Slide 1: Fourth Quarter 2014 Earnings & 2015 Forecast Conference Call
Fourth Quarter 2014 Earnings & 2015 Forecast Conference Call February 3, 2015 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Safe Harbor and Non-GAAP Financial Measures 2 Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding reve
Slide 3: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 3 ► Fourth Quarter 2014 Results Overview ►Asset Management Update ► 2015 Forecast ►Q & A
Slide 4: 4th Quarter Results Overview
© 2015 Ryder System, Inc. All Rights Reserved. 4th Quarter Results Overview 4 ► Comparable earnings per share from continuing operations were $1.60 vs. $1.35 in 4Q13 ► Earnings per diluted share from continuing operations were $0.22 in 4Q14 vs. $1.24 in 4Q13 – 4Q14 included pension costs of $1.32 (p
Slide 5: Key Financial Statistics Fourth Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 5 Fourth Quarter ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding.
Slide 6: Key Financial Statistics Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 6 Full Year ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding.
Slide 7: 4th Quarter Results Overview – FMS
© 2015 Ryder System, Inc. All Rights Reserved. 4th Quarter Results Overview – FMS 7 ► Fleet Management Solutions (FMS) operating revenue up 6% and total revenue up 2% vs. prior year – Full service lease revenue up 5% – Contract maintenance revenue up 10% – Commercial rental revenue up 10% – Contract
Slide 8: 4th Quarter Results Overview – SCS
© 2015 Ryder System, Inc. All Rights Reserved. 4th Quarter Results Overview – SCS 8 ► Supply Chain Solutions (SCS) operating revenue up 4% and total revenue up 3% vs. prior year due to new business and higher volumes, partially offset by automotive business lost earlier in the year – Lower fuel pass
Slide 9: Business Segments Fourth Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 9 (1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items. ($ Millions) Fourth Quarter
Slide 10: Business Segments Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 10 (1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, pension buyout costs, restructuring and other charges, net and other items. ($ Millions) Full Year
Slide 11: Capital Expenditures Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures 11 Full Year ($ Millions)
Slide 12: Cash Flow from Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. Cash Flow from Continuing Operations 12 2014 2013 Earnings from Continuing Operations 220$ 243$ Depreciation 1,040 957 Gains on Vehicle Sales, Net (127) (96) Amortization and Other Non-Cash Charges, Net 47 76 Pension Contributions (107) (95) Pension Set
Slide 13: Debt to Equity Ratio
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Ratio 13 Balance 213% 175% 196% 257% 260% 221% 248% Sheet Debt to Equity (1) (2) (1) Illustrates impact of accumulated net pension related equity charge on leverage. (2) Represents long term total obligations to equity target of 225 - 275
Slide 14: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 14 ► Fourth Quarter 2014 Results Overview ►Asset Management Update ► 2015 Forecast ►Q & A
Slide 15: Global Asset Management Update
© 2015 Ryder System, Inc. All Rights Reserved. ► Units held for sale were 5,500 at quarter end, down from 7,900 units held for sale in the prior year ─ Sequentially from the third quarter, units held for sale decreased by 300 units ► The number of used vehicles sold in the fourth quarter was 4,600,
Slide 16: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 16 ► Fourth Quarter 2014 Results Overview ►Asset Management Update ► 2015 Forecast ►Q & A
Slide 17: 2015 Forecast Assumptions
© 2015 Ryder System, Inc. All Rights Reserved. 2015 Forecast Assumptions 17 General ► Moderate growth economic environment ► Foreign exchange rates stable at current levels FMS ► Accelerating growth rate in full service lease fleet (up 4,000 vehicles yoy) resulting from strong sales activity ► Incre
Slide 18: 2015 Forecast Assumptions SCS, Dedicated, Other
© 2015 Ryder System, Inc. All Rights Reserved. 2015 Forecast Assumptions 18 SCS ► Revenue growth driven by new sales, partially offset by foreign exchange Dedicated ► Revenue growth driven by new sales ► Benefits from productivity improvements in driver recruiting/retention Other ► Higher overhead i
Slide 19: Key Financial Statistics 2015 Forecast
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 19 ($ Millions, Except Per Share Amounts) 2014 % B / (W) Revenue: Operating Revenue(1) $ 5,640 5,285$ 7% Fuel and Subcontracted Transportation 1,195 1,354$ (12)% Total Revenue $ 6,835 6,639$ 3% Earnings From Continuing Operation
Slide 20: Business Segment Revenue
© 2015 Ryder System, Inc. All Rights Reserved. Business Segment Revenue 20 (1) Excludes fuel revenue. (2) Excludes subcontracted transportation revenue.
Slide 21: 2015 Causes of EPS Change
© 2015 Ryder System, Inc. All Rights Reserved. 2015 Causes of EPS Change(1) 21 ($ Earnings Per Share) Note: Full year impact of residual values change totals $0.47 - Merit - Medical - Commissions - Headcount + Bonus - Tax (0.05) - FX (0.05) + Residual Values + Fleet Growth + Residual Values - Mainte
Slide 22: Capital Expenditures, Cash Flow & Leverage
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures, Cash Flow & Leverage 22 Full Year ($ Millions)
Slide 23: Capital Expenditures and Free Cash Flow
© 2015 Ryder System, Inc. All Rights Reserved. Fix formatting Growth Capital Expenditures 23 Free Cash Flow $ 614 258 (257) (384) (386) (202) (300) ($ Millions) 2015 460 177 216 180 0.0 0.5 1.0 2009 2010 2011 2012 2013 2014 2015 Forecast 9 2010 2011 2012 2013 2015 Forecast 2 263 723 733 907 Fleet Co
Slide 24: EPS Forecast – Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. EPS Forecast – Continuing Operations 24 ($ Earnings Per Share) (1) 1Q15 Comparable EPS Forecast, a non-GAAP financial measure, excludes $0.06 of non-operating pension costs and $0.02 of restructuring charges. 2015 Comparable EPS Forecast, a non-GAAP fin
Slide 25: Q&A
© 2015 Ryder System, Inc. All Rights Reserved. Q&A 25
Slide 26: Appendix
© 2015 Ryder System, Inc. All Rights Reserved. Appendix 26 Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 27: Full Service Lease (FSL) Fleet Count
© 2015 Ryder System, Inc. All Rights Reserved. End of Period 4Q13 1Q14 2Q14 3Q14 4Q14 FSL Fleet (as reported) 122,900 123,300 123,000 123,200 125,500 2,600 UK FSL Trailers 5,000 4,800 4,600 4,300 4,400 (600) FSL Fleet - excluding UK 117,900 118,500 118,400 118,900 121,100 3,200 Sequential Change 1Q1
Slide 28: Fleet Management Solutions (FMS) Fourth Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 28 Fourth Quarter ($ Millions)
Slide 29: Fleet Management Solutions (FMS) Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 29 Full Year ($ Millions)
Slide 30: Supply Chain Solutions (SCS) Fourth Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 30 2014 2013 % B/(W) Automotive 133.6$ 139.8$ (4)% Technology & Healthcare 98.2 87.3 13% CPG & Retail 199.2 189.9 5% Industrial & Other 115.3 108.9 6% Operating Revenue 546.3 525.9 4% Subcontracted Transportation 72.1 72.8 (
Slide 31: Supply Chain Solutions (SCS) Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 31 2014 2013 % B/(W) Automotive 558.7$ 573.4$ (3)% Technology & Healthcare 359.3 332.6 8% CPG & Retail 776.3 737.1 5% Industrial & Other 462.8 420.8 10% Operating Revenue 2,157.1 2,063.9 5% Subcontracted Transportation 304.0
Slide 32: Central Support Services (CSS) Fourth Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 32 Fourth Quarter ($ Millions) (1) Includes the reclassification of $2.8 million in 2013 to CSS in order to conform to the current year presentation.
Slide 33: Central Support Services (CSS) Full Year
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 33 Full Year ($ Millions) (1) Includes the reclassification of $13.3 million in 2013 to CSS in order to conform to the current year presentation.
Slide 34: Balance Sheet
© 2015 Ryder System, Inc. All Rights Reserved. Balance Sheet 34 December 31, December 31, 2014 2013 Cash and Cash Equivalents 50$ 62$ Other Current Assets 1,026 1,001 Revenue Earning Equipment, Net 6,994 6,491 Operating Property and Equipment, Net 696 634 Other Assets 906 916 Total Assets 9,673$ 9,1
Slide 35: Adjusted Return on Capital History
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital History Adjusted Return on Capital (ROC) 6.8% 6.7% 6.6% 6.5% 6.3% 6.1% 5.5% 4.8% 4.7% 4.7% 4.6% 7.8% 7.9% 7.4% 7.3% 4.1% 4.8% 5.7% 5.6% 5.7% 5.8% 5.7% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Cost of Cap
Slide 36: Financial Indicators
© 2015 Ryder System, Inc. All Rights Reserved. Financial Indicators Forecast (1) 36 (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisitions. (2) 2000-2004 not restated for operations discontinued in 2009. (3) Includes $176 million pay
Slide 37: Asset Management Update (US Only)
© 2015 Ryder System, Inc. All Rights Reserved. Asset Management Update (US Only) (a) Current year statistics may exclude some units due to a lag in reporting (b) Excludes early terminations where customer purchases vehicle (a)(b) Redeployments – Vehicles coming off-lease or in Rental with useful lif
Slide 38: Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Non-GAAP Financial Measures 38 ► This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP fin
Slide 39: Earnings and EPS from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Earnings and EPS from Continuing Operations Reconciliation 39 4Q14 - 4Q14 - 4Q13 - 4Q13 - Earnings EPS Earnings EPS Reported 11.7$ 0.22$ 65.9$ 1.24$ Non-operating pension costs 1.4 0.03 5.3 0.10 Pension settlement charges 6.9 0.13 0.9 0.01 Pension lump
Slide 40: Earnings Before Tax and Tax Rate Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 4Q14 - 4Q14 - 4Q14 - FY14 - FY14 - FY14 - EBT Tax Tax Rate EBT Tax Tax Rate Reported 13.8$ 2.1$ 15.1% 338.5$ 118.1$ 34.9% Non-operating pension costs 2.5 1.1 9.8 4.4 Pension settlement charges 11.3 4.4 12.6 4.9 Pension lump sum settlement charge 97.2 35
Slide 41: Adjusted Return on Capital Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital Reconciliation 41 2004 2005 2006 2007 2008 2009 Net earnings (1) 216$ 227$ 249$ 254$ 200$ 62$ Cumulative effect of change in accounting principle - 2 - - - - Restructuring and other charges, net and other items (24) (2) - 1 70
Slide 42: Adjusted Return on Capital Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital Reconciliation 42 (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest for on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related
Slide 43: Adjusted Return on Capital by Segment
© 2015 Ryder System, Inc. All Rights Reserved. 43 FMS SCS FMS SCS Net Earnings (1) 227$ 80$ 278$ 100$ Restructuring and Other Charges, Net and Other I (19) - (6) - Income Taxes 117 50 156 22 Adjusted Earnings Before Income Taxes 325 130 428 122 Adjusted Interest Expense (2) 142 7 147 8 Adjusted Inco
Slide 44: Debt to Equity Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Reconciliation 44 % 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% $1,552 14
Slide 45: Debt to Equity Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Reconciliation 45 ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 46: Cash Flow Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. ($ 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.
Slide 47: Cash Flow Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Cash Flow Reconciliation 47 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Cash Provided by Operating Activities from Continuing Operations 1,028$ 1,042$ 1,134$ 1,223$ 1,370$ Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 452 497 Pr
Slide 48: © 2015 Ryder System, Inc. All Rights Reserved.
© 2015 Ryder System, Inc. All Rights Reserved.