ryder system, inc. wolfe trahan & co presentation

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RYDER SYSTEM, INC. Presented to: Wolfe Trahan Global Transportation Conference May 25, 2011 Art Garcia EVP & CFO

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RYDER SYSTEM, INC.

Presented to: Wolfe Trahan Global Transportation Conference

May 25, 2011

Art GarciaEVP & CFO

05/11/11

Safe Harbor

Certain statements and information included in this presentation

are "forward-looking statements" 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, a slowdown of the economic recovery and decreases in freight demand, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economic conditions, uncertainty or decline in economic and market conditions affecting contractual lease demand, decreases in market demand in the commercial rental market and the sale of used vehicles, competition from other service providers, 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 or bankruptcy of customers, 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, a decrease in credit ratings, increased debt costs resulting from volatile financial markets, inability to achieve planned synergies and customer retention levels from acquisitions, labor strikes or work stoppages affecting our

or our customers’

business operations, driver shortages and increasing driver costs, adequacy of accounting estimates, reserves and accruals particularly with respect to pension, 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 accounting pronouncements, rules or interpretations, changes in government regulations, adverse impacts of recently enacted regulations regarding vehicle emissions, any unanticipated or unrealized effects of the recent Japan earthquake and tsunami on our operations, customers and vehicle suppliers 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.

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05/11/11

Ryder Profile

Revenue (1)

$5.1 BillionOperating Revenue (1)

$4.2 BillionComparable Earnings Before Income Taxes (1)

$189 MillionComparable Earnings (1)

$117 MillionFree Cash Flow (1)

$258 MillionAssets $6.7 BillionAssets Under Customer Leases

$3.6 BillionVehicles Maintained

182,100Employees 25,900

Full Year 2010

Dedicated Contract Carriage

Fleet Management Solutions

Supply Chain Solutions

(1) These amounts result from continuing operations.

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05/11/11

Custom vehicle specifications

State-of-the-art preventive maintenance

Comprehensive package of fleet support services

Fleet Management Solutions:

Product and Services Overview

Fleet Management Fleet Management SolutionsSolutions

Thousands of clean, mechanically-sound commercial vehicles for short-term customer needs

Lease support

CommercialRental

Full Service Lease

Insurance

Fuel

Safety

Regulatory reporting

Fleet Support Services

Ancillary maintenance work on Ryder or customer owned vehicles not included in base contract

Contract-Related Maintenance

Flexible package of maintenance and fleet support services

Vehicles are owned by our clients or under third-party finance lease contract

Contract Maintenance

Supply Chain Solutions

13,200 Lease/Maintenance Customers (U.S., Canada, U.K.)

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05/11/11

Dedicated Contract Dedicated Contract CarriageCarriage

Turnkey transportation service with drivers, vehicles, maintenance, routing & scheduling, management & administrative support

Dedicated Contract Carriage:

Product and Services Overview

150 Customers (North America, U.K.)

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05/11/11

Supply Chain SolutionsSupply Chain Solutions

Strategic consulting & decision support

Solutions engineering

Network modeling & optimization

Total landed cost

Lean Six Sigma

Professional Services

Order fulfillment

Warehouse and distribution center operations

Inbound materials management

Outbound product support

Reverse logistics

Vendor managed inventory

Kitting, packaging & assembly

Distribution Management

Freight procurement & contract management

Shipment planning and execution

Freight brokerage

Freight bill audit and payment

Origin/destination services

Transportation Management

Supported by: IT Solutions

Transportation & warehouse management systems

Network optimization tools

Inventory & shipment visibility tools

Supply Chain Solutions:

Product and Services Overview

470 Customers (North America, Asia)

Dedicated

Dedicated Contract Carriage

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05/11/11

Market Overview

The transportation and logistics markets present significant growth opportunities. Current estimated market sizes are as follows:

Note: Vehicle market shown is class 3-8Sources: Truck Rental and Leasing Association, R.L. Polk, Monitor Group, A.T. Kearney

Market Segment Market SizeLease and rental market (outsourced) –

U.S., Canada, U.K. 0.8 million vehiclesPrivate fleet market (non-outsourced) –

U.S., Canada 4.2 million vehiclesDedicated contract carriage market (outsourced) –

U.S. $13 billionSupply chain logistics market (outsourced) –

North America and Asia $260 billion

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Fleet Management Solutions:

Macro Trends Favoring FMS

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Deferred replacements have lead to record fleet aging which should lead to increases in truck sales and leasing in the coming years

Source: ACT Research Source: Global Insight

actual forecast11.3% CAGR

05/11/11

Fleet Management Solutions:

Macro Trends Favoring FMS

Bank Capital Requirements

Access to Capital

Customers likely to utilize alternative financing sources (e.g., OEM captive finance, Full Service Lease and Fleet Management)

Capital

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Fleet Management Solutions:

Macro Trends Favoring FMS

Increasing complexity and costs are expected to favor outsourcing vehicle financing and maintenance

EPA 2007

EPA 2010

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Key Leading Indicators

The key leading indicators for Ryder’s business are improving. First quarter results included:

(a)

Global power units(b)

U.S. power units(c)

U.S.

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

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05/11/11

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

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Questions & Answers

Art GarciaEVP & CFO