Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — DB AutoTech Conference 2021
25 slides from Hertz Global's conference presentation, Dec 9, 2021
Slide 1: Hertz Presentation – DB AutoTech conference
Hertz Presentation – DB AutoTech conference December 9, 2021 Courtesy of Tesla, Inc.
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT HAS BEEN PREPARED BY HERTZ AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN MAY BE SUPERSEDED IN ITS ENTIRETY BY FURTHER UPDATED MATERIALS, AND FILINGS MADE PURSUANT TO THE U.S. SECURITIES EXCHANGE ACT OF 1934 BY HERTZ. THE FUTURE PERFORMANCE OF HERTZ M
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Hertz Global Overview Hertz Global Holdings, Inc. is the top-level holding company of The Hertz Corporation. The Companies operate their vehicle rental business globally, primarily through the Hertz, Dollar and Thrifty brands. Hertz Global has two reportable segments as follow
Slide 4: Disclaimer (Continued)
Disclaimer (Continued) Forward-Looking Statements Certain statements contained in this presentation, and in related comments by Hertz’s management, include “forward-looking statements.” Forward-looking statements include information concerning Hertz’s liquidity and its possible or assumed future res
Slide 5: The New Hertz… Accelerating Forward
The New Hertz… Accelerating Forward
Slide 6: Executive Summary
Executive Summary Actively performing a central role in the modern mobility ecosystem by leveraging Hertz’s vast platform and capabilities Significant structural improvements¹ to existing business² Enhanced future potential of rental car business through relationships with Amex GBT, TripAdvisor and
Slide 7: Global Car Rental Leader, Well Positioned For Future Growth
Global Car Rental Leader, Well Positioned For Future Growth Leading Rental Car Franchise Iconic Family of Brands Leading Customer Satisfaction ✓ Global leader in vehicle rental industry with operations in the Americas, Europe and EMEA ✓ Well-diversified business mix by 2020 Business Women’s JD Power
Slide 8: Transforming Into “New” Hertz – A New, Healthier Business
Transforming Into “New” Hertz – A New, Healthier Business Poised for Profitable Growth Metric “Legacy” Hertz1 “New” Hertz2 Revenue per Unit $1,1655 ~$1,260+2,3 Improved Growth (“RPU”) Profile and Customer Experience Customer Revamped, All-Digital Brick & Mortar Experience Customer Experience Optimiz
Slide 9: Partnerships
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Slide 10: Significant Commercial Partnerships with Leading Online Travel Platforms
Significant Commercial Partnerships with Leading Online Travel Platforms World’s Leading B2B travel platform: One of the world’s largest online travel websites GBT customers include: 40% 50% 460 million 830 million of the top 100 U.S. companies of the 10 largest healthcare Average unique monthly vis
Slide 11: Platform for Modern Mobility
Platform for Modern Mobility
Slide 12: Positioned to be a Leader in the Future Mobility Ecosystem
Positioned to be a Leader in the Future Mobility Ecosystem Buy Deploy Dispose BUY ▪ 100k EVs ordered in 2021 ▪ Accelerates achievement of ▪ Significant supply volume ▪ 4 million+ “test drives” annually once fully zero-emissions ▪ Well-maintained vehicles operational ▪ Exclusive nationwide contract ▪
Slide 13: Tesla Relationship “Democratizes” EVs for Consumers
Tesla Relationship “Democratizes” EVs for Consumers Access to ~3k chargers in Access to ~4k chargers in Equivalent to ~22% ~100k EVs ordered in 2021 65+ markets by YE2022 100+ markets by YE2023 of Hertz’s global fleet today (Level 2 chargers) (mix of DC Fast and Level 2) Mutually-Beneficial Relation
Slide 14: Extensive Charging Infrastructure Rollout Underway
Extensive Charging Infrastructure Rollout Underway Hertz-owned infrastructure will meet 100% of our operational needs, with third-party networks providing on-rent charging support to customers 4,000+ Chargers by YE2023 400+ Locations with chargers, addressing 70+% of Hertz’s volume 70-80% Utilizatio
Slide 15: Exclusive Uber Partnership Creates Value For All
Exclusive Uber Partnership Creates Value For All Superior driver economics & Accelerates Uber’s achievement Exclusive, nationwide contract experience of zero emissions Hertz Assets & Capabilities Drive Mutual Benefit with Uber’s Ride-Hailing Platform ▪ Differentiates Uber through access to a ▪ Exten
Slide 16: Digitization of Selling Process To Optimize Fleet Dispositions
Digitization of Selling Process To Optimize Fleet Dispositions 200,000+ Vehicles¹ Retail Level Margins Typically disposed through wholesale channels Significant improvement over wholesale disposition Increasing benefits with scale Nationwide Partnership benefits ▪ Greater visibility into consumer re
Slide 17: Hertz Has Rapidly Positioned Itself At The Center Of The Modern Mobility Ecosystem
Hertz Has Rapidly Positioned Itself At The Center Of The Modern Mobility Ecosystem • First mobility company to offer large fleet of EV rentals, driving • Strategic partnership with Uber to demand and higher unit revenue provide large-scale EV fleet • National infrastructure and fleet • Lower total c
Slide 18: Financials
Hertz dollar. farirty CAR RENTAL CAR RENTAL Financials
Slide 19: Structural Revenue Per Unit Gains
Structural Revenue Per Unit Gains Total RPU Walk Q3 2019 to Q3 2021 Q3 2019 Total RPU $1,165 Mainly driven by vehicle Market Forces $313 shortage and robust demand Contractual Exited low margin contracts and Changes $30 low revenue locations Shift business to Segment Mix $95 Total RPU $15 profitable
Slide 20: Transformed Cost Structure with Additional Opportunity
Transformed Cost Structure with Additional Opportunity Structural Cost Reduction Through Restructuring Achievements $’M ▪ Achieved $500 million of cost reduction during restructuring of which $200M may return with volume recovery ▪ Closed low margin sites Facilities & ▪ Improved partnership agreemen
Slide 21: Reset Adjusted Corporate EBITDA Baseline
Reset Adjusted Corporate EBITDA Baseline 2019 EBITDA Walk, as Adjusted for Realized Operational Initiatives $’M 2019 Actual 2019 Actual $649 As reported in 2019 10-K Donlen Adjustment Donlen ($100) Adjustment for sale of Donlen business Adjustment Cost Reduction Cost Structural cost reduction of $20
Slide 22: Long-Term Trends
Long-Term Trends Global Business Measure Revenue Per Unit Per Month (RPU) Sustainable increase of ~$95 per month (~$4 of RPD) vs. 2019 baseline, excluding transient market factors DOE, SG&A, and vehicle interest $300M reduction vs. 2019 baseline Operating Cash Flow Conversion¹ Approximately 90% of A
Slide 23: Value Creation
Our Investment Case Modern Mobility Platform EV and Charging Ride Share Fleet Optimization Distribution Data Analytics Value Creation Operational Improvements Revenue DOE & SG&A Fleet Interest Telematics +$95 RPU $200M reduction $100M reduction Substantially complete by YE2022 Global Car Rental Lead
Slide 24: Reconciliation of non-GAAP numbers
Reconciliation of non-GAAP numbers RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED CORPORATE EBITDA FY19 Adjusted Corporate EBITDA - Net income/(loss) attributable to Hertz Global $'m (58) Adjustments: - Income tax provision/(benefit) 63 - Non-vehicle depreciation and amortization 203 - Non-ve
Slide 25: Image Courtesy of Tesla, Inc.
Image Courtesy of Tesla, Inc.