MARTEN TRANSPORT, LTD. 2021 Annual Report Who We Are Marten Transport, Ltd ., with headquarters in Mondovi, Wisconsin, strives to be the premier supplier of time and tem- perature-sensitive and dry transportation and distribution services to customers in the United States, Canada and Mexico . Our mul- tifaceted business offers a network of truck-based transportation capabilities across our five distinct business platforms . Truckload – regional and over-the-road fleets, both tempera- ture-controlled and dry van, operating from Marten’s 15 regional service centers . Dedicated – customized solutions tailored to each individual cus- tomer’s requirements utilizing refrigerated trailers, dry vans and other specialized equipment . Intermodal – refrigerated COFC (container on flatcar) and refrigerated TOFC (trailer on flatcar) services, providing the econ- omies and energy efficiencies of long-haul rail transportation with extended door-to-door support from Marten’s truck network . Brokerage – surge flexibility to supplement Marten’s capabilities through temperature-controlled and dry van services provided by smaller third-party carriers . MRTN de México – industry-leading door-to-door tempera- ture-controlled service between Mexico, the U .S . and Canada utilizing our Mexican partner carriers within Mexico . We will accomplish our mission by exceeding the expectations of our customers, employees, stockholders and society . We serve customers with demanding delivery deadlines, as well as those who ship products requiring modern temperature-controlled trailers to protect goods . Founded in 1946, we have been a public company since 1986 . Our common stock trades on the NASDAQ Global Select Market under the symbol MRTN . At December 31, 2021, we employed 4,007 people, including drivers, office personnel and mechanics . Three-Year Financial Summary (Dollars in thousands, except per share amounts) FOR THE YEAR Years ended December 31, 2020 2019 2021 Operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating ratio(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 973,644 111,689 85,428 $ 874,374 93,246 69,500 $ 843,271 76,498 61,071 88.5% 89 .3% 90 .9% PER-SHARE DATA(2) Basic earnings per common share . . . . . . . . . . . . . . . . . . . . $ Diluted earnings per common share . . . . . . . . . . . . . . . . . . Dividends declared per common share . . . . . . . . . . . . . . . . Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.03 1.02 0.66 7.85 $ 0 .84 0 .84 0 .633 7 .50 $ 0 .75 0 .74 0 .513 7 .28 AT YEAR END Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 870,690 Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 651,677 Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 831,636 – 620,333 $ 796,586 – 597,589 (1) Represents operating expenses as a percentage of operating revenue . (2) The amounts for 2019 have been restated to reflect the three-for-two stock split effected in the form of a 50% stock dividend on August 13, 2020 . To Our Stockholders and Employees Growth. Consistent. Best-ever. These are words that we have used to describe Marten’s year-over-year financial performance improvements throughout the past decade . We’re using them again this year to describe our 2021 performance, and they’ve never been more apt: Marten’s 2021 operating income was the highest in our history, up 19 .8% on top of increases of 21 .9% in 2020, 8 .7% in 2019 and 23 .7% in 2018 . Our 22 .9% increase in net income for 2021 was our fourth consecutive double-digit percentage increase in annual earnings, excluding a deferred income taxes benefit in 2017 . We are particularly pleased to be able to report these results for a year in which the continuing pandemic’s impact on our oper- ating environment was even more disruptive than in 2020, with the worst-ever national driver shortage growing even worse . Once again Marten was able to thrive through adversity . Marten faces the same economic and marketplace challenges as every other trucking company . The difference for Marten is a unique business model in the hands of our dedicated and experienced people supporting the industry’s finest professional driver group . It is a model that has transformed Marten from a leading over-the-road temperature-controlled carrier into a national network of truck-based transportation capabilities . It is a multifaceted approach that has given us five distinct yet complementary business platforms: Truckload, Dedicated, Intermodal, Brokerage and MRTN de México . With this model, we have transitioned from a centralized business plat- form to a decentralized platform operating across 15 regional centers, while consistently producing profitable growth . 2021 Financial Results Net income for 2021 was $85 .4 million, or $1 .02 per diluted share, up 22 .9% from $69 .5 million, or 84 cents per diluted share, for 2020 . Operating revenue improved 11 .4% to a record $973 .6 million from $874 .4 million for 2020 . Operating revenue, net of fuel surcharges, improved for the eleventh consecutive year, rising 8 .3% to $855 .9 million for 2021 from $790 .6 million for 2020 . Operating income improved 19 .8% to a record $111 .7 million for 2021 from $93 .2 million for 2020 . Our operating ratio (oper- ating expenses as a percentage of operating revenue) improved to 88 .5% for 2021 from 89 .3% for 2020 . Our ratio, net of fuel surcharges, improved to 87 .0%, the best ratio for any year since we became a public company 35 years ago, from 88 .2% . Growing Network Strength Each of our five business platforms contributed to Marten’s record operating revenue for 2021—both individually and through collaborative interaction made possible by our net- Operating Results Comparison Percentage Increase, Year Ended December 31, 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 Operating revenue 11.4% 3.7% 7.1% Operating revenue, net of fuel surcharges Operating income Net income 8.3% 19.8% 22.9% 6.8% 21.9% 8.6% 8.7% 13.8% 11.0% work of regional operating centers . The aggregate revenue of Dedicated, Intermodal and Brokerage, our three most recently developed reporting segments, passed the half-billion-dollar mark in 2021—more than two and a half times what it was when we began breaking out these results seven years ago . Truckload—Truckload revenue was $396 .7 million, a 4 .6% increase from $379 .1 million for 2020 . Excluding fuel sur- charges, Truckload revenue was $346 .3 million, up 1 .1% from $342 .4 million for 2020 . Average revenue, net of fuel surcharg- es, per tractor per week—a main measure of Truckload asset productivity—improved by 9 .9% . Operating income was $51 .0 million, up 28 .7% from $39 .6 million for 2020 . The 2021 Truckload operating ratio was 87 .1%, and the operating ratio, net of fuel surcharges, was 85 .3% . We’ve developed our regional service centers with a vision for expanding our Truckload operations into the much larger dry van market . And we are doing that . Operating profitably out of our Kansas City, Phoenix, Atlanta and Tampa facilities, our emerging dry van business contributed a 21% year-over-year revenue increase in 2021 . We are broadening these operations in 2022 through our Dallas, Laredo and Otay Mesa facilities as we expand our dry van business into Mexico to complement our growing MRTN de México business . Dedicated—Dedicated revenue increased 6 .3% to $329 .4 mil- lion from $309 .8 million for 2020 . Excluding fuel surcharges, Dedicated revenue improved 2 .0% to $276 .9 million from $271 .6 million for 2020 . Operating income was $36 .4 million, compared with $40 .9 million for 2020 . The 2021 Dedicated operating ratio was 89 .0%, and the operating ratio, net of fuel surcharges, was 86 .9% . Marten’s Dedicated operations were honored by two prominent customers in 2021: Grocery Dedicated Carrier of the Year by Walmart, for the second consecutive year, and Platinum Carrier of the Year by the Chemours Company . Walmart credited Marten with an on-time delivery rate of over 99 .7% on nearly 700,000 store deliveries . The Chemours award, which recognizes excellence in transportation of specialty chemicals, singled out Marten MARTEN TRANSPORT 2021 ANNUAL REPORT for “showcasing reliability and dependability,” with more than a 99% on-time pick-up rate and exemplary communications . Intermodal—Intermodal revenue grew by 15 .2% to $102 .2 million in 2021 from $88 .7 million for 2020 . Excluding fuel surcharges, 2021 Intermodal revenue was $87 .5 million, up 9 .4% from $79 .9 million for 2020 . Operating income improved 65 .4% to $9 .5 million from $5 .7 million for 2020 . The 2021 Intermodal operating ratio was 90 .7%, and the operating ratio, net of fuel surcharges, was 89 .2% . We grew our Intermodal COFC (container on flatcar) resources with a 46 .4% increase in containers in 2021, providing a much-needed option for customers dealing with the capacity shortage . Brokerage—Brokerage revenue increased by 50 .2% to $145 .3 million from $96 .7 million for 2020 . Brokerage operating income was $14 .8 million, up 112 .1% from $7 .0 million for 2020 . The 2021 Brokerage operating ratio was 89 .8% . The sharp rise in Brokerage revenue reflected our effort to provide additional capacity solutions to customers struggling with the driver and capacity shortage . Operating within our Truckload and Brokerage segments, another profitable component of Marten’s vision and plan is MRTN de México, through which we have provided indus- try-leading temperature-control freight solutions utilizing our Mexican partner carriers . Its 2021 revenue increased by 13 .5% to $68 .2 million from $60 .1 million for 2020 . Winning with Talent and Teamwork No matter how well conceived, a business model is only as good as the people who execute it . And that’s where Marten shines . The talent and teamwork of Marten’s people have never been more evident than they were during the second year of pandemic disruption in 2021—responding in real time to the swirling levels of freight demand, staying ahead of the inten- sifying driver shortage, and turning aside a cyberattack early in the fourth quarter . The flexibility designed into the Marten model explains part of our success in winning against challenges like these . Marten’s no-excuses, get-it-done culture takes care of the rest . It’s a culture focused on working smart and hard in a team effort aimed at continuous improvement . We have developed a data-driven mentality backed by an in-house, state-of-the-art information technology system that provides real-time visibility of the data needed for high-speed decision making . Uncertainty and supply chain disruptions rattled the trans- portation industry in 2021—even more than in 2020 . The amount of freight that needed to be moved over the road far outstripped the number of available drivers, an economically painful impact of a driver shortage now growing ominously acute . No carrier is immune, though Marten has built a clear competitive advantage in recruiting and retaining top driv- ers through industry-leading improvements in compensation, benefits, safety and technology . We have heightened and will continue to heighten our emphasis on structurally improving our drivers’ jobs and work-life balance by collaborating with our customers . Unlike the other major carriers, we only hire expe- rienced drivers . Marten’s customers are not serviced by trainees learning on the job . Reflecting the continuing development of our executive lead- ership, in 2021 our Board of Directors appointed Tim Kohl as Chief Executive Officer, and then appointed Doug Petit to succeed Mr . Kohl as President . Mr . Kohl had served as our President since 2008 . Mr . Petit had been our Chief Operating Officer since 2019 after serving for five years as Senior Vice President of Operations . After serving as our Chief Executive Officer since 2005, I now serve as Marten’s Executive Chairman of the Board . For more than a decade, consistent profitable growth has been the hallmark of Marten’s financial performance and a measure of our business model’s effectiveness . The consistency—illus- trated by the last four consecutive years of record operating revenue and operating profit—has taken us through the pan- demic and driver shortage with a continued long-term focus on the growth of each of our businesses . We are confident that our bright and determined people will continue to produce consistent profitable growth—with the best-ever yet to come . Sincerely, Randolph L . Marten Executive Chairman of the Board February 14, 2022 This Annual Report contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from those projected. Please refer to the “Risk Factors” section in Item 1A of the attached Form 10-K. MARTEN TRANSPORT 2021 ANNUAL REPORT Corporate Information Corporate Headquarters 129 Marten Street Mondovi, Wisconsin 54755 Telephone: (715) 926-4216 Fax: (715) 926-4530 www .marten .com Stockholder Information Additional copies of our 2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission are available by writing to James J . Hinnendael, executive vice president and chief financial officer, at our corporate headquarters . Annual Meeting Stockholders, employees and friends may attend our annual meeting on Tuesday, May 3, 2022, at 3:00 p .m . at the Roger Marten Community Center, 120 South Franklin Street, Mondovi, Wisconsin . Stock Listing NASDAQ Global Select Market symbol: MRTN Legal Counsel Fox Rothschild LLP Campbell Mithun Tower – Suite 2000 222 South Ninth Street Minneapolis, Minnesota 55402 Independent Registered Public Accounting Firm Grant Thornton LLP 200 South Sixth Street, Suite 1400 Minneapolis, Minnesota 55402 Transfer Agent and Registrar Computershare Shareowner Services Stockholder correspondence mailing address: P .O . Box 505000 Louisville, Kentucky 40233 Overnight correspondence address: 462 South 4th Street, Suite 1600 Louisville, Kentucky 40202 Telephone: (866) 637-5412 TDD: (800) 231-5469 Foreign: (201) 680-6578 www .computershare .com/investor Stockholder online inquiries: www-us .computershare .com/investor/contact Direct communications about stock certificates or a change of address to Computershare Shareowner Services . MARTEN TRANSPORT 2021 ANNUAL REPORT Executive Officers and Directors Randolph L. Marten Executive Chairman of the Board and Director Timothy M. Kohl Chief Executive Officer Douglas P. Petit President James J. Hinnendael Executive Vice President and Chief Financial Officer John H. Turner Executive Vice President of Sales and Marketing Patrick J. Pazderka Secretary Partner, Fox Rothschild LLP Minneapolis, Minnesota Larry B. Hagness Director Chief Executive Officer, Durand Builders Service, Inc . Durand, Wisconsin Thomas J. Winkel Director Management Consultant Pewaukee, Wisconsin Jerry M. Bauer Director Chairman of the Board and Chief Executive Officer, Bauer Built, Inc . Durand, Wisconsin Robert L. Demorest Director Business Consultant and Retired President, Chief Executive Officer and Chairman of the Board, MOCON, Inc . Minneapolis, Minnesota Ronald R. Booth Director Retired Partner, KPMG LLP Dellwood, Minnesota Kathleen P. Iverson Director Retired President, Chief Executive Officer and Chairman of the Board, CyberOptics Corporation Chanhassen, Minnesota The 2021 Annual Report is printed on recycled paper. MARTEN TRANSPORT 2021 ANNUAL REPORT MARTEN TRANSPORT, LTD. 129 MARTEN STREET MONDOVI, WISCONSIN 54755 TELEPHONE: (715) 926-4216 FAX: (715) 926-4530 www.marten.com