Pursuing Profitable Growth. Presented to: Merrill Lynch Global Transportation Conference

Transcription

1 Pursuing Profitable Growth Presented to: Merrill Lynch Global Transportation Conference Greg Swienton Chairman and CEO June 8, 2005

2 Safe Harbor Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of Accordingly, these 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 forwardlooking statements. Important factors that could cause such differences include, among others, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions segment, the possibility that changes in customers business environments will limit their ability to commit to long-term vehicle leases, changes in market conditions affecting the commercial rental market or the sale of used vehicles, increased competition from vehicle manufacturers and large service providers, higher borrowing costs and possible decreases in available funding sources caused by adverse changes in debt ratings, changes in accounting assumptions, adequacy of accounting accruals, changes in general economic conditions, availability of heavy- and medium duty vehicles, increases in fuel prices, availability of qualified drivers, the Company s ability to create operating synergies in connection with its acquisitions, our ability to manage our cost structure and changes in government regulations, including regulations regarding vehicle emissions, drivers hours of service and security regulations issued by the Department of Homeland Security. 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 risks factors or to assess the impact of such risks on the Company s business. Accordingly, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 2

3 Ryder Profile Fleet Management Solutions Dedicated Contract Carriage Supply Chain Solutions Full Year 2004 Revenue $5.2 Billion Earnings Before Income Taxes $331 Million Total Assets $5.6 Billion Assets Under Customer Leases $3.1 Billion Vehicles 164,400 Employees 26,300 3

4 FMS Overview Fleet Management Solutions Commercial Rental Full Service Leasing Finance Leasing Contract Maintenance Fleet Support Services Thousands of clean, mechanically-sound commercial vehicles for short-term customer needs Custom vehicle specifications State-of-the-art preventive maintenance Comprehensive package of fleet support services Flexible, third-party vehicle financing offered in conjunction with Programmed Maintenance Flexible package of maintenance and fleet support services on vehicles owned by our clients or under Finance Leasing Used vehicle sales Insurance Fuel Safety Parts Backhaul capabilities Sample Clients: 15,000 FSL/Maintenance Customers 4

5 DCC Overview Dedicated Contract Carriage Turnkey transportation service with drivers, vehicles, routing & scheduling, management & administrative support Sample Clients: 225 Customers 5

6 SCS Overview Supply Chain Solutions Lead Logistics Management Professional Services Supply chain strategy Solutions engineering Transportation consulting Program management Distribution Operations Warehousing and distribution center operations Inbound product supply Outbound product support Reverse logistics Value-added services Kitting Packaging Sub-assembly Refurbishment Transportation Solutions Procurement Shipment planning and execution Freight bill audit and payment Global trade services Dedicated solutions Sample Clients: Transportation & warehouse management systems Data & order management Supported by: IT Solutions Inventory visibility tools Network optimization tools 400 Customers 6

7 Market Overview The transportation and logistics markets present significant growth opportunities. Current estimated market sizes are as follows: Market Segment U.S. lease and rental outsourced market U.S. private fleet market U.S. dedicated contract carriage market Global supply chain logistics market Market Size $25 billion $56 billion $8 billion $200 billion Sources: Truck Rental and Leasing Association, R.L. Polk, Monitor Group 7

8 Building on Successes & Creating Opportunities F U T U R E 2005 & Beyond 2004 Driving Growth hoperating costs reduction target $9-$13M Accelerating Profitable Growth: Transactional/Acquisitions hoperating costs reduced $20M Deliver Organic Revenue Growth; Continue to Realize Earnings Leverage Demonstrate Earnings Leverage Through Profitable Growth G R O W T H Positioning for Long-Term, Sustainable Profitable Growth hoperating costs reduced $37M Cost Management & Continuous Improvement hoperating costs reduced $167M during Deliver a Cost Competitive Solution Set Which Creates Value for our Stakeholders Institutionalize an On-going Cost Management and Process Improvement Culture Building the Foundation 8

9 Company Earnings Earnings Before Income Taxes $ Millions (1) 2005 Forecast (2) EPS Before Cumulative Effect of Accounting Changes $ Per Share (3) 2005 Forecast (4) (1) 2004 includes $24 million gain on sale of headquarters complex. (2) 2005 Forecast is $348 - $359 million. $353 million is presented as the midpoint within the Forecast range. (3) 2004 includes $0.23 gain on sale of headquarters complex and $0.14 net tax benefit. (4) 2005 Forecast is $ $3.40 per share. $3.35 is presented as the midpoint within the Forecast range. 9

10 Summary Business model largely transformed and ready to take to market Ongoing process improvements and cost savings available Primary focus is on driving revenue growth in all segments through: Strong customer retention and new business development Accelerating growth initiatives Strategic investments to facilitate growth Each of Ryder s businesses operate in very large markets Market trends play favorably into outsourcing decision (heavy vehicle replacement cycle, engine technology changes, new emissions standards, hours of service rules, lengthening of global supply chain, etc.) Significant earnings leverage available through profitable growth 10

11 Questions & Answers Greg Swienton Chairman and CEO 11

12 Appendix Non-GAAP Financial Measures 12

13 Appendix: 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 management believes that presentation of the non-gaap financial measure provides useful information to investors. 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 EPS / Net Earnings Excluding Headquarters Complex Sale EPS / Net Earnings Excluding Headquarters Sale and Net Tax Benefit EPS / Net Earnings EPS / Net Earnings Appendix - Net Earnings and EPS Reconciliation Appendix - Net Earnings and EPS Reconciliation 13

14 Appendix: Non-GAAP Financial Measures ($ Millions) Net Earnings and EPS Reconciliation FY FY Net Earnings EPS Net Earnings $ $ 3.28 Less: Gain on Sale of Headquarters Complex, After Tax Net Earnings Excluding Headquarters Complex Sale Less: Net Tax Benefit Net Earnings Excluding Headquarters Complex Sale and Net Tax Benefit $ $

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