Dollar Thrifty Automotive Group Inc
Dollar Thrifty Automotive — Merger or Acquisition (August 2010)
13 slides from Dollar Thrifty Automotive's merger presentation, Aug 31, 2010
Slide 1: Dollar Thrifty Transaction Update
Dollar Thrifty Transaction Update August 31, 2010 Hertz Global Holdings, Inc. (NYSE: HTZ) and The Hertz Corporation
Slide 2: Executive Summary
Executive Summary A Hertz and Dollar Thrifty merger would better balance the industry with Avis / Budget and Enterprise / National / Alamo (slide 4) A Dollar Thrifty and Avis merger leaves only two companies controlling all U.S. value brands (slide 4, 5) Pricing data strongly suggests Avis will face
Slide 3: Transaction Update
Transaction Update Hertz continues to make progress Merger agreement signed on April 25th represented a premium of 19% and 38% over DTG respective 30 and 90 day trading averages. DTG’s Shareholder vote September 16th Antitrust Process Filed for HSR approval on May 14th; second request from FTC on Ju
Slide 4: Antitrust Risk Analysis: U.S. Car Rental Market
Antitrust Risk Analysis: U.S. Car Rental Market Three primary segments: Premium brands – highest level of convenience, service, vehicle condition and options at a premium price Mid-Tier Value brands – standard-level quality and service at a lower price Deep value brands – lowest price proposition wi
Slide 5: 2009 Average Weekend Prices – Midsize Rental
2009 Average Weekend Prices – Midsize Rental Source: 2009 Rubicon – survey of weekend midsize rental Budget and Dollar / Thrifty brands are positioned closely to one another
Slide 6: New FTC Merger Guidelines: GUPPI
New FTC Merger Guidelines: GUPPI Gross Upward Price Pressure Index (“GUPPI”): Economic formula used to evaluate the “upward pricing pressure” from a proposed merger on each of the merging brands (before netting out cost savings) GUPPI addresses anticompetitive pricing power of combined companies pos
Slide 7: GUPPI indicates higher antitrust risk for Avis Budget
GUPPI indicates higher antitrust risk for Avis Budget Estimated GUPPI Scores for Hertz and ABG Deals For Hertz - Dollar Thrifty: The combined entity generates GUPPI scores of under 5.0% except at Las Vegas (5.01%) Indicates low risk of unilateral price increases from Hertz-Dollar Thrifty transaction
Slide 8: Potential Brand Divestitures
Potential Brand Divestitures Source: Company filings. 2010 Run-rate revenues. Rental revenue from company owned stores only for both U.S. and Canada. 2009 Sales ($ in Millions) (1) (2) (2)
Slide 9: Illustrative Valuation Impact of Antitrust Carve Out
Illustrative Valuation Impact of Antitrust Carve Out Illustrative Carve Out Analysis Illustrative Valuation Impact 1. Based on 2009 DTG revenue of $1,546 mm and mid-point (1.5%) of company revenue growth target 1.0% to 2.0%. [Source July 2010 Investor Presentation]. 2. Based on mid-point ($210 mm) o
Slide 10: How do the Hertz versus Avis Anti-trust contract terms compare?
How do the Hertz versus Avis Anti-trust contract terms compare? Avis Terms Revenue Divestiture Thresholds International: $75 million of 2009 revenues U.S.: $250 million of 2009 revenues Brands: None International: $175 million of 2009 revenues1 U.S.: $335 million of 2009 revenues2 Brands: Advantage
Slide 11: Chancery Court on Deal Certainty
Chancery Court on Deal Certainty : “Getting the best price is not the psychic satisfaction of knowing your board negotiated for the nominally best price that never gets paid. Getting the best price means getting a price that will ultimately be paid.” Vice Chancellor Strine 1. In re Dollar Thrifty Sh
Slide 12: Forward-Looking Statements
Forward-Looking Statements This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations and beliefs of Hertz and are subject to a number of risks, u
Slide 13: Additional Information About the Merger and Where to Find It
Additional Information About the Merger and Where to Find It In connection with the proposed merger, Hertz filed with the SEC a registration statement on Form S-4 (SEC file number 333-167085) that includes a preliminary prospectus of Hertz and a preliminary proxy statement of Dollar Thrifty. The reg
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