Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Deutsche Bank 22nd Annual Leveraged Finance Conference (September 2014)
19 slides from Avis Budget's conference presentation, Sep 30, 2014
Slide 1: Presentation to Investors
Presentation to Investors David Wyshner Sr. Executive Vice President and Chief Financial Officer September 30, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements about future results made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include projections. These statements are based on current expectatio
Slide 3: A Global Leader in the Car Rental Industry
A Global Leader in the Car Rental Industry 130 million 10,000 rental days locations $8 billion annual revenue 35 million 520,000 transactions vehicles 3
Slide 4: Diversified Revenue Sources
Diversified Revenue Sources Commercial vs. On-Airport vs. North America vs. Avis vs. Budget Leisure Off-Airport International 65% 30% 45% 55% 70% 30% 65% 35% Zipcar Locations in more than 175 countries and a leading position in most major markets 4
Slide 5: Strong Year-to-Date Results
Strong Year-to-Date Results Adjusted EBITDA ($ in millions) $330 $272 +21% 8.1% 7.4% Margin Margin Year-to-Date Year-to-Date 2013 2014 75 basis points of margin improvement 5
Slide 6: Key Trends (North America)
Key Trends (North America) Volume Price Fleet Costs Manheim Rental Rental Days(a) T&M per Rental Day(a) Risk Index(b) 4% 5% 146.1 4% 2% 141.7 First Second First Second August August Quarter Quarter Quarter Quarter 2013 2014 2014 2014 2014 2014 (a) Excluding Payless (b) Seasonally adjusted 6
Slide 7: Strong Earnings Growth Drives a Reduction in Leverage
Strong Earnings Growth Drives a Reduction in Leverage Adjusted EBITDA Leverage(a) 6.8x 4.4x 3.5x 2009 2011 2013 Target net leverage of 3 to 4 times Adjusted EBITDA (a) Net corporate debt divided by Adjusted EBITDA excluding certain items 7
Slide 8: Strategic Plan
Strategic Plan Driving Sustained, Profitable Growth Drive Strategically Expand Our Put the Efficiency Accelerate Global Customer Throughout Growth Footprint First the Organization 8
Slide 9: Focused on Growing in Higher-Margin Segments
Focused on Growing in Higher-Margin Segments Higher Revenue Per Transaction International Inbound(a) +83% Small Business(b) +20% Specialty & Premium Fleet(c) +52% Ancillary Revenue(d) +75% Note: Data are 2013 results for North America excluding Payless and Zipcar (a) Compared to all non-inbound tran
Slide 10: Acquisition of Zipcar is Strategic and Economic
Acquisition of Zipcar is Strategic and Economic Zipcar operates the largest member-based, car sharing network in the world – More than 20 major markets and 300 college campuses Revenue ($ in millions) – 870,000 members $296 Locations in the United States, Canada and Europe +23% $131 Annually G
Slide 11: Organizational Efficiencies Delivering Significant Benefits
Organizational Efficiencies Delivering Significant Benefits Fleet Yield Performance Acquisition Optimization Management Excellence Integration Reduce Targeted pricing Organization-wide Europe acquisition costs strategies process improvement Zipcar Optimize in- Integrate fleet service u
Slide 12: Expect Roughly $1 Billion of Free Cash Flow in 2014-2015
Expect Roughly $1 Billion of Free Cash Flow in 2014-2015 ($ in millions) 2014E 2015E Adjusted EBITDA $885 $1,000 Corporate interest (210) (210) Capital expenditures (200) (200) Cash taxes (70) (85) Working capital, vehicle 20 40 programs and other Free Cash Flow $425 $545 More than $8 of free cash f
Slide 13: Recent Trends
Recent Trends Pricing Fleet costs International Capital deployment Continue to expect 2014 Adjusted EBITDA to be between $860 and $910 million 13
Slide 14: Key Messages
Key Messages Strong Performance Strong financial performance Focused Focused on profitable growth Global Multiple opportunities to grow globally Opportunities Generating significant earnings Profitable and free cash flow 14
Slide 15: Avis Budget Group
avis budget group
Slide 16: Pricing Has the Largest Impact on Margins
Pricing Has the Largest Impact on Margins Adjusted EBITDA Impact of a 1% Change in Driver ($ in millions) $49 $15 $22 $21 $18 $16 $34 $7 $6 $5 $5 $15 $15 $13 $11 Average Daily Rental Utilization Per-unit Employee Rate Days Fleet Costs Productivity North America International A-1 16
Slide 17: Pricing Trends Are Improving
Pricing Trends Are Improving T&M Revenue per Rental Day (a) $41.52 $39.23 +6% First Half First Half 2012 2014 Meaningful change in pricing trends (a) Excluding Payless A-2 17
Slide 18: Debt Refinancing Remains a Significant Opportunity
Debt Refinancing Remains a Significant Opportunity (a) Corporate Debt Maturities (in millions) (b) $990 9.75% €450 $550 $500 $400 $225 $65 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Convertible Notes Senior Notes Term Loan (a) As of June 30, 2014 A-3 (b) $600 million swapped to fixed rates 18
Slide 19: Glossary
Glossary This presentation includes certain non-GAAP (generally accepted accounting principles) financial measures as defined under SEC rules. We have provided below reasons we present these non- GAAP financial measures, a description of what they represent and a reconciliation to the most comparabl
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