Investor PresentationMay 2013May, 2013

Forward Looking Statements

This presentation contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act including with respect to revenue earnings per share margins cash flows debt levelsLitigation Reform Act, including with respect to revenue, earnings per share, margins, cash flows, debt levels, expenses, capital expenditures, business and financial strategies, management’s plans and objectives for future performance and the time by which objectives will be achieved, and future economic, industry and market conditions or performance. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. All remarks made during our financial results conference call will be current at the time of the call and we undertake no obligation to update the replay. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

These forward-looking statements are based on the company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are general economic and business conditions; industry trends, including changes in the costs of services from rail, motor, ocean and air transportation providers; our success in implementing our business, operational and commercial strategies; competitive pressures; shipping volumes; the loss of one or more of our major customers; and weather related issues and service disruptions affecting our rail and motor transportation providers. Additional information about these and other factors that could affect the compan 's b siness is set forth in the compan 's ario s filings ith the Sec rities and E changeaffect the company's business is set forth in the company's various filings with the Securities and Exchange Commission, including those set forth in the company's annual report on Form 10-K for the year ended December 31, 2012. Our actual consolidated results of operations and the execution of our business strategy could differ materially from those expressed in, or implied by, the forward-looking statements contained in this presentation. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified by the cautionary statements in this presentation and in our SEC filings.

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statements in this presentation and in our SEC filings.

Topics Covered

• Business Overview– Pacer International Company Overview– Intermodal Segment

Logistics Segment– Logistics Segment

• Financial Update – 1Q 2013• Summary 2013 FocusSummary 2013 Focus

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Business Overview

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Pacer International Overview

• Founded in 1997 through the acquisition of several logistics companies and the APL Linertrain business, which was renamed Pacer Stacktrain

• Leader in North American Intermodal transportationLeader in North American Intermodal transportation

• Headquartered near Columbus, OH

• ~ 900 employees in our global operationsp y g p

• Comprehensive transportation and logistics portfolio

• Best-in-class service delivery model

• Publically traded (PACR on NASDAQ)

• Financially sound and well positioned for growth

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Pacer Portfolio

Pacer

Intermodal ($1.2B) Logistics ($0.2B)

• International freightDoor to door intermodal"Retail"  International 

Freight Forwarding

• Warehousing consolidation

• International freight forwarding and shipping (Ocean World Lines & RF International)

• Transportation primarily for

• Door-to-door intermodal movements provided to beneficial cargo owners (BCOs)

Automotive Warehouse, Port, & Transload Services

• Inland intermodal for • Brokered truck-based freight

• Warehousing, consolidation, deconsolidation, and transloading

Auto OEMs and parts manufacturers

• Mexico cross-border network manager for Union Pacific

Ocean Carrier Services  Highway Brokerage

• Inland intermodal for incoming / outgoing ISO containers for Ocean Carriers

Brokered truck based freight movements

• Drayage and repositioning • Supply chain managementDrayage Logistics Solutions

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• Drayage and repositioning services sold externally and to support other lines of business

Supply chain management solutions

One Pacer VisionIntegrated Transportation Solutions

TRACK & TRACE

WAREHOUSE WAREHOUSE Los Angeles C l bWAREHOUSE, CUSTOMS

WAREHOUSE, CUSTOMS

RAIL DRAYAGE

Los Angeles ColumbusShanghai

OCEAN AIR HIGHWAYRAIL DRAYAGE

INTERMODAL

Portfolio of Transportation Solutions

M lti d i t ti l ( i )

The Promise

• Multi-mode international (ocean, air)

• Multi-mode domestic (intermodal, highway)

• Long Term Sector Attractiveness (Intermodal and International)

+ Overlapping Customer Bases• Value added services (trans-load,

warehouse, customs, visibility)

• End-to-end transportation capability for l b l l h i

+ Portfolio Differentiator

= Profitable Growth

A Differentiated Portfolio of Transportation Solutions

global supply chains

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Pacer Intermodal Segment

Intermodal Segment ($1.2B)• "Retail" (Door‐to‐Door)• Automotive• Automotive• Ocean Carrier Services• Drayage

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The Pacer Service Differentiator

• Service is the foundation for Intermodal Service Levels

72%

95% 95% 92% 94%Pacer's success

• Pacer service starts with railroad investments in intermodal

Pacer

71%66% 67%

72%investments in intermodal capacity

• Pacer extends rail service levels Railroads

2Q11 4Q11 2Q12 4Q12to best in class logistics levels– Rails: 70% on time within 1 day

vs. published scheduleCustomer / Industry Accolades– Pacer: >90% on time within 2

hours vs. customer want

• Service becomes a tool for

Customer / Industry Accolades2012 Business Partner of the year"- Proctor & Gamble

O Caccount retention and growth

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2012 Best Overall Carrier- Sony Foxconn

Intermodal Market Development

• Most mature intermodal market • Grow with the market at acceptable E t / W t

Market View Our Focus

• Modal shift opportunities on West Coast, but growth is dependent on imports and ocean carrier IPI Rates

• Panama Canal expansion not t d t h i ifi t i t

margins• Optimize network fit • Leverage bundled Pacer Intermodal and

Logistics solutions for inbound trans-l d f i ht

East / WestTrans‐con

expected to have a significant impact load freight

Mexico• Large modal shift opportunities• Near-sourcing continues

• Leverage 20+ years and leading position in cross-border IntermodalMexico g

– Auto production expanding … expect 8% unit growth in 2013

• Above average market growth

• Conversion of Auto business to direct• Crescent corridor with NS / KCS• Commodity focused selling

East

• Heavy rail Intermodal investments drives rail service improvements

• Significant modal shift opportunities• Intermodal rate advantage of 15%

• Focused initiatives for Eastern Core lanes and modal conversion

Directed network sellingPartner with railroads

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Intermodal rate advantage of 15% on average over truckload

Partner with railroads• Continue expanding non-core lanes as

rail infrastructure and service improves

Mexico Intermodal DevelopmentSoutheast to Mexico Connection

New Mexico to SE Corridor• New Intermodal NetworkNew Intermodal Network

between Southeast and Mexico

• New terminals at– Rossville, TN (Memphis)– Birmingham, AL– Greencastle, PA

(Ch b b )(Chambersburg)• Creates more than 30 new

intermodal lanesImproves service between• Improves service between Mexico and the Southeast

– 1 day transit reduction– Competitive vs. truck

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Competitive vs. truck– Expands TMXU and Pacer

service offerings

Intermodal Margin Improvement

• Initiatives in place for all margin elements

Margin El t

% of C t

Ability to I t K I iti ti

• Heaviest focus on those Pacer can best control

Elements Cost Impact Key Initiatives

Price ‐ Med • Sales Effectiveness• Commercial Terms

Rail >50 Med • Rail ContractsRail 50 Med Rail Contracts• Bid Collaboration

Dray 20 – 30 High • Carrier Mix• Street Efficiency• Accessorial Management• Accessorial Management

Equipment < 10 Med • Equipment Utilization

Network < 10 High • Network Balance

SG&A < 10 High • "Lean" Processes• Processing and Decision Support Systems

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Pacer Logistics Segment

$Logistics Segment ($0.2B)• International Freight Forwarding• Warehouse, Port, & Transload ServicesWarehouse, Port, & Transload Services• Highway Brokerage• Logistics Solutions

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Logistics Segment Value Proposition

• Long Term GrowthAtt ti k t l t

Long Term

Growth

– Attractive markets long term– Profitable on a stand alone basis

C t B

Value

• Customer Base– More touch points for existing

customersE t i t f tPortfolio

DifferentiationCustomer

Base– Entry point for new customers

• Portfolio Differentiation– Full range of global door-to-door

transportation solutions– Connects to Intermodal, Ocean

Carrier and Drayage offerings

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Carrier, and Drayage offerings

Pacer Logistics Transformation

IntermodalLiquidity 

• Debt Agreements (2009, 2010, 2012), Cash Flow, Debt Free (2011+)

Logistics

Organization and Incentives• Business Leadership:  Commercial, Finance, Capacity, Logistics• Functional Excellence: Sales, Network, Operations, Capacity, Logistics• Global presence (China WOFE, China Class A, China offices, SE Asia)

Customer Service• Logistics (95‐98%, +/‐ 2 hours) mindset

Carrier Relationships• Ocean Carriers

• Air Carriers

Systems• Highway Brokerage• International Freight Forwarding

International Freight Forwarding

SG&A• Rightsizing• Processing Efficiency• Volume Leverage

• Volume Leverage

= completed (announced phases) = in process / planned 15

Pacer Freight Forwarding Global Network

Pacer's Ocean World Lines and RF International have global presence with over 200 employees in more than 20 owned-offices

USA Europe Asia

presence with over 200 employees in more than 20 owned-offices in Europe, Asia and N. America, and an international network of top-tier agents worldwide.

Chicago

Cincinnati

Houston

USA Hamburg

Berlin

London

Europe Asia Hong Kong

Ningbo

Shanghai

Long Beach

Miami

New Orleans

g

Shenzhen

Qingdao

Singapore

New York (HQ)

Norfolk

Phoenix

San Francisco

Xiamen

Pacer Agent Office

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San Francisco

Seattle

activities. Pacer Freight Forwarding China Development

• Pacer History in ChinaHeilongjiang

Jiling

Liaoning

– Agents in place for years– Hong Kong opened (Aug-09)– Shanghai opened (Sep-09)

Class B licenses (2011)

Qinghai

Inner Mongolia

Ningxia ShandongGansu

JiangsuShaanxi Henan

Hebei

Beijing

Shanxi

Tianjin

– Class B licenses (2011) … capability and growth limitations

• Development Plans (2013+)Cl A li (1Q13)

Qingdao

Sichuan

HunanChongqing

JiangxiZhejiang

Jiangsu

Hubei

Fujian

Anhui

Guizhou

– Class A licenses (1Q13)– Quick build experienced team

(2Q13+)– Full suite of global door-to-door

Ningbo

Shanghai

Yunnan TaiwanGuangxi

Hainan

Guangdong

gtransportation solution

• Ocean and air freight• P.O. management

– Cross sell and tie-in with

Xiamen

Hong KongShenzen

– Cross sell and tie-in with domestic Intermodal and Highway

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Pacer Highway

• Complements Intermodal and Freight Forwarding businesses

Service Offerings Initiatives

• Completes the portfolio of multi-modal transportation solutions

• Truckload• LTL• JIT

• Enhanced IT platform (2012 / 2013) – Mercurygate – a proven industry leader

• Brokerage Sales Model (2012 / 2013)

• Transactional / Flex• Dedicated• Service recovery

g ( )– Historically mixed Intermodal / Highway– New dedicated Brokerage sales (2012)

• High energy, high incentives culture• Prove concept, gain tractionSe ce eco e y

• 6,000+ carrier relationships

p , g– Scale up (2013)

• Carrier Development (2012 / 2013)– Mid-level carriers– Dedicated fleets– Mexico presence

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Financial Overview

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Revenue

• 1Q13 Revenue down 8% to $233 million– Domestic Intermodal (5%) on 2% lower volume; Logistics (14%)( %) % ; g ( %)

• 2013 Guidance Provided: $1.000 – $1.100B +2% at midpoint– Intermodal volume growth in 2H, Logistics grows throughout year

$2,000

$2,500 AutomotiveOcean Customer TransitionWholesale E‐W Big BoxInternational Military

1st Quarter

$

92 18  77 

387 

$1,503 $1,479 $1,415

$1,000

$1,500

$1,392  $1,402 $1,028 

$1,000 to

$1,100$252  $233 

94 

$346$233

$0

$500

2010 2011 2012 2013 1Q12 1Q13

(8%)

2010 2011 2012 2013 1Q12 1Q13

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$s in millions • Adjusts GAAP revenues to ongoing revenues for:‐ Intermodal Auto adjusted to net revenue (reflect 2013 new fee structure with railroad)‐ Ocean customer transition (volume moved direct to railroads 4Q11)‐ Intermodal wholesale east‐west big box business (transitioned away 4Q09 thru 3Q10)‐ International military (exited business in late 2010)

Earnings Per Share

• 1Q13 Diluted EPS of $0.04– Segment Income up double digits: Intermodal +20%, Logistics +13%g p g , g

• 2013 Guidance Confirmed: $0.25 – $0.35 …+150% at midpoint– 30-40% of earnings coming in 1H

$$0.25

$0.05 

$0.40 

$0 20

$0.401st Quarter

$0.15 $0.35 

$0.12 to

$0.35  ($0.01)$0.04 

($0.20)

$0.00

$0.20

($0.60)

($0.60)

($0.40)

2009 2010 2011 2012 2013 1Q12 1Q132009 2010 2011 2012 2013 1Q12 1Q13

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200, 2010 adjusted, as reported in 2011 10K *  2011 adjusted GAAP results of $0.35 for:‐ 2011 gain on railcar sales (‐$4.8m income / ‐8 cents EPS)‐ 2011 deferred tax adjustment (+$1.2m income / +3 cents EPS)

*  2012 GAAP results unadjusted, as reported in 2012 10K

Balance Sheet

• 1Q13: remained debt free with $28m cash– Operating cash flow +$10.6m; Capital Expenditures of $2.8mp g $ ; p p $

• 2013: maintain debt free position, $40-45m cash on hand

$40.0to$

$30

$40 1st Quarter

Net Debt(Debt) + Cash

($20.2)($9.2)

$24.0  $20.2 

to$45.0 

$19.1 $27.7 

($10)

$0

$10

$20

($39.0)

($50)

($40)

($30)

($20)

($50)

2008 2009 2010 2011 2012 2013 1Q12 1Q13

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Guidance

• Revenue: $1.000B - $1.100B$1,600

• (3%) / +7% (midpoint +2%)– Intermodal volumes to pick up in the$1,415

$1,000t

$387 

$600

$800

$1,000

$1,200

$1,400Intermodal volumes to pick up in the second half, coming out of bid season

– Logistics revenues grow throughout the year from new sales team and Asia build

$1,415

a$1,028  to

$1,100 

$0

$200

$400

$600

2012 2013

• EPS: $0.25 - $0.35 • +108% / +193% (midpoint +150%)– Intermodal margins remain consistent

with current quarter as volumes increase in 2H$0.30

$0.35

$0.40

in 2H– Logistics margins remain consistent for

balance of year– SG&A consistent with 1Q

$0 12

$0.25to

$0.35

$

$0.10

$0.15

$0.20

$0.25

$0.30

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– Expect 30-40% earnings in 1H13

a   Adjusted 2012 GAAP Revenue of $1,028 for Intermodal Auto wholesale revenue to net revenue to eliminate rail transportation costs

$0.12

$0.00

$0.05

2012 2013

Our Focus

• Continue Double-Digit Domestic Intermodal GrowthProfitable network focused growth– Profitable network-focused growth

– Focus on truck conversion and Mexico and Eastern markets• Transform Logistics Segment for Profitable Growth

– New organization, incentives, product offerings– Contributes on a stand alone basis and complements Intermodal

• Retain a Competitive Cost Structure– Drayage capacity/efficiency: optimized mix (76% in-house now)– Network optimization, equipment utilization, empty miles– SG&A scalingSG&A scaling

• Enhance Pacer’s Core: People, Processes, and Technologies– Intermodal drayage, retail, and decision support systems

Highway brokerage organization model and operating system– Highway brokerage organization model and operating system– International organization model and systems

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Our Vision

To be the customers’ preferred choice, earning customer confidence every day byearning customer confidence every day by reliably delivering best-in-class door-to-door transportation services and logistics p gsolutions.

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Investor Contacts

John HaffertyEVP and Chief Financial Officer(614) 923-1987

Steve MarkoskyVP, Financial Planning & Analysis and Investor Relations(614) 923-1703

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