Slide 1: 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 uncertainti
Slide 2: Contents
Contents » Fourth Quarter 2003 Update » Building Upon Successes » 2004 Business Plan Themes & Key Drivers » 2004 Business Plan > Summary re Q&A
Slide 3: Fourth Quarter 2003 Update
Fourth Quarter 2003 Update » Previously announced EPS forecast was $0.53 - $0.57 for 4Q03 and $2.04 - $2.08 for FY03 — We continue to expect earnings to be within this range » Full year 2003 EPS is presented at $2.06 as the midpoint within the range” © excludes cumulative affect of changes in aocoun
Slide 4: Contents
Contents » Fourth Quarter 2003 Update » Building Upon Successes » 2004 Business Plan Themes & Key Drivers » 2004 Business Plan > Summary re Q&A
Slide 5: Building on Successes and Creating Opportunities
Building on Successes and Creating Opportunities 2004 & | Accelerating Profitable Demonstrate earnings F Gest leverage through profitable Beyond | yon growth Uv © Operating costs reduction target $13-818M. i Positioning for Long-Term, Deliver a Cost Competitive vu 2003 | Sustainable Profitable Growt
Slide 6: Market Overview
Market Overview The transportation and logistics markets present significant growth opportunities. Current estimated market sizes are as follows: Market Segment Market Size U.S. lease and rental outsourced market $25 billion U.S. dedicated contract carriage market $8 n U.S. private fleet market $56
Slide 7: Contents
Contents » Fourth Quarter 2003 Update » Building Upon Successes » 2004 Business Plan Themes & Key Drivers » 2004 Business Plan > Summary re Q&A
Slide 8: Plan Themes
Plan Themes Accelerating profitable growth by leveraging strengths and expanding capabilities » Focus on profitable revenue growth to realize earnings leverage » Progressively overcome the impact of a prolonged soft economy on contractual revenue base » Continued emphasis on prudent capital allocati
Slide 9: Key Drivers
Key Drivers » Supply Chain Solutions — Conversion of strong SCS sales pipeline is key to offset the impact of contract non-renewals and lack of 2003 sales growth — Economic recovery is sustainable and motivates significant new deal closures in first half of 2004 as well as positively impacts revenue
Slide 10: Contents
Contents » Fourth Quarter 2003 Update » Building Upon Successes » 2004 Business Plan Themes & Key Drivers » 2004 Business Plan > Summary re Q&A
Slide 11: Key Financial Statistics
Key Financial Statistics (8 Millions, Except Per Share Amounts) 2003 2004 Projection Plan Midpont__%B /@W) Reverue $4870 $4,765 2% Eamings Before Income Taxes $ 238-249 $ = 205 18-21% Provision for Income Taxes 36-90 74 16-22% Before Curnulative Effect of Accounting Changes 1 16-21% ‘Cumulative Effe
Slide 12: 2004 Causes of Change
2004 Causes of Change (3 Earnings Per Share) "Excludes cumulative affect of changes in aocounting prindples charge Of 9008, Inchides restructuring and oer recoveties,netof30.01 14
Slide 13: Business Segment
Business Segment Full Year (8 Millions) 2004PIan 2003 Pro}. Midpoint Midpoint §_% BAW) Revenue: Fleet Management Solutions $ 3320 § 3225 oe Supply Chain Solutions 41335 49338 u% Dedicated Contract Carriage 515 505 2 Eliminations G00) G00) o% Total Revenue $ 4s7o _§ ares 24 ‘Segment Net Before Tax Ea
Slide 14: Capital Expenditures
Capital Expenditures ($ Millions) Full Year 2004 2004 Plan 2003 Proj. % OU) 2003 Full Service Lease $ 839 $ 476 76% Commer Rental 245 205 20% Property, Plant & Equipment 90 54 67% Other - 15, NM Total $14,174 $ 750 57% An Eull Year 2004 Full Service Lease 21% mCommercial Rental Property, Plant & Equ
Slide 15: Capital Expenditures
Capital Expenditures » Full Service Lease: - Capital for lease vehicles is only committed after contracts are signed with customers — 2003 capital is below average annual maintenance level of capital due to slow economy and higher than normal level of term extensions and redeployments — 2004 lease c
Slide 16: Financial Indicators
Financial Indicators Free Cash Flow (§ Millions) Capital Expenditures ($ Millions) a oe tam) 2 femal onal femal fal Pre Pn ‘al Atal seta acta” PR Debt to Equity Ratio 250% OTotal Obligations to Equity © mOn-Balance Sheet Debtto Equity ()NorGANP Mavoimeas te; Arb AppenT-Now-GAAP Fiavcbl Meat me 19
Slide 17: Funding Sources
Funding Sources » Substantial debt capacity exists to support growth » Ryder continues to have broad access to the debt capital markets Recently Utilized ShortTerm US. Commercial Paper v Conduit Commercial Paper ° International Revolving Credit Facilities v Long Term Medium Term Notes -US. ¥ Interes
Slide 18: Contents
Contents » Fourth Quarter 2003 Update » Building Upon Successes » 2004 Business Plan Themes & Key Drivers » 2004 Business Plan > Summary re Q&A
Slide 19: Summary
Summary cone earnings leverage in business through profitable revenue gro’ Focus on new business development and customer retention to overcome effects of slow 2003 economy and contract non-renewals Accelerate growth lives to capitalize on economic improvements and market opportunities Leverage and
Slide 20: Q&A
O&A
Slide 21: Appendix
Appendix Business Segment Detail Non-GAAP Financial Measures
Slide 22: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) (3 Mittions) Full Year 2004 Plan 2003 Proj. % B/(W) Drv Revenue"? $ 2685 $ 2610 3% Fuel Revenue 635 615 3% Total Revenue $3320 “3.225 Segment Net Before Tax Earnings (NBT) $226 _§ 195 16% ‘Segment NBT as % of Dry Revenue"? 8.4% 7.5% Segment NBT as % of Total Revenue
Slide 23: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) (3 Mittions) Full Year 2004 Plan 2003 Proj. % B/(W) Operating Revenue” $ 960 $ 938 2% Freight Under Management 375 397 6% Total Revenue $1335 $1335 O% ‘Segment Net Before Tax Earnings (NBT) $39 $s 11% Seqment NBT as ‘% of Operating Revenue“ 4.1% 32% Segment NBT as % of T
Slide 24: Dedicated Contract Carriage (DCC)
Ryder Dedicated Contract Carriage (DCC) (3 Mittions) Full Year 2004 Plan 2003 Proj. % B/(W) Operating Revenue” $ 510 $ 500 2% Freight Under Management 5 6 0% Total Revenue $515 $505 2 ‘Segment Net Before Tax Earnings (NBT) $5 gt 13% Seqment NBT as ‘% of Operating Revenue“ 6.9% 6.2% Segment NBT as %
Slide 25: Non-GAAP Financial Measures
required by SEC rules, We the most comparable GAAI Non-GAAP Financial Measures » 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 26: Non-GAAP Financial Measures
Non - GAAP Financial Measures (3 Millions) Free Cash Flow Reconciliation 1999 200 2001 2002 _2003Proj._ _2004Pian Cash Provided by Operating Activities $ 258 $ 10155 $ 30Rr $ 6328 $ 8684 $ 8999 Changes in Balance of Trade Receivables Sold 125.0 (770.0) 236.0 110.0 : Collections of Direct Finance Lea
Slide 27: Non-GAAP Financial Measures
Ryder Non - GAAP Financial Measures (3 Millions) wb wt wt wb we or sso __caully goo caus oot equity, _avoa__equty soos pmy_eautty _gooe pian _sauly ‘on-Enlance shoot owt $2054 19m $2010 fem FLT OR FAS ef eT Og tees mae saulpment wees m4 cus a4 190.0 no Pv otsoningentrontn Under wuts tone nas mas rr
Slide 28: Cityder
Cityder