Slide 1: Fourth Quarter 2011 & 2012 Forecast Earnings Conference Call
Exhibit 99.2 Fourth Quarter 2011 & 2012 Forecast Earnings Conference Call February 2, 2012
Slide 2: Safe Harbor
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 consideration given to the many risks and uncertain
Slide 3: Contents
Contents Fourth Quarter 2011 Results Overview Asset Management Update 2012 Forecast Q&A 02/02/12 Proprietary and Confidential 3
Slide 4: 4th Quarter Results Overview
4th Quarter Results Overview Earnings per diluted share from continuing operations were $0.92 in 4Q11 vs. $0.80 in 4Q10 – 4Q11 included a $0.05 charge for acquisition-related restructuring costs – 4Q10 included a $0.15 net benefit related to income taxes, partially offset by restructuring and other
Slide 5: Key Financial Statistics
Key Financial Statistics ($ Millions, Except Per Share Amounts) Fourth Quarter 2011 2010 % B/(W) (1) Operating Revenue $ 1,237.0 $ 1,061.9 16% Fuel Services and Subcontracted Transportation Revenue 304.0 251.5 21% Total Revenue $ 1,541.1 $ 1,313.4 17% Earnings Per Share From Continuing Operations $
Slide 6: Key Financial Statistics
Key Financial Statistics ($ Millions, Except Per Share Amounts) Full Year 2011 2010 % B/(W) (1) Operating Revenue $ 4,814.6 $ 4,158.2 16% Fuel Services and Subcontracted Transportation Revenue 1,236.0 978.1 26% Total Revenue $ 6,050.5 $ 5,136.4 18% Earnings Per Share From Continuing Operations $ 3.3
Slide 7: 4th Quarter Results Overview - FMS
4th Quarter Results Overview - FMS Fleet Management Solutions (FMS) total revenue up 13% (and operating revenue up 12%) vs. prior year – Contractual revenue up 4% – Full service lease revenue up 5% – Contract maintenance revenue decreased 1% – Commercial rental revenue up 38% – Fuel revenue up 18% d
Slide 8: 4th Quarter Results Overview – SCS / DCC
4th Quarter Results Overview – SCS / DCC Supply Chain Solutions (SCS) total revenue up 26% (and operating revenue up 26%) vs. prior year due to the TLC acquisition and new business SCS earnings before tax (EBT) up 44% – SCS EBT percent of operating revenue up 70 basis points to 5.5% SCS earnings inc
Slide 9: Business Segments
Business Segments ($ Millions) Fourth Quarter Memo: Total Revenue 2011 2010 % B/(W) 2011 2010 % B/(W) (1) Operating Revenue: Fleet Management Solutions $ 813.3 $ 726.3 12% $ 1,074.7 $ 948.1 13% Supply Chain Solutions 324.7 258.3 26% 408.7 325.1 26% Dedicated Contract Carriage 147.1 119.3 23% 156.6 1
Slide 10: Business Segments
Business Segments ($ Millions) Full Year Memo: Total Revenue 2011 2010 % B/(W) 2011 2010 % B/(W) (1) Operating Revenue: Fleet Management Solutions $ 3,135.9 $ 2,846.5 10% $ 4,218.3 $ 3,712.2 14% Supply Chain Solutions 1,290.9 1,005.0 28% 1,605.4 1,252.3 28% Dedicated Contract Carriage 566.6 468.5 21
Slide 11: Capital Expenditures
Capital Expenditures ($ Millions) Full Year 2011 $ 2011 2010 O/(U) 2010 Full Service Lease $ 1,067 $ 647 $ 420 Commercial Rental 622 379 244 Operating Property and Equipment 71 62 8 Gross Capital Expenditures 1,760 1,088 672 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 300 235 66
Slide 12: Cash Flow from Continuing Operations
Cash Flow from Continuing Operations ($ Millions) Full Year 2011 2010 Earnings from Continuing Operations $ 171 $ 125 Depreciation 872 834 Gains on Vehicle Sales, Net (63) (29) Amortization and Other Non-Cash Charges, Net 57 57 Pension Contributions (65) (64) Changes in Working Capital and Deferred
Slide 13: Debt to Equity Ratio
Debt to Equity Ratio ($ Millions) 300% 275% 261% 275% 250% 234% 225% Total Obligations to 201% 183% 203% Equity (1) 200% 168% 157% 146% 151% Balance Sheet Debt 150% 129% to Equity 100% 50% 0% 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11
Slide 14: Contents
Contents Fourth Quarter 2011 Results Overview Asset Management Update 2012 Forecast Q&A 02/02/12 Proprietary and Confidential 14
Slide 15: Global Asset Management Update
(1) Global Asset Management Update Units held for sale were 6,300 at quarter end, up 21% from 5,200 units held for sale in the prior year – Used vehicle inventory is at the low end of our target range The number of used vehicles sold in the fourth quarter were 4,200, up 5% from the prior year Procee
Slide 16: Contents
Contents Fourth Quarter 2011 Results Overview Asset Management Update 2012 Forecast Q&A 02/02/12 Proprietary and Confidential 16
Slide 17: 2012 Forecast Assumptions: General and FMS
2012 Forecast Assumptions General Moderate economic growth Improved new sales in all segments Higher pension costs Foreign exchange rates assume continued strengthening of the dollar FMS Higher contractual sales and better renewal rates resulting in continued organic fleet growth throughout the year
Slide 18: 2012 Forecast Assumptions: SCS
2012 Forecast Assumptions SCS Revenue growth due to new business and higher volumes Margin improvement driven by revenue growth Operational initiatives in the dedicated service offering contribute to improved margin 02/02/12 Proprietary and Confidential 18
Slide 19: Key Financial Statistics
Key Financial Statistics ($ Millions, Except Per Share Amounts) 2012 Forecast 2011 % B / (W) Revenue: (1) Operating $ 5,100 $ 4,815 6% Fuel Services and Subcontracted Transportation 1,200 1,236 (3)% Total Revenue $ 6,300 $ 6,051 4% Earnings From Continuing Operations: Earnings Before Income Taxes $
Slide 20: Business Segment Revenue
Business Segment Revenue 2012 Forecast Midpoint Change % vs. 2011 Fleet Management Solutions: Total Revenue (1) 6% (2) Contractual Revenue 5% Commercial Rental Revenue 17% Operating Revenue 8% (3) Supply Chain Solutions: (4) Total Revenue 1% Operating Revenue 2% (1) Includes fuel revenue. (2) Includ
Slide 21: 2012 Causes of EPS Change
2012 Causes of EPS Change ($ Earnings Per Share) $0.25 - 0.29 $4.00 - 4.10 $0.13 - 0.17 $0.22 $3.49 $0.14 ($0.18) $0.09 $0.05 ($0.11 - 0.13) ($0.06) 2011 EPS (1) Pension Strategic Foreign Tax SCS Acquisitions Depreciation / FMS Commercial 2012 Forecast Plans Investments & Exchange Rate (Completed in
Slide 22: Capital Expenditures, Cash Flow & Leverage
Capital Expenditures, Cash Flow & Leverage ($ Millions) Full Year 2012 Forecast 2011 Full Service Lease - Replacement $ 1,120 - 1,200 Full Service Lease - Growth 290 - 310 Full Service Lease 1,410 - 1,510 $ 1,067 Commercial Rental - Replacement 450 Commercial Rental - Growth 140 Commercial Rental 59
Slide 23: Adjusted Return on Capital History
(1) Adjusted Return on Capital History Adjusted Return on Capital (ROC)(1) Cost of Capital (COC) 2012 Forecast ROC O/(U) COC 0.8% 1.0% 1.2% 0.8% 0.8% (2.2)% (1.3)% 0.2% 0.9% Return on Equity 15.3% 14.6% 15.5% 14.2% 11.2% 4.4% 8.4% 11.9% 15.1% Adjusted Total $3,359 $3,846 $4,184 $4,789 $4,841 $4,244
Slide 24: EPS Forecast – Continuing Operations
EPS Forecast – Continuing Operations ($ Earnings Per Share) First Quarter Full Year 2012 Comparable EPS Forecast (1) $ 0.55 - 0.58 $ 4.00 - 4.10 2011 Comparable EPS (1) $0.51 $3.49 (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. 2012 Comparable EPS Forecast excludes
Slide 25: Comparable EPS – Excluding Non-Service Pension Costs
Comparable EPS – Excluding Non-Service Pension Costs ($ Earnings Per Share) $4.43 $4.44 Comparable $4.16 $4.04 Earnings Per Share $3.59 $3.71 Excluding Pension (1) (3) $3.31 $2.53 $2.53 $2.20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Forecast Midpoint GAAP EPS $ 2.09 3.27 3.53 3.99 4.19 4.51
Slide 26: Q&A
Q&A 02/02/12 Proprietary and Confidential 26
Slide 27: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Return on Capital History Financial Indicators Forecast Pension Expense New Income Statement Format Non-GAAP Financial Measures & Reconciliations 02/02/12 Proprietary and Confidential 27
Slide 28: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Fourth Quarter 2011 2010 % B/(W) Full Service Lease $ 508.4 $ 485.0 5% Contract Maintenance 38.8 39.0 (1)% Contractual Revenue 547.2 524.0 4% Contract-related Maintenance 49.1 39.6 24% Commercial Rental 200.3 145.5 38% Other 16.7 17.1 (2)% Operating Reve
Slide 29: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Full Year 2011 2010 % B/(W) Full Service Lease $ 1,996.3 $ 1,934.3 3% Contract Maintenance 155.2 158.8 (2)% Contractual Revenue 2,151.5 2,093.1 3% Contract-related Maintenance 192.7 160.9 20% Commercial Rental 722.6 525.1 38% Other 69.1 67.4 2% Operating
Slide 30: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) Fourth Quarter 2011 2010 % B/(W) Automotive $ 123.3 $ 114.3 8% High-Tech 59.4 59.3 - Retail & CPG 103.2 46.0 124% Industrial & Other 38.8 38.7 - Operating Revenue 324.7 258.3 26% Subcontracted Transportation 84.0 66.8 26% Total Revenue $ 408.7 $ 325.1 26% Se
Slide 31: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) Full Year 2011 2010 % B/(W) Automotive $ 469.2 $ 449.2 4% High-Tech 236.1 220.5 7% Retail & CPG 420.5 177.8 137% Industrial & Other 165.0 157.5 5% Operating Revenue 1,290.9 1,005.0 28% Subcontracted Transportation 314.5 247.3 27% Total Revenue $ 1,605.4 $ 1,
Slide 32: Dedicated Contract Carriage (DCC)
Dedicated Contract Carriage (DCC) ($ Millions) Fourth Quarter 2011 2010 % B/(W) Operating Revenue $ 147.1 $ 119.3 23% Subcontracted Transportation 9.5 2.6 269% Total Revenue $ 156.6 $ 121.8 29% Segment Earnings Before Tax (EBT) $ 7.0 $ 6.5 7% Segment EBT as % of Total Revenue 4.5% 5.3% Segment EBT a
Slide 33: Dedicated Contract Carriage (DCC)
Dedicated Contract Carriage (DCC) ($ Millions) Full Year 2011 2010 % B/(W) Operating Revenue $ 566.6 $ 468.5 21% Subcontracted Transportation 34.0 14.0 142% Total Revenue $ 600.7 $ 482.6 24% Segment Earnings Before Tax Earnings (EBT) $ 32.5 $ 31.0 5% Segment EBT as % of Total Revenue 5.4% 6.4% Segme
Slide 34: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) Fourth Quarter 2011 2010 % B/(W) Allocated CSS Costs $ 40.8 $ 37.2 (10)% Unallocated CSS Costs 11.1 10.8 (3)% Total CSS Costs $ 52.0 $ 48.0 (8)% 02/02/12 Proprietary and Confidential 34
Slide 35: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) Full Year 2011 2010 % B/(W) Allocated CSS Costs $ 161.1 $ 142.2 (13)% Unallocated CSS Costs 42.7 41.5 (3)% Total CSS Costs $ 203.8 $ 183.7 (11)% 02/02/12 Proprietary and Confidential 35
Slide 36: Balance Sheet
Balance Sheet ($ Millions) December 31, December 31, 2011 2010 Cash and Cash Equivalents $ 105 $ 213 Other Current Assets 984 810 Revenue Earning Equipment, Net 5,050 4,201 Operating Property and Equipment, Net 624 607 Other Assets 856 821 Total Assets $ 7,618 $ 6,652 Short-Term Debt / Current Porti
Slide 37: U.S. Asset Management Update
U.S. Asset Management Update (a) Number of Units FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 10,000 9,060 Redeployments – vehicles 9,000 coming off-lease with useful life remaining are redeployed 7,784 in the Ryder fleet (Commercial 8,000 7,537 Rental, DCC, SCS, or with another Lease customer). 7,000 Extens
Slide 38: Financial Indicators Forecast
Financial Indicators Forecast (1) Total Cash Generated (2) (3) Gross Capital Expenditures (3) ($ Millions) Full Service Lease $2,200 $1,684 $1,690 Commercial Rental $1,571 $1,442 PP&E/Other $1,757 $1,760 $1,381 $1,252 $1,266 $1,328 $1,399 $1,091 $1,179 $1,265 $1,054 $1,289 $1,182 $949 $1,165 $1,088
Slide 39: Pension Expense
Pension Expense ($ Millions) 2011 Pension Expense $ 38 Lower than Assumed Return on Assets in 2011 11 Lower Expected Return Assumption 7 Benefit of Pension Contributions (6) Lower Discount Rate 4 2012 Estimated Pension Expense $ 54 02/02/12 Proprietary and Confidential 39
Slide 40: New Income Statement Format - 2011
New Income Statement Format - 2011 ($ Millions) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 Lease & Rental Revenues $ 579.4 $ 634.7 $ 675.3 $ 664.5 $ 2,553.9 Services Revenue 632.7 640.5 669.9 666.0 2,609.2 Fuel Services Revenue 213.2 238.1 225.5 210.6 887.5 Total Revenues 1,425.4 1,513.3 1,570.7 1,541.
Slide 41: New Income Statement Format - 2010
New Income Statement Format - 2010 ($ Millions) 1Q 2010 2Q 2010 3Q 2010 4Q 2010 FY 2010 Lease & Rental Revenues $ 543.6 $ 574.4 $ 597.5 $ 594.4 $ 2,309.8 Services Revenue 504.3 527.3 541.2 536.9 2,109.7 Fuel Services Revenue 172.0 184.4 178.3 182.1 716.9 Total Revenues 1,219.9 1,286.1 1,316.9 1,313.
Slide 42: New Income Statement Format - 2009
New Income Statement Format - 2009 ($ Millions) 1Q 2009 2Q 2009 3Q 2009 4Q 2009 FY 2009 Lease & Rental Revenues $ 551.0 $ 574.5 $ 573.7 $ 566.6 $ 2,265.9 Services Revenue 481.0 488.1 512.8 513.6 1,995.5 Fuel Services Revenue 142.4 149.4 167.3 166.8 625.9 Total Revenues 1,174.4 1,212.0 1,253.9 1,247.
Slide 43: Non-GAAP Financial Measures
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. Non-GAAP financial measures should be considered in addition to,
Slide 44: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 4Q11 - 4Q11 - 4Q10 - 4Q10 - Earnings EPS Earnings EPS Reported $ 47.7 $ 0.92 $ 41.4 $ 0.80 Int'l Asset Gain on Sale - - (0.9) (0.02) Tax Benefits - - (10.8) (0.21) Acquisition Related Transaction Costs 0.
Slide 45: EBT and Tax Rate from Continuing Operations Reconciliation
EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 4Q11 - 4Q11 - 4Q11 - EBT Tax Tax Rate Reported $ 73.1 $ 25.4 34.8% Acquisition Related Transaction Costs 0.4 - Restructuring Charges 2.9 0.9 Comparable $ 76.4 $ 26.3 34.4% FY11 - FY11 - FY11 - EBT Tax Tax
Slide 46: EBT and Tax Rate from Continuing Operations Reconciliation
EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 4Q10 - 4Q10 - 4Q10 - EBT Tax Tax Rate Reported $ 49.6 $ 8.1 16.4% Gain on Sale of Building (0.9) - Tax Benefits - 10.8 Acquisition Costs 4.1 - Comparable $ 52.7 $ 18.9 35.9% FY10 - FY10 - FY10 - EBT Tax T
Slide 47: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 2004 2005 2006 2007 2008 2009 (1) Net earnings $ 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 30 Income taxes 115 129 144 15
Slide 48: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 2010 2011 (1) Net Earnings $ 118 $ 170 Restructuring and Other Charges, Net and Other Items 6 6 Income Taxes 61 108 Adjusted Earnings Before Income Taxes 185 284 (2) Adjusted Interest Expense 133 135 (3) Adjusted Income Taxes (124) (157) Adjuste
Slide 49: Segment Adjusted Return on Capital Reconciliation
Segment Adjusted Return on Capital Reconciliation ($ Millions) 2011 FMS SCS DCC (1) Net Earnings $ 152 $ 43 $ 20 Restructuring and Other Charges, Net and Other Items 6 - - Income Taxes 92 26 13 Adjusted Earnings Before Income Taxes 250 69 33 (2) Adjusted Interest Expense 135 5 3 (3) Adjusted Income
Slide 50: Segment Adjusted Return on Capital Reconciliation
Segment Adjusted Return on Capital Reconciliation ($ Millions) 2010 FMS SCS DCC (1) Net Earnings $ 118 $ 26 $ 19 Restructuring and Other Charges, Net and Other Items - 3 - Income Taxes 54 18 12 Adjusted Earnings Before Income Taxes 172 47 31 (2) Adjusted Interest Expense 134 5 2 (3) Adjusted Income
Slide 51: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to % to % to % to 12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity 12/31/07 Equity Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143
Slide 52: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 12/31/11 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% Receivables Sold - - - - PV of minimum lease payments and guaranteed residual values under operating lease
Slide 53: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/00 (4) 12/31/01 (4) 12/31/02 (4) 12/31/03 (4) 12/31/04 (4) 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 Cash Provided by Operating Activities $ 1,023 $ 365 $ 617 $ 803 $ 867 $ 776 $ 852 $ 1,097 $ 1,248 $ 985 Less: Changes in Bal. of Trade Rec. Sold (270) 2
Slide 54: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/10 12/31/11 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 Proceeds from Sale and Leaseback of Assets - 37 Collections of Direct Finance Leases 62 62 Other,
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