Hertz Global Holdings, Inc. Morgan Stanley Laguna Conference NYSE: HTZ September 14, 2016
Forward-Looking Statements Certain statements contained in this presentation are “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements give our current expectations or forecasts of future events and our future performance and do not relate directly to historical or current events or our historical or current performance. Most of these statements contain words that identify them as forward looking, such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “seek”, “will”, “may”, “opportunity”, “target” or other words t hat relate to future events, as opposed to past or current events. Forward-looking statements are based on the expectations, forecasts and assumptions of our management as of the date of the Public Disclosure and involve risks and uncertainties, some of which are outside of our control, that could cause actual outcomes and results to differ materially from current expectations. For some of the factors that could cause such differences, please see the sections of our quarterly report on Form 10-Q for the quarter ended June 30, 2016 entitled “Risk Factors” and “Cautionary Note Regarding Forward - Looking Statements.” Copies of this report are available from the Securities and Exchange Commission (“SEC”), on our website or through our Investor Relations department. The financial information contained in this presentation is a compilation of information that has previously been disclosed by us in various SEC filings and press releases (a “Public Disclosure”). The financial information in this presentation speaks only as of the date it was previously disclosed in a Public Disclosure, and we are not updating it in this presentation. We cannot assure you that the assumptions under any of the forward-looking statements will prove accurate or that any projections will be realized. We expect that there will be differences between projected and actual results. These forward-looking statements speak only as of the date of the Public Disclosure, and we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We caution prospective investors not to place undue reliance on forward-looking statements. All forward- looking statements attributable to us are expressly qualified in their entirety by the cautionary statements contained herein and in our quarterly report described above. 2
Disclosure on Financials in Presentation Hertz Global Holdings, Inc. (“HGH”) is the ultimate parent company of The Hertz Corporation (“THC”, “Company,” “we,” “us” and “our”). GAAP and non -GAAP profitability metrics for THC, the wholly owned operating subsidiary, are materially the same as those for HGH. The Company has three reportable segments as follows: • U.S. Rental Car (“U.S. RAC”) - rental of vehicles (cars, crossovers and light trucks), as well as ancillary products and services, in the United States and consists of the Company’s United States operating segment; • International Rental Car (“International RAC”) - rental and leasing of vehicles (cars, vans, crossovers and light trucks), as well as ancillary products and services, internationally and consists of the Company’s Europe and Other International operating segments, which are aggregated into a reportable segment based primarily upon similar economic characteristics, products and services, customers, delivery methods and general regulatory environments; • All Other Operations - includes the Company’s Donlen operating segment which provides vehicle leasing and fleet management services and is not considered a separate reportable segment in accordance with applicable accounting standards, together with other business activities. In addition to the above reportable segments, the Company has corporate operations (“Corporate”) which includes general corporate assets and expenses and certain interest expense (including net interest on non-vehicle debt). Hertz Global RAC is defined as the combination of the U.S. and International segments. Hertz Global is defined as Hertz Global RAC, Donlen and Corporate. Amounts shown in this presentation, unless otherwise indicated, are for Hertz Global. 3
Hertz Global RAC Investment Highlights Market Leader within Consolidated Industry Geographically Diversified Global Network World Class Brands Targeting Distinct Segments of Market Full Potential Plan 1 – Adjusted Corporate EBITDA Margin Target 16%-18% Industry Savvy and Experienced Leadership Team Potential for Driving Industry Improvement Emerging Mobility Trends Create Opportunity 1 Full potential Adjusted Corporate EBITDA margin target 2018-2020 4
Attractive Financial Attributes Strong Free Cash Flow Generation Liquid Fleet Assets with Embedded Equity Largely Discretionary Non-fleet Capex Highly Variable Cost Structure Significant Tax Assets (NOLs) Resulting in Low Cash Taxes Strong Balance Sheet and Liquidity Position with No Significant Near-Term Corporate Maturities and Access to ABS Market Full Potential Plan of $810 million of EBITDA Improvement (Midpoint) 5
Key Accomplishments Integration Headquarters Fleet refresh HERC Improving IT systems relocation separation customer upgrade satisfaction Started upgrade Completed HQ relocation Successfully Reverse spin-off 2Q16: Net of the entire IT Dollar-Thrifty completed Nov. executed largest completed Promoter Score infrastructure, (“NPS”) increased systems 2015 fleet refresh in June 2016 systems and integration company history across all brands; applications Hertz brand rose to record high On track On track 6
Full Potential Plan Targets 16%-18% Margin 1 Winning with Leading on Cost 1 2 Technology and Quality Deliver on technology and Drive cost position and service systems that enhance quality to industry leadership customer experience and through operational excellence reduce cost Delivering Revenue Excellence 3 Win customer preference and Drive excellence in core revenue loyalty through clearly defined performance by reinvigorating go to and positioned brands supported market execution and targeting by consistent, well-tailored and growth opportunities in enhanced differentiated service model products and services 1 Full potential Adjusted Corporate EBITDA margin target 2018-2020 7
Perspectives on Risk Considerations • Industry has historically offset with pricing increases Residual Value • Future purchases will be lower cost (average in / out) • Benefit of alternate disposition channels • Pricing Industry over-fleeting dynamics showing signs of improvement • Management experience • Economic Cycle Ability to de-fleet, releasing equity and de-levering in down cycle • Business model flexibility • Targeting leverage range of 2.5x – 3.5x year end Capital Structure / • No material non-vehicle debt maturities until 2020 1 Leverage • Ongoing access to ABS market to fund fleet • Ride-sharing use case – little impact from ride-sharing to date Mobility • Rental car core competence creates opportunities 1. Pro forma for (i) the issuance by THC of $800 million aggregate principal amount of 5.50% Senior Notes due 2024 on September 22, 2016 and (ii) the redemption by THC of $800 million aggregate principal amount of 6.75% Senior Notes due 2019 on October 8, 2016. 8
Full Potential is Achievable It’s within our control We have a proven potential Focused on initiatives we We have the can execute vs. aspirations Right team around industry conduct We are proving our capability for execution Low end of the range and realizing potential achievable with reasonable realization of initiatives Team with proven No company specific within our control expertise implementing constraints to these types of changes improved margins Improved industry Combination of dynamics would provide upside opportunity fresh talent and 2015 and YTD 2016 is deeply experienced an early demonstration industry leaders of execution capabilities 9
Q&A
Key Definitions Net income before net interest expense, income taxes, Adjusted Corporate EBITDA depreciation (which includes revenue earning equipment lease charges) and amortization as adjusted for car rental fleet interest, car rental fleet depreciation, car rental debt- related charges, and for certain other charges such as non- cash stock-based employee compensation restructuring and restructuring related costs; equipment rental spin-off costs; impairments and asset write-downs; acquisition costs, integration costs, relocation costs and other extraordinary, unusual or non-recurring items. The ratio of Adjusted Corporate EBITDA to Adjusted Corporate EBITDA Margin total revenues. 11
Key Definitions A reconciliation of the non-GAAP measures discussed in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States appears within the supplemental schedules that have been filed with the Securities and Exchange Commission and are available on the Company’s website at http://ir.hertz.com/events - presentations. 12
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