Investor Presentation September 10, 2007 Exhibit 99.1 * * |
2 What We Do YRC Worldwide provides global transportation services, transportation management solutions, and logistics management through a portfolio of successful brands. We can handle any shipment, any where at any speed. |
3 Asset-based services: Comprehensive next-day nationwide Extensive national networks Truckload Premium services Expedited Association Time Definite Parcel Consolidation Service Portfolio Non-asset-based services: Contract logistics Global shipment management Truckload brokerage Transportation Management |
4 Company Facts 41 million Annual shipments 2.0 billion Annual highway miles 27 million Annual tons 90,000 Trailers 27,000 Trucks 1,000 worldwide Locations 66,000 Employees $9.9 billion Revenue |
5 YRC Worldwide Strategy Yesterday Long-haul LTL One-trick pony Today Powerful combination of asset-based companies plus fast growing logistics capabilities Tomorrow Integrated portfolio of global supply chain services built on strong technology |
6 Strategic Timeline 2000 Yellow Corporation + Formed Meridian IQ Acquired Roadway Acquired USF + + + China 2002 2003 2005 2007 Drivers: Capabilities Globalization Scale Synergy Capabilities Synergy Globalization Integration/Customer Penetration |
7 Strategic Initiatives YRC National Transportation One Management Structure 2 Brands Greater Efficiency YRC Enterprise Solutions Single Point of Contact Enhance Growth Opportunities Seamless Service Across Brands China Acquisitions End-to-End Solution Access Growth Market Enhance Network |
8 National Companies – Everywhere, Everyday |
9 Comprehensive Next-Day Footprint 2003 USF Reddaway, USF Holland, New Penn We now have nationwide, next-day service coverage in North America. 2007 |
10 With our entrance into the Regional market and improved velocity in our National networks, our shipments delivered in two days or less have increased from 36% to 60% in the last four years. Expanded Capabilities/Improved Velocity = Balanced Service Portfolio 3 Days 20% 4+ Days 20% 2 Days 30% Next Day 30% 3 Days 29% 2 Days 29% Next Day 7% 4+ Days 35% 2003 2007 |
11 Global Presence Global shipment management in over 80 countries Freight forwarding Customs brokerage Logistics management |
12 China Network Coverage-Today |
13 China Acquisition Announced in Q2 Shanghai Jiayu Logistics Limited Ground transportation Significant earnings potential 200 locations 3,000 vehicles Over 30,000 customers Primarily Chinese customer base |
14 China Network Coverage including JHJ and Jiayu Acquisition Chengdu Chongqing Changsha Wuhan Xiamen Shenzhen Qingdao Yantai Beijing Tianjin Shijiazhuang Dalian Guangzhou Harbin Xian Baoding Fuzhou Hefei Jinjiang Quanzhou Zhangzhou Lanzhou Shantou Donguan Foshan Kaiping Zhuhai Shunde Jiangmen Zhongshan Guiyang Haikou Zhanjiang Tangshan Cangzhou Langfang Bazhou Taiyuan Zhengzhou Luoyang Jiamusi Zhuzhou Jilin Changchun Baishan Tonghua Jinzhou Dandong Fengcheng Fushun Shenyang Yingkou Liaoyang Jiaozhou Jinan Zibo Xianyang Baoji Kunming Dali Ningbo Wenzhou Yuyao Shaoxing Fuyang Hangzhou Shanghai Nanjing Wuhu Zhangjiagang Suzhou Kunshan Wujiang Zhenjiang Jingjiang Changzhou Growth Opportunities Intra China Demand International Demand |
15 Origin Transportation Destination End-to-End Global Solutions - 2008 Real-time Information |
16 Growth of International 0 150 300 450 600 750 900 1050 1200 1350 1500 1650 1800 1950 2100 2250 2400 2550 2700 2850 3000 3150 3300 3450 3600 3750 3900 4050 4200 4350 4500 4650 4800 4950 5100 5250 5400 5550 5700 5850 6000 2004 2006* 0 100 200 300 400 500 600 700 800 2004 2006* Employees Revenue Company facilities in 22 countries in Asia, Europe, North and South America. YRCW’s expectation regarding its projected revenue information is only YRCW’s forecast regarding this matter. This forecast may be substantially different from actual results. In addition to the factors described in the Cautionary Statement Regarding Forward-Looking Information, the following factors could affect YRCW’s projected revenue information: the accuracy of estimates regarding shipments; the ability to successfully complete strategic acquisitions, including Jiayu; and changes in YRCW’s strategic direction. (in millions) 1,625 5,750 $220 $720 *End of year 2006 includes 100% of JHJ, Jin Jang, and anticipated Jiayu revenue and employees (blue shaded area). |
17 Enterprise Solutions Group Objective Penetrate targeted large strategic accounts Long-term profitable growth Strategy Identify and provide tailored solutions from the suite of YRCW services Customer Benefits Easier access to YRCW One point of contact |
18 *Adjustments from reported earnings per share and operating income related to property gains/losses, acquisition/disposition-related charges, and reorganization charges. Management does not consider these when evaluating core operations. A reconciliation of these amounts is contained in our Form 8-K filed on September 10, 2007. ** Free cash flow is calculated as net cash from operating activities plus stock option proceeds less net capital expenditures. A reconciliation of this amount is contained in our annual earnings releases. A reconciliation of these amounts is contained in Form 8-K filed on September 10, 2007. 2006 Record Operating Income 2006 Adjusted Earnings Per Share $5.01* Financial Results Reported Revenue (in billions) Adjusted Operating Income* (in millions) 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 $117 $3.1 $6.8 $8.7 $357 $544 $2.6 $9.9 $563 $55 ROCC Greater than WACC for 4 Years Generated $235 Million Free Cash Flow** |
19 Defined Benefit Plan Funding: $131 million Red Star MEPPA Funding $49 million Financial Results $253 $235 $200 - 225 2005 2006 2007E Free Cash Flow* (in millions) * Free cash flow is calculated as net cash from operating activities plus stock option proceeds less net capital expenditures. A reconciliation of these amounts is contained in our Form 8-K filed on September 10, 2007. YRCW’s expectation regarding its projected free cash flow information is only YRCW’s forecast regarding this matter. This forecast may be substantially different from actual results. In addition to the factors described in the Cautionary Statement Regarding Forward-Looking Information, the following factors could affect YRCW’s projected free cash flow information: the accuracy of estimates regarding shipments, spending requirements (including capital expenditures) and the exercise of stock options; and changes in YRCW’s strategic direction. |
20 Economic Update Goods economy not recovering as expected No signs of normal seasonal peak - yet YRCW managing business for continued soft economy Relentless focus on cost management Emphasis on cash and return on capital Prudently managing capital investment Continued ability to achieve strategic objectives Capital structure refinancing complete Strong balance sheet Tremendous upside operating leverage |
21 Labor Update National Master Freight Agreement (NMFA) Covers Yellow, Roadway, New Penn and USF Holland Current contract expires March 31, 2008 Commence discussions in September Possibility of early renewal |
22 Notice CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This Investor Presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include those preceded by, followed by or including the words “should,” “could,” “may,” “expect,” “believe,” “estimate” or similar expressions. The expectations set forth in this Investor Presentation regarding, among other things, the company’s China acquisition, international growth, and labor negotiations, are only the Company’s expectations regarding these matters. Actual results could differ materially from those projected by these forward-looking statements due to a number of factors, including (without limitation), inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the Company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing of rail service, ability to capture cost reductions, including (without limitation) those cost reduction opportunities arising from acquisitions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, and labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements, employee satisfaction, ability to successfully complete strategic acquisitions, including (without limitation) in Asia, changes in the company strategic direction, and the risk factors contained in the Company’s periodic reports filed with Securities Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2006. |
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