J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Bernstein 33rd Annual Strategic Decisions Conference 2017
34 slides from J.B. Hunt Transport Services's conference presentation, Jun 2, 2017
Slide 1: Bernstein 33rd Annual Strategic Decisions Conference
Bernstein 33rd Annual Strategic Decisions Conference June 2, 2017
Slide 2: Disclosure
DISCLOSURE This presentation and discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” and “estimates” or similar expressions are intended to identify these forward-looking stat
Slide 3: Intermodal
Intermodal
Slide 4: What Drives Intermodal Growth
WHAT DRIVES INTERMODAL GROWTH 2016 2017 2018 2019 2020 Increase in transloads New markets New products New customers High fuel prices Tight truck capacity Macro economy New government regulations
Slide 5: Intermodal Historical Box Turns
INTERMODAL HISTORICAL BOX TURNS 2.15 2.10 2.05 2.00 1.95 1.90 1.85 1.80 2010 2011 2012 2013 2014 2015 2016
Slide 6: Dedicated Contract Services
Dedicated Contract Services
Slide 7: Private Fleet Market $360B
PRIVATE FLEET MARKET MAJOR COMPETITORS Estimated Truck Count 7,401 4,910 4,540 3,760 TOTAL PRIVATE 3,493 FLEET MARKET DCS Targeted Not Targeted 3,277 $360B $164B $196B 3,220 12-14% Currently 3,050 Outsourced 2,300 1,800 Source: 2016 Transport Topics
Slide 8: Private Fleet Market $60B $164B
PRIVATE FLEET MARKET Services $8B Construction $1B Petroleum Products Qualified Leads $17B DCS Targeted $60B $164B Food $72B Manufacturing $23B Unqualified Leads $104B Retail $43B
Slide 9: Final Mile Growth Opportunities
FINAL MILE GROWTH OPPORTUNITIES 252 CARRIER STATE COVERAGE LARGE AND GROWING MARKET Number of states Number Cumulative where carrier of % of % of operates Carriers Carriers Carriers CARRIERS 1 State 66 26% 26% 2 to 3 States 60 24% 50% 4 to 6 States 50 20% 70% SERVING THE 7 to 10 States 19 8% 77% 11
Slide 10: Final Mile Growth Opportunities
FINAL MILE GROWTH OPPORTUNITIES E-COMMERCE GROWTH TAILWINDS
Slide 11: National Commingled Final Mile Network
NATIONAL COMMINGLED FINAL MILE NETWORK ALL ZIP CODES IN THE LOWER 90 1M+ LOCAL 48 STATES DISTRIBUTION ANNUAL COVERED AT LEAST ONCE PER WEEK CENTERS DELIVERIES 1M+ COMBINED 700+ BOX TRUCKS OUTSOURCED CARRIER DISTRIBUTION CENTER RELATIONSHIPS SQUARE FEET 1,500+ EMPLOYEES
Slide 12: Key Vertical Focus Market Size
KEY VERTICAL FOCUS $5B MARKET SIZE $3B $1B FURNITURE APPLIANCES BEDDING ELECTRONICS CABINETS POOL DISTR CATEGORY GROWTH RATE (NEXT 3-5Y CAGR) 5-7% 3-5% 3-5% 4-6% 2-4% 3-5% GROWTH READINESS Contract carrier Whirlpool organic Contract carrier Contract carrier Business Facilities, talent, REQUIRED mode
Slide 13: Highway Services
HIGHWAY SERVICES Integrated Truckload Capacity Solutions
Slide 14: ICS Headcount and Branches
HIGHWAY SERVICES ICS HEADCOUNT AND BRANCHES 1,050 Lowell Field # of Branches 50 BRANCHES HEADCOUNT 45 900 40 750 35 30 600 25 450 20 300 15 10 150 5 - - 2009 2010 2011 2012 2013 2014 2015 2016 2017E
Slide 15: Age of Truckload Fleet and Power Mix
HIGHWAY SERVICES AGE OF TRUCKLOAD FLEET POWER MIX 3.0 12.0 2,500 TRACTORS TRAILERS 2.5 10.0 2,000 2.0 8.0 1,500 1.5 6.0 1,000 1.0 4.0 500 0.5 2.0 0.0 0 0.0 - - 2014 2015 2016 2017E 2014 2015 2016 2017E Tractors Trailers Company Independent Contractor
Slide 16: Engineering and Technology
————— ENGINEERING AND ———————— |, TECHNOLOGY
Slide 17: Investing in Innovation
INVESTING IN INNOVATION 5-YEAR SPEND $136 Enhance Our Operating System Modernize Our Infrastructure $223 $500 million Create Innovative and Disruptive Technology $141
Slide 18: Technology Leadership
TECHNOLOGY LEADERSHIP Stuart Scott Tracy Black Margaret Townsend Gary Dowdy Mike Farabelli Vana Matte EVP & CIO SVP, IT Applications SVP, Engineering VP, 360 Marketplace VP, 360 Platform SVP, Technology Services • 29 years experience in • 29 years experience in • 29 years experience in • 25 years ex
Slide 19: Disruptive Technology
DISRUPTIVE TECHNOLOGY Cloud Platform Advisor Supply Chain Management Control Tower Carrier / Driver Experience Marketplace Shipper Experience
Slide 20: J.B. Hunt 360 Cloud Platform
J.B. HUNT 360 CLOUD PLATFORM MICROSOFT OFFICE J.B. HUNT 360 Excel Powerpoint Marketplace Control Tower Outlook Word Advisor Supply Chain Management MICROSOFT WINDOWS Modularity J.B. HUNT 360 Interoperability Reuse OPERATING SYSTEMS High Availability CLOUD PLATFORM Multiple Devices Telemetry Security
Slide 21: J.B. Hunt 360 Marketplace
J.B. HUNT 360 Marketplace MARKETPLACE Capacity Recommendation True Market Price and Engine for Shippers Real-Time Bid Acceptance Load Recommendation Shared Visibility Engine for Carriers Transparency into Freight Bidding Freight Analytics and Dashboards Best-in-class Technology Seamless Connectivity
Slide 22: J.B. Hunt 360 Supply Chain Management System
J.B. HUNT 360 Supply Chain SUPPLY CHAIN Management MANAGEMENT SYSTEM Inventory Management Warehouse and Yard Management and Pool Point Consolidation Forecast and Planning Load Planning and Execution Procurement and Bid Management Order Management Commingle Capabilities
Slide 23: J.B. Hunt 360 Control Tower
J.B. HUNT 360 CONTROL CONTROL TOWER TOWER Multi-Party, Real-Time In-Transit SKU Tracking and Supply Chain Visibility Dynamic Inventory Routing Interactive Maps with Drill- Automated Arrival and Down by Fleet, Status and Dock Door Assignments Alerts via Predictive Delivery Visibility to Multi-Carrier
Slide 24: J.B. Hunt 360 Advisor
J.B. HUNT 360 Advisor ADVISOR Combining Engineering IP with Data Science/Machine Learning and Externalizing for Our Customers and Carriers Customer Analytics Route Planning Pricing Intelligence Load Optimization Dynamic Mode Selection CRM Sales Insights Dynamic Mode Selection Available Now Machine L
Slide 25: J.B. Hunt 360 Growth Rates
J.B. HUNT 360 GROWTH RATES Fiscal Week Fiscal Week Percent Fiscal Week Percent 14 17 Change 21 Change Total Offers 585 961 64% 1,312 37% Counter Offers 422 912 116% 1,217 33% Offers Accepted 113 158 40% 228 44% Revenue $145,000 $258,000 77% $344,000 33% Margin % Holding steady at 10-11% range
Slide 26: J.B. Hunt 360 Adoption
J.B. HUNT 360 ADOPTION AS OF JANUARY 18TH 2017 LAUNCH 11,573 226,263 OFFERS TO LOAD BOARD VISITS 982 CUSTOMERS 8,311 1,155 CARRIERS HAVE CARRIERS HAVE SIGNED UP FOR PLACED AN OFFER A J.B. HUNT 360 ACCOUNT
Slide 27: Strategic Technology Relationships
STRATEGIC TECHNOLOGY RELATIONSHIPS
Slide 28: Multi-Million Dollar Marketing Investment
MULTI-MILLION DOLLAR MARKETING INVESTMENT 2017-18 J.B. HUNT 360 1% MEDIA BREAKOUT National Cable Television (Fox News/CNN) 28% Pandora, XM Radio, NPR, Podcasts Business and Industry Magazines 40% Outdoor Billboards and Airport Displays Direct Mail – Existing Shippers; Prospective Shippers Digital –
Slide 29: J.B. Hunt 360 Shipper and Carrier
J.B. HUNT 360 J.B. HUNT 360 SHIPPER J.B. HUNT 360 CARRIER
Slide 30: J.B. Hunt Drive App
J.B. HUNT DRIVE APP [eal
Slide 31: The New JBHunt.com
THE NEW JBHUNT.COM VISIT SITE
Slide 32: J.B. Hunt Campus Addition 2017
J.B. HUNT CAMPUS ADDITION 2017 FPO
Slide 33: $10 Billion Growth Outlook
GROWTH OUTLOOK NEXT STAGE GOAL: $10 BILLION TIMEFRAME: IN REVENUE 3-4 YEARS INTERMODAL PRIVATE FLEETS 3PL HIGHWAY SERVICES FINAL MILE J.B. HUNT 360
Slide 34: Thank You
THANK YOU
J.B. Hunt Transport Services — Bernstein 33rd Annual Strategic Decisions Conference 2017 on 6ix