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NYSE: CGI www.CeladonGroup.com 2011 KeyBanc Capital Markets Industrial, Automotive, and Transportation Conference June 2, 2011.

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Presentation on theme: "NYSE: CGI www.CeladonGroup.com 2011 KeyBanc Capital Markets Industrial, Automotive, and Transportation Conference June 2, 2011."— Presentation transcript:

1 NYSE: CGI KeyBanc Capital Markets Industrial, Automotive, and Transportation Conference June 2, 2011

2 2 Forward-Looking Statement Disclaimer Today’s presentation and discussion will contain forwarding-looking statements within the meaning of the Private Securities Litigation Reform Act of Words such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking statements. These statements are based on Celadon Group’s current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. For further information, please refer to Celadon Group’s prospectus and other filings with the Securities and Exchange Commission.

3 About Celadon Overview Established: 1985 NYSE Ticker: CGI Shares Outstanding: 22.6M Market Capitalization: $328M Recent Price: $14.51 (5/23/11) 52-week Range: $ $16.80 Bank Debt: $0 ($50M available) Awards & Accomplishments Wal-Mart – Diamond Carrier of the Year Ryder – National Truckload Carrier of the Year Phillips -Van Heusen – Truckload Carrier of the year First Carrier certified C-TPAT and ACE for border crossings ‘Highway 2 Health’ Wellness Program (American Heart Association award) Voted ‘Best Fleets to Drive For’ and ‘Best Places to Work in Indiana’ 3

4 Segment Information (TTM) Asset-Based: $507M Truckload Operations –3,000 tractors (including 250 Canada and 225 Mexico) –8,400 trailers Young Fleet –2.0 years at 3/31/11 Long Haul Focus Intermodal Services International Footprint –35% Mexico / 11% Canada Asset-Light: $41M Celadon Dedicated Services Celadon Logistics Services –LTL US/Mexico –Brokerage TruckersB2B –Over 20,000 fleet members Annualized growth rate 25% 4

5 5 Rate Per Loaded Mile Each 1¢ has an approximate annual impact of $2.7 million in pre-tax profit or $.07 EPS

6 Fiscal Year Results 6

7 First 9-Months of FY Comparison 7 RPLM$1.485$1.536$1.502$1.484$1.397$1.479 Operating Ratio92.2%90.6%96.1%96.9%98.0%95.9%

8 8 Financial Strength (millions) Mar 31, 2003Mar 31, 2010Mar 31, 2011 Cash On Hand $0.7 $9.4 $19.1 Bank Debt $26.9$ - Balance Sheet Debt $42.7 $36.9 $12.8 Operating Leases (NPV) $111.0$179.3$127.0 Total Debt$180.6$216.2$139.8 Net Worth $56.0$150.0$167.6 Average Seated Tractors2,3332,6942,653 Tractor Average Age2.7 years1.3 years2.0 years

9 State of the Truckload Industry Likely Severe Driver Shortage –CSA is adversely impacting the number of available drivers in the industry –ATA estimates CSA will result in a 5-7% reduction –CSA scores by fleet will allow shippers to review their carriers and assess their risks –Possible reduction of 1 hour in daily driving hours will reduce carrier capacity –EOBR requirement will hurt smaller fleets –Significant impact on long haul capacity 9

10 Exiting Truckload Capacity 10 Diminished financing options Source: Ward’s and A.C.T. Research Celadon Statistics 2006 Avg Tractor Age: 2.1 years 2011 Avg Tractor Age: 2.0 years 2006 Avg Seated Tractors: 2, Avg Seated Tractors: 2,653 Increased costs of new tractors 2006 Est. Cost: $95k 2010 Est. Cost: $120k 6.7

11 CSA Statistics Unsafe Driving Fatigued Driving Driver Fitness Controlled Substance Vehicle Maintenance Celadon Alert Status Of the 25 largest truckload carriers, Celadon and 10 others have no alerts

12 Proposed Changes to HOS 12 PROVISION CURRENT RULES PROPOSED RULES OFF DUTY 10 CONSECUTIVE HOURS NO CHANGE DRIVING WINDOW 14 HOURS + UNLIMITED ON DUTY 14 HOURS, THEN RELEASED FROM DUTY MAX DRIVING TIME W/IN WINDOW 11 HOURS 10 OR 11 BEING CONSIDERED LIMIT ON CONSECUTIVE HRS OF DRIVING NONE MUST BE W/IN 7 HRS OF LAST 30 MINUTE BREAK ON DUTY WINDOW 14 HOURS + ONE 16 HR SHIFT PER WK FOR REGIONAL 14 HOURS + TWO 16 HR SHIFTS PER WK FOR REGIONAL MAX ON DUTY W/IN DRIVING WINDOW 14 HOURS + ONE 16 HR SHIFT PER WEEK 13 HOURS (MANDATORY 1 HR BREAK) EOBR NOT REQUIRED REQUIRED ATA believes the proposal will reduce productivity and capacity Celadon is fully equipped with EOBRs and is in the implementation phase

13 Celadon in Mexico Opportunities Improve service to customers by simplifying border crossings Reduce driver pay Increase opportunity for handling more domestic freight 13 NAFTA Update As of April 13, 2011, the DOT unveiled a three-year pilot program to end the ban on Mexican trucks crossing the border Jaguar Mexican subsidiary Acquired in tractors 7 offices throughout Mexico 2010 Wal-Mart Dry Van Carrier of the Year

14 14 –International footprint and long haul focus –Young tractor fleet –Strong driver culture –Diverse customer base –A leader in technology –Growing non-asset based businesses Well positioned to capitalize on industry supply / demand relationship Summary


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