 123
$417.8
INCOME FROM OPERATIONS(dollars in millions)
$307.5
$376.822.6%
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19 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
* Excludes unusual charges and expenses related to the company’s initial public offeringAdjusted for December 2000 stock split and October 2005 stock split
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
'97* '98 '99 '00 '01 '02 '03 '04 '05 2006 YTD'06
YTD'07
22.9% 10-year CAGR
$0.22
2000-2003 results restated for adoption of SFAS 123
$1.53
EPS FROM CONTINUING OPERATIONS(in dollars)
$1.11
$1.3723.4%
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20 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
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
September 30, 2007
CHRW SUMMARY BALANCE SHEET DATA(dollars in millions)
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21 C. H. ROBINSON WORLDWIDE, INC. ethics • empowerment • execution
• History of consistent growth in revenuesand profitability
• Strong balance sheet and free cash flow
• Motivated management and employees-aligned with the goals of shareholders
C.H. ROBINSON WORLDWIDE