Ryder System, Inc. Wolfe Trahan & Co Presentation

855 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
855
On SlideShare
0
From Embeds
0
Number of Embeds
54
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ryder System, Inc. Wolfe Trahan & Co Presentation

  1. 1. RYDER SYSTEM, INC.Presented to:Wolfe Trahan GlobalTransportation ConferenceMay 25, 2011Art GarciaEVP & CFO
  2. 2. Safe HarborCertain statements and information included in this presentation are "forward-looking statements" under the FederalPrivate Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluatedwith consideration given to the many risks and uncertainties inherent in our business that could cause actual resultsand events to differ materially from those in the forward-looking statements. Important factors that could cause suchdifferences include, among others, a slowdown of the economic recovery and decreases in freight demand, our abilityto obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economicconditions, uncertainty or decline in economic and market conditions affecting contractual lease demand, decreases inmarket demand in the commercial rental market and the sale of used vehicles, competition from other serviceproviders, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions(SCS) business segment, unexpected reserves or write-offs due to the deterioration of the credit worthiness orbankruptcy of customers, changes in financial, tax or regulatory requirements or changes in customers’ businessenvironments that will limit their ability to commit to long-term vehicle leases, a decrease in credit ratings, increaseddebt costs resulting from volatile financial markets, inability to achieve planned synergies and customer retention levelsfrom acquisitions, labor strikes or work stoppages affecting our or our customers’ business operations, driver shortagesand increasing driver costs, adequacy of accounting estimates, reserves and accruals particularly with respect topension, taxes, insurance and revenue, a decline in pension plan returns, changes in obligations relating to multi-employer plans, sudden or unusual changes in fuel prices, our ability to manage our cost structure, new accountingpronouncements, rules or interpretations, changes in government regulations, adverse impacts of recently enactedregulations regarding vehicle emissions, any unanticipated or unrealized effects of the recent Japan earthquake andtsunami on our operations, customers and vehicle suppliers and the risks described in our filings with the Securities andExchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is notpossible 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 aresult of new information, future events, or otherwise. 05/11/11 Proprietary and Confidential 2
  3. 3. Ryder Profile Fleet Management Dedicated Contract Supply Chain Solutions Carriage Solutions Full Year 2010 Revenue (1) $5.1 Billion Operating Revenue (1) $4.2 Billion Comparable Earnings Before Income Taxes (1) $189 Million Comparable Earnings (1) $117 Million Free Cash Flow (1) $258 Million Assets $6.7 Billion Assets Under Customer Leases $3.6 Billion Vehicles Maintained 182,100 Employees 25,900 (1) These amounts result from continuing operations. 05/11/11 Proprietary and Confidential 3
  4. 4. Fleet Management Solutions: Product and Services Overview Fleet Management Solutions Commercial Contract Full Service Rental Maintenance Lease Thousands of clean,  Flexible package of  Custom vehicle Fleet Support Contract-Related mechanically-sound maintenance and specifications Services Maintenance commercial vehicles fleet support  State-of-the-art for short-term services preventive  Insurance  Ancillary customer needs  Vehicles are owned maintenance  Fuel maintenance work Lease support by our clients or  Comprehensive  Safety on Ryder or under third-party package of fleet  Regulatory reporting customer owned finance lease support services vehicles not contract included in base contract13,200 Lease/Maintenance Customers (U.S., Canada, U.K.) Supply Chain Solutions 05/11/11 Proprietary and Confidential 4
  5. 5. Dedicated Contract Carriage: Product and Services Overview Dedicated Contract Carriage  Turnkey transportation service with drivers, vehicles, maintenance, routing & scheduling, management & administrative support150 Customers (North America, U.K.) 05/11/11 Proprietary and Confidential 5
  6. 6. Supply Chain Solutions:Product and Services Overview Supply Chain Solutions Professional Services Distribution Management Dedicated Transportation Management Strategic consulting & decision  Order fulfillment  Dedicated  Freight procurement & contract support  Warehouse and distribution center Contract Carriage management Solutions engineering operations  Shipment planning and execution Network modeling & optimization  Inbound materials management  Freight brokerage Total landed cost  Outbound product support  Freight bill audit and payment Lean Six Sigma  Reverse logistics  Origin/destination services  Vendor managed inventory  Kitting, packaging & assembly Supported by: IT Solutions  Transportation & warehouse management systems  Inventory & shipment visibility tools  Network optimization tools 470 Customers (North America, Asia) 05/11/11 Proprietary and Confidential 6
  7. 7. Market Overview The transportation and logistics markets present significant growth opportunities. Current estimated market sizes are as follows: Market Segment Market Size Lease and rental market (outsourced) – U.S., Canada, U.K. 0.8 million vehicles Private fleet market (non-outsourced) – U.S., Canada 4.2 million vehicles Dedicated contract carriage market (outsourced) – U.S. $13 billion Supply chain logistics market (outsourced) – North America and Asia $260 billionNote: Vehicle market shown is class 3-8Sources: Truck Rental and Leasing Association, R.L. Polk, Monitor Group, A.T. Kearney 05/11/11 Proprietary and Confidential 7
  8. 8. Fleet Management Solutions:Macro Trends Favoring FMS actual forecast 11.3% CAGRSource: ACT Research Source: Global Insight Deferred replacements have lead to record fleet aging which should lead to increases in truck sales and leasing in the coming years 05/11/11 Proprietary and Confidential 8
  9. 9. Fleet Management Solutions:Macro Trends Favoring FMS Access to Capital Bank Capital Requirements Capital Customers likely to utilize alternative financing sources (e.g., OEM captive finance, Full Service Lease and Fleet Management) 05/11/11 Proprietary and Confidential 9
  10. 10. Fleet Management Solutions:Macro Trends Favoring FMS EPA 2007 EPA 2010 $ Increasing complexity and costs are expected to favor outsourcing vehicle financing and maintenance 05/11/11 Proprietary and Confidential 10
  11. 11. Key Leading IndicatorsThe key leading indicators for Ryder’s business are improving.First quarter results included: Commercial Rental: Utilization (a) 72.5%, up 390 bps vs. prior year Pricing (a) up 12% from prior year Fleet Count (Average) up 11% over prior year Used Vehicle Pricing: Tractors up 42% over prior year; up 9% over 4Q10 Trucks up 44% over prior year; up 7% over 4Q10 Lease: Miles per Unit (b) up 3% from prior year Early Lease Terminations (c) down 33% from prior year Dedicated/Supply Chain Solutions: Volumes overall volumes improving (a) Global power units (b) U.S. power units (c) U.S. 05/11/11 Proprietary and Confidential 11
  12. 12. Summary► Benefiting from upturn in transactional businesses and acquisitions► Lease fleet stabilizing - managing through impact of fleet aging► Focus on driving long-term contractual revenue growth in all segments through strong customer retention and new business development, growth initiatives and strategic investments► Ongoing process improvements and cost savings available► Each of Ryder’s businesses operate in very large markets► Market trends play favorably into long-term outsourcing decisions (increasing complexity/cost of vehicle technology, emissions standards, credit availability, complex and changing global supply chains, etc.)► Strong balance sheet, cash flow and liquidity position Ryder is well positioned for success coming out of severe downturn with a lower cost structure, well-aligned fleet, strong balance sheet, strong market position and competitive posture, solid value proposition and significant growth opportunities 05/11/11 Proprietary and Confidential 12
  13. 13. Questions & AnswersArt GarciaEVP & CFO

×