Marten Transport : Q2 - Quarterly Earnings

Q2 2019

MRTN de Mexico

Disclosure

This presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "estimates," or similar expressions are intended to identify these forward-looking statements. These statements are based on Marten's current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. For further information, please refer to Marten's reports and filings with the Securities and Exchange Commission.

Operating Results

Operating Results Comparison

Net income and diluted earnings per common share used to calculate the TTM percentage change below exclude a $56.5 million deferred income tax benefit in the fourth quarter of 2017.

	Percentage		Percentage		Percentage
	Change		Change		Change
	Three Months		Six Months		Trailing Twelve
	Ended		Ended		Months Ended
	June 30,		June 30,		June 30,
	2019 vs. 2018		2019 vs. 2018		2019 vs. 2018
Operating revenue
7.6%	7.1%	10.5%
Operating income	9.4%	18.4%	28.8%
Net income	10.9%	19.6%	47.5%
Diluted earnings per common share	11.0%	19.7%	47.4%

"You can't build a reputation on what you were going to do." -Henry Ford

Marten's Strategic Vision

A growing business platform network designed to provide the

best, most-efficient service for Marten's customers

Transportation Service Solutions for Today and into the Future

• Truckload Business - regional and OTR operating from 15 regional service
  centers - including dry van operationsout of our Kansas City, Atlanta, Phoenix and Indianapolis facilities - $96.0 million Q2 '19 revenue (45%)
• Dedicated Business - customized solutions tailored to individual customers' requirements utilizing refrigerated trailers, dry vans and other specialized equipment - $67.0 million Q2 '19 revenue (32%)
• Brokerage Business - surge flexibility to service our customer needs beyond Marten's assets - $28.5 million Q2 '19 revenue (13%)
• Intermodal Business - refrigerated TOFC with extended dray service
  from Marten's truck network - BNSF intermodal transitioning to refrigerated
  COFC in 2H '19 - $20.6 million Q2 '19 revenue (10%)
• MRTN de Mexico Business -door-to-door service between Mexico and each of the U.S. and Canada utilizing our Mexican partner carriers - $15.7 million Q2 '19 revenue (within truckload and brokerage segments)

"Transformation is a process, not an event." - "Leading Change" by John P. Kotter

Marten's Vision and Plan -

Regional Operating Centers Network

THE FOUNDATIONof Marten's service and growth

A $102 million expansion since '09 paid for through challenging times

• All facilities acquired, replaced or updated since '09
• McAllen is the only leased facility
• Currently LED at all facilities - all solar in '20
• $82.8 million in cash and no debt at June 30, 2019

Mondovi, WI Corporate Office

Portland, OR
	Mondovi, WI
		Carlisle, PA
	Indianapolis, IN
Jurupa Valley, CA	Kansas City, KS	Richmond, VA
Phoenix, AZ
	Memphis, TN
Otay Mesa, CA	Dallas, TX	Atlanta, GA

Laredo, TX

Tampa, FL

McAllen, TX

Marten's Vision and Plan -

Truckload and Dedicated Tractor Growth

Continued Organic Tractor Growth

3,100

2,900

2,700

2,500

2,300

2,100

1,900

1,700

12/13

3/14

6/14

9/14

12/14

3/15

6/15

9/15

12/15

3/16

6/16

9/16

12/16

3/17

6/17

9/17

12/17

3/18

6/18

9/18

12/18

3/19

6/19

We have increased our fleet by 295 tractors, or 11.1%, since Dec. 31, 2018.

Marten's Vision and Plan for Future-

Dedicated Growth

Revenue, excluding fuel surcharges, has increased 374% from Q2 '14 to Q2 '19

Load Growth

350,000

300,000						16%
			51%	4%
250,000
200,000			77%				7%
150,000							9%
100,000
50,000
0
2014	2015	2016	2017	2018		Q2 '18 Q2 '19 1H '18 1H '19

$200 $175 $150 $125 $100 $75 $50 $25 $0

Revenue Growth

(excluding fuel surcharges)

In millions

22%

37% 5%

89%

17%

19%

2014

2015

2016

2017

2018

Q2 '18 Q2 '19 1H '18 1H '19

Marten's Vision and Plan -

Brokerage Growth

Provides capacity to surge and cover all of Marten's customers' freight needs

Load Growth

Revenue Growth

(including fuel surcharges)

In millions

60,000

$90

23%

50,000	31%	3% (3%)	6%

$80 $70

25% (7%) 6%

40,000

31%

30,000

$60 $50

36%

20,000	34%

10,000

$40 $30 $20

41%

0

2014

2015

2016

2017

2018

Q2 '18 Q2 '19

1H '18

1H '19

$10 $0

2014

2015

2016

2017

2018

Q2 '18

Q2 '19

1H '18

1H '19

Decentralization of brokerage operations for customer capacity solutions Focus on maintaining growth and margins in volatile market environment

Marten's Vision and Plan -

TOFC Intermodal

Initiated temperature-controlled TOFC in '05

Marten is the largest truckload intermodal temperature-controlled carrier with BNSF - Initiating

refrigerated COFC with BNSF in 2H '19

Expanded intermodal with longer drayage supported by Marten's regional business platform

											Loads
45,000										6%
							12%														$90
40,000																					$80
16%	1%
35,000																$70
30,000																							$60
25,000																				(17)%	$50
20,000
																						$40
15,000										(21)%				$30
10,000
																						$20
5,000																							$10
0																								$0

Revenue(excluding fuel surcharges)

In millions

22%

14%- % 9%

(11)%

(18)%

2014

2015

2016

2017

2018

Q2 '18 Q2 '19 1H '18

1H '19

2014

2015

2016

2017

2018

Q2 '18 Q2 '19 1H '18

1H '19

Increasing Revenue Equipment Costs

Average Monthly Depreciation

					Tractors												Trailers	$479
$1,700
$1,634	$1,659			$480										$471
$1,650						$456
$1,599							$460
$1,600	$1,570									$440		$433
$1,550									$424
$1,528
											$420
$1,500	$1,462
													$400
$1,450																$387
$1,400																$380
$1,350																$360
$1,300																$340
		Dec. '14 Dec. '15 Dec. '16 Dec. '17 Dec. '18 June '19			Dec. '14 Dec. '15 Dec. '16 Dec. '17 Dec. '18 June '19

The monthly depreciation of tractors and trailers added in Q2 '19 was 10% and 16% higher than the depreciation of tractors and trailers traded in Q2 '19.

Trailer depreciation cost increased as fleet transitioned to new, more-costly CARB refrigeration units - all

trailers now have new "evergreen" CARB refrigeration units.

Tractor depreciation cost increases as fleet transitions to automatic transmissions.

Tariff increases to the cost of steel and aluminum has increased the price of tractors and trailers.

Tractor and trailer depreciation cost increases will be at a reduced rate in 2019. Our trailer fleet has fully converted to the CARB units and our tractor fleet will fully convert in 2019 to the automatic transmissions.

Net Capital Expenditures

In millions

$160

$140

$145

$125.0

$120

$97.2

$95.3

$101.3

$100

$80

$60

$40

$20

$0

2015

2016

2017

2018

2019 Estimate

Increased capital expenditures in '19 driven by our tractor and trailer fleet growth

Marten's Vision and Plan Initiatives

Marten People - Data-Driven

Measurement and Disciplined Management

• Marten people initiate and implement our strategic vision and key strategic initiatives
• Marten people makereal-timedata-driven decisions for improved supply chain productivity
• "The more they know, the more they'll understand. The more they understand, the more they'll care. Once they care, there's no stopping them."-Sam Walton
• Marten's culture: visible costs and operating data to improve and add value daily - we measure and manage as a team
• "Great things in business are never done by one person. They're done by a team of people."-Steve Jobs

Growth in Quarterly Operating Income

within our Dedicated, Intermodal and Brokerage Businesses

Since 2014

Dedicated Operating Income

In thousands

$8,000

437%

$7,000

317%

$3,300

396%

$2,800

Intermodal Operating Income

In thousands

243%

218%

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

157%

126%$2,300

$1,800

$1,300

$800

$300

($200)

>100%

Q1Q2

Q3

Q4Q1

Brokerage Operating Income

In thousands

Q2

Q3

Q4

Key:

2014

2015

2016

2017

$2,800

$2,400

$2,000

$1,600

$1,200

245%

339%

75%

127%

2018

2019

• increases are from '14 to '19 forQ1-Q2 and from '14 to '18 for Q3-Q4

$80 0

$40 0

$0

Q1

Q2Q3

Q4

Operating Results through Prior Weak Freight Environment

The following four slides show our positive operating results in 2015 - 2017

-- overcoming a weak rate environment. The strong improvement in

2018 and in 1H '19 was not enhanced by reduced comps.

"Cass Truckload Linehaul Index"

July 12, 2019

By Broughton Capital

Improvement in Marten's Revenue Excluding Fuel Surcharges

Q2 '19 was Best Quarterly Operating Revenue in our History

In millions

$800

9%

$700			8%
		2%
4%
$600	8%

$500

11%

5% 3%3%

(2)%

$400

$300

8%

$200

$100

$0

10%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018	TTM	TTM	Q2 '18 Q2 '19 1H '18 1H '19
	June	June
	'18	'19

Improvement in Marten's Operating Income

Q2 '19 was Best Quarterly Operating Income in our History

In millions

$80				29%
$70				24%
		12%*	2%*(2)%
$60
13%	(2)%
$50
7%
	22%
$40				18%
20%
$30				9%
$20
$10
$0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018	TTM	TTM	Q2 '18 Q2 '19 1H '18 1H '19
	June	June
	'18	'19

*Excluding a gain on disposition of two facilities in 2015

94%

93%

92%

91%

90%

89%

88%

87%

Improvement in Marten's Operating Ratio, Net of Fuel S/C

2018 - Best Over Last 13 Years

Further Improvement in 2019

93.5%

92.0%
91.2% 91.1%	90.7%	91.0%	90.9%
		90.4%*	90.6%			90.4%
90.2%
			89.7%	89.3%		89.6%
				89.2%	89.2%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018	TTM	TTM	Q2 '18Q2 '191H '18 1H '19
	June	June

'18 '19

*Excluding a gain on disposition of two facilities in 2015

Improvement in Marten's Earnings

• Cents Per Diluted Share(1)

$1.10		47%(3)
62%(3)
$1.00

$0.90

$0.80

$0.70

					12%(2) 4%	(2)	-%(3)
$0.60
			10%	(2)%		20%
			12%
$0.50
		23%
21%
$0.40

$0.30	11%

$0.20

$0.10

$0.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018	TTM	TTM	Q2 '18 Q2 '19 1H '18 1H '19
	June	June
	'18	'19

1. Restated to reflect thefive-for-three stock split on July 7, 2017 and the three-for-two stock split on June 14, 2013
2. Excluding a gain on disposition of two facilities in 2015
3. Excluding the deferred income taxes benefit related to the federal Tax Cuts and Jobs Act in 2017

239% increase from Q2 '09 to Q2 '19

?

-22.6% decrease in stock price from June 30, 2018 to June 30, 2019

-In the TTM ended June 30, 2019 from the TTM ended June 30, 2018:

-Operating revenue up 10.5% -Operating income up 28.8% -Net income up 47.5% -Operating ratio, net of fuel

s/c, improved to 89.3% from 90.9%

Marten's Culture | Marten's Vision

Marten's Plan | Marten's People

"Sufficient urgency around a strategically rational and emotionally exciting opportunity is the bedrock upon which all else is built."

"Accelerate!"

Harvard Business Review

November 2012

By John P. Kotter

Konosuke Matsushita

Professor of Leadership, Emeritus

Harvard Business School

Marten's people have built a strong, growing and increasingly profitable

business platform for now and the future based on our truckload, dedicated, intermodal, brokerage and MRTN de Mexico solutions in

turbulent times. Capacity is still tight with a driver shortage which will continue to be a challenge and an opportunity in 2019 and beyond in the new generation of

drivers and the ELD era. Our expectations are for a bright, more profitable growth

outlook over the next several years.

"Marten Transport Delivers the Goods"

TCA Truckload Indexes

December 3, 2018 By Chris Henry

"Quarter-over-quarter,year-over-year, Marten Transport (NASDAQ: MRTN) has delivered consistent, top quartile results. Key word is consistent. When compared to many of the others, you don't see

very many blips in operating expenses or legal exposures that may cause multi-period hangovers for others. Everything I read about them through their earnings releases and SEC filings point

to a very disciplined operating team… Marten has hung with, and

bettered the performance of many of the big dogs."

-In the TTM ended June 30, 2019 from the TTM ended June 30, 2018:

-Operating revenue up 10.5% -Operating income up 28.8% -Net income up 47.5%

-Operating ratio, net of fuel s/c, improved to 89.3% from 90.9%