Form 8-K C. H. ROBINSON WORLDWIDE For: Apr 27

April 27, 2021 4:22 PM


			C.H. Robinson 14701 Charlson Rd. Eden Prairie, MN 55347 www.chrobinson.com
			FOR INQUIRIES, CONTACT: Chuck Ives, Director of Investor Relations Email: chuck.ives@chrobinson.com

FOR IMMEDIATE RELEASE

C.H. Robinson Reports 2021 First Quarter Results

MINNEAPOLIS, MN, April 27, 2021 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended March 31, 2021.

First Quarter Key Metrics:

•Total revenues increased 26.3 percent to $4.8 billion

•Gross profits increased 23.7 percent to $697.7 million

•Adjusted gross profits(1) increased 23.7 percent to $702.4 million

•Income from operations increased 104.1 percent to $223.3 million

•Adjusted operating margin(1) increased 1,250 basis points to 31.8 percent

•Diluted earnings per share (EPS) increased 124.6 percent to $1.28

•Cash flow from operations decreased $115.2 million to $56.7 million used by operations

(1) Adjusted gross profits and adjusted operating margin are Non-GAAP financial measures. The same factors described in this release that impacted these Non-GAAP measures also impacted the comparable GAAP measures. Refer to page 9 for further discussion and a GAAP to Non-GAAP reconciliation.

"We are proud of our first quarter results. As global shipping markets remain disrupted, our team around the globe stayed focused on serving the needs of our customers and delivering innovative solutions to keep global supply chains moving. During the quarter, we delivered strong financial results, while continuing to deliver against many of our initiatives related to growth, productivity and the advancement of our digital strategy," said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. "We generated 125% growth in earnings per share due to profit growth in our two largest business segments, North American Surface Transportation ('NAST') and Global Forwarding. NAST's adjusted gross profit per business day increased 15% and operating income was up 39% compared to the first quarter of 2020. These results

were driven by a 23% improvement in adjusted gross profit per load in our truckload business coupled with continued strong market share gains in our less than truckload business where volume per business day increased 17% year over year. Bolstering these results were continued benefits of our technology investments, which continue to unlock productivity gains and deliver customer value in new and exciting ways. Our Global Forwarding business delivered a 118% increase in total revenues, a 67% increase in adjusted gross profits and a 658% increase in operating income. The forwarding team successfully worked with customers across the globe to navigate a difficult and disrupted market, leading to increased award sizes with current customers and thousands of new commercial relationships."

First Quarter Results Summary

•Total revenues increased 26.3 percent to $4.8 billion, driven primarily by higher pricing and higher volume across most of our service lines.

•Gross profits increased 23.7 percent to $697.7 million. Adjusted gross profits increased 23.7 percent to $702.4 million, primarily driven by higher pricing in our truckload, ocean and air service lines, higher volume in our ocean, less than truckload ("LTL") and air service lines and contributions from the acquisition of Prime Distribution Services ("Prime").

•Operating expenses increased 4.5 percent to $479.1 million, due to higher personnel expenses. Personnel expenses increased 9.3 percent to $360.8 million, primarily due to higher incentive compensation costs. Average headcount decreased 2.9 percent, despite headcount additions from Prime that added approximately 1.0 percentage point. Selling, general and administrative ("SG&A") expenses of $118.2 million decreased 7.9 percent, primarily due to lower travel expenses and credit losses.

•Income from operations totaled $223.3 million, up 104.1 percent due to the increase in adjusted gross profits. Adjusted operating margin of 31.8 percent increased 1,250 basis points.

•Interest and other expenses totaled $11.3 million, consisting primarily of $12.2 million of interest expense, which decreased $0.4 million versus last year due to a lower average debt balance and a lower average interest rate. The first quarter also included a $2.9 million unfavorable impact from foreign currency revaluation.

•The effective tax rate in the quarter was 18.3 percent compared to 17.1 percent in the first quarter last year. The rate increase was primarily due to higher profits.

•Net income totaled $173.3 million, up 121.8 percent from a year ago. Diluted EPS of $1.28 increased 124.6 percent.

•First quarter of 2021 had one less business day compared to the first quarter of 2020.

North American Surface Transportation Results

Summarized financial results of our NAST segment are as follows (dollars in thousands):


	Three Months Ended March 31,
		2021		2020		% change
Total revenues		$	3,211,423	$	2,823,745	13.7	%
Adjusted gross profits(1)		421,108		372,778		13.0	%
Income from operations		136,784		98,526		38.8	%

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

First quarter total revenues for C.H. Robinson's NAST segment totaled $3.2 billion, an increase of 13.7 percent over the prior year, primarily driven by higher truckload pricing and an increase in LTL shipments, partially offset by a decrease in truckload volume. NAST adjusted gross profits increased 13.0 percent in the quarter to $421.1 million, with the March 2020 acquisition of Prime contributing 3.0 percentage points to NAST adjusted gross profit growth in the quarter. Adjusted gross profits in truckload increased 15.0 percent due to a 23 percent increase in adjusted gross profit per load, and LTL adjusted gross profits increased 6.9 percent versus the year-ago period. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 33 percent in the quarter, while truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 33.5 percent. Truckload volume declined 6.5 percent in the quarter, and LTL volumes grew 15.0 percent. The first quarter of 2021 had one less business day than the first quarter of 2020. Truckload volume per business day declined 5.0 percent in the quarter, and LTL volume per business day grew 17.0 percent, resulting in overall NAST volume growth per business day of 7.0 percent. Operating expenses increased 3.7 percent primarily due to higher incentive compensation. Income from operations increased 38.8 percent to $136.8 million, and adjusted operating margin expanded 610 basis points to 32.5 percent. NAST average headcount was down 7.1 percent in the quarter, with Prime contributing 2.5 percentage points of growth.

Global Forwarding Results

Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):


	Three Months Ended March 31,
		2021		2020		% change
Total revenues		$	1,156,039	$	530,384	118.0	%
Adjusted gross profits(1)		214,300		128,314		67.0	%
Income from operations		90,589		11,959		657.5	%

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

First quarter total revenues for the Global Forwarding segment increased 118.0 percent to $1.2 billion, primarily driven by higher pricing and higher volume in both our ocean and air service lines, reflecting the strong demand environment, market share gains and strained capacity. Adjusted gross profits increased 67.0 percent in the quarter to $214.3 million. Ocean adjusted gross profits increased 93.9 percent, driven by higher pricing and a 27.0 percent increase in volumes. Adjusted gross profits in air increased 68.3 percent driven by higher pricing and a 7.0 percent increase in shipments. Customs adjusted gross profits increased 14.3 percent, primarily driven by a 13.5 percent increase in transaction volume. Operating expenses increased 6.3 percent, primarily driven by increased incentive compensation in personnel expenses and partially offset by lower amortization and travel expenses. First quarter average headcount decreased 1.8 percent. Income from operations increased 657.5 percent to $90.6 million, and adjusted operating margin expanded 3,300 basis points to 42.3 percent in the quarter.

All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):


	Three Months Ended March 31,
		2021		2020		% change
Total revenues		$	436,407	$	450,879	(3.2)	%
Adjusted gross profits(1):
Robinson Fresh		$	24,948	$	27,458	(9.1)	%
Managed Services		25,556		22,527		13.4	%
Other Surface Transportation		16,468		16,876		(2.4)	%

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

First quarter Robinson Fresh adjusted gross profits decreased 9.1 percent to $24.9 million, primarily due to a 3.0 percent volume decline and margin compression in our retail vertical. Managed Services adjusted gross profits increased 13.4 percent in the quarter, primarily due to a 30.0 percent increase in volume. Other Surface Transportation adjusted gross profits decreased 2.4 percent to $16.5 million, primarily due to a 3.0 percent decline in Europe truckload volume.

Other Income Statement Items

The first quarter effective tax rate was 18.3 percent, up from 17.1 percent last year. We expect our 2021 full-year effective tax rate to be 20 to 22 percent. The first quarter rate is typically lower than our full-year rate due to the tax benefits related to delivery of annual stock-based compensation in the quarter.

Interest and other expenses totaled $11.3 million, consisting primarily of $12.2 million of interest expense, which decreased $0.4 million versus last year due to a lower average debt balance. The first quarter also included a $2.9 million unfavorable impact from foreign currency revaluation. These expenses were partially offset by a $2.9 million local government subsidy in Asia for achieving specified performance criteria that was almost entirely offset by a reduction in foreign tax credits within the provision for income taxes.

Diluted weighted average shares outstanding in the quarter were down 0.2 percent due primarily to share repurchases over the prior six months.

Cash Flow Generation and Capital Distribution

Cash used by operations totaled $56.7 million in the first quarter, compared to $58.5 million of cash generated in the first quarter of 2020. The $115.2 million decrease in cash flow was driven by a $468 million sequential increase in accounts receivable and contract assets, partially offset by a $216 million increase in accounts payable and accrued transportation expense and a $95 million increase in net income compared to the first quarter of 2020.

In the first quarter of 2021, $220.9 million was returned to shareholders, with $150.9 million in total repurchases of common stock and $70.0 million in cash dividends.

Capital expenditures totaled $13.5 million in the quarter. We continue to expect 2021 capital expenditures to be $55 million to $65 million, with the majority dedicated to technology.

Outlook

"In the first quarter, we delivered record revenues, adjusted gross profit, net income and EPS relative to all past first quarters and demonstrated the strength and earnings power of our non-asset-based business model," Biesterfeld stated. "Looking forward, we will stay the course with our strategy of pursuing market share gains that align with our profitability expectations and will continue to invest back into the business in order to drive innovation and improve service to our customers and carriers. Within our NAST business, we expect tight market conditions to continue through the balance of this year. Regardless of how cyclical market conditions change and evolve, we will stay focused on driving growth and expanding our business with customers across our global suite of modes and services. We're very pleased with the performance of our Global Forwarding business, where we have built sustainable competitive advantages due to structural changes that we’ve made over the last few years. Across the board, as one of the world’s largest aggregators of a highly fragmented and diverse carrier base on multiple continents, we're committed to creating better outcomes for our customers and our carriers by delivering industry-leading technology that's built by and for supply chain experts. We're also firmly committed to being a responsible corporate citizen, and we’re proud of the tools that we can now offer to advance sustainability across the logistics industry. Lastly, I’d like to thank the Robinson team members around the world for continuing to drive our company forward and for helping our company to emerge stronger."

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $21 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our 105,000 customers and 73,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

Except for the historical information contained herein, the matters set forth in this 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; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; 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. 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.

Conference Call Information:

C.H. Robinson Worldwide First Quarter 2021 Earnings Conference Call

Tuesday, April 27, 2021; 5:00 p.m. Eastern Time

Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com.

To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

International callers dial +1-201-689-7817

Adjusted Gross Profit by Service Line

(in thousands)

This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments have revenues from multiple service lines.


	Three Months Ended March 31,
		2021		2020		% change

Adjusted gross profits(1):
Transportation
Truckload		$	300,023	$	264,926	13.2	%
LTL		121,553		113,909		6.7	%
Ocean		135,510		69,902		93.9	%
Air		45,894		28,338		62.0	%
Customs		24,222		21,193		14.3	%
Other logistics services		51,740		43,737		18.3	%
Total transportation		678,942		542,005		25.3	%
Sourcing		23,438		25,948		(9.7)	%
Total adjusted gross profits		$	702,380	$	567,953	23.7	%

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

GAAP to Non-GAAP Reconciliation

(unaudited, in thousands)

Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):


	Three Months Ended March 31,
		2021		2020
Revenues:
Transportation		$	4,560,227	$	3,542,118
Sourcing		243,642		262,890
Total revenues		4,803,869		3,805,008
Costs and expenses:
Purchased transportation and related services		3,881,285		3,000,113
Purchased products sourced for resale		220,204		236,942
Direct internally developed software amortization		4,647		3,745
Total direct expenses		4,106,136		3,240,800
Gross profit		$	697,733	$	564,208
Plus: Direct internally developed software amortization		4,647		3,745
Adjusted gross profit		$	702,380	$	567,953

Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The comparison of operating margin to adjusted operating margin is presented below:


	Three Months Ended March 31,
		2021			2020

Total Revenues		$	4,803,869		$	3,805,008
Operating income		223,329			109,440
Operating margin		4.6		%	2.9		%

Adjusted gross profit		$	702,380		$	567,953
Operating income		223,329			109,440
Adjusted operating margin		31.8		%	19.3		%

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)


	Three Months Ended March 31,

		2021		2020

Revenues:
Transportation		$	4,560,227	$	3,542,118
Sourcing		243,642		262,890
Total revenues		4,803,869		3,805,008
Costs and expenses:
Purchased transportation and related services		3,881,285		3,000,113
Purchased products sourced for resale		220,204		236,942
Personnel expenses		360,835		330,220
Other selling, general, and administrative expenses		118,216		128,293
Total costs and expenses		4,580,540		3,695,568
Income from operations		223,329		109,440
Interest and other expense		(11,260)		(15,228)
Income before provision for income taxes		212,069		94,212
Provision for income taxes		38,764		16,066
Net income		$	173,305	$	78,146

Net income per share (basic)		$	1.29	$	0.58
Net income per share (diluted)		$	1.28	$	0.57

Weighted average shares outstanding (basic)		134,508		135,474
Weighted average shares outstanding (diluted)		135,745		135,969

Business Segment Information

(unaudited, in thousands, except average headcount)


	NAST		Global Forwarding		All Other and Corporate		Consolidated
Three Months Ended March 31, 2021
Total revenues	$	3,211,423	$	1,156,039	$	436,407	$	4,803,869


Adjusted gross profits(1)	421,108		214,300		66,972		702,380
Income (loss) from operations	136,784		90,589		(4,044)		223,329
Depreciation and amortization	6,625		5,649		11,004		23,278
Total assets (2)	3,218,084		1,582,967		795,572		5,596,623
Average headcount	6,537		4,735		3,725		14,997

	NAST		Global Forwarding		All Other and Corporate		Consolidated
Three Months Ended March 31, 2020
Total revenues	$	2,823,745	$	530,384	$	450,879	$	3,805,008


Adjusted gross profits(1)	372,778		128,314		66,861		567,953
Income (loss) from operations	98,526		11,959		(1,045)		109,440
Depreciation and amortization	5,254		9,149		9,990		24,393
Total assets (2)	2,942,719		934,625		970,976		4,848,320
Average headcount	7,038		4,824		3,588		15,450

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

(2) All cash and cash equivalents are included in All Other and Corporate.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)


	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	217,611	$	243,796
Receivables, net of allowance for credit loss	2,874,463		2,449,577
Contract assets, net of allowance for credit loss	240,488		197,176
Prepaid expenses and other	77,547		51,152
Total current assets	3,410,109		2,941,701

Property and equipment, net of accumulated depreciation and amortization	174,119		178,949
Right-of-use lease assets	313,463		319,785
Intangible and other assets, net of accumulated amortization	1,698,932		1,703,823
Total assets	$	5,596,623	$	5,144,258

Liabilities and stockholders’ investment
Current liabilities:
Accounts payable and outstanding checks	$	1,475,705	$	1,283,364
Accrued expenses:
Compensation	110,003		138,460
Transportation expense	177,618		153,574
Income taxes	71,056		43,700
Other accrued liabilities	150,337		154,460
Current lease liabilities	66,188		66,174
Current portion of debt	250,000		—
Total current liabilities	2,300,907		1,839,732

Long-term debt	1,093,517		1,093,301
Noncurrent lease liabilities	262,559		268,572
Noncurrent income taxes payable	24,682		26,015
Deferred tax liabilities	32,236		22,182
Other long-term liabilities	14,535		14,523
Total liabilities	3,728,436		3,264,325

Total stockholders’ investment	1,868,187		1,879,933
Total liabilities and stockholders’ investment	$	5,596,623	$	5,144,258

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)


	Three Months Ended March 31,
	2021		2020
Operating activities:
Net income	$	173,305	$	78,146
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Depreciation and amortization	23,278		24,393
Provision for credit losses	(1,250)		5,675
Stock-based compensation	23,989		11,397
Deferred income taxes	3,869		1,622
Excess tax benefit on stock-based compensation	(7,853)		(3,737)
Other operating activities	488		788
Changes in operating elements, net of acquisitions:
Receivables	(437,862)		(133,142)
Contract assets	(43,495)		8,713
Prepaid expenses and other	(26,692)		(11,038)
Accounts payable and outstanding checks	206,237		98,946
Accrued compensation	(27,977)		(23,879)
Accrued transportation expenses	24,044		(7,294)
Accrued income taxes	34,087		5,196
Other accrued liabilities	(1,959)		1,829
Other assets and liabilities	1,099		884
Net cash (used for) provided by operating activities	(56,692)		58,499

Investing activities:
Purchases of property and equipment	(5,435)		(7,841)
Purchases and development of software	(8,071)		(6,862)
Acquisitions, net of cash acquired	—		(223,617)

Net cash used for investing activities	(13,506)		(238,320)

Financing activities:
Proceeds from stock issued for employee benefit plans	17,709		11,269
Total repurchases of common stock	(150,916)		(82,358)
Cash dividends	(70,030)		(69,871)


Proceeds from short-term borrowings	816,000		765,600
Payments on short-term borrowings	(566,000)		(587,600)
Net cash used for financing activities	46,763		37,040
Effect of exchange rates on cash	(2,750)		(10,505)

Net change in cash and cash equivalents	(26,185)		(153,286)
Cash and cash equivalents, beginning of period	243,796		447,858
Cash and cash equivalents, end of period	$	217,611	$	294,572

	As of March 31,
Operational Data:	2021		2020
Employees	15,105		15,474

Source: C.H. Robinson

CHRW-IR

1 Q1 2021 April 27, 2021 Earnings Presentation Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR

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 as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; changes due to catastrophic events including pandemics such as COVID-19; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

▪ 125% improvement in Diluted EPS ▪ 26% increase in Adjusted Gross Profit per business day, led by our Ocean and Truckload service lines ▪ Global Forwarding sustaining its strong execution ▪ Capturing more truckload spot market opportunities & repricing our contractual truckload business to reflect the current environment ▪ Technology and transformation initiatives providing meaningful growth opportunities and efficiencies Q1 2021 Opening Remarks

Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies Beginning of $1B Tech Investment over 5 YearsBeginning of $1B Tech Investment over 5 Years

Strategies Creating Shareholder Value • Creating better outcomes for our customers and carriers • Utilizing our unmatched combination of experience, scale and information advantage • Leveraging our broad service portfolio • Focusing on profitable market share growth • Delivering industry leading technology to unlock growth and efficiency • Fostering sustainability and an inclusive culture that is supportive of our employees and the communities we serve

Results Q1 2021 ITEM MEDICAL/SURGICAL MASK NON-MEDICAL MASK Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Three Months Ended March 31 $ in thousands, except per share amounts 2021 2020 % CHANGE Total Revenues $4,803,869 $3,805,008 26.3 % Total Adjusted Gross Profits(1) $702,380 $567,953 23.7 % Adjusted Gross Profit Margin % 14.6 % 14.9 % (30 bps) Personnel Expenses $360,835 $330,220 9.3 % Selling, General, and Admin $118,216 $128,293 (7.9) % Income from Operations $223,329 $109,440 104.1 % Adjusted Operating Margin % 31.8 % 19.3 % 1,250 bps Depreciation and Amortization $23,278 $24,393 (4.6) % Net Income $173,305 $78,146 121.8 % Earnings Per Share (Diluted) $1.28 $0.57 124.6 % Average Headcount 14,997 15,450 (2.9) % • Increase in adjusted gross profits driven primarily by higher pricing in our truckload, ocean & air service lines, higher volume in our ocean, less than truckload ("LTL") and air service lines and contributions from the acquisition of Prime Distribution Services • Increase in operating expenses driven primarily by higher incentive compensation costs, partially offset by lower travel expenses and credit losses (1) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

Q1 2021 Cash Flow and Capital Distribution • $115.2 million decrease in cash flow driven by an increase in accounts receivable, partially offset by increases in accounts payable and net income • $13.5 million in capital expenditures • Expect 2021 capital expenditures to be $55-65 million Cash Flow from Operations Capital Distribution • $220.9 million returned to shareholders • $70.0 million in cash dividends • $150.9 million in share repurchases ◦ 1,625,550 shares repurchased at an average price of $92.84 per share Q1 2020 Q1 2021 Q1 2020 Q1 2021 ($56.7)M $58.5M (196.9%) $152.2M $220.9M 45.1% Cash Dividends Share Repurchases

Q1 2021 Balance Sheet ITEM MEDICAL/SURGICAL MASK NON-MEDICAL MASK Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor $ in thousands March 31, 2021 March 31, 2020 % CHANGE Accounts Receivable, Net(1) $3,114,951 $2,216,171 40.6% Accounts Payable(2) $1,653,323 $1,244,454 32.9% Net Operating Working Capital(3) $1,461,628 $971,717 50.4% • Increases in accounts receivable and accounts payable driven by increases in total sales and the cost of purchased transportation, respectively, as well increases in DSO and DPO • Total debt balance $1.34 billion • $600 million senior unsecured notes maturing April 2028, 4.20% coupon • $500 million private placement debt, 4.28% average coupon • $175 million maturing in August 2023, $150 million maturing in August 2028 and $175 million maturing in August 2033 • $250 million outstanding on $1 billion credit facility maturing October 2023, 1.21% average interest rate (LIBOR + 112.5 bps) • 3.9% weighted average interest rate in the quarter (1) Accounts receivable amount includes contract assets, net of allowance for credit loss. (2) Accounts payable amount includes outstanding checks and accrued transportation expense. (3) Net operating working capital is defined as net accounts receivable less accounts payable.

• 55% / 45% truckload contractual to transactional volume mix compared to 65% / 35% in Q1 last year • Average routing guide depth of 1.7 in Managed Services business vs. 1.2 in Q1 last year Truckload Price and Cost Change(1)(2)(3) Y oY % C ha ng e in P ri ce a nd C os t 2013 2014 2015 2016 2017 2018 2019 2020 2021 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% YoY Price Change YoY Cost Change Truckload Q1 Volume(2)(4) -6.5% Pricing(1)(2)(3) +33.0% Cost(1)(2)(3) +33.5% Adjusted Gross Profit Margin (1) Price and cost change represents YoY change for North America truckload shipments across all segments. (2) Growth rates are rounded to the nearest 0.5 percent. (3) Pricing and cost measures exclude fuel surcharges and costs. (4) Truckload volume growth represents YoY change for NAST truckload shipments.

Q1 2021 NAST Results by Service Line Truckload and Less Than Truckload ITEM MEDICAL/SURGICAL MASK NON-MEDICAL MASK Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Adjusted Gross Profits3 ($ in thousands) Three Months Ended March 31 2021 2020 % Change Truckload $280,304 $243,686 15.0 % LTL $120,117 $112,330 6.9 % Other(1) $20,687 $16,762 23.4 % Total Adjusted Gross Profits $421,108 $372,778 13.0 % Adjusted Gross Profit Margin % 13.1 % 13.2 % (10 bps) • Truckload adjusted gross profit per load increased 23% due to an increased mix of transactional volume and higher contractual pricing to reflect the rising cost environment (2) • Added 6,900 new carriers in the quarter (1) Intermodal service line included in Other. (2) Growth rates are rounded to the nearest percent. (3) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. • LTL volume per business day up 17%(2) • Increase in other adjusted gross profit due primarily to Prime Distribution's value-added warehousing services • Prime Distribution adjusted gross profit impact to NAST(2): • LTL +3 ppts • Other +41 ppts • Total NAST +3 ppts

Q1 2021 NAST Operating Income • Increase in adjusted gross profits due to higher pricing in truckload, higher volume in LTL & contributions from Prime Distribution acquisition • Operating expenses increased 3.7%, primarily due to higher incentive compensation costs • Average headcount decreased 7.1% • Prime Distribution acquisition contributed 2.5 percentage points of growth to NAST headcount(1) Operating Income Adjusted Operating Margin % Q1 2020 Q1 2021 610 bps 38.8% $98.5M $136.8M 26.4% 32.5% Q1 2020 Q1 2021 (1) Growth rates are rounded to the nearest 0.5 percent.

ITEM MEDICAL/SURGICAL MASK NON-MEDICAL MASK Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Q1 2021 Global Forwarding Results by Service Line Ocean, Air and Customs Adjusted Gross Profits2 ($ in thousands) Three Months Ended March 31 2021 2020 % Change Ocean $135,396 $69,810 93.9 % Air $45,247 $26,877 68.3 % Customs $24,223 $21,193 14.3 % Other $9,434 $10,434 (9.6) % Total Adjusted Gross Profits $214,300 $128,314 67.0 % Adjusted Gross Profit Margin % 18.5 % 24.2 % (570 bps) (1) Growth rates are rounded to the nearest 0.5 percent. (2) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. • Ocean and air adjusted gross profit increased due to higher pricing and a 27.0% increase in ocean volume and a 7.0% increase in air shipments(1) • Ocean market impacted by strong demand and tight supply • Air market impacted by reduced air cargo capacity, increased charter flights and larger shipment sizes • Customs adjusted gross profit increased due to a 13.5% increase in transaction volume(1)

Q1 2021 Global Forwarding Operating Income • Improved operating leverage from • 67.0% increase in adjusted gross profits • 1.8% decrease in average headcount • 6.1% decrease in SG&A expenses • Adjusted operating margin above our long-term target of 30% Operating Income Adjusted Operating Margin % Q1 2020 Q1 2021 9.3% 42.3%3,300 bps Q1 2020 Q1 2021 $12.0M $90.6M657.5%

Q1 2021 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation ITEM MEDICAL/SURGICAL MASK NON-MEDICAL MASK Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Lorem ipsum dolor Adjusted Gross Profits1 ($ in thousands) Three Months Ended March 31 2021 2020 % Change Robinson Fresh $24,948 $27,458 (9.1)% Managed Services $25,556 $22,527 13.4% Other Surface Transportation $16,468 $16,876 (2.4)% Total $66,972 $66,861 0.2% Robinson Fresh • 9% decrease in adjusted gross profit driven by 3% volume decline and lower margins • Operating expenses reduced by 5.5% Managed Services • 30% increase in volume and 32% increase in total freight under management • Continued strong growth from both new and existing customers Other Surface Transportation • 2% decrease in Europe adjusted gross profit due to a 3% volume decline (1) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

15 Appendix

Q1 2021 Transportation Results(1) Three Months Ended March 31 Transportation ($ in thousands) 2021 2020 % Change Total Revenues $4,560,227 $3,542,118 28.7% Total Adjusted Gross Profits(2) $678,942 $542,005 25.3% Adjusted Gross Profit Margin % 14.9% 15.3% (40 bps) Transportation Adjusted Gross Profit Margin % 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 16.9% 16.3% 15.3% 16.8% 19.7% 17.3% 16.4% 18.6% 15.3% 14.9% Q2 14.9% 15.4% 16.0% 17.5% 19.3% 16.2% 16.2% 18.3% 17.5% Q3 15.6% 15.0% 16.2% 18.4% 17.6% 16.4% 16.6% 16.9% 14.4% Q4 15.8% 15.1% 15.9% 19.0% 17.2% 16.6% 17.7% 15.6% 14.3% Total 15.8% 15.4% 15.9% 17.9% 18.4% 16.6% 16.7% 17.3% 15.3% (1) Includes results across all segments. (2) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

Q1 2021 NAST Results Three Months Ended March 31 $ in thousands 2021 2020 % Change Total Revenues $3,211,423 $2,823,745 13.7% Total Adjusted Gross Profits(1) $421,108 $372,778 13.0% Adjusted Gross Profit Margin % 13.1% 13.2% (10 bps) Income from Operations $136,784 $98,526 38.8% Adjusted Operating Margin % 32.5% 26.4% 610 bps Depreciation and Amortization $6,625 $5,254 26.1% Total Assets $3,218,084 $2,942,719 9.4% Average Headcount 6,537 7,038 (7.1%) (1) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

Q1 2021 Global Forwarding Results Three Months Ended March 31 $ in thousands 2021 2020 % Change Total Revenues $1,156,039 $530,384 118.0% Total Adjusted Gross Profits(1) $214,300 $128,314 67.0% Adjusted Gross Profit Margin % 18.5% 24.2% (570 bps) Income from Operations $90,589 $11,959 657.5% Adjusted Operating Margin % 42.3% 9.3% 3,300 bps Depreciation and Amortization $5,649 $9,149 (38.3%) Total Assets $1,582,967 $934,625 69.4% Average Headcount 4,735 4,824 (1.8%) (1) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

Q1 2021 All Other and Corporate Results Three Months Ended March 31 $ in thousands 2021 2020 % Change Total Revenues $436,407 $450,879 (3.2%) Total Adjusted Gross Profits(1) $66,972 $66,861 0.2% Income from Operations ($4,044) ($1,045) NM Depreciation and Amortization $11,004 $9,990 10.2% Total Assets $795,572 $970,976 (18.1%) Average Headcount 3,725 3,588 3.8% (1) Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

Non-GAAP Reconciliations Three Months Ended March 31 2021 2020 Revenues: Transportation $ 4,560,227 $ 3,542,118 Sourcing 243,642 262,890 Total Revenues 4,803,869 3,805,008 Costs and expenses: Purchased transportation and related services 3,881,285 3,000,113 Purchased products sourced for resale 220,204 236,942 Direct internally developed software amortization 4,647 3,745 Total direct costs 4,106,136 3,240,800 Gross profit & Gross profit margin 697,733 14.5 % 564,208 14.8 % Plus: Direct internally developed software amortization 4,647 3,745 Adjusted gross profit / Adjusted gross profit margin $ 702,380 14.6 % $ 567,953 14.9 % Our 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. Adjusted gross profit margin is calculated as adjusted gross profit divided by total revenues. We believe adjusted gross profit and adjusted gross profit margin are useful measures of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. The reconciliation of gross profit to adjusted gross profit and gross profit margin to adjusted gross profit margin are presented below (in thousands):

Non-GAAP Reconciliations Three Months Ended March 31 2021 2020 Total Revenues $ 4,803,869 $ 3,805,008 Operating income 223,329 109,440 Operating margin 4.6 % 2.9 % Adjusted gross profit $ 702,380 $ 567,953 Operating income 223,329 109,440 Adjusted operating margin 31.8 % 19.3 % Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The reconciliation of operating margin to adjusted operating margin is presented below:

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