The Pacer Portfolio

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The name PACER, the P logo, and the phrase 'Making Your World Run Smoother' are all trademarks of Pacer International, inc. The Pacer Portfolio www.pacer.com May 2009

Transcript of The Pacer Portfolio

The name PACER, the P logo, and the phrase 'Making Your World Run Smoother' are all trademarks of Pacer International, inc.

The Pacer Portfoliowww.pacer.comMay 2009

© 2009 Pacer All Rights Reserved v0509

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Forward Looking StatementThis presentation contains or may contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements are based on the company’s current expectations and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements are general economic and business conditions; industry trends, including changes in rail transportation costs; the availability of continued financing; difficulties in maintaining or enhancing our IT systems; the loss of one or more of our major customers; the success of our cost reduction initiatives in improving our operating results and cash flows; competition; the terms of new or replacement contracts with our major underlying rail carriers; frequency and severity of accidents, particularly involving our trucking operations; changes in government regulations; changes in our business strategy, development plans or cost savings plans; service disruptions affecting our rail and motor transportation providers; changes in fuel prices or international and domestic shipping patterns; availability of qualified personnel; increases in interest rates or leverage; our ability to integrate acquired businesses; and terrorism and acts of war. Additional information about factors that could affect the company’s business is set forth in the company’s various filings with the Securities and Exchange Commission, including those set forth in the company’s annual report on Form 10-K, filed on February 17, 2009 and its quarterly report on Form 10-Q filed on May 8, 2009. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, expected or intended. All forward-looking statements that we make in connection with this presentation are qualified by the cautionary statements included in our SEC filings and other public documents. Except as otherwise required by federal securities laws, the company does not undertake any obligation to update such forward-looking statements whether as a result of new information, future events or otherwise.

© 2009 Pacer All Rights Reserved v0509

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Our Vision

To be the customers’ preferred choice, earning customer confidence every day by reliably delivering best-in-class door-to-door transportation services and logistics solutions.

© 2009 Pacer All Rights Reserved v0509

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• Steady revenue growth since 2002

• Historically strong cash flow

• Low debt due to asset-light model

• Implementing a new integrated website

• Establishing clean truck service capabilities

• Steady revenue growth since 2002

• Historically strong cash flow

• Low debt due to asset-light model

• Implementing a new integrated website

• Establishing clean truck service capabilities

Pacer Has Built a Strong Foundation for Growth Using Historically Strong Cash Flow and Low Debt

2002 20032004 2005 2006 2007

2008

$0

$500

$1,000

$1,500

$2,000

$2,500

$ MillionsPacer International, Inc. - PACR

Revenue $1,608 $1,669 $1,808 $1,860 $1,888 $1,969 $2,088 Operating Income $74 $79 $87 $93 $118 $95 $90

2002 2003 2004 2005 2006 2007 2008

Operating Income Notes: 2008 excludes non-cash goodwill impairment charge of $87.9 M

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Key Points Regarding Pacer’s Financial Strength and Organizational Streamlining

► Pacer is a $2 billion company with relatively low debt and historically strong cash flow

Our first quarter 2009 loss was primarily due to a one-time, non-cash charge

Unprecedented declines in two sectors, auto and housing, impacted volumes during the quarter

We are taking aggressive action to reduce our SG&A by 20 -25%

► We are streamlining our organization, further reducing costs, and expect to be net income positive in the second half of 2009

Day-to-day accountability for Pacer’s core transportation service units has been centralized under Dan Avramovich as chief operating officer

As chief commercial officer, Adriene Bailey is accountable for Pacer’s sales and marketing efforts

Initiatives focused on process simplification, pricing responsiveness, and network efficiency will further reduce costs and improve customer responsiveness

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We are Committed to Exceeding Customer Expectations While Transitioning to a More Efficient Operation► We are delivering the highest service levels in the history of our

company and are committed to improving going forwardOur Service Management Process has improved our service quality customer expectation measures for pick-up and delivery to their highest levels ever Our transit reliability and customer service performance are consistently rated “very satisfied” by customers in our monthly surveys

► We are building on our premier intermodal capabilities, investing in our business and winning new customers

We have continued to expand our intermodal offerings including the addition of new lanes within our Eastern Intermodal Network Service We deployed 230 clean trucks in Southern California meeting the most advanced vehicle emission standards of the Ports of Los Angeles and Long Beach We continue to grow the percentage of door-to-door business handled by our cartage fleet further improving service and communications responsiveness We have welcomed dozens of new customers and expanded our retail door-to-door intermodal business with many existing customer

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The Pacer Portfolio – We’ve Got You Covered, For an Individual Service, or Multiple SolutionsIntermodal• PacerDoor & PacerRamp

- Standard- Expedited

• Cross-Border- Canada- Mexico- Puerto Rico

Intermodal• PacerDoor & PacerRamp

- Standard- Expedited

• Cross-Border- Canada- Mexico- Puerto Rico

Trucking• Highway

- TL & LTL• JIT Expedited• Drayage• Heavy Haul • Flatbed

Trucking• Highway

- TL & LTL• JIT Expedited• Drayage• Heavy Haul • Flatbed

Import & Export• NVOCC Ocean• Freight Forwarding• Customs House Broker

Import & Export• NVOCC Ocean• Freight Forwarding• Customs House Broker

Warehousing• Public & Contract • Consolidation• Deconsolidation • Transloading• Cross-docking• Harbor Drayage

Warehousing• Public & Contract • Consolidation• Deconsolidation • Transloading• Cross-docking• Harbor Drayage

Logistics Services• Network Design• Modal Optimization• Load Control Center• Contract Logistics• Int’l Traffic Mgmt• Ocean Dray Mgmt

Logistics Services• Network Design• Modal Optimization• Load Control Center• Contract Logistics• Int’l Traffic Mgmt• Ocean Dray Mgmt

© 2009 Pacer All Rights Reserved v0509

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Pacer is Innovating Again

► Addition of the BNSF to our intermodal network

► Significant expansion of our Truck Brokerage unit

► Implementing improved systems during 2009-10

► Launched a new integrated brand and website supporting a more unified approach to the marketplace

Pacer’s new brand speaks to our history of innovation and our vision for the future Our integrated website makes our diverse portfolio of services even easier to use

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Pacer Offers One of the Largest Integrated Intermodal and Drayage Networks in North America

WHOLESALE SERVICES

• Access to all major North American rail networks• Utilize both Pacer controlled & rail container fleets

• Over 100,000 mile rail network• Over 80 terminals in key cities/ports• Over 1000 weekly train schedules• 27,000 containers & 29,000 chassis• 400 operators in key locations

Pacer Stacktrain Network

• Over 900 trucks• 24 terminal locations• Web-based customer support• Real time status and tracking

Pacer Cartage Network

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Intermodal Transit Times and Reliability have Improved Significantly

Reliabilit

y Transit Times

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36 Hrs

6 Hrs

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Transit Time Variance to Published Schedule (in Hours)

2007 Variance Range 2008 Variance Range

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36 Hrs

6 Hrs

10 Hrs

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Transit Time Variance to Published Schedule (in Hours)

2007 Variance Range 2008 Variance RangeTransit time comparisons for key Pacer Stacktrain transcontinental lanes

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►Pacer Cartage has over900 trucks and is rapidly expanding its fleet and service area

►We integrate our in-house capacity with our core carrier network to provide reliable access to over 7,000 drayage units

►Pick up and delivery reliability exceeds 96% on time

►RFID and MobileCom facilitate data update standard of sixty minutes from event

Pacer Offers Comprehensive and Reliable Door-to-Door Service Throughout North America

Delivering to your door with Confidence

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Pacer’s Intermodal Services Can Help You Achieve Your Environmental Sustainability Goals

• A single intermodal train can remove several hundred trucks off the highway

• On average rail is three times more fuel efficient than truck transportation

• According to the EPA, locomotives on average emit about three times lessnitrogen oxide and particulates

• A gallon of diesel fuel carries a ton of freight nearly 423 miles on the rail system

• If 10 percent of highway freight shifted to rail, fuel saving would top 1 billion gallons annually

(Source: American Association of Railroads & EPA)

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Pacer is an EPA SmartWay Partner and We are Establishing Clean Truck Capacity

► Pacer placed 230 new clean trucks into service with our owner operators in Dec 2008

► Equipped with Cummins ISX clean engines which reduces emissions of nitrogen oxide and particular matter by 78% and 90% respectively

► Fully supports the ports of Los Angeles and Long Beach and EPA SmartWay emission reduction requirements

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Certifications by Service UnitC-TPAT► Pacer Cartage, Inc. ► Pacer Transport, Inc. ► Pacer Stacktrain, Inc. ► Ocean World Lines, Inc. ► RF International, Inc.

SmartWay Partners► Pacer Cartage, Inc. ► Pacer Transportation Solutions, Inc.► Pacer Transport

LA/Long Beach Ports – Clean Truck (230 Units)► Pacer Cartage, Inc. ► PDS Trucking, Inc. ► Harbor Rail Transport

ISO 9001:2000 ► Pacer Transport, Inc.

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Pacer Key Services Differentiators

► A diverse portfolio of solutions: on the rail; on the road; over the ocean; in the warehouse; and through the supply chain

► Expertly manage one of the largest Intermodal networks connecting all major markets in North America

Transit flexibility: Expedited and Standard schedule options

► Provide equipment when and where you need it by combining our controlled fleet with other domestic and international fleets

Extensive Container capacity: over 70,000 big boxes; and over 60,000 small boxes

► Comprehensive trucking capabilities integrating our in-house capacity with our network of over 6,500 truck carriers

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Pacer Customer Service Differentiators

► 24 hour, 365 day centralized operation focused on pro-active monitoring, resolution and communication

► Comprehensive customer on-boarding processAgreed upon metricsDocumentation of customer expectations and requirementsPeriodic reporting of agreed upon performance metrics

► EDI or web-based load tendering, status updates and freight invoices improves process efficiency

► Robust service management processContinuous service quality assurance and review processBest practices training programs in each job function

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Awards and Recognitions2008

Pacer Transportation Solutions, Inc."Intermodal Carrier of the Year"

ConAgra Foods, Inc.

2008Pacer International, Inc.

“Top 50 Freight Transportation Firms”Transport Topics magazine

2007, 2006, and 2005Pacer International, Inc.

“Best 400 Big Companies in America”Forbes magazine

2007Pacer Distribution Services

“100 Great Supply Chain Partners”Global Logistics & Supply Chain Strategies

magazine

2007Pacer Global Logistics

“Top 100 Third-Party Logistics Providers”Inbound Logistics magazine

2006, 2005, 2004, and 1999Pacer Stacktrain

“Quest for Quality” gold medalLogistics Management magazine

2006Pacer Transport

“Quest for Quality” gold medalLogistics Management magazine

2006Pacer International, Inc.

“Supply Chain Provider of the Year”J.C. Penney Company, Inc.

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Questions and Next StepsContact your Sales Representative or call us at 888-722-7404