Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Baird 2015 Growth Stock Conference
24 slides from Avis Budget's conference presentation, May 2015
Slide 1: Presentation to Investors
Presentation to Investors May 2015
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: Agenda
Agenda The business today Market dynamics Driving sustained profitable growth 3
Slide 4: A Global Leader in the Car Rental Industry
A Global Leader in the Car Rental Industry 140 million 10,000 rental days locations $8 billion annual revenue 35 million 545,000 transactions vehicles 4
Slide 5: Diversified Revenue Sources
Diversified Revenue Sources Commercial vs. On-Airport vs. Americas vs. Avis vs. Budget Leisure Off-Airport International 65% 30% 45% 55% 70% 30% 70% 30% Zipcar Locations in more than 175 countries and a leading position in most major markets 5
Slide 6: Substantial, Leading Presence Outside the Americas
Substantial, Leading Presence Outside the Americas 37 million 3,500 rental days locations $2.5 billion annual revenue 8 million 140,000 transactions vehicles 6
Slide 7: Diversified Revenue Sources for Our International Segment
Diversified Revenue Sources for Our International Segment Commercial vs. On-Airport vs. Europe vs Avis vs. Budget Leisure Off-Airport Asia-Pacific Avis Commercial Airport Europe 80% 20% 35% 65% 65% 35% 65% 35% Off- Budget Leisure Airport Asia-Pacific Locations in more than 120 countries 7
Slide 8: Substantial and Diversified Licensee Revenue Stream
Substantial and Diversified Licensee Revenue Stream Approximately $100 Million of High-Margin Licensee Revenue in Our International Segment Asia- Pacific 20% Europe TAIW AN Middle 50% East and Africa 30% Corporate Avis licensee, Budget joint venture Licensee No locations Joint venture 8
Slide 9: Differentiated Brand Portfolio to Meet Customer Needs
Differentiated Brand Portfolio to Meet Customer Needs International Americas Premium Car Rental Mid-tier Car Rental Deep-Value Car Rental Car Sharing 9
Slide 10: Competitive Landscape
Competitive Landscape Premium Sector Mid-tier Deep-Value Car Sharing 10
Slide 11: Agenda
Agenda The business today Market dynamics Driving sustained profitable growth 11
Slide 12: Economic Environment Remains Challenging
Economic Environment Remains Challenging UK Shifting business mix to focus on high-profit accounts Germany and France Challenging domestic demand, mitigated by growth in leisure Italy and Spain Strong inbound growth with corporate demand recovering Australia and New Zealand Australian pricing stabil
Slide 13: Agenda
Agenda The business today Market dynamics Driving sustained profitable growth 13
Slide 14: Strategic Plan
Strategic Plan Driving Sustained, Profitable Growth Drive Strategically Expand Our Put the Efficiency Accelerate Global Customer Throughout Growth Footprint First the Organization 14
Slide 15: Capture Highly Profitable Cross-Border Demand
ACCELERATE GROWTH Capture Highly Profitable Cross-Border Demand International Inbound (a) Revenue Leveraging strong licensee partners Increased investment in cross-border +13% marketing 2012 2014 Increasing investment and resources to drive additional cross border revenue (a) Excluding currency effe
Slide 16: Budget Volume Has Almost Doubled in Europe Since 2012
ACCELERATE GROWTH Budget Volume Has Almost Doubled in Europe Since 2012 Budget Europe Budget network expanded Rental Days – Launched in Spain – Acquired license rights in Italy, Portugal, Belgium and Luxembourg – Dual-branded locations +80% Added to major travel partnerships Sales team reorganized a
Slide 17: Driving Profitability Through Growth in Ancillary Products
ACCELERATE GROWTH Driving Profitability Through Growth in Ancillary Products Ancillary Revenue (a) Driving sales culture per Day Trained almost 3,000 rental sales staff +22% Introduced new products 2012 2014 Generating more than $10 revenue per rental day (a) Excluding gas, customer recoveries and c
Slide 18: Significant Opportunity for Zipcar Expansion
ACCELERATE GROWTH Significant Opportunity for Zipcar Expansion International Zipcar currently operates in Zipcar Membership six international cities First Zipcar licensee +8% launched in Turkey in April 2015 Expect to launch additional markets this year 2013 2014 18
Slide 19: Acquisitions of Maggiore and Scandinavia Licensee Accelerate Profitable Growth
EXPAND GLOBAL FOOTPRINT Acquisitions of Maggiore and Scandinavia Licensee Accelerate Profitable Growth Maggiore acquisition completed in April 2015 – Avis Budget Group is now the largest vehicle rental company in Italy – Increases presence in important van rental market Scandinavia licensee acquisit
Slide 20: Improving the Customer Experience
CUSTOMER FIRST Improving the Customer Experience Line-busting tablet technology reduces customer wait times New websites and mobile apps improve loading times and conversion Further improvements expected to be launched in 2015 20
Slide 21: Driving Cost Savings and Process Improvements
DRIVE EFFICIENCY Driving Cost Savings and Process Improvements Organizational Implementation of regional Transformation structure drives savings Operational Improving utilization and Excellence productivity Performance Performance Excellence Excellence contributing to profitability Globalization Inc
Slide 22: 2015 Outlook
2015 Outlook Economic environment remains uneven Expect full-year volume to increase double-digits – Reflecting acquisitions and organic growth Full-year results expected to be impacted by currency headwinds Continued Zipcar expansion throughout the region 22
Slide 23: Key Messages
Key Messages Broadest A market leader with the broadest Brands brand portfolio Well Well-positioned for recovery in demand Positioned Continued expansion through our Budget Growth and Zipcar brands and acquisitions Operational Driving incremental profitability through Excellence operational excellen
Slide 24: avis budget group
avis budget group
Avis Budget Group — Baird 2015 Growth Stock Conference on 6ix