1 Transportation & Sustainability September 2015

2 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level What is Sustainability?  “Meeting the Needs of Society Today Without Compromising the Ability of Future Generations to Meet Their Needs” Economic Prosperity Triple Bottom Line Social Responsibility Environmental Stewardship

3 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Sources of U.S. Greenhouse Gas Emissions  Transportation is responsible for 27% of U.S. greenhouse gas emissions  About 20% of transportation sector emissions are caused by heavy-duty vehicles Source: Remarks by the President on Fuel Efficiency Standards of Medium and Heavy-Duty Vehicles, Source: EPA, Sources of Greenhouse Gas Emissions, 2013.

4 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Transportation Sustainability?  Freight transportation is growing It is 92% petroleum-based Source: RITA BTS Transportation Services Index, July Source: EIA Annual Energy Review, 2013.

5 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level What to do? “Climate change poses clear, catastrophic threats. We may not agree on the extent, but we certainly can’t afford the risk of inaction.” Rupert Murdoch

6 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Increase Transportation Energy Efficiency  Minimize the energy used and waste created while safely delivering J.B. Hunt services Cost Reduction Reduced consumption of resources Risk Management Lessen dependency on fossil fuels Innovation Leader in transportation services Customer Value Simple methods of reducing transportation carbon emissions Shareholder Value Developing new services & cost reduction strategies

7 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level How? J.B. Hunt’s Transportation Carbon Diet 1. Know your network footprint Then, attack it by: 2. Eliminating miles - Network re-alignment - Route optimization 3. Increasing payload - Maximize cube & weight 4. Converting to energy-efficient, cost-effective modes - Rail is better than truck; truck is better than air 5. Using efficient carriers - FleetSmart members & SmartWaySM partners Reduced Costs Means Reduced Emissions!

8 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Step 1: Measure Carbon Emissions  N2O (nitrous oxide) & CH4 (methane) are also emitted  Taking into account the global warming potential of N2O & CH4, 22.9 lbs of CO2e (carbon dioxide equivalent) are emitted

9 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Step 2: Eliminate Miles Which distribution center should service my customers?

10 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick add a bullet point Second level Third level Fourth level Fifth level Step 3: Increase Payload  Minimize packaging Utilize lightweight equipment Build efficient loads

11 Step 4: Pick the Best Mode Water 4x > Rail Rail 4x > Truck Truck 8x > Air Less Carbon Intense More Carbon Intense In 2014, 71% of J.B. Hunt’s loaded miles were via Rail.

12 Intermodal as “Carbon-Lite Transportation” 50% less carbon; 1.5 fewer tonnes Estimated carbon emissions for an 1,800 mile truckload shipment based on Raven Ridge Resources, Inc. methodology for calculating carbon emissions for truckload shipments via highway and intermodal service. See:

13 Proprietary J.B. Hunt tool calculates customer’s carbon footprint & identifies intermodal conversion opportunities CLEAN Transport™

14 Step 5: Use Efficient Carriers SmartWay program identifies efficient carriers Carrier partners are scored on relative efficiency performance. 5 performance ranges based on 8 emissions metrics  J.B. Hunt Multimodal in top 20-40% of CO2, NOx and PM grams/mile metrics  Carrier Excellence Awards

15 DeliverGreen™ DeliverGreen ™ is a business initiative to meet customers’ demand for more energy-efficient services and provide long-term, sustainable growth opportunities for the J.B. Hunt Transport. Ensure J.B. Hunt drivers, managers, and technicians are fully trained and capable of consistently operating fleet equipment in the most fuel-efficient manner. Compare and evaluate equipment technology investment options. Provide high quality, low-cost fuels to power J.B. Hunt fleets. Establish energy- efficient engineered solution blue prints for each fleet operation. Keep J.B. Hunt abreast of and cost- effectively in compliance with all energy and emissions regulations impacting the trucking industry.

16 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level  Ninth Outline LevelClick to edit Master text styles  Second level  Third level  Fourth level  Fifth level J.B. Hunt’s 1st Green Fleet Solution Freightliner Cascadia Truck Auxiliary Power Unit Truck Skirting Trailer Belly Fairing Trailer Gap Fairing Wide-Base Tires Truck Inflation Monitoring System Trailer Automatic Tire Inflation System Lightweight Duraplate Trailer Biodiesel Fuel (B20)

17 J.B. Hunt & Biodiesel J.B. Hunt uses biodiesel at a variety of bulk and retail locations In total, over 120 million gallons of biodiesel fuel annually Pure biodiesel equates to 1.3% of J.B. Hunt’s total fuel usage, or about 20.6 million gallons of pure biodiesel Biodiesel blends utilized range from a B2 to a B20 B11 is the most common

18 Fuel Efficiency Factors Source: Kenworth Truck Company “Fuel Economy White Paper” August 2008 Drivers Attitude Compensation Vehicle AlignmentMaintenance Practices Environment TrafficPatternEducationConsistency Idle TimeJack UsageHabits Electronic ControlsConfigurationParasitic LoadsAerodynamicsTerrainRoad SurfacesWeather Temperature Operations LoadSpeed Fuel Quality % of Time LoadedRoute Documentation Systems Baseline Testing Electronic Measurement Fuel PurchasesFlow Meter Tires ConstructionType/Size State of Wear Air Pressure Tread Depth Retread

19 The EPA and DOT’s National Highway Traffic Safety Administration (NHTSA) is developing the next phase of heavy-duty vehicle fuel efficiency and GHG standards to be implemented by March 2016 This second round of standards will build on the first standards for model years Estimated savings for vehicle owners and operators is $50 billion in fuel costs and 530 million barrels of oil. Next Round of Fuel Efficiency Standards J.B. Hunt continues to test fuel efficient equipment to ensure future compliance. The low pressure area at the rear of trailers contributes 25% of a tractor trailer’s aerodynamic drag. In 2014, we deployed a Ridge Corporation Green Tail on a new Wabash 53’ Duraplate LS trailer for testing. We combined it with a Green Wing trailer skirt for greater trailer aerodynamics.

20 Corporate Sustainability

21 Recycling at J.B. Hunt

22 Thank you. J.B. Hunt continues to strive to positively impact the triple bottom line, to create social, environmental, & economic value We are willing to share our knowledge regarding sustainability, & eager to learn from others’ experiences Please contact us with any questions or opportunities: Gary Whicker Senior V.P. of Engineering (479) Joe Fritzjunker Logistics Engineer (479)