1. GSA Transportation Forum March 25, 2015 James Welch ceo YRC Worldwide

2. ® Industry Issues

3. YRC Worldwide ® Trucking’s Regulatory Pipeline Is Full Driver/Company CSA – Safety fitness – Hazmat score ELD final rule Hours of service Medical examiner Driver training Sleep apnea Drug and alcohol clearinghouse Equipment/Fuel Phase II GHG reductions –Tractors and trailers Stability control Speed limiters

4. YRC Worldwide ® U.S. quality of roads now ranked 16 th in the world 31 st in the world for average download speeds “ Together, the united forces of our communication and transportation systems are dynamic elements in the very name we bear—United States. Without them, we would be a mere alliance of many separate parts.” President Dwight D. Eisenhower February 22, 1955 42 nd in the world for Internet bandwidth Interstate Highway Information Superhighway

5. YRC Worldwide ® Highway Trust Fund – Next Due Date May 2015 Revenue issue is the roadblock – No fuel tax increase in 21 years – Raise the fuel tax – index it – Low administrative costs, more for road building – Some movement in Congress Industry needs to lobby hard to break the financing logjam – Tolling existing Interstate roads is not the answer

6. YRC Worldwide ® So 1982…

7. YRC Worldwide ® Three Decades Later…

8. YRC Worldwide ® And Still More Progress Over 30 Years! 1982 Nokia/Mobira Senator “Not So Smartphone” (20lbs!) 2014 Apple iPhone 6 Smartphone (4.55 ounces)

9. YRC Worldwide ® But Three Decades Pass and No Productivity Increase for LTL Trailers! Time to upgrade: from 28ft pups to 33ft trailers 18% gain in cube - no weight increase New tractors are expensive – Productivity essential Qualified drivers in short supply – Again, productivity essential Continue accident reduction frequency – Fewer schedules Drop GHG emissions per ton mile – More efficient movement of freight Aerodynamic skirts and SmartWay tires will make these trailers even more efficient

10. YRC Worldwide ® Freight Fundamentals 2015 “Freight fundamentals feel terrific right now, with solid demand trends and very tight rail and truck capacity leading to strong pricing expectations for most modes.” Wolfe Research February 2015

11. YRC Worldwide ® LTL Is A Daily Industrial Ballet Choreographed – 45,000 shipments daily weighing about 1,200 lbs. and moving approximately 1,300 miles Precision – Match shipments with 7,000 power units/32,000 trailers and 8,000 drivers Timing – Get it right or the audience (customer) is not pleased Travel 1.5 million miles over 24 hours Next performance – tomorrow!

12. YRC Worldwide ® For LTLs the Network is the Epicenter More than 250 terminals in North America Essentially “car pool” for shipments Network engineers Central dispatch Intermodal 400,000 hotel rooms Reduce empty mileage Scale makes small changes significant

13. YRC Worldwide ® Operating Costs

14. YRC Worldwide ® Technology and Trucking: Era of Convergence – At a Cost Smart Trucks – Video – Safety warning systems – Electronic Logging Devices Smart Highways – Exchange of real time information – ROI in safety and sustainability Even truck fueling is changing at a rapid pace – The Starbucks era of filling up Smart trucks = big bucks

15. YRC Worldwide ®

16. ® Operational Costs of Trucking Fuel accounts for 38% of the trucking industry’s operational cost Driver wages and benefits account for 34% of the trucking industry’s operational costs

17. YRC Worldwide ® Don’t Be Fooled By Fuel What comes down will go up –From geopolitical to geological California cap and trade –The temptation to punitively tax when petroleum is low How the airlines are reacting to lower fuel costs Recapitalize fleet and pay down debt Planes are full so ticket prices may not drop

18. YRC Worldwide ® Driver Issues

19. YRC Worldwide ® Median Employee Driver Age Median Age General Population: 37

20. YRC Worldwide ® Driver Shortage Source: ATA At current trends, the shortage could balloon to 240,000 – We are in big trouble if it gets there The shortage is an OTR TL issue but LTL is not far behind

21. YRC Worldwide ® Our Driver Recruitment Strategy Veterans are an excellent fit for our workforce – Safety – Training – Esprit de corps – Career minded Organic growth – Dock to driver – Employees who know our network and freight – Also career minded The First of Our YRC Freight Veterans Commemorative Trailers

22. YRC Worldwide ® Your Shipments Our Priorities

23. YRC Worldwide ® It Has To Be Safety First…Always Accident-free million mile drivers – One million = 1,663 – Two million = 495 – Three million = 78 – Four Million = 17 – Five Million = 1 Smith System – Nearly 100 certified driver trainers Local employee led safety committees – Empowered and accountable for results No phone use – not even Bluetooth – If vehicle is moving phone is off

24. YRC Worldwide ® Champions of Safety

25. YRC Worldwide ® SmartWay: An Industry Success Story SmartWay is now a widely accepted industry program We attended the first SmartWay conceptual planning meeting in 2004 Now 2,900 companies participate –Annual emissions model submission We are proud recipients of three different SmartWay awards/recognitions

26. YRC Worldwide ® The Road Ahead 2015 Continue to advance safety performance Recruit America’s Veterans to our management and driver workforce Onboard new equipment Improve customer service through technology investments Build on EPA SmartWay partnership

27. Thank You!