4Q19 AND FULL YEAR 2019 EARNINGS PRESENTATION February 5, 2020 - PowerPoint PPT Presentation

4Q19 AND FULL YEAR 2019 EARNINGS PRESENTATION February 5, 2020

DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission, through the issuance of press releases or by other methods of public disclosure. 2

WERNER OVERVIEW, 4Q19 AND FULL YEAR 2019 HIGHLIGHTS Derek Leathers President and Chief Executive Officer

WERNER OVERVIEW Premium Truckload Transportation & Logistics Services Provider 2019 Revenues by Segment Headquarters Omaha, NE 3% 3 Truckload Transportation Services (TTS) 20% Market Cap 1 $2.6B Werner Logistics Driver Training Schools and Other 77% Dedicated 4,630 Fleet Size 1 2019 Revenues by Vertical 2019 Revenues by Customer One-Way 3,370 Top 50 Customers Fleet Size 1 Top 5 30% Retail 51% Associates 2 13,276 Top 10 41% Manuf./Ind. 20% Top 25 56% Food & Beverage 17% Dividend 1.0% Top 50 Yield 1 67% Logistics/Other 12% 1 As of 1/31/20 for Market Cap and Dividend Yield (excluding June 2019 special dividend), and as of 12/31/19 for Dedicated Fleet Size and One-Way Truckload Fleet Size. 2 Associates as of 12/31/19 includes approximately 12,736 employees and 540 independent contractor drivers. 3 TTS includes Dedicated and One- 4 Way Truckload.

4Q19 AND FULL YEAR 2019 HIGHLIGHTS  Revenues decreased 4% to $622M  GAAP EPS decreased 9% to $0.70 4Q19 Financial  Adj. EPS decreased 11% to $0.67 Highlights  Adj. operating income decreased 14% to $63.4M  Adj. operating margin decreased 120 bps to 10.2%  Revenues increased $6M to $2,464M  GAAP EPS increased 2% to $2.38 2019 Financial  Adj. EPS increased by $.01 to $2.39 Highlights  Adj. operating income decreased 1% to $225.9M  Adj. operating margin decreased 10 bps to 9.2%  One-Way Truckload freight volumes in 4Q19 were comparable to freight volumes in 4Q18 and showed seasonal improvement sequentially from 3Q19, however pricing remained challenging; project and surge pricing in 4Q19 was significantly lower than 4Q18 Strategic Updates and Other  At 12/31/19, 8,000 total trucks in TTS, up 180 YoY and down 55 sequentially Developments  Second highest fourth quarter adjusted EPS and highest full year adjusted EPS in our history; demonstrates the flexibility and adaptability of our balanced revenue model and strong operational execution 5

TOTAL COMPANY AND SEGMENT FINANCIAL RESULTS John Steele Executive Vice President, Treasurer and Chief Financial Officer

4Q 2019 FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income ($M) Adjusted EPS and Operating Margin $73.6 $800 20.0% $790 $780 $770 $63.4 $760 $0.75 $750 $70.0 $740 $646 $730 $720 18.0% $622 $710 $700 $690 $0.67 $680 $670 $660 $650 $640 $60.0 16.0% $630 $620 $610 $600 $590 $580 $570 $560 11.4% 14.0% $550 $540 $530 $50.0 $520 10.2% $510 $500 $490 $480 12.0% $470 $460 $450 $440 $430 $40.0 $420 $410 $400 10.0% $390 $380 $370 $360 $350 $340 $330 $320 $30.0 8.0% $310 $300 $290 $280 $270 $260 $250 $240 6.0% $230 $220 $20.0 $210 $200 $190 $180 $170 $160 4.0% $150 $140 $130 $120 $110 $10.0 $100 $90 $80 2.0% $70 $60 $50 $40 $30 $20 $10 $0 $0.0 0.0% $0.00 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19  4% total revenues decline  14% lower adj. operating income  11% lower adj. EPS  1.8% lower TTS revenues per  Adj. TTS operating margin truck per week 1 , due to lower miles declined 130 bps per truck and partially offset by slightly higher revenues per total  Logistics operating margin mile declined 250 bps  +3.3% TTS average trucks  12% lower Logistics revenues 1 Net of fuel surcharge revenues. 7

FULL YEAR 2019 FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income ($M) Adjusted EPS and Operating Margin $228.6 $225.9 $250.0 20.0% $240.0 $2,990 $3,000 $2.39 $2,970 $2,980 $2.38 $2,950 $2,960 $2,940 $2,930 $2,920 $230.0 $2,900 $2,910 $2,880 $2,890 $2,860 $2,870 18.0% $2,840 $2,850 $2,830 $2,820 $2,810 $2,800 $220.0 $2,790 $2,780 $2,770 $2,750 $2,760 $2,458 $2,464 $2,740 $2,730 $2,720 $2,710 $2,700 $2,690 $210.0 $2,680 $2,670 $2,660 $2,640 $2,650 $2,630 $2,620 $2,610 $2,600 $2,590 $2,580 $200.0 16.0% $2,570 $2,560 $2,550 $2,530 $2,540 $2,520 $2,510 $2,500 $2,490 $190.0 $2,480 $2,470 $2,460 $2,450 $2,440 $2,430 $2,420 $2,410 $2,400 $2,390 $2,380 $180.0 $2,370 $2,360 $2,350 $2,340 $2,330 $2,320 14.0% $2,310 $2,290 $2,300 $2,280 $2,270 $170.0 $2,250 $2,260 $2,240 $2,230 $2,220 $2,210 $2,200 $2,190 $2,180 $160.0 $2,170 $2,160 $2,150 $2,140 $2,120 $2,130 $2,110 $2,100 $2,090 $2,080 $2,070 $150.0 12.0% $2,060 $2,050 $2,040 $2,030 9.3% 9.2% $2,020 $2,010 $1,990 $2,000 $1,980 $1,970 $1,960 $140.0 $1,950 $1,940 $1,930 $1,920 $1,910 $1,900 $1,890 $1,880 $1,860 $1,870 $1,840 $1,850 $130.0 $1,830 $1,820 $1,810 10.0% $1,800 $1,790 $1,780 $1,770 $1,760 $1,750 $120.0 $1,740 $1,730 $1,710 $1,720 $1,700 $1,680 $1,690 $1,660 $1,670 $1,650 $1,640 $110.0 $1,630 $1,620 $1,610 $1,600 $1,590 $1,580 $1,570 $1,550 $1,560 $1,530 $1,540 $100.0 8.0% $1,510 $1,520 $1,500 $1,490 $1,480 $1,460 $1,470 $1,440 $1,450 $90.0 $1,420 $1,430 $1,410 $1,400 $1,380 $1,390 $1,370 $1,360 $1,350 $1,330 $1,340 $80.0 $1,320 $1,310 $1,300 $1,290 $1,280 $1,270 6.0% $1,260 $1,250 $1,240 $1,230 $1,220 $70.0 $1,210 $1,200 $1,190 $1,180 $1,170 $1,160 $1,150 $1,140 $1,130 $1,120 $1,110 $60.0 $1,100 $1,090 $1,070 $1,080 $1,050 $1,060 $1,040 $1,030 $1,010 $1,020 $50.0 4.0% $1,000 $990 $980 $970 $960 $950 $940 $930 $920 $910 $900 $40.0 $880 $890 $870 $860 $850 $840 $830 $820 $810 $800 $790 $30.0 $780 $770 $760 $750 $740 2.0% $720 $730 $710 $700 $690 $680 $20.0 $670 $660 $650 $640 $630 $620 $610 $590 $600 $10.0 $580 $570 $550 $560 $540 $530 $520 $500 $510 $0.0 0.0% $0.00 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019  Total revenues increased $6M  Adj. operating income declined 1%  $.01 Adj. EPS increase  0.5% lower TTS revenues per  Adj. TTS operating margin truck per week 1 decreased 50 bps  +4.6% average trucks  Logistics operating margin declined 60 bps  5% lower Logistics revenues 1 Net of fuel surcharge revenues. 8

TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS Change 4Q18 4Q19 YoY $494.7 $486.6 (2)% Revenues ($M) TTS RPTPW (1.8%); due to lower miles per truck offset  partially by slightly higher RPTM $68.0 $60.4 (11)% Adj. Op. Income ($M) Strength and operational execution of Dedicated fleet (58% of  total trucks) minimized the operating income decline 13.7% 12.4% (130) bps Adj. Op. Margin 84.1% 86.0% 190 bps Adj. OR, net FSC Change 2018 2019 YoY TTS RPTPW (0.5%)  Revenues ($M) $1,881.3 $1,909.8 2% Strength and operational execution of Dedicated fleet (58% of  total trucks) minimized the operating income decline Adj. Op. Income ($M) $212.9 $206.6 (3)% Fluctuating fuel prices and fuel surcharge (FSC) revenues  impact the TTS operating ratio (OR) when FSC are reported on Adj. Op. Margin 11.3% 10.8% (50) bps a gross basis as revenues vs netting FSC revenues against fuel expense (affects 4Q and full year) Adj. OR, net FSC 86.8% 87.7% 90 bps 9

TTS 1 FLEET METRICS UPDATE Dedicated Truckload Trucking Revenues 2 ($M) Average Trucks Revenues / Truck / Week 2 4,693 4,593 $914 4,472 $1,000 4,277 $3,888 $3,827 $817 $3,703 $3,673 $900 $800 $700 $600 $500 $400 $237 $215 $300 $200 $100 $ ‐ 2018 2019 4Q18 4Q19 2018 2019 4Q18 4Q19 2018 2019 4Q18 4Q19 One-Way Truckload Trucking Revenues 2 ($M) Revenues / Truck / Week 2 Average Trucks $900 $4,739 $771 $739 $4,432 $4,325 $4,207 $800 3,376 3,345 3,349 $700 3,315 $600 $500 $400 $204 $300 $188 $200 $100 $0 2018 2019 4Q18 4Q19 2018 2019 4Q18 4Q19 2018 2019 4Q18 4Q19 1 TTS consists of the Dedicated and One-Way Truckload fleets. 2 Net of fuel surcharge revenues. 10