2. 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, 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
3. Contents
► Second Quarter 2006 Results Overview
► Asset Management Update
► Earnings Outlook
►Q & A
3
4. 2nd Quarter Results Overview
► Earnings per diluted share were $1.13, up 15% from $0.98 in 2Q05
– 2Q06 and 2Q05 included $0.11 and $0.12 income tax benefit, respectively
► Comparable earnings per diluted share were $1.02, up 19% from $0.86 in 2Q05
► Total revenue up 15% and operating revenue up 6% reflecting growth in all business
segments
► Fleet Management Solutions (FMS) total revenue up 8% and operating revenue up
2% vs. prior year
– Full service lease revenue increased 3%
– Commercial rental revenue down 2%; higher pricing partially offsetting lower fleet count
► FMS net before tax earnings (NBT) up 7%
– FMS NBT percent of operating revenue up 60 basis points to 13.0%
► FMS earnings positively impacted by improved North American lease and rental
results, partially offset by higher compensation related costs in North America and
lower margins in the U.K. business
4
5. 2nd Quarter Results Overview (cont’d)
► Supply Chain Solutions (SCS) total revenue up 34% (and operating revenue up 17%) vs.
prior year, reflecting increased managed subcontracted transportation, higher volumes,
and new and expanded business
► SCS net before tax earnings (NBT) up 117%
– SCS NBT percent of operating revenue up 290 basis points to 6.2%
– SCS NBT percent of operating revenue would be 5.3% excluding $2.5 million contract termination
benefit
► SCS earnings positively impacted by higher volumes, and new and expanded business
► Dedicated Contract Carriage (DCC) total revenue up 7% (and operating revenue up 7%)
vs. prior year; increase due to higher fuel costs passed through to customers as well as
expanded and new business
► DCC net before tax earnings (NBT) up 16%
– DCC NBT percent of operating revenue up 60 basis points to 8.0%
► DCC earnings positively impacted by revenue growth from new and expanded business
► Central Support Services costs unchanged from prior year
– 2Q06 included a $1.3 million charge associated with a discontinued operation
5
6. Key Financial Statistics
($ Millions, Except Per Share Amounts)
Second Quarter
2006 2005 % B/(W)
(1)(2)
Operating Revenue $ 1,111.1 $ 1,048.8 6%
Fuel Services and Subcontracted Transportation Revenue 484.6 341.0 42%
Total Revenue $ 1,595.7 $ 1,389.8 15%
Earnings Per Share $ 1.13 $ 0.98 15%
(1)
Earnings Per Share Excluding Tax Changes $ 1.02 $ 0.86 19%
Memo:
EPS Impact of Tax Changes $ 0.11 $ 0.12
Average Shares (Millions) - Diluted 62.0 64.7
Tax Rate 32.8% 30.1%
(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
7. Key Financial Statistics
($ Millions, Except Per Share Amounts)
Year-to-Date
2006 2005 % B/(W)
(1)(2)
Operating Revenue $ 2,168.6 $ 2,056.4 5%
Fuel Services and Subcontracted Transportation Revenue 923.4 649.0 42%
Total Revenue $ 3,092.0 $ 2,705.4 14%
Earnings Per Share $ 1.91 $ 1.61 19%
(1)
Earnings Per Share Excluding Tax Changes $ 1.80 $ 1.50 20%
Memo:
EPS Impact of Tax Changes $ 0.11 $ 0.12
Average Shares (Millions) - Diluted 61.7 64.9
Tax Rate 35.9% 33.6%
(1)
Adjusted Return on Capital 8.0% 7.7%
(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.
7
8. Business Segment
($ Millions)
Second Quarter
Mem o: Total Revenue
2006 2005 % B/(W) 2006 2005 % B/(W)
Operating Revenue (1):
Fleet Managem ent Solutions $ 730.1 $ 719.3 2% $ 1,049.5 $ 969.6 8%
Supply Chain Solutions 291.3 249.2 17% 502.1 374.9 34%
Dedicated Contract Carriage 139.1 129.8 7% 143.5 133.8 7%
Elim inations (49.4) (49.5) - (99.4) (88.5) (12)%
Total $ 1,111.1 $ 1,048.8 6% $ 1,595.7 $ 1,389.8 15%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 94.9 $ 88.9 7%
Supply Chain Solutions 18.1 8.3 117%
Dedicated Contract Carriage 11.2 9.7 16%
Elim inations (8.3) (7.5) (11)%
115.9 99.4 17%
Central Support Services (Unallocated Share) (11.3) (9.0) (26)%
(1)
Earnings Before Restructuring and Incom e Taxes 104.6 90.4 16%
Restructuring and Other Recoveries, Net - 0.1 NA
Earnings Before Incom e Taxes 104.6 90.5 15%
Provision for Incom e Taxes (34.3) (27.2) (26)%
Net Earnings $ 70.3 $ 63.3 11%
(1)
Net Earnings Excluding Tax Changes $ 63.5 $ 55.7 14%
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(1)
8
9. 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 $ 1,429.6 $ 1,412.7 1% $ 2,030.6 $ 1,894.2 7%
Supply Chain Solutions 563.6 487.3 16% 971.6 721.7 35%
Dedicated Contract Carriage 272.6 254.6 7% 282.2 261.8 8%
Elim inations (97.2) (98.2) 1% (192.4) (172.3) (12)%
Total $ 2,168.6 $ 2,056.4 5% $ 3,092.0 $ 2,705.4 14%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 169.8 $ 159.8 6%
Supply Chain Solutions 28.7 14.8 94%
Dedicated Contract Carriage 19.6 15.5 26%
Elim inations (16.0) (15.0) (7)%
202.1 175.1 15%
Central Support Services (Unallocated Share) (18.5) (17.5) (5)%
(1)
Earnings Before Restructuring and Incom e Taxes 183.6 157.6 17%
Restructuring and Other Recoveries, Net 0.2 0.2 NM
Earnings Before Incom e Taxes 183.8 157.8 16%
Provision for Incom e Taxes (65.9) (53.0) (24)%
Net Earnings $ 117.9 $ 104.8 12%
(1)
Net Earnings Excluding Tax Changes $ 111.1 $ 97.2 14%
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(1)
9
10. Capital Expenditures
($ Millions)
Year-to-Date
2006 $
2006 2005 O/(U) 2005
Full Service Lease $ 598 $ 537 $ 61
Commercial Rental 189 243 (54)
Operating Property and Equipment 28 41 (13)
Gross Capital Expenditures 815 821 (6)
Less: Proceeds from Sales 180 171 9
Net Capital Expenditures $ 635 $ 650 $ (15)
Memo: Acquisitions $ 4 $ 15 $ (11)
10
11. Free Cash Flow
($ Millions)
Year-to-Date
2006 2005
$ 117.9 $ 104.8
Net Earnings
361.6 368.2
Depreciation
(27.8) (25.9)
Gains on Vehicle Sales, Net
9.6 4.9
Amortization and Other Non-Cash Charges, Net
(163.0) (287.2)
Changes in Working Capital and Deferred Taxes
298.3 164.8
Cash Provided by Operating Activities
(1)
(776.1) (779.4)
Capital Expenditures
(4.1) (14.7)
Acquisitions
179.6 170.6
Proceeds from Sales (Primarily Revenue Earning Equipment)
33.8 33.4
Collections of Direct Finance Leases
1.6 -
Other Investing, Net
(2)
$ (266.9) $ (425.3)
Free Cash Flow
(1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment
(2) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures
11
12. 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 6/30/06 Long
Term
Target
(2)
Midpoint
6/30/06 12/31/05 6/30/05
Balance Sheet Debt $ 2,489.1 $ 2,185.4 $ 2,223.5
151% 143% 143%
Percent To Equity
(1)
$ 2,577.9 $ 2,302.4 $ 2,369.1
Total Obligations
(1)
156% 151% 152%
Percent To Equity
Total Equity $ 1,648.2 $ 1,527.5 $ 1,557.0
Note: Includes impact of accumulated net pension related equity charge of $221 million as of 6/30/06 and 12/31/05, and $189 million as of 6/30/05.
(1) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures.
(2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating.
12
13. Capital Expenditures Outlook
($ Millions)
► Strong new lease sales activity driving higher expected full year 2006
capital spending.
► No material change in replacement lease capital forecast.
Prior Forecast Current Forecast
Full Service Lease - Growth $ 120 - 205 $ 310 - 395
Full Service Lease - Replacement 1,110 1,130
Total Full Service Lease 1,230 - 1,315 1,440 - 1,525
Commercial Rental 220 200
Operating Property and Equipment 100 100
Gross Capital Expenditures 1,550 - 1,635 1,740 - 1,825
Less: Proceeds from Sales 380 360
Net Capital Expenditures $ 1,170 - 1,255 $ 1,380 - 1,465
(1)
Free Cash Flow $ (90) - (170) $ (260) - (340)
(1)
Total Obligations to Equity 139 - 143% 157 - 162%
► Increased capital spending would largely impact 2007 lease revenue and earnings.
– No material change to 2006 lease revenues due to timing of sales activity and vehicle
delivery times.
(1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
13
14. Ryder Cash & Growth Equation Outlook
Cash Capital Expenditures
Significant and predictable cash generation … Investing in equipment replacement and growth …
Variance
vs. Plan
On Plan $1.8 + 0.2 B
$0.1
$1.4
$B $1.3 $B $1.4
$1.2 $1.3
$0.1
UVS (a) $0.4 $0.1
$0.3 Property &
$0.3
Equipment
Operating
Cash Flow (b) Revenue
Earning
Equipment
2004 2005 2006 2004 2005 2006
Midpoint
Free Cash Variance
Flow (d) vs. Plan
$(221) MM (c)
$140 MM $(300) MM
- 0.2 B
Net income, depreciation & used
Growth Exceeding 2006 Plan
vehicles driving cash
(a) Used vehicles sales proceeds
(b) Includes cash from operations plus collection of direct finance leases
(c) Includes $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period matters.
(d) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
14
15. Ryder Cash & Growth Equation Outlook
Assets Under Management Earnings Before Income Taxes
Driving growth in Assets Under Management Driving income growth and a strong balance
(AUM) … sheet
Earnings
Variance 20.8% Forecast
vs. Plan $400
$7.9 Above
+ 0.2 B $ MM
8.2% Plan
$B
$357
$7.5 $331
$7.3
2004 2005 2006 2004 2005 2006
Midpoint
Total Obligations
129% 151% 159%
/ Equity % (a)
Driving Growth
AUM is Growth Engine
Well Positioned for 2007
(a) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
15
16. Contents
► Second Quarter 2006 Results Overview
► Asset Management Update
► Earnings Outlook
►Q & A
16
17. Asset Management Update
► The overall number of used vehicles sold in the second quarter
was 5,375; down 6% compared with prior year
– Retail vehicles sold were up 1% vs. prior year period
► Retail sales proceeds per unit were up 4% on tractors and down
1% on trucks in the second quarter compared with prior year
► Vehicles no longer earning revenue are 5,758; down 1,717 or 23%
vs. prior year driven primarily by a lower UTC inventory
– 3,410 of these units are held for sale at the used truck centers
► Commercial rental fleet down 1,867 units or 5% from prior year as
planned
Note: U.S. only
17
18. Contents
► Second Quarter 2006 Results Overview
► Asset Management Update
► Earnings Outlook
►Q & A
18
19. Earnings Outlook
($ Earnings Per Share)
► Increasing our full year 2006 earnings forecast which, including
the $0.11 tax benefit, is now $4.00 to $4.10 per share.
Full Year
Prior EPS Forecast $ 3.82 - 3.97
Forecast Increase 0.07 - 0.02
Current EPS Forecast Excluding Tax Benefit 3.89 - 3.99
Tax Benefit 0.11 - 0.11
Current EPS Forecast $ 4.00 - 4.10
► Current quarterly forecast for EPS is as follows:
3rd Quarter 4th Quarter
2006 EPS Forecast $ 1.05 - 1.10 $ 1.05 - 1.10
19
21. Appendix
Business Segment Detail
Central Support Services
Balance Sheet
Asset Management
Financial Indicators Forecast
Non-GAAP Financial Measures & Reconciliations
21
22. Fleet Management Solutions (FMS)
($ Millions)
Second Quarter
2006 2005 % B/(W)
$ 460.1 $ 445.4 3%
Full Service Lease
34.0 34.5 (1)%
Contract Maintenance
47.8 47.9 -
Contract-related Maintenance
170.8 174.9 (2)%
Commercial Rental
17.4 16.6 5%
Other
(a)
730.1 719.3 2%
Operating Revenue
319.4 250.3 28%
Fuel Services Revenue
$ 1,049.5 $ 969.6 8%
Total Revenue
$ 94.9 $ 88.9 7%
Segment Net Before Tax Earnings (NBT)
9.0% 9.2%
Segment NBT as % of Total Revenue
(a)
13.0% 12.4%
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.
22
23. Fleet Management Solutions (FMS)
($ Millions)
Year-to-Date
2006 2005 % B/(W)
$ 911.5 $ 887.2 3%
Full Service Lease
66.8 67.9 (2)%
Contract Maintenance
95.1 95.9 (1)%
Contract-related Maintenance
320.8 327.6 (2)%
Commercial Rental
35.4 34.1 4%
Other
(a)
1,429.6 1,412.7 1%
Operating Revenue
601.0 481.5 25%
Fuel Services Revenue
$ 2,030.6 $ 1,894.2 7%
Total Revenue
$ 169.8 $ 159.8 6%
Segment Net Before Tax Earnings (NBT)
8.4% 8.4%
Segment NBT as % of Total Revenue
(a)
11.9% 11.3%
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.
23
24. Supply Chain Solutions (SCS)
($ Millions)
Second Quarter
2006 2005 % B/(W)
U.S. Operating Revenue
$ 125.6 $ 112.6 12%
Automotive & Industrial
74.4 61.1 22%
High Tech & Consumer Industries
7.7 6.2 25%
Transportation Management
207.7 179.9 15%
U.S. Operating Revenue
83.6 69.3 21%
International Operating Revenue
(a)
291.3 249.2 17%
Operating Revenue
210.8 125.7 68%
Subcontracted Transportation
$ 502.1 $ 374.9 34%
Total Revenue
$ 18.1 $ 8.3 117%
Segment Net Before Tax Earnings (NBT)
3.6% 2.2%
Segment NBT as % of Total Revenue
(a)
6.2% 3.3%
Segment NBT as % of Operating Revenue
$ 27.8 $ 22.4 (24)%
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.
24
25. Supply Chain Solutions (SCS)
($ Millions)
Year-to-Date
2006 2005 % B/(W)
U.S. Operating Revenue
$ 245.1 $ 218.4 12%
Automotive & Industrial
143.2 119.1 20%
High Tech & Consumer Industries
14.6 12.3 18%
Transportation Management
402.9 349.8 15%
U.S. Operating Revenue
160.7 137.5 17%
International Operating Revenue
(a)
563.6 487.3 16%
Operating Revenue
408.0 234.4 74%
Subcontracted Transportation
$ 971.6 $ 721.7 35%
Total Revenue
$ 28.7 $ 14.8 94%
Segment Net Before Tax Earnings (NBT)
3.0% 2.1%
Segment NBT as % of Total Revenue
(a)
5.1% 3.0%
Segment NBT as % of Operating Revenue
$ 52.7 $ 42.7 (23)%
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.
25
26. Dedicated Contract Carriage (DCC)
($ Millions)
Second Quarter
2006 2005 % B/(W)
(a)
$ 139.1 $ 129.8 7%
Operating Revenue
4.4 4.0 10%
Subcontracted Transportation
$ 143.5 $ 133.8 7%
Total Revenue
$ 11.2 $ 9.7 16%
Segment Net Before Tax Earnings (NBT)
7.8% 7.2%
Segment NBT as % of Total Revenue
(a)
8.0% 7.4%
Segment NBT as % of Operating Revenue
$ 27.5 $ 22.2 (24)%
Memo: Fuel Costs
(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC 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.
26
27. Dedicated Contract Carriage (DCC)
($ Millions)
Year-to-Date
2006 2005 % B/(W)
(a)
$ 272.6 $ 254.6 7%
Operating Revenue
9.6 7.2 32%
Subcontracted Transportation
$ 282.2 $ 261.8 8%
Total Revenue
$ 19.6 $ 15.5 26%
Segment Net Before Tax Earnings (NBT)
7.0% 5.9%
Segment NBT as % of Total Revenue
(a)
7.2% 6.1%
Segment NBT as % of Operating Revenue
$ 52.5 $ 42.8 (23)%
Memo: Fuel Costs
(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC 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.
27
28. Central Support Services (CSS)
($ Millions)
Second Quarter
2006 2005 % B/(W)
$ 37.9 $ 40.1 6%
Allocated CSS Costs
11.3 9.0 (26)%
Unallocated CSS Costs
$ 49.2 $ 49.1 -
Total CSS Costs
28
32. Financial Indicators Forecast (1)
Free Cash Flow (2) ($ Millions) Gross Capital Expenditures ($ Millions)
2000
500
$1,783
366 PPE
260
Other $1,411
1500
140 $1,289
126 Rental
$1,165
Lease
1000
0
$725
$657 $600
500
(221)
(270) (300)
(500) 0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2002 2003 2004 2005 (3) 2006
Forecast Forecast
Midpoint Midpoint
Debt to Equity Ratio
300%
275%
250% 234%
201%
200% (2)
Total Obligations to Equity
159%
151%
146% Balance Sheet Debt to Equity
150% 129%
100%
50%
0%
2000 2001 2002 2003 2004 2005 2006
Forecast
Midpoint
Free Cash Flow and Debt to Equity include acquisitions. Gross Capital Expenditures exclude acquisitions.
(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(2)
Includes $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period matters.
(3)
32
33. Assets Under Management (a)
($ Millions)
Forecast
(b)
2006 2005 2004
Revenue Earning Equipment $ 7,200.0 $ 6,657.4 $ 6,352.4
Direct Finance Leases 500.0 624.3 649.1
Operating Leases 200.0 251.8 299.5
Assets Under Management $ 7,900.0 $ 7,533.5 $ 7,301.0
(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.
33
34. 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:
EPS / Net Earnings Excluding Tax Changes EPS / Net Earnings Appendix - EPS and Net Earnings 35
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 36
Reconciliation
Free Cash Flow Cash Provided by Operating Activities Appendix - Free Cash Flow Reconciliation 37 - 38
Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Appendix - Debt to Equity Reconciliation 39 - 40
FMS / SCS / DCC Operating Revenue and Segment FMS / SCS / DCC Total Revenue and Segment NBT Fleet Management Solutions / Supply Chain 22 - 27
NBT as % of Operating Revenue as % of Total Revenue Solutions / Dedicated Contract Carriage
34
35. EPS and Net Earnings Reconciliation
($ Millions or
$ Earnings Per Share)
2Q06 - 2Q06 - YTD06 - YTD06 -
Net Earnings EPS Net Earnings EPS
Net Earnings $ 70.3 $ 1.13 $ 117.9 $ 1.91
Less: Tax Changes 6.8 0.11 6.8 0.11
Net Earnings Excluding Tax Changes $ 63.5 $ 1.02 $ 111.1 $ 1.80
2Q05 - 2Q05 - YTD05 - YTD05 -
Net Earnings EPS Net Earnings EPS*
Net Earnings $ 63.3 $ 0.98 $ 104.8 $ 1.61
Less: Tax Change 7.6 0.12 7.6 0.12
Net Earnings Excluding Tax Change $ 55.7 $ 0.86 $ 97.2 $ 1.50
* Earnings per share amounts are calculated independently for each component and may not be additive due to rounding
35
36. Adjusted Return on Capital Reconciliation
($ Millions)
6/30/06 6/30/05
(1)
Net Earnings $ 240.0 $ 221.7
Discontinued Operations (1.7) -
Cumulative Effect of Changes in Accounting Principles 2.4 -
Income Taxes 142.4 109.3
Adjusted Earnings Before Income Taxes 383.1 331.0
Restructuring - Gain on Sale of Headquarters - (1.2)
(2)
Adjusted Interest Expense 135.6 114.5
(3)
Adjusted Income Taxes (202.2) (169.3)
Adjusted Net Earnings $ 316.5 $ 275.0
Average Total Debt $ 2,264.7 $ 1,930.1
Average Off-Balance Sheet Debt 124.2 164.6
(4)
Average Adjusted Total Shareholders' Equity 1,562.2 1,487.4
Adjusted Average Total Capital $ 3,951.1 $ 3,582.1
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 June 2006 and 2005, respectively.
(3)
Represents shareholders’ equity adjusted for discontinued operations, accounting changes and the tax benefits in those periods.
(4)
36
37. Free Cash Flow Reconciliation
($ Millions)
12/31/00 (3) 12/31/01 (3) 12/31/02 (3) 12/31/03 12/31/04 12/31/05 6/30/05 6/30/06
Cash Provided by Operating Activities $ 1,023 $ 357 $ 615 $ 803 $ 867 $ 779 $ 165 $ 298
Changes in Balance of Trade Receivables Sold (270) 235 110 - - - - -
Collections of Direct Finance Leases 67 66 66 61 64 70 33 34
Proceeds from Sales of Assets 230 175 153 210 332 334 171 180
Capital Expenditures (1) (1,296) (704) (582) (734) (1,092) (1,399) (779) (776)
Proceeds from Sale and Leaseback of Assets - - - 13 118 - - -
Acquisitions (28) - - (97) (149) (15) (15) (4)
Other Investing, Net 4 (3) 4 4 - 10 - 1
Free Cash Flow (2) $ (270) $ 126 $ 366 $ 260 $ 140 $ (221) $ (425) $ (267)
Memo:
Depreciation Expense $ 580 $ 545 $ 552 $ 625 $ 706 $ 740 $ 368 $ 362
Gains on Vehicle Sales, Net $ 19 $ 12 $ 14 $ 16 $ 35 $ 47 $ 26 $ 28
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 operating performance.
(2)
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.
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.
(3)
37
38. Free Cash Flow Reconciliation
($ Millions)
Prior Forecast Current Forecast
Midpoint Midpoint
12/31/06 12/31/06
Cash Provided by Operating Activities $ 1,018 $ 973
Collections of Direct Finance Leases 65 65
Proceeds from Sales of Assets 380 360
Capital Expenditures (1) (1,593) (1,694)
Acquisitions - (4)
(2)
Free Cash Flow $ (130) $ (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 operating performance.
(2)
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.
38
39. 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 6/30/05 Equity 6/30/06 Equity
Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143% $2,223 143% $2,489 151%
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 89
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% $2,369 152% $2,578 156%
(1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet
financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to investors
as they are more complete measures of the Company’s existing financial obligations and help investors better assess the Company’s overall
leverage position.
Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as
off-balance sheet debt.
39
40. Debt to Equity Reconciliation
($ Millions)
Prior Forecast Current Forecast
Midpoint % to Midpoint % to
12/31/06 Equity 12/31/06 Equity
Balance Sheet Debt $ 2,360 137% $ 2,608 154%
PV of minimum lease payments and guaranteed
residual values under operating leases for vehicles 80 80
Total Obligations (1) $ 2,440 141% $ 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.
40
