2Transportation & Logistics Solutions Supply Chain ManagementTransportation ServicesOptimization - order-to-cash processTruckload / Less Than TruckloadFreight Under Management ServicesVan, Flatbed, Heavy - SpecializedFreight optimizationPlanned & Unplanned ShipmentsShipment visibilityEmergency / Expedited – ground & airEvent managementAir CharterWarehousing – North America network long-term, short-term, refrigerated & dedicatedOcean – container, roll on/roll off and project cargoManagement ReportingRail Intermodal – boxcar, bulk, flatcar, tank, private equipmentLandstar solutions range from Complete Supply Chain Management to Traditional Transportation Services.
3Top Ten 3PL Excellence Award Quest for Quality Award Landstar named one of “America's Most Admired Companies”- seven consecutive years ranked #1 in Trucking CategoryAlong the way we’ve won several awards.Forbes Magazine named Landstar the ‘Best Managed’ Transportation Company in America in and Fortune ranked Landstar #1 in the Trucking Category.And, as proud as we are of that, it pales in comparison to Landstar’s unmatched safety record.Top Ten 3PL Excellence AwardQuest for Quality AwardInformationWeek 500 Award Winner Innovation in Technology13 consecutive years
4Financial Results Income Statement Data (Dollars in Millions, except Per Share Amounts) 20102011IncreaseRevenue$2,400$2,64910%Gross Profit (1)$394$432Operating Income$140$18331%Diluted EPS$1.77$2.3834%Operating Margin (2)35%42%We’re proud of our success at Landstar.Satisfied customers, just like you, have helped Landstar grow our revenue, while growing theirs.Revenue less the cost of purchased transportation and agent commission.Operating income divided by gross profit.
6Certifications 9001:2008 ISO 9001:2008 Registered With processes in place including ISO Certification, and as a member in good standing of Responsible Care and SmartWay, Landstar ensures your freight is picked up, transported, and delivered while employing monitored quality processes that protect your freight, your customer, and the environment.9001:2008
7DOT Recordable Accidents (per million miles driven) When you choose Landstar as your transportation provider, you’ve chosen ‘Safety First’. Safety for your loved ones, the motoring public, and for your freight.Landstar finished 2011 with an accident frequency of 1.91 accidents per million miles travelled, the lowest in Landstar history. DOT accident frequency was 0.43 accidents per million miles travelled, also the lowest in our history.Safety for your loved ones, the motoring public, and for your freight.
8Cargo Claims Ratio Claims per 1000 Shipments Landstar has an unmatched record for delivering your freight on time, and with care.
9Truck Capacity Provider Network We’re probably best known for transporting your freight by truck. Our ability to fully support your trucking needs isn’t limited to Landstar equipment. We supplement our fleet by utilizing over 28,000, highly qualified, third party capacity providers. This ensures Landstar’s ability to meet and exceed your transportation needs everyday.
10BCO Truck TurnoverWhy is a Landstar truck so important to your business? Not only are Landstar BCOs the safest, most professional truck drivers in the industry, they’re also the most reliable Owner Operators you can trust with your shipment. While most of our competitors experience a turnover rate over 100% annually, Landstar’s turnover rate is the lowest in the industry. Every shipment you tender to a Landstar BCO is handled carefully by a professional who’s passed a rigid qualification process, received continual business and over-the-road training, and is recognized for their commitment to safety. Over the years you’re likely to see the same Landstar BCO at your dock providing the consistent service you and your customers demand.
11BCO Trailer Capacity (At December 31, 2011) Landstar also has over 13,000 trailers ready to work for you. From Dry Vans, to Flats, Steps, and Heavy Haul equipment. Whatever your trailer capacity needs, Landstar has the solution.
12Business ModelLandstar is a worldwide, non-asset based provider of integrated supply chain solutions delivery safe, specialized transportation and logistics services to a board range of customers utilizing a network of agents, third party capacity owners and employees.LandstarCapacityAgentsCustomersCapacity7,900 BCOs28,000 Approved CarriersAll Major U.S. Rail LinesOcean Cargo CarriersAir Cargo CarriersWCO NetworkForeign Correspondent NetworksHow does choosing Landstar as your transportation provider benefit you? That’s simple. It’s the strength of our unique business model.A model that provides your company with the best of two distinct worlds. A large, well respected, financially stable, publicly traded corporation, as well as a local entrepreneur with years of experience working day in and day out to satisfy the needs of customers just like you.From Landstar capacity, to your Landstar agent, to Landstar Transportation, Inc., we all have one goal…….satisfying your supply chain needs safely, consistently, and for a price you can afford.AgentsIndependent Business OwnersCustomer ServiceCapacity Sourcing/DispatchingNVOCC/IATA Agents
13Think You know Landstar? Think Again. With Landstar, We can Truckload• Platform• Van/LTL• Expedited• Heavy HaulWarehouse• Flexible & ScalableEstablished Network of ProvidersAll Major MarketsIntermodalReliable/Efficient TransportationSubstituted ServicesFull CoverageThink You knowLandstar? Think Again.With Landstar,We canMove It & Manage It.Supply Chain Solutions• Freight Management Services• Freight OptimizationEvent ManagementLeading TechnologyIf you think Landstar is a trucking company, think again. With Landstar, we can Move it AND Manage it. Let’s talk about some of the Landstar services you may be less familiar with.International• NVOCC/OTIIATA/IACBreak Bulk/OOGProjects
14LTL ServicesLandstar delivers cost effective, comprehensive Less-than-Truckload Services throughout North America ensuring you receive the reliable service you’ve come to expect from Landstar
15Landstar Advantage as an LTL Brokerage Services Provider Access to a vast network of national, inter-regional and regional carriersIncreased visibility and flexibility within your supply chainAccess to the most reliable capacity at market competitive ratesAlternative web-based automated rating and routing tool with “click and ship” visibility of all orders
16Cost Effective Efficient Safe Reliable Environmentally Friendly Intermodal ServicesCost Effective Efficient Safe Reliable Environmentally FriendlyCompared to truck pricing, intermodal can give you comparative transport with a lower cost for the capacity. Intermodal transportation is safer today than ever before. With high-tech lift technology and articulated intermodal railcars, damage to freight is minimized. And according to the EPA, railroads account for just 9 percent of total transportation-related nitrogen oxide emissions while also alleviating highway congestion.
17Do you move freight in these markets? Landstar can provide full coverage solutions using Rail Intermodal.Landstar is not new to Intermodal. On average, Landstar moves more than 53,000 Intermodal loads per year (based on data available from the last four years.) Landstar can provide full coverage solutions using Intermodal and has contracts with all major railroad transport and stack train operators in the U.S. and Canada. Even clients who ship only 1 to 2 loads a week can benefit from intermodal. Landstar
18International Services experts guide you through the maze of Air and Ocean needs.Landstar’s International Service experts can guide you through the maze of Air and Ocean needs.
19Landstar Advantage as an INTERNATIONAL FREIGHT FORWARDER Financial StrengthLandstar International agents provide their customers global services expertise and unparalleled personal attentionLandstar International agents can integrate and coordinate forwarding services with other Landstar capabilities e.g. Heavy haul, Long haul drayage and Warehouse operationsAir and Ocean freight service can be combined with other logistics functions such as 3PL and WarehousingLandstar has the advantage as an International Freight Forwarder. Landstar is financially sound. International agents have the knowledge you need and provide the personal attention you deserve. Landstar can integrate and coordinate forwarding services with other Landstar capabilities such as Heavy Haul, Long haul drayage and even Warehousing operations. Air and Ocean freight service can be easily combined with other logistics functions such as 3PL and Warehousing.
20The Landstar Advantage in Warehousing FlexiblePresence in All Major MarketsTop Regional ProvidersScalable to Your NeedsLandstar has a national network of warehouse facilities – we can handle any requirements – short term or long term needs and provide you with all the value-add services including the standard: Receive/Store/Pick-up and Ship.
21Landstar’s WCO Network provides Value-Added Services Customized ReportingLabelingKittingTechnology(WMS, EDI, RF)Heavy Lift CapabilityHazardous Materials HandlingPhysical Inventory& Cycle CountsBonded servicesLandstar Warehousing Services includes a variety of value-added services from customized reporting to reverse logistics.ConsolidationCrossDockingReverseLogisticsClimate Control(Ambient, Freezer & Refrigerated)
22Warehouse Capacity Owner (WCO) Network Major Markets24 WCOs63 Facilities21,500,000 Sq. Ft.ExperienceAverage 53 YearsAll Major IndustriesDedicated & Shared FacilitiesNew FrontiersCanadaTemp ControlledThe Landstar WCO Network covers all the major markets in the US.
23Supply Chain Solutions Outsourced Logistics Management ServicesComplete Management of Information & Physical Flow of GoodsManage OrdersOptimize ShipmentsExecute ShipmentsFinancialSettlementBusinessIntelligenceProactively manage daily transportation requirementsOptimize Cost by Mode (LTL, TL, Intermodal)Event Management & Shipment VisibilityExperienced logistics professionalsIndustry-leading technologyLandstar offers outsourced logistics management services utilizing industry-leading technology to manage your daily transportation requirements right down to the shipment level.
24Supply Chain Solutions Improve Your Supply Chain PerformanceReduced transportation costsGuaranteed capacitySafe, reliable capacityReal time in-transit visibilityLow cost of implementationEase of implementationSingle point of contactFreight settlementBusiness intelligence reporting capabilitiesOur outsourced logistics management services provide significant benefits to customers.