C H Robinson Worldwide : CHRW Q4 2022 Earnings Call Presentation

Scott Anderson, Interim CEO

Arun Rajan, Chief Operating Officer

Mike Zechmeister, Chief Financial Officer

Chuck Ives, Director of Investor Relations

Q4 2022

Earnings Presentation

February 1, 2023

Safe Harbor Statement

Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release 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 such 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; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with significant disruptions in the transportation industry; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; risks with reliance on technology to operate our business; cyber-security related risks; risks associated with operations outside of the United States; our ability to successfully integrate the operations of acquired companies with our historic operations; risks related to our search for a permanent CEO and retention of key management personnel; climate change related risks; risks associated with our indebtedness, interest rates related risks; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government 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 war on the economy; changes to our capital structure; changes due to catastrophic events including pandemics such as COVID-19; 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.

©2023 C.H. Robinson Worldwide, Inc. All Rights Reserved.

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Q4 Highlights

• Unseasonably soft freight demand, driven by shippers managing through elevated inventory levels amidst slowing economic growth
• Staying focused on customers and carriers and accelerating delivery of our scalable digital operating model
• Executing on plan to reduce net costs by $150 million on an annualized basis by Q4 2023
• • Q4 2022 results include $36.7 million of restructuring charges
  • Adjusted net income per share of $1.03(1)
• Record cash generation enabling higher return of cash to shareholders

Q4	2022
$5.1B	$768M
Total Revenues	Adj. Gross Profit
-22.1% Y/Y	-10.3% Y/Y
$164M	$0.80
Income from Ops.	Net Income/Share
-42.9% Y/Y	-54.0% Y/Y

1. Adjusted net income per share is a non-GAAP financial measure. Refer to page 22 for further discussion and a GAAP to Non-GAAP reconciliation.

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Segment Highlights: Diversified, Global Suite of Services

Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1)

North American Surface Transportation (NAST)

• Adjusted gross profit (AGP) per load improved Y/Y in both TL and LTL, but declined sequentially
• Load-to-truckratios indicate the truckload market is soft by historical standards
• Significant market share opportunities remain
• Improved prioritization on initiatives that best deliver a scalable digital operating model
• Increased automation of appointments and in-transit tracking updates

Q4 2022 Adjusted
Gross Profit(2)	-39.0%
	Y/Y

+5.7%	+7.7%
Y/Y	Y/Y

Global Forwarding (GF)

• Inventory destocking and reduced global demand has led to declining prices for ocean and air freight
• Continuing to add new commercial relationships with strategic, multi- national customers and to diversify our trade lane and industry vertical exposure

All Other & Corporate

• Robinson Fresh integrated supply chain solutions generating increased revenue
• Managed Services Q4 FUM(3) of $1.5B down 16% Y/Y due to declining freight rates
• Other Surface Transportation AGP declined 1.1% Y/Y

1. Measured over trailing twelve months

2.	Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers.	4
3.	FUM = Freight under Management

NAST Q4'22 Results by Service

• Truckload volume down 4.0% year-over-year(2)
• Truckload AGP per shipment increased 6.5% due to a higher AGP per shipment on contractual volume(2)
• LTL AGP per order increased 8.0% and volume decreased 1.0%(2)
• Other AGP increased due to growth in warehousing services
• Added 9,100 new carriers in Q4

Adjusted Gross Profit(1)

($ in millions)

	4Q22	4Q21	%▲
Truckload ("TL")	$322.3	$316.0	2.0%
Less than Truckload ("LTL")	$148.2	$138.1	7.3%
Other	$31.8	$21.1	50.9%
Total Adjusted Gross Profits	$502.3	$475.1	5.7%
Adjusted Gross Profit Margin %	14.1%	12.2%	190 bps

1.	Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers.	5
2.	Growth rates are rounded to the nearest 0.5 percent.