f-1560 - bidding for hertz - lbo

7/21/2019 F-1560 - Bidding for Hertz - LBO

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send an e-mail to 89D,8Q=9<=,B>A87B,88;A>D7867BO.0GJ. No part of this publication may be reproduced, stored in aretrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,

photocopying, recording, or otherwise—without the permission of the Darden School Foundation. +,-. &)R)4. ◊

BIDDING FOR HERTZ: LEVERAGED BUYOUT

Overview

NB D91, 8AJJ,< 3))'2 L<,O S,=HG<=2 J9B9O7BO =7<,01G< 9B= 6,9= GH 9A1GJG17-, 9B=1<9B8;G<1917GB >A?GA18 91 16, C9<D?D, L<GA;2 HGAB= 67J8,DH ,T9J7B7BO 678 ID90EI,<<? 91G; 16,L<,91 U9DD GH C67B9. 56GAO6 6, 69= ;D9BB,= 1G >, 87O618,,7BO :716 678 =9AO61,<2 678 7JJ,=791,HG0A8 :98 1G H7B9D7V, 16, 1,<J8 GH 16, 8,0GB=$D9<O,81 D,-,<9O,= >A?GA1 7B 6781G<?. 56, 19<O,1 7BWA,817GB :98 X,<1V2 9 8A>87=79<? GH 16, %G<= MG1G< CGJ;9B?2 :6706 :98 A; HG< 89D,. S,=HG<=B,,=,= 1G =,07=, 16, ;<70, 6, 9B= 678 0G$7B-,81G<8 :GAD= GHH,< HG< X,<1V 98 :,DD 98 988,88 16,

;G1,B179D <,1A<B8 9B= <78E8 GH 16, =,9D. #D<,9=? JGB168 GH :G<E2 J9B? =GDD9<8 GH =A, =7D7O,B0,29B= 9<<9BO,J,B1 GH 1,B1917-, H7B9B07BO 69= OGB, 7B1G 16, >7=. CGJ;D70917BO J911,<82 6, EB,: 6,H90,= 1GAO6 0GJ;,1717GB H<GJ 9 <7-9D >A?GA1 O<GA;2 BG =GA>1 ,BO9O,= 7B 9 87J7D9< ;<G0,88.

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

H<GB1 0986 ;<G0,,=8 9B= 0,<197B1? GH ,T,0A17GB. U6,B BG 81<91,O70 >A?,< 8A<H90,=2 C9<D?D,2CD9?1GB2 KA>7D7,< ^ +70, _CK^+`2 9B= M,<<7DD S?B06 LDG>9D F<7-91, ZWA71? _0GDD,017-,D?[I7==7BO L<GA;\` aG7B,= HG<0,8 1G >7= GB X,<1V. N1 H90,= 0GJ;,1717GB H<GJ 9BG16,< >A?GA10GB8G<17AJ 1691 7B0DA=,= 5,T98 F907H70 L<GA;2 ID90E81GB,2 56GJ98 X. S,, F9<1B,<8 SF2 9B=I97B C9;719D SSC.

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Hertz Ownership History

X,<1V]8 G:B,<867; 6781G<? :98 069<901,<7V,= >? 9 8,<7,8 GH 89D,82 ;A>D70 GHH,<7BO82 9B=

D,-,<9O,= >A?GA18 _Exhibit 1`.&

56, 0GJ;9B? :98 H7<81 ,819>D786,= 7B &4&P >? 33$?,9<$GD=U9D1,< S. Y90G>8 98 9 09< <,B19D G;,<917GB :716 9 JG=,81 7B-,B1G<? GH &3 MG=,D 5 %G<=8 1691Y90G>8 ;,<8GB9DD? 69= <,;97<,= 9B= <,;97B1,=. 56, -,B1A<, :98 7JJ,=791,D? 8A00,88HAD2 D,9=7BOY90G>8 1G ,T;9B= 9B= O,B,<91, 9BBA9D <,-,BA,8 GH 9;;<GT7J91,D? b& J7DD7GB :7167B H7-, ?,9<8. #116, b& J7DD7GB J9<E2 7B &43c2 Y90G>8 8GD= 678 0GJ;9B? 1G YG6B X,<1V2 ;<,87=,B1 GH d,DDG: C9>9B= d,DDG: 5<A0E 9B= CG906 M9BAH901A<7BO CGJ;9B?2 :6G O9-, 678 B9J, 1G 16, 0GJ;9B?20<,917BO [X,<1V K<7-,$!<$@,DH @?81,J\ 9B= 9 ><9B= B9J, 1691 69= ,B=A<,= ,-,< 87B0,.

YG6B X,<1V 8GD= 678 7B-,81J,B1 16<,, ?,9<8 D91,< 1G L,B,<9D MG1G<8 _LM`. NB &4'c2 LM 7B1AA8 CG<;G<917GB2 :6706 87J;D7H7,= 16, 0GJ;9B?]8 B9J,1G [56, X,<1V CG<;G<917GB\ 7B 0GBB,017GB :716 9 ;A>D70 81G0E GHH,<7BO GB 16, e,: dG<E @1G0E

ZT069BO, _ed@Z`. NB D91, &4Pf2 1GO,16,< :716 X,<1V J9B9O,J,B12 %G<= MG1G< CGJ;9B? ;9<1707;91,= 7B 9 J9B9O,J,B1 >A?GA1 GH 16, 0GJ;9B?. X,<1V D91,< >,09J, 9B 7B=,;,B=,B12 :6GDD?G:B,= 8A>87=79<? GH %G<= 7B &44g. S,88 169B 16<,, ?,9<8 D91,<2 %G<= 788A,= 9 J7BG<71? 819E, GH869<,8 16<GAO6 9 ;A>D70 GHH,<7BO GB 16, ed@Z GB #;<7D 3'2 &44f. NB ,9<D? 3))&2 %G<= <,90WA7<,=16, GA1819B=7BO 869<,8 GH X,<1V 9B= 16, 0GJ;9B? 9O97B >,09J, 9 :6GDD? G:B,= 8A>87=79<? GH 16,%G<= MG1G< CGJ;9B?.

Hertz Financial History and Business Segments3

56, D9<O, 7B-,81G< 7B1,<,81 7B X,<1V G-,< 17J, :98 =A, 7B ;9<1 1G 16, 0GJ;9B?]8 ;<G-,BH7B9B079D 9>7D71?. NB H9012 16, 0GJ;9B? 69= ;<G=A0,= 9 ;<,19T ;<GH71 ,906 ?,9< 87B0, &4(f. KA<7BO16, ;,<7G= &4P' 1G 3))'2 <,-,BA,8 69= O<G:B 91 9 0GJ;GAB= 9BBA9D O<G:16 <91, GH f.(h :716 ;G8717-, ?,9<$G-,<$?,9< O<G:16 7B &P GH 16G8, 3) ?,9<8. /-,< 16, ;981 89J, ;,<7G=2 X,<1V 69=,J,<O,= 98 9 1<AD? ODG>9D ,B1,<;<78,i 71 69= 09< <,B19D G;,<917GB8 7B &g' 0GAB1<7,82 9B= JG<, 169Bc)h GH 718 1G19D <,-,BA,8 :,<, H<GJ GA187=, GH 16, !B71,= @191,8. X,<1V :98 9JGBO 16, JG81ODG>9DD? <,0GOB7V,= ><9B=8 9B= 69= >,,B D781,= 7B BusinessWeek ]8 [&)) MG81 "9DA9>D, LDG>9DI<9B=8\ _D7J71,= 1G ;A>D70 0GJ;9B7,8` 7B 3))' 9B= ,-,<? ?,9< 87B0, 71 :98 ,D7O7>D, HG< 7B0DA87GB.

X,<1V 0A<<,B1D? G;,<91,= 7B 1:G >A87B,88 8,OJ,B18j 09< <,B19D _[X,<1V +,B1 # C9<\ G<[+#C\` 9B= ,WA7;J,B1 <,B19D _[X,<1V ZWA7;J,B1 +,B19D CGJ;9B?\ G< [XZ+C\`. NB 3))'2 71 :98,817J91,= 1691 +#C :GAD= 0GJ;<78, P&h GH 0GJ;9B? <,-,BA,8 9B= XZ+C &4h. +#C :988A;;G<1,= >? 9 B,1:G<E GH H<9B0678,8 1691 1GO,16,< :716 0GJ;9B?$G:B,= H907D717,8 G;,<91,= 7BJG<, 169B f2()) 97<;G<1 9B= DG09D DG0917GB8 16<GAO6GA1 16, :G<D=. 56, 0GJ;9B? D,= 7180GJ;,1717GB 7B 16, 97<;G<1 09< <,B19D J9<E,1 7B ZA<G;, :716 G;,<917GB8 91 (4 J9aG< 97<;G<18. X,<1VG:B,= 9B= D,98,= 09<8 H<GJ JG<, 169B c) J9BAH901A<,<82 JG81 GH :6706 71 69= DGBO$1,<J D,987BO

& NBHG<J917GB GB 0GJ;9B? 6781G<? :98 G>197B,= H<GJ 16, 0GJ;9B? U,> 871,j 611;jRR:::.6,<1V.0GJ _900,88,=YAD? c&2 3))P`.

3 NBHG<J917GB GB >A87B,88 8,OJ,B18 78 H<GJ X,<1V LDG>9D XGD=7BO82 NB02 cRc)R3))f %G<J &)$k _#BBA9D +,;G<1`_F9<E +7=O,2 eYj X,<1V LDG>9D XGD=7BO82 NB0.2 3))f`.

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9B= <,;D90,J,B1 9O<,,J,B18 :716. 56, ,WA7;J,B1 <,B19D 8,OJ,B1 GHH,<,= 9 :7=, <9BO, GH,9<16JG-7BO2 J91,<79D 69B=D7BO2 9B= ,D,01<709D ,WA7;J,B1i 97< 0GJ;<,88G<8i O,B,<91G<8i 9B= G16,<,WA7;J,B1. X,<1V <,B1,= ,WA7;J,B1 16<GAO6 c() ><9B06,8 7B 16, !B71,= @191,82 C9B9=92 %<9B0,2

9B= @;97B 9B= 69= 9B ,T1,B87-, B,1:G<E GH 7B1,<B917GB9D D70,B8,,8 GA187=, 16,8, J9<E,18.

%G< 16, ?,9< ,B=,= K,0,J>,< c&2 3))'2 X,<1V :98 ,T;,01,= 1G O,B,<91, <,-,BA,8 GHbf2g&) J7DD7GB 9B= ZIN5K# GH b32f'4 J7DD7GB. X,<1V]8 JG81 <,0,B1 7B0GJ, 8191,J,B18 9B= >9D9B0, 86,,18 9<, 86G:B 7B Exhibit 2 9B= Exhibit 32 9DGBO :716 ;<,$SI/ ;<Ga,017GB8 HG< 16, HADD?,9< 3))'.

The Car Rental Market

!.@. <,B19D 09< <,-,BA,8 7B 3))g 1G19D,= 9;;<GT7J91,D? b&f.g >7DD7GB2 9B 7J;<G-,J,B1 GH

'.'h G-,< 3))c _Exhibit 4`. !.@. 7B=A81<?$:7=, <,-,BA,8 :,<,2 7B 1A<B2 9;;<GT7J91,D? 1:G$167<=8 GH ODG>9D <,-,BA,8. CGJ;,1717GB :7167B 16, ODG>9D 09< <,B19D 7B=A81<? :98 E,,B 9B= 67O6D?0GB0,B1<91,= 9JGBO 9 H,: 0GJ;9B7,8. NB 16, !B71,= @191,82 16, 1G; 16<,, 0GJ;,171G<82 ZB1,<;<78,+,B1$#$C9<2 X,<1V2 9B= #-78 +,B1 # C9< _G:B,= >? C,B=9B1 CG<;.`2 09;1A<,= 9;;<GT7J91,D?(Ph GH 16, ,817J91,= 3))( J9<E,1 <,-,BA,8 9B= 16, 1G; 87T 09;1A<,= 9DJG81 4gh GH 16, 1G19D.X,<1V D,= 7B 16, 97<;G<1 <,B19D 8,OJ,B1 GH 16, 7B=A81<? :67D, ZB1,<;<78, =GJ7B91,= 16, BGB97<;G<1<,B19D 8,OJ,B1. NB 3))'2 71 :98 ,817J91,= 1691 9;;<GT7J91,D? f4h GH 16, !.@. +#C <,-,BA,8:GAD= >, 97<;G<1$<,D91,= <,B19D8. X,<1V]8 J9<E,1$D,9=7BO 869<, GH 16, 97<;G<1 <,B19D J9<E,1 :98911<7>A1,= 7B ;9<1 1G 718 [X,<1V l& CDA> LGD=\ ;<GO<9J. #>GA1 ')h GH +#C]8 -,670D, <,B19D809J, H<GJ CDA> LGD= J,J>,<8.

56, 09< <,B19D >A87B,88 :98 9HH,01,= >? O,B,<9D ,0GBGJ70 0GB=717GB8 9B= JG<, ;9<170AD9<D? >? 0GB=717GB8 7B 16, 1<9-,D 7B=A81<?2 ,8;,079DD? 97<D7B, 1<9HH70. 56,<, :98 9 67O60G<<,D917GB >,1:,,B 97<D7B, 1<9HH70 _BAJ>,< GH ,B;D9B,J,B18` 9B= 7B=A81<?$:7=, <,B19D <,-,BA,8.%GDDG:7BO 16, @,;1,J>,< && 1,<<G<781 91190E8 GB 16, !B71,= @191,82 16,<, :98 9 869<; =G:B1AA1 16,? H7B9DD? 8,,J,= 1G >, <,>GAB=7BO 7B 3))g. 56, !.@. K,;9<1J,B1 GH5<9B8;G<1917GB ;<,=701,= ,B;D9B,J,B18 :GAD= O<G: 91 9B 9BBA9D <91, GH c.fh H<GJ 3))g 1G3)&).c

F9<179DD? =A, 1G 4R&&2 GHH$97<;G<1 <,B19D82 :6706 0GB8781,= ;<7J9<7D? GH 7B8A<9B0,<,;D90,J,B1 _<,B19D8 ;<G-7=,= >? 7B8A<9B0, 0GJ;9B7,8 :67D, 16, ;GD70?G:B,<]8 9A1GJG>7D, :98GA1 GH 8,<-70,`2 DG09D >A87B,88 1<9-,D2 9B= D,78A<, 1<9-,D2 69= <,0,B1D? O<G:B 91 9 H981,< ;90, 169B69= 97<;G<1 <,B19D8.

c !.@. K,;9<1J,B1 GH 5<9B8;G<1917GB.

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The Equipment Rental Market

#8 GH #AOA81 3))'2 16, 87V, GH 16, eG<16 #J,<709B ,WA7;J,B1 <,B19D J9<E,1 7B <,-,BA,8

:98 >,D7,-,= 1G >, b3' >7DD7GB2 :67D, 1691 GH %<9B0, 9B= @;97B :,<, 9;;<GT7J91,D? bg >7DD7GB 9B=b3 >7DD7GB2 <,8;,017-,D?. IA1 >,09A8, XZ+C GBD? GHH,<,= 0,<197B 1?;,8 GH ,WA7;J,B12 X,<1V]89;;D709>D, J9<E,1 :98 8GJ,:691 8J9DD,<.

56, ,WA7;J,B1 <,B19D J9<E,1 :98 JG<, -9<79>D, 169B 16, 09< <,B19D J9<E,1 9B= =,;,B=,=JG81D? GB 7B=A81<79D ;<G=A017-71?2 ;9<170AD9<D? 0GJJ,<079D 9B= <,87=,B179D 0GB81<A017GB. /-,< 16, ;981 &' ?,9<82 16, >,81 ,817J91,8 GH O<G:16 8AOO,81,= 16, J9<E,1 69= O<G:B 91 9B 9BBA9D <91, GH9;;<GT7J91,D? 4.fh. KA<7BO 1678 17J,2 16,<, :98 9 1<,B= 1G:9<= 0GJ;9B7,8 7B B,,= GH ,WA7;J,B1<,B17BO <916,< 169B G:B7BO 712 :6706 :98 ,T;,01,= 1G 0GB17BA,. 56, J9<E,1 69= ,T;,<7,B0,= <9;7=O<G:16 7B 16, &44)8 >A1 69= 8DG:,= 0GB87=,<9>D? >,1:,,B 3))) 9B= 3))c :716 16, =,0D7B, 7B 16,,0GBGJ?. 56, ,WA7;J,B1 <,B19D J9<E,1 69= <,0,B1D? 819<1,= 1G <,>GAB= H<GJ 16, 3)))m)c D,-,D82

9 <,>GAB= :6706 :98 ,T;,01,= 1G 0GB17BA,.

!BD7E, 16, 09< <,B19D J9<E,12 16, !.@. ,WA7;J,B1 <,B19D 7B=A81<? :98 67O6D? H<9OJ,B1,=:716 H,: B917GB9D 0GJ;,171G<8. /16,< J9aG< B917GB9D 809D, G;,<91G<8 D7E, X,<1V 7B0DA=,= !B71,=+,B19D82 NB0.2 9B= +@C ZWA7;J,B1 +,B19D82 9 =7-787GB GH 16, #1D98 CG;0G L<GA;. 56, ,WA7;J,B1<,B19D >A87B,88 :98 67O6D? 0GJ;,1717-,2 9B= <,B19D ;<70,8 69= 819<1,= =,0D7B7BO 7B 3))& 9B= =7=BG1 7J;<G-, 7B eG<16 #J,<709 AB17D 3))g. F<70,8 7B %<9B0, 9B= @;97B 69= ?,1 1G 81G; =,0D7B7BO.g

NB81,9= GH 9 0GB0,B1<91,= 8GA<0, GH <,-,BA,8 _!.@. 97<;G<18`2 0A81GJ,<8 GH 16, ,WA7;J,B1<,B19D 7B=A81<? :,<, :7=,D? 80911,<,= 16<GAO6GA1 16, 0GAB1<?. 5678 0GJ;D7091,= 16, =781<7>A17GBGH ,WA7;J,B1 9B= <,=A0,= 16, G;;G<1AB71? 1G 9067,-, 809D, 7B G;,<917GB82 ,B0GA<9O7BO DG09D ;D9?,<8 1G 0GJ;,1, :716 D9<O, >A87B,88,8. eGB,16,D,882 X,<1V :98 9 1G; ;D9?,< 7B 16, 7B=A81<?2<9BE7BO 167<= >98,= GB 3))' <,-,BA,8. X,<1V]8 =7-,<8, 0A81GJ,< >98, 9D8G 6,D;,= 1G 9DD,-791,8GJ, GH 16, <78E8 GH 0?0D709D71? 9B= 8,98GB9D71? ;<,8,B1 7B 16, 7B=A81<?.

Tough Times at Ford

%G<=]8 90WA78717GB GH X,<1V 7B Y9BA9<? 3))& <,HD,01,= 16, 81<91,O? GH 718 16,B CZ/ 9B= ;<,87=,B12 Y90WA,8 #. e988,<. e988,< 69= >,,B ;<GJG1,= H<GJ ;<,87=,B1 GH %G<=]8 :G<D=:7=,9A1GJG17-, G;,<917GB8 1G >,0GJ, CZ/ 7B K,0,J>,< &44P.' #1 16, 89J, 17J,2 I7DD %G<= Y<.2 9O<,91$O<9B=8GB GH X,B<? %G<=2 988AJ,= 16, <GD, GH 0GJ;9B? 0697<J9B. e988,<]8 81<91,O? :98 1G1A<B %G<= 7B1G 8GJ,167BO2 9B?167BO2 G16,< 169B 9 1<9=717GB9D 09< 0GJ;9B?. X, 911,J;1,= 1G 86<7BE%G<=]8 J97B81<,9J 9A1GJG17-, =7-787GB8 9B= <,J9E, 71 7B1G 9 D,9=7BO 0GB8AJ,< 0GJ;9B? 7B9A1GJG17-, ;<G=A018 9B= 8,<-70,8. kBG:B HG< 678 9><987-, 81?D,2 e988,< H<,B,1709DD? ;A<8A,= 67881<91,O?2 a,117BO 9<GAB= 16, :G<D= 9B= :G<E7BO 3)$6GA< =9?8. X, 90WA7<,= "GD-G2 S9B= +G-,<2

g CGB8G<17AJ 7B1,<B9D =G0AJ,B1917GB GB X,<1V SI/.' k,716 I<9=86,<2 [56, 5G; @;G1 91 %G<= 78 +,1A<B7BO 1G 9 %G<=2\ New York Times2 @,;1,J>,< &32 &44P.

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X,<1V2 9B= 8;,B1 >7DD7GB8 ;A<8A7BO BGB0G<, G;,<917GB8. KA<7BO e988,<]8 16<,,$?,9< 1,BA<,2 %G<=]8GB0,$7J;<,887-, b&' >7DD7GB 0986 <,8,<-, =:7B=D,= 1G D,88 169B b& >7DD7GB >? 3))&.(

NB eG-,J>,< 3))&2 I7DD %G<= Y<. 988AJ,= 16, CZ/ <GD, 91 %G<= <,;D907BO e988,<. #H1,<16, 1A<>AD,B1 ?,9<8 GH e988,<2 I7DD %G<=]8 980,B87GB 1G CZ/ :98 O<,,1,= ,B16A87981709DD?.f IA1%G<= 7B6,<71,= 9 0GJ;9B? 1691 69= DG81 b'.' >7DD7GB 16, ;<,-7GA8 ?,9< 9B= :6G8, HA1A<, 6,D= O<,91AB0,<197B1?. U67D, %G<= 69= 9 81<GBO D7B, GH 1<A0E82 718 ;988,BO,< 09< D7B, :98 D9OO7BO. I? J7=$3))32 %G<= :98 DG87BO b&4) ;,< -,670D, >,09A8, GH 718 >DG91,= 0G81 81<A01A<, 9B= 7B1,B8, ;<707BO ;<,88A<, H<GJ 0GJ;,171G<8.

#D16GAO6 %G<= ;<G;G8,= 8,-,<9D <,81<A01A<7BO ;D9B8 1691 :GAD= <,=A0, 0G818 9B=<,,B,<O7V, 718 ;988,BO,< 09< D7B,2 678 ;D9B8 :,<, BG1 ,BGAO6 1G 81,J 16, 0GJ;9B?]8 =,0D7B,. I?16, 17J, 6, 9BBGAB0,= 16, 0GJ;9B?]8 7B1,B17GB8 1G ,T;DG<, 81<91,O70 G;17GB8 HG< X,<1V 7B #;<7D3))'2 %G<=]8 81G0E ;<70, 69= H9DD,B 1G D,88 169B b&) ;,< 869<,. 56, 0GJ;9B? 0GB17BA,= 1G DG8,

JGB,?2 ,8;,079DD? 7B 718 eG<16 #J,<709B G;,<917GB8.

P

+AJG<,= 1G >, H907BO 9 ;G1,B179D=G:BO<9=, 7B 718 >GB= <917BO2 X,<1V DGGE,= 1G >, 9 -79>D, 09B=7=91, HG< %G<= 1G <978, 8GJ, JA06$B,,=,= 0986 1G 86G<, A; 718 >GB= <917BO 9B= 911,J;1 1G <,1A7D71?.

Hertz as an LBO candidate

#D16GAO6 %G<= G:B,= &))h GH X,<1V2 X,<1V 69= G;,<91,= D9<O,D? :716GA1 G-,<87O61 >? G<G>D7O917GB 1G %G<=.4 M,J>,<8 GH 16, I7==7BO L<GA; 69= 7B=7-7=A9DD? ,-9DA91,= X,<1V 9B= >,D7,-,= 71 1G >, 9B 911<9017-, D,-,<9O,= >A?GA1 09B=7=91,.

Operating Synergies

X,<1V]8 1:G >A87B,88 8,OJ,B18 ;<,8,B1,= D9<O, G;;G<1AB717,8 HG< G;,<917GB9D7J;<G-,J,B1. 56, E,? =<7-,<8 GH 16, <,B19D 09< >A87B,88 7B0DA=,= 16, BAJ>,< GH 1<9B89017GB82 16,D,BO16 GH ,906 <,B19D2 <,-,BA, ;,< <,B19D =9?2 9B= HD,,1 A17D7V917GB. 5<9B89017GB -GDAJ,2 :6706:98 9 OGG= 7B=7091G< GH J9<E,1 =,J9B=2 1?;709DD? HGDDG:,= O<G:16 7B 16, O,B,<9D ,0GBGJ? 9B=,B;D9B,J,B18. +,B19D D,BO16 :98 D9<O,D? =,;,B=,B1 GB 0A81GJ,< 9B= ,B=$;<G=A01 J7T. S,78A<,9B= 7B8A<9B0, <,B1,<8 O,B,<9DD? <,B1,= 09<8 HG< DGBO,< ;,<7G=8 169B >A87B,88 1<9-,D,<8. #BG16,<J9aG< =<7-,< GH <,-,BA,8 :98 ;<70,2 G< <,-,BA, ;,< <,B19D =9?. !17D7V917GB GH 16, HD,,1 9D8G ;D9?,=9B 7J;G<19B1 <GD, 7B =,1,<J7B7BO ;<GH719>7D71? 9B= <,1A,< f2 3))3`.f 57J IA<1 9B= e7EE7 59712 [56, k7BO GH K,1<G71j M9B 7B 16, e,:8j I7DD %G<=2\ Financial Times2 eG-,J>,< c2

3))&.P I,<B9<= @7JGB2 [%G<= X71 >? %9DD7BO eG<16 #J,<709B @9D,82\ Financial Times2 YAD? &42 3))'.4 NB Y9BA9<? 3))& :6,B e988,< <,;A<0698,= X,<1V GA1819B=7BO 869<,82 %G<= ;97= bf&) J7DD7GB HG< 16, &P.'h GH

16, 0GJ;9B? 71 =7= BG1 9D<,9=? G:B. N1 ;97= bc'.') ;,< 869<, G< 9B &Ph ;<,J7AJ HG< X,<1V]8 869<,8. 56, 90WA78717GB7J;D7,= 9 -9DA, GH 9;;<GT7J91,D? bc.P >7DD7GB HG< X,<1V ,WA71? 91 16, 17J,.

$($ !"#$%$&'()

NJ;<G-,J,B1 7B 9B? GH 16,8, =<7-,<8 69= 16, ;G1,B179D 1G ?7,D= 8A>819B179D 7B0<,98,8 7B<,-,BA,. U716 1<9-,D H7B9DD? >,O7BB7BO 1G <,>GAB= 9H1,< 16, ,-,B18 GH 4R&&2 16, B,9<$1,<J J9<E,11<,B=8 9;;,9<,= H9-G<9>D,2 9B= J9B9O,J,B1 69= ;<Ga,01,= 1<9B89017GB -GDAJ, 1G O<G: (.4h 7B

3))'. U716 <,8;,01 1G ;<70,2 16, X,<1V ><9B= :98 ,T0,;17GB9DD? 81<GBO 9B= <,0GOB7V,= :G<D=:7=,.X,<1V 69= 86G:B 9B 9>7D71? 1G 8A8197B 9 ;<,J7AJ ;<707BO 81<91,O?2 :6706 :98 7B ;9<1 =A, 1G 718DG?9D 0A81GJ,< >98,. #D16GAO6 X,<1V :98 16, ;<70, D,9=,< 7B 16, J9<E,12 71 0GAD= BG1 7J;G8,67O6,< <91,8 7H 0GJ;,171G<8 06G8, BG1 1G HGDDG:.

X,<1V :98 GB, GH 16, D9<O,81 ;<7-91,$8,01G< ;A<0698,<8 GH B,: 09<8 7B 16, :G<D=. NB 3))g216, 0GJ;9B? G;,<91,= 9 ;,9E HD,,1 GH c))2))) 09<8 7B 16, !B71,= @191,8 9B= 9;;<GT7J91,D?&(42))) 7B 718 7B1,<B917GB9D G;,<917GB8. %D,,1 A89O, :98 67O6D? 8,98GB9Dn71 ;,9E,= 7B 16, 8,0GB=9B= 167<= WA9<1,<8 GH 16, ?,9< 9B= =,0D7B,= 7B 16, H7<81 9B= HGA<16 WA9<1,<8 98 D,78A<, 1<9-,D :9B,=.@7OB7H709B1 0G81 89-7BO8 0GAD= 9<78, H<GJ <7O61 87V7BO 16, HD,,1 _;A<06987BO 9B= =78;G87BO GH 09<8`1G J9106 8,98GB9D =,J9B=. X781G<709DD?2 X,<1V 69= ;A<0698,= 16, J9aG<71? GH 718 09<8 H<GJ %G<=2

>A1 7B <,0,B1 ?,9<82 71 69= JG-,= 1G =,0<,98, 718 <,D79B0, GB %G<= -,670D,8. NB ;9<12 1678 :98 7B<,8;GB8, 1G !.@. 9A1G J9BAH901A<,<8] =,0787GB 1G <,=A0, HD,,1 89D,8 1G >GD81,< 16,7< G:B ;<GH719>7D71?. 5678 69= 1:G ,HH,018 GB X,<1V 9B= 718 0GJ;,171G<8. %7<812 71 7B0<,98,= -,670D,8 0G8189B= 8,0GB=2 71 7B0<,98,= 16, ;<G;G<17GB GH [91 <78E\ -,670D,8 ;G1,B179DD? 8A>a,01 1G =,0D7B7BO<,87=A9D -9DA,8.&) #B 7B0<,98, 7B -,670D, 0G818 7B 3))( :98 ,T;,01,= 1G 7B0<,98, X,<1V]890WA78717GB 0G818 9B= 6,B0, HD,,1 09;719D 8;,B=7BO >? ;<G;G<17GB91,D? JG<, 169B 16, ;<,-7GA8?,9<.

56, I7==7BO L<GA; 0GJ;9<,= X,<1V :716 ;,,< H7<J8 9B= :716 718 G:B 6781G<709D <,8AD18 1G7=,B17H? 16, HGDDG:7BO G;,<917GB9D 89-7BO8.&&

&. CA<<,B1 9=aA81,= ZIN5K# J9<O7B8 :,<, 9;;<GT7J91,D? g)) >9878 ;G7B18 _>;8` >,DG:3))) D,-,D8 9B= :,<, &)) 1G 3)) >;8 >,DG: 16G8, GH #-78.

3. %<GJ 3))3 1G 3))'Z BGB$HD,,1$<,D91,= G;,<917BO ,T;,B8,8 69= 7B0<,98,= >? cPh 9B= 69=GA1;90,= <,-,BA, O<G:16 >? (h.

c. X,<1V]8 GHH$97<;G<1 O<G:16 81<91,O? 69= <,8AD1,= 7B 87OB7H709B1 DG88,8. 56, I7==7BO L<GA;:GAD= DGGE 1G <917GB9D7V, 1678 81<91,O?.

g. !.@. +#C]8 BGBHD,,1 09;719D ,T;,B=71A<,8 _C#FZo` 98 9 ;,<0,B19O, GH 89D,8 :,<,0GB87=,<9>D? 67O6,< 169B #-78]8 DGBO$1,<J C#FZo D,-,D8.

'. ZA<G;, +#C]8 @L^# 98 9 ;,<0,B19O, GH 89D,8 9B= GB 9 ;,<$=9? >9878 :,<, 16<,, 17J,867O6,< 169B 16G8, 7B 16, !B71,= @191,8.

&) KA<7BO 3))g2 X,<1V ;A<0698,= P'h GH 718 !.@. 9B= fgh GH 718 7B1,<B917GB9D 09<8 AB=,< HD,,1$<,;A<0698, ;<GO<9J8 :716 9A1GJG>7D, J9BAH901A<,<8. !B=,< 16,8, ;<GO<9J82 9A1GJG>7D, J9BAH901A<,<8 9O<,,= 1G <,;A<0698,16, 09<8 91 9 8;,07H7,= ;<70, 8A>a,01 1G 0,<197B 09< 0GB=717GB8 9B= J7D,9O, <,WA7<,J,B18. 56, <,;A<0698, ;<GO<9J8D7J71,= 16, <,87=A9D <78E 1691 X,<1V >G<, GB [;<GO<9J 09<8.\ 56, 9-,<9O, 6GD=7BO ;,<7G= HG< 9 B,: 09< :98 && JGB1687B 16, !B71,= @191,8 9B= P JGB168 7B 718 7B1,<B917GB9D G;,<917GB8.

&& CGB8G<17AJ 7B1,<B9D =G0AJ,B1917GB HG< X,<1V SI/.

$f$ !"#$%$&'()

(. XZ+C]8 <,1A, f).'h. I?0GJ;9<78GB2 16, <,1A<B8 HG< +@C 9B= !B71,= +,B19D8 :,<, ,T;,01,= 1G >, P'h 9B= &&(h2

<,8;,017-,D?.

#DD 1GD=2 16, I7==7BO L<GA; >,D7,-,= 1691 9B 9JGAB1 >,1:,,B bg)) J7DD7GB 9B=b()) J7DD7GB 7B 9BBA9D ZIN5K# 89-7BO8 _<,D917-, 1G 3))' D,-,D8` :98 91197B9>D, >? 3))4. 56,8,,817J91,8 GH G;,<917GB9D 7J;<G-,J,B18 :,<, 0GBH7<J,= >? ,T1,<B9D 7B=A81<? 9=-78G<8 :6G 69= >,,B 67<,= 98 ;9<1 GH =A, =7D7O,B0,.

56, I7==7BO L<GA; 69= 9D8G 09<,HADD? ,-9DA91,= X,<1V]8 J9B9O,J,B1 1,9J. 56, 0A<<,B1J9B9O,J,B1 1,9J 69= 0GB87=,<9>D, 7B=A81<? ,T;,<7,B0, >A12 ;9<179DD? 98 9 <,8AD1 GH %G<=]8 69B=8$GHH J9B9O,J,B1 81?D,2 16,? G;,<91,= 7B 9B 7B8AD9< J9BB,< 9B= 69= BG1 >,,B ;<,88A<,= 1G ,T0,D.56, ,T7817BO 0GJ;,B8917GB 81<A01A<, :98 >98,= GB J9<E,1 869<,2 9B= B,: 7B0,B17-, ;D9B8 :,<,

;D9BB,= 1691 :GAD= 19<O,1 0986 HDG: 9B= 09;719D A89O, J,1<708. NH <,JG-9D GH 16, 0A<<,B1 CZ/2C<97O kG062 ;<G-,= B,0,889<?2 9B ,T;,<7,B0,= J9B9O,<2 L,G<O, 59JE,2 69= >,,B 7=,B17H7,= 1G81,; 7B. 59JE,2 :6G :98 0A<<,B1D? 9 ;9<1B,< 91 CK^+2 :98 HG<J,<D? -70, 0697< 9B= 0G$CZ/ GHZJ,<8GB ZD,01<702 9B= 69= 8A00,88HADD? D,= CK^+]8 k7BEG]8 1<9B89017GB.

Financial Synergies

NB 9==717GB 1G G;,<917GB9D 89-7BO82 16, I7==7BO L<GA; 69= 7=,B17H7,= 8,-,<9D 8GA<0,8 GHH7B9B07BO -9DA,2 JG81 BG19>D? =,>1 1691 0GAD= >, >90E,= >? X,<1V]8 HD,,1 GH <,B19D 09<8 _988,1$ >90E,= 8,0A<717V,= =,>1`. I? 0GB1<9812 %G<= 69= G;1,= 1G <,D? J97BD? GB JG<, ,T;,B87-,AB8,0A<,= H7B9B07BO.

#88,1$>90E,= 8,0A<717V,= _#I@` =,>1 :98 9 HG<J GH H7B9B07BO 0GJJGBD? A8,= >?H7B9B079D 7B8171A17GB8 1G <,JG-, 7DD7WA7= 988,18 H<GJ 16,7< >9D9B0, 86,,18 _8A06 98 JG<1O9O,8 G<0<,=71 09<= <,0,7-9>D,8` 9B= <978, 0986 H<GJ 16,J. #I@ H7B9B07BO <,WA7<,= 16, 0<,917GB GH 98;,079D ;A<;G8, -,670D, _@F"` 1G H907D7191, 718 788A9B0,. #B @F" :98 8,1 A; 1G 9067,-, D,O9D78GD917GB GH 16, 988,18 H<GJ 16, G<7O7B9D 6GD=,< GH 16, 988,18 G< [G<7O7B91G<.\ 56, G<7O7B91G<0GB-,?,= 16, 988,18 1G 16, @F" _G< 1<A81`2 :6706 1<9B8H,<<,= G:B,<867; GH 16, 988,18 H<GJ 16,G<7O7B91G< 1G 16, 1<A81. 56, @F" :GAD= 16,B 788A, 8,0A<717,8 >90E,= >? 16, 988,18 GH 16, 1<A81. 56,7B1,<,81 9B= ;<7B07;9D GB 16, 8,0A<717,8 :,<, ;97= H<GJ 16, <,0,7;1 GH 0986 HDG:8 1691 9<G8, H<GJ16, 1<A81 988,18. I,09A8, 16, =,>1 788A,= >? 16, 1<A81 :98 BGB<,0GA<8, 1G 16, G<7O7B91G<2 9B7J;G<19B1 >,B,H71 GH #I@ :98 1691 16, 0<,=71 <917BO GB 16, =,>1 :98 >98,= GB 16, 1<A81 988,18<916,< 169B 16, G<7O7B91G<]8 988,18. 56, ;<G0,,=8 <978,= H<GJ 16, 89D, GH 988,1$>90E,= 8,0A<717,8 1G7B-,81G<8 :,<, <,1A<B,= 1G 16, G<7O7B91G<2 16,<,>? ,B9>D7BO 7DD7WA7= 988,18 GH 16, G<7O7B91G< 1G >,1A<B,= 7B1G 0986. #D16GAO6 #I@ H7B9B07BO8 :,<, 0GJJGB;D90,2 1678 HG<J GH H7B9B07BO 69= B,-,< >,,B A8,= 7B 9 >A?GA1 >,HG<, X,<1V.

NB X,<1V]8 098, 9B @F" _[+#C %D,,1\` :GAD= >, 8,1 A; 1G <,197B D,O9D G:B,<867; GH 16,<,B19D 09< HD,,1 9B= 718 988G0791,= =,>1. X,<1V :GAD= J9E, ;9?J,B18 7B 16, 9JGAB1 GH 16, HD,,1

$P$ !"#$%$&'()

=,;<,07917GB 9B= 7B1,<,81 1G +#C %D,,12 8A06 1691 71 ,HH,017-,D? 8GD= 16, HD,,1 1G 16, @F" 9B= 16,BD,98,= 71 >90E _7.,.2 16, =,;<,07917GB 9B= 7B1,<,81 ;9?J,B18 ,HH,017-,D? <,;<,8,B1,= 16, G;,<917BOD,98, ;9?J,B18`. %A<16,<JG<,2 98 X,<1V 90WA7<,= _=,;G8,= GH` 09<82 71 69= 9O<,,J,B18 1G 7B0<,98,

_=,0<,98,` 16, #I@ =,>1. NB-,81G<8 :6G ;A<0698,= #I@ =,>1 :GAD= >, ;97= 16<GAO6 16, D,98, ;9?J,B18 X,<1V <,J711,= 1G +#C %D,,1. 56<GAO6 9 0GJ>7B917GB GH 16,8, ;9?J,B18 9B= 0<,=71,B69B0,J,B1 _7B0DA=7BO 16, ;A<0698, GH 7B8A<9B0, HG< 16, #I@ 988,18`2 X,<1V 6G;,= 1G >, 9>D, 1G<978, b(.& >7DD7GB 7B 8,0A<,= =,>1 91 9B ### <917BO2 :6706 :98 0GB87=,<9>D? 67O6,< 169B X,<1V]80A<<,B1 <917BO GH III−. 56, #I@ =,>1 09<<7,= 9 DG: 7B1,<,81 <91, HG< SI/$1?;, H7B9B07BO2,817J91,= 91 9>GA1 g.'h.&3

56, I7==7BO L<GA; >,D7,-,= 71 6,D= 9 =7817B01 9=-9B19O, :716 <,8;,01 1G H7B9B07BO. Z9<D?7B 16, ;<G0,882 71 69= ,B1,<,= 7B1G 9 H7B9B07BO 9<<9BO,J,B1 :716 S,6J9B I<G16,<8 9B= K,A1806,I9BE 1G ;<G-7=, #I@ =,>1 H7B9B07BO HG< 16, 1<9B89017GB. S,6J9B I<G16,<8 9B= K,A1806, I9BE6,D= 9 4)h J9<E,1 869<, 7B 16, #I@ J9<E,1 HG< <,B19D 09< H7B9B07BO. eG1 GBD? :98 16, #I@ =,>1

D,88 ,T;,B87-, >A1 71 9D8G ;<G-7=,= 9 JG<, HD,T7>D, H7B9B07BO 9<<9BO,J,B1 1691 9DDG:,= HG< 16,=,>1 1G 7B0<,98, 9B= =,0<,98, :716 HD,,1 87V,.

Deal Structure

L7-,B 16, D9<O, =,9D 87V,2 16, #I@ =,>1 :98 BG1 16, GBD? 8GA<0, GH H7B9B07BO B,,=,= 1GH7B9B0, 16, >A?GA1. Exhibit 5 86G:8 16, ;<G;G8,= H7B9B07BO HG< 16, 1<9B89017GB. #D16GAO6 b&2g))J7DD7GB GH ,T7817BO =,>1 :GAD= <GDD G-,<2 HG< 16, JG81 ;9<12 C9<D?D, 9B= 16, 0GB8G<17AJ J,J>,<8 ;D9BB,= 1G <978, B,: =,>1 1G H7B9B0, 16, =,9D. NB 1G19D2 16, BGB,WA71? HAB=7BO HG< 16, 1<9B89017GB:98 9;;<GT7J91,D? b&3.' >7DD7GB.&c

NB 16, 8AJJ,< GH 3))'2 16, =,>1 9B= SI/ J9<E,1 69= <,0G-,<,= H<GJ 16, DG:8 HGDDG:7BO16, 3))& 8DG:=G:B. @,B7G< =,>12 :6706 69= H9DD,B 1G 3.cPp ZIN5K# 7B 3))32 69= 87B0,<,0G-,<,= 1G c.3gp ZIN5K# 7B 3))g. %A<16,< <,D9T917GB GH D,B=7BO 819B=9<=8 69= G00A<<,= G-,<16, 0GA<8, GH 3))' 9B= 8,B7G< =,>1 JAD17;D,8 :,<, ,T;,01,= 1G 0DG8, 9>G-, gp ZIN5K# >? ?,9<,B= 3))'. K,9D -9DA917GB 69= HGDDG:,= 8A71n;A<0698,$;<70, JAD17;D,82 :6706 69= H9DD,B 1G9<GAB= (p ZIN5K# 7B 3))&2 69= ,T;9B=,= 1G JG<, 169B Pp ZIN5K# 7B 3))'. Exhibit 6 86G:816, <,0,B1 6781G<? GH =,>1 9B= ;A<0698, ;<70, JAD17;D,8.

&3 #D16GAO6 16, #I@ =,>1 :98 HDG917BO <91,2 16,<, :,<, 8:9; 9O<,,J,B18 1G 6,=O, 7B1,<,81$<91, <78E 8A06 1691 9OGG= ;G<17GB GH 16, 7B1,<,81 ;9?J,B18 :GAD= >, 91 9 H7T,= <91, <916,< 169B 9 HDG917BO <91,. 56, 098, 988AJ,8 H7T,=$<91, ;9?J,B18. 56, 7B1,<B917GB9D #I@ =,>1 :98 ,817J91,= 1G 69-, 9 67O6,< 7B1,<,81 <91, GH g.4h.

&c 56,<, :,<, 8,-,<9D 71,<917GB8 GH 16, ,817J91,= H7B9B07BO HG< 16, 1<9B89017GB. 56, H7B9B07BO 86G:B 7B Exhibit 5 78 0DG8,< 1G 16, 901A9D H7B9B07BO A8,=. %D,T7>7D71? :98 >A7D1 7B1G 16, H7B9B07BO 16<GAO6 16, 1,<J DG9B H907D71? 9B= 9 HD,,1H7B9B07BO H907D71? _:6706 :98 ABHAB=,= 91 0DG8,`.

$4$ !"#$%$&'()

Valuation of Hertz

56, I7==7BO L<GA; ;D9BB,= 1G 8,1 A; >G16 +#C 9B= XZ+C 98 8,;9<91, D,O9D ,B1717,8

:7167B 9 6GD=7BO 0GJ;9B? B9J,= [X,<1V CG<;G<917GB\ G< [X,<1VCG\n7B ;9<1 =A, 1G 16, =,0787GB1G A8, #I@ H7B9B07BO2 9B= >,09A8, D91,< 71 J7O61 H907D7191, 8,;9<91, =78;G89D8 GH 16, ;<G;,<17,8.X,<1VCG 0GB8781,= GH 16, 1:G >A87B,88 8,OJ,B18j +#C 9B= XZ+C. +#C :98 J9=, A; GH +#C/;,<917BO CGJ;9B? _/;CG`2 :6706 6,D= 0D97J 1G 16, 0986 HDG:8 9B= BGBHD,,1 988,18 GH 16, 09<<,B19D 0GJ;9B?2 9B= +#C %D,,12 16, 8A>87=79<? :6706 6GA8,= 16, <,B19D 09< HD,,1. XZ+C 6,D=0D97J 1G 16, 0986 HDG:8 9B= 988,18 GH 16, ,WA7;J,B1 <,B19D >A87B,88. 5678 81<A01A<, :98 E,? 1G-9DA7BO X,<1VCGn16, -9DA, GH +#C 9B= XZ+C 0GAD= >, =,1,<J7B,= 8,;9<91,D? 9B= 16,B 9==,=1GO,16,< 1G =,1,<J7B, 16, 1G19D ,B1,<;<78, -9DA, GH X,<1VCG. 56, -9DA, GH ,WA71? 7B 1A,=,1,<J7B,= >? 8A>1<9017BO 16, 1G19D G;,<917BO 0GJ;9B? 9B= HD,,1 =,>1 H<GJ ,B1,<;<78, -9DA,. @,,Exhibit 7 HG< 9 =,197D,= <,;<,8,B1917GB.

+#C 0GAD= >, -9DA,= >? 9;;D?7BO 9B 9;;<G;<791, JAD17;D, 1G +#C /;CG]8 G;,<917BOHDG:8 9B= 16,B 9==7BO 16, B,1 >GGE -9DA, GH 16, HD,,1.&g KA, 1G 718 <,D917-,D? 86G<1 D7H,2 16, HD,,169= 9 H97<D? 1<9B8;9<,B1 J9<E,1 -9DA,2 :6706 :98 :,DD 9;;<GT7J91,= >? 718 >GGE -9DA,. I,09A8,GH 16, #I@ =,>12 16, G;,<917BO 0GJ;9B?]8 HDG:8 69= 1G >, 9=aA81,= 1G <,HD,01 16, =,;<,07917GB9B= 7B1,<,81 ;9?J,B18 J9=, 1G +#C %D,,1. NB ,88,B0,2 16, 8,<-70, G>D7O917GB8 GB 16, HD,,1 69= 1G >, J,1 >,HG<, 16, ;<G-7=,<8 GH SI/ H7B9B07BO :,<, ;97=. +#C #=aA81,= ZIN5K# :98 16,<,HG<,+#C L<G88 ZIN5K# D,88 HD,,1 =,;<,07917GB 9B= HD,,1 7B1,<,81. XZ+C 0GAD= >, -9DA,= >?9;;D?7BO 9B 9;;<G;<791, JAD17;D, 1G XZ+C L<G88 ZIN5K# _+,-,BA,8 D,88 K7<,01 /;,<917BO 9B=@L^# ZT;,B8,8`.&' XZ+C =7= BG1 A17D7V, #I@ =,>1 >,09A8, 16, J9<E,1 -9DA, GH ,WA7;J,B1<,B19D8 :98 D,88 1<9B8;9<,B1 _=A, 1G DGBO,< D7-,8 9B= =7-,<8, A89O,8`.

Exhibits 8 9B= 9 0GB197B 9 >98,$098, ;<G HG<J9 7B0GJ, 8191,J,B1 9B= >9D9B0, 86,,1 :716 ;<Ga,017GB8 HG< 3))(m&). L7-,B ;<Ga,01,= ,B;D9B,J,B182 09<$<,B19D O<G:16 :98 ,817J91,= 1G 8DG:1G g.'h >? 3))4 9B= 819>7D7V, 91 1691 D,-,D. 56GAO6 16, ,WA7;J,B1 <,B19D J9<E,1 69= 819<1,= 1G<,>GAB= H<GJ 9 0?0D709D 8DG:=G:B2 ,WA7;J,B1 <,B19D O<G:16 91 X,<1V 69= >,,B JA06 JG<,-9<79>D,2 9B= 71 :98 ,-,B1A9DD? ,T;,01,= 1G =,0D7B, G-,< 17J, 9B= 1G 819>7D7V, 91 ch >? 3)&). 56, >98,$098, ,817J91,8 >A7D= 7B 16, DG: ,B= GH bg)) J7DD7GB 7B G;,<917GB9D 89-7BO8 G-,< 17J, 9B=7B0G<;G<91, 16, 8,OJ,B1 <,-,BA, O<G:16 <91,8 BG1,= 9>G-,. +#C HD,,1 ,T;,B=71A<,8 _9B= #I@=,>1` :,<, ,T;,01,= 1G 7B0<,98, 98 9 ;,<0,B19O, GH 89D,8 =A, 1G 67O6,< -,670D, 0G8182 D,9=7BO 1G0G<<,8;GB=7BO 7B0<,98,8 7B +#C =,;<,07917GB.&(

Exhibit 10 0GJ>7B,8 16, G;,<917BO 0986 HDG:8 GH 16, 1:G =7-787GB8 9B= ;<G-7=,8 0986$HDG: ;<Ga,017GB8 HG< 3))(m&). #D16GAO6 71 :98 BG1 ;G887>D, 1G =7<,01D? ,817J91, 9 >,19 HG< X,<1V2

&g N1 :98 0GJJGB 7B=A81<? ;<90170, 1G -9DA, 16, <,B19D HD,,1 8,;9<91,D? H<GJ 16, G;,<917BO 0GJ;9B?.&' FA<0698, ;<70, 9B= G16,< =,9D J,1<708 :,<, >98,= GB X,<1V CG<;G<91, ZIN5K#2 :6706 :98 16, 1G19D GH 16,

G;,<917BO HDG:8 GH 718 1:G >A87B,88 AB718 _7.,.2 16, 8AJ GH +#C #=aA81,= ZIN5K# q XZ+C L<G88 ZIN5K#`.&( UG<E7BO 09;719D _B,1 GH 0986` :98 988AJ,= 1G >, J97B197B,= 91 3))' ;,<0,B19O,8 HG< 16, JG81 ;9<12 16GAO6

<,0,7-9>D,8 9<787BO H<GJ <,;A<0698,8 GH 09<8 >? J9BAH901A<,<8 :,<, ;<Ga,01,= 1G =,0D7B, 98 9 ;,<0,B19O, GH 89D,8. e,0,889<? 0986 _0986 9B= 0986 ,WA7-9D,B18 D7B, 71,J` :98 8,1 91 3h GH 89D,8. 56, ;<Ga,017GB8 9D8G >A7D1 7B 9 8J9DD7B0<,98, 7B XZ+C ,WA7;J,B1 ,HH707,B0?. FFZ2 B,1 _BGBHD,,1 FFZ`2 :98 ,T;,01,= 1G =,0D7B, JG<, 87OB7H709B1D? 98 9 ;,<0,B19O, GH 89D,8.

$&)$ !"#$%$&'()

0GJ;9<9>D, 0GJ;9B? ,WA71? >,198 :,<, 9<GAB= &.'2 :67062 :6,B =,$D,-,<,=2 ?7,D=,= ABD,-,<,= >,198 GH 9;;<GT7J91,D? ).(). IA1 16,<, :98 9 :7=, <9BO, 1G 16,8, ,817J91,8. NB1,<,81 <91,8 98 GH#AOA81 3))' 9B= J9<E,1 JAD17;D,8 9<, 86G:B 7B Exhibit 11.

The Decision

#B? >7= ;A1 HG<16 >? 16, I7==7BO L<GA; HG< X,<1V :GAD= 69-, 1G 89178H? 16<,, 0<71709D1,818. %7<812 71 :GAD= 69-, 1G ;<G-7=, 9=,WA91, <,1A<B8 1G 16, 8;GB8G<8] D7J71,= ;9<1B,<8. @,0GB=2 71:GAD= 69-, 1G >, 67O6,< 169B %G<= 0GAD= <,0,7-, H<GJ 9B NF/. 567<=2 16, >7= :GAD= 69-, 1G >,811691 GH 16, <7-9D >7==7BO O<GA;.

57J, :98 =<9:7BO 1G 9 0DG8,2 9B= C9<D?D, 9B= 718 ;9<1B,<8 B,,=,= 1G H7B9D7V, 16,7< >7=.S,=HG<= EB,: 1691 678 7B-,81J,B1 0GJJ711,, :GAD= BG1 GBD? >, E,,BD? 7B1,<,81,= 7B 16, ;G887>D,

<,1A<B8 16,? 0GAD= ,T;,01 H<GJ X,<1V2 >A1 9D8G 7B 678 -7,:8 GB 16, <78E8 GH 16, =,9D 9B= >7==7BO81<91,O?. #D16GAO6 JA06 :G<E 69= >,,B =GB,2 JA06 JG<, D9? 96,9=. N1 :98 BG1 1A<B7BO GA1 1G >,16, -90917GB 6, ;D9BB,=.

$ & & $

! " # $ % $ & ' ( )

Z T 6 7 > 7 1 &

B I D D I N G F O R H E R T Z : L E V E R A G E D B U

Y O U T

X , < 1 V / : B , < 8 6 7 ; X 7 8 1 G < ?

@ G A < 0 , j X , < 1 V C G < ; G < 9 1 7 G B .

1 9 2 0

1 9 3 0

1 9 4 0

1 9 9 0

2 0 0 0

2 0 1 0

1 9 5 0

1 9 6 0

1 9 7 0

1 9 8 0

1 9 1 0

1 9 1 8 : U 9 D 1 , <

S . Y 9 0 G > 8

> , O 7 B 8

G ; , < 9 1 7 G B 8

: 7 1 6 & 3 M G = , D

5 % G < = 8 .

1 9 6 7 : + C #

; A < 0 6 9 8 , 8

0 G B 1 < G D D 7 B O 7 B 1 , < , 8 1

7 B X , < 1 V C G < ; . 9 B =

0 < , 9 1 , 8 : 6 G D D ?

G : B , = 8 A > 8 7 = 7 9 < ? .

1 9 2 6 : L , B , < 9 D

M G 1 G < 8 C G < ;

9 0 W A 7 < , 8 X , < 1 V

; < G ; , < 1 7 , 8 H < G J

Y G 6 B X , < 1 V 9 8 ; 9 < 1

G H d , D D G : 5 < A 0 E

1 < 9 B 8 9 0 1 7 G B .

1 9 5 3 – 5 4 : / J B 7 > A 8

C G < ; . ; A < 0 6 9 8 , 8 X , < 1 V

; < G ; , < 1 7 , 8 H < G J

L M C

0 G J ; 9 B ? i < , B 9 J

, =

X , < 1 V C G < ; G < 9 1 7 G B 9 B =

D 7 8 1 , = G B e d @ Z .

1 9 2 3 : Y G 6 B X , < 1 V

; A < 0 6 9 8 , 8

G ; , < 9 1 7 G B 9 B =

< , B 9 J , 8 1 G

[ X , < 1 V K < 7 - , $ ! < $

@ , D H @ ? 8 1 , J . \

1 9 8 7 : X

, < 1 V 8 G D = 1 G % G < =

M G 1 G < C

G . 1 6 < G A O 6 F 9 < E

+ 7 = O , C

G < ; . 9 0 W A 7 8 7 1 7 G B

8 A > 8 7 = 7 9 < ? i " G D - G

> , 0 G J , 8 7 B - , 8 1 G < G B ,

? , 9 < D 9 1 ,

< .

1 9 9 7 : X , < 1 V

> , 0 G J , 8 9

; A > D 7 0 D ? 1 < 9 = , =

0 G J ; 9 B ? G H 1 6 ,

e d @ Z .

2 0 0 1 : X , < 1 V

> , 0 G J , 8 : 6 G D D ?

G : B , = 8 A > 8 7 = 7 9 < ? G H

% G < = A ; G B

< , 9 0 W A 7 8 7 1 7 G B G H

; A > D 7 0 8 6 9 < , 8 .

2 0 0 5 : X , < 1 V

; A 1 A ; H G < 8 9 D ,

> ? % G < = .

$&3$ !"#$%$&'()

ZT67>71 3


X,<1V X781G<709D CGB8GD7=91,= NB0GJ, @191,J,B1_b J7DD7GB8`

2002 2003 2004 2005E(1)

RAC

+,-,BA, bg2'g3.f bg2P'3.3 b'2g4).& b(2)'&.f

K7<,01 G; ,T ^ @L^# 32(f(.c 324gc.4 c2c4c.4 c2Pg'.3

L<G88 ZIN5K# &2P((.g &24)P.c 32)4(.3 323)(.'

%D,,1 =,;<,07917GB &23&(.f &23'(.g &23c&.4 &2c(3.3

%D,,1 7B1,<,81 3f).4 3f(.3 c&).3 cP).&

#=aA81,= ZIN5K# cfP.P cf'.f ''g.& g(g.3

HERC

+,-,BA, &2)4'.f &2)P&.' &2&P'.4 &2c'P.)

K7<,01 G; ,T ^ @L^# f33.3 f&f.4 fg4.( P)'.&

L<G88 ZIN5K# cfc.' c(c.( gc(.c ''3.4

%D,,1 =,;<,07917GB 3P3.P 3(f.) 3c&.g 33P.)

%D,,1 7B1,<,81 4'.g fP.4 fg.c 4(.(

#=aA81,= ZIN5K# mg.f &f.f &c).( 33P.c

5G19D 9=aA81,= ZIN5K# cfg.& c4c.g (Pg.f (43.'

eGBHD,,1 =,;<,07917GB &'f.( &'(.) &P3.f &Pg.f

/;,<917BO 0GJ;9B? 7B1,<,81 ,T;,B8, ).) ).) ).) ).)

Pretax Income 3&(.' 3cf.g ')3.) ')f.P

IGGE 19T,8 ff.4 P'.' &P).f &P3.4

M7BG<71? 7B1,<,81 ).) ).) c.3 4.f

Net Income $138.6 $151.9 $321.3 $324.9

_&` +,HD,018 ;<,$SI/ ,817J91,= B,1 7B0GJ, HG< 3))'.

K919 8GA<0,j CGB8G<17AJ 7B1,<B9D =G0AJ,B1917GB.

$&c$ !"#$%$&'()

ZT67>71 c


X,<1V X781G<709D CGB8GD7=91,= I9D9B0, @6,,1_b J7DD7GB8`

2002 2003 2004 2005E_&`

AssetsC986 9B= ,WA7-9D,B18 ()&.c &2&&).& &23cf.4 &2&)3.4%D,,1 0986 ,B69B0,J,B1 ).) ).) ).) ).)#00GAB18 <,0,7-9>D, f44.& &2c)P.3 &233'.& &2))g.3M9BAH901A<,< <,0,7-9>D,8 gfc.P '&&.4 ()).& (34.fNB-,B1G<7,8 f&.P fc.g Pc.c 43.fF<,;97= ,T;,B8,8 Pc.P 4).c &)).& &&c.&

/16,< 988,18 g3.c g'.( gg.& c(.'5G19D 0A<<,B1 988,18 32)f3.& c2&c4.' c234).( 324f4.&

%D,,12 B,1 f2g3'.P f2f4c.c 42&33.4 42f(f.cFF^Z B,1 &2&&&.P &2&(4.P &23c(.3 &2c'g.(ZT7817BO 0GG=:7DD ^ 7B19BO7>D,8 '&4.) 'c(.4 'gg.g 'cg.( e,: OGG=:7DD ^ 7B19BO7>D,8 ).) ).) ).) ).)

5G19D 988,18 &&2&3P.f &32(c4.' &g2&4g.& &g2(c'.(

Liabilities & Stockholders’ Equity#00GAB18 ;9?9>D, ')(.3 f'f.4 fP(.) f'P.)#00<A,= D79>7D717,8 fP4.g fc(.g Pc'.f P&4.f#00<A,= 19T,8 '3.P &&&.g &c).& &34.c

5G19D 0A<<,B1 D79>7D717,8 &2cgP.g &2()'.f &2f'&.P &2f)f.)5G19D DGBO$1,<J =,>1 f2)gc.3 f2(3f.4 P2g3P.) 42&P).c

FA>D70 D79>7D71? ^ ;<G;,<1? =9J9O, c'c.' c4P.P c4&.f cfg.cK,H,<<,= 19T,8 g(3.& f3&.3 Pg4.f (c(.)CGJJ71J,B18 ^ 0GB17BO,B07,8 ).) ).) ).) ).)M7BG<71? 7B1,<,81 ).) ).) g.4 &3.f

5G19D D79>7D717,8 423)f.3 &)2c'c.( &&2g3(.& &&24&).c

5G19D ,WA71? &243&.P 323P'.P 32f(f.4 32f3'.45G19D D79>7D717,8 ^ ,WA71? &&2&34.) &32(c4.g &g2&4g.) &g2(c(.3

_&` +,HD,018 ;<,$SI/ ,817J91,= >9D9B0, 86,,1 HG< 3))'. @J9DD =7HH,<,B0,8 7B 6781G<709D 1G19D 988,18 9B=1G19D D79>7D717,8 9B= ,WA71? 7B 3))3m)g 9<, =A, 1G <GAB=7BO.

K919 8GA<0,j CGB8G<17AJ 7B1,<B9D =G0AJ,B1917GB.

$&g$ !"#$%$&'()

ZT67>71 g


!.@. +,B19D C9< M9<E,1 +,-,BA,8 _&44(m3))'`_b >7DD7GB8`

K919 8GA<0,j Auto Rental News, 3))(.

$ & ' $

! " # $ % $ & ' ( )

Z T 6 7 > 7 1 '


Y O U T

F < G ; G 8 , = % 7 B 9 B 0 7 B O H G < 1 6 , X , < 1 V I A ? G A

1

# J G A B 1

_ b J 7 D D 7 G B 8 `

5 ? ; , G H @ , 0 A < 7 1 ?

+ 9 1 ,

5 , < J 8

b g 2 c ) )

! . @ . # I @

8 , 0 A < , = B G 1 , 8

g . ' ) h

C G A D = 7 B 0 < , 9 8 , : 7 1 6 B , : 0 9 < ; A < 0 6 9 8 , 8 2 8 A > a , 0 1 1 G

H D , , 1 , W A 7 1 ? < , W A 7 < , J , B 1 _ & `

b & 2 P ) )

N B 1 , a , 0 1 1 G

H D , , 1 , W A 7 1 ? < , W A 7 < , J , B 1 _ & `

b ( ) )

Z T 7 8 1 7 B O #

I @ = , > 1

g . ) ) h

b ( 2 f ) )

5 G 1 9 D Z 8 1 7 J 9 1 , = + # C % D , , 1 R # I @ = , > 1

b & 2 P ) )

5 , < J S G 9 B % 9 0 7 D 7 1 ?

P . ) ) h

Z 8 1 7 J 9 1 , =

_ H D G 9 1 7 B O ` < 9 1 , i f $ ? , 9 < 1 , < J i

< , ; 9 ?

G <

< , H 7 B 9 B 0 ,

7 B f ? , 9 < 8

b g ) )

@ , B 7 G < # I

S % 9 0 7 D 7 1 ?

f . ) ) h

Z 8 1 7 J 9 1 , =

_ H D G 9 1 7 B O ` < 9 1 ,

b 3 ) )

@ , B 7 G < Z A < G B G 1 , 8

f . P P h

I A D D , 1 9 J G < 1 7 V 9 1 7 G B 2 = A , 7 B 3 ) & g

b 3 2 ) ) )

@ , B 7 G < ! B

8 , 0 A < , = B G 1 , 8

P . P f ' h

I A D D , 1 9 J G < 1 7 V 9 1 7 G B 2 = A , 7 B 3 ) & g

b P ) )

Z T 7 8 1 7 B O @

, B 7 G < e G 1 , 8

f . ) h

" 9 < ? 7 B O J

9 1 A < 7 1 7 , 8 1 G 3 ) 3 P

b ( ) )

@ , B 7 G < @ A > G < = 7 B 9 1 , = B G 1 , 8

& ) . ' ) h

I A D D , 1 9 J G < 1 7 V 9 1 7 G B 2 = A , 7 B 3 ) & (

b & 3 2 ' ) )

5 G 1 9 D K , >

1

/ 1 6 , < @ G A < 0 , 8

b 3 2 c ) )

@ ; G B 8 G < , W A 7 1 ?

b & g 2 P ) )

5 G 1 9 D ; 9 ? J , B 1 H G < 9 8 8 , 1 8 _ 3 `

_ & `

5 6 , < , : 9 8 9 & ) h 1 G 3 ) h H D , , 1 , W A 7 1 ? < , W A 7 < , J , B 1 2 = , ; , B = , B 1 G B 1 6 , H 7 B 9 B 0 7 9 D 8 1 < , B O 1 6 G H 1 6 , - ,

6 7 0 D , 8 A ; ; D 7 , < . 5 6 , H D , , 1 , W A 7 1 ? < , W A 7 < ,

J , B 1 : 9 8 9 8 8 A J , = 1 G

9 - , < 9 O , & c h G H 1 6 ,

> G G E - 9 D A , G H 1 6 , H D , , 1 .

_ 3 ` 5 6 , , T ; , 0 1 , = 1 < 9 B 8 9 0 1 7 G B H , , 8 9 ; ; < G T 7 J 9 1 , = 1 6 , 9 J G A B 1 G

H , 8 1 7 J 9 1 , = , T 0 , 8 8 0 9 8 6 9 B = 6 , B 0 , > G 1 6 B , 1 1 G V , < G 9 B = 9 < , 7 O B G < , = H G < 8 7 J ; D 7 0 7 1 ? 7 B 1 6 , 0 9 8 , .

@ G A < 0 , j C G B 8 G < 1 7 A J

= G 0 A J , B 1 9 1 7 G B 2 X , < 1 V L D G > 9 D X G D = 7 B

O 8 2 N B 0 . H G < J @ $ & # 2 & & R & c R 3 ) ) ( 2 9 B = 0 9 8 , : < 7 1 , < , 8 1 7 J 9 1 , 8 .

$&($ !"#$%$&'()

ZT67>71 (


K,>1 9B= FA<0698,$F<70, MAD17;D,8 HG< S,-,<9O,= IA?GA18 L<,91,< 169B b') M7DD7GB _&`

_&` FA<0698, F<70, MAD17;D, ,WA9D8 16, 8AJ GH @,B7G<2 @A> K,>12 /16,<82 9B= ZWA71? JAD17;D,8.

K919 8GA<0,j @19B=9<= ^ FGG<]82 9 =7-787GB GH 16, M0L<9:$X7DD CGJ;9B7,82 NB0.

$&f$ !"#$%$&'()

ZT67>71 f


"9DA917GB @06,J9170 HG< X,<1V 5<9B89017GB

RAC Operating CompanyF<G %G<J9 #=aA81,= ZIN5K# _&`

p #=aA81,= ZIN5K# MAD17;D,

= Operating Company Value

RAC Fleet%D,,1 IGGE "9DA,

− +,WA7<,= %D,,1 ZWA71? _3`

= Net Book Value of Fleet

HERC Segment Value

L<G88 ZIN5K#p ZIN5K# MAD17;D,

= HERC Transaction Value

Total RAC Segment Value

/;,<917BO CGJ;9B? "9DA,q %D,,1 "9DA,

= RAC Transaction Value

HertzCo Total Enterprise Value+#C @,OJ,B1 "9DA,

q XZ+C @,OJ,B1 "9DA,

= Total Transaction Value

_&`

F<G %G<J9 #=aA81,= ZIN5K# r L<G88 ZIN5K# m %D,,1 K,;<,07917GB 9B= %D,,1 NB1,<,81_3`

56,<, :98 9 &)h 1G 3)h HD,,1 ,WA71? <,WA7<,J,B12 =,;,B=,B1 GB 16, 1,<J8 GH 16, -,670D, 8A;;D7,<. 56, HD,,1,WA71? <,WA7<,J,B1 :98 988AJ,= 1G 9-,<9O, &ch GH 16, >GGE -9DA, GH 16, HD,,1.

@GA<0,j CGB8G<17AJ 7B1,<B9D =G0AJ,B1917GB2 9=9;1,= >? 098, :<71,<.

$&P$ !"#$%$&'()

ZT67>71 P


F<Ga,01,= NB0GJ, @191,J,B1_b J7DD7GB8`

3))' F%_&` 3))( 3))f 3))P 3))4 3)&)

Business Segments:

RAC+,-,BA, (2)'&.f (2'c'.P (244c.c f2g&3.4 f2fPc.( P2&cc.4

K7<,01 G; ,T ^ @L^# c2Pg'.3 g2)3'.c g23c&.) g2g''.& g2()'.( g2P3P.3L<G88 ZIN5K# 323)(.' 32'&).' 32f(3.c 324'f.P c2&fP.) c2c)'.f

%D,,1 =,;<,07917GB &2c(3.3 &2'gg.f &2('3.4 &2f'3.) &2Pc4.( &2433.g%D,,1 7B1,<,81_3` c((.) g)P.& gg4.' gf4.) ')'.( '34.4

#=aA81,= ZIN5K# gfP.c ''f.f (().) f3(.P Pc3.f P'c.g

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%D,,1 =,;<,07917GB 33P.) 3g4.' 3(4.' 3P'.f 34P.' c)f.'%D,,1 7B1,<,81 ).) ).) ).) ).) ).) ).)

#=aA81,= ZIN5K# c3g.4 cP&.& g3g.P g''.( gP4.& ')&.4

Hertz Corporation (HertzCo)5G19D 9=aA81,= ZIN5K# P)c.3 4cP.P &2)Pg.P &2&P3.c &2c3&.P &2c''.c

+#C BGBHD,,1 =,;<,07917GB &g'.4 &'g.g &'4.) &(&.) &(c.) &('.)XZ+C BGBHD,,1 =,;<,07917GB cP.P g&.P gc.) g'.) g(.) gf.)

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f-1560 - bidding for hertz - lbo

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