P E O P L E • T E C H N O L O G Y • R E S U L T S

Echo Overview

Echo Overview

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Echo Overview

• Founded: Feb. 2005 Headquarters: Chicago, IL Regional Offices:

• 24 regional offices

• Publicly traded Oct. 2009

• NASDAQ listed: ECHO

• 1400+ employees

CAGR:

75%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$7 $33 $95

$203 $260

$426

$602

$757 $885

$1,020-1,080*

Revenue Growth

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Managed Transportation Service Scope

Design Source Execute Business Analytics

Integrated, Flexible Proprietary Technology End-to-End

Strategic Account Management – Look Around Corners for Clients

• Physical network analysis / evaluation

• Informational network mapping

• Network service requirements

• Optimization evaluation• Mode, carrier mix

strategy

• Carrier sourcing / negotiations event

• Carrier vetting / compliance (safety, financial, insurance, CSA)

• Leverage 30,000+ carrier partners

• Risk mitigation

Continuous Process Improvement based on performance, network changes, client strategy changes

• Centralized and local deployed operations to maximize leverage and client proximity

• 24x7x365 operations• Load receipt, build,

tender, track and pay• System driven

exception management

• Interpret and advise based on data

• Ad hoc self service reporting• Corrective Action plans

driven by data• Client specific KPIs• Service • Financial • Carrier scorecard

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Solution Design

• Cost / service trade-off analysis

• Best value carrier analysis

•Network Analysis / evaluation

•Optimal DC location analysis

• Produce mix change cost analysis

• New Produce Introduction (NPI) cost forecast analysis

•Baseline establishment for what-if scenario analysis

• Load optimization analysis

•Order aggregation

•Modal shift

•DC by-pass

• Pooling Analysis

• Road-trip analysis

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Carrier Sourcing

• Breadth and depth of carrier network and process; economies of scale – Top 5 client for majority of key LTL

providers– 110 LTL providers– 30,000+ TL providers– IMC– 35 freight forwarder partners

• C-level relationships with key providers

• Carrier vetting / compliance management– Safety, compliance to standards,

insurance, operating authority and certification, historical performance

• Carrier Sourcing events to meet client needs including; carrier qualification, RFP execution, negotiations, rate mitigations

• Centralizes transportation decisions to improve control

• Reduces Total Cost of Ownership current rates, future rate mitigation, carrier administration (billing, tracking, performance management), performance levels

• Streamline the Request For Quotation process to minimize administrative costs

• Optimizes contract award decisions

• Improves asset utilization for carriers

• Reduces time to procure transportation contracts and rates

• Centralizes and organizes carrier RFP and carrier performance

Echo Procurement Value

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Execute

Web Visibility to all Shipments

Validation of key milestone occurrence

Exception management

Freight Bill Audit and Payment

Delivery Performance

Shipment demand triggered Electronic

(EDI, flat file, etc.)

Web-based Phone call Email

Shipment verification

Determine Mode

Assign Best Value Carrier

Demand Trigger

Loads are tendered to best value carrier

Verify acceptance and manage routing guide

Schedule delivery appointments

Tender & Accept

• Client specific SOPs

• Relentless focus on performance execution• Exception management driven

system and processes ensure every leg of every shipment meets performance standards

• Technology and processes designed to meet our client’s capabilities

• Key performance indicator driven organization to ensure execution exceeds expectations

• Freight Bill Audit & Payment audited to drive accurate and timely payments to carrier partners

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Business Analytics / Reporting

• Performance management driven organization and reporting– Standard and ad hoc reporting

capabilities

• Report include: – Executive summary

dashboards, savings analysis, performance exceptions, lane activity, financial summary and lost opportunity reports

• Identify network and cost changes to drive continuous improvement initiatives and corrective action plans to minimize cost and service leakage

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Technology• Proprietary technology

• Fast, low cost of deployment

• Flexible and scalable to drive specific rules and customizable interface

• Robust reporting

• Stand alone web-based or full integration with ERP

• Simply to use / simple to learn

• Load Management: Cost / service options by business rule or user selection

• Client portal: Load boards, visibility, advance notifications, reporting, BI

• Carrier Portal: Tendering, track & trace, freight settlement

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Strategic Account Management

• Dedicated Account Management team responsible:• Strategic alignment, collaboration &

advocacy

• SOP development and maintenance

• Carrier management & performance

• Continuous process improvement and saving initiatives

• Business Reviews

• Industry best practices sharing and deployment

• Trusted transportation advisor to client

• Engagement of subject matter experts:• Logistics engineering, modal

sourcing experts, information technology, financial settlement

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Benefits of the Echo Solution • Reduce Total Cost of Ownership

• Dedicated Account Management Team

• Deep industry and vertical experience

• Proactive and solution driven approach (more than reporting the news), data driven analytics and market intelligence

• Value creation beyond rates

• Committed to knowing your business and being an extension of your team

• Relentless focus on performance execution

• Exception management driven system and processes ensure every leg of every shipment meets performance standards

• Visibility & Control via centralized technology platform

• Cost / service ( carrier) options

• Flexible and customizable solutions based on industry best practices

• Technology, solutions and commercial agreements

Partnership Implementation

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Phase 1Project

Initiation

Phase 2Account Setup

Phase 3Change

Management

Phase 4Go Live

Assign Dedicated PM and AM

Internal Review of Initial Data

Internal & External Kick off Calls

Set Weekly Calls & Site Visit Date(s)

Initiate Technology Integration Plan (if applicable)

Determine Critical Success Factors

Gather Tariffs/Additional Data

Complete Site Surveys

PM & AM Visit Client Site(s)

Carrier Sourcing & Awards

Set Controls, Metrics, and KPIs

Customizations in Echo Systems

Pricing Verification

Collaborate with Locations on Shipping Process

Complete SOW

Carrier On-Boarding

Echo Systems Training

Contact & Escalation Process Set

Account Management Team Transition

Continue Weekly Calls

Continued PM Support

Ongoing Continuous Improvement Support

Client Implementation Process

2 – 3 Weeks* 3– 5 Weeks* 2 – 3 Weeks*

* Implementation timing shown is estimated

Q&A

Industry Update

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Industry Update – Business Activity

Manufacturing Industrial Production has historically been one of the strongest indicators of future trucking volume (92% correlation rate).

The Business Cycle Index (Leading Economic Indicator Index) shows typical changes in the US macro economic business cycle.

A change in direction in either the IPI or LIND can signal future changes in trucking activity.

Manufacturing Industrial Production rose .1% in June after rising .4% in May. The index is growing currently at a 6.7% annualized rate for the year, which is very strong for manufacturing.

The leading indicators Index rose 1.65% in May following a 1.78% increase in April and 1.58% increase in March according to the Federal Reserve. Based on this, the economy should continue to expand for at least the next 6 months, which is also reflected in GDP outlooks released by the Fed and other economic forecasting firms.

INDUSTRIAL PRODUCTION / BUSINESS CYCLE The June PMI came in at 55.3, down .1 point from 55.4 logged in May. New Orders, a key indicator for future transportation demand was up by 2.0 points to 58.9 in June.

Inventory levels for manufacturers were flat in June, unchanged from the 53.0 reading also seen in May. Manufacturers’ customer‘s inventories were also flat in June at 46.5 points. For the transportation sector, this indicates that the sector should be entering into a more active period for reorders – which may be reflected in the July report.

Exports fell 2 points to 54.5 while imports gained 2.5 points to a reading of 57.0. Analysts are still watching export activity closely because Europe seems to be improving while China and Japan are lackluster.

Manufacturing in general continues to be strong in the United States – business equipment and automotive manufacturing being key drivers of growth in the industry. US near shoring activity continues, which will help to support continued growth in the manufacturing sector.

PURCHASING MANAGERS INDEX

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Current driver shortages are estimated to be 235,600 as of May 2014. - Bloomberg Source: “PPI Detailed Report: Data for June 2014, PPI, Bureau of Labor Statistics, St. Louis Federal Reserve, Bloomberg Intelligence

Producers Price Index (PPI): measures the average change over time in the selling prices received by domestic producers

Baseline set in December 2003 at 100

Higher index readings reflect higher LTL prices

LTL Producer Price Index slipped slightly to 158.7, down .7 points from the all-time high hit in May of 159.4. The June 2014 index was also 7.5 points higher than the 151.2 rate posted in June of 2013.

Driver shortage and capacity issues continue to push costs higher for carriers. In turn, that translates into higher “street level” prices for shippers and ultimately, carriers continue to see profit margins squeezed by higher labor and benefit costs.

LTL PPI INDEX The PPI is calculated from over 200 interviews with shippers and carriers each month, conducted by the Bureau of Labor Statistics under the Commerce Department.

Higher index readings reflect higher TL prices

Baseline set in January 2001 at 100

The Truckload PPI set a new all-time high of 147.9 in June, up .2 points from 147.7 set in May. The June 2014 index was 3.8 points higher than the 144.1 posted in the same month of 2013.

Rail service has deteriorated as growing demand from increased port activity has created backlogs at US ports. That has pushed more demand into the truckload sector – creating inflationary pressure on prices.

TRUCKLOAD PPI INDEX

Industry Update – Trucking Pricing

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• The Morgan Stanley Truckload Freight Index (TLFI) “measures the incremental demand for Dry-Van Truckload services compared to the incremental supply. When a given reading is above a prior years’ level, it means there is more freight demand relative to available capacity. When a given reading is below prior years’ level, it means there is less freight demand relative to capacity”. - Morgan Stanley Research.

• The TLFI has started to accelerate again over the past four weeks and is now higher than the 2006-2013 average (and every previous year in the survey). The light blue line in the Morgan Stanley TLFI at right shows that it will remain at the upper end of the historic range for the remainder of 2014. Only the period from November-December of 2013 will have seen higher demand than the US market will visit later this year based on these projections.

• Respondents to Morgan Stanley’s survey cited driver shortages, higher fuel costs, and current spikes in demand d(due to a peak in the produce food season), as a reason that capacity is much tighter than normal. ““The driver shortage is the large looming item that is making all the demand and tight supply of trucks a major problem for the shippers.”

• The latest Cass Freight index reading, also included in the Morgan Stanley Freight Transportation update showed that freight expenditures were up 11.2% year-over-year for late June. Freight shipments in the same time frame were up 3.6%.

Truckload Freight Index Trends Higher

Sources: Morgan Stanley Research, Data as of 06/25/2014

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Industry Update: Additional Truckload Insights