Fourth Quarter 2018 Earnings & 2019 Forecast Conference Callspread, operating cash flow, free cash...

© 2015 Ryder System, Inc.

All Rights Reserved.

Fourth Quarter 2018 Earnings &

2019 Forecast Conference Call

February 14, 2019


All Rights Reserved.2

Safe Harbor and Non-GAAP Financial Measures

Note Regarding Forward-Looking Statements:Certain statements and information included in this news release are “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including our expectations

regarding market trends and economic conditions, manufacturer production and delivery schedules, our financial condition, fleet growth, performance in our product lines and segments, the strength

of our sales pipeline, demand, utilization and pricing trends in commercial rental, volumes and pricing trends in used vehicle sales, used vehicle inventory levels, residual values, return on capital

spread, operating cash flow, free cash flow, capital expenditures, our ability to make investments in sales, marketing, IT and new product initiatives, benefits of our sales and marketing initiatives,

maintenance costs on certain older model year vehicles, and the impact and adequacy of steps we have taken to address our cost structure, including our maintenance initiatives and zero-based

budgeting process. Our forward-looking statements also include our expectations regarding the impact from the new lease accounting standard on our earnings, financial position, cash flow,

leverage and the demand for our products and services. The expected impact on these items may differ due to changes in the distribution of lease fleet by age, the number of early terminations,

vehicle type and lease terms, and the percentage of leases fulfilled with new versus used vehicles. All of these statements are based on our preliminary estimates and are subject to our continuing

evaluation of our leases under the new lease accounting standard as well as necessary changes to accounting and business processes in order to implement the recognition and disclosure

requirements of the new standard. All of our forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause

actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, our ability to adapt to changing

market conditions, lower than expected contractual sales, decreases in commercial rental demand or poor acceptance of rental pricing, availability of rental vehicles to meet demand and availability

of labor to maintain our fleet at normalized levels, worsening of market demand for used vehicles impacting current pricing and our anticipated proportion of retail versus wholesale sales, lack of

customer demand for our services, higher than expected maintenance costs due to, among other things, lower than expected benefits from maintenance initiatives and a newer fleet, setbacks or

uncertainty in the economic market, implementation or enforcement of regulations, decreases in freight demand or volumes, poor operational execution particularly with new accounts and product

launches, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economic conditions, business interruptions or expenditures due to

severe weather or natural occurrences, competition from other service providers and new entrants, customer retention levels, loss of key customers, driver and technician shortages resulting in

higher procurement costs and turnover rates, unexpected bad debt reserves or write-offs, changes in customers' business environments that will limit their ability to commit to long-term vehicle

leases, a decrease in credit ratings, increased debt costs, adequacy of accounting estimates, reserves and accruals particularly with respect to pension, taxes, depreciation, insurance and revenue,

impact of changes in accounting policies, the sudden or unusual changes in fuel prices, unanticipated currency exchange rate fluctuations, our ability to manage our cost structure, and the risks

described in our filings with the Securities and Exchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict

all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of

new information, future events, or otherwise.

Note Regarding Non-GAAP Financial Measures: This presentation includes certain non-GAAP financial measures as defined under SEC rules, including:

Comparable Earnings Measures, which consist of comparable earnings from continuing operations, comparable earnings per share from continuing operations (as

well as forecasts), comparable earnings before income tax and comparable effective income tax rate, and comparable earnings before interest, taxes, depreciation

and amortization. Additionally, our adjusted return on average capital (ROC) and adjusted return on capital spread (ROC spread) measures are calculated based on

comparable earnings items.

Operating Revenue Measures, which consist of operating revenue for Ryder and its business segments, and segment EBT as a percentage of operating revenue.

Cash Flow Measures, which consist of total cash generated and free cash flow.

Debt Measures, including total obligations and total obligations to equity.

Refer to Appendix - Non-GAAP Financial Measures, beginning on slide 47, for reconciliations of the non-GAAP financial measures contained in this presentation to the

nearest GAAP measure. Additional information regarding non-GAAP financial measures as required by Regulation G and Item 10(e) of Regulation S-K can be found in

our most recent Form 10-K, Form 10-Q and our Form 8-K filed with the SEC as of the date of this presentation, which are available at http://investors.ryder.com.



Contents

• 2018 Highlights

• Fourth Quarter 2018 Results Overview

• 2019 Forecast

• Three-Year Financial Targets

• Q & A



Delivered On Our Commitments While

Investing For Long-Term Growth



Delivered On Our Commitments While

Investing For Long-Term Growth

• Second consecutive year of record contractual sales

• Record organic lease fleet growth - nearly 40% from customers new to

outsourcing

• Significantly expanded last mile capabilities for big and bulky goods to

capitalize on fast-growing e-commerce market

• Launched and expanded roll out of COOP by RyderTM - the first and only

commercial truck sharing platform

• Signed largest electric vehicle deal in industry (1,000 vehicles)

• Improved capabilities / efficiencies with our fleet management app

(RyderGydeTM), safety enhancing in-cab camera technology, and smart warehouse

technologies

• Achieved meaningful cost savings targets using new Zero Based Budgeting

process



Contents

• 2018 Highlights


• 2019 Forecast


• Q & A



4th Quarter Results Overview

• Earnings per diluted share from continuing operations were $2.06 in 4Q18 vs.

$12.12 in 4Q17

- 4Q18 included a net benefit from tax reform-related and other tax adjustments of $0.38, non-operating pension costs of $0.06, and restructuring charges and fees of $0.08.

- 4Q17 included a net benefit from tax reform of $10.79, non-operating pension costs of $0.07, gain on a property sale of $0.27, and restructuring charges and fees of $0.24

• Comparable earnings per share from continuing operations were $1.82 in 4Q18

vs. $1.37 in 4Q17

• Total revenue increased 17% and operating revenue increased 13% vs. prior

year



Key Financial Statistics

Fourth Quarter($ Millions, Except Per Share Amounts)

Note: Amounts throughout presentation may not be additive due to rounding.

2018 2017 %B/(W)

Total Revenue $ 2,258.3 $ 1,931.1 17%

Fuel and Subcontracted Transportation 464.2 344.5 35%

Operating Revenue $ 1,794.2 $ 1,586.6 13%

Earnings Per Share from Continuing Operations $ 2.06 $ 12.12 (83)%

Comparable Earnings Per Share from Continuing Operations $ 1.82 $ 1.37 33%

Memo:

Earnings from Continuing Operations $ 108.6 $ 643.3 NM

Comparable EBITDA $ 555.2 $ 475.6 17%

Average Shares (Millions) - Diluted 52.8 53.1

Tax Rate from Continuing Operations 2.4% (718.7)%

Comparable Tax Rate from Continuing Operations 20.5% 30.4%

Adjusted Return on Capital vs. Cost of Capital (Trailing 12 months) 0.1% (0.2)%



4th Quarter Results Overview – FMS

• Fleet Management Solutions (FMS) total revenue up 11% and operating revenue up 10%

– ChoiceLease revenue up 8% – SelectCare revenue up 12% – Commercial rental revenue up 19%

• FMS earnings improved due to higher ChoiceLease and commercial rental performance, partially offset by depreciation and overheads

– Lease results benefited from fleet growth – Rental results reflect higher demand and pricing– Higher depreciation of $16 million due to vehicle residual value changes and

accelerated depreciation– Used vehicle results were in line with the prior year as higher gains were offset by

increased valuation adjustments

• FMS earnings before tax (EBT) up 16%

– FMS EBT percent of FMS total revenue up 30 basis point to 7.7%

– FMS EBT percent of FMS operating revenue up 40 basis points to 9.1%



• Units held for sale were 6,900 at quarter end, up from 6,000 units in the prior year

– Units held for sale increased by 700 units sequentially

• Sold 4,500 used vehicles during the fourth quarter, up 500 from prior year and up 400 units sequentially

• Proceeds per unit were up 18% for tractors and up 8% for trucks in the fourth quarter compared with prior year

– Higher proceeds primarily reflect increased sales through retail sales channel and age of vehicles sold

– Retail proceeds per unit were up 18% for tractors and 9% for trucks, year over year

– On an age adjusted basis, pricing is up low single digits sequentially

4th Quarter Used Vehicle Sales Update - FMS



4th Quarter Results Overview – DTS

• Dedicated Transportation Solutions (DTS) total revenue up 28% and operating revenue up 18%

– DTS total and operating revenue increased due to new business and higher volumes

• DTS earnings increased due to revenue growth, partially offset by continued higher start-up costs on a customer account

• DTS earnings before tax (EBT) up 2%

–DTS EBT percent of DTS total revenue down 110 basis points to 4.4%

–DTS EBT percent of DTS operating revenue down 100 basis points to 6.8%



4th Quarter Results Overview – SCS

• Supply Chain Solutions (SCS) total revenue up 26% and operating revenue up 19%

– SCS total and operating revenue increased due to higher volumes, new business, improved pricing and the MXD acquisition

– Excluding MXD, SCS total revenue and SCS operating revenue grew 15% and 13%, respectively

• SCS earnings increased primarily due to revenue growth

• SCS earnings before tax (EBT) up 18%

– SCS EBT percent of SCS total revenue down 30 basis points to 4.8%

– SCS EBT percent of SCS operating revenue down 10 basis points to 6.6%



Capital Expenditures

Full Year($ Millions)

2018 20172018 $

O/(U) 2017

ChoiceLease $ 2,207 $ 1,457 $ 750

Commercial Rental 797 352 445

Operating Property and Equipment 162 133 29

Gross Capital Expenditures 3,165 1,941 1,224

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 396 429 (33)

Net Capital Expenditures $ 2,769 $ 1,512 $ 1,257

Memo: Acquisitions $ 167 $ 7 $ 160



Cash Flow from Continuing Operations


(1) Reflects vehicle gains on sale, net of vehicle valuation adjustments.

(2) Included in cash flows from investing activities.

(3) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.

(4) Free Cash Flow excludes acquisitions and changes in restricted cash.

(5) Debt to equity does not reflect the impact from lease accounting changes.

2018 2017

Earnings from Continuing Operations $ 276 $ 792

Depreciation 1,395 1,255

Used Vehicles Sales, Net (1) 22 17

Amortization and Other Non-Cash Charges, Net 79 55

Pension Contributions (28) (41)

Tax Reform Benefit 15 (587)

Changes in Working Capital and Deferred Taxes (124) 56

Cash Provided by Operating Activities 1,635 1,548

Proceeds from Sales (Primarily Revenue Earning Equipment)(2) 396 429

Collections of Direct Finance Leases & Other(2) 75 73

Total Cash Generated 2,106 2,050

Capital Expenditures (2), (3) (3,050) (1,860)

Free Cash Flow (4) $ (944) $ 190

Debt to Equity (5) 228% 191%



Contents

• 2018 Highlights


• 2019 Forecast


• Q & A



2019 Forecast Assumptions

General

• Moderate growth economic environment with rising interest rates

• Strong contractual sales activity in all segments

FMS

• ChoiceLease fleet grows by 11,000 and SelectCare fleet grows by 6,300 - reflects strong 2H18 lease sales activity, extended OEM delivery lead times, as well as ongoing secular trends that favor outsourcing

• Higher rental results driven by customer base expansion and increased pricing

• Negative free cash flow driven by higher capital spending to fund record lease growth and higher replacement activity in lease and rental

• Elevated maintenance costs on certain older model year vehicles of $11M

• New $75M multi-year maintenance initiative: $20M benefit expected in 2019

• Used vehicle sales results modestly lower than prior year due to slightly lower pricing expectations on increased volumes

• EPS headwind from depreciation policy changes and the extension of accelerated depreciation through mid-2020



2019 Forecast Assumptions

DTS

• Strong revenue growth driven by record 2018 sales activity, higher pricing and volumes

• Earnings benefit from revenue growth and improved operating performance, partially offset by prior year favorable insurance developments not currently forecast

SCS

• Revenue growth rate declines in second half of 2019 reflecting lost business

• Earnings benefit from revenue growth, higher pricing and improved operating performance, partially offset by strategic investments

Other

• Continued cost reductions from Zero Based Budgeting program

• Strategic investments to drive long term revenue and earnings growth

• Two-year 1.5 million share anti-dilutive repurchase program remains available



• Effective January 1, 2019, Ryder will adopt new lease accounting guidance. The

guidance requires that Ryder separate the lease (i.e. financial) and non-lease (i.e.

maintenance) components for its ChoiceLease product and recognize non-lease

obligations as services are provided.

• No change to cash flow or total earnings over the life of a lease contract

One-Time Impacts:

• The one-time, after-tax cumulative effect adjustment to recognize deferred revenue is

expected to have a material impact by reducing shareholders' equity

• Balance sheet leverage will increase following this non-cash equity charge. As such,

we are revising our debt to equity target range to 250 - 300% from the prior target of

200 - 250%.

Lease Accounting Changes



Ongoing Impacts:

• Earnings volatility associated with lease fleet age is expected to be reduced as maintenance

revenue will be better aligned with maintenance costs

• The annual impact to our results will vary depending on, among other factors, distribution of

lease fleet by age, vehicle type / lease term, and percentage of leases fulfilled with new versus

used vehicles

• Based on these factors, we currently estimate the EPS impact from the new lease accounting

standard to be:

◦ 2019 EPS: $0.20 decrease

◦ 2018 EPS: $0.25 increase

◦ Impact driven primarily by fleet aging in 2018 and expected decline in fleet age in 2019

Lease Accounting Changes

Additional detail is in Ryder's white paper posted on our

investor website at http://investors.ryder.com



Key Financial Statistics ($ Millions, Except Per Share Amounts)

2019 Forecast 2018 %B/(W)

Revenue:

Total Revenue $ 9,100 $ 8,409 8%

Fuel and Subcontracted Transportation 1,800 1,716 5%

Operating Revenue $ 7,300 $ 6,693 9%

Earnings From Continuing Operations:

Earnings Before Income Taxes $373 - $395 $ 374 0% - 6%

Earnings $275 - $291 $ 276 0% - 5%

Comparable Earnings Before Income Taxes $425 - $446 $ 407 5% - 10%

Comparable Earnings $318 - $334 $ 306 4% - 9%

Earnings Per Share (EPS) from Continuing Operations:

EPS $5.18 - $5.48 $ 5.21 (1)% - 5%

Comparable EPS $6.00 - $6.30 $ 5.79 4% - 9%

Comparable EPS ex- New Lease Accounting Standard (1) $6.20 - $6.50 $ 5.79 7% - 12%

Memo:

Estimated New Lease Accounting Standard EPS Impact $ (0.20) $ 0.25 NM

Comparable EBITDA $ 2,380 $ 2,041 17%


Tax Rate from Continuing Operations 26.2% 26.3%

Comparable Tax Rate from Continuing Ops 25.1% 24.7%

Adjusted Return on Capital vs. Cost of Capital 0.2% 0.1%

(1) We are providing this non-GAAP measure in order to provide shareholders with more transparency to the impact of the new lease

accounting standard during the transition period.



Business Segment Revenue

2019 Forecast Change % vs. 2018

Fleet Management Solutions:

Total Revenue (1) 10%

Operating Revenue (2) 10%

ChoiceLease Revenue 10%

Commercial Rental Revenue 10%

Dedicated Transportation Solutions:

Total Revenue 7%

Operating Revenue (1)(2) 11%

Supply Chain Solutions:

Total Revenue 6%

Operating Revenue (1)(2) 5%

(1) Excludes fuel revenue

(2) Excludes subcontracted transportation revenue



2019 Causes of Comparable EPS Change(1)

($ Earnings Per Share)

(1) Represents Comparable EPS from Continuing Operations

(2) Includes impact of residual value changes of negative $0.41 and Used Vehicle Sales, net, of negative $0.11, partially offset by accelerated depreciation of $0.14

2018

Pre-Lease

Accounting

UVS /

Depr (2)

Strategic

InvestmentsInterest/In

surance

Compensation Overheads

& OtherCommercial

RentalDTS SCS Cost

Actions

ChoiceLease/

Select Care

Lease

Accounting

Impact

2019

Post-Lease

Accounting-Merit

-Stock

Comp+Bonu

s

$5.79

$0.47

$0.38

$0.27$0.16

$0.16$0.10

$0.20$0.23

$0.25

$0.47

$1.10 $6.50

$0.20

$6.30

Maintenance

on older

model year

vehicles



Capital Expenditures, Cash Flow & Leverage

Full Year ($ Millions)

2019 Forecast 2018

ChoiceLease

Replacement $ 1,342 $ 1,044

Growth 1,393 1,163

Total ChoiceLease 2,735 2,207

Commercial Rental

Replacement 436 259

Growth 194 538

Total Commercial Rental 630 797

Operating Property and Equipment 270 162

Gross Capital Expenditures 3,635 3,165

Less: Proceeds from Sales 450 396

Net Capital Expenditures $ 3,185 $ 2,769

Cash Provided by Operating Activities $ 2,045 $ 1,635

Total Cash Generated $ 2,580 $ 2,106

Free Cash Flow $ (1,120) $ (944)

Debt to Equity (1) 285% 228%

(1) 2018 debt to equity of 228% is within our target range of 200-250% prior to lease accounting changes. 2019 forecast debt to equity

of 285% is within our revised target range of 250-300% subsequent to lease accounting change.



382

556

691

Growth Capital Expenditures

Free Cash Flow $258 (257) (488) (340) (315) (728) 194 190 (944) (1,120)

Total Cash Generated $1,328 1,442 1,645 1,783 1,944 1,940 2,099 2,050 2,106 2,580

Comparable EBITDA $1,183 1,318 1,439 1,523 1,668 1,802 1,858 1,830 2,041 2,380

($ Millions)

263

691

582

865

1,022

610

255

Free Cash Flow is impacted by

growth capital in the period of initial

vehicle investment and by variability

in the timing of replacement capital

Total Cash Generated and

Comparable EBITDA increase

following periods of growth as

capital is priced into lease

contracts and recovered over the

contract term



EPS – Continuing Operations($ Earnings Per Share)

First Quarter EPS (1)

2019 Forecast 2018 % Change

GAAP $0.71 - $0.78 $0.64 11 - 22%

Comparable (2) $0.96 - $1.03 $0.91 5 - 13%

Comparable Excluding New Lease Accounting Standard (3) $0.94 - $1.01 $0.91 3 - 11%

Full Year EPS (1)

2019 Forecast 2018 % Change

GAAP $5.18 - $5.48 $5.21 (1)% - 5%

Comparable (2) $6.00 - $6.30 $5.79 4% - 9%Comparable Excluding New Lease Accounting Standard (3)

$6.20 - $6.50 $5.79 7% - 12%

(1) 2018 GAAP and comparable EPS numbers have not been restated to reflect the new lease accounting standard

(2) Comparable earnings per diluted share exclude non-operating pension costs, ERP system implementation costs, restructuring and other

costs, and tax items totaling of $0.82 in 2019 and $0.25 in the first quarter of 2019

(3) We are providing this non-GAAP measure in order to provide shareholders with more transparency to the impact of the new lease

accounting standard during the transition period



Contents

• 2018 Highlights


• 2019 Forecast


• Q & A



3-Yr Target2019

Forecast

Operating Revenue Growth

Fleet Management 6 - 7% l

Dedicated Transportation 9 - 10% l

Supply Chain 7 - 8% l

EBT as % of Operating Revenue

Fleet Management 10 - 12% l

Dedicated Transportation 8 - 9% l

Supply Chain 8 - 9% l

ROC Spread 100 - 150 bps l

Leverage (Debt-to-Equity) 250 - 300% l

Three-Year Financial Targets

• FMS targets assume stable rental environment

• Leverage target revised from 200 - 250% to reflect lease accounting impact

Includes

negative impact

from used

vehicle sales

and

maintenance

costs on certain

older model year

vehicles



Contents

• 2018 Highlights


• 2019 Forecast


• Q & A



Q&A



Appendix

ChoiceLease Vehicle Count

Business Segment Detail

Central Support Services

Balance Sheet

Adjusted Return on Capital History

Financial Indicators Forecast

Asset Management

Non-GAAP Financial Measures & Reconciliations



ChoiceLease Vehicle Count

4Q17 1Q18 2Q18 3Q18 4Q18

4Q18 O/(U) 4Q17

4Q18 O/(U) 3Q18

End of Period Vehicle Count

ChoiceLease Vehicles (as reported) 139,100 140,800 143,000 145,400 149,300 10,200 3,900

Acquisition — — 800 700 600 600 (100)

Adjusted ChoiceLease Vehicles (ex-Acquisition) 139,100 140,800 142,200 144,700 148,700 9,600 4,000



Key Financial Statistics

Full Year($ Millions, Except Per Share Amounts)

Note: Amounts throughout presentation may not be additive due to rounding.

2018 2017 %B/(W)

Total Revenue $ 8,409.2 $ 7,297.1 15%

Fuel and Subcontracted Transportation 1,715.8 1,256.7 37%

Operating Revenue $ 6,693.4 $ 6,040.4 11%

Earnings Per Share from Continuing Operations $ 5.21 $ 14.90 (65)%

Comparable Earnings Per Share from Continuing Operations $ 5.79 $ 4.53 28%

Memo:

Earnings from Continuing Operations $ 275.6 $ 792.3

Comparable EBITDA $ 2,041.4 $ 1,829.9 12%


Tax Rate from Continuing Operations 26.3% (151.9)%

Comparable Tax Rate from Continuing Operations 24.7% 34.9%



Business Segments

(1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items.

($ Millions)

Fourth Quarter

Memo: Operating Revenue

2018 2017 % B/(W) 2018 2017 % B/(W)

Total Revenue:

Fleet Management Solutions $ 1,380.6 $ 1,241.7 11% $ 1,166.6 $ 1,057.0 10%

Dedicated Transportation Solutions 363.1 284.4 28% 233.1 198.2 18%

Supply Chain Solutions 670.4 531.5 26% 489.6 410.6 19%

Eliminations (155.8) (126.5) (23)% (95.1) (79.3) (20)%

Total $ 2,258.3 $ 1,931.1 17% $ 1,794.2 $ 1,586.6 13%

Segment Earnings Before Tax: (1)

Fleet Management Solutions $ 106.5 $ 91.8 16%

Dedicated Transportation Solutions 15.8 15.5 2%

Supply Chain Solutions 32.3 27.4 18%

Eliminations (19.0) (15.2) (24)%

135.6 119.5 14%

Central Support Services (Unallocated Share) (14.6) (15.1) 4%

Non-operating Pension Costs (4.3) (6.9) NM

Restructuring and Other Items (5.4) (18.9) NM

Earnings Before Income Taxes $ 111.3 $ 78.6 42%

Provision for Income Taxes (2.7) 564.7 NM

Earnings from Continuing Operations $ 108.6 $ 643.3 NM

Comparable Earnings from Continuing Operations $ 96.2 $ 72.6 33%



Business Segments($ Millions)

Full Year

Memo: Operating Revenue

2018 2017 % B/(W) 2018 2017 % B/(W)

Total Revenue:

Fleet Management Solutions $ 5,255.2 $ 4,733.6 11% $ 4,407.6 $ 4,043.8 9%

Dedicated Transportation Solutions 1,333.3 1,095.6 22% 870.5 789.3 10%

Supply Chain Solutions 2,398.1 1,937.4 24% 1,765.3 1,507.5 17%

Eliminations (577.5) (469.5) (23)% (350.1) (300.2) (17)%

Total $ 8,409.2 $ 7,297.1 15% $ 6,693.4 $ 6,040.4 11%

Segment Earnings Before Tax: (1)

Fleet Management Solutions $ 324.3 $ 313.0 4%

Dedicated Transportation Solutions 61.2 55.3 11%

Supply Chain Solutions 133.6 103.6 29%

Eliminations (63.6) (53.3) (19)%

455.6 418.6 9%

Central Support Services (Unallocated Share) (49.0) (48.1) (2)%

Non-operating Pension Costs (7.5) (27.7) NM

Restructuring and Other Items (25.1) (28.2) NM

Earnings Before Income Taxes $ 373.9 $ 314.5 19%

Provision for Income Taxes (98.3) 477.7 NM

Earnings from Continuing Operations $ 275.6 $ 792.3 (65)%

Comparable Earnings from Continuing Operations $ 306.2 $ 241.1 27%

(1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items.



Fleet Management Solutions (FMS)

Fourth Quarter

($ Millions)

Revenue 2018 2017 % B/(W)

ChoiceLease $ 748.9 $ 696.1 8%

SelectCare 129.8 116.1 12%

Commercial Rental 265.7 224.2 19%

Other 22.1 20.7 7%

FMS Operating Revenue 1,166.6 1,057.0 10%

Fuel Services Revenue 214.1 184.8 16%

FMS Total Revenue $ 1,380.6 $ 1,241.7 11%

FMS Earnings Before Tax

FMS Earnings Before Tax (EBT) $ 106.5 $ 91.8 16%

FMS EBT as a % of FMS Total Revenue 7.7% 7.4%

FMS EBT as a % of FMS Operating Revenue 9.1% 8.7%



Fleet Management Solutions (FMS)


Revenue 2018 2017 % B/(W)

ChoiceLease $ 2,856.8 $ 2,688.7 6%

SelectCare 502.8 464.1 8%

Commercial Rental 960.6 813.5 18%

Other 87.3 77.5 13%

FMS Operating Revenue 4,407.6 4,043.8 9%

Fuel Services Revenue 847.7 689.8 23%

FMS Total Revenue $ 5,255.2 $ 4,733.6 11%

Earnings Before Tax

FMS Earnings Before Tax (EBT) $ 324.3 $ 313.0 4%

FMS EBT as a % of FMS Total Revenue 6.2% 6.6%

FMS EBT as a % of FMS Operating Revenue 7.4% 7.7%



Dedicated Transportation Solutions (DTS)($ Millions)

Fourth Quarter

Revenue 2018 2017 % B/(W)

DTS Operating Revenue $ 233.1 $ 198.2 18%

Subcontracted Transportation 91.1 55.2 65%

Fuel 38.9 30.9 26%

DTS Total Revenue $ 363.1 $ 284.4 28%

Earnings Before Tax

DTS Earnings Before Tax (EBT) $ 15.8 $ 15.5 2%

DTS EBT as a % of DTS Total Revenue 4.4% 5.5%

DTS EBT as a % of DTS Operating Revenue 6.8% 7.8%



Dedicated Transportation Solutions (DTS)($ Millions)

Full Year

Revenue 2018 2017 % B/(W)

DTS Operating Revenue $ 870.5 $ 789.3 10%


Fuel 146.8 114.6 28%

DTS Total Revenue $ 1,333.3 $ 1,095.6 22%

Earnings Before Tax

DTS Earnings Before Tax (EBT) $ 61.2 $ 55.3 11%

DTS EBT as a % of DTS Total Revenue 4.6% 5.1%

DTS EBT as a % of DTS Operating Revenue 7.0% 7.0%



Supply Chain Solutions (SCS)($ Millions)

Fourth Quarter

Revenue 2018 2017 % B/(W)

Automotive $ 170.0 $ 146.2 16%

Technology & Healthcare 99.5 77.0 29%

CPG & Retail 177.3 146.6 21%

Industrial & Other 42.9 40.9 5%

SCS Operating Revenue 489.6 410.6 19%


Fuel 31.3 21.9 43%

SCS Total Revenue $ 670.4 $ 531.5 26%

Earnings Before Tax

SCS Earnings Before Tax (EBT) $ 32.3 $ 27.4 18%

SCS EBT as a % of SCS Total Revenue 4.8% 5.1%

SCS EBT as a % of SCS Operating Revenue 6.6% 6.7%



Supply Chain Solutions (SCS)($ Millions)

Full Year

Revenue 2018 2017 % B/(W)

Automotive $ 628.8 $ 566.3 11%

Technology & Healthcare 329.8 271.6 21%

CPG & Retail 637.2 511.8 25%

Industrial & Other 169.5 157.9 7%

SCS Operating Revenue 1,765.3 1,507.5 17%


Fuel 111.8 75.2 49%

SCS Total Revenue $ 2,398.1 $ 1,937.4 24%

Earnings Before Tax

SCS Earnings Before Tax (EBT) $ 133.6 $ 103.6 29%

SCS EBT as a % of SCS Total Revenue 5.6% 5.3%

SCS EBT as a % of SCS Operating Revenue 7.6% 6.9%



Central Support Services (CSS)

Fourth Quarter

($ Millions)

2018 2017 % B/(W)

Allocated CSS Costs $ 60.1 $ 58.9 (2)%

Unallocated CSS Costs 14.6 15.1 4%

Total CSS Costs $ 74.7 $ 74.1 1%



Central Support Services (CSS)

Full Year

($ Millions)

2018 2017 % B/(W)

Allocated CSS Costs $ 222.8 $ 218.3 (2)%

Unallocated CSS Costs 49.0 48.1 (2)%

Total CSS Costs $ 271.8 $ 266.4 (2)%



Balance Sheet($ Millions)

December 31, 2018 December 31, 2017

Current Assets $ 1,568 $ 1,323

Revenue Earning Equipment, Net 9,498 8,355

Operating Property and Equipment, Net 844 777

Other Assets 1,141 1,009

Total Assets $ 13,051 $ 11,464

Current Liabilities $ 1,362 $ 1,189

Total Debt 6,624 5,410

Other Non-Current Liabilities (including Deferred Income Taxes) 2,155 2,024

Shareholders' Equity 2,910 2,842

Total Liabilities and Shareholders' Equity $ 13,051 $ 11,464



Adjusted Return on Capital Spread

(1) Adjusted Total Capital represents Adjusted Average Total Capital in billions

(2) Includes pension settlement charges of $69M, primarily buyouts, which impacted Return on Equity by 360 basis points

(3) Reflects one-time benefit from revaluation of net deferred income tax liability due to Tax Reform

Adj ROC O/(U) COC (1.3)% 0.2% 0.9% 1.0% 1.1% 1.4% 0.5% (0.2)% 0.1% 0.2%

Return on Equity 8.4% 11.9% 14.9% 14.9% 11.3% 16.1% 12.8% 35.9% 9.5% 11.1%

Adjusted Total Capital (1) $4.0 $4.6 $5.2 $5.6 $6.6 $7.1 $7.6 $7.5 $8.8 $10.0

(2) (3)



Financial Indicators Forecast (1)

($ Millions)

Free Cash Flow $258 (257) (488) (340) (315) (728) 194 190 (944) (1,120)

Debt to Equity 196% 257% 272% 227% 260% 277% 263% 191% 228% 285%

Gross Capital Expenditures

Debt to Equity / Total Obligations to Equity (2)

(1) Free Cash Flow and Gross Capital Expenditures exclude acquisitions. Total Obligations to Equity includes acquisitions. (2) The debt to equity metric was not revised in years prior to 2012 to reflect the change in accounting treatment of certain sale-leaseback transactions as debt.(3) Illustrates impact of accumulated net pension related equity charge on leverage.

Lease Commercial Rental PP&E/Other

Pension Impact (3)



Asset Management YTD Update (US Only)

(a) Current year statistics may exclude some units due to a lag in reporting

(b) Excludes early terminations where customer purchases vehicle

(c) 2018 YTD activity excludes internal assignments. Historical periods not restated to exclude assignments (represents ~30% of volume)

(a)(b)(c)

Redeployments – Vehicles coming off-lease or in Rental with

useful life remaining are redeployed in the Ryder fleet (SCS, or with

another Lease customer). Redeployments exclude units transferred

into the Rental product line.

Extensions – Ryder re-prices lease contract and extends maturity

date.

Early terminations – Customer elects to terminate lease prior to

maturity. Depending on the remaining useful life, the vehicle may be

redeployed in the Ryder fleet (Commercial Rental, SCS, other

Lease customer) or sold by Ryder.



Non-GAAP Financial MeasuresThis 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, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP.

Specifically, the following non-GAAP financial measures are included in this presentation:Non-GAAP Financial Measure Comparable GAAP Measure

Reconciliation & Additional Information

Presented on Slide Titled Page

Operating Revenue Measures:

Operating Revenue Total Revenue Key Financial Statistics 8, 32

FMS Operating Revenue, DTS Operating Revenue and SCS Operating Revenue

FMS Total Revenue, DTS Total Revenue and SCS Total Revenue

Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS) and Supply Chain Solutions (SCS)

35-40

FMS EBT as a % of FMS Operating Revenue, DTS EBT as a % of DTS Operating Revenue and SCS EBT as a % of SCS Operating Revenue

FMS EBT as a % of FMS Total Revenue, DTS EBT as a % of DTS Total Revenue and SCS EBT as a % of SCS Total Revenue

Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS) and Supply Chain Solutions (SCS)

35-40

Comparable Earnings Measures:

Comparable Earnings, Comparable EPS and Comparable EPS Excluding New Lease Accounting Standard

Earnings and EPS from Continuing Operations Earnings and EPS from Continuing Operations Reconciliation

48

Comparable Earnings Before Income Tax and Comparable Tax Rate

Earnings Before Income Tax and Tax Rate Earnings and Tax Rate from Continuing Operations Reconciliation

49

Comparable EPS Forecast EPS Forecast from Continuing Operations EPS Forecast – Continuing Operations 50

Adjusted Return on Capital (ROC) and Adjusted ROC Spread

Not Applicable. However, non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average total debt and average shareholders' equity to adjusted average total capital is provided.

Adjusted Return on Capital Reconciliation 51-52

Comparable Earnings Before Interest, Taxes,

Depreciation and Amortization and Comparable

Earnings Before Interest, Taxes,

Depreciation and Amortization Forecast

Earnings from Continuing Operations Comparable EBITDA Reconciliation 54-56

Cash Flow Measures:

Total Cash Generated and Free Cash Flow Cash Provided by Operating Activities Cash Flow from Continuing Operations 57-58

Debt Measures:

Total Obligations and Total Obligations to Equity Balance Sheet Debt and Debt to Equity Debt to Equity Reconciliation 59



Earnings and EPS from Continuing Operations Reconciliation (1)

($ Millions or $ Earnings Per Share)

4Q18 4Q18 4Q17 4Q17

Earnings EPS Earnings EPS

GAAP $ 108.6 $ 2.06 $ 643.3 $ 12.12

Non-operating pension costs 3.2 0.06 4.0 0.07

Gain on sale of property — — (14.8) (0.27)

Restructuring and other charges, net 4.4 0.08 12.7 0.24

Tax reform-related and other tax adjustments, net (20.0) (0.38) (572.6) (10.79)

Comparable $ 96.2 $ 1.82 $ 72.6 $ 1.37

FY18 FY18 FY17 FY17

Earnings EPS Earnings EPS

GAAP $ 275.6 $ 5.21 $ 792.3 $ 14.90


Pension-related adjustments — — 3.3 0.06

Gain on sale of property — — (14.8) (0.27)


Goodwill impairment 15.5 0.29 — —

Tax law changes (3.0) (0.06) 1.8 0.03

Tax reform-related and other tax adjustments, net 10.0 0.19 (572.6) (10.78)

Uncertain tax position (4.4) (0.08) — —

Operating tax adjustment — — 1.7 0.03

Comparable $ 306.2 $ 5.79 $ 241.1 $ 4.53

(1) The reconciliation of the EBT and Tax Rate for these items are included on slide 49.



EBT and Tax Rate from Continuing Operations Reconciliation($ Millions or $ Earnings Per Share)

4Q18 4Q18 4Q18 FY18 FY18 FY18

EBT Tax Tax Rate EBT Tax Tax Rate

GAAP $ 111.3 $ 2.7 2.4% $ 373.9 $ 98.3 26.3%


Pension-related adjustments — — — —


Goodwill impairment — — 15.5 —

Tax law changes — — — 3.0

Tax reform-related and other tax adjustments, net — 20.0 — (10.0)

Uncertain tax position — — — 4.4

Comparable (1) $ 121.0 $ 24.8 20.5% $ 406.5 $ 100.3 24.7%

4Q17 4Q17 4Q17 FY17 FY17 FY17

EBT Tax Tax Rate EBT Tax Tax Rate

GAAP $ 78.6 $ (564.7) (718.7)% $ 314.5 $ (477.7) (151.9)%


Pension-related adjustments — — 5.5 2.2

Gain on sale of property (24.1) (9.4) (24.1) (9.4)


Tax law changes — — — (1.8)

Tax reform-related and other tax adjustments, net 23.3 595.9 23.3 595.9

Operating tax adjustment — — 2.2 0.5

Comparable (1) $ 104.3 $ 31.7 30.4% $ 370.5 $ 129.4 34.9%

(1) The comparable provision for income taxes is computed using the same methodology as the GAAP provision for income taxes. Income tax effects of non-GAAP adjustments

are calculated based on the statutory tax rates of the jurisdiction to which the non-GAAP adjustments relate.



First Quarter 2019 Full Year 2019

EPS forecast $0.71 - $0.78 $5.18 - $5.48

Non-operating pension costs, net of tax 0.09 0.36

Expiring state net operating losses 0.10 0.10

ERP implementation 0.02 0.26

Restructuring and other charges, net 0.04 0.10

Comparable EPS forecast $0.96 - $1.03 $6.00 - $6.30

Lease accounting standard (0.02) 0.20

Comparable EPS forecast - excluding new lease accounting standard $0.94 - $1.01 $6.20 - $6.50

First Quarter 2018 Full Year 2018

EPS $0.64 $5.21

Non-operating pension costs 0.01 0.09

Pension-related adjustments — —

Tax law changes — (0.06)

Tax reform-related and other tax adjustments, net 0.01 0.19

Uncertain tax position (0.06) (0.08)

Restructuring charges and fees 0.02 0.15

Goodwill impairment 0.29 0.29

Comparable EPS $0.91 $5.79

EPS from Continuing Operations Reconciliation

($ Millions or $ Earnings Per Share)



($ Millions)

Adjusted Return on Capital Reconciliation(1)

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and

average total debt and average shareholders' equity to adjusted average total capital is provided on this slide.

(2) Earnings calculated based on a 12-month rolling period.

(3) Interest expense includes interest on off-balance sheet vehicle obligations.

(4) Income taxes were calculated by excluding taxes related to comparable earnings items and interest expense.

(5) The average is calculated based on the average GAAP balances.

(6) Represents comparable earnings items for those periods.

(7) Represents the adjusted return on capital vs. cost of capital (trailing 12 months)

2008 2009 2010 2011 2012 2013

Net earnings (2) $ 200 $ 62 $ 118 $ 170 $ 210 $ 238

Restructuring and other charges, net and other items 70 30 6 6 17 -

Income taxes 150 54 61 108 91 126

Adjusted earnings before income taxes 420 146 185 284 317 363

Adjusted interest expense (3) 165 150 133 135 144 141

Adjusted income taxes (4) (230) (122) (124) (157) (167) (177)

Adjusted net earnings [A] $ 355 $ 174 $ 194 $ 262 $ 294 $ 327

Average total debt(5) $ 2,882 $ 2,692 $ 2,512 $ 3,079 $ 3,778 $ 4,015

Average off-balance sheet debt(5) 171 142 114 78 2 1

Average total shareholders' equity(5) 1,778 1,396 1,402 1,428 1,406 1,594

Average adjustments to shareholders' equity (6) 10 16 2 4 (3) (2)

Adjusted average total capital [B] $ 4,841 $ 4,245 $ 4,030 $ 4,588 $ 5,182 $ 5,608

Adjusted return on capital [A]/[B] 7.3% 4.1% 4.8% 5.7% 5.7% 5.8%

Weighted average cost of capital 6.5% 6.3% 6.1% 5.5% 4.8% 4.8%

Adjusted return on capital spread (7) 0.8% (2.2)% (1.3)% 0.2% 0.9% 1.0%



($ Millions)


2014 2015 2016 2017 20182019

Forecast

Net earnings (2) $ 218 $ 305 $ 263 $ 792 $ 273 $ 290

Restructuring and other charges, net and other items 115 18 13 28 25 25

Income taxes 118 164 142 (477) 98 105





Average total debt(5) $ 4,653 $ 5,177 $ 5,549 $ 5,360 $ 5,979 $ 7,350


Average total shareholders' equity(5) 1,926 1,895 2,053 2,207 2,874 2,605

Average adjustments to shareholders' equity (6) 8 11 2 (68) (43) 12

Adjusted average total capital [B] $ 6,589 $ 7,084 $ 7,606 $ 7,501 $ 8,813 $ 9,970


Weighted average cost of capital 4.7% 4.4% 4.3% 4.4% 4.8% 4.8%

Adjusted return on capital spread (7) 1.1% 1.4% 0.5% (0.2)% 0.1% 0.2%

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average

total debt and average shareholders' equity to adjusted average total capital is provided on this slide.






(7) Represents the adjusted return on capital vs. cost of capital (trailing 12 months). 2019 Forecast reflects impact from lease accounting change.



($ Millions)


2017 2018

FMS DTS SCS FMS DTS SCS

Net earnings (2) $ 780 $ 38 $ 72 $ 247 $ 45 $ 98

Restructuring and other charges, net and other items (25) — — (5) — —

Income taxes (467) 17 31 78 16 35





Average total debt(5) $ 5,530 $ (77) $ (84) $ 6,087 $ (90) $ 10


Average total shareholders' equity(5) 1,592 108 416 2,270 117 464

Average adjustments to shareholders' equity (6)(140) — — (153) — —

Adjusted average total capital [B] $ 6,984 $ 362 $ 528 $ 8,206 $ 391 $ 689


(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average

total debt and average shareholders' equity to adjusted average total capital is provided on this slide.






(7) Represents the adjusted return on capital vs. cost of capital (trailing 12 months)



($ Millions)

Comparable EBITDA Reconciliation(1)

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of earnings before income taxes from

continuing operations to comparable earnings before income taxes from continuing operations is provided on this slide.

Three months ended December 31,

Twelve months ended December 31,

2018 20172019

Forecast 2018 2017

Earnings from continuing operations $ 108.6 $ 643.3 $ 290.0 $ 275.6 $ 792.3

Provision for income taxes 2.7 (564.7) 105.0 98.3 (477.7)

Earnings before income taxes from continuing operations 111.3 78.6 395.0 373.9 314.5

Non-operating pension costs 4.3 6.9 26.0 7.5 27.7

ERP implementation — — 18.0 — —

Restructuring and other charges, net 5.4 19.7 7.0 9.6 21.4

Goodwill impairment — — — 15.5 —

Pension-related adjustments — — — — 5.5

Operating tax adjustment — — — — 2.2

Tax reform-related and other tax adjustments, net — 23.3 — — 23.3

Gain on sale of property — (24.1) — — (24.1)

Comparable earnings before income taxes 121.0 104.3 446.0 406.5 370.5

Interest expense 51.0 35.8 260.0 178.6 140.3

Depreciation 366.5 322.4 1,600.0 1,395.0 1,255.2

Losses from used vehicle fair value adjustments 14.6 11.6 67.0 53.7 58.1

Amortization 2.0 1.5 7.0 7.6 5.8

Comparable EBITDA $ 555.2 $ 475.6 $ 2,380.0 $ 2,041.4 $ 1,829.9



($ Millions)Comparable EBITDA Reconciliation(1)



Appendix: Non-GAAP Financial Measures


2010 2011 2012 2013

Earnings from continuing operations 124.6 171.4 200.7 243.3

Provision for income taxes 61.7 108.0 102.1 125.7

Earnings before income taxes from continuing operations 186.3 279.4 302.8 369.0


Restructuring and other charges, net — 3.7 8.1 (0.5)

Pension lump sum settlement expense — — — —

Pension-related adjustments — — — 2.8

Acquisition-related tax adjustment — — — —

Superstorm Sandy vehicle-related (recoveries) losses — — 8.2 (0.6)

Foreign currency translation benefit — — — (1.9)

Acquisition transaction costs 4.1 2.1 0.4 —

International gain on sale (0.9) — — —

Comparable earnings before income taxes 216.0 303.8 350.9 391.1

Interest expense 130.0 133.2 140.6 140.5

Depreciation 833.8 872.3 939.7 967.2

Losses from used vehicle fair value adjustments 16.4

Amortization 3.6 8.8 8.4 7.9

Comparable EBITDA 1,183.4 1,318.0 1,439.5 1,523.1



($ Millions)Comparable EBITDA Reconciliation(1)



Appendix: Non-GAAP Financial Measures


2014 2015 2016

Earnings from continuing operations 220.2 306.0 265.2

Provision for income taxes 118.0 163.2 142.0

Earnings before income taxes from continuing operations 338.3 469.2 407.3

Non-operating pension costs 5.5 17.8 29.9

Restructuring and other charges, net 3.4 18.1 5.1

Pension lump sum settlement expense 97.2 — —

Pension-related adjustments 12.6 (0.5) 7.7

Acquisition-related tax adjustment 1.8 — —

Superstorm Sandy vehicle-related (recoveries) losses — — —

Foreign currency translation benefit — — —

Acquisition transaction costs — — —

International gain on sale — — —

Comparable earnings before income taxes 458.7 504.6 449.9

Interest expense 144.7 150.4 147.8

Depreciation 1,047.0 1,122.0 1,187.1

Losses from used vehicle fair value adjustments 10.8 18.0 67.4

Amortization 6.9 6.8 5.8

Comparable EBITDA 1,668.2 1,801.7 1,858.1



($ Millions)

Cash Flow Reconciliation

12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014

Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 $ 1,160 $ 1,252 $ 1,383

Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 235 337 413 452 497

Collections of Direct Finance Leases(1) 62 62 72 71 66

Other, net(1) 3 — — 8 (1)

Total Cash Generated 1,328 1,442 1,645 1,783 1,944

Capital Expenditures (1), (2) (1,070) (1,699) (2,133) (2,123) (2,259)

Free Cash Flow (3) $ 258 $ (257) $ (488) $ (340) $ (315)

Memo:

Depreciation Expense (4) $ 808 $ 863 $ 944 $ 967 $ 1,047

Net cash used in financing activities 78 504 438 347 312

Net cash used in investing activities (982) (1,657) (1,635) (1,604) (1,705)



(3) Non-GAAP financial measure. We refer to the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and

acquisitions) from continuing operations as “free cash flow”. We calculate free cash flow as the sum of net cash provided by operating activities and net cash provided by the

sale of revenue earning equipment and operating property and equipment, collections on direct finance leases and other cash inflows from investing activities, less purchases of

property and revenue earning equipment.

(4) Includes adjustment to reclassify losses from fair value adjustments on our used vehicles to “Gains on Used Vehicles, Net”.



($ Millions)

Cash Flow Reconciliation

12/31/2015 12/31/2016 12/31/2017 12/31/201812/31/2019 Forecast

Cash Provided by Operating Activities from Continuing Operations $ 1,442 $ 1,601 $ 1,548 $ 1,635 $ 2,045

Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 427 421 429 396 450

Collections of Direct Finance Leases (1) 71 77 73 75 85

Other, net (1) — — — — —

Total Cash Generated 1,940 2,099 2,050 2,106 2,580

Capital Expenditures (1), (2) (2,668) (1,905) (1,860) (3,050) (3,700)

Free Cash Flow (3) $ (728) $ 194 $ 190 $ (944) $ (1,120)

Memo:

Depreciation Expense (4) $ 1,187 $ 1,187 $ 1,255 $ 1,395 $ 1,600

Net cash provided by (used in) financing activities 731 (186) (155) 1,093 1,100

Net cash used in investing activities (2,161) (1,406) (1,366) (2,746) (3,165)



(3) Non-GAAP financial measure. We refer to the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and

acquisitions) from continuing operations as “free cash flow”. We calculate free cash flow as the sum of net cash provided by operating activities and net cash provided by the

sale of revenue earning equipment and operating property and equipment, collections on direct finance leases and other cash inflows from investing activities, less purchases of

property and revenue earning equipment.

(4) Includes adjustment to reclassify losses from fair value adjustments on our used vehicles to “Gains on Used Vehicles, Net”.



($ Millions)

Debt to Equity Reconciliation(1)

12/31/2009% to

Equity 12/31/2010% to

Equity 12/31/2011% to

Equity

Debt $ 2,498 175% $ 2,747 196% $ 3,382 257%

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 119 100 64

Total Obligations (2) $ 2,617 183% $ 2,847 230% $ 3,446 261%

(1) The debt to equity metric was not revised in years prior to 2012 to reflect the change in accounting treatment of certain sale-leaseback transactions as debt.

(2) For years beginning in 2012, sale-leaseback transactions that were previously accounted for as off-balance sheet are now included in GAAP balance sheet

debt. The Company does not reconcile total obligations to equity for these years as this metric is the same as the debt to equity metric.

Note: Amounts may not recalculate due to rounding.



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