1. How Carriers Price Their Freight May 24, 2012 Website: www.3PLogistics.com

2. Copyright © 2012 Armstrong & Associates, Inc. ATA Not-Seasonally Adjusted (NSA) Truck Tonnage Index Trends 2 Source: ATA Truck Tonnage, Morgan Stanley Research Straight-Line Forecast for Monthly YoY % Change in ATA NSA Truck Tonnage Index

3. Copyright © 2012 Armstrong & Associates, Inc. Cass Shipment Index Trends & Straight-Line Forecast 3 Source: Cass Freight Index, Morgan Stanley Research Straight-Line Forecast for Monthly YoY % Change in Cass Shipment Index

4. Copyright © 2012 Armstrong & Associates, Inc. Primary Costing System Features 4 P&L Financial Data Modifications based on freight bill and operational info. Operational data, length of haul, class of freight, lane balance, trailer cube, linehaul speed, pickup times, freight handling times, etc. Unit costs, linehaul/mile, pickup-delivery, dock, admin./shipment Computerized formula to give individual shipment costs Pricing/Yield Management Marketing/Sales

5. Copyright © 2012 Armstrong & Associates, Inc. Cost Per Mile Comparisons for Carrier X 5 CPM without fuel - all miles CPM with fuel - all miles CPM loaded miles

6. Copyright © 2012 Armstrong & Associates, Inc. Mileages – Cost Relationships 6 *Terminal costs include pickup-delivery, platform and billing-collecting.

7. Copyright © 2012 Armstrong & Associates, Inc. Fuel Prices 7 Sources: U.S. Energy Information Administration, Bloomberg News / Graphic by Transport Topics $4.06 $98.00

8. Copyright © 2012 Armstrong & Associates, Inc. Fuel Surcharge 8 Base$1.20 Fuel Cost$4.00 Difference$2.80 Miles Per GallonFuel Surcharge 5.5$0.51 6.0$0.47 6.5$0.43 Issues:1) Short Haul MPG <5.5 2) Empty Miles 10-25% (Biggest Challenge <300 Miles) Base$1.20 Fuel Cost$4.00 Difference$2.80 Miles Per GallonFuel Surcharge 5.5$0.51 6.0$0.47 6.5$0.43 Issues:1) Short Haul MPG <5.5 2) Empty Miles 10-25% (Biggest Challenge <300 Miles)

9. Copyright © 2012 Armstrong & Associates, Inc. Werner Enterprises, Inc. – Systems Results 9 ¹Operating expenses expressed as a percentage of operating revenues. Operation ratio is a common measure in the trucking industry used to evaluate profitability. ²Net of fuel surcharge revenues. ³Amounts in thousands. 4 ”Empty” refers to miles without trailer cargo.

10. Copyright © 2012 Armstrong & Associates, Inc. Werner Enterprises, Inc. – Operating Expenses per Mile 10 Note: Fuel expense line does NOT include owner operator fuel.

11. Thank You! Stoughton Wisconsin Office Richard Armstrong Armstrong & Associates, Inc. 100 Business Park Circle Suite 202 Stoughton, WI 53589 USA 608-873-8929 Milwaukee Wisconsin Office Evan Armstrong Armstrong & Associates, Inc. 10401 West Lincoln Avenue Suite 207 West Allis, WI 53227 USA 414-545-3838