Confidential State of the Industry March 22, 2012

Confidential It’s All About Service  Nation’s commerce has gone from warehouses to wheels – Now it’s “Just In Time” on steroids – no margin for error  Customers are demanding precision pickup, delivery and damage-free service – Tight supply chains and narrow margins require service orientation in everything we do Find out what you do best in the industry and then find a way to do it even better  Continuous, candid and completely transparent relationship with the customer is critical – Feedback loop makes us better and helps us understand the customer's business 2

Confidential Trucking’s View of the Economy  ATA’s seasonally adjusted for-hire truck tonnage index fell 4.6% in January after a robust 6.4% increase in December  Strong points in the report were an increase in durable goods manufacturing, machinery and electrical equipment  Compared with 2011, total factory output was up 4.7% putting production at the highest level since August 2008  Increases in fuel prices remain a big concern, especially as they relate to retail sales factors since higher fuel prices act as a tax on consumers  ATA believes that the economy can absorb oil prices at $110 barrel but if it goes to $125 barrel and sustains that level for an extended period of time it will cause a downward revision in economic forecasts 3

Confidential Surface Transportation Legislation  Just last week the Senate passed a two-year, $109 billion surface transportation bill – The current program expires on March 31 and already has been extended eight times – The House will pass its own version or offer its members the Senate version for passage The House returned from recess on March 19 and initially plans to prioritize this issue for consideration – If a stalemate develops, the surface transportation program might be extended for a ninth time Not a good option for long-term infrastructure investment by the states  The American Trucking Associations has made passage of the bill its top priority which highlights the critical need for freight infrastructure investment in our Nation – We need to be the champions of freight infrastructure investment – It’s an employment issue too with the Senate bill projected to “save or create” 3 million jobs  The chokepoint in Congress to pass this legislation is causing a chokepoint in our economy and our industry – The Urban Mobility Report from the Texas Transportation Institute indicates congestion costs the trucking industry $23 billion annually in wasted fuel and delays  The cost of congestion is high for our environment too – 2 billion gallons of wasted fuel annually due to congestion – Equal to the same annual C0 2 output of 5 coal-fired power plants 4

Confidential Regulatory Initiatives  We have seen a lot of activity in the regulatory environment from the Federal Motor Carrier Safety Administration. Compliance Safety and Accountability (CSA), Hours of Service and Electronic On-Board Recorders (EOBRs) are all major issues converging on the industry quite quickly – Not only is CSA an important internal benchmark for us, it is becoming of real interest to customers Customers want to focus their industry relationships on safe carriers – Overall the new hours of service rules work for us and we believe they can be the platform for our continued safety gains We were very pleased that FMCSA preserved the 11 th hour as we have no discernable safety issues in that hour of dispatch – We are watching the regulatory and legislative maneuvers of the EOBR initiative closely Since our drivers start and end their day by meeting with a company supervisor at a company service center, EOBRs offer little value for us in hours of service compliance We will work with FMCSA to make sure the resulting required device is one that is affordable, effective and can add value to the dispatch and delivery process 5

Confidential A Small but Expensive Regulatory Issue  We are seeing some overreach in the regulatory environment that concerns us – FMCSA has updated the definition of a tank truck to include totes and thus traditional LTL and TL operations that transport them In our case we do not own, lease or operate tank trucks – Now our 21,000 drivers will have to get the tank endorsement on their CDLs Our drivers have transported tens of thousands of tote tanks safely without the endorsement – Cost will be about $4 million in training and administrative fees Significant allocation of safety resources with no corresponding safety gain – True safety progress is made when we work in partnership with the FMCSA team We have joined with ATA’s petition to ask FMCSA to revise the definition In our communications with FMCSA we have invited them to one of our service centers so we can demonstrate how we currently handle tote tanks and why the definition needs to be revised 6

Confidential Sustainability  We look at our industry through the lens of what we call the “S” quadrant – Our North Star points: Service, Safety, Security and Sustainability – While the foundation of the quadrant is clearly service and safety, sustainability is of increasing focus to our company, customers and stakeholders  We are proud charter partners and award winners of EPA’s SmartWay program – We value the program as it provides a common platform for us to discuss sustainability with our customers  We are using our experience with safety to advance sustainability – Sustainability, like we have done with safety, must be deeply embedded in our culture We held our first safety and sustainability summit for employees featuring our America’s Road Team drivers and our newest SmartWay designated equipment Late last summer we issued our first Destination Green awards to five employees in recognition of their environmental excellence initiatives 7

Confidential Sustainability Regulations  California is setting the de facto national standard for 53-foot trailer environmental equipment regulations – 53-foot trailers increasingly can be seen with a fin under the trailer body as required by California Engineered to reduce drag by taking air flow off rear axle 53-foot trailers also must be equipped with fuel efficient tires if they operate in California  The combined cost is about $4,000 a trailer – We have more than 10, foot trailers We must convert our entire fleet as we are an interstate industry and equipment flexibility is the key to efficiency We need uniform National standards that are formed in industry partnership with the Department of Transportation and Department of Energy  New federal fuel efficiency regulations are a shining example of government/industry cooperation – Will raise the cost of a truck but increase fuel efficiency from 7% to 20% – Cut greenhouse gas emissions by 270 million tons – Target to save 530 million barrels of oil by

Confidential Solutions to the Driver Shortage  First and key objective must be to retain your safest drivers – Good pay and good benefits can lead to a long-tenured driver workforce like ours Majority of our drivers with 15-plus years of service While we are hiring drivers at some of our subsidiaries, our turnover rate is low enough that it is a very controlled process  Next objective is to diversify the recruitment base – Outreach to veterans, women and minority groups New driver pool sources can prepare industry for retirements of the baby boomers generation We must make driving an attractive career choice so that the best drivers can be retained over the long term 9

Confidential What Keeps a Trucking CEO Up At Night? SAFETY!  An industry-wide commitment to safely share our highways – You might not see it from the outside but be assured the trucking industry is deeply committed to improving safety – This is not an advertisement for the YRC Worldwide companies because I know my peers at our major competitors share the commitment to safety  We take progressive actions that transcend federal safety regulations – Long before FMCSA made it illegal for truck drivers to text and drive, our company policy expressly prohibited it (our policy prohibits any cell phone use while driving) – We celebrate our safe drivers with recognition and the opportunity to participate in the National Truck Driving Championships  We govern our trucks at 63 mph and we purchase more than 400,000 hotel room nights each year to make sure our drivers get a good night’s rest in a hotel room so they are refreshed for the next driving day – Many industry leaders also govern their truck speeds and we have joined with ATA in calling for a national speed limit on trucks of 65 mph  Safety must be embedded in everything we do in the trucking industry – We are well underway on a voluntary program that will train nearly 25,000 of our employees on the latest safety practices – There is no federal requirement ordering us to do so, just a corporate commitment to our customers, employees and the public to operate as safely as we can 10