Goldman Sachs Industrial Conference 2013 Thursday, November 14, 2013 SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED
Disclosure This presentation and discussion may 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 J.B. Hunt 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 J.B. Hunt s reports and filings with the Securities and Exchange Commission. 2 Goldman Sachs Industrial Conference 2013
Differentiating Factors Industry-leading intermodal franchise Specialized dedicated business Independent brokerage and management services Full service truckload model 3 Goldman Sachs Industrial Conference 2013
Supply Chain Solutions 4 Goldman Sachs Industrial Conference 2013
Diversified and Complementary 22% JBI DCS ICS JBT 62% 6% 10% 5 Goldman Sachs Industrial Conference 2013
How Customers Buy 2012 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% JBI DCS ICS JBT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 6 Goldman Sachs Industrial Conference 2013
How Customers Buy 2013 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% JBI DCS ICS JBT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 Goldman Sachs Industrial Conference 2013
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Industry-Leading Intermodal Network 9 Goldman Sachs Industrial Conference 2013
Company Assets 100% company-owned containers and chassis Disciplined asset management - balance Methodical stacking proves advantageous 85% dray provided by company assets 10 Goldman Sachs Industrial Conference 2013
Intermodal Keys to Success Revenue per load quality Unique and growing rail relationships Asset utilization Maintain market share Balance network 11 Goldman Sachs Industrial Conference 2013
Millions Intermodal Capital Expenditures Cumulative asset investment $2,500 $2,000 $1,500 $1,000 $500 $0 2010 2011 2012 2013E 2014B 12 Goldman Sachs Industrial Conference 2013
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Millions Dedicated Capital Expenditures Cumulative asset investment $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2010 2011 2012 2013E 2014B 14 Goldman Sachs Industrial Conference 2013
Millions Revenue by Category 2010 vs 2014 2010 2014 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Retail Food Agri Final Mile Glass Mfg Other 15 Goldman Sachs Industrial Conference 2013
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Customer Growth by Shipper Site January 2007 17 Goldman Sachs Industrial Conference 2013
Customer Growth by Shipper Site October 2013 Seattle, WA Salt Lake City, UT Denver, CO San Francisco, CA Los Angeles, CA Phoenix, AZ Minneapolis, MN Rochester, NY Chicago, IL Des Moines, IA Columbus, OH Jersey City, NJ Indianapolis, IN Pittsburgh, PA Kansas City, MO Louisville, KY Lowell, AR Baltimore, MD Nashville, TN Memphis, TN Charlotte, NC Dallas, TX Atlanta, GA Houston, TX Jacksonville, FL Miami, FL 18 Goldman Sachs Industrial Conference 2013
Customer Growth by Shipper Site Potential branch locations Portland, OR Grand Rapids, MI Toronto, ON Boston, MA St. Louis, MO Detroit, MI Richmond, VA Oklahoma City, OK San Diego, CA Birmingham, AL Columbia, SC San Antonio, TX New Orleans, LA Laredo, TX 19 Goldman Sachs Industrial Conference 2013
Integrated Sales 2013 $157 M Assets Direct $392 M 20 Goldman Sachs Industrial Conference 2013
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014B Truckload Fleet Size and Mix 6,000 5,000 4,000 3,000 2,000 1,000 IC Company 0 22 Goldman Sachs Industrial Conference 2013
Truckload Keys to Success High service Improved efficiencies Enhanced driver pay Regional management approach 23 Goldman Sachs Industrial Conference 2013
Combined Market Response ICS Gross Revenue JBT Gross Revenue $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2007 2008 2009 2010 2011 2012 2013E 24 Goldman Sachs Industrial Conference 2013
2014 Financial Expectations JBI 5-7,000 Container Additions 10-14% Load Growth +/- 1% Revenue Per Load 0.5% Improved Turns DCS 10-12% Revenue Growth 50-100 bps Margin Improvement 8% Asset Light Revenue Increase ICS 18-20% Revenue Growth 11 New Branches 150-180 New People 30 bps Operating Margin Drag JBT 10% Utilization Increase 100 bps Margin Increase Flat Truck Count Flat Revenue Per Truck 25 Goldman Sachs Industrial Conference 2013
2014 CAPEX In Millions Replacement JBI $65 DCS $139 JBT $100 $304 3250 Trucks 600 1000 Containers 4000 Trailers Growth JBI $212 DCS $103 JBT $33 $348 1200 Trucks 6500 Containers 1000 Trailers Facilities $25 Technology $23 Total CAPEX $700 Million 26 Goldman Sachs Industrial Conference 2013
2014 Consolidated Revenue Operating Income JBI 62% DCS 22% ICS 10% JBT 6% JBI 75% DCS 20% ICS 3% JBT 2% 10 12% Anticipated Annual Increase 11 15% Anticipated Annual Increase Interest Expense 15% Anticipated Annual Increase 27 Goldman Sachs Industrial Conference 2013
Our Strategy Grow Intermodal Grow Dedicated Grow Integrated Move Truckload to sustainability Deploy capital equipment, stock, dividend 28 Goldman Sachs Industrial Conference 2013