TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

www.harriswilliams.com Investment banking services are provided by Harris W illiams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris W illiams & Co. Ltd, which is authorised and regulat ed bythe Financial Conduct Authority. Harris Williams & Co.is atrade name underwhich Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

WHAT WE’RE READING LOGISTICS | RETAILERS LEASE WAREHOUSE SPACE AT RECORD PACE Firms leased 70.1 million square feet of industrial space in the second quarter of 2016, the most in ov er 30 years of data and up 6% from the same quarter last y ear, real-estate brokerage Cu shman & Wakefield Inc. said in a report Monday. In a separate report, brokerage CBRE Inc. said warehouse availability declined for a 25th consecutiv e quarter to 8.8%. Wall Street Journal

TRUCKING | BUSIER SPOT MARKET MAY SIGNAL A U.S. TRUCK RATE SPIKE Pricing trends in the late second quarter may foreshadow a spike in higher transportation costs ahead for U.S. shippers. T ruckload spot market capacity got a bit tighter in June, and pricing climbed higher, as a seasonal increase in freight v olumes, coupled with the produce season and a nationwide roadside truck inspection program, filled more trailers. DAT’s av erage dry v an port market rates, excluding fuel su rcharges, rose from the mid-$1.30s into the $1.40s in June and shot up to $1.49 in the week ending July 9t h. This should be a warning to brokers and shippers that the excess layer of truck capacity depressin g transportation rates in the U.S. is not v ery thick or deep, and could dissipate quickly, especially as freight demand picks up this fall. Journal of Commerce

MARINE | LONG BEACH VOLUME RISES AS PEAK SEASON BEGINS Laden containerized imports in Long Beach increased 5.5% in June from the same month in 2015 to 313,526 twenty-foot-equiv alent units as the second-largest port transitions to the su mmer-fall peak-shipping season. Total container v olume in Lon g Beach, including laden export containers and empties, increased 3.4% compared with June 2015 to 603,339 TEUs. Loaded export containers declined slightly by 0.1% to 128,009 TEUs. Exports could remain weak if the dollar strengthen s against other curren cies as it has done in recent weeks, which would make U.S. exports more costly for ov erseas buyers. Journal of Commerce

RAIL | RAIL PICKS UP STEAM From consu mer goods to automobiles and perishable products, an increasin g number of shippers are findin g that transporting products v ia North America’s Class I railroads remains a cost-effectiv e method of transport. Rail and intermodal transportation prov iders say they are supporting the supply chain with faster deliv eries, infrastructure improv ements and improv ed tracking capabilities. At the same time, rail and intermodal prov iders are seein g an uptick in demand driv en by increased regulations within the trucking industry. SDC Executiv e

AIR | AIR CARGO FIRMS FEEL PRESSURE FROM LOWER FREIGHT PRICES Following a sharp fall in freight prices, air cargo companies are set to trim their fleet s and jobs further to battle ov ercapacity while looking for new partnerships and products to carry, industry executiv es and analysts say. Global trade volumes fell for the first time since 2009 by 1.7% between the final quarter of 2015 and the first quarter of 2016 and the International Air Transport Association has lowered its growth forecast for air freight demand in 2016 to 2.1% from 3%. And while the impact of Britain's Brexit v ote on the UK air freight market remains un certain, p rices for air freight generally are down about 15-20% compared with last year due to capacity outstripping demand by a factor of three. Reuters

CONTENTS  M &A TRANSACTIONS  PUBLIC M ARKETS OVERVIEW  STOCK PRICE PERFORM ANCE  OUR GROUP

CONTACTS UNITED STATES Frank Mountcastle M anaging Director [email protected] +1 (804) 915-0124 Jason Bass M anaging Director jbass@harrisw illiams.com +1 (804) 915-0132 Joe Conner M anaging Director jconner@harrisw illiams.com +1 (804) 915-0151 Jeff Burkett Director [email protected] +1 (804) 932-1334 Jershon Jones Director jjones@harrisw illiams.com +1 (804) 932-1356 Jeff Kidd Vice President jkidd@harrisw illiams.com +1 (804) 915-0178 James O’Malley Vice President [email protected] +1 (804) 915-0165

EUROPE Jeffery Perkins M anaging Director jperkins@harrisw illiams.com +49 (0) 69 3650638 00

www.harriswilliams.com

PAGE | 1

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

M&A TRANSACTIONS RECENT M&A TRANSACTIONS1,2 Date

Sector

7/18/2016

Logistics

Span Alaska

Target

Prov ides LCL freight consolidation and forw arding serv ices to Alaska.

Matson Logistics, I nc.

7/16/2016

Logistics

Farren I nternational, LLC

Prov ides transportation, rigging and related v alue-added solutions such as w arehousing and kitting.

EZE Truck Holdings, I nc.

7/7/2016

Logistics

Global Transportation Serv ices, I nc.

Prov ides freight forw arding and 3PL logistics.

American Fast Freight

7/5/2016

Logistics

Jones Motor Group

Prov ides flatbed, heav y haul, dry v an, refrigerated and LTL transportation serv ices.

Transport I nv estments, I nc.

6/29/2016

Marine

R.S. Stern, I nc.

Prov ides custom, last mile logistics serv ices to supply critical perishable goods and required deck and engine products.

Ship Supply I nternational

6/21/2016

Logistics

Dematic

Prov ides supply chain optimisation and automation.

KI ON Group

6/20/2016

Logistics

G-Force Shipping

Prov ides transportation management serv ices.

Blue-Grace Logistics LLC

6/9/2016

Logistics

American Global Logistics LLC

Prov ides customized logistics solutions and offers end-to-end ocean and air transportation.

NexPhase Capital

6/3/2016

Logistics

I sotank Transport Serv ices Ltd.

Prov ides container transport, cleaning, and depot serv ices.

Quality Distribution, I nc.

6/2/2016

Trucking

Lodeso, I nc.

Prov ides last-mile deliv ery serv ices.

Schneider National, I nc.

6/2/2016

Trucking

Watkins & Shepard Trucking, I nc.

Prov ides LTL, dry v an, flatbed, and freight management serv ices.

Schneider National, I nc.

6/1/2016

Marine

Apex Maritime Co., I nc.

Prov ides ocean, air, customer brokerage logistics, and freight solutions.

Kerry Logisics Netw ork Ltd.

6/1/2016

Logistics

Prov ides logistics serv ices including flatbed, rail-intermodal, LTL, TL, and freight management.

CAI I nternational, I nc.

5/12/2016

Equipment

Hybrid Logistics, I nc. and General Transportation Serv ices, I nc. Direct ChassisLink, I nc.

Prov ides chassis leasing and chassis / container management serv ices.

EQT I nfrastructure Partners

5/11/2016

Rail

Heart of Texas Railraod LP

Operates railw ay track betw een Lometa and Brady in Texas.

BROE Management Co. LLC

5/9/2016

Rail

Designer and manufacturer of railcar and railroad track products.

Westinghouse Air Brake Technologies Corporation

5/2/2016

Logistics

UNI TRAC Railroad Materials, I nc. and Pride Bodies Ltd LeanLogistics, I nc.

Prov ides SaaS transportation management system applications and supply chain serv ices.

Kew ill plc

4/29/2016

Logistics

pixi* Softw are GmbH

Prov ides softw are solutions and applications for logistics businesses.

The Descartes Systems Group I nc

4/14/2016

Marine

Maher Terminals USA, LLC

Ow ns and operates a multi-user container terminal in Port Elizabeth, New Jersey.

Macquarie I nfrastructure Partners I nc.

Business Description

Acquirer

*Denot es pending t ransactions

PAGE | 2

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA

TEV / 2016E EBITDA

Logistics Providers

10.6x

Rail & Rail Services Marine Trucking Transportation Equipment

Rail & Rail Services

9.0x

Logistics Providers

7.4x

4.8x

AVERAGE REVENUE GROWTH (2012 – 2015) Rail & Rail Services 5.3%

Logistics Providers

4.7% 3.4%

5.4x

Transportation Equipment

5.3x

Logistics Providers

17.0%

Trucking

15.9%

Rail & Rail Services

14.5%

Logistics Providers

8.3% 2.7%

5.7%

Trucking

1.7%

Transportation Equipment

1.2%

Rail & Rail Services

AVERAGE EBITDA GROWTH (2012 – 2015)

Marine

Trucking

Marine

(0.0%)

Transportation Equipment

7.0x

AVERAGE REVENUE GROWTH (2015 – 2017P) 7.2%

Trucking

Marine

8.6x

Marine

5.5x

Transportation Equipment

9.1x

(5.2%) (6.6%)

AVERAGE EBITDA GROWTH (2015 – 2017P) Logistics Providers

12.6%

Marine Trucking Transportation Equipment Rail & Rail Services

5.2% 2.6% 0.1% (6.0%)

PAGE | 3

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH)

MEDIAN % CHANGE (12 MONTH)

Trucking

3.9%

S&P 500

Rail & Rail Services

3.7%

Logistics Providers

S&P 500 Logistics Providers

2.7%

Marine

(6.1%)

Rail & Rail Services

(0.6%)

Transportation Equipment

2.5%

(13.1%)

Marine (4.3%)

Trucking

(6.3%)

Transportation Equipment

(22.1%) (24.6%) (28.3%)

TRAILING TWELVE MONTHS (Indexed t o July 15, 2015)

10% 5% 0% (5%) (10%) (15%) (20%) (25%) (30%) (35%) (40%) (45%) Jul-15-2015

Oct-15-2015

Jan-15-2016

Apr-15-2016

Jul-15-2016

Logistics Providers

Trucking

Rail and Rail Services

Marine

Transportation Equipment

S&P 500 Index

PAGE | 4

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

OUR GROUP Harris Williams & Co. is a leading adv isor to the t ransportation and logistics M&A market. Our Transportation & Logistics Group serv es companies in a broad range of attractiv e niches, including third-party logistics (3PL), tru ck, rail, marine and air transportation, transportation equipment, and the automotiv e and heav y duty v ehicle market.

RECENTLY CLOSED T&L TRANSACTIONS

has merged with a portfolio company of

a portfolio company of an operating company of

has been acquired by

in a recapitalization by

a portfolio company of

a portfolio company of

has acquired has been acquired by

has been acquired by

has been acquired by a portfolio company of

and

RCL Services Group in partnership with a portfolio company of

a portfolio company of

a portfolio company of

a portfolio company of

and

a portfolio company of

has sold and

has been acquired by

has been acquired by

has been acquired by

has been acquired by

to

has been acquired by

DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION

PAGE | 5

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries Aerospace, Defense & Government Services

Building Products & M aterials

Business Services

Consumer

Energy, Pow er & Infrastructure

Healthcare & Life Sciences

Industrials

Specialty Distribution

Technology, M edia & Telecom

Transportation Transportation & Logistics Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS UNITED STATES

EUROPE

Boston

Richmond (Headquarters)

Frankfurt

Cleveland

San Francisco

London

Tw o International Place 24th Floor Boston, M assachusetts 02110 Phone: +1 (617) 482-7501 1900 East 9th Street 20th Floor Cleveland, Ohio 44114 Phone: +1 (216) 689-2400

1001 Hax all Point 9th Floor Richmond, Virginia 23219 Phone: +1 (804) 648-0072

575 M arket Street 31st Floor San Francisco, California 94105 Phone: +1 (415) 288-4260

Bockenheimer Landstrasse 33-35 60325 Frankfurt Germany Phone: +49 069 3650638 00 63 Brook Street London W1K 4HS, England Phone: +44 (0) 20 7518 8900

Minneapolis

222 South 9th Street Suite 3350 M inneapolis, M innesota 55402 Phone: +1 (612) 359-2700

NETWORK OFFICES Beijing

New Delhi

Hong Kong

Shanghai

Mumbai

PAGE | 6

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC COMPARABLES ($ in millions except per share data)

Stock Price Current

TEV

Stock Performance Change from Prior Month Prior Year

High

52-Week % of High

Jul-15

TEV / LTM EBITDA as of Jan-16 Current

TEV / EBITDA 2016E 2017P

Transportation & Logistics

Logistics Providers Agility Public Warehousing Co. K.S.C.

$1,831

$1.56

(3.4%)

(27.5%)

$2.21

70.2%

9.6x

5.5x

6.0x

1,250

14.11

3.8%

33.0%

15.53

90.9%

5.1x

4.7x

6.2x

Air Transport Services Group, Inc. Atlas Air Worldwide Holdings, Inc.

NA 5.8x

NA 4.9x

2,597

42.79

(7.0%)

(19.2%)

57.77

74.1%

7.3x

8.5x

10.6x

6.1x

5.6x

C.H. Robinson Worldwide, Inc.

11,199

72.45

(0.7%)

11.8%

76.10

95.2%

12.1x

10.6x

11.9x

11.6x

11.1x

Deutsche Post AG

38,956

28.40

(3.0%)

(9.3%)

31.71

89.6%

12.8x

11.5x

12.6x

7.2x

6.8x

9,276

42.00

(4.0%)

23.8%

46.66

90.0%

12.3x

12.3x

17.3x

15.2x

12.6x

13.3x

14.7x

10.3x

8.5x

9.6x

10.8x

11.3x

10.7x

DSV A/S Echo Global Logistics, Inc Expeditors International of Washington, Inc. FedEx Corporation

856

23.50

2.7%

(28.6%)

33.43

70.3%

8,138

49.99

1.5%

8.9%

51.80

96.5%

10.9x

NM

50,273

159.95

(0.6%)

(6.4%)

173.00

92.5%

10.6x

8.0x

9.2x

6.1x

5.6x

Forward Air Corporation

1,419

45.28

(0.7%)

(14.8%)

53.30

85.0%

14.0x

10.8x

10.0x

9.1x

8.2x

Hub Group, Inc. Class A

1,366

40.61

1.9%

(2.7%)

44.00

92.3%

10.8x

6.6x

8.2x

8.1x

7.7x

J.B. Hunt Transport Services, Inc.

10,682

85.32

5.4%

(0.5%)

89.43

95.4%

11.0x

8.4x

9.9x

9.6x

8.8x

Kuhne & Nagel International AG

15,738

138.91

(1.8%)

4.4%

147.27

94.3%

14.8x

13.7x

14.7x

13.8x

13.2x

Landstar System, Inc.

2,956

71.05

8.1%

3.0%

73.60

96.5%

11.0x

9.2x

11.5x

11.7x

11.0x

Panalpina Welttransport (Holding) AG

2,458

119.57

(1.6%)

(2.9%)

131.39

91.0%

13.6x

11.8x

13.7x

13.3x

10.8x

735

8.51

11.8%

(67.4%)

26.95

31.6%

10.3x

6.0x

6.3x

6.0x

5.3x

9,121

67.06

2.1%

(26.9%)

93.86

71.4%

6.4x

4.9x

5.4x

5.0x

4.7x

Roadrunner Transportation Systems, Inc. Ryder System, Inc. TransForce Inc. United Parcel Service, Inc. Class B

2,586

19.00

0.6%

(6.1%)

20.69

91.8%

10.2x

8.4x

8.0x

7.6x

7.3x

107,793

110.29

5.5%

12.8%

110.74

99.6%

11.8x

9.8x

11.2x

10.3x

9.8x

603

13.89

(3.6%)

(37.3%)

22.58

61.5%

7.5x

5.5x

5.7x

5.8x

5.4x

8,659

27.17

(6.2%)

(41.0%)

47.30

57.4%

16.1x

12.8x

7.0x

6.0x

(0.6%)

(6.1%)

9.2x

10.6x

8.6x

8.0x

Universal Logistics Holdings, Inc. XPO Logistics, Inc. Median

90.9%

NM 10.9x

Trucking ArcBest Corporation

$452

$17.58

4.1%

(45.3%)

$34.97

50.3%

4.4x

2.9x

2.8x

3.2x

2.7x

Celadon Group, Inc.

773

8.61

(13.9%)

(61.2%)

22.95

37.5%

9.2x

6.1x

6.4x

5.7x

5.8x

Covenant Transportation Group, Inc. Class A

547

19.82

(12.1%)

(25.9%)

27.27

72.7%

5.3x

3.8x

3.8x

4.8x

4.5x

Heartland Express, Inc.

1,442

18.11

(0.4%)

(11.6%)

22.13

81.8%

8.2x

7.1x

7.4x

7.2x

6.7x

Knight Transportation, Inc.

2,386

28.25

6.4%

(2.4%)

29.00

97.4%

8.7x

6.8x

8.6x

8.6x

7.9x

703

21.56

8.6%

(2.9%)

22.88

94.3%

6.1x

4.7x

5.4x

5.1x

4.7x

5,454

63.53

5.8%

(6.6%)

74.86

84.9%

9.1x

7.1x

8.0x

8.1x

7.3x

P.A.M. Transportation Services, Inc.

242

17.56

(4.0%)

(71.5%)

61.87

28.4%

8.4x

4.7x

4.0x

3.8x

3.5x

Saia, Inc.

793

26.60

3.8%

(34.9%)

45.24

58.8%

7.1x

3.7x

5.2x

5.2x

4.8x

3,409

16.69

6.1%

(30.1%)

24.76

67.4%

7.6x

5.1x

5.7x

5.5x

5.1x

Universal Logistics Holdings, Inc.

603

13.89

(3.6%)

(37.3%)

22.58

61.5%

7.5x

5.5x

5.7x

5.8x

5.4x

USA Truck, Inc.

291

19.92

5.1%

(7.9%)

24.00

83.0%

5.0x

4.7x

5.6x

6.1x

5.6x

1,807

24.22

(1.5%)

(12.4%)

29.34

82.5%

6.0x

4.2x

4.6x

5.3x

4.9x

1,184

10.21

13.3%

(23.3%)

21.37

3.9%

(24.6%)

Marten Transport, Ltd. Old Dominion Freight Line, Inc.

Swift Transportation Company Class A

Werner Enterprises, Inc. YRC Worldwide Inc. Median

47.8%

4.7x

4.7x

4.5x

3.8x

3.4x

70.0%

7.3x

4.7x

5.5x

5.4x

5.0x

PAGE | 7

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC COMPARABLES ($ in millions except per share data)

Stock Price Current

TEV

Stock Performance Change from Prior Month Prior Year

High

52-Week % of High

Jul-15

TEV / LTM EBITDA as of Jan-16 Current

TEV / EBITDA 2016E 2017P

Transportation & Logistics

Rail and Rail Services American Railcar Industries, Inc.

$1,191

$41.97

3.6%

(9.6%)

$57.93

72.4%

5.7x

4.5x

4.7x

6.0x

7.1x

Canadian National Railway Company

55,576

61.21

3.3%

5.6%

66.26

92.4%

10.3x

9.7x

11.0x

11.1x

10.5x

Canadian Pacific Railway Limited

27,088

136.50

4.9%

(12.9%)

163.00

83.7%

11.5x

9.9x

11.3x

10.6x

10.0x

CSX Corporation

35,432

27.02

0.9%

(15.3%)

33.10

81.6%

8.3x

6.8x

7.6x

7.9x

7.5x

93

15.42

7.8%

(27.4%)

24.95

61.8%

5.7x

1.9x

1.5x

2.6x

3.7x

Genesee & Wyoming, Inc. Class A

5,858

62.92

(0.4%)

(13.2%)

76.34

82.4%

10.9x

8.6x

10.1x

10.2x

9.4x

Greenbrier Companies, Inc.

1,255

31.60

10.2%

(34.5%)

48.86

64.7%

5.5x

2.3x

2.5x

2.8x

4.3x

Kansas City Southern

12,532

91.30

3.2%

(3.0%)

101.24

90.2%

11.4x

9.3x

11.4x

11.2x

10.2x

Norfolk Southern Corporation

35,618

88.42

5.1%

2.3%

98.75

89.5%

8.2x

8.2x

8.8x

8.7x

8.1x

5,828

20.90

14.6%

(19.1%)

30.38

68.8%

4.8x

3.9x

4.1x

5.9x

6.9x 8.9x

FreightCar America, Inc.

Trinity Industries, Inc. Union Pacific Corporation

90,467

92.06

3.7%

(5.2%)

99.71

92.3%

9.1x

7.7x

9.2x

9.6x

7,011

72.52

(3.5%)

(24.0%)

103.07

70.4%

14.7x

9.1x

10.2x

10.5x

9.8x

3.7%

(13.1%)

82.0%

8.7x

8.0x

9.0x

9.1x

8.5x

10.8x

10.8x

7.1x

6.5x

6.3x

6.3x

6.5x

6.8x

Westinghouse Air Brake Technologies Corporation Median Marine Aegean Marine Petroleum Network Inc. Costamare Inc. Diana Shipping Inc.

$872

$6.41

6.5%

(49.0%)

$12.67

50.6%

2,063

8.64

(12.6%)

(52.4%)

18.93

45.6%

NM 9.1x

668

2.78

17.3%

(63.5%)

8.27

33.6%

Kirby Corporation

4,139

63.92

(9.3%)

(18.4%)

78.72

81.2%

8.3x

Matson, Inc.

1,950

34.00

2.2%

(21.6%)

53.18

63.9%

Neptune Orient Lines Limited

5,336

0.96

0.6%

48.0%

0.97

99.0%

Nordic American Tankers Limited

1,550

14.17

(10.4%)

(6.3%)

17.45

81.2%

10.0x

7.3x

7.2x

7.9x

9.0x

227

1.05

(19.2%)

(67.4%)

3.24

32.5%

7.7x

7.8x

7.0x

7.0x

6.2x

SEACOR Holdings Inc.

1,553

58.14

(3.3%)

(15.0%)

69.75

83.4%

9.6x

8.7x

Wilh. Wilhelmsen ASA

1,820

2.42

(17.2%)

(22.7%)

6.02

40.2%

(6.3%)

(22.1%)

Rand Logistics, Inc.

Median

57.3%

NM

NM

NM

NM

5.8x

7.6x

8.8x

10.0x

7.0x

6.6x

6.6x

9.8x

15.2x

NM 9.6x

NM

NM 8.3x 6.2x

NM

10.2x

8.9x

10.5x

11.4x

12.4x

18.8x

4.8x

5.0x

7.8x

7.4x

7.0x

6.8x

Transportation Equipment $381

$1.30

(16.7%)

(65.4%)

$4.19

31.0%

5.9x

4.7x

5.4x

5.3x

5.6x

Dana Holding Corporation

Accuride Corporation

2,572

11.33

(5.4%)

(43.9%)

20.49

55.3%

5.7x

4.2x

4.0x

4.1x

3.9x

Gentherm Incorporated

1,300

36.63

(3.3%)

(28.3%)

51.83

70.7%

13.4x

9.6x

8.2x

7.7x

7.0x

223

7.44

22.0%

68.3%

7.49

99.3%

11.3x

1,006

13.47

(4.3%)

7.9%

14.97

90.0%

6.1x

4.1x

(4.3%)

(28.3%)

70.7%

6.1x

4.4x

Spartan Motors, Inc. Wabash National Corporation Median

NM

NM

15.4x

9.8x

4.2x

4.3x

5.2x

4.8x

5.3x

5.6x

PAGE | 8

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC COMPARABLES ($ in millions)

2012

2013

Revenue 2014 2015

$5,061

$4,846

$4,767

$4,330

607

580

590

619

2016E

2017P

Avg. Revenue Growth '12-15 '15-17P

2012

2013

EBITDA 2014 2015

2016E

2017P

Avg. EBITDA Growth '12-15 '15-17P

Transportation & Logistics

Logistics Providers Agility Public Warehousing Co. K.S.C. Air Transport Services Group, Inc. Atlas Air Worldwide Holdings, Inc.

NA 725

NA

$258

$289

$276

$292

759

0.6%

10.7%

157

158

179

198

216

NA

(5.1%)

NA

4.2%

NA

266

NA

8.0%

15.9%

(2.9%)

27.0%

1,646

1,657

1,799

1,823

1,928

2,084

3.5%

6.9%

296

292

327

271

400

438

C.H. Robinson Worldwide, Inc.

11,359

12,752

13,470

13,476

13,300

14,280

5.9%

2.9%

723

740

805

925

969

1,021

8.5%

5.1%

Deutsche Post AG

71,303

73,132

75,117

65,681

66,304

67,818

(2.7%)

1.6%

3,517

3,887

4,198

2,984

5,415

5,726

(5.3%)

38.5%

7,750

8,137

8,645

7,563

10,386

10,859

(0.8%)

19.8%

530

543

560

532

615

742

0.1%

18.1%

758

884

1,173

1,512

1,746

2,035

25.9%

16.0%

34

34

44

54

82

99

16.5%

35.6%

5,981

6,080

6,565

6,617

6,148

6,506

3.4%

(0.8%)

571

600

644

767

726

761

10.4%

(0.4%)

44,287

45,567

47,453

50,365

52,377

62,684

4.4%

11.6%

5,597

6,033

4,951

5,708

8,248

8,977

0.7%

25.4%

DSV A/S Echo Global Logistics, Inc Expeditors International of Washington, Inc. FedEx Corporation Forward Air Corporation

584

652

781

959

1,013

1,079

18.0%

6.1%

105

109

128

128

155

174

7.0%

16.4%

Hub Group, Inc. Class A

3,124

3,374

3,571

3,526

3,514

3,694

4.1%

2.4%

134

137

136

154

168

178

4.8%

7.5%

J.B. Hunt Transport Services, Inc.

5,055

5,585

6,165

6,188

6,576

7,220

7.0%

8.0%

759

825

920

1,054

1,111

1,229

11.6%

8.0%

Kuhne & Nagel International AG

18,248

18,529

19,118

17,376

21,248

22,241

(1.6%)

13.1%

956

1,028

1,073

1,062

1,138

1,197

3.6%

6.2%

Landstar System, Inc.

2,793

2,665

3,185

3,321

3,123

3,309

5.9%

(0.2%)

232

203

276

269

252

272

5.1%

0.4%

Panalpina Welttransport (Holding) AG

7,053

7,289

7,327

6,081

5,643

5,840

(4.8%)

(2.0%)

102

172

205

179

186

227

20.7%

12.6%

Roadrunner Transportation Systems, Inc.

1,073

1,361

1,873

1,995

1,970

2,069

23.0%

1.8%

81

103

125

130

123

138

17.0%

3.2%

Ryder System, Inc.

6,257

6,419

6,639

6,572

6,777

7,091

1.7%

3.9%

1,299

1,361

1,505

1,660

1,835

1,927

8.5%

7.7%

TransForce Inc.

3,141

3,018

3,363

3,150

3,068

3,122

0.1%

(0.4%)

386

319

372

332

337

355

(4.9%)

3.3%

54,064

55,491

58,256

58,050

60,758

63,772

2.4%

4.8%

3,100

8,765

6,889

9,429

10,497

11,022

44.9%

8.1%

1,037

1,033

1,192

1,129

1,107

1,171

2.9%

1.8%

87

123

114

108

103

110

7.4%

0.9%

279 $251,461

702 $259,756

2,357 $273,405

7,623 $267,955

15,029 $282,740

16,125 $303,756

NM 4.7%

NM 5.7%

92 $23,820

474 $26,712

1,241 $33,816

1,440 $36,299

NM 8.3%

NM 12.6%

ArcBest Corporation

$2,066

$2,300

$2,613

$2,667

$2,686

$2,822

8.9%

2.9%

$71

$107

$154

$167

$141

$169

33.0%

0.8%

Celadon Group, Inc.

599

614

742

901

1,060

1,060

14.6%

8.5%

94

99

87

117

139

130

7.7%

5.3%

Covenant Transportation Group, Inc. Class A

674

685

719

724

660

701

2.4%

(1.7%)

63

63

89

143

112

118

31.2%

(9.0%)

Heartland Express, Inc.

546

582

871

736

663

696

10.5%

(2.8%)

138

149

208

193

198

213

12.0%

4.9%

Knight Transportation, Inc.

936

969

1,102

1,183

1,144

1,241

8.1%

2.4%

193

193

256

281

277

302

13.3%

3.7%

Marten Transport, Ltd.

638

659

673

665

681

747

1.4%

6.0%

101

110

115

127

135

146

7.7%

7.2%

2,110

2,338

2,788

2,972

3,002

3,251

12.1%

4.6%

396

466

606

676

671

741

19.5%

4.7%

381

403

411

417

408

421

3.1%

0.5%

41

50

55

63

64

69

15.3%

4.6%

Saia, Inc.

1,099

1,139

1,272

1,221

1,207

1,267

3.6%

1.8%

106

125

145

155

151

167

13.5%

3.6%

Swift Transportation Company Class A

3,493

4,118

4,299

4,229

4,075

4,298

6.6%

0.8%

528

577

583

611

600

651

5.0%

3.2%

Universal Logistics Holdings, Inc.

1,037

1,033

1,192

1,129

1,107

1,171

2.9%

1.8%

87

123

114

108

103

110

7.4%

0.9%

512

555

602

508

456

498

(0.3%)

(1.0%)

20

41

60

56

46

49

41.6%

(6.4%)

2,036

2,029

2,139

2,094

2,003

2,107

0.9%

0.3%

328

305

316

393

335

369

6.1%

4,851 $20,979

4,865 $22,289

5,069 $24,492

4,832 $24,279

4,694 $23,845

4,830 $25,109

(0.1%) 5.3%

(0.0%) 1.7%

198 $2,366

205 $2,613

197 $2,984

259 $3,349

314 $3,285

348 $3,582

9.3% 15.9%

United Parcel Service, Inc. Class B Universal Logistics Holdings, Inc. XPO Logistics, Inc. Total

(25) $18,900

(17) $25,705

Trucking

Old Dominion Freight Line, Inc. P.A.M. Transportation Services, Inc.

USA Truck, Inc. Werner Enterprises, Inc. YRC Worldwide Inc. Total

(3.1%) 16.0% 2.6%

*Excluded from averages

PAGE | 9

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

PUBLIC COMPARABLES ($ in millions)

2012

2013

Revenue 2014 2015

2016E

2017P

Avg. Revenue Growth '12-15 '15-17P

2012

EBITDA 2014 2015

2013

2016E

Avg. EBITDA Growth '12-15 '15-17P

2017P

Transportation & Logistics

Rail and Rail Services American Railcar Industries, Inc.

$712

$751

$733

$889

$635

$526

7.7%

(23.1%)

$146

$179

$204

$273

$201

$170

23.2%

(21.1%)

Canadian National Railway Company

9,923

10,263

10,986

9,857

9,348

9,843

(0.2%)

(0.1%)

4,611

4,710

5,137

5,021

5,008

5,293

2.9%

2.7%

Canadian Pacific Railway Limited

5,697

5,952

5,994

5,246

4,958

5,199

(2.7%)

(0.5%)

1,800

2,340

2,640

2,431

2,550

2,720

10.5%

5.8%

11,756

12,026

12,669

11,811

10,811

11,263

0.2%

(2.3%)

4,422

4,534

4,764

4,792

4,489

4,777

2.7%

(0.2%) (30.0%)

CSX Corporation FreightCar America, Inc.

677

290

599

773

594

495

4.5%

(20.0%)

41

17

51

35

25

7.9%

Genesee & Wyoming, Inc. Class A

875

1,569

1,639

2,000

1,982

2,061

31.7%

1.5%

277

533

579

586

575

618

28.4%

2.7%

1,812

1,755

2,203

2,605

2,717

2,054

12.9%

(11.2%)

157

143

237

430

466

294

40.0%

(17.3%) 5.9%

Greenbrier Companies, Inc. Kansas City Southern Norfolk Southern Corporation Trinity Industries, Inc. Union Pacific Corporation Westinghouse Air Brake Technologies Corporation Total

(4)

2,239

2,369

2,577

2,419

2,374

2,541

2.6%

2.5%

872

962

1,106

1,098

1,123

1,233

8.0%

11,040

11,245

11,624

10,511

9,923

10,414

(1.6%)

(0.5%)

4,040

4,173

4,526

3,938

4,114

4,371

(0.8%)

5.4%

3,812

4,365

6,170

6,393

4,646

3,767

18.8%

(23.2%)

730

963

1,402

1,528

982

836

27.9%

(26.0%)

20,926

21,963

23,988

21,813

19,941

20,938

1.4%

(2.0%)

8,505

9,223

10,657

10,064

9,427

10,175

5.8%

2,391 $71,860

2,566 $75,115

3,044 $82,227

3,308 $77,625

3,224 $71,154

3,268 $72,367

11.4% 7.2%

(0.6%) (6.6%)

436 $26,035

489 $28,243

588 $31,857

701 $30,912

667 $29,634

687 $31,200

17.1% 14.5%

0.6% (1.0%) (6.0%)

Marine Aegean Marine Petroleum Network Inc.

$7,259

$6,335

$6,662

$4,232

$3,579

$4,045

(16.5%)

(2.2%)

$102

$84

$54

$81

$124

$140

(7.5%)

Costamare Inc.

386

414

484

490

458

449

8.3%

(4.4%)

246

267

330

325

315

308

9.8%

(2.7%)

Diana Shipping Inc.

221

164

176

158

107

146

(10.6%)

(3.8%)

121

55

52

28

(19)

(38.5%)

(44.7%) (7.0%)

9

31.4%

Kirby Corporation

2,113

2,242

2,566

2,148

1,824

1,880

0.5%

(6.4%)

507

582

646

573

470

496

4.2%

Matson, Inc.

1,560

1,637

1,714

1,885

1,946

2,030

6.5%

3.8%

175

182

203

298

295

319

19.5%

3.5%

Neptune Orient Lines Limited

9,512

8,831

8,617

5,383

4,729

5,095

(17.3%)

(2.7%)

90

142

353

321

225

504

53.0%

25.3%

Nordic American Tankers Limited

131

244

351

446

282

287

50.5%

(19.8%)

13

(7)

74

211

188

175

NM

Rand Logistics, Inc.

157

156

153

148

127

136

(1.8%)

(4.3%)

28

33

34

32

32

37

4.5%

SEACOR Holdings Inc.

1,581

1,247

1,319

1,055

887

913

(12.6%)

(7.0%)

235

197

245

150

136

178

(14.0%)

9.0%

Wilh. Wilhelmsen ASA Total

395 $23,314

325 $21,595

285 $22,327

313 $16,257

2,228 $16,166

2,256 $17,237

(7.5%) (0.0%)

NM (5.2%)

226 $1,743

170 $1,704

134 $2,125

186 $2,205

385 $2,151

362 $2,527

(6.3%) 2.7%

39.5% 5.2%

(8.8%) 6.0%

Transportation Equipment Accuride Corporation

$930

$643

$705

$686

$662

$670

(9.7%)

(1.1%)

$50

$43

$75

$77

$70

$74

15.6%

(1.9%)

7,224

6,769

6,617

6,060

5,770

5,877

(5.7%)

(1.5%)

753

706

705

654

631

653

(4.6%)

(0.1%)

Gentherm Incorporated

555

662

812

856

952

1,038

15.6%

10.1%

68

83

135

155

169

187

31.4%

9.7%

Spartan Motors, Inc.

471

470

507

550

577

602

5.4%

4.6%

16

6

10

0

15

23

NM

NM

1,462 $10,641

1,636 $10,179

1,863 $10,504

2,027 $10,180

1,934 $9,894

1,790 $9,977

11.5% 3.4%

(6.0%) 1.2%

110 $997

142 $981

161 $1,086

219 $1,105

232 $1,117

188 $1,124

25.7% 17.0%

(7.3%) 0.1%

Dana Holding Corporation

Wabash National Corporation Total

PAGE | 10

TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2016

TRANSPORTATION & LOGISTICS SOURCES 1.

Fact Set .

2.

MergerMarket.

DISCLOSURES Harris W illiams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on t he advisory needs of clients worldwide. The firm has deep indust ry knowledge, global t ransaction expertise, and an unw avering commitment t o excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring adv isory, board advisory, private placements, and capital markets advisory services. I nv estment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FI NRA and SI PC, and Harris Williams & Co. Lt d, w hich is aut horised and regulated by t he Financial Conduct Authority. Harris Williams & Co. is a t rade name under w hich Harris Williams LLC and Harris W illiams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The informat ion and v iew s contained in t his report w ere prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such t erm is defined by applicable law and regulat ions, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicit ation of an offer t o buy or sell any financial instruments or to participate in any particular trading strategy. The informat ion cont ained herein is believ ed by Harris Williams t o be reliable, but Harris Williams makes no representation as t o the accuracy or completeness of such information. Harris W illiams and/or its affiliates may be market makers or specialists in, act as advisers or lenders t o, have positions in and effect transactions in securities of companies ment ioned herein and also may provide, may hav e provided, or may seek t o provide investment banking services for those companies. I n addit ion, Harris Williams and/or it s affiliates or t heir respective officers, directors and employees may hold long or short positions in t he securit ies, options t hereon or other related financial products of companies discussed herein. Opinions, estimates and projections in t his report const it ute Harris Williams’ judgment and are subject t o change w ithout notice. The financial instrument s discussed in t his report may not be suitable for all inv est ors, and inv estors must make t heir ow n investment decisions using their own independent adv isors as they believe necessary and based upon t heir specific financial situat ions and inv estment objectives. Also, past performance is not necessarily indicative of future results. No part of this mat erial may be copied or duplicat ed in any form or by any means, or redistribut ed, w ithout Harris Williams’ prior w ritten consent. Copyr ight © 2016 Harris Williams & Co., all right s reserved.

PAGE | 11