RYDERFINAL Q406presentation

Fourth Quarter 2006 Earnings & 2007 Forecast

February 2, 2007

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 FMS 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

► Fourth Quarter 2006 Results Overview► Asset Management Update► 2007 Forecast► Q & A

4

4th Quarter Results Overview

►

Earnings per diluted share were $1.08, up 17% from $0.92 in 4Q05–

4Q06 includes $0.01 net restructuring and other charges–

4Q05 includes $0.04 restructuring costs, $0.04 charge from cumulative effect of accounting change and $0.03 benefit from discontinued operations

►

Earnings per diluted share from continuing operations were $1.08, up 16% from $0.93 in 4Q05

►

Total revenue up 3% (and operating revenue up 6%)

►

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

–

Fuel revenue down 10% (first decline in recent periods; impacts total revenue)–

Contractual revenue increased 5%•

Full service lease revenue up 5% and contract maintenance revenue up 16%–

Commercial rental revenue down 7%

►

FMS net before tax earnings (NBT) up 3%

–

FMS NBT percent of operating revenue up 10 basis points to 12.8%

►

FMS earnings positively impacted by improved lease and contract maintenance results as well as higher gains on used vehicle sales, partially offset by lower commercial rental results in North America and higher sales & marketing and other compensation-related costs

5

4th Quarter Results Overview (cont’d)

►

Supply Chain Solutions (SCS) total revenue up 13% (and operating revenue up 17%) vs. prior year, reflecting higher volumes, new / expanded business and increased managed subcontracted transportation

►

SCS net before tax earnings (NBT) up 22%

–

SCS NBT percent of operating revenue up 20 basis points to 5.3%

►

SCS earnings positively impacted by higher volumes, and new and expanded business

►

Dedicated Contract Carriage (DCC) total revenue down 2% (and operating revenue down 2%) vs. prior year; decrease due to lower fuel revenues associated with declining fuel prices and volumes

►

DCC net before tax earnings (NBT) up 8%

–

DCC NBT percent of operating revenue up 80 basis points to 8.3%

►

DCC earnings positively impacted by lower safety and insurance costs including hurricane-related recovery

6

Key Financial Statistics

2006 2005 % B/(W)

Operating Revenue (1)(2) 1,146.0$ 1,085.9$ 6%

Fuel Services and Subcontracted Transportation Revenue 448.1 458.9 (2%)

Total Revenue 1,594.1$ 1,544.8$ 3%

Earnings Per Share 1.08$ 0.92$ 17%

Earnings Per Share from Continuing Operations 1.08$ 0.93$ 16%

Memo:EPS Impact of Restructuring and Net Retirement Plan Charges (0.01)$ (0.04)$ Average Shares (Millions) - Diluted 61.2 63.9 Tax Rate 35.3% 36.6%

Fourth 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.

($ Millions, Except Per Share Amounts)

7


Full Year

(1)


Non-GAAP Financial Measures. Comparable earnings per share exclude tax law changes and pension charge.(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.

(3)

Includes 2006 net restructuring and other (charges)/recoveries and the fourth quarter 2006 net retirement plan charges.


2006 2005 % B/(W)Operating Revenue (1)(2) 4,454.2$ 4,210.9$ 6%Fuel Services and Subcontracted Transportation Revenue 1,852.4 1,529.9 21%

Total Revenue 6,306.6$ 5,740.8$ 10%

Earnings Per Share 4.04$ 3.52$ 15%Earnings Per Share from Continuing Operations 4.04$ 3.53$ 14%Comparable Earnings Per Share from Continuing Operations (1) 3.99$ 3.41$ 17%

Memo:EPS Impact of Restructuring and Net Retirement Plan Charges (3) (0.01)$ (0.03)$ EPS Impact of Tax Law Changes 0.11$ 0.12$ EPS Impact of Pension Charge (0.06)$ -$ Average Shares (Millions) - Diluted 61.6 64.6 Tax Rate 36.6% 36.3%Adjusted Return on Capital (1) 7.9% 7.8%

8

Business Segment

2006 2005 % B/(W) 2006 2005 % B/(W)Operating Revenue (1):

Fleet Management Solutions 741.3$ 723.6$ 2% 1,005.4$ 1,016.1$ (1)%Supply Chain Solutions 320.1 274.2 17% 543.1 482.7 13%Dedicated Contract Carriage 135.6 137.8 (2)% 140.2 142.5 (2)%Eliminations (51.0) (49.7) (3)% (94.6) (96.5) 2% Total 1,146.0$ 1,085.9$ 6% 1,594.1$ 1,544.8$ 3%

Segment Net Before Tax Earnings:Fleet Management Solutions 94.5$ 92.0$ 3%Supply Chain Solutions 17.0 14.0 22%Dedicated Contract Carriage 11.2 10.4 8%Eliminations (9.0) (9.5) 3%

113.7 106.9 6%

Central Support Services (Unallocated Share) (11.1) (9.1) (22)%Earnings Before Restructuring and Income Taxes (1) 102.6 97.8 5%

Net and Net Retirement Plan Charges (2) (0.8) (4.0) NAEarnings Before Income Taxes 101.8 93.8 9%Provision for Income Taxes (36.0) (34.3) (5)%Earnings from Continuing Operations 65.8 59.5 11%Earnings from Discontinued Operations - 1.7 NACumulative Effect of Change in Accounting Principle - (2.4) NA

Net Earnings 65.8$ 58.8$ 12%

Memo: Total Revenue

Restructuring and Other (Charges)/Recoveries,

Fourth Quarter

(1)



Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and 2006 net retirement plan charges; however, the applicable portion of the restructuring and other (charges)/recoveries, net and net retirement plan charges that related to each

segment was as follows: FMS -

$0.2, SCS –

($0.9) and CSS –

($0.1) in 2006; and FMS –

($3.3) and SCS –

($0.7) in 2005.

($ Millions)

9

Business Segment

2006 2005 % B/(W) 2006 2005 % B/(W)Operating Revenue (1):

Fleet Management Solutions 2,921.1$ 2,864.9$ 2% 4,096.0$ 3,921.2$ 4%Supply Chain Solutions 1,182.9 1,015.8 16% 2,028.5 1,637.8 24%Dedicated Contract Carriage 548.9 527.0 4% 568.8 543.3 5%Eliminations (198.7) (196.8) (1)% (386.7) (361.5) (7)% Total 4,454.2$ 4,210.9$ 6% 6,306.6$ 5,740.8$ 10%

Segment Net Before Tax Earnings:Fleet Management Solutions 368.1$ 354.4$ 4%Supply Chain Solutions 62.1 39.4 58%Dedicated Contract Carriage 42.6 35.1 21%Eliminations (33.7) (32.7) (3)%

439.1 396.2 11%

Central Support Services (Unallocated Share) (39.5) (35.7) (10)%Earnings Before Restructuring and Income Taxes (1) 399.6 360.5 11%

Net and Net Retirement Plan Charges (2) (6.6) (3.4) NAEarnings Before Income Taxes 393.0 357.1 10%Provision for Income Taxes (144.0) (129.5) (11)%Earnings from Continuing Operations 249.0 227.6 9%Earnings from Discontinued Operations - 1.7 NACumulative Effect of Change in Accounting Principle - (2.4) NA

Net Earnings 249.0$ 226.9$ 10%

Comparable Earnings from Continuing Operations (1) 245.9$ 220.0$ 12%

Memo: Total Revenue

Restructuring and Other (Charges)/Recoveries,

Full Year

(1)



Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and 2006 net retirement plan charges; however, the applicable portion of the restructuring and other (charges)/recoveries, net and net retirement plan charges that related to each

segment was as follows: FMS -

($5.6), SCS –

($0.9) and CSS –

($0.1) in 2006; and FMS –

($2.7) and SCS –

($0.7) in 2005.

($ Millions)

10

Capital Expenditures

2006 $2006 2005 O/(U) 2005

Full Service Lease 1,493$ 1,082$ 411$ Commercial Rental 195 252 (57) Operating Property and Equipment 72 77 (5)

Gross Capital Expenditures 1,760 1,411 349

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 333 334 (1) Net Capital Expenditures 1,427$ 1,077$ 350$

Memo: Acquisitions 4$ 15$ (11)$

Full Year

($ Millions)

11

Cash Flow

2006 2005

Net Earnings 249.0$ 226.9$

Cumulative Effect of Change in Accounting Principle - 2.4

Depreciation 743.3 740.4

Gains on Vehicle Sales, Net (50.8) (47.1) Amortization and Other Non-Cash Charges, Net 27.7 14.4

Changes in Working Capital and Deferred Taxes (115.6) (157.9) Cash Provided by Operating Activities 853.6 779.1

Proceeds from Sales (Primarily Revenue Earning Equipment) 332.7 333.7

Collections of Direct Finance Leases 66.3 70.4

Other Investing, Net 2.1 - Total Cash Generated (1) 1,254.7 1,183.2

Capital Expenditures (2) (1,695.1) (1,399.4)

Acquisitions (4.1) (15.1) Free Cash Flow (1) (444.5)$ (231.3)$

(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

Full Year ($ Millions)

12

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 LongTerm

TargetMidpoint

Total Obligations to Equity

Balance Sheet Debt to Equity

Debt to Equity Ratio

12/31/06 12/31/05 Balance Sheet Debt 2,816.9$ 2,185.4$ Percent To Equity 164% 143%

Total Obligations (1) 2,894.9$ 2,302.4$ Percent To Equity (1) 168% 151%

Total Equity 1,720.8$ 1,527.5$

Note: Includes impact of accumulated net pension related equity

charge of $201 million and $221 million as of 12/31/06 and 12/31/05, respectively.

(1)


Non-GAAP Financial Measures.(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

Note: U.S. only

►

The overall number of used vehicles sold in the fourth quarter was 4,722, down 15% compared with prior year due to reduced levels of wholesale activity

–

Retail vehicles sold were up 3% vs. prior year period

►

Retail sales proceeds per unit were up 1% on tractors and down 6% on trucks in the fourth quarter compared with prior year

►

Vehicles no longer earning revenue are 8,497; up 1,563 or 23% vs. prior year driven primarily by a higher used truck center inventory

–

5,707 of these units are held for sale at the used truck centers

►

Commercial rental fleet is down 2% year-over-year and down 4% from planned fleet levels

15

Contents


16

2007 Overall Environment

Upside / Opportunities Issues / Risks

+

Overall economy stable

+

Lower fuel prices

+

Strength and currency stability in emerging markets

+

Attractive real interest rates

−

Softer housing market

−

Automotive production levels

−

Tight employment markets

−

U.S. dollar strengthening

Modest Inflation

Full Employment

Moderate GDP Growth

Solid Industrial Production

17

FMS Assumptions / Drivers


+

Positive 2006 lease / contract maintenance sales carryover

+

New retention and sales initiatives

+

Stronger cash flow

+

Stable used vehicle pricing and improving vehicle residual values

+

Pension performance benefit due to 2006 market returns and discount rate

+

Continue process improvement initiatives

−

Softer freight demand

•

Declining rental revenue

•

Fewer miles driven

−

OEM tractor production decline & potential market acceptance issues

−

Management of used vehicle inventory through replacement cycle

−

Fuel price volatility (impacts gross revenue growth rate only, not earnings)

18

SCS / DCC Assumptions / Drivers


+

Strong customer retention and business development focus

+

Continue customer base diversification

+

Expand related service offerings

+

Continue process improvement initiatives

−

Softer freight demand

−

Potential automotive volume impacts and plant closures

−

Driver recruiting / retention

−

Potential U.S. dollar strengthening (impacts SCS International)

−

Fuel price volatility (impacts revenue growth rate)

19


2006 % B / (W)Revenue:

Operating (1) (2) $ 4,630 - 4,670 4,454$ 4 - 5%Fuel Services and Subcontracted Transportation 2,020 - 2,060 1,853 9 - 11%Total Revenue $ 6,650 - 6,730 6,307$ 5 - 7%

Earnings: Earnings Before Income Taxes $ 432 - 442 393$ 10 - 12%Provision for Income Taxes (170) - (174) (144) (18 - 21)%Earnings $ 262 - 268 249$ 5 - 8%Comparable Earnings (1) $ 262 - 268 246$ 7 - 9%

Earnings Per Share (EPS):EPS $ 4.30 - 4.40 4.04$ 6 - 9%Comparable EPS (1) $ 4.30 - 4.40 3.99$ 8 - 10%

Memo: Average Shares (millions) - Diluted 61.0 61.6 Tax Rate 39.4% 36.6%Adjusted Return on Capital (1) 7.7 - 7.8% 7.9%

2007Forecast

(1)


Non-GAAP Financial Measures. Comparable earnings and comparable EPS exclude 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.

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


20

Business Segment Revenue

2007 Forecast% Growthvs. 2006

Fleet Management Solutions:Gross Revenue 3 - 4 %Operating Revenue 2 - 4 %

- Contractual Revenue * 5 - 6 %- Commercial Rental Revenue (6 - 7) %

Supply Chain Solutions:Gross Revenue 12 - 14 %Operating Revenue 9 - 10 %

Dedicated Contract Carriage:Gross Revenue 2 - 3 %Operating Revenue 4 - 5 %

* Includes full service lease and contract maintenance

21

2006 StockDemutualization

Tax Rate AssetManagement

EmployeeBenefits

Revenue &Operational

Improvements

2007 Forecast

2007 Causes of EPS Change

(1)


Non-GAAP Financial Measures. Excludes $0.05 net benefit from tax law

changes and pension charge.

($ Earnings Per Share)

+ Depreciation- Used Vehicle

Sales

+ Pension Performance

- Pension Funding Interest

- Medical- SFAS123R

+ Contractual Revenue- Rental Revenue

$3.99 (1) (0.02)

0.03 - 0.05

0.12 - 0.15

0.25 – 0.30 $4.30 - $4.40

(0.07)

22

Business Segment Earnings

Full Year

5.9 6.7 6.08.7 9.0 9.0 9.3

13.112.612.411.2

7.58.27.3

0

5

10

15

2001 2002 2003 2004 2005 2006 2007 ForecastMidpoint

Fleet Management

Solutions

Supply Chain Solutions

Dedicated Contract Carriage

(0.6) (0.4)

2.9 2.7 2.4 3.1 3.0

4.2 4.0 3.95.3 5.3

(0.8) (0.6)

-5

0

5

10


7.77.56.55.86.86.06.2

7.87.86.75.96.96.16.3

0

5

10

15


Segment NBT as % of Total Revenue

Segment NBT as % of Operating Revenue (1)

(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.

23

Capital Expenditures

►

Full Service Lease:–

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

–

2007 lease capital expenditures include:

•

Replacement spending of $800 -

$850 million

•

Growth spending of $80 -

$180 million

–

Growth capital represents an investment which results in $15 -

$35 million of incremental 2007 revenue or $30 -

$65 million of annualized revenue

►

Commercial Rental:–

2007 rental capital expenditures include:

•

Replacement spending of $270 million

24

Capital Expenditures, Cash Flow & Leverage

2007 2006 Forecast

Full Service Lease - Replacement $800 - $850Full Service Lease - Growth 80 - 180

Full Service Lease 1,493$ 880 - 1,030Commercial Rental 195 270Operating Property and Equipment 72 100

Gross Capital Expenditures 1,760 1,250 - 1,400Less: Proceeds from Sales 333 320Less: Proceeds from Sale and Leaseback of

Revenue Earning Equipment - 150Net Capital Expenditures 1,427$ $780 - $930

Assets Under Management 8,141$ $8,225 - $8,325

Cash Provided by Operating Activities 854$ $1,050 - $1,150Total Cash Generated (1) 1,255$ $1,385 - $1,585Free Cash Flow (1) (444)$ $210 - $260

Total Obligations to Equity (1) 168% 135% - 145%

Full Year($ Millions)

(1)


Non-GAAP Financial Measures.

25

EPS Forecast

First Quarter Full Year

2007 EPS Forecast $ 0.80 - 0.84 $ 4.30 - 4.40

2006 Comparable EPS 0.77$ (1) 3.99$ (2)

(1)

First quarter 2006 includes $0.02 benefit from stock demutualization.(2)

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

($ 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

►

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)

2006 2005 % B/(W)

Full Service Lease 472.4$ 451.1$ 5%Contract Maintenance 37.9 32.6 16%

Contractual Revenue 510.3 483.7 5%

Contract-related Maintenance 48.7 47.6 2%Commercial Rental 163.4 175.3 (7)%Other 18.9 17.0 11%Operating Revenue (a) 741.3 723.6 2%Fuel Services Revenue 264.1 292.5 (10)%

Total Revenue 1,005.4$ 1,016.1$ (1)%

Segment Net Before Tax Earnings (NBT) 94.5$ 92.0$ 3%Segment NBT as % of Total Revenue 9.4% 9.1%Segment NBT as % of Operating Revenue (a) 12.8% 12.7%

Fourth 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)

30

Fleet Management Solutions (FMS)

2006 2005 % B/(W)

Full Service Lease 1,848.3$ 1,785.6$ 4%Contract Maintenance 141.9 134.5 6%

Contractual Revenue 1,990.2 1,920.1 4%

Contract-related Maintenance 193.1 191.1 1%Commercial Rental 665.7 686.3 (3)%Other 72.1 67.4 7%Operating Revenue (a) 2,921.1 2,864.9 2%Fuel Services Revenue 1,174.9 1,056.3 11%

Total Revenue 4,096.0$ 3,921.2$ 4%


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 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)

31

Supply Chain Solutions (SCS)

2006 2005 % B/(W) U.S. Operating Revenue Automotive & Industrial 127.4$ 116.5$ 9% High Tech & Consumer Industries 74.1 69.9 6% Transportation Management 8.3 6.4 30%U.S. Operating Revenue 209.8 192.8 9%International Operating Revenue 110.3 81.4 36%Operating Revenue (a) 320.1 274.2 17%Subcontracted Transportation 223.0 208.5 7%Total Revenue 543.1$ 482.7$ 13%


Memo: Fuel Costs 24.9$ 25.5$ 2%

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)

2006 2005 % B/(W) U.S. Operating Revenue Automotive & Industrial 495.4$ 449.4$ 10% High Tech & Consumer Industries 291.9 252.0 16% Transportation Management 30.7 25.0 23%U.S. Operating Revenue 818.0 726.4 13%International Operating Revenue 364.9 289.4 26%Operating Revenue (a) 1,182.9 1,015.8 16%Subcontracted Transportation 845.6 622.0 36%Total Revenue 2,028.5$ 1,637.8$ 24%


Memo: Fuel Costs 104.2$ 92.0$ (13)%


(a)




33

Dedicated Contract Carriage (DCC)

2006 2005 % B/(W)

Operating Revenue (a) 135.6$ 137.8$ (2)% Subcontracted Transportation 4.6 4.7 (2)%Total Revenue 140.2$ 142.5$ (2)%


Memo: Fuel Costs 24.3$ 26.4$ 8%

Fourth Quarter($ Millions)

(a)




34

Dedicated Contract Carriage (DCC)

2006 2005 % B/(W)

Operating Revenue (a) 548.9$ 527.0$ 4% Subcontracted Transportation 19.9 16.3 22%Total Revenue 568.8$ 543.3$ 5%


Memo: Fuel Costs 104.6$ 94.1$ (11)%


(a)




35

Central Support Services (CSS)

2006 2005 % B/(W)

Allocated CSS Costs 38.2$ 41.8$ 9%Unallocated CSS Costs 11.1 9.1 (22)%Total CSS Costs 49.3$ 50.9$ 3%

Fourth Quarter($ Millions)

36

Central Support Services (CSS)

2006 2005 % B/(W)

Allocated CSS Costs 152.6$ 162.6$ 6%Unallocated CSS Costs 39.5 35.7 (10)%Total CSS Costs 192.1$ 198.3$ 3%


37

Balance Sheet

December 31, December 31,2006 2005

Cash and Cash Equivalents 128.6$ 128.7$

Other Current Assets 1,133.2 1,035.1

Revenue Earning Equipment, Net 4,509.3 3,794.4

Operating Property and Equipment, Net 499.0 486.8

Other Assets 558.8 588.3 Total Assets 6,828.9$ 6,033.3$

Short-Term Debt / Current Portion Long-Term Debt 332.7$ 269.4$

Other Current Liabilities 934.9 984.0

Long-Term Debt 2,484.2 1,916.0

Other Non-Current Liabilities 1,356.3 1,336.4

Shareholders' Equity 1,720.8 1,527.5 Total Liabilities and Shareholders' Equity 6,828.9$ 6,033.3$

($ Millions)

38

1,416

7,229

2,850

5,543

1,094

6,253

5,313

5,650

4,167

967

4,938

4,750

3,042

4,5965,008

1,584

3,9964,104

1,646

4,539

1,839

3,748

3,572

4,360

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Redeployments Extensions Early Terminations Early Replacements

FY01 FY02 FY03 FY04 FY05 FY06

Asset Management Update (a)

(a)

U.S. only(b)

Excludes early terminations where customer purchases vehicle

(b)

39

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

$1,078$1,263 $1,183 $1,255

$1,485

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 8,2757,030

275%

201%

146%129%

234%

151% 140%

Equity

Total Obligations (2)

2005

168%

8,141

Gross Capital Expenditures

$1,289

$600$725

$1,165

$657

$1,411 $1,325


Memo: Free Cash Flow (2)

131 367 260 140 (231)(3) 235(270)

Revenue Earning Equipment

PP&E/Other

$1,760

2006

(444)

40

Assets Under Management (a)

ForecastMidpoint

2000 2001 2002 2003 2004 2005 2006 2007 (b)

Revenue Earning Equipment 4,587.7$ 4,147.3$ 4,493.6$ 5,809.1$ 6,352.4$ 6,657.4$ 7,335.2$ 7,370.0$

Direct Finance Leases 637.4 640.0 622.2 655.6 649.1 624.3 592.0 580.0

Operating Leases 1,804.9 2,140.3 1,510.6 286.2 299.5 251.8 213.6 325.0

Assets Under Management 7,030.0$ 6,927.6$ 6,626.4$ 6,750.9$ 7,301.0$ 7,533.5$ 8,140.8$ 8,275.0$

($ 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.

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. Unless otherwise noted, these non-GAAP financial measures are presented for the fourth quarter 2006, full year 2006 and 2007 forecast.

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

Comparable EPS / Earnings Excluding Tax Changes and Pension Charge

EPS / Net Earnings Appendix - EPS and Earnings Reconciliation 42

Operating Revenue Total Revenue Key Financial Statistics 6 - 7 & 19

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

Adjusted Return on Capital Net Earnings Appendix - Adjusted Return on Capital Reconciliation

43

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

Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Appendix - Debt to Equity Reconciliation 46 - 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

FY05 - FY05 - Net Earnings EPS

Earnings from Continuing Operations $ 227.6 $ 3.53

Excluding Tax Law Change 7.6 0.12

Comparable Earnings from Continuing Operations $ 220.0 $ 3.41

FY06 - FY06 -Net Earnings EPS*

Earnings from Continuing Operations $ 249.0 $ 4.04

Excluding Tax Law Changes and Pension Charge 3.1 0.05

Comparable Earnings from Continuing Operations $ 245.9 $ 3.99

EPS and 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

ForecastMidpoint12/31/07 12/31/06 12/31/05

Net Earnings (1) 265$ 249$ 227$ Discontinued Operations - - (2) Cumulative Effect of Changes in Accounting Principles - - 2 Income Taxes 172 144 130

Adjusted Earnings Before Income Taxes 437 393 357 Adjusted Interest Expense (2) 171 147 127 Adjusted Income Taxes (3) (239) (207) (186) Adjusted Net Earnings 369$ 333$ 298$

Average Total Debt 2,818$ 2,480$ 2,148$ Average Off-Balance Sheet Debt 140 99 148 Average Adjusted Total Shareholders' Equity (4) 1,822 1,605 1,550 Adjusted Average Total Capital 4,780$ 4,184$ 3,846$

Adjusted Return on Capital (5) 7.7% 7.9% 7.8%

(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)

44

Cash Flow Reconciliation

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

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

Total Cash Generated (1) 1,054 835 949 1,078 1,263 1,183 1,255

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

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

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$

(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, 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)

45

Cash Flow Reconciliation

ForecastMidpoint12/31/07

Cash Provided by Operating Activities 1,100$

Collections of Direct Finance Leases 65

Proceeds from Sales (Primarily Revenue Earning Equipment) 320

Total Cash Generated (1) 1,485

Capital Expenditures (2) (1,400)

Proceeds from Sale and Leaseback of Revenue Earning Equipment 150 Free Cash Flow (3) 235$

(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, 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 % 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.

($ Millions)

47

Debt to Equity Reconciliation

ForecastMidpoint % to

12/31/07 Equity

Balance Sheet Debt 2,550$ 130%

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 190

Total Obligations (1) 2,740$ 140%

(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

RYDERFINAL Q406presentation