Greg Reid Senior Vice President and Chief Communications Officer

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Business Response to Dynamic Markets Greg
Reid Senior Vice President and Chief Marketing
Officer
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Fortune Worst of 97 List
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• In the wake of deregulation and intense
  competition, the transportation industry must
  radically change the quality and types of
  services it provides its customers.
• Economist, Bureau of Labor Statistics

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Earnings Per Share 1994-1996
1994 1995 1996
(0.14)
(0.83)
(0.94)
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Yellow The Years Biggest Gainer A 31 Jump In
Score

• Yellow 2001 Ranked 1
• Innovativeness
• Quality of Services

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1 in the Industry 2003, 2004, 2005
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Two Perspectives - 1997

• Our view of transportation
• Our consumers view of transportation

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Our World

• Revenue 2.5b
• Employees 34,000
• Trucking
• Less Than Truckload (LTL)
• Handling Freight

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17,000 members
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Consumer View

• Services that
• Give peace of mind
• Satisfy needs
• Deliver on promises

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CHANGE
create
embrace

• resist

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Deviant Leaders

• The source of all innovation, new ideas,
  services, personalities and ultimately new
  markets.
• Ryan Mathews and Watts Wacker Fast Company March
  2002
• 
  
  

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• The Challenge

• Corporate culture works to eliminate deviant
  employees.
• Corporate culture works to discourage deviant
  ideas.
• Corporate culture punishes deviant behavior and
  attitudes.
• And of course, as a result, most large companies
  lose the opportunity to discover the future and
  get there first.

Ryan Mathews and Watts Wacker Fast Company March
2002
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Vision
Execution
Strategy
Plan
Focus
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Vision
Plan
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• It is not the strongest of species that survive,
• nor the most intelligent, but those most
• responsive to change.
• - Charles Darwin

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• Theres no business like show business, but
  there are several businesses like accounting
• - David Letterman

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Yellow Vision

• To be the leading provider of guaranteed,
  time-definite, defect-free, hassle-free
  transportation services for business consumers
  worldwide

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Strategy
Plan
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Yellow Roadway Overview

• 9.5 billion global transportation services
  company
• Focused on large shipments for business
• Transportation services and logistics management
• Over 70,000 employees
• Over 1,000 locations worldwide

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Earnings Per Share 1994-2004
Highest EPS in company history
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2005 50,000 members
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Plan
Focus
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Core Purpose

• Guide and Inspire.
• Is an organizations reason for being.
• Gets at the deeper reasons for an organizations
  existence.
• Is forever pursued but never reached.

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Yellow Roadway Corporation
Core Purpose To make global commerce work by
connecting people, places and information.

• Core Values
• Exceed customer expectations
• Value our people
• Work safely
• Demonstrate good citizenship
• Act with integrity
• Embrace teamwork

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Execution
Plan
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Operational Metrics

• Load average
• Weight per shipment
• Dock bills per hour
• PD bills per hour
• Time through system

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Consumer Metrics

• Top-box satisfaction
• Purchase intent
• Likelihood to recommend
• On-time reliability
• Percent of shipments delivered undamaged
• Customer service responsiveness

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PASSION
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P.I.E.
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P.I.E.
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General Colin. L. Powell, USA (Ret.)
Malcolm GladwellAuthor, Blink and The Tipping
Point
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Vision
Execution
Strategy
Plan
Focus