Multi-Client, Multi-Modal

Logistics: The Driver of the NAFTA Trade Corridor

November 08, 2013

Our company profile

2

Revenues: $4.6 billion

Net Revenues: $1.6 billion

Adjusted Operating Income: $84 million

Adjusted Net Income: $41 million

Service Lines

21,000+ employees

313 owned Freight Forwarding locations in 272 cities in 59 countries

Operate in 26+ million ft2 / 2.4+ million m2

180 UTi leased and 65 client-owned Contract Logistics centers

Financial Highlights (FY13)

Comprehensive Global Network

Our company profile

3

•Distribution

•Transportation Management

•Air & Ocean Freight Forwarding

•Contract Logistics

•Customs Brokerage

•Supply Chain Consulting

Key Services

• Aerospace & Defense• Automotive• Chemical• Consumer & Retail• Cruise

• Fashion & Apparel• Hi-Tech • Pharmaceutical & Healthcare• Projects, Mining, & Energy

Industry Verticals

Distribution – We offer comprehensive services and solutions for your unique supply chain requirements

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Management

Services

Transportation Management

Order Management

Network Engineering & Optimization

uOptimize SM

Truckload (TL)

Less that Truckload (LTL)

uBook (LTL) SM

Intermodal

Truckload (TL)

Specialized Transportation

Intermodal

Dedicated

Logistics as the Driver for the New Trade Corridor

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“Mexico has enviable economic stability and a forecast for growth, improved social mobility, and an emerging middle class.”

-The CS Monitor» Free market economy in the trillion dollar class

» Contains a private sector dominated mixture of modern and outmoded industry and agriculture

» Expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports

» Per capita income is roughly one-third that of the US; income distribution remains highly unequal

» Since the implementation of the NAFTA, Mexico's share of US imports has increased from 7% to 12%

» More than 90% of trade under free trade agreements; including more than 50 Countries.

Mexico’s Moment

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• Unemployment and inflation to continue downward trend

• Increase in near shoring activity.

• Projected growth of 3.0% to 3.5% in 2013 and by over 3.5% in 2014

• Industrial production expected to continue as the main driver for growth

2013 Predictions

Drivers of Near-Sourcing

Source: AlixPartners

30%

25%18%

16%

11%

Lower Freight Cost

Improved Speed-to-Market

Lower Inventory Cost

Time-Zone Advantages

Improved Cultural Alignment with North American Managers

Near-Sourcing: The Mexico vs. China Benefit

Other Key Factors» Free and Preferential Trade

Agreements

» Fewer Supply Chain Disruptions

» Better Quality Control

» Improved intellectual property security

» Competitive Workforce and Labor Cost

» Stable Currency

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Automotive Leading the Way…

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Source: IHS Automotive

Traditional Model» Partnerships between truckers and customs brokers in the US and Mexico,

working without data correlation or visibility, resulting in problematic, finger-pointing

Improved 3PL Service Solutions» Multi-Modal Options

• The Intermodal advantage – harmonized weight limits, cost benefits, and hassle free

» Co-located customs brokerage groups

» Distribution centers near primary border crossings

• Consolidation and deconsolidation points

» Collaborative multi-client freight consolidation

• Opposites attract – finding the right with and cube mix to fill a box

• Green – reduced transportation demand = less fuel consumption

• Getting ahead of the tight capacity curve

Multi-Modal, Multi-Client

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UTi Distribution Your Transportation Partner with Solutions

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Manages all modes of service around the world and throughout North America

Operates a flexible network of assets and non-assets to develop new innovative services and solutions whether simple or complex

Provides cost saving opportunities for both large and small clients

UTi Distribution is the solution for all your ground transportation requirements

throughout North America