ACF Transportation

Transportation Management Solutions

North American Services• Truckload Van• Stepdeck, Heavy Haul and

Specialized• LTL Van / Flat• Expedited & Emergency• Border Crossing• Temperature Controlled• Air Freight• Rail Intermodal

International Services• Air Charter Worldwide• International Air Freight• Customs Brokerage• Ocean Services• Project Cargo

InformationWeek 500 Award WinnerInnovation in Technology

15 consecutive years

Quest for Quality Awards2002 - 2014

Top Ten 3PL Excellence Award 2002 - 2014

Awards

2015 Top 100 For-Hire Carriers, Top 50 Logistics Companies,

Top 50 Freight Transportation Firms, Top 25 Freight Brokerage Firms

#1 - 2015 ACT Transport 50

#5 – 2014 Transport 50 “Best in Security” Award 2012Intermediary Category, Tier 1

Financial Results First Quarter

$115,443

$112,224

$110,000

$112,000

$114,000

$116,000

1Q15 1Q16

Gross Profit & Gross Margin (1)

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49.6%

(1) Gross profit equals revenue less the cost of purchased transportation and commission to agents. Gross margin equals gross profit divided by revenue.

(2) Operating margin equals operating income divided by gross profit.

(In thousands, except per share amounts)

15.1% 15.8%

49.1%

$762,380

$711,644

$600,000

$640,000

$680,000

$720,000

$760,000

$800,000

1Q15 1Q16

Revenue

$49,045

$47,932

$46,000

$47,000

$48,000

$49,000

$50,000

1Q15 1Q16

Operating Income & Operating Margin (2)

$0.67

$0.69

$0.66

$0.68

$0.70

1Q15 1Q16

Diluted Earnings Per Share

Financial Results Fiscal Year

$224,372

$241,706

$210,000

$225,000

$240,000

$255,000

2014 2015

Operating Income & Operating Margin (2)

$472,867

$499,488

$465,000

$475,000

$485,000

$495,000

$505,000

2014 2015

Gross Profit & Gross Margin (1)

5

48.4%

(1) Gross profit equals revenue less the cost of purchased transportation and commission to agents. Gross margin equals gross profit divided by revenue.

(2) Operating margin equals operating income divided by gross profit.

$3.07

$3.37

$2.90

$3.10

$3.30

$3.50

2014 2015

Diluted Earnings Per Share

(In thousands, except per share amounts)

14.8%

15.0%

47.4%

$3,184,790

$3,321,091

$3,000,000

$3,150,000

$3,300,000

$3,450,000

2014 2015

Revenue

2015 Financial ResultsStellar Returns

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ROE 31%

ROIC 25%

ROA 15%

Industries Served1Q 2016 Revenue by Commodity(As a Percentage of Revenue)

7

Consumer Products/ Appliances/Furniture 20.5

Machinery14.6

Automotive9.7

Other 24.2

Energy 2.8

Foodstuffs 5.5

AA&E, Hazmat 7.5

Metals 6.6Building Products 8.6

Certifications

ISO 9001:2008 Registered

9001:2008

9

Safety Culture

Total Accidents(per million miles driven)

1.911.82

2.01 2.00

2.14

1.60

1.70

1.80

1.90

2.00

2.10

2.20

2011 2012 2013 2014 2015

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0.69 0.690.60 0.57 0.52

0.00

0.20

0.40

0.60

0.80

2011 2012 2013 2014 2015

Cargo Claims RatioClaims per 1,000 Shipments

11

1Q 2015

1Q2016

Broker Carriers 40,320 45,271

BCOs (1) 8,478 8,889

Total 48,798 54,160

Number of Truck Capacity Providers

(1) Trucks provided by BCOs were 9,497 and 9,500 at March 2015 and March 2016, respectively.

BCO Truck Turnover

27.1%23.8%

27.0%

22.0%25.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2011 2012 2013 2014 2015

BCO Trailer Capacity(At December 26, 2015)

0

2,000

4,000

6,000

8,000

10,000

12,000

Reefers Heavy Steps Flats Vans

4961,468

11,423

1181,256

Business Model

14

Landstar

Capacity

AgentsCustomers

Capacity8,900 BCOs45,000 available carriersAll major U.S. rail linesOcean cargo carriersAir cargo carriersForeign correspondent networks Agents

Independent business ownersCustomer serviceCapacity sourcing / dispatchingNVOCC / IATA agents

Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a

network of agents, third party capacity owners and employees.

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From project

management to a

single load, we have a

solution for you.

Transportation Management Solutions

Truckload• Platform• Van• LTL• Expedited• Heavy Haul• Temperature-Controlled• Border Crossing

International• NVOCC / OTI• IATA / IAC• Customs brokerage• Project Cargo

Intermodal• Reliable, environmentally clean transportation • Transcontinental reach• Double-stack technology• Over 200,000 53’ containers additional capacity

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LTL Services

Landstar delivers cost effective, comprehensive Less-than-

Truckload Services throughout North America ensuring you receive the reliable service

you’ve come to expect from Landstar

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Access to a vast network of national,

inter-regional and regional carriers

Increased visibility and flexibility within

your supply chain

Access to the most reliable capacity at market competitive

rates

Alternative web-based automated rating and routing

tool with “click and ship” visibility of all

orders

Landstar Advantage as an LTL Brokerage Services Provider

• Nations' third largest premium ground provider

• Our Expedited Ground service is point to point, exclusive use

• No hubs or cargo transfers (99+% claim free)

• Highly secure, low risk with a service guarantee

• Real time tracking with on-board communication

• Available 24/7, nationwide

Ground Services

Cold Chain Services

• Clean Pharma Grade trailers

• Temperature controlled and

thermal mapped equipment

• Temperature monitoring

technology

• Door sensors track opening and

closing events

• Hard copy time / temperature

receipt at delivery

Equipment and Technology

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Intermodal Services

Cost Effective * Efficient * Safe * Reliable Environmentally Friendly

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Do you move freight in these markets?Landstar can provide full coverage solutions using Rail Intermodal

Intermodal Services

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Let our experts guide you through the challenges!Air, Ocean and Customs arrangements

International Services

With Landstar,We Support Your

Global NeedsDoor / Door• DDP/DAP Ops• DDP/DAP Pricing• Over-the-road transport

International Air• Freight Forwarder• IATA/CNS/TSA Accredited• Foreign to Foreign• Aircraft Charter• WW Air Door/Door Express

Global Agent Network • Preferred Partner Network

• WCA Family of Networks• Global Ocean Agency Lines

Total Cargo Solutions• Integrated Services• Customs Brokerage / Clearance /

Bonds• Cargo Tracking• Cargo Insurance

Ocean• FMC NVOCC / OTI / Freight

Forwarding• Safety / Trade Compliance• Project Cargo• Breakbulk / OOG• Containerized Cargo

Standard equipment Special equipment

• Less than Container Load

International Capabilities

Border Crossing – Mexico Services

• Door-to-door service into Mexico

• OTR, Rail Intermodal, Air, Ocean

• C-TPAT certified Mexican carriers

• Secure drop yards at all key border crossings

• New 50 acre/ 8,000 square foot facility being built in Laredo, TX

o 30 bay cross dock and transload facility

o 120 ton bridge crane to move freight flatbed to flatbed

• Brokerage and Forwarding services

• Consolidated invoicing

Border Crossing - Canada

Providing Cross Border and Intra-Canadian services

for more than 20 years

• Door-to-door service into Canada

• OTR, Rail Intermodal, Air, Ocean

• FAST-certified Canadian-domiciled owner-operators