Slide 1: First Quarter 2013 Earnings Conference Call
Proprietary and Confidential | April 23, 2013 First Quarter 2013 Earnings Conference Call 1 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Proprietary and Confidential | 2 Safe Harbor and Non-GAAP Financial Measures Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our assumptions regarding general economic cond
Slide 3: Contents
Proprietary and Confidential | 3 Contents ► First Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 4: 1st Quarter Results Overview
Proprietary and Confidential | 4 1st Quarter Results Overview ► Earnings per diluted share from continuing operations were $0.79 in 1Q13 vs. $0.68 in 1Q12 – 1Q13 included net expense of $0.02 from non-operating pension costs, partially offset by a foreign currency translation benefit – 1Q12 included
Slide 5: Key Financial Statistics
Proprietary and Confidential | 5 Key Financial Statistics First Quarter ($ Millions, Except Per Share Amounts) 2013 2012 % B/(W) Operating Revenue 1,267.5$ 1,228.9$ 3% Fuel Services and Subcontracted Transportation Revenue 295.5 307.4 (4)% Total Revenue 1,563.0$ 1,536.3$ 2% Earnings Per Share from C
Slide 6: 1st Quarter Results Overview - FMS
Proprietary and Confidential | 6 1st Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 3% (and operating revenue up 4%) vs. prior year – Contractual revenue up 4% – Full service lease revenue up 4% – Contract maintenance revenue down 2% – Commercial rental revenue up
Slide 7: 1st Quarter Results Overview – SCS
Proprietary and Confidential | 7 1st Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) total revenue was up 1% (and operating revenue up 2%) vs. prior year due to higher operating revenue, partially offset by lower subcontracted transportation ─ Operating revenue was up 2% vs. prior year
Slide 8: Business Segments
Proprietary and Confidential | 8 Business Segments 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions 824.0$ 792.7$ 4% 1,099.7$ 1,071.4$ 3% Supply Chain Solutions 494.8 484.6 2% 576.5 571.9 1% Eliminations (51.3) (48.4) (6)% (113.2) (107.0) (6)% Total 1,267.5$ 1,228.9$
Slide 9: Capital Expenditures
Proprietary and Confidential | 9 Capital Expenditures 2013 $ 2013 2012 O/(U) 2012 Full Service Lease 381$ 436$ (55)$ Commercial Rental 47 335 (288) Operating Property and Equipment 22 16 6 Gross Capital Expenditures 449 787 (338) Less: Proceeds from Sales (primarily Revenue Earning Equipment) 113 94
Slide 10: Cash Flow from Continuing Operations
Proprietary and Confidential | 10 Cash Flow from Continuing Operations 2013 2012 Earnings from Continuing Operations 41$ 35$ Depreciation 232 227 Gains on Vehicle Sales, Net (23) (22) Amortization and Other Non-Cash Charges, Net 18 14 Pension Contributions (4) (4) Changes in Working Capital and Defe
Slide 11: Debt to Equity Ratio
Proprietary and Confidential | 275% 234% 201% 146% 129% 151% 168% 157% 225% 183% 203% 261% 270% 268% 275% 0% 50% 100% 150% 200% 250% 300% 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 03/31/13 Long Term Target Midpoint Total Obli
Slide 12: Contents
Proprietary and Confidential | 12 Contents ► First Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 13: Global Asset Management Update
Proprietary and Confidential | ► Units held for sale were 10,000 at quarter end, up from 8,700 units held for sale in the prior year ─ Sequentially from the fourth quarter, units held for sale increased by 800 units ► The number of used vehicles sold in the first quarter was 5,800, up 23% from the p
Slide 14: Contents
Proprietary and Confidential | 14 Contents ► First Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 15: EPS Forecast – Continuing Operations
Proprietary and Confidential | 15 EPS Forecast – Continuing Operations 2013 Comparable EPS Forecast(1) $ 1.20 - 1.24 $ 4.70 - 4.85 2012 Comparable EPS $ 1.09 $ 4.41 Second Quarter Full Year ($ Earnings Per Share) (1) 2013 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS forec
Slide 16: Q&A
Proprietary and Confidential | Q&A 16
Slide 17: Appendix
Proprietary and Confidential | 17 Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 18: Fleet Management Solutions (FMS)
Proprietary and Confidential | 18 Fleet Management Solutions (FMS) 2013 2012 % B/(W) Full Service Lease 533.2$ 510.6$ 4% Contract Maintenance 46.1 47.0 (2)% Contractual Revenue 579.3 557.6 4% Contract-related Maintenance 53.3 46.5 15% Commercial Rental 173.1 171.2 1% Other 18.2 17.4 5% Operating Rev
Slide 19: Supply Chain Solutions (SCS)
Proprietary and Confidential | 19 Supply Chain Solutions (SCS) 2013 2012 % B/(W) Automotive 148.6$ 139.7$ 6% High-Tech 77.8 80.3 (3)% Retail & CPG 175.8 178.8 (2)% Industrial & Other 92.6 85.8 8% Operating Revenue 494.8 484.6 2% Subcontracted Transportation 81.6 87.3 (6)% Total Revenue 576.5$ 571.9$
Slide 20: Central Support Services (CSS)
Proprietary and Confidential | 20 Central Support Services (CSS) 2013 2012 % B/(W) Allocated CSS Costs 40.0$ 39.1$ (2)% Unallocated CSS Costs 11.4 9.5 (20) Total CSS Costs 51.3$ 48.6$ (6)% First Quarter ($ Millions)
Slide 21: Balance Sheet
Proprietary and Confidential | 21 Balance Sheet March 31, December 31, 2013 2012 Cash and Cash Equivalents 77$ 66$ Other Current Assets 994 974 Revenue Earning Equipment, Net 5,809 5,755 Operating Property and Equipment, Net 626 625 Other Assets 887 899 Total Assets 8,392$ 8,319$ Short-Term Debt / C
Slide 22: Financial Indicators Forecast
Proprietary and Confidential | 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Midpoint Long Term Target Midpoint 22 Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisiti
Slide 23: U.S. Asset Management Update
Proprietary and Confidential | 23 U.S. Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle (c) Current year statistics may exclude some units due to a lag in reporting (b) (c) Number of Units 765 569 905 1,061 1,210 1,269 896 1,521 1,684 1,485 2
Slide 24: Non-GAAP Financial Measures
Proprietary and Confidential | 24 Non-GAAP Financial Measures ► This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP financial measures
Slide 25: Earnings and EPS from Continuing Operations Reconciliation
Proprietary and Confidential | 25 Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings and Comparable Earnings per Share (EPS) from Continuing Operations, both non-GAAP financial measures, which provide useful inform
Slide 26: EBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential | EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q13 - 1Q13 - 1Q13 - EBT Tax Tax Rate Reported 62.5$ 21.7$ 34.7% Non-operating pension costs 5.2 2.2 Income from foreign currency translation (1.9) - Comparable (1) 65.8$ 23
Slide 27: Adjusted Return on Capital Reconciliation
Proprietary and Confidential | 27 Adjusted Return on Capital Reconciliation ($ Millions) (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to com
Slide 28: Debt to Equity Reconciliation
Proprietary and Confidential | 28 Debt to Equity Reconciliation % to % to % to % to % to % to % to % to 12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity 12/31/07 Equity Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $
Slide 29: Debt to Equity Reconciliation
Proprietary and Confidential | 29 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding. % to % to % to % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 12/31/11 Equity 12/31/12 Equity 3/31/13 Equity 3/31/12 Equity Balance Sheet Debt $2,863 2
Slide 30: Cash Flow Reconciliation
Proprietary and Confidential | ($ Millions) 12/31/00 (1) 12/31/01 (1) 12/31/02 (1) 12/31/03 (1) 12/31/04 (1) 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 Cash Provided by Operating Activities 1,023$ 365$ 617$ 803$ 867$ 776$ 852$ 1,097$ 1,248$ 985$ Less: Changes in Bal. of Trade Rec. Sold (270) 235 1
Slide 31: Cash Flow Reconciliation
Proprietary and Confidential | 31 Cash Flow Reconciliation 12/31/10 12/31/11 12/31/12 3/31/13 3/31/12 Cash Provided by Operating Activities from Continuing Operations 1,028$ 1,042$ 1,134$ 249$ 186$ Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 113 94 Proceeds from Sale and Le
Slide 32: Proprietary and Confidential |
Proprietary and Confidential |