GXO Logistics, Inc. (NYSE:GXO) Q2 2023 Earnings Call August 3, 2023 8:30 AM ET Company Participants Malcolm Wilson - Chief Executive Officer Baris Oran - Chief Financial Officer Bill Fraine - Chief Commercial Officer Mark Manduca - Chief Investment Officer Conference Call Participants Stephanie Moore - Jeffries Scott Schneeberger - Oppenheimer Bascome Majors - Susquehanna Chris Wetherbee - Citigroup Amit Mehrotra - Deutsche Bank Allison Poliniak - Wells Fargo Jason Seidl - TD Cowen Ravi Shanker - Morgan Sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40470 _________ ...

GXO Logistics, Inc. (NYSE:GXO) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Malcolm Wilson - Chief Executive Officer Baris Oran - Chief Financial Officer Bill Fraine - Chief Commercial Officer Mark Manduca - Chief Investment Officer Conference Call Participants Stephanie Moore - Jeffries Chris Wetherbee - Citigroup Scott Schneeberger - Oppenheimer Bascome Majors - Susquehanna Ben Moore - Deutsche Bank Brian Ossenbeck - JP Morgan Allison Poliniak - Wells Fargo Ravi Shanker - ...

Three organizing principles: • Reduce • Reuse/Repair • Recycle 2022 results • 1.2+ million hours training provided: more than 15 hours per employee ©GXO Logistics, Inc. 15 | --- | --- | --- | |----------------------------------------------------------------------------------------------------|-------|------------------------| | Reconciliation of Total debt to Net income attributable to GXO Ratio: (In millions) \nTotal debt | $ | March 31, 2023 \n1,781 | | Trailing twelve months net income attributable to GX ...

©GXO Logistics, Inc. | Confidential and Proprietary Fourth Quarter and Full Year 2022 Results February 14, 2023 ©GXO Logistics, Inc. | Confidential and Proprietary 2 Mark Manduca Chief Investment Officer 4Q 2022 | --- | --- | --- | |----------------------------|--------------|--------------| | Organic revenue growth (1) | 7.5% | 15.4% | | Net income (2) | $46 million | $197 million | | Adjusted EBITDA (1) | $205 million | $728 million | | Operating cash flow | $226 million | $542 million | | Free cash flow ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-K ___________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40470 ___________________________________ GXO Logistics, Inc. ...

Financial Data and Key Metrics Changes - In Q4 2022, the company generated revenue of $2.5 billion, with an organic growth rate of 7.5% and adjusted EBITDA of $205 million, reflecting a year-over-year adjusted EBITDA growth of 23% [17][44]. - For the full year 2022, the company reported revenue of $9 billion, with an organic growth rate of 15.4% and adjusted EBITDA of $728 million, achieving the top end of the guidance range [32][44]. - The adjusted diluted earnings per share for 2022 was $2.85, up 36% from $2.09 in the prior year, driven by EBITDA growth and the addition of Clipper Logistics [32]. Business Line Data and Key Metrics Changes - The company highlighted strong performance in automation and value-added services, with a significant contribution to EBITDA growth expected from these areas by 2027 [2][18]. - The company has secured $661 million in gross new business wins for 2023, which is expected to contribute to the projected organic revenue growth of 6% to 8% [11][52]. Market Data and Key Metrics Changes - The company noted a mixed macroeconomic landscape, with North America showing the strongest conditions, while the U.K. and Continental Europe faced challenges due to higher energy and mortgage costs affecting consumer disposable incomes [26]. - The company reported a strong pipeline of $2.1 billion, reflecting a growing number of customers seeking optimized supply chain solutions [54]. Company Strategy and Development Direction - The company aims to double its top line to $17 billion by 2027, with a compounded annual organic growth target of 8% to 12% and nearly tripling adjusted EBITDA to about $1.6 billion [43]. - The management emphasized the importance of automation and technology in driving growth and maintaining customer relationships, positioning the company as a partner of choice for supply chain solutions [60]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 6% to 8% organic revenue growth for 2023, citing strong visibility with over 90% revenue visibility for the year [11][34]. - The management team remains cautiously optimistic about the business environment, noting that inflation pressures have eased and new business opportunities are strong [27][50]. Other Important Information - The company has successfully integrated Clipper Logistics, with expectations of realizing over $40 million in cost synergies within the first two years [46]. - The company launched an efficiencies project expected to contribute to EBITDA growth through 2023, with initial restructuring costs of $18 million [19]. Q&A Session Summary Question: What is the macro landscape outlook, particularly between the U.S. and Europe? - Management noted growth across all regions, with North America being the strongest, while the U.K. and Continental Europe face challenges due to macroeconomic factors [26]. Question: Can you bridge the 2022 EBITDA to 2023 EBITDA? - Management indicated that 2023 EBITDA will be impacted by approximately $70 million in headwinds from foreign exchange and pension income, but organic growth and synergies will drive overall growth [62]. Question: What are the capital allocation priorities for 2023? - The focus will be on shareholder value creation, maintaining a strong balance sheet, and evaluating M&A opportunities alongside potential share buybacks [65]. Question: How do you see the 2027 targets being achieved? - Management highlighted that growth will be driven by core growth, automation, and value-added services, with a strong pipeline supporting the trajectory towards the 2027 targets [68][70].

Financial Performance - Revenue for the three months ended September 30, 2022 increased by 16%, or $313 million, to $2.3 billion, compared to $2.0 billion for the same period in 2021[100] - Net income for the three months ended September 30, 2022 was $64 million, a decrease of 12% compared to $73 million for the same period in 2021[99] - Revenue for the nine months ended September 30, 2022 increased by 15%, or $848 million, to $6.5 billion, compared to $5.7 billion for the same period in 2021[111] - Operating income for the three months ended September 30, 2022 was $72 million, a 100% increase compared to $36 million for the same period in 2021[99] - Income before income taxes for the three months ended September 30, 2022 increased by $41 million to $83 million, compared to $42 million for the same period in 2021[108] - Income before income taxes increased by $122 million to $205 million for the nine months ended September 30, 2022, compared to $83 million for the same period in 2021, driven by business growth and lower transaction costs[120] Expenses - Direct operating expenses for the three months ended September 30, 2022 were $1.9 billion, or 82% of revenue, compared to $1.7 billion, or 84% of revenue for the same period in 2021[101] - Selling, general and administrative expenses increased by $56 million to $227 million for the three months ended September 30, 2022, compared to $171 million for the same period in 2021[102] - SG&A expenses increased by $118 million to $637 million for the nine months ended September 30, 2022, compared to $519 million for the same period in 2021, primarily due to higher personnel costs[114] - Direct operating expenses for the nine months ended September 30, 2022, were $5.4 billion, representing 83% of revenue, compared to $4.7 billion, also 83% of revenue, for the same period in 2021[112][113] Cash Flow and Assets - Net cash provided by operating activities increased by $65 million to $316 million for the nine months ended September 30, 2022, compared to $251 million for the same period in 2021[133] - Total current assets increased by 7% to $2.242 billion as of September 30, 2022, from $2.099 billion as of December 31, 2021[132] - Total long-term liabilities increased by 54% to $3.932 billion as of September 30, 2022, from $2.552 billion as of December 31, 2021[132] - Cash flows used in investing activities were $1.056 billion for the nine months ended September 30, 2022, compared to $140 million for the same period in 2021, primarily due to the Clipper Acquisition[135] Acquisitions and Integration - The Clipper Acquisition contributed 16% to European revenue and 10% to total revenue for the three months ended September 30, 2022[100] - Transaction and integration costs for the three months ended September 30, 2022 were $14 million, down from $29 million for the same period in 2021[104] - The company entered into a five-year unsecured Term Loan of $500 million on May 25, 2022, to fund the Clipper Acquisition, maturing on May 26, 2027[124] Foreign Currency Risk - A significant portion of the company's net assets and income are in non-USD currencies, primarily the Euro (EUR) and British pound sterling (GBP) [143] - The company entered into cross-currency swap agreements to manage foreign currency exchange risk, converting a portion of USD-denominated debt to EUR-denominated debt [144] - As of September 30, 2022, a 10% strengthening of the USD relative to the EUR would have increased net assets by approximately $20 million [145] - Conversely, a 10% strengthening of the USD relative to the GBP would have decreased net assets by approximately $30 million as of September 30, 2022 [145] - The sensitivity analysis does not factor in potential changes in sales levels or local currency prices due to fluctuations in exchange rates [145] - The company uses foreign currency option contracts to mitigate the risk of reduced earnings value from operations using EUR or GBP as functional currencies [144] - Fluctuations in exchange rates can affect sales volume and foreign currency sales prices, impacting competitiveness [145] - The company is exposed to currency risk from potential changes in the functional currency values of foreign currency-denominated assets, liabilities, and cash flows [143] - The management of foreign currency exchange risk is critical for maintaining financial stability and performance [144]

GXO Logistics, Inc. (NYSE:GXO) Q3 2022 Earnings Conference Call November 9, 2022 8:30 AM ET Company Participants Malcolm Wilson – Chief Executive Officer Baris Oran – Chief Financial Officer Bill Fraine – Chief Commercial Officer Mark Manduca – Chief Investment Officer Conference Call Participants Scott Schneeberger – Oppenheimer Chris Wetherbee – Citi Stephanie Moore – Jefferies Allison Poliniak – Wells Fargo Brian Ossenbeck – JPMorgan Ari Rosa – Credit Suisse Casey Deak – Stifel Operator Welcome to the G ...

Third Quarter 2022 Results November 8, 2022 ©2022 GXO Logistics, Inc. | Confidential and Proprietary 1 Disclaimer Non-GAAP Financial Measures As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables included in the attached appendix. GXO's non-GAAP financial measures in this presentation include: adjust ...