Q407ryderearningsreport

Fourth Quarter 2007 & 2008 ForecastEarnings Conference Call

February 1, 2008

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, 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, changes in economic and 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, reserve and accruals particularly with respect to pension, taxes, insurance and revenue, changes in general economic conditions, sudden or unusual 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

► Fourth Quarter 2007 Results Overview► Asset Management Update► 2008 Forecast► Q & A

4

4th Quarter Results Overview

►

Earnings per diluted share were $1.24 versus $1.08 in 4Q06

–

4Q07 included a $0.06 benefit related primarily to Canada tax law changes

►

Comparable earnings per diluted share were $1.18, up 9% from $1.08 in 4Q06

►

Total revenue up 5% (and operating revenue up 4%) as a result of contractual revenue growth in all segments as well as favorable foreign exchange rate movements

►

Fleet Management Solutions (FMS) total revenue up 8% (and operating revenue up 3%) vs. prior year

–

Contractual revenue increased 7%

•

Full service lease revenue grew 7% and contract maintenance revenue grew 10%

–

Commercial rental revenue down 7%

–

Fuel revenue grew 21%

–

Foreign exchange impact accounts for 2 percentage points of total revenue growth of 8%

►

FMS net before tax earnings (NBT) up 8%

–

FMS NBT percent of operating revenue up 60 basis points to 13.4%

►

FMS earnings benefited from improved contractual business performance, and lower expenses for pension, safety and insurance, sales/marketing and depreciation policy changes. Improvements were partially offset by lower commercial rental and used vehicle sales results.

5

4th Quarter Results Overview (cont’d)

►

Supply Chain Solutions (SCS) total revenue up 1% (and operating revenue up 5%) vs. prior year, reflecting foreign exchange impact and new/expanded business, partially offset by net reporting of customer business previously presented on a gross basis, a previously disclosed automotive plant closure in 2Q07, and reduced activity with certain high-tech customers

►

SCS net before tax earnings (NBT) up 11%

–

SCS NBT percent of operating revenue up 30 basis points to 5.6%

►

SCS earnings positively impacted by improved international results, lower safety and insurance costs and lower incentive-based compensation, partially offset by the impact of reduced activity with certain high-tech customers

►

Dedicated Contract Carriage (DCC) total revenue up 3% (and operating revenue up 3%) vs. prior year due primarily to higher fuel cost pass-throughs

►

DCC net before tax earnings (NBT) up 9%

–

DCC NBT percent of operating revenue up 40 basis points to 8.7%

►

DCC earnings positively impacted by improved operating performance

6

Key Financial Statistics

2007 2006 % B/(W)

Operating Revenue (1)(2) 1,189.6$ 1,146.0$ 4%

Fuel Services and Subcontracted Transportation Revenue 476.6 448.1 6%

Total Revenue 1,666.2$ 1,594.1$ 5%

Earnings Per Share 1.24$ 1.08$ 15%

Comparable Earnings Per Share (1) 1.18$ 1.08$ 9%

Memo:Average Shares (Millions) - Diluted 58.1 61.2 Tax Rate 35.6% 35.3%

Fourth Quarter

(1)

Non-GAAP financial measure; refer to Appendix -

Non-GAAP Financial Measures. Comparable earnings per share exclude restructuring recoveries and tax law changes in 2007.(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.

($ Millions, Except Per Share Amounts)

7


2007 2006 % B/(W)

Operating Revenue (1)(2) 4,636.6$ 4,454.2$ 4%

Fuel Services and Subcontracted Transportation Revenue 1,929.4 1,852.4 4%

Total Revenue 6,566.0$ 6,306.6$ 4%

Earnings Per Share 4.24$ 4.04$ 5%

Comparable Earnings Per Share (1) 4.21$ 3.99$ 6%

Memo:Average Shares (Millions) - Diluted 59.8 61.6 Tax Rate 37.4% 36.6%Adjusted Return on Capital (1) 7.4% 7.9%

Full Year

(1)


Non-GAAP Financial Measures. Comparable earnings per share exclude restructuring costs, property gain and fourth quarter tax law changes in 2007 and tax law changes and pension charge in 2006.

(2)


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.


8

Business Segment

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

Fleet Management Solutions 764.8$ 741.3$ 3% 1,085.4$ 1,005.4$ 8%Supply Chain Solutions 337.2 320.1 5% 545.8 543.1 1%Dedicated Contract Carriage 140.3 135.6 3% 144.3 140.2 3%Eliminations (52.7) (51.0) (3)% (109.3) (94.6) (16)% Total 1,189.6$ 1,146.0$ 4% 1,666.2$ 1,594.1$ 5%

Segment Net Before Tax Earnings:Fleet Management Solutions 102.3$ 94.5$ 8%Supply Chain Solutions 18.9 17.0 11%Dedicated Contract Carriage 12.3 11.2 9%Eliminations (8.1) (9.0) 12%

125.4 113.7 10%

Central Support Services (Unallocated Share) (14.0) (11.1) (26)%Earnings Before Restructuring and Income Taxes (1) 111.4 102.6 9%Restructuring and Other Recoveries/(Charges), Net and Other Items (2) 0.4 (0.8) NAEarnings Before Income Taxes 111.8 101.8 10%Provision for Income Taxes (39.9) (36.0) (11)%

Net Earnings 71.9$ 65.8$ 9%

Comparable Net Earnings (1) 68.3$ 65.8$ 4%

Memo: Total Revenue

Fourth Quarter

(1)


Non-GAAP Financial Measures. Comparable net earnings exclude restructuring recoveries and fourth quarter tax law changes in 2007.

(2)

Our primary measure of segment financial performance excludes restructuring and other recoveries/(charges), net and other items including gain on sale of property in 2007 and pension accounting charge in 2006; however, the applicable portion of the restructuring and other recoveries/(charges),

net and other items that related to each segment was as follows: FMS –

$0.3 and SCS –

$0.1 in 2007; FMS –

$0.2, SCS –

($0.9) and CSS –

($0.1) in 2006.

($ Millions)

9

Business Segment

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

Fleet Management Solutions 2,979.4$ 2,921.1$ 2% 4,162.6$ 4,096.0$ 2%Supply Chain Solutions 1,314.5 1,182.9 11% 2,250.3 2,028.5 11%Dedicated Contract Carriage 552.9 548.9 1% 567.6 568.8 - Eliminations (210.2) (198.7) (6)% (414.5) (386.7) (7)% Total 4,636.6$ 4,454.2$ 4% 6,566.0$ 6,306.6$ 4%

Segment Net Before Tax Earnings:Fleet Management Solutions 373.7$ 368.1$ 2%Supply Chain Solutions 63.2 62.1 2%Dedicated Contract Carriage 47.4 42.6 11%Eliminations (31.2) (33.7) 7%

453.1 439.1 3%

Central Support Services (Unallocated Share) (44.4) (39.5) (13)%Earnings Before Restructuring and Income Taxes (1) 408.7 399.6 2%Restructuring and Other Recoveries/(Charges), Net and Other Items (2) (3.2) (6.6) NAEarnings Before Income Taxes 405.5 393.0 3%Provision for Income Taxes (151.6) (144.0) (5)%

Net Earnings 253.9$ 249.0$ 2%

Comparable Net Earnings (1) 251.9$ 245.9$ 2%

Memo: Total Revenue

Full Year

(1)


Non-GAAP Financial Measures. Comparable net earnings exclude restructuring costs, property gain and fourth quarter tax law changes in 2007 and tax law changes and pension charge in 2006.

(2)

Our primary measure of segment financial performance excludes restructuring and other recoveries/(charges), net and other items including gain on sale of property in 2007 and pension accounting charge in 2006; however, the applicable portion of the restructuring and other recoveries/(charges), net and other items that related to each segment was as follows: FMS –

$4.5, SCS –

($5.6), DCC –

($1.1) and CSS –

($1.0) in 2007; and FMS –

($5.6), SCS –

($0.9) and CSS –

($0.1) in 2006.

($ Millions)

10

Capital Expenditures

2007 $2007 2006 O/(U) 2006

Full Service Lease 900$ 1,493$ (593)$

Commercial Rental 219 195 24

Operating Property and Equipment 76 72 4 Gross Capital Expenditures 1,195 1,760 (565)

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 374 333 41

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

Net Capital Expenditures 671$ 1,427$ (756)$

Memo: Acquisitions 75$ 4$ 71$

Full Year

($ Millions)

11

Cash Flow

2007 2006Net Earnings 254$ 249$ Depreciation 816 743 Gains on Vehicle Sales, Net (44) (51) Amortization and Other Non-Cash Charges, Net 15 28

Changes in Working Capital and Deferred Taxes 62 (115) Cash Provided by Operating Activities 1,103 854

Proceeds from Sales (Primarily Revenue Earning Equipment) 374 333 Sale and Leaseback of Revenue Earning Equipment 150 - Collections of Direct Finance Leases 63 66 Other, Net 2 2

Total Cash Generated (1) 1,692 1,255

Capital Expenditures (2) (1,317) (1,695) Free Cash Flow (1)(3) 375$ (440)$

(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(3) Free Cash Flow excludes acquisitions

Full Year ($ Millions)

12

275%

157%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 12/31/07 LongTerm

TargetMidpoint

Total Obligations to Equity

Balance Sheet Debt to Equity

Debt to Equity Ratio

12/31/07 12/31/06 Balance Sheet Debt 2,776$ 2,817$ Percent To Equity 147% 164%

Total Obligations (1) 2,954$ 2,895$ Percent To Equity (1) 157% 168%

Total Equity 1,888$ 1,721$

Note: Includes impact of accumulated net pension related equity

charge of $148 million as of 12/31/07 and $201 million as of 12/31/06.

(1)

Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $178 million at 12/31/07 and $78 million at 12/31/06.

(2)

Represents long term total obligations to equity target of 250

-

300% while maintaining a strong investment grade rating.

(1)

(2)

($ Millions)

13

Contents


14

Asset Management Update (1)

(1)

All information presented on this page only is for the U.S. fleet and excludes Canadian and U.K. operations.

►

The number of used vehicles sold in the fourth quarter was 5,365, up 17% compared with prior year

►

Proceeds per unit for tractors and trucks were down 12% and 13%, respectively, in the fourth quarter compared with prior year

–

Excluding wholesaling type activity, retail pricing for tractors

and trucks was down 3% and 1%, respectively, from the prior year

►

Units held for sale were 6,434 at quarter end; down 15% from 7,607 units held for sale at the end of the third quarter

–

Units held for sale were down 16% from 7,643 in the prior year

►

Vehicles no longer earning revenue were 6,335 at quarter end; down 1,303 from the end of the third quarter

–

Vehicles no longer earning revenue were down 2,162 vs. prior year driven primarily by a lower used truck center inventory

►

Average total commercial rental fleet was down 12% year-over-year

15

Contents


16

2008 Overall Environment

Baseline Assumptions Opportunities (+) / Risks (-)

●

Overall economy soft without further weakening

−

Broader economic decline

●

Stable real interest rates +

Federal funds rates lowered

●

Strength and currency stability in key foreign markets

−

U.S. dollar strengthening (primarily impacts revenue)

●

Positive free cash flow +

Stronger free cash flow if economy slows

Modest Inflation Moderate GDP Growth

17

FMS Assumptions


●

Positive lease / contract maintenance revenue momentum from organic sales and closed acquisitions

●

Retention and sales initiatives

−

Potential for softer freight demand−

Customer fleet downsizing−

Softening rental demand−

Fewer miles driven

+

Additional acquisitions

●

Stable used vehicle pricing and improving vehicle residual values with lower inventory levels

−

Declining used vehicle pricing

●

Ongoing maintenance cost reduction initiatives

18

SCS / DCC Assumptions


●

Stable volumes with existing customers

−

Potential for current customer volume declines and plant closures

●

Focus on customer retention and business development

−

Potential for softer freight demand and reduced new business

●

Grow new geographic markets (i.e. China and others)

●

Increase penetration of consumer goods vertical segment

+

Geographic / industry vertical expansion above baseline

+

Acquisitions

●

Technology investments to enhance product offerings and reduce back office costs

19


2007 % B / (W)Revenue:

Operating (1) (2) $ 4,770 - 4,930 4,637$ 3 - 6%Fuel Services and Subcontracted Transportation (3) 1,310 - 1,350 1,929 (30 - 32)%Total Revenue (3) $ 6,080 - 6,280 6,566$ (4 - 7)%

Earnings: Earnings Before Income Taxes $ 418 - 432 405$ 3 - 7%Earnings $ 255 - 263 254$ 0 - 4%Comparable Earnings (1) $ 255 - 263 252$ 1 - 4%

Earnings Per Share (EPS):EPS $ 4.50 - 4.65 4.24$ 6 - 10%Comparable EPS (1) $ 4.50 - 4.65 4.21$ 7 - 10%

Memo: Average Shares (Millions) - Diluted 56.6 59.8 Tax Rate 39.1% 37.4%Adjusted Return on Capital (1) 7.6% 7.4%

2008Forecast

(1)

Non-GAAP financial measure; refer to Appendix –

Non-GAAP Financial Measures. Comparable earnings and comparable EPS exclude restructuring costs, property gain, and fourth quarter tax law changes in 2007.

(2)


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 prior to 2008 it was largely a pass through to customers and the Company realized minimal changes in profitability as a result of fluctuations in subcontracted transportation.

(3)

Includes impact of net revenue reporting in 2008 for subcontracted transportation revenues previously reported on a gross basis.

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


20

Business Segment Revenue

2008 Forecast% Growthvs. 2007

Fleet Management Solutions:Gross Revenue (1) 3%Operating Revenue 4%

- Contractual Revenue (2) 5%- Commercial Rental Revenue 0 - 2%

Supply Chain Solutions:Gross Revenue (3)(4) (22 - 24)%Operating Revenue 5 - 10%

Dedicated Contract Carriage:Gross Revenue (4) 3 - 5%Operating Revenue 3 - 5%

(1)

Includes fuel revenue.(2)

Includes full service lease and contract maintenance.(3)

Includes impact of net revenue reporting in 2008 for revenues previously reported on a gross basis.(4)

Includes subcontracted transportation revenue.

21

2007Comparable

EPS

Tax Rate Cost Increases 2007HeadcountReductions

AssetManagement

ShareRepurchases

Acquisitions Revenue &Operational

Improvements

2008 EPSForecast

2008 Causes of EPS Change

(1)

2007 Comparable EPS is a non-GAAP financial measure; refer to Appendix –

Non-GAAP Financial Measures. 2007 Comparable EPS excludes $0.03 impact from restructuring costs, property gains and fourth quarter tax law changes.

($ Earnings Per Share)

- Safety & Insurance Costs

- Incentive Compensation

$4.21 (1) (0.07)(0.33)

0.21

0.15

0.14

0.13 – 0.28 $4.50 - $4.65

0.06

+ Pollock+ Lily+ $200M

Program Rollover

+ Partial $300M Program

- Gains+ Carrying

Costs

22

Business Segment Earnings

Full Year

9.55.9 6.7 6.0 8.7

9.0 9.0 9.0

13.012.512.612.411.2

7.58.27.3

5

7

9

11

13

15

2001 2002 2003 2004 2005 2006 2007 2008 ForecastMidpoint

Fleet Management

Solutions

Supply Chain Solutions

Dedicated Contract Carriage

2.8 3.12.42.72.9

(0.4)(0.6)

4.4

(0.6)(0.8)

4.8 5.33.94.04.2

5.4

-1

1

3

5


8.78.4

7.56.5

5.86.8

6.06.2

8.98.67.8

6.75.9

6.96.16.3

5

7

9


Segment NBT as % of Total Revenue

Segment NBT as % of Operating Revenue (1)

(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 prior to 2008 it was largely a pass through to customers and the Company realized minimal changes in profitability as a result of fluctuations in subcontracted transportation.

23

Capital Expenditures

Full Service Lease:►

Capital for lease vehicles is committed after contracts are signed with customers

►

2008 lease capital expenditures include:

●

Replacement spending of $1,015 -

$1,045 million

●

Growth spending of $100 -

$170 million

Growth capital represents an investment which results in $20 - $30 million of incremental 2008 revenue or $40 - $60 million of annualized revenue

Commercial Rental:►

2008 rental capital expenditures include:

●

Replacement spending of $140 million

24

Capital Expenditures, Cash Flow & Leverage

2008Forecast 2007

Full Service Lease - Replacement $1,015 - 1,045 Full Service Lease - Growth 100 - 170

Full Service Lease 1,115 - 1,215 900$ Commercial Rental 140 219 Operating Property and Equipment 130 76

Gross Capital Expenditures 1,385 - 1,485 1,195 Less: Proceeds from Sales 335 374 Less: Proceeds from Sale and Leaseback of

Revenue Earning Equipment - 150 Net Capital Expenditures $1,050 - 1,150 671$

Assets Under Management $8,295 - 8,395 8,053$

Cash Provided by Operating Activities $1,165 - 1,265 1,103$ Total Cash Generated (1) $1,555 - 1,655 1,692$ Free Cash Flow (1)(2) $ 185 - 220 375$

Total Obligations to Equity (1) 158% 157%

Full Year

(1)


Non-GAAP Financial Measures.(2)

Free Cash Flow excludes acquisitions. Acquisitions totaled $75 million in full year 2007 and $91 million in 2008 year-to-date.

($ Millions)

25

EPS Forecast

First Quarter Full Year

2008 EPS Forecast $ 0.84 - 0.87 $ 4.50 - 4.65

2007 Comparable EPS 0.84$ 4.21$ (1)

(1)

Non-GAAP financial measure. 2007 Comparable EPS excludes impact from

restructuring costs in the third and fourth quarters, property gain in the third quarter and the fourth quarter tax law changes in totaling a $0.03 benefit.

($ Earnings Per Share)

26

Summary

►

Focus on strong customer retention, new business development and sales/marketing initiatives

►

Continue growth in full service lease/contract maintenance, supply chain solutions and dedicated contract carriage product lines

►

Manage through cyclical impacts in commercial rental product line

►

Utilize balance sheet capacity to support growth and financial leverage targets

►

Sustain focus on cost management and process improvements, while investing in sales and operational capabilities

Drive growth from customer outsourcing in contractual product lines while managing through cyclical impacts

27

Q&A

28

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Asset Management

Financial Indicators Forecast

Non-GAAP Financial Measures & Reconciliations

29

Fleet Management Solutions (FMS)

2007 2006 % B/(W) Full Service Lease 503.9$ 472.4$ 7%Contract Maintenance 41.6 37.9 10%

Contractual Revenue 545.5 510.3 7%

Contract-related Maintenance 48.5 48.7 (1)%Commercial Rental 152.0 163.4 (7)%Other 18.8 18.9 (1)%Operating Revenue (a) 764.8 741.3 3%Fuel Services Revenue 320.6 264.1 21%

Total Revenue 1,085.4$ 1,005.4$ 8%

Segment Net Before Tax Earnings (NBT) 102.3$ 94.5$ 8%Segment NBT as % of Total Revenue 9.4% 9.4%Segment NBT as % of Operating Revenue (a) 13.4% 12.8%

Fourth Quarter($ Millions)

(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 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.

30

Fleet Management Solutions (FMS)

2007 2006 % B/(W) Full Service Lease 1,965.3$ 1,848.3$ 6%Contract Maintenance 159.6 141.9 12%

Contractual Revenue 2,124.9 1,990.2 7%

Contract-related Maintenance 198.8 193.1 3%Commercial Rental 583.3 665.7 (12)%Other 72.4 72.1 - Operating Revenue (a) 2,979.4 2,921.1 2%Fuel Services Revenue 1,183.2 1,174.9 1%

Total Revenue 4,162.6$ 4,096.0$ 2%


Full Year

(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 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)

31

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 141.3$ 127.4$ 11% High Tech & Consumer Industries 69.4 74.1 (6)% Transportation Management 8.2 8.3 - U.S. Operating Revenue (a) 218.9 209.8 4%International Operating Revenue (a) 118.3 110.3 7%Operating Revenue (a) 337.2 320.1 5%Subcontracted Transportation 208.6 223.0 (6)%Total Revenue 545.8$ 543.1$ 1%


Memo: Fuel Costs 35.6$ 24.9$ (43)%

Fourth 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)

32

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 551.7$ 495.4$ 11% High Tech & Consumer Industries 288.9 291.9 (1)% Transportation Management 32.6 30.7 6%U.S. Operating Revenue (a) 873.2 818.0 7%International Operating Revenue (a) 441.3 364.9 21%Operating Revenue (a) 1,314.5 1,182.9 11%Subcontracted Transportation 935.8 845.6 11%Total Revenue 2,250.3$ 2,028.5$ 11%


Memo: Fuel Costs 124.5$ 104.2$ (19)%

Full Year

(a)


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


($ Millions)

33

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 140.3$ 135.6$ 3% Subcontracted Transportation 4.0 4.6 (14)%Total Revenue 144.3$ 140.2$ 3%


Memo: Fuel Costs 29.3$ 24.3$ (21)%

Fourth Quarter

(a)


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


($ Millions)

34

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 552.9$ 548.9$ 1% Subcontracted Transportation 14.7 19.9 (26)%Total Revenue 567.6$ 568.8$ -


Memo: Fuel Costs 107.1$ 104.6$ (2)%

Full Year

(a)


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


($ Millions)

35

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 37.3$ 37.8$ 2%Unallocated CSS Costs 14.0 11.1 (26)%Total CSS Costs 51.3$ 48.9$ (5)%

Fourth Quarter($ Millions)

36

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 146.1$ 151.5$ 4%Unallocated CSS Costs 44.4 39.5 (13)%Total CSS Costs 190.5$ 191.0$ -

Full Year($ Millions)

37

Balance Sheet

December 31, December 31,2007 2006

Cash and Cash Equivalents 116$ 129$

Other Current Assets 1,106 1,133

Revenue Earning Equipment, Net 4,501 4,509

Operating Property and Equipment, Net 519 499

Other Assets 613 559

Total Assets 6,855$ 6,829$

Short-Term Debt / Current Portion Long-Term Debt 223$ 333$

Other Current Liabilities 797 935

Long-Term Debt 2,553 2,484

Other Non-Current Liabilities 1,394 1,356

Shareholders' Equity 1,888 1,721

Total Liabilities and Shareholders' Equity 6,855$ 6,829$

($ Millions)

38

1,094

6,253

5,313

5,650

967

4,938

4,167

4,750

3,042

1,584

5,008

4,596

3,9964,104

4,539

1,646

4,360

3,572

1,890

3,839

1,913

4,669

4,195 4,261

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Redeployments Extensions Early Terminations Early Replacements

FY02 FY03 FY04 FY05 FY06 FY07

Asset Management Update (a)

(a)

U.S. only(b)

Excludes early terminations where customer purchases vehicle

(b)

39

Assets Under Management (a)

ForecastMidpoint

2000 2001 2002 2003 2004 2005 2006 2007 2008 (b)

Revenue Earning Equipment 4,588$ 4,148$ 4,493$ 5,809$ 6,352$ 6,658$ 7,335$ 7,225$ 7,520$

Direct Finance Leases 637 640 622 656 649 624 592 582 580

Operating Leases 1,805 2,140 1,511 286 300 252 214 246 245

Assets Under Management 7,030$ 6,928$ 6,626$ 6,751$ 7,301$ 7,534$ 8,141$ 8,053$ 8,345$

(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 2008.

($ Millions)

40

Financial Indicators Forecast (1)

(1)

Obligations to Equity and Assets Under Management include acquisitions. Free Cash Flow and 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.

Significant and predictable cash generation

Invest in growth

Increase assets under management

Increase financial leverage

$1,054$835

$949$1,091

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

$1,692 $1,605

Total Cash Generated (2)

2000 2001 2002 2003 2004 2005 2008ForecastMidpoint

2006 2007

Gross Capital Expenditures

$1,289

$600$725

$1,165

$657

$1,411$1,195


Memo: Free Cash Flow (2)

131 367 260 140 (231)(3) 375(270)

Revenue Earning Equipment

PP&E/Other

$1,760

2006

(444)

2007

$1,435

205Total Obligations to Equity Ratio (2)


Memo: Assets Under Management6,928 6,626 6,751 7,301 7,534 8,0537,030

275%

201%

146%129%

234%

151% 157%

Equity

Total Obligations (2)

2005

168%

8,141

2007

158%

8,345

($ Millions)

41

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, 19

Comparable Earnings Per Share / ComparableNet Earnings

Net Earnings / Net Earnings Per Share EPS and Net Earnings Reconciliation 42

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

Adjusted Return on Capital Net Earnings Adjusted Return on Capital Reconciliation 43

Total Cash Generated / Free Cash Flow Cash Provided by Operating Activities Cash Flow Reconciliation 44 - 45

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

1246 - 47

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

29 - 34

42

4Q07 - 4Q07 - FY07 - FY07 -Net Earnings EPS Net Earnings EPS

Net Earnings $ 71.9 $ 1.24 $ 253.9 $ 4.24

3Q07 and 4Q07 Restructuring (Recoveries)/Charges (0.3) - 7.5 0.13

Gain on Sale of Property - - (6.2) (0.10)

Tax Law Changes (3.3) (0.06) (3.3) (0.06)

Comparable Net Earnings $ 68.3 $ 1.18 $ 251.9 $ 4.21

4Q06 - 4Q06 - FY06 - FY06 -Net Earnings EPS Net Earnings EPS

Net Earnings $ 65.8 $ 1.08 $ 249.0 $ 4.04

Pension Accounting Charge - - 3.7 0.06

Tax Law Changes - - (6.8) (0.11)

Comparable Net Earnings $ 65.8 $ 1.08 $ 245.9 $ 3.99

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

43

Adjusted Return on Capital Reconciliation

ForecastMidpoint12/31/08 12/31/07 12/31/06

Net Earnings (1) 259$ 254$ 249$

Restructuring and Other Items - 1 -

Income Taxes 166 152 144

Adjusted Earnings Before Income Taxes 425 407 393

Adjusted Interest Expense (2) 178 169 147

Adjusted Income Taxes (3) (236) (220) (207) Adjusted Net Earnings 367$ 356$ 333$

Average Total Debt 2,825$ 2,848$ 2,480$

Average Off-Balance Sheet Debt 155 150 99

Average Adjusted Total Shareholders' Equity (4) 1,889 1,792 1,605 Adjusted Average Total Capital 4,869$ 4,790$ 4,184$

Adjusted Return on Capital (5) 7.6% 7.4% 7.9%

(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 the fourth quarter of 2007.(4) Represents shareholders’

equity adjusted for 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.

($ Millions)

44

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.(5)

Free Cash Flow excludes acquisitions.

12/31/00 (4) 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07

Cash Provided by Operating Activities 1,023$ 365$ 617$ 803$ 867$ 779$ 854$ 1,103$

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

Collections of Direct Finance Leases 67 66 66 61 64 70 66 63

Proceeds from Sales (Primarily Revenue Earning Equipment) 230 173 152 210 331 334 333 374

Proceeds from Sale and Leaseback of Assets - - - 13 118 - - 150

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

Total Cash Generated (1) 1,054 835 949 1,091 1,381 1,183 1,255 1,692

Capital Expenditures (2) (1,296) (704) (582) (734) (1,092) (1,399) (1,695) (1,317) Free Cash Flow (3)(5) (242)$ 131$ 367$ 357$ 289$ (216)$ (440)$ 375$

Memo:

Depreciation Expense 580$ 545$ 552$ 625$ 706$ 740$ 743$ 816$

Gains on Vehicle Sales, Net 19$ 12$ 14$ 16$ 35$ 47$ 51$ 44$

($ Millions)

45

Cash Flow Reconciliation

Midpoint12/31/08

Cash Provided by Operating Activities 1,215$ Collections of Direct Finance Leases 55 Proceeds from Sales (Primarily Revenue Earning Equipment) 335 Proceeds from Sale and Leaseback of Revenue Earning Equipment -

Total Cash Generated (1) 1,605

Capital Expenditures (2) (1,400) Free Cash Flow (3) 205$

(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.

($ Millions)

46

Debt to Equity Reconciliation

% to % 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 12/31/07 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% $2,776 147%

Receivables Sold 345 110 - - - - - -

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 879 625 370 153 161 117 78 178

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% $2,954 157%

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.

($ Millions)

47

Debt to Equity Reconciliation

ForecastMidpoint % to

12/31/08 Equity

Balance Sheet Debt 2,870$ 151%

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 140

Total Obligations (1) 3,010$ 158%

(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)

48

Economy & Finance

Q407ryderearningsreport