Slide 1: Second Quarter 2015 Earnings Conference Call
Second Quarter 2015 Earnings Conference Call July 23, 2015 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Safe Harbor and Non-GAAP Financial Measures 2 Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding earn
Slide 3: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 3 ►Second Quarter 2015 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A
Slide 4: 2nd Quarter Results Overview
© 2015 Ryder System, Inc. All Rights Reserved. 2nd Quarter Results Overview 4 ► Comparable earnings per share from continuing operations were $1.65 vs. $1.44 in 2Q14 ► Earnings per diluted share from continuing operations were $1.61 in 2Q15 vs. $1.42 in 2Q14 – 2Q15 included non-operating pension cos
Slide 5: Key Financial Statistics Second Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 5 Second Quarter ($ Millions, Except Per Share Amounts) 2015 2014 % B/(W) Operating Revenue 1,392.6$ 1,315.6$ 6% Fuel and Subcontracted Transportation 270.3 368.9 (27)% Total Revenue 1,662.9$ 1,684.6$ (1)% Comparable Earnings Pe
Slide 6: Key Financial Statistics Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 6 Year-To-Date ($ Millions, Except Per Share Amounts) 2015 2014 % B/(W) Operating Revenue 2,692.9$ 2,558.4$ 5% Fuel and Subcontracted Transportation 537.2 736.9 (27)% Total Revenue 3,230.1$ 3,295.3$ (2)% Comparable Earnings Per
Slide 7: 2nd Quarter Results Overview – FMS
© 2015 Ryder System, Inc. All Rights Reserved. 2nd Quarter Results Overview – FMS 7 ► Fleet Management Solutions (FMS) operating revenue up 6% (up 8% excluding foreign exchange) and total revenue down 3% vs. prior year – Full service lease revenue up 5% (up 7% excluding foreign exchange) – Contract
Slide 8: 2nd Quarter Results Overview – DTS
© 2015 Ryder System, Inc. All Rights Reserved. 2nd Quarter Results Overview – DTS 8 ► Dedicated Transportation Solutions (DTS) operating revenue up 6% and total revenue down 4% vs. prior year – Operating revenue increased due to new business as well as higher volumes and pricing – Total revenue down
Slide 9: 2nd Quarter Results Overview – SCS
© 2015 Ryder System, Inc. All Rights Reserved. 2nd Quarter Results Overview – SCS 9 ► Supply Chain Solutions (SCS) operating revenue up 6% (up 9% excluding foreign exchange) and total revenue up 1% vs. prior year – Operating revenue increased due to higher volumes and new business, primarily in the
Slide 10: Business Segments (Second Quarter)
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 10 2015 2014 % B/(W) 2015 2014 % B/(W) Operating Revenue: Fleet Management Solutions 959.1$ 907.9$ 6% 1,149.3$ 1,181.2$ (3)% Dedicated Transportation Solutions 176.8 166.9 6% 223.5 234.0 (4)% Supply Chain Solutions 320.1 301.1 6% 396.9
Slide 11: Business Segments (Year-To-Date)
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 11 2015 2014 % B/(W) 2015 2014 % B/(W) Operating Revenue: Fleet Management Solutions 1,858.2$ 1,767.8$ 5% 2,236.5$ 2,316.3$ (3)% Dedicated Transportation Solutions 342.6 323.2 6% 436.2 450.0 (3)% Supply Chain Solutions 615.5 585.6 5% 7
Slide 12: Capital Expenditures
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures 12 2015 $ 2015 2014 O/(U) 2014 Full Service Lease 947$ 818$ 129$ Commercial Rental 453 344 109 Operating Property and Equipment 54 95 (41) Gross Capital Expenditures 1,454 1,257 197 Less: Proceeds from Sales (Primarily Revenue Earni
Slide 13: Cash Flow from Continuing Operations Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Cash Flow from Continuing Operations 13 Year-To-Date ($ Millions) (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) Free Cash Flow excludes acquisitions and changes in restricted
Slide 14: Debt to Equity Ratio
© 2015 Ryder System, Inc. All Rights Reserved. 261% 270% 226% 259% 270% 250% 0% 50% 100% 150% 200% 250% 300% 12/31/11 12/31/12 12/31/13 12/31/14 6/30/15 Long Term Target Midpoint Pension Impact Total Obligations to Equity Debt to Equity Ratio 14 6/30/2015 12/31/2014 6/30/2014 Balance Sheet Debt 4,85
Slide 15: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 15 ►Second Quarter 2015 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A
Slide 16: Global Asset Management Update
© 2015 Ryder System, Inc. All Rights Reserved. ► Units held for sale were 5,900 at quarter end, down from 6,300 units held for sale in the prior year ─ Sequentially from the first quarter, units held for sale increased by 100 units ► The number of used vehicles sold in the second quarter was 4,700,
Slide 17: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 17 ►Second Quarter 2015 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A
Slide 18: EPS Forecast – Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. EPS Forecast – Continuing Operations 18 2015 Comparable EPS Forecast(1) $ 1.82 - 1.87 $ 6.45 - 6.55 2014 Comparable EPS(2) $ 1.63 $ 5.58 Third Quarter Full Year ($ Earnings Per Share) (1) 3Q15 Comparable EPS Forecast, a non-GAAP financial measure, exclu
Slide 19: Q&A
© 2015 Ryder System, Inc. All Rights Reserved. Q&A 19
Slide 20: Appendix
© 2015 Ryder System, Inc. All Rights Reserved. Appendix 20 Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Adjusted Return on Capital History Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 21: Full Service Lease (FSL) Fleet Count
© 2015 Ryder System, Inc. All Rights Reserved. End of Period 2Q14 3Q14 4Q14 1Q15 2Q15 FSL Fleet (as reported) 123,000 123,200 125,500 127,500 128,700 5,700 UK FSL Trailers 4,600 4,300 4,400 4,400 4,300 (300) FSL Fleet - excluding UK 118,400 118,900 121,100 123,100 124,400 6,000 Sequential Change 3Q1
Slide 22: Fleet Management Solutions (FMS) – Second Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 22 Revenue 2015 2014 % B/(W) Full Service Lease 595.7$ 566.1$ 5% Contract Maintenance 49.0 46.3 6% Contractual Revenue 644.7 612.4 5% Commercial Rental 239.1 221.7 8% Contract-related Maintenance 56.5 56.5 - Other 18.8 1
Slide 23: Fleet Management Solutions (FMS) – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 23 Revenue 2015 2014 % B/(W) Full Service Lease 1,172.8$ 1,118.3$ 5% Contract Maintenance 94.9 89.9 6% Contractual Revenue 1,267.7 1,208.3 5% Commercial Rental 444.1 411.9 8% Contract-related Maintenance 109.7 112.6 (3)%
Slide 24: Dedicated Transportation Solutions (DTS) – Second Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Dedicated Transportation Solutions (DTS) 24 ($ Millions) Revenue 2015 2014 % B/(W) Operating Revenue 176.8$ 166.9$ 6% Subcontracted Transportation 14.5 23.2 (37)% Fuel Costs 32.2 43.9 (27)% Total Revenue 223.5$ 234.0$ (4)% Earnings Before Tax Segment Ea
Slide 25: Dedicated Transportation Solutions (DTS) – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Dedicated Transportation Solutions (DTS) 25 ($ Millions) Revenue 2015 2014 % B/(W) Operating Revenue 342.6$ 323.2$ 6% Subcontracted Transportation 29.2 39.4 (26)% Fuel Costs 64.4 87.4 (26)% Total Revenue 436.2$ 450.0$ (3)% Earnings Before Tax Segment Ea
Slide 26: Supply Chain Solutions (SCS) – Second Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 26 ($ Millions) Revenue 2015 2014 % B/(W) Automotive 119.3$ 117.8$ 1% Technology & Healthcare 64.0 56.4 13% CPG & Retail 110.7 99.9 11% Industrial & Other 26.0 27.0 (4)% Operating Revenue 320.1 301.1 6% Subcontracted Transpo
Slide 27: Supply Chain Solutions (SCS) – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 27 ($ Millions) Revenue 2015 2014 % B/(W) Automotive 228.5$ 232.1$ (2)% Technology & Healthcare 123.3 107.4 15% CPG & Retail 213.4 193.5 10% Industrial & Other 50.3 52.6 (4)% Operating Revenue 615.5 585.6 5% Subcontracted Tr
Slide 28: Central Support Services (CSS) – Second Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 28 2015 2014 % B/(W) Allocated CSS Costs 51.7$ 46.3$ (12)% Unallocated CSS Costs 10.9 12.1 10% Total CSS Costs 62.6$ 58.4$ (7)% Second Quarter ($ Millions)
Slide 29: Central Support Services (CSS) – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 29 2015 2014 % B/(W) Allocated CSS Costs 100.5$ 94.5$ (6)% Unallocated CSS Costs 22.9 23.0 0% Total CSS Costs 123.3$ 117.5$ (5)% Year-To-Date ($ Millions)
Slide 30: Balance Sheet
© 2015 Ryder System, Inc. All Rights Reserved. Balance Sheet 30 June 30, December 31, 2015 2014 Current Assets 1,136$ 1,076$ Revenue Earning Equipment, Net 7,508 6,994 Operating Property and Equipment, Net 708 700 Other Assets 940 906 Total Assets 10,292$ 9,676$ Current Liabilities 1,181 1,081 Total
Slide 31: Adjusted Return on Capital History
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital History Adjusted Return on Capital (ROC) 6.8% 6.7% 6.6% 6.5% 6.3% 6.1% 5.5% 4.8% 4.7% 4.7% 4.6% 7.8% 7.9% 7.4% 7.3% 4.1% 4.8% 5.7% 5.6% 5.7% 5.8% 6.1% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Cost of Cap
Slide 32: Asset Management Update (US Only)
© 2015 Ryder System, Inc. All Rights Reserved. 32 (a) Current year statistics may exclude some units due to a lag in reporting (b) Excludes early terminations where customer purchases vehicle 2,022 3,319 3,494 2,948 4,381 2,291 2,317 3,689 1,687 2,242 3,880 1,219 2,098 3,096 1,584 1,869 3,295 1,411
Slide 33: Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Non-GAAP Financial Measures 33 ► 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. Non-GAAP fin
Slide 34: Foreign Exchange Impact on Operating Revenue Growth
© 2015 Ryder System, Inc. All Rights Reserved. 34 Foreign Exchange Impact on Operating Revenue Growth Second Quarter Year-To-Date YOY Growth Fx Impact (1) YOY Growth excl Fx YOY Growth Fx Impact (1) YOY Growth excl Fx Operating Revenue 6% (2)% 8% 5% (2)% 7% FMS Operating Revenue 6% (2)% 8% 5% (2)% 7
Slide 35: Earnings and EPS from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Earnings and EPS from Continuing Operations Reconciliation 35 2Q15 2Q15 2Q14 2Q14 Earnings EPS Earnings EPS Reported 86.2$ 1.61$ 75.7$ 1.42$ Non-operating pension costs 2.7 0.05 0.8 0.02 Professional fees 1.2 0.02 - - Tax law change (1.9) (0.03) - - Com
Slide 36: EBT and Tax Rate from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 2Q15 2Q15 2Q15 YTD15 YTD15 YTD15 EBT Tax Tax Rate EBT Tax Tax Rate Reported 133.8$ 47.7$ 35.6% 218.2$ 78.6$ 36.0% Non-operating pension costs 4.7 2.0 9.6 4.1 Professional fees 1.9 0.7 3.8 1.4 Tax law change - 1.9 - 1.9 Comparable (1) 140.4$ 52.3$ 37.2%
Slide 37: Adjusted Return on Capital Reconciliation 2004-2009
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital Reconciliation 37 2004 2005 2006 2007 2008 2009 Net earnings (1) 216$ 227$ 249$ 254$ 200$ 62$ Cumulative effect of change in accounting principle - 2 - - - - Restructuring and other charges, net and other items (24) (2) - 1 70
Slide 38: Adjusted Return on Capital Reconciliation 2010-2015
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital Reconciliation 38 2010 2011 2012 2013 2014 2Q14 2Q15 Net Earnings (1) 118$ 170$ 210$ 238$ 219$ 259$ 233$ Restructuring and Other Charges, Net and Other Items 6 6 17 - 115 2 119 Income Taxes 61 108 91 126 118 139 127 Adjusted E
Slide 39: Debt to Equity Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Reconciliation 39 ($ Millions) Note: Amounts may not recalculate due to rounding. % to % to % to % to % to % to 12/31/2011 Equity 12/31/2012 Equity 12/31/2013 Equity 12/31/2014 Equity 6/30/2015 Equity 6/30/2014 Equity Balance Sheet Debt $
Slide 40: © 2015 Ryder System, Inc. All Rights Reserved.
© 2015 Ryder System, Inc. All Rights Reserved.