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Car Rental

Rental Car Industry Trends

•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future

1988

1989/1990

1995

1997

2002

2007

2007

2009

2010/2011

2010/2011

2012-2013

2016

Rental Car Industry Trends

•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future

0

5

10

15

20

25

30

20052006

20072008

20092010

20112012

20132014

2015

U.S. Car Rental Revenue (Billions)

$20.59

$27.11

U.S. Car Rental Revenue (Billions)

U.S. Car Rental Market Share (Top 227 Markets)

20.0%

25.0%

30.0%

35.0%

40.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016**

Chart Title

Alamo Enterprise National Avis Budget Payless Hertz Dollar Thrifty

Source: Airport Provided Gross Revenue Reports **2016 January -June

Hertz Dollar Thrifty

Avis Budget Payless

Alamo Enterprise National

37.3%

29.9%

27.1% 26.8%

31.0%

40.4%

AEN 37.3%

ABP 27.1%

HDT 29.9%

• Industry Revenue Up $335 Million (2.3%)

0

500

1000

1500

2000

2500

20052006

20072008

20092010

20112012

20132014

2015

U.S. Car Rental Fleet ( Thousands)

1,629

2,182

U.S. Car Rental Fleet (Thousands)

2015 U.S. Car Rental Fleet

0

200000

400000

600000

800000

1000000

1200000

1400000

Other Avis Budget Payless Hertz Dollar Thrifty Alamo Enterprise National

Other Avis Budget Payless Hertz Dollar Thrifty Alamo Enterprise National

Alamo Enterprise National 1,166,828

Hertz Dollar Thrifty 499,100

Other 150,620

Avis Budget Payless 365,000

Rental Car Industry Satisfaction: 2006-2015 Overall Satisfaction Index Scores Trending – Industry level

Rental Car Business and Leisure Satisfaction 2006-2015

Overall Satisfaction Index Scores Trending – Business and Leisure/Personal

Note: Beginning in 2011, the Business segment includes customer responses for purpose of rental car for "business" and "both business and leisure/personal"

758

740

720724

738

753

762

771 772

802

771

758

744740

759 762

774 777 774 796

700

725

750

775

800

825

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Inde

x Sco

re(B

ased

on

a 1,

000-

poin

t sca

le)

Study Year

Total Industry Business Leisure/Personal

Rental Car Industry Trends

•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future

Overview Presentation

August 2016

A Global Leader in the Car Rental Industry

11,000 locations

580,000 vehicles

38 million transactions

142 million rental days

$8.6 billion

annual revenue

Diversified Revenue Sources

Commercial vs. Leisure

60% 40%

Americas vs. International

30% 70%

On-Airport vs. Off-Airport

30% 70%

Avis vs. Budget

35% 60%

Zipcar

Locations in more than 180 countries and a leading position in most major markets

30

Strategic Plan

Driving Sustained, Profitable Growth

Strategically Accelerate

Growth

Put the Customer First

Drive Efficiency Throughout

the Organization

Expand Our Global

Footprint

The Avis Europe transaction reunited our world-class brands globally, and Zipcar is the worldwide leader in car sharing

New Markets

Acquisitions of Southern California, Scandinavia and Poland will drive substantial revenue and cost synergies

Licensees

Maggiore, Payless and Apex enhance our long-term growth potential and provide attractive returns

Additional Brands

Expanding our Global Footprint

We have significantly expanded Budget in Europe, Payless in North America, Apex in Australia and Zipcar globally

Organic Expansion

Proprietary technology drives Zipcar’s leadership

and innovation

Zipcar operates the largest

member-based, car sharing

network in the world

– Nearly one million members

– Over 500 college campuses

– Enabling simple and responsible urban living

Locations in the United States, Canada and Europe

Growth opportunities in existing markets, from new services and through

international expansion

Leverages Avis Budget infrastructure

Zipcar Meets Emerging Consumer Needs

Hertz

1918 Founded in Chicago by Walter Jacobs

1923 Acquired by John Hertz

1925 Rail-Drive initiated

1932 Fly-Drive initiated at Chicago’s Midway

1972 Hertz Gold service begins

1987 Acquired by Ford

1988 Headquarters moved to Park Ridge, NJ from New York City

2005 Ford sells company to private equity

2006 Hertz becomes publicly traded

2015-2016 Company relocates headquarters to Estero, FL

34

Corporate Headquarters Relocation to Estero, Florida

35

Firefly Brand

• Originated in 2013 as a replacement for Advantage

• Brand discontinued in the US in 2016

• Was operating at 11 US markets: Philadelphia Las Vegas

Oakland Miami

San Francisco Orlando

San Jose Phoenix

Seattle Denver

Los Angeles

• Customers transitioned to Thrifty

36

Hertz Equipment Rental

• Started in 1965

• Spin-off completed in 2016

• Hertz realized $2 billion in transaction

• Now operates as a standalone publicly traded company

• New name is HercRentals

37

“Take care of your customers

and employees first, and growth

and profits will follow.”

- Founder Jack Taylor

• Founded in 1957, and still family owned and operated

• One of America’s largest private companies (Forbes)

• More than 1.9 million vehicles worldwide

• More than 1 million transactions per week

• More than $20 billion revenue

• More than 97,000 employees

• More than 9,000 locations

Key Statistics

Pam Nicholson – President/CEO

Chrissy Taylor- COO

40

Global Footprint

85 Countries Worldwide

2007 2008 2009 2010 2011 2012 2013 2014 2015

JD Power Performance Trend

1

2

3

7 4

Rental Car Industry Trends

•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future

Three basic transportation services Car &

Vanpooling Car Rental

For-Hire Driver Taxi Limo

Two Primary Services at Airports Car Rental For-Hire Driver

Taxi Limo

Car Rental = TURO

Car Rental

47

Home Page- “Rent the Car…Own the Adventure”

“PICK YOUR PROTECTION

PACKAGE”

reality:

Advertising Service at 300 + Airports

reality:

Advertising Curbside Delivery- “Never Wait At the Rental Counter Again”

50

“This fee accounts for Liability insurance, emergency roadside towing, and payment processing”

“Pick up and return the car at the airport. You’ll arrange the details with Daniel later”

Concession Fee’s Paid To Airports in the U.S.

Concession Fee’s Paid To Airports in the U.S.

$0.00

Concession Fee’s Paid To Airports in the U.S.

Two Primary Services at Airports Car Rental For-Hire Driver

Taxi Limo

57

Impact to Car Rental

The Facts: Certify and other agencies are reporting on transactions which is a misleading figure Car rental = 1 transaction TNC= No Less Than 2 The only way to measure the impact is to understand the entire travel experience

Confessions of a Car Rental Employee

• There are times I do not rent a car when traveling • There are times I rent a car while traveling and

use a taxi or UBER • There are times when I am in St Louis when I am

headed to dinner and plan to have more than one drink. I use a taxi or UBER

Car Rental Industry Growth

60 -10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016***

8.6%

6.1%

4.1% 4.1% 5.2%

-8.09%

-.7%

5.7%

3.5% 2.5%

7.3%

Airports have the Ability to Evaluate and Understand the Impact

• Do you have transactions from all car rental companies?

• Do you have transactions from all other forms of transportation?

• Are you sharing that information?

Rental Car Industry Trends

•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future

The Future

•Plug in Electric Vehicles •Autonomous Cars •On the Verge of Convenience

•Telematics/Car Share Technology at Airports

•Airport’s Evolution…Car Rental Wants to Join!

No… Actually we don’t

I WANT MY P.E.V.

Plug In Electric Vehicles

• PEV’s sold from 2008-2016 • 506,450

• Total Vehicles Sold • 115 Million

.44%

Plug in Electric Vehicles

Total Vehicles Sold 18.04 Million

.37%

PEV’s Sold from Aug 2015- August 2016 68,415

Why Aren’t PEV’s Being Produced/Purchased?

10 Electric Vehicles with the Best Range

Smart - 68 miles- $25,750/$18,250 Focus - 68 miles- $29,170/22,000 i3- 81 Miles- $43,350

Spark - 82 miles- $25,170/$20,000 E Gulf - 83 miles- $35,450 Leaf - 84 miles- $29,010

Range Anxiety

10 Electric Vehicles with the Best Range

B Class - 87 miles- $41,450 500e - 87 miles- $32,300/$24,800 Soul- 93 Miles- $33,700/$25,000

Tesla S 85D – 270 miles- $85,000 Tesla S 70D - 240 miles- $75,000

FASTEST RECHARGE 40 Minutes-453 Supercharge Stations 4 Hours- Normal Recharge

Range Anxiety

Autonomous Cars

Cost Repair Reliability Program Questions: Hit the Wall or Hit the Human? Refueling?

On the Verge of Convenience – Telematics

• What is Vehicle Telematics? • The integrated use of telecommunication and

informatics • Most common example is Navigation System

• Why is this the future? • Communicate with the vehicle beyond location

• Mileage • Fuel

• Communicate with the vehicle to unlock and enable • Technology in car sharing is costly due to equipment

needed in each vehicle. This eliminates that cost

Airport’s Evolution…Car Rental Wants to Join!

Airports Today

Shopping Friendly Environment = Revenue

Car Rental Facilities

Dark Grey Uninviting

Car Rental Facilities are not Parking Garages!

•Retail Centers

•Where Customers Make Purchasing Decisions

•Where Employees Spend their Days

•They are an Extension of the Airport

Thank You!

Do We Have Time for One Last Point about Consolidated Facilities?

Find Apple

Coca Cola

Hilton

Ford

Taco Bell

Chrysler Southwest

McDonalds

Burger King Starbucks

Pepsi Mercedes

Toyota Puma

Nike

Adidas

Apple Microsoft

United

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Find McDonalds

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Find Coca Cola

Hilton

Ford

Taco Bell

Chrysler Coca Cola

Southwest

McDonalds

Burger King Starbucks

Pepsi Mercedes

Toyota

Puma

Nike

Adidas

Apple

Microsoft

United

Did you find it?

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find Coca Cola

Can we conclude that we recognize icons and logos easier than we recognize the words?

Airport Signage for ALL Customers

Thank you