Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q3 2023 Earnings Presentation
19 slides from Hertz Global's earnings presentation, Oct 26, 2023
Slide 1: Hertz Global Holdings Q3 2023 Earnings Presentation
HERTZ GLOBAL HOLDINGS INC . Q 3 2 0 2 3 E A R N I N G S P R E S E N TAT I O N October 26, 2023
Slide 2: Important Disclosures
I M P O R TA N T D I S C L O S U R E S FORWARD LOOKING STATEMENTS NON-GAAP MEASURES AND KEY METRICS Certain statements made within this presentation contain The following non-GAAP measures and key metrics will be used in forward looking statements. Forward looking statements are the presentation: no
Slide 3: Hertz - Global Leader in Car Rental
H E R T Z - G L O B A L L E A D E R I N C A R R E N TA L 105 years of operations 11,600 $9B >500k locations annual revenue vehicles 160 25,000 >22M countries employees annual rentals INVESTOR PRESENTATION | Q3 2023 Note: Data For Full Year 2022 3
Slide 4: Global Results - Year over Year
G L O B A L R E S U LT S – Y E A R OV E R Y E A R Q3 2022 Q3 2023 DRIVERS REVENUE $2.5B $2.7B +8% We continue to experience a strong overall demand environment TRANSACTION DAYS 37.1M 43.1M +16% Sustained volume growth in Q3 2023 across leisure, rideshare and corporate channels RPD $67.48 $62.46 (7%)
Slide 5: Global Results - Sequential
G L O B A L R E S U LT S – S E Q U E N T I A L Q2 2023 Q3 2023 DRIVERS REVENUE $2.4B $2.7B +11% Seasonal demand strength in Q3 led to strong volume TRANSACTION DAYS 39.7M 43.1M +9% Strength in Q3 leisure volumes RPD $61.14 $62.46 +2% Seasonal rate improvement AVERAGE FLEET 561k 590k +5% Seasonal gro
Slide 6: Key Drivers in Q3
KEY DRIVERS IN Q3 REVENUE GROWTH RIDESHARE RPD • Record reported quarterly • Year-over-year volume • Market shares and pricing revenue growth of 50% stable in quarter across the industry • Strong sequential leisure • Growth across both EV pricing in Hertz brand and ICE vehicles • Strong leisure RPD
Slide 7: EV Dynamics
E V DY N A M I C S VEHICLE DAMAGE AND UTILIZATION / MIX FIRST MOVER BENEFITS DEPRECIATION COLLISION • Advantageous positioning for • Significant EV price • Elevated incidence of • Oversupply of EVs in coming rideshare requirements reductions by OEMs damage/collision and RAC negatively throughout 202
Slide 8: Under the Hood - Rate and Volume
U N D E R T H E H O O D – R AT E A N D VO LU M E GLOBAL RPD +35% $58.54 $60.48 $65.79 $61.14 $67.48 $62.46 RATE PER DAY DYNAMICS $42.16 $42.68 $46.25 • Hertz brand showed RPD strength sequentially • Customer channels like insurance replacement and rideshare tend to carry lower RPD than leisure, but
Slide 9: Under the Hood - DOE
UNDER THE HOOD - DOE DIRECT OPERATING EXPENSES PRODUCTIVITY INITIATIVES HAVING IMPACT • Total DOE increased by 17% year over year, driven by Delivered unit basis productivity gains across key increase in volume categories of DOE in the quarter – amounting to more than $100 million in aggregate savin
Slide 10: Initiatives in Focus
I N I T I AT I V E S I N F O C U S Technology Operational Efficiency Vehicle Dispositions Investing in cloud migration, digital app Continuing focus on global cost base Expanding use of retail channels, enhancements, and revenue and fleet through improved productivity and including Carvana, to captu
Slide 11: Corporate Debt and Liquidity
C O R P O R AT E D E B T A N D L I Q U I D I T Y NON-VEHICLE DEBT MATURITY SOLID LIQUIDITY POSITION PROFILE AT SEPTEMBER 30, 2023* AT SEPTEMBER 30, 2023 • Liquidity of $1.7B $1,216 • ~$600M of unrestricted cash $1,000 • $1.1B available under First Lien RCF $650 • Net Non-vehicle Debt of $2.3B • No m
Slide 12: Contact Us
C O N TA C T U S Hertz Global Holdings, Inc. Johann Rawlinson Investor Relations Vice President Investor Relations 8501 Williams Rd, Estero, FL 33928 Krista Carey Senior Director Investor Relations Investorrelations@hertz.com INVESTOR PRESENTATION | Q3 2023 12
Slide 13: Appendix
APPENDIX Hertz dollar. Thriffy CAR RENTAL CAR RENTAL o
Slide 14: Non-GAAP Reconciliation
N O N - G A A P R E C O N C I L I AT I O N (In Millions) Q3 2023 Q2 2023 Q3 2022 HERTZ GLOBAL HOLDINGS, INC. Adjusted Corporate EBITDA: RECONCILIATION OF GAAP TO NON-GAAP Net Income (Loss) $629 $139 $577 MEASURE – ADJUSTED CORPORATE EBITDA UNAUDITED Adjustments: Income Tax Provision (Benefit) (70) 1
Slide 15: Non-GAAP Reconciliation
N O N - G A A P R E C O N C I L I AT I O N (In Millions) Q3 2023 Q2 2023 Q3 2022 HERTZ GLOBAL HOLDINGS, INC. Adjusted Operating Cash Flow And Adjusted RECONCILIATION OF GAAP TO NON-GAAP Free Cash Flow: MEASURE – ADJUSTED OPERATING CASH FLOW Net cash provided by (used in) operating activities $851 $4
Slide 16: Global Key Metrics
GLOBAL KEY METRICS Transaction Days ("Days"; also referred to as "volume") Q3 Q3 YoY Q2 QoQ Transaction Days represents the total number of 24-hour periods, with any ($ In Millions, Except Where Noted) % % 2023 2022 Inc/(Dec) 2023 Inc/(Dec) partial period counted as one Transaction Day, that vehicle
Slide 17: Global Key Metrics
GLOBAL KEY METRICS Available Rental Car Days Q3 Q3 YoY Q2 QoQ ($ In Millions, Except Where Noted) % % Available Rental Car Days represents Average Rentable Vehicles multiplied 2023 2022 2023 Inc/(Dec) Inc/(Dec) by the number of days in a given period. Vehicle Utilization Average Vehicles ("Fleet Cap
Slide 18: DOE per Day
D O E P E R DAY Direct Operating Expense per Transaction Day (“DOE per Day”) Q3 Q3 YoY Q2 QoQ ($ In Millions, Except Where Noted) % % 2023 2022 Inc/(Dec) 2023 Inc/(Dec) DOE per Day is calculated as Direct Operating Expenses divided by the number of Transaction Days during the period. DOE per Day is
Slide 19: Net Corporate Leverage
N E T C O R P O R AT E L E V E R A G E Net Corporate Leverage As of September 30, 2023 Net Corporate Leverage is calculated as non-vehicle net debt divided by (In Millions) Vehicle Non-Vehicle Total Adjusted Corporate EBITDA for the last twelve months. Net Corporate Term Loans $- $1,516 $1,516 Lever
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