Ryder2Q2008report

Second Quarter 2008Earnings Conference Call

July 23, 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, additional adverse issues or developments in our Brazilian operations, 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

► Second Quarter 2008 Results Overview► Asset Management Update► Earnings Outlook► Q & A

4

2nd Quarter Results Overview

►

Earnings per diluted share were $1.10 versus $1.07 in 2Q07–

2Q08 included $0.12 charge for Brazil adjustments related to prior years

►

Comparable earnings were $1.22 versus $1.07 in 2Q07

►

Comparable earnings above forecast of $1.10 - $1.20 due primarily to FMS contractual revenue growth, partially offset by lower SCS results

►

Total revenue remained unchanged vs. prior year, reflecting a change from gross to net revenue reporting for a supply chain subcontracted transportation customer

►

Operating revenue up 5% vs. prior year as a result of FMS contractual revenue growth including acquisitions, higher fuel prices and favorable foreign exchange rate movements

►

Fleet Management Solutions (FMS) total revenue up 16% (and operating revenue up 5%) vs. prior year

–

Contractual revenue increased 5%

–

Full service lease revenue grew 5% including acquisitions

–

Contract maintenance revenue grew 5% organically

–

Commercial rental revenue up 1%

–

Fuel revenue grew 44%

–

Foreign exchange impact accounts for 1 percentage point of total

revenue growth

►

FMS net before tax earnings (NBT) up 19%–

FMS NBT percent of operating revenue up 180 basis points to 14.9%

►

FMS earnings benefited primarily from improved contractual business performance, and to a lesser extent from higher fuel margins (due to unusually rapid increase in fuel prices) and acquisitions

5

2nd Quarter Results Overview (cont’d)

►

Supply Chain Solutions (SCS) total revenue down 25% vs. prior year due to change from gross to net revenue reporting for a supply chain subcontracted transportation customer

►

SCS operating revenue up 6% vs. prior year, reflecting foreign exchange impact, higher fuel costs and new/expanded business

►

SCS net before tax earnings (NBT) down 56%

–

SCS NBT percent of operating revenue down 280 basis points to 1.9%

►

SCS earnings negatively impacted by lower operating results in our Brazilian operations and several North American automotive strikes

►

Dedicated Contract Carriage (DCC) total revenue up 2% (and operating revenue up 2%) vs. prior year due to higher fuel costs, partially offset by non-renewed contracts

►

DCC net before tax earnings (NBT) down 1%

–

DCC NBT percent of operating revenue down 30 basis points to 8.8%

►

DCC earnings negatively impacted by higher safety/insurance costs, partially offset by improved operating performance

6

Key Financial Statistics

2008 2007 % B/(W)

Operating Revenue (1)(2) 1,215.9$ 1,157.1$ 5%

Fuel Services and Subcontracted Transportation Revenue (3) 444.3 500.9 (11%)

Total Revenue (3) 1,660.2$ 1,658.0$ 0%

Earnings Per Share 1.10$ 1.07$ 3%

Comparable Earnings Per Share (1) 1.22$ 1.07$ 14%

Memo:

Average Shares (Millions) - Diluted 57.3 61.1

Tax Rate 44.1% 37.6%

Second Quarter

(1)

Non-GAAP financial measure; refer to Appendix -

Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years.(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 typically a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used

to measure segment performance.(3)

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

($ Millions, Except Per Share Amounts)

7

Key Financial Statistics

Year-to-Date

(1)


Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years.(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 typically a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used

to measure segment performance.(3)

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

($ Millions, Except Per Share Amounts)

2008 2007 % B/(W)

Operating Revenue (1)(2) 2,388.2$ 2,276.3$ 5%

Fuel Services and Subcontracted Transportation Revenue (3) 815.6 975.8 (16%)

Total Revenue (3) 3,203.8$ 3,252.1$ (1%)

Earnings Per Share 2.06$ 1.90$ 8%

Comparable Earnings Per Share (1) 2.18$ 1.90$ 15%

Memo:

Average Shares (Millions) - Diluted 57.7 61.1

Tax Rate 41.9% 38.5%

Adjusted Return on Capital (Trailing 12 Month) (1) 7.4% 7.6%

8

Business Segment

2008 2007 % B/(W) 2008 2007 % B/(W)Operating Revenue (1):

Fleet Management Solutions 776.3$ 742.2$ 5% 1,201.3$ 1,037.3$ 16%Supply Chain Solutions (2) 349.7 330.0 6% 440.9 584.0 (25)%Dedicated Contract Carriage 141.3 138.1 2% 143.7 141.1 2%Eliminations (51.4) (53.2) 4% (125.7) (104.4) (20)% Total (2) 1,215.9$ 1,157.1$ 5% 1,660.2$ 1,658.0$ 0%

Segment Net Before Tax Earnings:Fleet Management Solutions 115.8$ 97.5$ 19%Supply Chain Solutions 6.8 15.5 (56)%Dedicated Contract Carriage 12.4 12.5 (1)%Eliminations (7.7) (8.0) 3%

127.3 117.5 8%

Central Support Services (Unallocated Share) (8.1) (12.0) 33%Earnings Before Restructuring and Income Taxes (1) 119.2 105.5 13%Restructuring and Other Charges, Net (3) (6.5) (1.2) NMEarnings Before Income Taxes 112.7 104.3 8%Provision for Income Taxes (49.8) (39.2) (27)%

Net Earnings 62.9$ 65.1$ (3)%

Comparable Net Earnings (1) 69.8$ 65.1$ 7%

Memo: Total Revenue

Second Quarter

(1)


Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years.(2)

Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis.(3)

Our primary measure of segment financial performance excludes restructuring and other charges, net and the 2008 Brazil charges related to prior years. The applicable portion of the restructuring and other charges, net that related

to each segment was as follows: SCS –

($6.5) in 2008; FMS –

($1.2) in 2007.

($ Millions)

9

Business Segment

2008 2007 % B/(W) 2008 2007 % B/(W)Operating Revenue (1):

Fleet Management Solutions 1,523.9$ 1,456.1$ 5% 2,307.0$ 2,025.4$ 14%Supply Chain Solutions (2) 691.7 652.1 6% 855.1 1,150.4 (26)%Dedicated Contract Carriage 275.3 273.7 1% 280.9 279.6 0%Eliminations (102.7) (105.6) 3% (239.2) (203.3) (18)% Total (2) 2,388.2$ 2,276.3$ 5% 3,203.8$ 3,252.1$ (1)%

Segment Net Before Tax Earnings:Fleet Management Solutions 207.2$ 178.3$ 16%Supply Chain Solutions 15.1 26.9 (44)%Dedicated Contract Carriage 23.7 22.9 4%Eliminations (15.1) (16.9) 10%

230.9 211.2 9%

Central Support Services (Unallocated Share) (19.7) (20.3) 3%Earnings Before Restructuring and Income Taxes (1) 211.2 190.9 11%Restructuring and Other Charges, Net (3) (6.5) (1.7) NMEarnings Before Income Taxes 204.8 189.2 8%Provision for Income Taxes (85.8) (72.8) (18)%

Net Earnings 119.0$ 116.4$ 2%

Comparable Net Earnings (1) 125.9$ 116.4$ 8%

Memo: Total Revenue

Year-to-Date

(1)


Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years.(2)

Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis.(3)

Our primary measure of segment financial performance excludes restructuring and other charges, net and the 2008 Brazil charges related to prior years. The applicable portion of the restructuring and other charges, net that related

to each segment was as follows: SCS –

($6.5) in 2008; FMS –

($1.5) and SCS –

($0.2) in 2007.

($ Millions)

10

Capital Expenditures

2008 $2008 2007 O/(U) 2007

Full Service Lease 462$ 553$ (91)$

Commercial Rental 120 189 (69)

Operating Property and Equipment 57 46 11 Gross Capital Expenditures 639 788 (149)

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 143 195 (52)

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

Net Capital Expenditures 496$ 443$ 53$

Memo: Acquisitions 207$ -$ 207$

Year-to-Date

($ Millions)

11

Cash Flow

2008 2007

Net Earnings 119$ 116$

Depreciation 415 399

Gains on Vehicle Sales, Net (23) (29) Amortization and Other Non-Cash Charges, Net 15 12

Changes in Working Capital and Deferred Taxes (4) 7 Cash Provided by Operating Activities 522 505

Proceeds from Sales (Primarily Revenue Earning Equipment) 143 195

Sale and Leaseback of Revenue Earning Equipment - 150

Collections of Direct Finance Leases 32 32

Other, Net 1 1 Total Cash Generated (1) 698 883

Capital Expenditures (2) (609) (885) Free Cash Flow (1)(3) 89$ (2)$

(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 and changes in restricted cash

Year-to-Date ($ Millions)

12

275%

171%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 6/30/08 LongTerm

TargetMidpoint

TotalObligationsto Equity

BalanceSheet Debtto Equity

Debt to Equity Ratio

6/30/08 12/31/07 6/30/07Balance Sheet Debt 2,990$ 2,776$ 2,900$ Percent To Equity 162% 147% 161%

Total Obligations (1) 3,159$ 2,954$ 3,096$ Percent To Equity (1) 171% 157% 172%

Total Equity 1,851$ 1,888$ 1,799$

Note: Includes impact of accumulated net pension related equity

charge of $147 million as of 6/30/08, $148 million as of 12/31/07 and $185 million as of 6/30/07.

(1)

Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $169 million as of 6/30/08, $178 million at 12/31/07 and $196 million at 6/30/07.

(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)

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 (organic, acquisitions)

Increase assets under management

Increase financial leverage towards target

$1,054$835

$949$1,091

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

$1,692$1,550

Total Cash Generated (2)

2000 2001 2002 2003 2004 2005 2008Forecast

2006 2007

Gross Capital Expenditures

$1,289

$600$725

$1,165

$657

$1,411$1,195

2000 2001 2002 2003 2004 2005 2008Forecast

Memo: Free Cash Flow (2)

131 367 357 289 (216)(3) 375(242)

Revenue Earning Equipment

PP&E/Other

$1,760

2006

(440)

2007

$1,280

300Total Obligations to Equity Ratio (2)

2000 2001 2002 2003 2004 2006 2008Forecast

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

170%

8,425

($ Millions)

14

Contents


15

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 (units rounded to nearest hundred).(2)

Vehicles no longer earning revenue definition revised in 1Q08 to include all units held for sale and all units that have not earned revenue in 30 days.

►

Units held for sale were 4,600 at quarter end; down 14% from 5,300 units held for sale at the end of the prior quarter

–

Units held for sale were down 56% from 10,400 in the prior year

►

The number of used vehicles sold in the second quarter was 4,400, down 32% compared with prior year as a result of fewer vehicles in inventory

►

Proceeds per unit for tractors and trucks were up 8% and down 11%, respectively, in the second quarter compared with prior year

►

Vehicles no longer earning revenue were 5,500 at quarter end; down 6,500 from the prior year (2)

–

Vehicles no longer earning revenue were down 1,000 vs. the end of the prior quarter, driven primarily by a lower used truck center inventory

►

Average second quarter total commercial rental fleet was down 6% year-over-year

16

Contents


17

EPS Forecast

Third Quarter Full Year

2008 Comparable EPS Forecast $1.25 - 1.30 $4.60 - 4.70 (1)

2007 Comparable EPS $1.14 $4.21 (1)

(1)

Non-GAAP financial measure. 2008 comparable EPS excludes Brazil charges related to prior years of $0.12. 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 totaling a $0.03 benefit.

($ Earnings Per Share)

►Narrowing full year 2008 forecast range from $4.55-$4.75 to $4.60-$4.70

►Current forecast is as follows:

18

Q&A

19

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Asset Management

Financial Indicators Forecast

Non-GAAP Financial Measures & Reconciliations

20

Fleet Management Solutions (FMS)

2008 2007 % B/(W) Full Service Lease 516.1$ 489.2$ 5%Contract Maintenance 41.9 40.0 5%

Contractual Revenue 558.0 529.2 5%

Contract-related Maintenance 50.1 50.1 0%Commercial Rental 146.6 145.3 1%Other 21.6 17.6 23%Operating Revenue (a) 776.3 742.2 5%Fuel Services Revenue 425.0 295.1 44%

Total Revenue 1,201.3$ 1,037.3$ 16%

Segment Net Before Tax Earnings (NBT) 115.8$ 97.5$ 19%Segment NBT as % of Total Revenue 9.6% 9.4%Segment NBT as % of Operating Revenue (a) 14.9% 13.1%

Second 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 rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

21

Fleet Management Solutions (FMS)

2008 2007 % B/(W) Full Service Lease 1,020.3$ 965.2$ 6%Contract Maintenance 82.5 77.2 7%

Contractual Revenue 1,102.8 1,042.4 6%

Contract-related Maintenance 101.8 102.2 0%Commercial Rental 279.3 276.3 1%Other 40.0 35.2 13%Operating Revenue (a) 1,523.9 1,456.1 5%Fuel Services Revenue 783.1 569.3 38%

Total Revenue 2,307.0$ 2,025.4$ 14%


Year-to-Date($ 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 rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

22

Supply Chain Solutions (SCS)

2008 2007 % B/(W)U.S. Operating Revenue Automotive & Industrial 147.0$ 138.3$ 6% High Tech & Consumer Industries 80.4 74.5 8% Transportation Management 10.1 8.1 25%U.S. Operating Revenue (a) 237.5 220.9 7%International Operating Revenue (a) 112.2 109.1 3%Operating Revenue (a) 349.7 330.0 6%Subcontracted Transportation 91.2 254.0 (64)%Total Revenue 440.9$ 584.0$ (25)%

Segment Net Before Tax Earnings (NBT) 6.8$ 15.5$ (56)%Segment NBT as % of Total Revenue 1.5% 2.6%Segment NBT as % of Operating Revenue (a) 1.9% 4.7%

Memo: Fuel Costs 47.2$ 31.3$ (51)%

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 typically a pass-through to customers, the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue

is also used to measure segment performance.

($ Millions)

23

Supply Chain Solutions (SCS)

2008 2007 % B/(W)U.S. Operating Revenue Automotive & Industrial 293.3$ 275.1$ 7% High Tech & Consumer Industries 152.2 149.0 2% Transportation Management 19.1 16.5 15%U.S. Operating Revenue (a) 464.6 440.6 5%International Operating Revenue (a) 227.1 211.5 7%Operating Revenue (a) 691.7 652.1 6%Subcontracted Transportation 163.4 498.3 (67)%Total Revenue 855.1$ 1,150.4$ (26)%


Memo: Fuel Costs 87.7$ 59.2$ (48)%

Year-to-Date

(a)


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



($ Millions)

24

Dedicated Contract Carriage (DCC)

2008 2007 % B/(W)

Operating Revenue (a) 141.3$ 138.1$ 2%Subcontracted Transportation 2.4 3.0 (17)%Total Revenue 143.7$ 141.1$ 2%


Memo: Fuel Costs 36.5$ 26.5$ (37)%

Second Quarter

(a)


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



($ Millions)

25

Dedicated Contract Carriage (DCC)

2008 2007 % B/(W)

Operating Revenue (a) 275.3$ 273.7$ 1%Subcontracted Transportation 5.6 5.9 (4)%Total Revenue 280.9$ 279.6$ 0%


Memo: Fuel Costs 67.2$ 51.2$ (31)%

Year-to-Date

(a)


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



($ Millions)

26

Central Support Services (CSS)

2008 2007 % B/(W)

Allocated CSS Costs 37.0$ 36.2$ (2)%Unallocated CSS Costs 8.1 12.0 33%Total CSS Costs 45.1$ 48.2$ 6%

Second Quarter($ Millions)

27

Central Support Services (CSS)

2008 2007 % B/(W)

Allocated CSS Costs 72.2$ 72.3$ 0%Unallocated CSS Costs 19.7 20.3 3%Total CSS Costs 91.9$ 92.6$ 1%

Year-to-Date($ Millions)

28

Balance Sheet

June 30, December 31,2008 2007

Cash and Cash Equivalents 107$ 116$

Other Current Assets 1,038 1,106

Revenue Earning Equipment, Net 4,679 4,501

Operating Property and Equipment, Net 555 519

Other Assets 689 613 Total Assets 7,068$ 6,855$

Short-Term Debt / Current Portion Long-Term Debt 269$ 223$

Other Current Liabilities 754 797

Long-Term Debt 2,721 2,553

Other Non-Current Liabilities 1,473 1,394

Shareholders' Equity 1,851 1,888 Total Liabilities and Shareholders' Equity 7,068$ 6,855$

($ Millions)

29

Asset Management Update (a)

(a)

U.S. only(b)

Excludes early terminations where customer purchases vehicle

(b)

465

2,684

2,444

2,895

577

2,759

1,544

2,977

1,728

883

2,341

1,959 1,9852,037 1,952

739

1,800

2,102

1,367

2,379

607

2,3072,252

2,789

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Redeployments Extensions Early Terminations Early Replacements

2QYTD 03 2QYTD 04 2QYTD 05 2QYTD 06 2QYTD 07 2QYTD 08

30

Assets Under Management (a)

Forecast2000 2001 2002 2003 2004 2005 2006 2007 6/30/08 2008

Revenue Earning Equipment 4,588$ 4,148$ 4,493$ 5,809$ 6,352$ 6,658$ 7,335$ 7,225$ 7,440$ 7,600$

Direct Finance Leases 637 640 622 656 649 624 592 582 560 580

Operating Leases 1,805 2,140 1,511 286 300 252 214 246 249 245

Assets Under Management 7,030$ 6,928$ 6,626$ 6,751$ 7,301$ 7,534$ 8,141$ 8,053$ 8,249$ 8,425$

(a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder.

($ Millions)

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

Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 8

Comparable Earnings Per Share (EPS) Earnings Per Share (EPS) Net Earnings and EPS Reconciliation 32

Comparable EPS Forecast EPS Forecast EPS Forecast 17

Comparable Net Earnings / EPS Net Earnings / EPS EPS and Net Earnings Reconciliation 32

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

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

12 36

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

EPS and Net Earnings Reconciliation

2Q08 2Q08 YTD08 YTD08Net Earnings EPS Net Earnings EPS

Net Earnings / EPS 62.9$ 1.10$ 119.0$ 2.06$

Less: Brazil Charges 6.8 0.12 6.8 0.12

Comparable Net Earnings / EPS 69.8$ 1.22$ 125.9$ 2.18$

($ Millions or $ Earnings Per Share)

Note: The Brazil charges may not recalculate on an individual basis due to rounding.

33

Adjusted Return on Capital Reconciliation

6/30/08 6/30/07Net Earnings (1) 256$ 247$

Restructuring and Other Charges, Net and Other Items 8 - Income Taxes 165 151

Adjusted Earnings Before Income Taxes 429 398 Adjusted Interest Expense (2) 165 161

Adjusted Income Taxes (3) (234) (212) Adjusted Net Earnings 360$ 347$

Average Total Debt 2,833$ 2,755$ Average Off-Balance Sheet Debt 184 98 Average Adjusted Total Shareholders' Equity (4) 1,845 1,712 Adjusted Average Total Capital 4,862$ 4,565$

Adjusted Return on Capital (5) 7.4% 7.6%

(1) Earnings calculated based on a 12-month rolling period excluding comparable earning items during the 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)

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.(5)

Free Cash Flow excludes acquisitions and changes in restricted cash.

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)

35

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)

Free Cash Flow excludes acquisitions and changes in restricted cash.

6/30/08 6/30/07

Cash Provided by Operating Activities 522$ 505$

Collections of Direct Finance Leases 32 32

Proceeds from Sales (Primarily Revenue Earning Equipment) 143 195

Sale and Leaseback of Revenue Earning Equipment - 150

Other Investing, Net 1 1

Total Cash Generated (1) 698 883

Capital Expenditures (2) (609) (885) Free Cash Flow (3)(4) 89$ (2)$

Memo:

Depreciation Expense 415$ 398$

Gains on Vehicle Sales, Net 23$ 29$

($ Millions)

36

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)

37

Debt to Equity Reconciliation

Forecast % to 12/31/08 Equity

Balance Sheet Debt $2,960 162%

Receivables Sold -

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 160

Total Obligations (1) $3,120 170%

(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)

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