Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Corporate Update (July 2015)
15 slides from Hertz Global's corporate update, Jul 17, 2015
Slide 1: Hertz Financial Restatement Conference Call
Hertz Financial Restatement Conference Call July 17th, 2015 8:00 am ET Dial in: (800) 230-1074 U.S. (612) 234-9960 International Passcode: 364881 Replay available until August 17, 2015: (800) 475-6701 U.S. (320) 365-3844 International Passcode: 364881
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made within this presentation contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance and by their nature are subject to inherent uncertaintie
Slide 3: Today's Agenda
Today’s Agenda John Tague President & Chief Executive Officer Tom Kennedy Sr. EVP & Chief Financial Officer Business Overview and Outlook John Tague Restatement Overview and Business Update Tom Kennedy Questions & Answers Session John Tague Tom Kennedy
Slide 4: Fixing the Foundation; Completing Work in Progress
Fixing the Foundation; Completing Work in Progress Restatement Complete; Remediation Underway Restatement Reaffirmed Commitment to $1B Share Buyback Program HERC Separation 2Q:16E; Leverage Targets Confirmed Shareholder Initiatives New HERC Leadership in Place to Enhance Performance Fleet Refresh Me
Slide 5: Fixing the Foundation; Delivering on Promises
Fixing the Foundation; Delivering on Promises Driving Best-in-Class Performance Pursuing Go-to-Market Improvements Complete financial restatement Refresh, resize U.S. RAC fleet Integrate DTG systems Add best-in-class talent Rationalize off airport Stabilize operating systems Lowest Cost – efficiency
Slide 6: Financial Restatement Complete
Financial Restatement Complete Impact of restatement on 2011-2013 GAAP earnings Hertz will continue to reinforce an environment of strong, disciplined financial controls and oversight Vehicle damage receivables and related allowances Capitalization and timing of depreciation for non-fleet assets Bra
Slide 7: New Accounting Team With Deep Functional Expertise
New Accounting Team With Deep Functional Expertise Robin Kramer New SVP & Chief Accounting Officer Allen Cooper New SVP & Chief Audit Executive Randy Walford New VP of SOX/ Compliance Vince Ciccolini New SVP & Corporate Controller Greg Jorgensen New VP of Reporting, Research & Policy Chris Brown New
Slide 8: Remain Committed to Share Buyback Plan
Remain Committed to Share Buyback Plan Share repurchase program reflects confidence in Hertz’s value proposition Pre-HERC Separation Post-HERC Separation Rental car expects to use free cash flow to purchase additional shares within targeted leverage range Cash received by RAC in connection with sepa
Slide 9: Re-focusing on HERC Spin Off Initiatives
Re-focusing on HERC Spin Off Initiatives HERC Overview Car Rental Overview Timing Unlocking shareholder value by creating two, strong standalone companies Post HERC separation, target year-end net corporate leverage ratio of 2.5x-3.5x Standalone business allows for increased reporting transparency,
Slide 10: Annualized Cost Savings Target Raised to $300M
Annualized Cost Savings Target Raised to $300M Expects to Realize ~$200 million in 2015 Potential for additional savings from technology-enabled efficiencies as well as other strategic opportunities Estimated one-time costs in 2015 associated with these actions is $30-$35M (includes ~$25M of restruc
Slide 11: U.S. RAC Fleet Capacity Growth Further Reduced
U.S. RAC Fleet Capacity Growth Further Reduced; Target for Average Mileage Per Unit Achieved Reduced 2015 U.S. fleet plan by 100 bps since May’s reduction Achieved U.S. fleet refresh target for 2015 FY:15E fleet to grow 0.5%-1.5% Down from earlier plan of +1.5%-2.5% Reflects disciplined growth and u
Slide 12: New Leaders With Proven Expertise
New Leaders With Proven Expertise New appointments in areas critical to Hertz’s success: Revenue Management Information Technology Fleet and Procurement Sales Customer Experience Human Resources Dave Myrick SVP, Americas Sales Eliana Zem EVP and Chief Human Resource Officer Jeff Foland Sr EVP and Ch
Slide 13: 2015 – A Transition Year
2015 – A Transition Year Full Year 2015 Forecast Consolidated Corporate EBITDA $1,450M - $1,550M HERC Corporate EBITDA $575M - $625M U.S. RAC Monthly Depreciation per unit $295 - $305 U.S. RAC fleet capacity growth1 0.5% - 1.5% Net non-fleet capex $275M - $295M 1Excludes Advantage sublease and Hertz
Slide 14: Key Takeaways
Key Takeaways 1 2 3 4 5 6 Financial filings up to date and sustainable Business portfolio under review; HERC separation expected Q2:16 New leadership in place Significant value creation within our control Annualized cost savings target raised to $300M; upside opportunity Reinvesting in our brands Co
Slide 15: Committed to an Ongoing Dialogue with Investors
Committed to an Ongoing Dialogue with Investors August 2015 – Q2:15 Earnings Results November 2015 – Investor Day Update on pace of progress Assessment of Company’s full potential