Ricky Stover Vice President, C.R. England Graduated from UNT with a JOB! Promoted to Dept. Chair Coached T&F State Champion Career Switch: BNSF Railway Graduated from TCU MBA Adjunct Professorship TCU Promoted to Vice President Expanded Leadership Role Positive Neutral ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 Negative Student Teaching Process Difficult Professional Relationships Relocated for new opportunity Executive Lecturer in Logistics Series University of North Texas Diverse & Complex Markets & Challenges 1 Introduction to Temperature Controlled Transportation January 29, 2016 Denton, TX 3 4 5 Refrigerated Segment Overview Team Truck Solo Truck TOFC COST Driver Shortage Reliable Rail Transit Fuel Prices COFC GROWTH Reduced OTR Capacity Boxcar 300 500 700 900 Decreasing TOFC Options 1,100 MILES PER DAY TRANSIT 6 Service Overview *a wholly owned subsidiary of C.R. England, Inc. 7 8 National Team Transit • Increased capacity • Expedited transit times • On-time service > schedule flexibility • Improved Security > Freight is not left unaccompanied during transit • Decreased idle and carbon footprint 9 Regional Service • Short / medium length of haul • Network Density in major metropolitan areas • Exceptional on-time service performance 10 Dedicated Customized Solutions Local • Shuttle moves between distribution and production facilities • Yard operation services Long Haul • Closed loop/interplant moves • Shared backhaul revenue Regional • High volumes of freight >250, < 600 mile radius from a domicile point • DC -DC, DC -store, multi-stop round trip/one-way Specialized • Customer spec equipment • Sensitive cargo (transit, value, hazardous, etc…) 11 Diverse Product Mix Frozen Vegetables 4% Beverages 3% Condiments / Sauces 2% Other Produce 2% 3% Candy / Chocolate 18% Baked Goods 9% Frozen Foods 17% Snacks 12% Meat / Protein 13% Dairy 17% 12 Key Customers 13 Industry Leading Investment Equipment, People, Facilities & Technology Containers Ultra Lightweight Drayage Trucks Expertise Facilities 24-7 GPS Tracking Two-Way Satellite Communication 14 Intermodal Benefits Summary 1) Price Cost savings vs. OTR rates in core lanes 2) Service Consistent transit is competitive with solo truck • Southern California – Northeast: 7th PM service • Southern California – Chicago: 4th PM service 24x7 load monitoring 3) Capacity Reliable capacity with the newest, largest refrigerated container fleet in North America 4) Reduced Carbon Footprint Each TempStack load reduces carbon emissions by 60% compared to OTR truck and by 30% compared to TOFC intermodal alternatives 15 16