Slide 1: Third Quarter 2010 Earnings Conference Call
Third Quarter 2010 Earnings Conference Call October 21, 2010
Slide 2: Safe Harbor
10/21/10 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 considerati
Slide 3: Contents
10/21/10 Proprietary and Confidential 3 Contents Third Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 3rd Quarter Results Overview
10/21/10 Proprietary and Confidential 4 3rd Quarter Results Overview Earnings per diluted share from continuing operations were $0.76 in 3Q10 vs. $0.51 in 3Q09 Total revenue increased 5% vs. prior year reflecting higher operating revenue Operating revenue increased 4% vs. prior year due to higher co
Slide 5: 3rd Quarter Results Overview - FMS
10/21/10 Proprietary and Confidential 5 3rd Quarter Results Overview - FMS Fleet Management Solutions (FMS) total revenue up 4% (and operating revenue up 3%) vs. prior year Contractual revenue down 3% Full service lease revenue down 2% Contract maintenance revenue decreased 5% Commercial rental reve
Slide 6: 3rd Quarter Results Overview - SCS / DCC
10/21/10 Proprietary and Confidential 6 3rd Quarter Results Overview - SCS / DCC Supply Chain Solutions (SCS) total revenue up 10% (and operating revenue up 5%) vs. prior year due to higher subcontracted transportation, higher automotive and high-tech volumes, and favorable foreign exchange rate mov
Slide 7: Key Financial Statistics Third Quarter
10/21/10 Proprietary and Confidential 7 Key Financial Statistics Third Quarter ($ 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 operatio
Slide 8: Key Financial Statistics Year-to-Date
10/21/10 Proprietary and Confidential 8 Key Financial Statistics Year-to-Date ($ 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 operation
Slide 9: Business Segments Third Quarter
10/21/10 Proprietary and Confidential 9 Business Segments Third 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 restr
Slide 10: Business Segments Year-to-Date
10/21/10 Proprietary and Confidential 10 Business Segments Year-to-Date 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 restr
Slide 11: Capital Expenditures from Continuing Operations Year-to-Date
10/21/10 Proprietary and Confidential 11 Capital Expenditures from Continuing Operations Year-to-Date ($ Millions)
Slide 12: Cash Flow from Continuing Operations Year-to-Date
10/21/10 Proprietary and Confidential 12 Cash Flow from Continuing Operations Year-to-Date ($ 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. Fr
Slide 13: Debt to Equity Ratio
10/21/10 Proprietary and Confidential 13 Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $405 million as of 9/30/10, $412 million as of 12/31/09 and $478 million as of 9/30/09. The Company uses total obligations and total obligations to equity, non-GAAP
Slide 14: Contents
10/21/10 Proprietary and Confidential 14 Contents Third Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 15: Global Asset Management Update
10/21/10 Proprietary and Confidential 15 Units held for sale were 4,700 at quarter end; down 40% from 7,800 units held for sale in the prior year Units held for sale were down 20% from 5,900 at the end of the prior quarter The number of used vehicles sold in the third quarter were 4,400, down 15% co
Slide 16: Contents
10/21/10 Proprietary and Confidential 16 Contents Third Quarter 2010 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 17: EPS Forecast - Continuing Operations
10/21/10 Proprietary and Confidential 17 EPS Forecast - Continuing Operations ($ Earnings Per Share) Non-GAAP financial measure. (Comparable EPS in 4Q09 excludes income tax benefits of $0.07 and international asset impairment of $0.05. Comparable EPS in FY09 excludes an international impairment char
Slide 18: Q&A
10/21/10 Proprietary and Confidential 18 Q&A
Slide 19: Appendix
10/21/10 Proprietary and Confidential 19 Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) Third Quarter
10/21/10 Proprietary and Confidential 20 Fleet Management Solutions (FMS) Third Quarter ($ Millions)
Slide 21: Fleet Management Solutions (FMS) Year-to-Date
10/21/10 Proprietary and Confidential 21 Fleet Management Solutions (FMS) Year-to-Date ($ Millions) 21 Proprietary and Confidential
Slide 22: Supply Chain Solutions (SCS) Third Quarter
10/21/10 Proprietary and Confidential 22 Supply Chain Solutions (SCS) Third Quarter ($ Millions)
Slide 23: Supply Chain Solutions (SCS) Year-to-Date
10/21/10 Proprietary and Confidential 23 Supply Chain Solutions (SCS) Year-to-Date ($ Millions) 23 Proprietary and Confidential
Slide 24: Dedicated Contract Carriage (DCC) Third Quarter
10/21/10 Proprietary and Confidential 24 Dedicated Contract Carriage (DCC) Third Quarter ($ Millions)
Slide 25: Dedicated Contract Carriage (DCC) Year-to-Date
10/21/10 Proprietary and Confidential 25 Dedicated Contract Carriage (DCC) Year-to-Date ($ Millions) 25 Proprietary and Confidential
Slide 26: Central Support Services (CSS) Third Quarter
10/21/10 Proprietary and Confidential 26 Central Support Services (CSS) Third Quarter ($ Millions)
Slide 27: Central Support Services (CSS) Year-to-Date
10/21/10 Proprietary and Confidential 27 Central Support Services (CSS) Year-to-Date ($ Millions) 27 Proprietary and Confidential
Slide 28: Balance Sheet
10/21/10 Proprietary and Confidential 28 Balance Sheet ($ Millions)
Slide 29: U.S. Asset Management Update
Proprietary and Confidential 29 10/21/10 Proprietary and Confidential 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) (c) Number of Units (c)
Slide 30: Free Cash Flow
10/21/10 Proprietary and Confidential 30 Free Cash Flow 1054 835 949 1091 1381 1179 1252 1684 1571 1266 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 acquisitio
Slide 31: Non-GAAP Financial Measures
10/21/10 Proprietary and Confidential 31 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 m
Slide 32: Earnings and EPS from Continuing Operations Reconciliation
10/21/10 Proprietary and Confidential 32 Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 32 Proprietary and Confidential
Slide 33: NBT and Tax Rate from Continuing Operations Reconciliation
10/21/10 Proprietary and Confidential 33 NBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 33 Proprietary and Confidential
Slide 34: Adjusted Return on Capital Reconciliation
10/21/10 Proprietary and Confidential 34 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 compa
Slide 35: Debt to Equity Reconciliation
10/21/10 Proprietary and Confidential 35 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 36: Debt to Equity Reconciliation
10/21/10 Proprietary and Confidential 36 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 37: Cash Flow Reconciliation
10/21/10 Proprietary and Confidential 37 ($ 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 i
Slide 38: Cash Flow Reconciliation
10/21/10 Proprietary and Confidential 38 ($ 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 i
Slide 39: 10/21/10 Proprietary and Confidential 39
10/21/10 Proprietary and Confidential 39