2014 Annual Meeting of Shareholders May 14, 2014 Naples, FL
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 that relate to future events, as opposed to past or current events. Forward-looking statements are based on the then-current expectations, forecasts and assumptions of our management 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 annual report on Form 10-K for the year ended December 31, 2013 entitled “Risk Factors” and “Cautionary Note Regarding Forward - Looking Statements.” Copies of these reports are available from the Securities and Exchange Commission, our website or our Investor Relations department. 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 this presentation, 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 purchasers 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 annual and quarterly reports described above. 1
Safe Harbor Statement Certain statements made within this presentation contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Any forward-looking information relayed in this presentation speaks only as of May 14, 2014, and the Company undertakes no obligation to update that information to reflect changed circumstances. Additional information concerning these statements is contained in the Risk Factors and Forward-Looking Statements sections of the Company’s 2013 Form 10-K. Copies of these filings are available from the SEC, the Hertz web site or the Company’s Investor Relations department. 2
Disclosure on Financials in Presentation Amounts shown in this presentation, unless otherwise indicated, are for Hertz Global Holdings, Inc., (HGH), the ultimate parent company of The Hertz Corporation (THC). GAAP and non-GAAP profitability metrics for THC, the wholly owned operating subsidiary, are different from those of HGH. During 2006, the results of HGH and THC varied primarily due to the $1.0 billion loan facility on the books of HGH which was repaid with the proceeds from HGH’s initial public offering. In 2007, THC had lower total expenses than HGH primarily due to $2.0 million of secondary offering costs incurred at the HGH level. In 2009, 2010, 2011, 2012, and 2013 HGH also had interest expense relating to the 5.25% Convertible Senior Notes issued in May 2009, as well as debt extinguishment costs related to the early conversion of a portion of the Convertible Senior Notes during the third quarter of 2013. Other minor differences in the various profit metrics for HGH and THC, presented on both a GAAP and non-GAAP basis, exist relating to additional audit fees and interest income relating to additional cash on had at the HGH level. This presentation includes the non-GAAP financial measures of adjusted pre-tax income and Corporate EBITDA. Refer to our presentation slides filed with the SEC on March 20, 2014 for definitions and reconciliations of these non-GAAP financial measures. 3
TRANSFORMING HERTZ Investment Proposition Diverse, Superior Culture of Advanced Accelerating Global Growth Operational Technology Cash Flow Portfolio Strategies Excellence Leader Generation 4
Diverse, A Market Leader with the Global Portfolio Most Diversified Offering Worldwide Worldwide Rental Car Equipment Rental Revenue Revenue Leasing/ Airport Off-Airport Fleet Mgmt Construction Industrial Fragmented Revenue Revenue Revenue Revenue Revenue Revenue 5
Transaction Summary Tax-free separation Separation of Two RAC Focus – Primarily cash generation and growth Strong HERC Focus – Growth and cost reduction through cycle Companies Distinct strategies and investment profiles Pure Play Tailored capital structures Valuations Board replaces prior buyback authorization with new $1B plan $1B Share Rental car target leverage ratio of 2.5x-3.5x allows for potential Repurchase ongoing capital return to shareholders Program Transaction Unlocks Significant Value for Shareholders 6
Separation Benefits - Equipment Rental “New” HERC Pure play company Resources aligned with growth strategies Increased reporting Optimizes capital structure Separation transparency Consolidation opportunities Benefits Attract more focused investor Enhanced management focus base Key Segments / End Construction Industrial Fragmented Markets Revenue Revenue Revenue 7
Separation Benefits - Rental Car Hertz Rental Car “Post Separation” Pure play company More stable cash generation Separation Increased reporting transparency Greater capacity to return cash Benefits to shareholders Leader in consolidated industry Best-in-class financial profile Key + HCM Segments Leasing/ / End Off-Airport Fleet Mgmt Airport Revenue Revenue Markets Revenue 8
Superior Growth Strategies Rental Car Strategic Revenue Drivers Rental Car Vehicle Rental Car Off Airport Leasing Leisure Segment Insurance Replacement Technology 9
Superior Growth Strategies HERC Strategic Revenue Drivers Brand Equipment Market Expansion Rental Penetration Non-res Franchise & JV Construction expansion Recovery N.A. Rev. Mix FY:13 FY:06 Constr. 38% 52% Industrial 26% 18% Fragmented 36% 30% Latin America, Middle East, Asia Now Positioned to Stand Alone as Best-in-Class 10
Cash Flow Acceleration Improved Profit Better Capital & Margin Management Revenue Growth Asset Light Technology-led Fleet Management Expansion Franchising Lean Six Sigma Improved Balance Sheet 11
TRANSFORMING HERTZ Investment Proposition Diverse, Superior Culture of Advanced Accelerating Global Growth Operational Technology Cash Flow Portfolio Strategies Excellence Leader Generation 12
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