3 year financial plan - hertz

7/30/2019 3 Year Financial Plan - Hertz

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Financial Performance &

Outlook

Mark P. FrissoraChairman of the Board

and Chief Executive Officer


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Superior Revenue and EPS Growth

1 Based on mid-point of 2013 guidance, as disclosed 2/25/132 FY:12 GAAP Pretax Income of $450.6M adjusted to reflect $129.6 million of cash expense associated with DTG acquisition costs

2009 2010 2011 2012 2013E1 CAGR 09-13

Revenue GrowthYoY

(16.7)% 6.5% 9.7% 8.7% 20.9% 11.3%

Fleet Cost

% of Revenue 30.1% 28.2% 26.5% 27.1% n/aOpEx & SG&A% of Revenue

63.3% 63.2% 62.2% 60.4% n/a

Corp. Interest% of Revenue

3.8% 3.9% 3.1% 2.7% n/a

Adj. Pre-tax %of Revenue

2.7% 4.6% 8.2% 10.0% 12% 61.3%

Corp. EBITDA% of Revenue

13.7% 14.5% 16.7% 18.1% 20.6% 23.2%

Adj. EPS $0.28 $0.52 $0.97 $1.33 $1.87 60.8%

Free Cash Flow ($347M) $463M $63M $162M2 $550M


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Superior Revenue and EPS Growth

1 FY 2013 to FY 20152 FY:12 GAAP Pretax Income of $450.6M adjusted to reflect $129.6 million of cash expense associated with DTG acquisition costs

Leverage globalbrands, marketposition and

technology toDRIVE REVENUEGROWTH

DRIVE COST

EFFICIENCIESwith a culture of

continuousimprovement

Optimize strategiesto MAXIMIZECASH FLOW

20122015 Financial

Plan1

Revenue Growth 8.7% 12.5%-13.5%

Fleet Cost% of Revenue 27.1% 24%-25%

OpEx & SG&A% of Revenue

60.4% 55%-56%

Corp. Interest% of Revenue

2.7% 2.3%-2.6%

Adj. Pre-tax% of Revenue

10.0% 17%-18%


18.1% 25%-26%

Adj. EPS $1.33 $3.10-$3.30

Free Cash Flow $162M 2 $1.1-$1.3B

CAGR


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New Financial PlanSurpasses Previous Robust Targets

*As provided on 9/12/11; excludes acquisitions

2011-2014* 2013-2015

RevenueGrowth

7%-8% 12.5%-13.5%

Fleet Cost% of Revenue

24%-25% 24%-25%

OpEx & SG&A% of Revenue

57%-59% 55%-56%

Corp. Interest

% of Revenue 2.3%-2.7% 2.3%-2.6%

Adj. Pre-tax% of Revenue

14%-15% 17%-18%


21%-23% 25%-26%

CAGRCAGR

THEN

NOWLeverage globalbrands, marketposition and

technology toDRIVE REVENUEGROWTH

DRIVE COST

EFFICIENCIESwith a culture of

continuousimprovement

Optimize strategiesto MAXIMIZECASH FLOW


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Valuation Multiples Comparison P/NTM EPS

Pre-Crisis Avg.(PCA)1 2014

Current as %of PCA

Hotels 21.5x 19.4x 90.3%

Online TravelAgents

19.8x 19.8x 100.3%

Equipment Rental 12.5x 11.1x 88.9%

Consumer Durables 13.7x 12.4x 90.5%

Leisure 15.4x 11.7x 76.0%

Auto Dealerships 12.4x 12.7x 102.6%

HERTZ 15.4x 9.6x 62.3%

Source: Company filings and FactSet as of March 27, 20131 Represents period from J une 30, 2003-J une 30, 2008

Stock Trading Below Historic P/E Multiple

Valuation Suggests 40% Upside


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Lead-in to f inal video


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Q & A


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2013 Hertz Investor DayApril 2, 2013

New York, NY

3 year financial plan - hertz

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