Ryder 2006 3Q Earnings Conference Call

Third Quarter 2006
Earnings Conference Call

October 25, 2006

Safe Harbor

Certain statements and information included in this presentation are quot;forward-looking statementsquot; under
the Federal Private Securities Litigation Reform Act of 1995. 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 forward-
looking 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 (SCS) business segment, our failure to successfully implement
sales growth initiatives in our FMS business segment, unexpected reserves or write-offs due to the
deterioration of the credit worthiness or bankruptcy of certain customers in our SCS business segment,
changes in financial, tax or regulatory requirements or changes in customers’ business environments that
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, the effect of severe weather events, labor strikes
or work stoppages affecting our or our customers’ business operations, adequacy of accounting
estimates and accruals particularly with respect to pension, taxes and revenue, changes in general
economic conditions, sudden changes in fuel prices, availability of qualified drivers, our ability to manage
our cost structure, new accounting pronouncements, rules or interpretations, changes in government
regulations including regulations regarding vehicle emissions 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.

2

Contents

► Third Quarter 2006 Results Overview
► Asset Management Update
► Earnings Outlook
►Q & A

3

3rd Quarter Results Overview

► Earnings per diluted share were $1.06, up 8% from $0.98 in 3Q05

– 3Q06 includes $0.06 related to pension accounting charge

► Comparable earnings per diluted share were $1.12, up 14% from $0.98 in 3Q05

► Total revenue up 9% and operating revenue up 7% reflecting growth in all business
segments

► Fleet Management Solutions (FMS) total revenue up 5% and operating revenue up
3% vs. prior year

– Full service lease revenue increased 4%

– Contract maintenance revenue up 10%

– Commercial rental revenue down 1%

► FMS net before tax earnings (NBT) up 1%

– FMS NBT percent of operating revenue down 30 basis points to 13.8%

► FMS earnings positively impacted by improved lease and contract maintenance
results, partially offset by higher sales & marketing and other compensation-related
costs
4

3rd Quarter Results Overview (cont’d)

► Supply Chain Solutions (SCS) total revenue up 19% (and operating revenue up 18%) vs.
prior year, reflecting higher volumes, new / expanded business and increased managed
subcontracted transportation

► SCS net before tax earnings (NBT) up 54%

– SCS NBT percent of operating revenue up 130 basis points to 5.5%

► SCS earnings positively impacted by higher volumes, and new and expanded business

► Dedicated Contract Carriage (DCC) total revenue up 5% (and operating revenue up 5%)
vs. prior year; increase due to new and expanded business as well as higher fuel costs
passed through to customers

► DCC net before tax earnings (NBT) up 27%

– DCC NBT percent of operating revenue up 150 basis points to 8.3%

► DCC earnings positively impacted by revenue growth from new and expanded business
as well as lower safety costs

5

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

2006 2005 % B/(W)
(1)(2)
Operating Revenue $ 1,139.6 $ 1,068.5 7%
Fuel Services and Subcontracted Transportation Revenue 480.9 422.1 14%
Total Revenue $ 1,620.5 $ 1,490.6 9%

Earnings Per Share $ 1.06 $ 0.98 8%
(1)
Earnings Per Share Excluding Pension Charge $ 1.12 $ 0.98 14%

Memo:
Average Shares (Millions) - Diluted 61.7 64.5
Tax Rate 39.2% 40.0%

(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(2)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales
activity. Fuel services revenue net of related intersegment billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the
operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of
steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is largely a pass through to
customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation.

6

Key Financial Statistics
($ Millions, Except Per Share Amounts)
Year-to-Date

2006 2005 % B/(W)
(1)(2)
Operating Revenue $ 3,308.2 $ 3,125.0 6%
Fuel Services and Subcontracted Transportation Revenue 1,404.4 1,071.1 32%
Total Revenue $ 4,712.6 $ 4,196.1 12%

Earnings Per Share $ 2.97 $ 2.60 14%
(1)
Earnings Per Share Excluding Tax Changes and Pension Charge $ 2.91 $ 2.48 17%

Memo:
EPS Impact of Tax Changes $ 0.11 $ 0.12
EPS Impact of Pension Charge $ (0.06) $ -
Average Shares (Millions) - Diluted 61.7 64.8
Tax Rate 37.1% 36.1%
(1)
Adjusted Return on Capital 8.0% 7.7%

(1)
(2)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales
activity. Fuel services revenue net of related intersegment billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the
operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of
steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is largely a pass through to
customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation.
7

Business Segment
($ Millions)
Third Quarter
Mem o: Total Revenue
2006 2005 % B/(W) 2006 2005 % B/(W)
(1)
Operating Revenue :
Fleet Managem ent Solutions $ 750.1 $ 728.6 3% $ 1,060.0 $ 1,010.8 5%
Supply Chain Solutions 299.1 254.3 18% 513.8 433.4 19%
Dedicated Contract Carriage 140.7 134.6 5% 146.4 139.0 5%
Elim inations (50.3) (49.0) (3)% (99.7) (92.6) (8)%
Total $ 1,139.6 $ 1,068.5 7% $ 1,620.5 $ 1,490.6 9%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 103.7 $ 102.6 1%
Supply Chain Solutions 16.4 10.6 54%
Dedicated Contract Carriage 11.7 9.2 27%
Elim inations (8.6) (8.2) (4)%
123.2 114.2 8%
Central Support Services (Unallocated Share) (9.8) (9.1) (8)%
(1)
Earnings Before Restructuring and Incom e Taxes 113.4 105.1 8%
Restructuring and Other (Charges)/Recoveries,
Net and Pension Charge (2) (6.0) 0.4 NA
Earnings Before Incom e Taxes 107.4 105.5 2%
Provision for Incom e Taxes (42.1) (42.2) -

Net Earnings $ 65.3 $ 63.3 3%

(1)
Net Earnings Excluding Pension Charge $ 68.8 $ 63.3 9%

(1)

Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and the pension charge; however, the applicable portion of the
(2)

restructuring and other (charges)/recoveries, net and the pension charge that related to each segment was as follows: FMS - ($6.0) and $0.4 in 2006 and 2005, respectively. 8

Business Segment
($ Millions)
Year-to-Date
Mem o: Total Revenue
2006 2005 % B/(W) 2006 2005 % B/(W)
Operating Revenue (1):
Fleet Managem ent Solutions $ 2,179.7 $ 2,141.3 2% $ 3,090.7 $ 2,905.0 6%
Supply Chain Solutions 862.8 741.6 16% 1,485.4 1,155.1 29%
Dedicated Contract Carriage 413.3 389.2 6% 428.6 400.8 7%
Elim inations (147.6) (147.1) - (292.1) (264.8) (10)%
Total $ 3,308.2 $ 3,125.0 6% $ 4,712.6 $ 4,196.1 12%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 273.5 $ 262.4 4%
Supply Chain Solutions 45.1 25.4 77%
Dedicated Contract Carriage 31.4 24.8 27%
Elim inations (24.6) (23.3) (6)%
325.4 289.3 12%
Central Support Services (Unallocated Share) (28.4) (26.7) (6)%
(1)
Earnings Before Restructuring and Incom e Taxes 297.0 262.6 13%

Restructuring and Other (Charges)/Recoveries, Net
and Pension Charge (2) (5.8) 0.6 NA
Earnings Before Incom e Taxes 291.2 263.2 11%
Provision for Incom e Taxes (108.1) (95.1) (14)%

Net Earnings $ 183.1 $ 168.1 9%

Net Earnings Excluding Tax Changes and Pension Charge (1) $ 179.9 $ 160.5 12%

(1)

Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and the pension charge; however, the applicable portion of the
(2)

restructuring and other (charges)/recoveries, net and the pension charge that related to each segment was as follows : FMS - ($5.9) and SCS - $0.1 in 2006 and FMS - $0.5 and
SCS - $0.1 in 2005. 9

Capital Expenditures
($ Millions)

Year-to-Date

2006 $
2006 2005 O/(U) 2005
Full Service Lease $ 1,020 $ 843 $ 177
Commercial Rental 190 245 (55)
Operating Property and Equipment 53 59 (6)
Gross Capital Expenditures 1,263 1,147 116

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 257 252 5
Net Capital Expenditures $ 1,006 $ 895 $ 111

Memo: Acquisitions $ 4 $ 15 $ (11)

10

Cash Flow
($ Millions)
Year-to-Date

2006 2005
Net Earnings $ 183.1 $ 168.1
Depreciation 549.6 556.3
Gains on Vehicle Sales, Net (38.8) (38.1)
Amortization and Other Non-Cash Charges, Net 21.9 6.1
Changes in Working Capital and Deferred Taxes (104.2) (221.6)
Cash Provided by Operating Activities 611.6 470.8

Proceeds from Sales (Primarily Revenue Earning Equipment) 256.9 252.6
Collections of Direct Finance Leases 51.3 49.7
Other Investing, Net 2.1 -
(1)
Total Cash Generated 921.9 773.1

(2)
Capital Expenditures (1,171.6) (1,105.8)
Acquisitions (4.1) (15.1)
(1)
Free Cash Flow $ (253.8) $ (347.8)

(1) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures
(2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment
11

Debt to Equity Ratio
($ Millions)
300%

(1)
250% Total Obligations to Equity
200% Balance Sheet Debt to Equity

150%

100%

50%

0%
12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 9/30/06 Long
Term
Target
(2)
Midpoint

9/30/06 12/31/05 9/30/05
Balance Sheet Debt $ 2,632.2 $ 2,185.4 $ 2,218.3
160% 143% 137%
Percent To Equity
(1)
$ 2,723.8 $ 2,302.4 $ 2,363.7
Total Obligations
(1)
166% 151% 146%
Percent To Equity

Total Equity $ 1,645.4 $ 1,527.5 $ 1,616.9

Note: Includes impact of accumulated net pension related equity charge of $221 million as of 9/30/06 and 12/31/05, and $189 million as of 9/30/05.

(1) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures.
(2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating.
12

Contents

►Q & A

13

Asset Management Update

► The overall number of used vehicles sold in the third quarter was
4,952; down 4% compared with prior year
– Retail vehicles sold were down 2% vs. prior year period

► Retail sales proceeds per unit were up 7% on tractors and down
4% on trucks in the third quarter compared with prior year

► Vehicles no longer earning revenue are 5,702; down 1,527 or 21%
vs. prior year driven primarily by a lower used truck center
inventory
– 3,393 of these units are held for sale at the used truck centers

► Commercial rental fleet is flat year-over-year and down 3% from
planned fleet levels

Note: U.S. only
14

Contents

►Q & A

15

Earnings Outlook
($ Earnings Per Share)

► Our full year 2006 earnings forecast, including the tax changes
and pension charge, is now $4.01 to $4.06 per share.

Full Year

Prior EPS Forecast $ 3.89 - 3.99
Forecast Increase 0.07 - 0.02
Current EPS Forecast Excl. Tax Changes & Pension Charge 3.96 - 4.01
Tax Changes 0.11 - 0.11
Pension Charge (0.06 - 0.06)
Current EPS Forecast $ 4.01 - 4.06

► Current quarterly forecast for EPS is as follows:

4th Quarter

2006 EPS Forecast $ 1.05 - 1.10

16

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Asset Management

Financial Indicators Forecast

Non-GAAP Financial Measures & Reconciliations

18

Fleet Management Solutions (FMS)
($ Millions)
Third Quarter

2006 2005 % B/(W)
$ 464.3 $ 447.4 4%
Full Service Lease
37.3 34.0 10%
Contract Maintenance
49.3 47.6 4%
Contract-related Maintenance
181.5 183.4 (1)%
Commercial Rental
17.7 16.2 9%
Other
(a)
750.1 728.6 3%
Operating Revenue
309.9 282.2 10%
Fuel Services Revenue
$ 1,060.0 $ 1,010.8 5%
Total Revenue

$ 103.7 $ 102.6 1%
Segment Net Before Tax Earnings (NBT)
9.8% 10.1%
Segment NBT as % of Total Revenue
(a)
13.8% 14.1%
Segment NBT as % of Operating Revenue

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS
business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market
fuel prices, is excluded from the operating revenue computation as fuel is largely a pass-through to customers for which the
Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be
positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer
pricing for fuel services is established based on market fuel costs.
19

Fleet Management Solutions (FMS)
($ Millions)
Year-to-Date

2006 2005 % B/(W)
$ 1,375.8 $ 1,334.6 3%
Full Service Lease
104.0 101.9 2%
Contract Maintenance
144.4 143.5 1%
Contract-related Maintenance
502.3 511.0 (2)%
Commercial Rental
53.2 50.3 6%
Other
(a)
2,179.7 2,141.3 2%
Operating Revenue
911.0 763.7 19%
Fuel Services Revenue
$ 3,090.7 $ 2,905.0 6%
Total Revenue

$ 273.5 $ 262.4 4%
8.9% 9.0%
(a)
12.5% 12.3%

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS
business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market
fuel prices, is excluded from the operating revenue computation as fuel is largely a pass-through to customers for which the
Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be
positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer
pricing for fuel services is established based on market fuel costs.
20

Supply Chain Solutions (SCS)
($ Millions)
Third Quarter
2006 2005 % B/(W)
U.S. Operating Revenue
$ 122.8 $ 114.5 7%
Automotive & Industrial
74.6 63.0 18%
High Tech & Consumer Industries
7.9 6.3 26%
Transportation Management
205.3 183.8 12%
93.8 70.5 33%
International Operating Revenue
(a)
299.1 254.3 18%
Operating Revenue
214.7 179.1 20%
Subcontracted Transportation
$ 513.8 $ 433.4 19%
Total Revenue

$ 16.4 $ 10.6 54%

3.2% 2.4%
(a)
5.5% 4.2%

$ 26.6 $ 23.8 (12)%
Memo: Fuel Costs

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment
and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating revenue as
subcontracted transportation is largely a pass-through to customers. The Company realizes minimal changes in profitability as a result of
fluctuations in subcontracted transportation.
21

Supply Chain Solutions (SCS)
($ Millions)
Year-to-Date
2006 2005 % B/(W)
$ 367.9 $ 332.9 11%
Automotive & Industrial
217.8 182.1 20%
High Tech & Consumer Industries
22.5 18.6 21%
Transportation Management
608.2 533.6 14%
254.6 208.0 23%
International Operating Revenue
(a)
862.8 741.6 16%
Operating Revenue
622.6 413.5 51%
$ 1,485.4 $ 1,155.1 29%
Total Revenue

$ 45.1 $ 25.4 77%

3.0% 2.2%
(a)
5.2% 3.4%

$ 79.3 $ 66.5 (19)%
Memo: Fuel Costs

(a)
22

Dedicated Contract Carriage (DCC)
($ Millions)
Third Quarter

2006 2005 % B/(W)

(a)
$ 140.7 $ 134.6 5%
Operating Revenue
5.7 4.4 30%
$ 146.4 $ 139.0 5%
Total Revenue

$ 11.7 $ 9.2 27%
8.0% 6.6%
(a)
8.3% 6.8%

$ 27.8 $ 24.9 (12)%
Memo: Fuel Costs

(a)
23

Dedicated Contract Carriage (DCC)
($ Millions)
Year-to-Date

2006 2005 % B/(W)

(a)
$ 413.3 $ 389.2 6%
Operating Revenue
15.3 11.6 31%
$ 428.6 $ 400.8 7%
Total Revenue

$ 31.4 $ 24.8 27%
7.3% 6.2%
(a)
7.6% 6.4%

$ 80.4 $ 67.7 (19)%
Memo: Fuel Costs

(a)
24

Central Support Services (CSS)
($ Millions)
Third Quarter

2006 2005 % B/(W)

$ 39.3 $ 40.1 2%
Allocated CSS Costs
9.8 9.1 (8)%
Unallocated CSS Costs
$ 49.1 $ 49.2 -
Total CSS Costs

25

Central Support Services (CSS)
($ Millions)
Year-to-Date

2006 2005 % B/(W)

$ 114.4 $ 120.7 5%
Allocated CSS Costs
28.4 26.7 (6)%
Unallocated CSS Costs
$ 142.8 $ 147.4 3%
Total CSS Costs

26

Balance Sheet
($ Millions)

September 30, December 31,
2006 2005
Cash and Cash Equivalents $ 128.1 $ 128.7
Other Current Assets 1,249.8 1,035.1
Revenue Earning Equipment, Net 4,303.9 3,794.4
Operating Property and Equipment, Net 497.5 486.8
Other Assets 548.9 588.3
Total Assets $ 6,728.2 $ 6,033.3

Short-Term Debt / Current Portion Long-Term Debt $ 389.3 $ 269.4
Other Current Liabilities 1,044.6 984.0
Long-Term Debt 2,242.9 1,916.0
Other Non-Current Liabilities 1,406.0 1,336.4
Shareholders' Equity 1,645.4 1,527.5
Total Liabilities and Shareholders' Equity $ 6,728.2 $ 6,033.3

27

(a)
Asset Management Update

YTD01 YTD02 YTD03 YTD04 YTD05 YTD06

6,000

5,409

4,914
5,000

4,412

3,890
3,875 3,800
3,950
3,810
4,000
3,631
3,436
3,184
3,071
2,863 3,020
2,819 2,819
3,000

2,179

2,026
2,000

1,172 1,202
1,142
1,090
837
1,000
723

0

Early Terminations (b)
Redeployments Extensions Early Replacements

(a) U.S. only
(b) Excludes early terminations where customer purchases vehicle
28

(1)
Financial Indicators Forecast
($ Millions)
Total Cash Generated (2) Gross Capital Expenditures
$1,398
$1,783
$1,263 Revenue Earning Equipment
$1,183
$1,078
$1,054 PP&E/Other $1,411
$1,289
$949
$1,165
$835

$725
$657 $600

2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006
Forecast Forecast
Midpoint Midpoint
Memo: Free Cash Flow (2)

(270) 131 367 260 140 (231)(3) (300)
(2)
Total Obligations to Equity Ratio

275% Equity
234% Total Obligations (2)
201%
159%
151%
Significant and predictable cash generation
146%
129%
Invest in growth
Increase assets under management
2000 2001 2002 2003 2004 2005 2006
Forecast Increase financial leverage
Midpoint
Memo: Assets Under Management
7,030 6,928 6,626 6,751 7,301 7,534 7,900

Free Cash Flow and Debt to Equity include acquisitions. Gross Capital Expenditures exclude acquisitions.
(1)

(2)

29
Includes $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period matters.
(3)

(a)
Assets Under Management
($ Millions)

Forecast
Midpoint
(b)
2000 2001 2002 2003 2004 2005 2006

Revenue Earning Equipment $4,587.7 $4,147.3 $4,493.6 $5,809.1 $6,352.4 $6,657.4 $7,200.0

Direct Finance Leases 637.4 640.0 622.2 655.6 649.1 624.3 500.0

Operating Leases 1,804.9 2,140.3 1,510.6 286.2 299.5 251.8 200.0

Assets Under Management $7,030.0 $6,927.6 $6,626.4 $6,750.9 $7,301.0 $7,533.5 $7,900.0

(a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder.
(b) Excludes impact of foreign exchange movements in 2006.

30

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:

Reconciliation & Additional Information
Non-GAAP Financial Measure Comparable GAAP Measure Presented on Slide Titled Page

EPS / Net Earnings Excluding Tax Changes and EPS / Net Earnings Appendix - EPS and Net Earnings 32
Pension Charge Reconciliation

Operating Revenue Total Revenue Key Financial Statistics 6-7

Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 8-9

Adjusted Return on Capital Net Earnings Appendix - Adjusted Return on Capital 33
Reconciliation

Total Cash Generated / Free Cash Flow Cash Provided by Operating Activities Appendix - Cash Flow Reconciliation 34 - 35

Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Appendix - Debt to Equity Reconciliation 36 - 37

FMS / SCS / DCC Operating Revenue and Segment FMS / SCS / DCC Total Revenue and Segment NBT Fleet Management Solutions / Supply Chain 19 -24
NBT as % of Operating Revenue as % of Total Revenue Solutions / Dedicated Contract Carriage

31

EPS and Net Earnings Reconciliation
($ Millions or
$ Earnings Per Share)

3Q06 - 3Q06 - YTD06 - YTD06 -
Net Earnings EPS Net Earnings EPS*

Net Earnings $ 65.3 $ 1.06 $ 183.1 $ 2.97

Excluding Tax Changes and Pension Charge 3.5 0.06 (3.2) (0.05)

Net Earnings Excluding Tax Changes and
Pension Charge $ 68.8 $ 1.12 $ 179.9 $ 2.91

YTD05 - YTD05 -
Net Earnings EPS

Net Earnings $ 168.1 $ 2.60

Excluding Tax Change (7.6) (0.12)

Net Earnings Excluding Tax Change $ 160.5 $ 2.48

* Earnings per share amounts are calculated independently for each component and may not be additive due to rounding.
32

Adjusted Return on Capital Reconciliation
($ Millions)

9/30/06 9/30/05
(1)
Net Earnings $ 241.9 $ 230.8
Discontinued Operations (1.7) -
Cumulative Effect of Changes in Accounting Principles 2.4 -
Income Taxes 142.4 118.3
Adjusted Earnings Before Income Taxes 385.0 349.1
(2)
Adjusted Interest Expense 140.4 120.8
(3)
Adjusted Income Taxes (202.8) (181.9)
Adjusted Net Earnings $ 322.6 $ 288.0

Average Total Debt $ 2,349.6 $ 2,035.3
Average Off-Balance Sheet Debt 110.4 160.4
(4)
Average Adjusted Total Shareholders' Equity 1,577.4 1,530.6
Adjusted Average Total Capital $ 4,037.4 $ 3,726.3

(5)
Adjusted Return on Capital 8.0% 7.7%

Earnings calculated based on a 12-month rolling period.
(1)

Interest expense includes implied interest on off-balance sheet vehicle obligations.
(2)

Income taxes were calculated using the effective income tax rate for the period exclusive of tax benefits recognized through September 30, 2006 and 2005.
(3)

Represents shareholders’ equity adjusted for discontinued operations, accounting changes and the tax benefits in those periods.
(4)

The Company adopted adjusted return on capital, a non GAAP financial measure, as the Company believes that both debt (including off-balance sheet debt) and equity should be
(5)

included in evaluating how effectively capital is utilized across the business.

Note: Prior year has been restated to conform with current year presentation

33

Cash Flow Reconciliation
($ Millions)
12/31/00 (4) 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 9/30/05 9/30/06

Cash Provided by Operating Activities $ 1,023 $ 365 $ 617 $ 803 $ 867 $ 779 $ 471 $ 612
Less: Changes in Balance of Trade Receivables Sold (270) 235 110 - - - - -
Collections of Direct Finance Leases 67 66 66 61 64 70 50 51
230 173 152 210 331 334 252 257
Proceeds from Sales (Primarily Revenue Earning Equipment)

Other Investing, Net 4 (4) 4 4 1 - - 2
(1)
Total Cash Generated 1,054 835 949 1,078 1,263 1,183 773 922

Capital Expenditures (2) (1,296) (704) (582) (734) (1,092) (1,399) (1,106) (1,172)
Proceeds from Sale and Leaseback of Assets - - - 13 118 - - -
Acquisitions (28) - - (97) (149) (15) (15) (4)
(3)
Free Cash Flow $ (270) $ 131 $ 367 $ 260 $ 140 $ (231) $ (348) $ (254)

Memo:
Depreciation Expense $ 580 $ 545 $ 552 $ 625 $ 706 $ 740 $ 556 $ 550
Gains on Vehicle Sales, Net $ 19 $ 12 $ 14 $ 16 $ 35 $ 47 $ 38 $ 39

The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance.
(1)

Management believes total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of
revenue earning equipment, sales of operating property and equipment, collections on direct finance leases and other cash inflows.
Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.
(2)

The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management
(3)

believes free cash flow provides investors with an important perspective on the cash available for debt service and shareholders after making capital investments required to support
ongoing business operations. The calculation of free cash flow may be different from the calculation used by other companies and therefore comparability may be limited.
Amounts have not been recasted to give effect for the impact of foreign exchange movements on cash for which the impact is not expected to be significant.
(4)
34

Cash Flow Reconciliation
($ Millions)

Forecast
Midpoint
12/31/06
Cash Provided by Operating Activities $ 973
Collections of Direct Finance Leases 65
Proceeds from Sales (Primarily Revenue Earning Equipment) 360
Total Cash Generated 1,398

Capital Expenditures (1) (1,694)
Acquisitions (4)
Free Cash Flow (2) $ (300)

Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.
(1)

The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative
(2)

operating performance. Management believes free cash flow provides investors with an important perspective on the cash available for debt service and
shareholders after making capital investments required to support ongoing business operations. The calculation of free cash flow may be different from
the calculation used by other companies and therefore comparability may be limited.

35

Debt to Equity Reconciliation
($ Millions)

% to % to % to % to % to % to % to % to
12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 9/30/05 Equity 9/30/06 Equity

Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143% $2,218 137% $2,632 160%

Receivables Sold 345 110 - - - - - -

PV of minimum
lease payments
and guaranteed
residual values
under operating
leases for vehicles 879 625 370 153 161 117 146 92

PV of contingent
rentals under
securitizations 209 441 311 - - - - -

Total Obligations (1) $3,450 275% $2,885 234% $2,233 201% $1,969 146% $1,944 129% $2,302 151% $2,364 146% $2,724 166%

(1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet
financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to investors
as they are more complete measures of the Company’s existing financial obligations and help investors better assess the Company’s overall
leverage position.
Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as
off-balance sheet debt.
36

Debt to Equity Reconciliation
($ Millions)

Forecast
Midpoint % to
12/31/06 Equity

Balance Sheet Debt $ 2,608 154%

PV of minimum lease payments and
guaranteed residual values under
operating leases for vehicles 80

(1)
Total Obligations $ 2,688 159%

(1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain
off-balance sheet financial obligations relating to revenue earning equipment. Management believes these non-GAAP
financial measures are useful to investors as they are more complete measures of the Company’s existing financial
obligations and help investors better assess the Company’s overall leverage position.

37

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