Slide 1: First Quarter 2010 Earnings Conference Call
First Quarter 2010 Earnings Conference Call April 21, 2010
Slide 2: Safe Harbor
4/20/2010 Proprietary and Confidential 2 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 considerat
Slide 3: Contents
4/20/2010 Proprietary and Confidential 3 Contents First Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 1st Quarter Results Overview
4/20/2010 Proprietary and Confidential 4 1st Quarter Results Overview Earnings per diluted share from continuing operations were $0.24 in 1Q10 vs. $0.20 in 1Q09 1Q09 included a $0.10 charge related to restructuring and other items Comparable earnings per share from continuing operations were $0.24 i
Slide 5: 1st Quarter Results Overview: Fleet Management Solutions
4/20/2010 Proprietary and Confidential 5 1st Quarter Results Overview Fleet Management Solutions (FMS) total revenue up 2% (but operating revenue down 2%) vs. prior year Contractual revenue down 3%; down 4% excluding foreign exchange Full service lease revenue down 2%, down 4% excluding foreign exch
Slide 6: 1st Quarter Results Overview: SCS and DCC
4/20/2010 Proprietary and Confidential 6 1st Quarter Results Overview Supply Chain Solutions (SCS) total revenue up 10% vs. prior year due to higher automotive volumes and favorable foreign exchange rate movements SCS operating revenue up 4% reflecting favorable foreign exchange rate movements and h
Slide 7: Key Financial Statistics
4/20/2010 Proprietary and Confidential 7 Key Financial Statistics First Quarter ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding. Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Includes discontinued operati
Slide 8: Business Segments
4/20/2010 Proprietary and Confidential 8 Business Segments First Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items, The applicable portion of the rest
Slide 9: Capital Expenditures from Continuing Operations
4/20/2010 Proprietary and Confidential 9 Capital Expenditures from Continuing Operations First Quarter ($ Millions)
Slide 10: Cash Flow from Continuing Operations
4/20/2010 Proprietary and Confidential 10 Cash Flow from Continuing Operations First Quarter ($ Millions) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.
Slide 11: Debt to Equity Ratio
4/20/2010 Proprietary and Confidential 11 Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $409 million as of 3/31/10, $412 million as of 12/31/09 and $477 million as of 3/31/09. The Company uses total obligations and total obligations to equity, non-GAA
Slide 12: Contents
4/20/2010 Proprietary and Confidential 12 Contents First Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 13: Global Asset Management Update
4/20/2010 Proprietary and Confidential 13 Units held for sale were 6,800 at quarter end; down 28% from 9,500 units held for sale in the prior year Units held for sale were down 1% from 6,900 at the end of the prior quarter The number of used vehicles sold in the first quarter was 4,700, up 4% compar
Slide 14: Contents
4/20/2010 Proprietary and Confidential 14 Contents First Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 15: EPS Forecast - Continuing Operations
4/20/2010 Proprietary and Confidential 15 EPS Forecast - Continuing Operations ($ Earnings Per Share) Non-GAAP financial measure. (Comparable EPS in FY09 excludes an International impairment charge of $0.12, tax benefits of $0.11 and restructuring charges of $0.07). Revising full year 2010 forecast
Slide 16: Q&A
4/20/2010 Proprietary and Confidential 16 Q&A
Slide 17: Appendix
4/20/2010 Proprietary and Confidential 17 Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non GAAP Financial Measures & Reconciliations
Slide 18: Fleet Management Solutions (FMS)
4/20/2010 Proprietary and Confidential 18 Fleet Management Solutions (FMS) First Quarter ($ Millions)
Slide 19: Supply Chain Solutions (SCS)
4/20/2010 Proprietary and Confidential 19 Supply Chain Solutions (SCS) First Quarter ($ Millions)
Slide 20: Dedicated Contract Carriage (DCC)
4/20/2010 Proprietary and Confidential 20 Dedicated Contract Carriage (DCC) First Quarter ($ Millions)
Slide 21: Central Support Services (CSS)
4/20/2010 Proprietary and Confidential 21 Central Support Services (CSS) First Quarter ($ Millions)
Slide 22: Balance Sheet
4/20/2010 Proprietary and Confidential 22 Balance Sheet ($ Millions)
Slide 23: U.S. Asset Management Update
4/20/2010 Proprietary and Confidential 23 U.S. Asset Management Update (a) U.S. only Excludes early terminations where customer purchases vehicle Current year statistics may exclude some units due to a lag in reporting (b) Number of Units Redeployments Extensions Early Terminations Early Replacement
Slide 24: Financial Indicators
4/20/2010 Proprietary and Confidential 24 Free Cash Flow 1054 835 949 1091 1381 1179 1252 1685 1571 1282 1305 2000 2001 2002 2003 2004 2005 2006 2007 2008 Financial Indicators Forecast (1) (1) Obligations to Equity include acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisiti
Slide 25: Non-GAAP Financial Measures
4/20/2010 Proprietary and Confidential 25 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
Slide 26: EPS, Earnings and Tax Rate from Continuing Operations Reconciliation
4/20/2010 Proprietary and Confidential 26 EPS, Earnings and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share)
Slide 27: Adjusted Return on Capital Reconciliation
4/20/2010 Proprietary and Confidential 27 Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to comp
Slide 28: Debt to Equity Reconciliation
4/20/2010 Proprietary and Confidential 28 Debt to Equity Reconciliation Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as off-balance sheet debt. ($ Millions)
Slide 29: Debt to Equity Reconciliation
4/20/2010 Proprietary and Confidential 29 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 30: Cash Flow Reconciliation
4/20/2010 Proprietary and Confidential 30 ($ Millions) Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides
Slide 31: Cash Flow Reconciliation
4/20/2010 Proprietary and Confidential 31 ($ Millions) Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides
Slide 32: 4/20/2010 Proprietary and Confidential 32
4/20/2010 Proprietary and Confidential 32