Slide 1: Earnings Conference Call
Earnings Conference Call February 5, 2004
Slide 2: Safe Harbor
Safe Harbor Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995 Accordingly, we advise that these forward-looking statements be evaluated with consideration given to the many uncertaintie
Slide 3: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A Contents
Slide 4: 4th Quarter Results Overview
4th Quarter Results Overview Earnings per diluted share were $0.61, up from $0.52 in 4Q02 - Includes $0.03 provision for net restructuring charges vs. $0.06 provision in prior year quarter Total revenue up 1% vs. prior year Lease revenue slightly up year-over-year; demand remained slow Continuing ye
Slide 5: 4th Quarter Results (continued)
4th_ Quarter Results (continued) Overview Supply Chain Solutions revenue up 2% vs. prior year U.S. Supply Chain Solutions revenue down due to volume reductions and non-renewal of certain contracts Revenue increases realized in Canada, Latin America and Asia, partially offset by declines in Europe Su
Slide 6: Earnings Per Share - Fourth Quarter
Earnings Per Share Fourth Quarter Actual Results 2003 2002 Total EPS $ 0.64 0.52 Memo: EPS Impact of Pension Expense $ (0.19) (0.08) EPS Impact of Restructuring Charges, Net $ (0.03) (0.08) Average Shares (Millions) - Diluted 65.1 627 Tax Rate 36.2% 35.5%
Slide 7: Earnings Per Share - Full Year
Earnings Per Share Full Year Actual Results 2003 2002 EPS Before Cumulative Effect of Accounting Changes | $ 212 $ 180 Cumulative Effect of Changes in Accounting Principles (0.08) (0.30) Total EPS $ 206 $ 1.50 Memo: EPS Impact of Pension Expense $ (0.82) $ (0.30) EPS Impact of Restructuring Charges,
Slide 8: Business Segment - Fourth Quarter
Business Segment (3 Mittions) Fourth Quarter 2003 2002 % BIW) Revenue: Fleet Management Solutions $ ons § BMT 1 Supply Chain Solutions 215 ud a Dedicated Contract Carriage 130.4 136 (2% Segment Net Before Tax Earnings: Fleet Management Solutions $ %2 § 638 (139% Supply Chain Solutions 42 (eo) nM Ded
Slide 9: Business Segment - Full Year
Business Segment Full Year 2003 Revenue: Feet Management Solutions $ 32317 Supply Chain Solutions 1,362.4 Dedicated Contract Carriage S17 Biminations (306.5) Tota Revenue Segment Net Before Tax Earnings: Fleet Management Solutions ‘Supply Chain Solutions Dedicated Contract Carriage Biminations Centr
Slide 10: Capital Expenditures
Capital Expenditures Full Year (3 Millions) 2003 % 2003 2002 o/tu) 2002 Full Service Lease $ 459° «$536 (14% Commercial Rental 220 19 NM Property, Plant & Equipment 46 4 5th Other : 1 NM Total excluding acquisitions 725 600 21% Acquisitions 97 NM Total $822 $600 37% Memo: Fourth Quarter excluding ac
Slide 11: Debt to Equity Ratio
Debt to Equity Ratio (8 Mittions) sot woe 250% CO Total Obligations to Equity 0% bkdes On Balance Sheet Debt to Equity ‘00s sox ot ga2ws 302003 aa 2002 lonBalance Sheet Debt Stas § 40760 § 48518 poreent (oe ae 135% 144% 140% ‘Total obtigations" $ 19090 $ 4,995.7 § 22229 Percent To Equity 146% 169% 2
Slide 12: Free Cash Flow
Free Cash Flow (3 Mittions) Full Year 2003 2002 Net Earnings"? $ 131 $ 94 Cumulative Effect of Accounting Changes 4 19 Depreciation, Net of Gains 609 538 Amortization and Other Non-Cash Charges (Net) 3 9 Capital Expenditures 725) (600) Acquisitions @7)| x Proceeds from Sales of Assets 213 153 Change
Slide 13: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A Contents
Slide 14: 2003 Key Initiatives Update
2003,Key Initiatives Update ' Status Update » Focus on cost management and process improvement initiatives continues — 2003 new initiatives added an incremental $37 million in pre-tax earnings ($ Millions) FullYear 2003 Full Year 2003 Prefax Goal Realized Benefts _ Asset Management $37 million ‘Over
Slide 15: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A Contents
Slide 16: Focused efforts in the area of asset management
» Focused efforts in the area of asset management continue to positively impact earnings and strengthen free cash flow — Redeployments have declined 17% and total extensions have declined 22%; however, both continue to be ahead of plan [mYTO Sep 89 GFY SS FY 00 mFYO1 mFY G2 CFYOS Redeployments Total
Slide 17: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A Contents
Slide 18: Pension Update
Pension Update Ryder made $50 million contribution to U.S. pension plan in Oct. 2003 Present value of estimated required contributions over the next 5 years totals $85 million to U.S. plan and $150 million globally (assuming expected long-term rate of return realized and other assumptions remain unc
Slide 19: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A 20 Contents
Slide 20: Acquisition Update
» General Car and Truck Leasing System — Acquisition was effective December 31, 2003 — Expect to book no goodwill from acquisition — Over 4,000 vehicles acquired Interviewing and hiring of selected employees completed 14 acquired facilities now operating as Ryder locations — Remaining business conso
Slide 21: Contents
» Fourth Quarter Results » Key Initiatives Update » Asset Management Update » Pension Update » Acquisition Update » Earnings Outlook rQ&A 2 Contents
Slide 22: Earnings Outlook
Earnings Outlook (8 Earnings Per Share) > Increasing full year 2004 forecasted earnings by $0.06 to $2.46 - $2.56 per share. >» Current projection for EPS is as follows: ist Quarter Full Year 2004 Projected EPS 0.36 - 0.39 2.46 -2.56
Slide 23: Q&A
O&A
Slide 24: Appendix: Business Segment Detail and Non-GAAP Measures
Business Segment Detail Asset Management Update Non-Revenue Earning Equipment Pension Expense Detail Non-GAAP Financial Measures & Reconciliations 28
Slide 25: Fleet Management Solutions (FMS) - Fourth Quarter
Ryder Fleet Management Solutions (FMS) (3 Mittions) Fourth Quarter 2003, 2002 % Bi Full Service Lease and Program Maintenance (RPM) $ 4498 $ 444.3 1% Commercial Rental 129.7 119.4 o% Other 75.5 87.3 (14) Dry Revenue" 655.0 651.0 1% Fuel Revenue 156.3 153.7 2% Tota Revenue $8113 _$ 8047 1% Segment Ne
Slide 26: Fleet Management Solutions (FMS) - Full Year
Ryder Fleet Management Solutions (FMS) Full Year 2003 Full Service Lease and Program Maintenance (RPM) $ 1,791.5 Commercial Renta 4909 Other 308.6 Dry Revenue “) 2,591.0 Fuel Revenue 640.7 Tota Revenue $ 93,2917 Segment Net Before Tax Earnings (NBT) $1955 Segment NBT as % of Total Revenue Segment NB
Slide 27: Supply Chain Solutions (SCS) - Fourth Quarter
Supply,Ghain Solutions (SCS) (3 Mittions) Fourth Quarter 2003 2002 % BIW) USS. Operating Revenue Automotive, Aerospace & Industria (AA) $1044 $1067 (2)% High Tech & Consumer Industries (HCI 623 68.0 8)% other 3% U.S. Operating Revenue (4)% International Operating Revenue © 37% Operating Revenue”) 5%
Slide 28: Supply Chain Solutions (SCS) - Full Year
(GS Mittions) 2003 2002 % Bit) U.S. Operating Revenue Autonotive, Aerospace & Industrial (AN $ 4398 (4)% High Tech & Consumer Industries (HCI) 295.4 (16)% other 14.4 2% US. Operating Revenue 749.6 @)% International Operating Revenue ° 228.2 18% Operating Revenue ©! 9778 @)% Freight Under Management
Slide 29: Dedicated Contract Carriage (DCC) - Fourth Quarter
Ryder Dedicated Contract Carriage (DCC) (3 Millions) Fourth Quarter 2003 2002 % Bit) Operating Revenue! $ 1290 $ 1326 Bye Freight Under Management 14 1.0 40% Total Revenue $ 1304 $ 1336 2% Segment Net Before Tax Earnings (NBT) $ 41% Segment NBT as % of Total Revenue Segment NBT as % of Operating Rev
Slide 30: Dedicated Contract Carriage (DCC) - Full Year
Ryder Dedicated Contract Carriage (DCC) (3 Millions) Full Year 2003 2002 % Bit) } ay% 10% (1% Operating Revenue Freight Under Management Total Revenue Segment Net Before Tax Earnings (NBT) 8% Segment NBT as % of Total Revenue Segment NBT as % of Operating Revenue"! 1 The Company uses operating reven
Slide 31: Central Support Services (CSS) - Fourth Quarter
Services (CSS) (3 Millions) Fourth Quarter 2003 2002 BIW) Allocated CSS Costs $ 45.1 $ 538 16% Unallocated CSS Costs 6.1 46 B3)% Total CSS Costs $512 $58.4 12% 32
Slide 32: Central Support Services (CSS) - Full Year
Services (CSS) (3 Millions) Full Year 2003 2002 BIW) Allocated CSS Costs $ 188.6 $ 2088 10% Unallocated CSS Costs 244 246 1% Total CSS Costs $213.0 $233.4 9% 33
Slide 33: Non-Revenue Earning Equipment
Ryder Non-Revenue Earning Equipment —=—No Longer Earning -"NLE" —+—Not Yet Earning - "NYE" C 9201 9.015 g.ss4 SBE AG 506 2 7823 40 7,040 oS 7961 6,652 7,000 7 [Ex rss ap} >a] > [aa7a] 2,389 2.939 Me EN oss tne 179 1091 1915 gay 1979 P23hsi7 02 sept 2002 Note: US. only 34
Slide 34: Pension Expense Causes of Change
Pension Expense Causes of Change 2003 Pension Expense U.S. Qualified Plan Adjustments: Reduction in Discount Rate (from 6.5% to 6.0%) Benefit of 2003 Pension Contribution ($50 million) Higher than Assumed Return on Assets in 2003 (24% vs 8.5%) Total US. Qualified Plan Adjustments U.S. Non-Qualified
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures required by SEC rules, we the most comparable GAAI » This presentation includes "non-GAAP financial measures” as defined by SEC rules. As rovide a reconciliation of each non-GAAP financial measure to measure and an explanation why management believes that presentation of
Slide 36: Free Cash Flow Reconciliation
Free Cash’Flow Reconciliation Full Year 2003 Cash Provided by Operating Activities $ 8169 Changes in Balance of Trade Receivables Sold : Collections of Direct Finance Leases 614 Proceeds from Sales of Assets 2125 Capital Expenditures (725.1) Acquisitions (96.5) Other, net Free Cash Flow”) $2692 (GS
Slide 37: Debt to Equity Reconciliation
Debt.to;Equity Reconciliation % to % to % to 402003 Equity _30.2003 Equity _402m2 Equity On Balance Sheet Deht $ 19159 136% $ 1,760 148% —$ 1,5515 140% PY of minimum {ease payments and guaranteed residual values under operating leases for equipment 153.4 1097 3704 PV of contingentrentalsunder secun