Swift Confidential & Proprietary - Knight Transportation · 3.4% 4.3% CAGR “Truckload will remain...

Swift Confidential & Proprietary

Swift Transportation 2013


Forward Looking Statements Disclaimer

2

This presentation, including documents which are incorporated by reference and accompanying

comments, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements include, but are not limited to: “anticipates,” “believes,” “estimates,” “plans,” “projects,” “expects,” “intends,” “will,” “could,” “may”, “optimism for strengthening demand,” or

similar expressions which speak only as of the date the statement was made.

Such forward-looking statements are inherently uncertain, are based upon the current beliefs,

assumptions and expectations of Company management and current market conditions, which are subject to significant risks and uncertainties as set forth in the Risk Factor Section of our 10K.

You should understand that many important factors, in addition to those listed above and in our filings with the SEC, could impact us financially. As a result of these and other factors, actual results may

differ from those set forth in the forward-looking statements and the prices of the Company's securities may fluctuate dramatically. The Company makes no commitment, and disclaims any duty,

to update or revise any forward-looking statements to reflect future events, new information or changes in these expectations.

The presentation also includes certain non-GAAP financial measures as defined by the SEC. To comply with SEC rules, we have provided a reconciliation of these non-GAAP measures.


- 31 62 94 125 156 277

562

1,259

2,398

3,210 3,265 3,400

2,571

2,930

3,334 3,493

1966 1971 1976 1980 1985 1990 1993 1996 2000 2003 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

The Evolutionary

Period

1966-1990

• Founded

• Flatbed

• Refrigerated

• Owner Operators

• Deregulation

The Growth Period

1991-2006

• 1990 IPO

• 20%+ Revenue CAGR

• 20% EBITDA CAGR

• 12 Acquisitions

• Dedicated

• Mexico

• Intermodal

The Transformation

Period

2007-2011

• Privatization - Debt

• Recession

• Strategy

• Process Improvement

• Discipline

• 2010 Balance Sheet

Restructure & IPO

The Results Period

2012-2017 (and beyond)

• Profitable Revenue

Growth

• Improved Asset

Utilization

• Continuous

Improvement

• EPS Growth

• RONA Improvement

• Continued Debt

Reduction

The Four Era’s of Swift Transportation


156 190 233 277366 458 562

714873

1,0611,259

2,112 2,1012,398

2,826

3,197 3,210 3,2653,400

2,571

2,930

3,3343,494

$0

$1,000

$2,000

$3,000

$4,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Swift Transportation Op Revenue

16 13 18 2241 46 54

7499

116100 88

117141

181 188

244

108 115132

294323

341

$0

$150

$300

$450

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Swift Transportation Adj. Op Income

4

Note: 1990 to 2005 financials represent only Swift Transportation Co., Inc. and 2006-2008 financials include both Swift Transportation Co., Inc. and IEL(1) Includes fuel surcharge(2) Reflects full year impact of M.S. Carriers acquired in June 2001(3) 2007 Operating Income adjusted for non-recurring expenses related to the going private transactions; Goodwill impairment of $238.0MM pre-tax , Trailer impairment of $18.3MM pre-tax, and going private transaction costs including fees, change-in-control payments and other costs of $39.9MM added back to

reported Operating Income

($ mm)

($ mm)

(2)

(1)

(3)

Total Revenue and Earnings 1990-2012

2012 = Record Year!

Swift’s

biggest and

most

profitable

year ever!


The Three Pillars of Value Creation

Strengthen and grow core customer relationships by cross selling suite of services

Creating Shareholder Value through EPS Growth, RONA Expansion, and Debt Reduction

Profitable Revenue Growth Improved Asset Utilization Continuous Improvement (Cost Control & Profitability)

5

Leverage capabilities in Mexico and Canada

Grow asset-light services such as Intermodal and Swift Logistics

Customer care/satisfaction

Pursue select, accretive acquisition opportunities

Maximize use of drivers available hours (Plus 1)

Shift one truck / one driver paradigm with teams, shuttles, family plan, etc.

Continued focus on Owner Operator program

Improve/streamline trailer management process

Lease trailers

Increase container turns

All other assets – facilities, IT, “stuff”

Four Disciplines of Execution (4DX)

WMS/Lean Six-Sigma

Safety culture

Driver retention

Network management

Deadhead improvement

More with less

Fanatical discipline

Swift, 1%

Top 10 For Hire,

7% *

Other, 92%

, 0%

Private Truckload

36.2%

For-Hire Truckload

38.2%

LTL7.0%

Rail Carload

5.8%

Water1.4%

Pipeline4.7%

Rail Intermodal

2.7%

Air4.0%

Private Truckload

38.6%

For-Hire Truckload

36.8%

LTL5.8%

Rail Carload

6.5%

Water1.6%

Pipeline5.7%

Rail Intermodal

1.6%

Air3.4%

4.3% CAGR

“Truckload will remain the most

efficient mode of transportation”- American Trucking Association

2010 - $694B 2022 - $1,152B

For-Hire Truckload - $255B

U.S. Truckload Market is highly fragmented: Opportunity to gain shareNotes: 1. Based on 2010 domestic revenue data published by the American Trucking Association

2. * Excluding Swift6

U.S. Freight Transportation Market 1

Swift Confidential & Proprietary7

Extensive Transportation Service Offerings

Demonstrated ability to provide total transportation solutions with a comprehensive suite of services and

equipment offerings

100% of Swift’s Top 20 customers utilize multiple service offerings

Transportation Solutions Equipment Selection

Additional Value Added Services

Line-haul Dedicated Intermodal

Trans-Mex Expedited Team - JIT

Swift Solutions

Trade Show/ Convention

Diverse Logistics

Transloading

Dry Van Temp. Controlled

Heavy Haul Flatbed

Intermodal Containers

Clean Fleet Ultra-Lite

Equipment Leasing &

Sales

Contract Maintenace

Broad service and equipment offerings help customers simplify their logistic needs


$1.41

$1.78

$1.29

$0.34

$1.02

$0.21

Customer A Customer B Customer C Customer D Customer E Customer F Customer G

Transportation Budget* Swift Revenue

$5.45

Growth Opportunities with Existing Customers

8

*Estimates based on full year North American revenues from Thomson One TTM

($ Billions)

3.9% YOY Growth

4.0% YOY Growth

10.3% YOY Growth

4.9% YOY Growth

8.7% YOY Growth

4.2% YOY Growth

22.3% YOY Growth

Significant growth available with our existing customers


Mexico & Canada Border Crossing Loads

9

~2% Market Share Today = Opportunity

(Millions)

5.170 5.490

0.115 0.019 0.0

1.0

2.0

3.0

4.0

5.0

6.0

Mexico Canada

Total Trucking Border Crossings Swift Crossings*Mexico crossing information from Laredo Development Foundation

* ^

^Canada crossing information from Stats Can , an agency within the Federal Government of Canada


Intermodal & Logistic Opportunities

10

Opportunities for continued double-digit growth

(Millions) ($ Billions)

*Intermodal information from January 2013 FTR Freight Focus – Intermodal Update

^Logistics information from 2013 3rd Party Logistics Study titled “The State of Logistics Outsourcing “

* ^

$159.9

$0

$25

$50

$75

$100

$125

$150

$175

LogisticsTotal North American 3PL Revenue

Swift Logistics Revenue

7.054

0.145 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

IntermodalTotal Intermodal Load CountsSwift Load Count


Growth by Service Offering

2017

Trucking Dedicated Intermodal Logistics

1990

Trucking

2006

Trucking Dedicated Intermodal

2011

Trucking Dedicated Intermodal Logistics

Expansion in asset light would drive RONA, cash flow and debt reduction

2012


Nationwide Terminal Network

(3)(2)

Nationwide terminal network allows us to be close to our customers on a regional basis and our driver’s homes


Density of Network

13


Weekly Revenue per Truck xFSR 2007-2012

14

Best in Class $3,500

Continuous improvement for 4 years, but still have opportunity to meet and exceed current Best in Class

˜

$2,866 $2,916

$2,660

$2,879

$2,997

$3,158

1.7%

(8.8%)

8.2%4.1% 5.4%

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

$3,400

2007 2008 2009 2010 2011 2012

Wkly Trucking Rev / Tractor YOY Growth Rate


Value for Swift *

Creating Shareholder

Value

Increase our RONA by 1% annual CAGR for each of the next 5

years

Targeting EPS Growth of 20% for 2012 and

15% CAGR from 2013-2017

15

Reduce our leverage ratio to roughly 1.5X

by 2017

*Goals shared in our May 2012 Investor/Analyst Day


Financial Summary


$2,500.6

$2,679.8

$2,803.0

7.2% 4.6%

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

2010 2011 2012

Revenue xFSR

Revenue xFSR YOY Growth Rate

Full Year 2012 Consolidated Metrics

17

Exceeded target with 27% Adjusted EPS growth

$2,929.7

$3,333.9

$3,493.2

13.8%4.8%

$2,600

$2,800

$3,000

$3,200

$3,400

$3,600

2010 2011 2012

Total Revenue

Total Revenue YOY Growth Rate

($ Millions) ($ Millions)

88.3%87.9% 87.8%

84%

85%

86%

87%

88%

89%

90%

2010 2011 2012

Adjusted Operating Ratio

$0.02

$0.79

$1.00

26.6%

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

2010 2011 2012

Adjusted EPS

Adjusted EPS YOY Growth Rate


Full Year 2012 Truckload Segment Metrics

18

Discipline & improved utilization driving adjusted OR improvement

11.8%

11.0% 11.1%

10.0%

10.5%

11.0%

11.5%

12.0%

2010 2011 2012

Deadhead %($ Millions)

($ Millions)

88.9%87.9%

86.3%

84%

86%

88%

90%

2010 2011 2012


$2,862

$2,968

$3,165

3.7% 6.6%

$2,600

$2,700

$2,800

$2,900

$3,000

$3,100

$3,200

2010 2011 2012

Weekly Revenue xFSR per Tractor


YOY Growth Rate

$1,748.4$1,844.2

$1,798.7

5.5%-2.5%

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2010 2011 2012

Revenue xFSR



Full Year 2012 Dedicated Segment Metrics

19

Continued growth in dedicated yields RONA expansion

85.2%86.4%

87.5%

80%

82%

84%

86%

88%

90%

2010 2011 2012

Adjusted Operating Ratio($ Millions)

$3,314 $3,305

$3,357

-0.3% 1.6%

$3,000

$3,100

$3,200

$3,300

$3,400

2010 2011 2012



YOY Growth Rate

2,605

2,979

3,361

14.4% 12.8%

2,200

2,400

2,600

2,800

3,000

3,200

3,400

2010 2011 2012

Average Truck Count

Average Truck Count YOY Growth Rate

$450.1

$513.4

$589.9

14.1% 14.9%

$400

$450

$500

$550

$600

2010 2011 2012

Revenue xFSR



Full Year 2012 Intermodal Segment Metrics

20

($ Millions)

(Thousands)

Building foundation for profitable growth in Intermodal

106.1 106.4

145.1

0.3%

36.4%

60

80

100

120

140

160

2010 2011 2012

Load Counts

Load Counts YOY Growth Rate

4,341

5,527

7,209

27.3% 30.4%

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012

Average Container Count


Increase is primarily due to one insurance claim associated with a dray accident which increased the Adjusted Operating Ratio by approximately 400 to 440 basis points compared to the two preceding years.

Ended 2012 with approximately 8,700 containers.

84%

88%

92%

96%

100%

104%

2010 2011 2012


98.3%96.7%

102.6%

400 to 440 bps

$177.3$187.7

$263.2

5.9%

40.2%

$50

$100

$150

$200

$250

$300

2010 2011 2012

Revenue xFSR



Operating Leverage

21

With our scale, small improvements have large impacts

Miles Per Tractor Per Week (1) Rate Per Mile (1) Deadhead Miles Percentage (1)

(In

cre

me

nta

l O

pe

ratin

g I

nco

me

)

(In

cre

me

nta

l Op

erat

ing

Inco

me

)

(In

cre

me

nta

l Op

erat

ing

Inco

me

)

($MM) ($MM)($MM)

Achievable operating improvements result in significant increases to the bottom line

Note:

1. Operating sensitivities calculated based on 2012 operating results and variable / fixed cost structure

$11.1

$22.2

$33.3

$44.4

$55.5

0.0

10.0

20.0

30.0

40.0

50.0

$60.0

25 50 75 100 125

$14.4

$28.8

$43.2

$57.6

$72.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

$80.0

$0.01 $0.02 $0.03 $0.04 $0.05

$12.1

$24.2

$36.3

$48.4

$60.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

$70.0

-0.5% -1.0% -1.5% -2.0% -2.5%


Net Debt and Leverage Ratio

22

Continuing to deliver on our commitment to reduce debt

2,601

2,499

1,919

1,705 1,669

1,633 1,601

1,427

6.35

6.16

3.86

3.17 3.052.91 2.97 2.78

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

2008 2009 2010 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Net Debt & Leverage Ratio

Net Debt Leverage Ratio

($ Millions)


Swift Transportation Co., Inc. Stock Price Performance

Swift Transportation Co., Inc.’s (1) stock performed better than Berkshire Hathaway

during the first time it was publicly traded

― Swift Stock Price CAGR – From June 1990 IPO through May 2007 Going Private transaction (2) – 18.2%

― BRKA over same time period–17.3%

Source: FactSet; Market data from June 29, 1990 through May 10, 2007

%

200%

400%

600%

800%

1,000%

1,200%

1,400%

1,600%

1,800%

2,000%

Jun-90 May-92 Mar-94 Feb-96 Dec-97 Nov-99 Sep-01 Aug-03 Jun-05 May-07

Swift Truckload Index Berkshire Hathaway S&P 500

1,603%

1,289%

1,417%

317%

100%

0

23

Notes:

1. Swift Transportation Co., Inc. was our predecessor

2. Definitive merger agreement for the going private transaction was announced on January 19, 2007

3. Truckload index includes HTLD, JBHT, KNX and WERN

(3)


Value for Swift *

Creating Shareholder

Value

Increase our RONA by 1% annual CAGR for each of the next 5

years

Targeting EPS Growth of 20% for 2012 and

15% CAGR from 2013-2017

24

Reduce our leverage ratio to roughly 1.5X

by 2017

*Goals shared in our May 2012 Investor/Analyst Day


Appendix


2012 Revenue by Industry

26

Automotive 4.6%

Consumer Products 10.7%

Manufacturing 5.4%

Retail 15.9%

Discount Retail 17.6%Paper Products 7.3%

Transportation & Logistics 6.7%

Food & Beverage 22.4%

Housing/ Building 6.0%

Other 3.4%


Q4 2012 Truckload Segment Metrics

27

($ Millions)

$2,897

$2,999

$3,292

3.5%9.8%

$2,600

$2,800

$3,000

$3,200

$3,400

2010 2011 2012



YOY Growth Rate

85.2% 85.0%

83.3%

80%

81%

82%

83%

84%

85%

86%

2010 2011 2012


12.0%

11.1%11.3%

10.0%

10.5%

11.0%

11.5%

12.0%

2010 2011 2012

Deadhead %

$457.0 $453.8

$465.7

-0.7% 2.6%

$400

$420

$440

$460

$480

$500

2010 2011 2012

Revenue xFSR



Q4 2012 Dedicated Segment Metrics

28

($ Millions)

83.0%

85.1%84.3%

80%

81%

82%

83%

84%

85%

86%

2010 2011 2012


$3,285$3,256

$3,366

-0.9% 3.4%

$3,000

$3,100

$3,200

$3,300

$3,400

2010 2011 2012



YOY Growth Rate

$117.3

$143.0

$152.2

21.9%

6.4%

$100

$110

$120

$130

$140

$150

$160

2010 2011 2012

Revenue xFSR


2,716

3,3433,439

23.1%

2.9%

2,000

2,250

2,500

2,750

3,000

3,250

3,500

2010 2011 2012

Average Truck Count

Average Truck Count YOY Growth Rate


Q4 2012 Intermodal Segment Metrics

29

($ Millions)

(Thousands)

Increase is primarily due to one insurance claim associated with a dray accident which increased the Adjusted Operating Ratio by approximately 550 to 660 basis points compared to the two preceding years.

27.5

31.5

40.9

14.5%29.8%

20

25

30

35

40

45

2010 2011 2012

Load Counts

Load Counts YOY Growth Rate

4,713

5,955

8,628

26.4%44.9%

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012



Ended 2012 with approximately 8,700 containers.

84%

88%

92%

96%

100%

104%

2010 2011 2012

95.1% 95.0%

Adjusted Operating Ratio100.6%

550to 660 bps

$48.2

$58.0

$76.8

20.3%32.4%

$0

$20

$40

$60

$80

2010 2011 2012

Revenue xFSR



Full Year Adjusted Operating Ratio Reconciliation

30

2010 2011 2012

Operating revenue 2,929,723 3,333,908 3,493,182

Less: Fuel surcharge revenue (429,155) (654,119) (690,192)

Revenue excluding fuel surcharge revenue 2,500,568 2,679,789 2,802,990

Operating expense 2,686,668 3,027,895 3,171,136

Adjusted for:

Fuel surcharge revenue (429,155) (654,119) (690,192)

Acceleration of non-cash equity compensation (22,605) - -

Amortization of certain intangibles (19,305) (17,092) (15,758)

Non-cash impairments (1,274) - (3,387)

Other items (7,382) - -

Excludable transaction costs - - -

Adjusted operating expense 2,206,947 2,356,684 2,461,799

Adjusted operating income 293,621 323,105 341,191

Adjusted Operating Ratio 88.3% 87.9% 87.8%

Operating Ratio 91.7% 90.8% 90.8%


Full Year Adjusted EBITDA Reconciliation

31

2010 2011 2012

Net income (loss) (125,413) 90,550 114,589

Adjusted for:

Depreciation and amortization of property and equipment 206,279 204,173 199,829

Amortization of intangibles 20,472 18,258 16,925

Interest expense 251,129 145,973 118,091

Derivative interest expense 70,399 15,057 5,101

Interest income (1,379) (1,900) (2,098)

Income tax (benefit) expense (43,432) 58,282 61,060

Earnings before interest, taxes, depreciation and amortization

(EBITDA)378,055 530,393 513,497

Non-cash equity compensation 22,883 6,785 4,645

Loss on debt extinguishment 95,461 - 22,219

Non-cash impairments 1,274 - 3,387

Non-cash impairments from non-operating assets - - 5,979


Adjusted earnings before interest, taxes, depreciation and

amortization (Adjusted EBITDA)497,673 537,178 549,727


Full Year Adjusted EPS Calculations

32

2010 2011 2012

Diluted earnings (loss) per share $ (1.98) $ 0.65 $ 0.82

Adjusted for:

Income tax (benefit) expense (0.69) 0.42 0.44

Income (loss) before income taxes (2.67) 1.07 1.26

Non-cash impairments 0.02 - 0.02

Non-cash impairments - Nonoperating assets - - 0.04

Acceleration of noncash stock options 0.36 - -

Loss on debt extinguishment 1.51 - 0.16

Other unusual non-cash items 0.12 - -


Mark-to-market adjustment of interest rate swaps 0.39 - -

Amortization of certain intangibles 0.30 0.12 0.11

Amortization of unrealized losses on interest rate swaps - 0.11 0.04

Adjusted income (loss) before income taxes 0.03 1.30 1.63

Provision for income tax (benefit) expense at statutory rate 0.01 0.51 0.64

Adjusted EPS $ 0.02 $ 0.79 $ 1.00


Q4 Adjusted Operating Ratio Reconciliation

33

2010 2011 2012

Operating revenue 780,427 860,723 922,619

Less: Fuel surcharge revenue (118,816) (165,449) (182,723)

Revenue excluding fuel surcharge revenue 661,611 695,274 739,896

Operating expense 703,854 763,703 815,509

Adjusted for:

Fuel surcharge revenue (118,816) (165,449) (182,723)

Acceleration of non-cash equity compensation (22,605) - -

Amortization of certain intangibles (4,548) (4,113) (3,912)

Non-cash impairments - - (2,322)

Other items - - -


Adjusted operating expense 557,885 594,141 626,552

Adjusted operating income 103,726 101,133 113,344

Adjusted Operating Ratio 84.3% 85.5% 84.7%

Operating Ratio 90.2% 88.7% 88.4%


Q4 Adjusted EBITDA Reconciliation

34

2010 2011 2012

Net income (loss) (48,314) 36,812 46,850

Adjusted for:

Depreciation and amortization of property and equipment 49,830 51,204 49,758

Amortization of intangibles 4,840 4,405 4,204

Interest expense 61,670 35,212 27,613

Derivative interest expense 11,430 2,990 -

Interest income (579) (400) (595)

Income tax (benefit) expense (41,837) 22,800 27,872

Earnings before interest, taxes, depreciation and amortization

(EBITDA)37,040 153,023 155,702

Non-cash equity compensation 22,883 1,261 514

Loss on debt extinguishment 95,461 - -

Non-cash impairments - - 2,322

Non-cash impairments from non-operating assets - - 5,979


Adjusted earnings before interest, taxes, depreciation and

amortization (Adjusted EBITDA)155,384 154,284 164,517


Q4 Adjusted EPS Calculations

35

2010 2011 2012

Diluted earnings (loss) per share $ (0.95) $ 0.26 $ 0.34

Adjusted for:

Income tax (benefit) expense 0.18 0.16 0.20

Income (loss) before income taxes (0.78) 0.43 0.54

Non-cash impairments 0.32 - 0.02

Non-cash impairments - Nonoperating assets - - 0.04

Acceleration of noncash stock options - - -

Loss on debt extinguishment - - -

Other unusual non-cash items (0.10) - -

Excludable transaction costs 0.10 - -

Mark-to-market adjustment of interest rate swaps (0.40) - -

Amortization of certain intangibles 0.13 0.03 0.03

Amortization of unrealized losses on interest rate swaps - 0.02 -

Adjusted income (loss) before income taxes (0.73) 0.48 0.62

Provision for income tax (benefit) expense at statutory rate (0.28) 0.19 0.24

Adjusted EPS $ (0.44) $ 0.29 $ 0.38

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