Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Investor Presentation (November 2019)
25 slides from Avis Budget's investor presentation, November 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019
Slide 2: Forward-Looking Statements
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 expectatio
Slide 3: Agenda
Agenda Our Business Strategic Initiatives Outlook 3
Slide 4: Global Leader in Vehicle Services…
Global Leader in Vehicle Services… We are committed to providing on- 30 COUNTRIES Plus 150 licensee operated demand mobility services for customers, 11,000 LOCATIONS businesses and Including 4,600 licensee operated cities alike. You will find us at the 648,000 VEHICLES intersection where technology
Slide 5: …With a Global Portfolio of Premium & Leisure Brands
…With a Global Portfolio of Premium & Leisure Brands We operate directly in approximately 30 countries… …and maintain a Global Brand Portfolio (1) Licensees operate our brands in more than 150 additional countries (1) U.S Virgin Islands flag represents St. Thomas and St. Croix 5
Slide 6: Diversified Revenue Stream
Diversified Revenue Stream 34% 35% Budget Off-Airport Brand 58% Airport Avis 65% 8% On-Airport Other 40% Commercial 30% International Customer Region 60% Leisure 70% Americas All numbers are approximate as of year ended December 31, 2018 Budget brand includes Budget Truck. Other brands include Zipca
Slide 7: Attractive Financial Model
Attractive Financial Model Five-Year Adjusted Free Cash Flow ($millions) 900 474 $2,457 $2,251 84 (1,007) (245) Powerful Adjusted Free Cash Flow Adjusted Pretax Adjusted Free Vehicle Non-vehicle Capital Cash Working Income programs depreciation and expenditures Taxes Capital Cash Flow amortization a
Slide 8: Key Component of Mobility Value Chain
Key Component of Mobility Value Chain Our Path to Success Own the Customer Be the Platform Leverage Our Assets • Customer Experience: • Apps: Mobile apps that • People: Global workforce Develop and extend unrivalled are the gateway to a tailored of talented people, who customer experience customer e
Slide 9: Overview of Business Model
Overview of Business Model Adjusted EBITDA Impact of a 1% Change in Driver ($ millions) Revenue per Day Rental Days Utilization Per-Unit Fleet Costs $48 $22 $17 $18 $16 $9 $7 $6 Americas International Calculations are based on the twelve month period ended December 31, 2018 9
Slide 10: Agenda
Agenda Our Business Strategic Initiatives Outlook 10
Slide 11: A Winning Mobility Strategy
A Winning Mobility Strategy Avis Budget Group Mobility Strategy Supported by Three Core Components Infrastructure Technology Partnerships • Service and maintain an • Major investments made to average fleet of approximately modernize all core systems 650k throughout the year • Largest global connecte
Slide 12: 1. Robust Infrastructure Network
1. Robust Infrastructure Network Diverse Fleet Our expansive vehicle base, highly trained technicians, and global footprint provide our customers with a multitude of use cases Dispositions Advanced remarketing strategy provides access to numerous vehicle disposition channels Logistics Distribution n
Slide 13: 2. Industry Leading Technology
2. Industry Leading Technology Best-of-breed cloud native core reservation platform Redefined User Experience… Next Generation Platform Enables… Global Telematics Hub Avis App Saves time Company-wide Interconnected Fleet Hub Customized rentals Switches seamlessly between business and personal travel
Slide 14: 2. Most Connected Cars in Industry
2. Most Connected Cars in Industry Global Fleet Expected to Be Fully Connected by Year-End 2020 Predictive Maintenance Fuel Level Odometer Tire Pressure Diagnostics Battery Level Alerts -+ Asset Control On-demand Roadside Assistance1 ! Real Time Vehicle Location Crash Detection1 Fleet Tracking and A
Slide 15: 3. Powerful Strategic Partnerships
3. Powerful Strategic Partnerships • Connected over 160,000 vehicles, and progressing toward a globally connected fleet • Strategic revenue partnerships unlocking top line growth opportunities • Expanding partnerships with alternate mobility offerings 15
Slide 16: Kansas City Mobility Lab
Kansas City Mobility Lab Our Kansas City Mobility Lab has been responsible for many innovations that have enhanced customer experiences and the way we do business Improved Roadside Fuel ABG Scanner Fasttrack-off- Vehicle Recovery Assistance Optimization App the-lot Average number Potential for a Net
Slide 17: Fleet Optimization Strategy
Fleet Optimization Strategy Dispositions Zipcar Commuter Increased direct-to- Monthly subscription customer sales of used based service providing Avis vehicles through access to weekday rentals, online purchases and increasing revenue and strategically positioned utilization from a Avis vehicle reta
Slide 18: 2019 Outlook
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Slide 19: Key Metrics
Key Metrics Revenue ($’s in millions) (Year-over-Year change) Americas International Rental Days 1.0% - 2.0% 2.0% - 3.0% $9,124 $9,000 - 9,200 Revenue per Day 0.0% - 1.0% (1.0%) - (2.0%) Per-Unit Fleet Costs per Month (6.0%) - (8.0%) 1.0% - 2.0% 2018 2019E Guidance as of October 31, 2019 Revenue per
Slide 20: Earnings
Earnings ($’s in millions, except EPS) Year-over-Year Full-Year Change Revenues $9,000 – 9,200 – Adjusted EBITDA 750 – 800 (1%) Non-vehicle D&A 200 – 215 6% Non-vehicle Interest expense 180 – 190 (2%) Adjusted pretax income 350 – 450 1% Adjusted diluted EPS $3.35 – 4.20 3% Currency impact on revenue
Slide 21: Adjusted Free Cash Flow
Adjusted Free Cash Flow ($’s in millions) Full-Year Adjusted pretax income $350 – 450 Plus: Non-vehicle D&A 200 – 215 Less: Capex (230 – 250) Less: Cash taxes, vehicle programs and other (70) – (120) Adjusted Free Cash Flow $250 – 300 Guidance as of October 31, 2019. All figures are approximate See
Slide 22: Corporate Debt Maturities
Corporate Debt Maturities • Adjusted Free Cash Flow for ($’s in millions) the year is estimated between $250 - $300 million • Net Corporate Leverage at 3.6x as of September 30, 2019, down 0.2x from prior $1,059 $1,800 quarter • $3.9 billion of liquidity as of September 30, 2019 $677 $647 • Redeemed
Slide 23: Capital Allocation
Capital Allocation $75 • Seek highest returns and balanced 2% approach for capital allocation • In August 2019, we increased share repurchase authorization by $100 $847 22% $1,185 32% million to a total of $250 million, or 9% of shares outstanding at the time. - We repurchased approximately 2.1 mill
Slide 24: Appendix
Appendix
Slide 25: 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 com
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