Slide 1: Third Quarter 2008 Earnings Conference Call
Third Quarter 2008 Earnings Conference Call October 22, 2008
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, these forward-looking statements should be evaluated with consideration given to the many risks and uncertain
Slide 3: Contents
Contents Third Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A 3
Slide 4: 3rd Quarter Results Overview
3rd Quarter Results Overview Earnings per diluted share were $1.25 versus $1.11 in 3Q07 — 3Q08 included $0.03 net benefit primarily due to Massachusetts tax law change — 3Q07 included $0.03 net charge for restructuring costs, partially offset by gain on property sale Comparable earnings were $1.22 v
Slide 5: 3rd Quarter Results Overview: Fleet Management Solutions
3rd Quarter Results Overview Fleet Management Solutions (FMS) total revenue up 11% (and operating revenue up 2%) vs. prior year — Contractual revenue increased 4% — Full service lease revenue grew 4% including acquisitions — Contract maintenance revenue grew 6% organically — Commercial rental revenu
Slide 6: 3rd Quarter Results Overview: SCS and DCC
3rd Quarter Results Overview Supply Chain Solutions (SCS) total revenue down 22% vs. prior year due to change from gross to net revenue reporting for a supply chain subcontracted transportation customer SCS operating revenue up 6% vs. prior year, reflecting new/expanded business and higher fuel cost
Slide 7: Key Financial Statistics, Third Quarter
Key Financial Statistics ($ Millions, Except Per Share Amounts) Third Quarter 2008 2007 % B/(W) Operating Revenue (1)(2) $1,209.8 $1,170.7 3% Fuel Services and Subcontracted Transportation Revenue (3) 416.3 477.0 (13%) Total Revenue (3) $1,626.1 $1,647.7 (1%) Earnings Per Share $1.25 $1.11 13% Compa
Slide 8: Key Financial Statistics, Year-to-Date
Key Financial Statistics ($ Millions, Except Per Share Amounts) Year-to-Date 2008 2007 % B/(W) Operating Revenue (1)(2) $3,595.0 $3,447.0 4% Fuel Services and Subcontracted Transportation Revenue (3) 1,234.9 1,452.8 (15%) Total Revenue (3) $4,829.9 $4,899.8 (1%) Earnings Per Share $ 3.31 $3.01 10% C
Slide 9: Business Segment, Third Quarter
Business Segment ($ Millions) Third Quarter Memo: Total Revenue 2008 2007 % B/(W) 2008 2007 % B/(W) Operating Revenue (1) : Fleet Management Solutions $777.1 $758.5 2% $1,166.7 $1,051.9 11% Supply Chain Solutions (2) 344.2 325.3 6% 430.8 554.0 (22)% Dedicated Contract Carriage 137.8 138.9 (1)% 140.6
Slide 10: Business Segment, Year-to-Date
Business Segment ($ Millions) Year-to-Date Memo: Total Revenue 2008 2007 % B/(W) 2008 2007 % B/(W) Operating Revenue (1) : Fleet Management Solutions $2,298.0 $2,214.7 4% $3,473.7 $3,077.3 13% Supply Chain Solutions (2) 1,035.8 977.3 6% 1,285.9 1,704.4 (25)% Dedicated Contract Carriage 413.1 412.6 0
Slide 11: Capital Expenditures
Capital Expenditures ($ Millions) Year-to-Date 2008 $ 2008 2007 O/(U) 2007 Full Service Lease $688 $725 $(37) Commercial Rental 172 200 (28) Operating Property and Equipment 89 57 32 Gross Capital Expenditures 949 982 (33) Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 212 297 (85)
Slide 12: Balance Sheet Debt to Equity
300% 250% 200% 150% 100% 50% 0% 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 9/30/08 Long Term Target Midpoint (2) Total Obligations to Equity(1) Balance Sheet Debt to Equity ($ Millions) 9/30/08 12/31/07 9/30/07 Balance Sheet Debt $2,922 $2,776 $2,816 Percent To Equity 16
Slide 13: Contents
Contents Third Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A 14
Slide 14: Asset Management Update
Asset Management Update (1) Units held for sale were 4,600 at quarter end; no change from 4,600 units held for sale at the end of the prior quarter — Units held for sale were down 39% from 7,600 in the prior year The number of used vehicles sold in the third quarter was 4,300, down 36% compared with
Slide 15: Contents
Contents Third Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A 16
Slide 16: EPS Forecast
EPS Forecast ($ Earnings Per Share) Revising full year 2008 forecast to a range of $4.43 — $4.53 Current forecast is as follows: Fourth Quarter Full Year 2008 Comparable EPS Forecast $1.03 — 1.13 $4.43 — 4.53 (1) 2007 Comparable EPS $1.18 $4.21 (1) (1) Non-GAAP financial measure. 2008 comparable EPS
Slide 17: Q&A
O&A Ciyter
Slide 18: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations 19
Slide 19: Fleet Management Solutions (FMS), Third Quarter
Fleet Management Solutions (FMS) ($ Millions) Third Quarter 2008 2007 % B/(W) Full Service Lease $516.4 $496.2 4% Contract Maintenance 43.4 40.9 6% Contractual Revenue 559.8 537.1 4% Contract-related Maintenance 48.3 48.1 1% Commercial Rental 149.5 155.0 (4)% Other 19.5 18.3 6% Operating Revenue (a)
Slide 20: Fleet Management Solutions (FMS), Year-to-Date
Fleet Management Solutions (FMS) ($ Millions) Year-to-Date 2008 2007 % B/(W) Full Service Lease $1,536.7 $1,461.4 5% Contract Maintenance 125.9 118.1 7% Contractual Revenue 1,662.6 1,579.5 5% Contract-related Maintenance 150.2 150.3 0% Commercial Rental 428.8 431.3 (1)% Other 56.4 53.6 5% Operating
Slide 21: Supply Chain Solutions (SCS), Third Quarter
Supply Chain Solutions (SCS) ($ Millions) Third Quarter 2008 2007 % B/(W) U.S. Operating Revenue Automotive & Industrial $137.1 $135.3 1% High Tech & Consumer Industries 80.1 70.6 14% Transportation Management 9.7 7.8 24% U.S. Operating Revenue (a) 226.8 213.7 6% International Operating Revenue (a)
Slide 22: Supply Chain Solutions (SCS), Year-to-Date
Supply Chain Solutions (SCS) ($ Millions) Year-to-Date 2008 2007 % B/(W) U.S. Operating Revenue Automotive & Industrial $430.4 $410.4 5% High Tech & Consumer Industries 232.3 219.6 6% Transportation Management 28.7 24.3 18% U.S. Operating Revenue (a) 691.4 654.3 6% International Operating Revenue (a
Slide 23: Dedicated Contract Carriage (DCC), Third Quarter
Dedicated Contract Carriage (DCC) ($ Millions) Third Quarter 2008 2007 % B/(W) Operating Revenue (a) $137.8 $138.9 (1)% Subcontracted Transportation 2.8 4.9 (43)% Total Revenue $140.6 $143.8 (2)% Segment Net Before Tax Earnings (NBT) $13.2 $12.3 7% Segment NBT as % of Total Revenue 9.4% 8.5% Segment
Slide 24: Dedicated Contract Carriage (DCC), Year-to-Date
Dedicated Contract Carriage (DCC) ($ Millions) Year-to-Date 2008 2007 % B/(W) Operating Revenue (a) $413.1 $412.6 0% Subcontracted Transportation 8.4 10.8 (22)% Total Revenue $421.5 $423.4 0% Segment Net Before Tax Earnings (NBT) $36.9 $35.2 5% Segment NBT as % of Total Revenue 8.8% 8.3% Segment NBT
Slide 25: Central Support Services (CSS), Third Quarter
Central Support Services (CSS) ($ Millions) Third Quarter 2008 2007 % B/(W) Allocated CSS Costs $37.9 $36.5 (4)% Unallocated CSS Costs 10.4 10.1 (3)% Total CSS Costs $48.3 $46.6 (4)% 26
Slide 26: Central Support Services (CSS), Year-to-Date
Central Support Services (CSS) ($ Millions) Year-to-Date 2008 2007 % B/(W) Allocated CSS Costs $110.2 $108.8 (1)% Unallocated CSS Costs 30.0 30.4 1% Total CSS Costs $140.2 $139.2 (1)% 27
Slide 27: Asset Management Update
Asset Management Update (a) Number of Units 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 3QYTD03 3QYTD04 3QYTD05 3QYTD063QYTD07 3QYTD08 Redeployments Extensions Early Terminations (b) Early Replacements (a) U.S. only (b) Excludes early terminations where customer purchases vehicle 29
Slide 28: Assets Under Management
3,971 3,891 3,752 3,808 3,869 3,554 3,460 3,200 3,147 3,243 3,032 3,056 3,060 2,951 2,910 2,924 2,827 2,174 1,655 1,198 1,099 1,198 1,128 710 Assets Under Management (a) ($ Millions) Forecast 2000 2001 2002 2003 2004 2005 2006 2007 9/30/08 2008 Revenue Earning Equipment $4,588 $4,148 $4,493 $5,809 $
Slide 29: Financial Indicators Forecast
Financial Indicators Forecast (1) Total Cash Generated (2) $1,692 $1,550 $1,381 $1,255 $1,183 $1,054 $1,091 $949 $835 2000 2001 2002 2003 2004 2005 2006 2007 2008 Forecast Total Obligations to Equity Ratio (2) 275% Equity 234% Total Obligations (2) 201% 168% 157% 170% 146% 151% 129% 2000 2001 2002 2
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure and an explanation why management believes that presentation of t
Slide 31: EPS and Net Earnings Reconciliation
EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) 3Q08 — 3Q08 — YTD08 — YTD08 - Net Earnings EPS Net Earnings EPS Net Earnings / EPS $ 70.2 $1.25 $189.2 $3.31 2008 Tax Changes (1.6) (0.03) (1.6) (0.03) Brazil Charges — — 6.8 0.12 Comparable Net Earnings / EPS $ 68.6 $1.22 $194
Slide 32: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 9/30/08 9/30/07 Net Earnings (1) $261 $248 Restructuring and Other Charges, Net and Other Items 8 - Income Taxes 168 147 Adjusted Earnings Before Income Taxes 437 395 Adjusted Interest Expense (2) 164 166 Adjusted Income Taxes (3) (240) (211) Ad
Slide 33: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/00 (4) 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 Cash Provided by Operating Activities $1,023 $365 $617 $803 $867 $779 $854 $1,103 Less: Changes in Balance of Trade Receivables Sold (270) 235 110 — — — — - Collections of Direct Finance
Slide 34: Cash Flow Reconciliation, Forecast
Cash Flow Reconciliation ($ Millions) Forecast 12/31/08 Cash Provided by Operating Activities $1,216 Collections of Direct Finance Leases 68 Proceeds from Sales (Primarily Revenue Earning Equipment) 266 Sale and Leaseback of Revenue Earning Equipment - Other Investing, Net - Total Cash Generated (1)
Slide 35: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) % 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% $1,783 118% $2,185 143
Slide 36: Debt to Equity Reconciliation, Forecast
Debt to Equity Reconciliation ($ Millions) Forecast % to 12/31/08 Equity Balance Sheet Debt $2,960 162% Receivables Sold - PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 160 Total Obligations (1) $3,120 170% (1) The Company uses total obligations and
Slide 37: Ryder 1933-2008
Cfyder 1933-2008