THE VALUE OF SUSTAINABILITY REPORTING: PITT OHIO'S EXPERIENCE. Geoffrey Muessig CMO / Vice President of Sales PITT OHIO

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1 THE VALUE OF SUSTAINABILITY REPORTING: PITT OHIO'S EXPERIENCE Geoffrey Muessig CMO / Vice President of Sales PITT OHIO

2 PITT OHIO Background Founded in 1979 by Chuck Hammel and family members. Headquartered in Pittsburgh, PA $388 million transportation solutions provider Less than Truckload Truckload Small Package Supply Chain Services We partner with the Reliance Network for national LTL service

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4 Less than Truckload (LTL) More More More than 22 than than 2,600,000 Facilities 81,500,000 31,700, Drivers Trucks shipments miles tons SUSTAINABILITY

5 PITT OHIO Mission Statement (1993) Customer Driven, People Driven, Quality Driven Focus on customer service by leveraging people, processes, and technology to deliver unique, world class customer solutions. Genuine concern for the development, happiness, and safety of our employees and our community Focus on continuous productivity and efficiency gains.

6 PITT OHIO LTL Value Proposition 1. Recognized for industry leading reliable and dependable service. 2. Personable and knowledgable customer service. 3. Proven track record using technology to reduce cost and improve service. 4. Transportation Safety, Security, and Sustainability expertise provide differentiation.

7 Why focus on a sustainability initiative? Positive ROI Customer Engagement Employee Engagement It s the right thing to do.

8 Sustainability The Road Already Traveled 1. Obtained Executive Sponsorship 2. Catalogued best practices previously implemented. 3. Developed an internally focused marketing campaign that centered on People, Planet and Profits to increase employee awareness.

9 Sustainability The Road Already Traveled People PITT OHIO strives to provide excellent customer service. We follow the maxim Treat your employees appropriately and they will treat your customers appropriately. Compensation and Benefits Communication Employee / family charity and acompany events drive engagement. Wellness Initiative Occupational Athletics Notable recognition in the media: Best Work Place in SW PA (Post Gazette 2011, 2012)

10 Sustainability The Road Already Traveled Planet Developed driver MPG training and scorecards. Leveraged on board computers to enforce our no-idling policy. Dialed back the speed governors on our truck engines.

11 Miles Per Gallon 7 MPG PITT OHIO s fuel efficiency has improved by 5% since 2010.

12 Sustainability The Road Already Traveled Planet Retrofitted our buildings with energy efficient lighting and HVAC systems.

13 Kilowatts per Day KW per Day 50,000 45,000 40,000 35,000 30,000 25,000 20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

14 Sustainability The Road Already Traveled Planet Retrofitted our buildings with energy efficient light and HVAC systems. Drove adoption of electronic invoicing with our customers. Formalized our approach in established a cross functional Sustainability Committee - developed Sustainability KPIs and dashboards Collaborated with Drs. Sroufe and MaWhinney to develop an LTL carbon calculator.

15 Carbon Output 6% 2%0% 0% 2% Sources of CO2 10% Tractors Straight Trucks Electricity Natural Gas Non-revenue Fleet Airline miles Propane 80%

16 Sustainability The Road Already Traveled Planet Adapted our LTL costing model to provide shipper s with account specific carbon emission information. Leveraged optimization software to reduce our empty line haul miles. Published PITT OHIO s initial Annual Sustainability Report. It can be viewed at:

17 2012 Carbon Savings YTD CO2 Metrics Tons Saved (by improved MPG) 2,969 metric tons saved YTD 3,500 3,000 2,500 2,000 1,500 1, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov MPG Improvement Utility Improvement Savings = (Improvement in MPG * Miles Driven) + Kilowatts Saved

18 Sustainability The Road Already Traveled Profits PITT OHIO s financial prospects are bright! Our shippers are busy and our 1Q 2013 business is up >10% Early signs indicate that PITT OHIO s bottom line results will surpass our top line growth in 2013.

19 Sustainability: The Path Forward 1. Implement a solar project in Trenton, NJ 2. Construct a LEED certified terminal in Harmar, Pa 3. Invest more than $25M in more fuel efficient equipment as we recapitalize our fleet. 4. Diversify our fleet. 5. Retrofit existing equipment with logistics bards and trailer skirts. 6. Pilot a project to introduce CNG trucks into our Pittsburgh city operation. 7. Research how to provide customers with carbon offset credits. 8. Enhance our Sustainability metrics to include employee work days missed and water usage. 9. Continue to inspect what we expect improve our business unit, terminal and driver scorecards.

20 Sustainability The Path Forward Solar Project East Windsor (Trenton), NJ Able to fully support the electricity needs of the entire terminal net zero

21 Sustainability: The Path Forward 1. Implement a solar project in Trenton, NJ 2. Construct a LEED certified terminal in Harmar, Pa

22 Sustainability The Path Forward Harmarville, PA Facility Scheduled to open 2Q 2014 Gold level LEEDs certified Bio-detention swales to maintain hydrology Focus on water retention with waterless urinals & low flow aerators Energy efficient LED light Geothermal heating & cooling

23 Sustainability: The Path Forward 1. Implement a solar project in Trenton, NJ 2. Construct a LEED certified terminal in Harmar, Pa 3. Invest more than $25M in more fuel efficient equipment as we recapitalize our fleet. 4. Diversify our fleet.

24 Sustainability Next Steps Diversify the Fleet Put the right size shipment on the right size truck.

25 Sustainability: The Path Forward 1. Implement a solar project in Trenton, NJ 2. Construct a LEED certified terminal in Harmar, Pa 3. Invest more than $25M in more fuel efficient equipment as we recapitalize our fleet. 4. Diversify our fleet. 5. Retrofit existing equipment with logistics bars and trailer skirts. 6. Pilot a project to introduce CNG trucks into our Pittsburgh city operation. 7. Research how to provide customers with carbon offset credits. 8. Enhance our Sustainability metrics to include employee work days missed and water usage. 9. Continue to inspect what we expect improve our business unit, terminal and driver scorecards.

26 PITT OHIO and the Value of Sustainability Cost Savings Marketplace Differentiation Become a better corporate citizen. Learning and Innovation

27 A Sustainability Success Story CO2 Metric Ton per Shipment Avg Carbon per Shipment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec In 2012 PITT OHIO grew 7% and reduced our carbon footprint by 3% on a per shipment basis.

28 PITT OHIO CUSTOMER DRIVEN, PEOPLE DRIVEN, QUALITY DRIVEN Thank You