Slide 1: Second Quarter 2018 Earnings Call
2018 SECOND QUARTER EARNINGS CALL August 8, 2018 Webcast: ir.avisbudgetgroup.com Dial-in: (630) 395.0021 Replay: (203) 369-1607 Passcode: 2995545
Slide 2: Forward-Looking Statements
FORWARD- 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 e
Slide 3: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS • Strong overall volume growth and positive underlying Americas pricing • Substantially lower per-unit fleet costs and higher utilization • Double-digit profit growth and margin expansion • Fleet now includes 100,000 connected cars • Exciting new announcements about Amazon,
Slide 4: Second Quarter Results
SECOND QUARTER RESULTS (in millions) Revenue Adjusted EBITDA $161 $2,328 $2,238 4% 15% $140 Second Quarter Second Quarter Second Quarter Second Quarter 2017 2018 2017 2018 Reconciliation of net income (loss) to Adjusted EBITDA can be found on slide A-3 of this presentation 4
Slide 5: Strategic Initiatives
STRATEGIC INITIATIVES • Amazon – benefits for Amazon customers renting from Avis Exciting New • Luxury Retreats – exclusive partnership Announcements • Lyft – participating in the growth of the ride hailing market Web and Mobile • Prepaid reservations growing double-digits Platforms • Driving more b
Slide 6: Advances in Mobility
ADVANCES IN MOBILITY Innovating with new Zipcar products • Adding 325 VW electric Golf’s to London fleet • Commuter product growing strong double-digits Driving efficiencies through Connected Car • Connected car fleet increased to 100,000 vehicles • Benefits include increased revenue and lower costs
Slide 7: Americas Second Quarter Results
AMERICAS SECOND QUARTER RESULTS • Revenue growth driven by higher volumes • Revenue per Day 1% lower due to ancillary revenue, longer length of Revenue per Day improved as the quarter rental and loyalty accounting progressed Pricing under historical T&M per Day metric increased by 1% in Leisure volu
Slide 8: Americas Fleet Costs
AMERICAS FLEET COSTS Monthly Per- Per-Unit Fleet Costs Alternative Disposition Channels $345 52% (7%) $322 48% 4 ppts Second Quarter Second Quarter Second Quarter Second Quarter 2017 2018 2017 2018 8
Slide 9: International Second Quarter Results
INTERNATIONAL SECOND QUARTER RESULTS • Revenue increased 4% in constant currency Commercial volume grew 14% Revenue per Day was 2% lower in local currency Leisure T&M per Day was unchanged • Currency contributed $19 million to Adjusted EBITDA (in millions) Revenue Adjusted EBITDA $738 $71 $673 10% $
Slide 10: Strong Cash Flow and Funding Position
STRONG CASH FLOW AND FUNDING POSITION • Generated $70 million of Adjusted Free Cash Flow in the quarter Repurchased 1.6 million shares • $2.4 billion of available liquidity Increased share repurchase authorization • Corporate leverage of 3.9x, no maturities until 2022 by $250 million • Ended the qua
Slide 11: Updating 2018 Adjusted Earnings Outlook
UPDATING 2018 ADJUSTED EARNINGS OUTLOOK Year- Year-over- over-Year (in millions, except EPS) Full- Full-Year Projection Growth Revenues $9,050 – 9,300 [3--6%] [34% Adjusted EBITDA 740 – 820 [1- -10%] [16% Non-vehicle D&A 200 [4%] 0% Interest expense 200 [6%] 6% Adjusted pretax income 340 – 420 [(5%)
Slide 12: Reiterating 2018 Adjusted Free Cash Flow Outlook
REITERATING 2018 ADJUSTED FREE CASH FLOW OUTLOOK (in millions) Full- Full-Year Projection Adjusted pretax income $340 – 420 Plus: Non-vehicle D&A 200 Less: Capex (225) Less: Cash taxes (45) – (55) Plus: Vehicle programs, 35 – 55 Working capital and other Adjusted Free Cash Flow $325 - 375 All figure
Slide 13: Summary
SUMMARY • Strong second quarter driven by: Robust overall volume growth Lower per-unit fleet costs Higher utilization • Margin improved 70 basis points year-over-year • Exciting new announcements about industry leading innovators 13
Slide 14: Avis Budget Group
avis budget group
Slide 15: Appendix
APPENDIX
Slide 16: 2018 Currency Outlook
2018 CURRENCY OUTLOOK First Second Third Fourth Full Year (in millions) Quarter Quarter Quarter Quarter 2018 Revenue $63 $41 $(26)-(17) $(18)-(7) $60-80 Adjusted EBITDA $6 $21 $(6)-0 $(1)-3 $20-30 (net of hedging) Expect a $20 - $30 million year-over-year Adjusted EBITDA benefit A-1
Slide 17: Definitions
DEFINITIONS This presentation includes certain non-GAAP (generally accepted accounting principles) financial measures as defined under SEC rules. We have provided below reasons why we present these non- GAAP financial measures, a description of what they represent and a reconciliation to the most co
Slide 18: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON- NON-GAAP MEASURES Reconciliation of net income to Adjusted net income (in millions, except per-share amounts): Three Months Ended June 30, 2018 2017 Net Income $ 26 $ 3 Add certain items, net of tax: Acquisition-related amortization expense 13 11 Restructuring and other relat
Slide 19: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON- NON-GAAP MEASURES Reconciliation of Net Corporate Debt (in millions): June 30, 2018 Corporate debt $ 3,568 Less: Cash and cash equivalents 489 Net Corporate Debt $ 3,079 Last Twelve Months ended Reconciliation of net income to Adjusted EBITDA (in millions): June 30, 2018 Net