2Q07FINAL

Second Quarter 2007

July 25, 2007

Earnings Conference Call

2

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, 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 Fleet Management Solutions 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, new accounting pronouncements, rules or interpretations, 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.

3

Contents

► Second Quarter 2007 Results Overview► Asset Management Update► Earnings Outlook► Q & A

4

2nd Quarter Results Overview

►

Earnings per diluted share were $1.07 versus $1.13 in 2Q06–

2Q06 included an $0.11 income tax benefit

►

Comparable earnings per diluted share were $1.07, up 5% from $1.02 in 2Q06

–

2Q07 included $0.01 restructuring charge related to early debt retirement

►

Total revenue up 4% (and operating revenue up 4%) primarily as a result of contractual revenue growth in the Supply Chain and Fleet Management Solutions business segments

►

Fleet Management Solutions (FMS) total revenue down 1% (but operating revenue up 2%) vs. prior year

–

Fuel revenue down 8%►

Contractual revenue increased 7%•

Full service lease revenue up 6% and contract maintenance revenue up 18%►

Commercial rental revenue down 15%

►

FMS net before tax earnings (NBT) up 3%

–

FMS NBT percent of operating revenue up 10 basis points to 13.1%

►

FMS earnings positively impacted by improved lease and contract maintenance results as well as lower pension and incentive based compensation costs, partially offset by lower commercial rental and used vehicle sales results

5

2nd Quarter Results Overview (cont’d)

►

Supply Chain Solutions (SCS) total revenue up 16% (and operating revenue up 13%) vs. prior year, reflecting new/expanded business

►

SCS net before tax earnings (NBT) down 14%

–

Comparable results flat excluding a $2.5 million benefit in 2Q06

related to a contract termination

–

SCS NBT percent of operating revenue of 4.7%, down 150 basis points or down 60 basis points excluding 2Q06 contract termination benefit

►

SCS earnings positively impacted by new/expanded business, offset by a significant automotive plant closure

►

Dedicated Contract Carriage (DCC) total revenue down 2% (and operating revenue down 1%) vs. prior year due to decreased subcontracted transportation revenue and lower fuel cost pass throughs

►

DCC net before tax earnings (NBT) up 12%

–

DCC NBT percent of operating revenue up 110 basis points to 9.1%

►

DCC earnings positively impacted by lower safety and insurance costs as well as improved operating performance

6

Key Financial Statistics

2007 2006 % B/(W)

Operating Revenue (1)(2) 1,157.1$ 1,111.1$ 4%

Fuel Services and Subcontracted Transportation Revenue 500.9 484.6 3%

Total Revenue 1,658.0$ 1,595.7$ 4%

Earnings Per Share 1.07$ 1.13$ (5%)

Comparable Earnings Per Share (1) 1.07$ 1.02$ 5%

Memo:EPS Impact of Restructuring (0.01)$ -$ Average Shares (Millions) - Diluted 61.1 62.0 Tax Rate 37.6% 32.8% (3)

Second Quarter

(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.

(3)

2006 EPS includes $0.11 benefit from tax law changes

($ Millions, Except Per Share Amounts)

7

Key Financial Statistics

2007 2006 % B/(W)

Operating Revenue (1)(2) 2,276.3$ 2,168.6$ 5%

Fuel Services and Subcontracted Transportation Revenue 975.8 923.4 6%

Total Revenue 3,252.1$ 3,092.0$ 5%

Earnings Per Share 1.90$ 1.91$ (1%)

Comparable Earnings Per Share (1) 1.90$ 1.80$ 6%

Memo:EPS Impact of Restructuring (0.02)$ -$ Average Shares (Millions) - Diluted 61.1 61.7 Tax Rate 38.5% 35.9% (3)

Adjusted Return on Capital (1) 7.6% 8.0%

Year-to-Date

(1)




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.

(3)

2006 EPS includes $0.11 benefit from tax law changes

($ Millions, Except Per Share Amounts)

8

Business Segment

2007 2006 % B/(W) 2007 2006 % B/(W)Operating Revenue (1):

Fleet Management Solutions 742.2$ 730.1$ 2% 1,037.3$ 1,049.5$ (1)%Supply Chain Solutions 330.0 291.3 13% 584.0 502.1 16%Dedicated Contract Carriage 138.1 139.1 (1)% 141.1 143.5 (2)%Eliminations (53.2) (49.4) (8)% (104.4) (99.4) (5)% Total 1,157.1$ 1,111.1$ 4% 1,658.0$ 1,595.7$ 4%

Segment Net Before Tax Earnings:Fleet Management Solutions 97.5$ 94.9$ 3%Supply Chain Solutions 15.5 18.1 (14)%Dedicated Contract Carriage 12.5 11.2 12%Eliminations (8.0) (8.3) 4%

117.5 115.9 1%

Central Support Services (Unallocated Share) (12.0) (11.3) (6)%Earnings Before Restructuring and Income Taxes (1) 105.5 104.6 1%

(1.2) - NAEarnings Before Income Taxes 104.3 104.6 0%Provision for Income Taxes (39.2) (34.3) (14)%

Net Earnings 65.1$ 70.3$ (7)%

Net Earnings Excluding Tax Changes (1) 65.1$ 63.5$ 3%

Memo: Total Revenue

Restructuring and Other (Charges)/Recoveries, Net (2)

Second Quarter

(1)



Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net; however, the applicable portion of the restructuring and other (charges)/recoveries, net that related to each segment was

as follows: FMS –

($1.2) in 2007.

($ Millions)

9

Business Segment

2007 2006 % B/(W) 2007 2006 % B/(W)Operating Revenue (1):

Fleet Management Solutions 1,456.1$ 1,429.6$ 2% 2,025.4$ 2,030.6$ 0%Supply Chain Solutions 652.1 563.6 16% 1,150.4 971.6 18%Dedicated Contract Carriage 273.7 272.6 0% 279.6 282.2 (1)%Eliminations (105.6) (97.2) (9)% (203.3) (192.4) (6)% Total 2,276.3$ 2,168.6$ 5% 3,252.1$ 3,092.0$ 5%

Segment Net Before Tax Earnings:Fleet Management Solutions 178.3$ 169.8$ 5%Supply Chain Solutions 26.9 28.7 (6)%Dedicated Contract Carriage 22.9 19.6 16%Eliminations (16.9) (16.0) (5)%

211.2 202.1 5%

Central Support Services (Unallocated Share) (20.3) (18.5) (10)%Earnings Before Restructuring and Income Taxes (1) 190.9 183.6 4%

(1.7) 0.2 NAEarnings Before Income Taxes 189.2 183.8 3%Provision for Income Taxes (72.8) (65.9) (10)%

Net Earnings 116.4$ 117.9$ (1)%

Net Earnings Excluding Tax Changes (1) 116.4$ 111.1$ 5%

Memo: Total Revenue

Restructuring and Other (Charges)/Recoveries, Net (2)

Year-to-Date($ Millions)

(1)



Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net; however, the applicable portion of the restructuring and other (charges)/recoveries, net that related to each segment was

as follows: FMS –

($1.5) and SCS –

($0.2) in 2007; and FMS –

$0.1 and SCS –

$0.1 in 2006.

10

Capital Expenditures

2007 $2007 2006 O/(U) 2006

Full Service Lease 553$ 598$ (45)$

Commercial Rental 189 189 -

Operating Property and Equipment 46 28 18

Gross Capital Expenditures 788 815 (27)

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 195 180 15

Less: Proceeds from Sale and Leaseback of Revenue Earning Equipment 150 - 150

Net Capital Expenditures 443$ 635$ (192)$

Memo: Acquisitions -$ 4$ (4)$

Year-to-Date

($ Millions)

11

Cash Flow

2007 2006

Net Earnings 116$ 118$

Depreciation 399 362

Gains on Vehicle Sales, Net (29) (28) Amortization and Other Non-Cash Charges, Net 12 9

Changes in Working Capital and Deferred Taxes 7 (163) Cash Provided by Operating Activities 505 298

Proceeds from Sales (Primarily Revenue Earning Equipment) 195 180

Sale and Leaseback of Revenue Earning Equipment 150 -

Collections of Direct Finance Leases 32 34

Other, Net 1 1 Total Cash Generated (1) 883 513

Capital Expenditures (2) (885) (776)

Acquisitions - (4) Free Cash Flow (1) (2)$ (267)$

(1)

Non-GAAP financial measure; refer to Appendix –

Non-GAAP Financial Measures(2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment

Year-to-Date ($ Millions)

12

275%

172%168%151%129%146%

201%

234%275%

0%

50%

100%

150%

200%

250%

300%

12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 6/30/07 LongTerm

TargetMidpoint

Total Obligations to Equity

Balance Sheet Debt to Equity

Debt to Equity Ratio

6/30/07 12/31/06 6/30/06 Balance Sheet Debt 2,900$ 2,817$ 2,489$ Percent To Equity 161% 164% 151%

Total Obligations (1) 3,096$ 2,895$ 2,578$ Percent To Equity (1) 172% 168% 156%

Total Equity 1,799$ 1,721$ 1,648$

Note: Includes impact of accumulated net pension related equity

charge of $185 million as of 6/30/07, $201 million as of 12/31/06, and $221 million as of 6/30/06.

(1)

Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $196 million at 6/30/07, $78 million at 12/31/06 and $89 million

at 6/30/06.(2)

Represents long term total obligations to equity target of 250

-

300% while maintaining a strong investment grade rating.

(1)

(2)

($ Millions)

13

Financial Indicators Forecast (1)

(1)

Free Cash Flow and Debt to Equity include acquisitions. Gross

Capital Expenditures exclude acquisitions.(2)


Non-GAAP Financial Measures.(3)

Includes $176 million payment to the IRS related to full resolution of 1998 -

2000 tax period matters.

($ Millions)

$1,054$835 $949

$1,091

$1,381$1,183 $1,255

$1,635

Total Cash Generated (2)

2000 2001 2002 2003 2004 2005 2007ForecastMidpoint

Significant and predictable cash generation

Invest in growth

Increase assets under management

Increase financial leverage

2006

Total Obligations to Equity Ratio (2)


Memo: Assets Under Management

6,928 6,626 6,751 7,301 7,534 8,2057,030

275%

201%

146%129%

234%

151% 157%

Equity

Total Obligations (2)

2005

168%

8,141

Gross Capital Expenditures

$1,289

$600$725

$1,165

$657

$1,411 $1,255


Memo: Free Cash Flow (2)

131 367 260 140 (231)(3) 305(270)

Revenue Earning Equipment

PP&E/Other

$1,760

2006

(444)

14

Contents


15

Asset Management Update

Note: U.S. only

►

The number of used vehicles sold in the second quarter was 6,499, up 22% compared with prior year

►

Retail sales proceeds per unit for tractors and trucks were down 11% and 2%, respectively, in the second quarter compared with prior year

►

Vehicles no longer earning revenue were 10,685 at quarter end; up 4,927 vs. prior year driven primarily by a higher used truck center inventory

►

Units held for sale were 10,371 at quarter end

►

Average commercial rental fleet was down 10% year-over-year

16

Contents


17

EPS Forecast

ThirdQuarter Full Year

2007 EPS Forecast $ 1.20 - 1.23 * $ 4.30 - 4.35 *

2006 Comparable EPS 1.12$ (1) 3.99$ (1)

(1)

Non-GAAP financial measure. Excludes tax changes and pension charge in 2006.

($ Earnings Per Share)

►

Narrowing full year 2007 earnings forecast range to $4.30 to $4.35 per share

►

Current forecast for EPS is as follows:

* Excludes any charges related to Michigan tax law change, the magnitude of which is currently being evaluated.

18

Q & A

19

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Asset Management

Non-GAAP Financial Measures & Reconciliations

20

Fleet Management Solutions (FMS)

2007 2006 % B/(W)

Full Service Lease 489.2$ 460.1$ 6%Contract Maintenance 40.0 34.0 18%

Contractual Revenue 529.2 494.1 7%

Contract-related Maintenance 50.1 47.8 5%Commercial Rental 145.3 170.8 (15)%Other 17.6 17.4 1%Operating Revenue (a) 742.2 730.1 2%Fuel Services Revenue 295.1 319.4 (8)%

Total Revenue 1,037.3$ 1,049.5 (1)%

Segment Net Before Tax Earnings (NBT) 97.5$ 94.9$ 3%Segment NBT as % of Total Revenue 9.4% 9.0%Segment NBT as % of Operating Revenue (a) 13.1% 13.0%

Second Quarter

(a)


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.

($ Millions)

21

Fleet Management Solutions (FMS)

2007 2006 % B/(W)

Full Service Lease 965.2$ 911.5$ 6%Contract Maintenance 77.2 66.8 16%

Contractual Revenue 1,042.4 978.3 7%

Contract-related Maintenance 102.2 95.1 7%Commercial Rental 276.3 320.8 (14)%Other 35.2 35.4 (1)%Operating Revenue (a) 1,456.1 1,429.6 2%Fuel Services Revenue 569.3 601.0 (5)%

Total Revenue 2,025.4$ 2,030.6$ 0%


Year-to-Date

(a)


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.

($ Millions)

22

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 138.3$ 125.6$ 10% High Tech & Consumer Industries 74.5 74.4 0% Transportation Management 8.1 7.7 5%U.S. Operating Revenue 220.9 207.7 6%International Operating Revenue 109.1 83.6 30%Operating Revenue (a) 330.0 291.3 13%Subcontracted Transportation 254.0 210.8 20%Total Revenue 584.0$ 502.1$ 16%

Segment Net Before Tax Earnings (NBT) 15.5$ 18.1$ (14)%Segment NBT as % of Total Revenue 2.6% 3.6%Segment NBT as % of Operating Revenue (a) 4.7% 6.2%

Memo: Fuel Costs 31.3$ 27.8$ (13)%

Second Quarter

(a)


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.

($ Millions)

23

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 275.1$ 245.1$ 12% High Tech & Consumer Industries 149.0 143.2 4% Transportation Management 16.5 14.6 14%U.S. Operating Revenue 440.6 402.9 9%International Operating Revenue 211.5 160.7 31%Operating Revenue (a) 652.1 563.6 16%Subcontracted Transportation 498.3 408.0 22%Total Revenue 1,150.4$ 971.6$ 18%

Segment Net Before Tax Earnings (NBT) 26.9$ 28.7$ (6)%Segment NBT as % of Total Revenue 2.3% 3.0%Segment NBT as % of Operating Revenue (a) 4.1% 5.1%

Memo: Fuel Costs 59.2$ 52.7$ (12)%

Year-to-Date

(a)


the SCS business segment and as a measure of sales activity. Subcontracted transportation


($ Millions)

24

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 138.1$ 139.1$ (1)% Subcontracted Transportation 3.0 4.4 (33)%Total Revenue 141.1$ 143.5$ (2)%


Memo: Fuel Costs 26.5$ 27.5$ 4%

Second Quarter($ Millions)

(a)


the DCC business segment and as a measure of sales activity. Subcontracted transportation


25

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 273.7$ 272.6$ 0% Subcontracted Transportation 5.9 9.6 (38)%Total Revenue 279.6$ 282.2$ (1)%


Memo: Fuel Costs 51.2$ 52.5$ 3%


(a)


the DCC business segment and as a measure of sales activity. Subcontracted transportation


26

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 36.2$ 37.6$ 4%Unallocated CSS Costs 12.0 11.3 (6)%Total CSS Costs 48.2$ 48.9$ 2%

Second Quarter($ Millions)

27

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 72.3$ 74.7$ 3%Unallocated CSS Costs 20.3 18.5 (10)%Total CSS Costs 92.6$ 93.2$ 1%


28

Balance Sheet

June 30, December 31,2007 2006

Cash and Cash Equivalents 110$ 129$

Other Current Assets 1,140 1,133

Revenue Earning Equipment, Net 4,602 4,509

Operating Property and Equipment, Net 515 499

Other Assets 563 559 Total Assets 6,930$ 6,829$

Short-Term Debt / Current Portion Long-Term Debt 152$ 333$

Other Current Liabilities 854 935

Long-Term Debt 2,748 2,484

Other Non-Current Liabilities 1,377 1,356

Shareholders' Equity 1,799 1,721 Total Liabilities and Shareholders' Equity 6,930$ 6,829$

($ Millions)

29

601

3,284

2,983

3,357

465

2,684

2,444

2,895

1,544

577

2,354

2,977

1,728

1,959

2,341

883

1,9852,037

739

1,952

1,326

2,2962,102

1,800

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Redeployments Extensions Early Terminations Early Replacements

1H02 1H03 1H04 1H05 1H06 1H07

Asset Management Update (a)

(a)

U.S. only(b)

Excludes early terminations where customer purchases vehicle

(b)

30

Assets Under Management (a)

ForecastMidpoint

2000 2001 2002 2003 2004 2005 2006 6/30/07 2007 (b)

Revenue Earning Equipment 4,588$ 4,148$ 4,493$ 5,809$ 6,352$ 6,658$ 7,335$ 7,339$ 7,300$

Direct Finance Leases 637 640 622 656 649 624 592 586 580

Operating Leases 1,805 2,140 1,511 286 300 252 214 326 325

Assets Under Management 7,030$ 6,928$ 6,626$ 6,751$ 7,301$ 7,534$ 8,141$ 8,251$ 8,205$

($ Millions)

(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 2007.

31

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:

Non-GAAP Financial Measure Comparable GAAP MeasureReconciliation & Additional Information Presented on Slide Titled Page

Operating Revenue Total Revenue Key Financial Statistics 6 - 7

Comparable Earnings Per Share /Net Earnings Excluding Tax Changes

Net Earnings EPS and Net Earnings Reconciliation 32

Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 8 - 9

Adjusted Return on Capital Net Earnings Adjusted Return on Capital Reconciliation 33

Total Cash Generated / Free Cash Flow Cash Provided by Operating Activities Cash Flow Reconciliation 34 - 36

Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Debt to Equity RatioDebt to Equity Reconciliation

1237 - 38

FMS / SCS / DCC Operating Revenue and Segment NBT as % of Operating Revenue

FMS / SCS / DCC Total Revenue and Segment NBT as % of Total Revenue

Fleet Management Solutions / Supply Chain Solutions / Dedicated Contract Carriage

20 - 25

32

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

EPS and Net Earnings Reconciliation

($ Millions or $ Earnings Per Share)

* Earnings per share amounts are calculated independently for each component and may not be additive due to rounding

33

Adjusted Return on Capital Reconciliation

6/30/07 6/30/06

Net Earnings (1) 247$ 240$ Discontinued Operations - (2) Cumulative Effect of Changes in Accounting Principles - 2 Income Taxes 151 143

Adjusted Earnings Before Income Taxes 398 383 Adjusted Interest Expense (2) 161 136 Adjusted Income Taxes (3) (212) (202) Adjusted Net Earnings 347$ 317$

Average Total Debt 2,755$ 2,265$ Average Off-Balance Sheet Debt 98 124 Average Adjusted Total Shareholders' Equity (4) 1,712 1,562 Adjusted Average Total Capital 4,565$ 3,951$

Adjusted Return on Capital (5) 7.6% 8.0%

(1) Earnings calculated based on a 12-month rolling period.(2) Interest expense includes implied interest on off-balance sheet vehicle obligations.(3) Income taxes were calculated using the effective income tax rate for the period exclusive of benefits from tax law changes recognized in 2006 and 2005.(4) Represents shareholders’

equity adjusted for discontinued operations, accounting changes

and the tax benefits in those periods.(5) The Company adopted adjusted return on capital, a non GAAP financial measure, as the Company believes that both debt (including off-balance sheet debt)

and equity should be included in evaluating how effectively capital is utilized across the business.

Note: Prior year has been restated to conform with current year presentation

($ Millions)

34

Cash Flow Reconciliation

(1)

The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an

important measure of comparative operating performance. Management believes total cash generated provides investors with

an important measure of total cash inflows generated from our on-going business activities which include sales of revenue earning equipment, sales of operating property and equipment, sale and leaseback of revenue earning equipment, collections on direct finance leases and other cash inflows.

(2)

Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.(3)

The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an

important measure of comparative operating performance. 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.(4)

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.

($ Millions)

12/31/00 (4) 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06

Cash Provided by Operating Activities 1,023$ 365$ 617$ 803$ 867$ 779$ 854$

Less: Changes in Balance of Trade Receivables Sold (270) 235 110 - - - -

Collections of Direct Finance Leases 67 66 66 61 64 70 66

Proceeds from Sales (Primarily Revenue Earning Equipment) 230 173 152 210 331 334 333

Proceeds from Sale and Leaseback of Assets - - - 13 118 - -

Other Investing, Net 4 (4) 4 4 1 - 2

Total Cash Generated (1) 1,054 835 949 1,091 1,381 1,183 1,255

Capital Expenditures (2) (1,296) (704) (582) (734) (1,092) (1,399) (1,695)

Acquisitions (28) - - (97) (149) (15) (4)

Free Cash Flow (3) (270)$ 131$ 367$ 260$ 140$ (231)$ (444)$

Memo:

Depreciation Expense 580$ 545$ 552$ 625$ 706$ 740$ 743$

Gains on Vehicle Sales, Net 19$ 12$ 14$ 16$ 35$ 47$ 51$

35


ForecastMidpoint12/31/07

Cash Provided by Operating Activities 1,100$

Collections of Direct Finance Leases 65

Proceeds from Sales (Primarily Revenue Earning Equipment) 320

Proceeds from Sale and Leaseback of Revenue Earning Equipment 150

Total Cash Generated (1) 1,635

Capital Expenditures (2) (1,330) Free Cash Flow (3) 305$

(1)


important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of revenue earning

equipment, sales of operating property and equipment, sale and leaseback of revenue earning equipment, collections on direct finance leases and other cash inflows.

(2)



important measure of comparative operating performance. 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.

($ Millions)

36


6/30/07 6/30/06Cash Provided by Operating Activities 505$ 298$

Collections of Direct Finance Leases 32 34

Proceeds from Sales (Primarily Revenue Earning Equipment) 195 180

Sale and Leaseback of Revenue Earning Equipment 150 -

Other Investing, net 1 1

Total Cash Generated (1) 883 513

Capital Expenditures (2) (885) (776)

Acquisitions - (4) Free Cash Flow (3) (2)$ (267)$

(1)


important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of revenue earning

equipment, sales of operating property and equipment, sale and leaseback of revenue earning equipment, collections on direct finance leases and other cash inflows.

(2)



important measure of comparative operating performance. 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.

($ Millions)

37

Debt to Equity Reconciliation($ Millions)

% to % to % to % to % to % to % to12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity

Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143% $2,817 164%

Receivables Sold 345 110 - - - - -

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 879 625 370 153 161 117 78

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% $2,895 168%

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.

(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.

38

Debt to Equity Reconciliation

ForecastMidpoint % to

12/31/07 Equity

Balance Sheet Debt 2,670$ 147%

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 170

Total Obligations (1) 2,840$ 157%

(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.

($ Millions)

39

Economy & Finance

2Q07FINAL