4q 2016 ryder system inc earnings presentation

© 2015 Ryder System, Inc.

All Rights Reserved.

Fourth Quarter 2016 Earnings &

2017 Forecast Conference Call

February 2, 2017


All Rights Reserved. 2

Safe Harbor and Non-GAAP Financial Measures

Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of

1995, including our expectations regarding market trends, earnings performance, revenue in our business segments, fleet size, performance in our product lines,

demand and pricing trends in commercial rental and used vehicle sales, return on capital spread, free cash flow, capital expenditures, anticipated resumption of

our share repurchase program and the impact and adequacy of steps we have taken to address our cost structure, including workforce reductions. 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, lower than expected lease sales, further decreases in commercial rental demand or poor acceptance of rental pricing, our ability to return out of service

vehicles to the fleet, availability of rental vehicles to meet demand and availability of labor to maintain our fleet at normalized levels, worsening of market demand

for used vehicles impacting current pricing and our anticipated proportion of retail versus wholesale sales, lack of customer demand for on-demand maintenance,

higher than expected maintenance costs from newer engine technology or due to lower than expected benefits from maintenance initiatives and a newer fleet,

setbacks or uncertainty in the economic market, decreases in freight demand or volumes, poor operational execution particularly with start-ups and new product

launches, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economic conditions, slower than

expected economic recovery in the U.K., business interruptions or expenditures due to severe weather or natural occurrences, competition from other service

providers and new entrants, customer retention levels, loss of key customers, driver and technician shortages resulting in higher procurement costs and turnover

rates, unexpected bad debt reserves or write-offs, changes in customers’ business environments that will limit their ability to commit to long-term vehicle leases, a

decrease in credit ratings, increased debt costs, adequacy of accounting estimates, reserves and accruals particularly with respect to pension, taxes,

depreciation, insurance and revenue, sudden or unusual changes in fuel prices, unanticipated currency exchange rate fluctuations, our ability to manage our cost

structure, 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.

Note Regarding Non-GAAP Financial Measures: This presentation includes certain non-GAAP financial measures as defined under SEC rules, including:

Comparable Earnings Measures, which consist of comparable earnings from continuing operations, comparable earnings per share from continuing

operations (as well as forecasts), comparable earnings before income tax and comparable tax rate. Additionally, our adjusted return on average capital

(ROC) and adjusted return on capital spread (ROC spread) measures are calculated based on comparable earnings items.

Operating Revenue Measures, which consist of operating revenue and operating revenue growth excluding foreign exchange for Ryder and its business

segments, and segment EBT as a percentage of operating revenue.

Cash Flow Measures, which consist of total cash generated and free cash flow.

Debt Measures, including total obligations and total obligations to equity.

Refer to Appendix - Non-GAAP Financial Measures, beginning on slide 43, for reconciliations of the non-GAAP financial measures contained in this presentation

to the nearest GAAP measure. Additional information regarding non-GAAP financial measures as required by Regulation G and Item 10(e) of Regulation S-K can

be found in our most recent Form 10-K and our Form 8-K filed with the SEC as of the date of this presentation, which are available at http://investors.ryder.com.



Contents

• Fourth Quarter 2016 Results Overview

• Used Vehicle Sales Update

• 2017 Forecast

• Q & A



4th Quarter Results Overview

• Earnings per diluted share from continuing operations were $0.92 in 4Q16 vs.

$1.42 in 4Q15

- 4Q16 included restructuring and other charges of $0.06 and non-operating pension costs of $0.09

- 4Q15 included restructuring and other charges of $0.19 and non-operating pension costs of $0.05

• Comparable earnings per share from continuing operations were $1.07 in 4Q16

vs. $1.66 in 4Q15

- Lower gains negatively impacted 4Q16 results by $0.31

- Higher valuation adjustments on vehicles held for sale and accelerated depreciation

for vehicles expected to be made available for sale through mid-2018 negatively

impacted 4Q16 results by $0.35

• Total revenue increased 3% (up 5% excluding foreign exchange) and operating

revenue increased 2% (up 3% excluding foreign exchange) vs. prior year

- Total revenue benefited from increased operating revenue and higher purchased transportation, partially offset by foreign exchange (FX)

- Operating revenue increased due to higher contractual revenue in all business segments, partially offset by lower transactional rental revenue and FX



Key Financial Statistics

Fourth Quarter ($ Millions, Except Per Share Amounts)

Note: Amounts throughout presentation may not be additive due to rounding.

2016 2015 %B/(W)

Total Revenue $ 1,729.2 $ 1,672.7 3 %

Fuel and Subcontracted Transportation 262.2 231.0 14 %

Operating Revenue $ 1,466.9 $ 1,441.7 2 %

Earnings Per Share from Continuing Operations $ 0.92 $ 1.42 (35 )%

Comparable Earnings Per Share from Continuing Operations $ 1.07 $ 1.66 (36 )%

Memo:

Average Shares (Millions) - Diluted 53.4 53.3

Tax Rate from Continuing Operations 28.8 % 32.0 %

Comparable Tax Rate from Continuing Operations 30.1 % 32.1 %



Key Financial Statistics

Full Year ($ Millions, Except Per Share Amounts)

Note: Amounts throughout presentation may not be additive due to rounding.

2016 2015 %B/(W)

Total Revenue $ 6,787.0 $ 6,571.9 3 %

Fuel and Subcontracted Transportation 996.1 1,010.8 (1 )%

Operating Revenue $ 5,790.9 $ 5,561.1 4 %

Earnings Per Share from Continuing Operations $ 4.94 $ 5.73 (14 )%

Comparable Earnings Per Share from Continuing Operations $ 5.42 $ 6.13 (12 )%

Memo:



Comparable Tax Rate from Continuing Operations 35.3 % 35.3 % Adjusted Return on Capital vs. Cost of Capital (Trailing 12 months) 0.5 % 1.4 %



4th Quarter Results Overview – FMS

• Fleet Management Solutions (FMS) total revenue unchanged and operating revenue down 1% (up 1% ex-FX)

- Full service lease revenue up 5% (up 6% ex-FX)

· - Contract maintenance revenue down 1%

- Commercial rental revenue down 14%

- Contract-related maintenance revenue up 1%

• FMS earnings declined due to lower used vehicle sales results and, to a lesser extent, lower commercial rental results and accelerated depreciation for vehicles expected to be made available for sale through mid-2018

- This decline was partially offset by higher full service lease performance and reduced overhead spending

• FMS earnings before tax (EBT) down 48%

- FMS EBT percent of FMS total revenue down 510 basis point to 5.6%

- FMS EBT percent of FMS operating revenue down 590 basis points to 6.5%



4th Quarter Results Overview – DTS

• Dedicated Transportation Solutions (DTS) total revenue up 11% and operating revenue up 3%

- DTS total revenue reflects higher purchased transportation and increased operating revenue

- DTS operating revenue increased due to higher volumes, increased pricing and new business

• DTS earnings increased due to better operating performance and customer bankruptcy-related charges in prior year's results

• DTS earnings before tax (EBT) up 38%

- DTS EBT percent of DTS total revenue up 120 basis points to 6.0%

- DTS EBT percent of DTS operating revenue up 200 basis points to 7.9%



4th Quarter Results Overview – SCS

• Supply Chain Solutions (SCS) total revenue up 10% (up 12% ex-FX) and operating revenue up 9% (up 11% ex-FX)

- Higher SCS total revenue and operating revenue primarily reflect new business and higher volumes

·

• SCS earnings increased due to higher operating revenue

• SCS earnings before tax (EBT) up 11%

- SCS EBT percent of SCS total revenue unchanged at 6.1%

- SCS EBT percent of SCS operating revenue up 10 basis points to 7.5%



Capital Expenditures

Full Year ($ Millions)

2016 2015 2016 $

O/(U) 2015

Full Service Lease $ 1,548 $ 2,060 $ (512 )

Commercial Rental 83 523 (440 )

Operating Property and Equipment 133 113 20

Gross Capital Expenditures 1,763 2,696 (933 )

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 421 427 (6 )

Net Capital Expenditures $ 1,342 $ 2,269 $ (927 )



Cash Flow from Continuing Operations


(1) Reflects revised reporting of vehicle gains on sale, net of vehicle valuation adjustments.

(2) Included in cash flows from investing activities.

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

(4) Free Cash Flow excludes acquisitions and changes in restricted cash.

2016 2015

Earnings from Continuing Operations $ 265 $ 306

Depreciation 1,187 1,122

Gains on Used Vehicles, Net (1) (1 ) (100 )

Amortization and Other Non-Cash Charges, Net 87 92

Pension Contributions (128 ) (34 )

Changes in Working Capital and Deferred Taxes 191 56

Cash Provided by Operating Activities 1,601 1,442

Proceeds from Sales (Primarily Revenue Earning Equipment)(2) 421 427

Collections of Direct Finance Leases & Other(2) 77 71

Total Cash Generated 2,099 1,940

Capital Expenditures (2), (3) (1,905 ) (2,668 )

Free Cash Flow (4) $ 194 (728 )



Debt to Equity Ratio

(1) Represents long term debt to equity target of 225 - 275% while maintaining a solid investment grade rating.

(2) Illustrates impact of accumulated net pension related equity charge on leverage.

(3) Total Equity includes impact of accumulated net pension related equity charge of $627 million as of 12/31/2016 and $577 million as of 12/31/2015.

($ Millions)

12/31/2016 12/31/2015

Total Debt $ 5,391 $ 5,503

Total Equity (3) $ 2,052 $ 1,987

Debt to Equity 263 % 277 %

(1)

(2)

%



Contents



• 2017 Forecast

• Q & A



• Units held for sale, as reported, were 7,500 at quarter end, down from 8,000 units in the prior year

– Units held for sale exclude an increased number of lease vehicles (1,200) being prepared for sale

– Including these vehicles in units held for sale, results in an increase of 700 vehicles vs. prior year and a decrease of 300 vehicles sequentially

• The number of used vehicles sold in the fourth quarter was 4,500, consistent with prior year

– Units sold were up 13% sequentially

• Proceeds per unit were down 17% for tractors and down 12% for trucks in the fourth quarter compared with prior year (excluding the FX impact), partially due to increased wholesaling

– Proceeds per unit were down 12% for tractors and down 15% for trucks sequentially

• Proceeds per unit were down 26% for tractors and down 17% for trucks vs. the second quarter 2015 peak

– Retail pricing was down 18% for tractors and down 8% for trucks vs. 2Q15 peak

Global Used Vehicle Sales Update



Contents



• 2017 Forecast

• Q & A



2017 Forecast Assumptions

General

• Moderate to slow overall economic environment

• Rising variable interest rates

• Foreign exchange rates stable; negative year-over-year FX impact

FMS

• Lease fleet up 3,500 vehicles driven by secular trends and sales initiatives, partly offset by a lower OEM production environment

• Rental demand down 3%, pricing up 1% with higher utilization on a smaller fleet

• Used vehicle sales pricing down 15 - 20% yoy

• Adverse depreciation policy EPS impact of $0.07 due to lower tractor residuals

• Incremental EPS impact of $0.16 yoy from accelerated depreciation on vehicles expected to be made available for sale through mid-2018

• Higher rental capital expenditures driven by replacements



2017 Forecast Assumptions

DTS

• Revenue growth reflects moderate new sales activity in 2H16

• Earnings benefit from revenue growth and lower overhead costs, largely offset by higher expected insurance costs

SCS

• Revenue growth driven by new sales and higher volumes

• Earnings benefit from revenue growth

Other

• Significant discretionary and overhead cost reductions

- Continued investment in key growth initiatives

• 500k catch-up of anti-dilutive share repurchases forecasted for mid-year

• Higher tax rate primarily reflects non-recurrence of prior year benefits



Key Financial Statistics ($ Millions, Except Per Share Amounts)

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

2017 Forecast 2016 %B/(W)

Revenue:

Total Revenue $ 7,051 $ 6,787 4 %

Fuel and Subcontracted Transportation 1,074 996 8 %

Operating Revenue $ 5,977 $ 5,791 3 %

Earnings From Continuing Operations:

Earnings Before Income Taxes $ 400 - 425 $ 406 (2) - 5%

Earnings $ 255 - 271 $ 265 (4) - 2%

Comparable Earnings Before Income Taxes $ 429 - 454 $ 449 (4) - 1%

Comparable Earnings $ 272 - 288 $ 290 (6) - (1)%

Earnings Per Share (EPS) from Continuing Operations:

EPS $ 4.78 - 5.08 $ 4.94 (3) - 3%

Comparable EPS $ 5.10 - 5.40 $ 5.42 (6) - (0)%

Memo:



Comparable Tax Rate from Continuing Operations 36.5 % 35.3 %

Adjusted Return on Capital vs. Cost of Capital 0.5 % 0.5 %



Business Segment Revenue

2017 Forecast Change % vs. 2016

Fleet Management Solutions:

Total Revenue 2%

Operating Revenue (1) 3%

Full Service Lease Revenue 4%

Commercial Rental Revenue (1)%

Dedicated Transportation Solutions:

Total Revenue 4%

Operating Revenue (1)(2) 3%

Supply Chain Solutions:

Total Revenue 8%

Operating Revenue (1)(2) 5%

(1) Excludes fuel revenue

(2) Excludes subcontracted transportation revenue



2017 Causes of Comparable EPS Change(1)

($ Earnings Per Share)

Note: Full year impact of residual values change totals negative $0.07

- Demand + Depreciation

- Tax

- Shares

- FX

(1) Represents Comparable EPS from Continuing Operations

$0.13

$0.30

$5.42

$0.23

SCS DTS Insurance Overhead

Actions

Variable

Interest 2016 Actual

$0.30

$0.32 $5.53 $5.10 -

$5.40

$0.13

$0.06

$0.08

$0.08 $0.15

$0.28 $0.09

$0.30

Compensation

- Bonus

- Merit + Fleet

- Depreciation

Insurance Strategic

Investments

DTS SCS FMS

Contractual

Commercial

Rental

UVS/ Accel

Deprec

+ Fleet

+ Rate

- Depreciation

- Tax

- FX

+ Shares

Tax/Share/Fx Overhead

Actions

2017 Forecast

$5.42



Capital Expenditures, Cash Flow & Leverage


2017 Forecast 2016

Full Service Lease

Replacement $ 1,045 $ 963

Growth 520 585

Total Full Service Lease 1,565 1,548

Commercial Rental (Replacement) 260 83

Operating Property and Equipment 140 133

Gross Capital Expenditures 1,965 1,763

Less: Proceeds from Sales 390 421

Net Capital Expenditures $ 1,575 $ 1,342

Cash Provided by Operating Activities $ 1,700 $ 1,601

Total Cash Generated $ 2,170 $ 2,099

Free Cash Flow $ 250 $ 194

Total Debt to Equity 240 % 263 %



263

405

275

382

556

691

Growth Capital Expenditures

Free Cash Flow $614 258 (257) (488) (340) (315) (728) 194 250

Operating Cash Flow $985 1,028 1,042 1,160 1,252 1,383 1,442 1,601 1,700

($ Millions)

2017

Forecast 2009 2010 2011 2012 2013 2014 2015 2016 2017

Forecast

520 585

1,292

907

733

566

723

180

$0



EPS Forecast – Continuing Operations ($ Earnings Per Share)

First Quarter 2017 Full Year 2017

EPS Forecast $0.74 - 0.84 $4.78 - 5.08

Comparable EPS Forecast $0.82 - 0.92 $5.10 - 5.40


EPS $1.05 $4.94

Comparable EPS $1.12 $5.42



Q&A



Appendix

Full Service Lease Vehicle Count

Business Segment Detail

Central Support Services

Balance Sheet

Adjusted Return on Capital History

Financial Indicators Forecast

Asset Management

Non-GAAP Financial Measures & Reconciliations



Full Service Lease (FSL) Fleet Count

4Q15 1Q16 2Q16 3Q16 (A) 4Q16 (A)

4Q16 (A)

O/(U) 4Q15

End of Period

FSL Vehicles (as reported) 131,800 133,300 134,300 136,600 136,500 4,700

UK FSL Trailers 3,900 3,700 3,400 3,500 3,300 (600 )

FSL Vehicles - excluding UK 127,900 129,600 130,900 133,100 133,200 5,300

1Q16 O/(U) 4Q15

2Q16 O/(U) 1Q16

3Q16 O/(U) 2Q16

4Q16 (A) O/(U) 3Q16

Sequential Change

FSL Vehicles (as reported) 1,500 1,000 2,300 (100 )

UK FSL Trailers (200 ) (300 ) 100 (200 )

FSL Vehicles - excluding UK 1,700 1,300 2,200 100

(A) 4Q16 and 3Q16 include a higher number of vehicles being prepared for sale (approximately 1,200 in 4Q16 and 1,500 in 3Q16)

Note: Represents end of period vehicle count.



Business Segments

(1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items.

($ Millions)

Fourth Quarter

Memo: Operating Revenue

2016 2015 % B/(W) 2016 2015 % B/(W)

Total Revenue:

Fleet Management Solutions $ 1,151.7 $ 1,151.6 — % $ 992.3 $ 999.4 (1 )%

Dedicated Transportation Solutions 256.9 232.4 11 % 193.1 187.6 3 %

Supply Chain Solutions 430.2 392.5 10 % 352.7 322.1 9 %

Eliminations (109.6 ) (103.8 ) (6 )% (71.2 ) (67.3 ) (6 )%

Total $ 1,729.2 $ 1,672.7 3 % $ 1,466.9 $ 1,441.7 2 %

Segment Earnings Before Tax: (1)

Fleet Management Solutions $ 64.4 $ 123.5 (48 )%

Dedicated Transportation Solutions 15.3 11.1 38 %

Supply Chain Solutions 26.4 23.8 11 %

Eliminations (13.0 ) (12.1 ) (8 )%

93.1 146.3 (36 )%

Central Support Services (Unallocated Share) (10.8 ) (15.6 ) 31 %

Non-operating Pension Costs (8.0 ) (4.8 ) (66 )%

Restructuring and Other Items (5.1 ) (14.2 ) NM

Earnings Before Income Taxes $ 69.2 $ 111.7 (38 )%

Provision for Income Taxes (19.9 ) (35.8 ) 44 %

Earnings from Continuing Operations $ 49.3 $ 75.9 (35 )%

Comparable Earnings from Continuing Operations $ 57.5 $ 88.8 (35 )%



Business Segments ($ Millions)

Full Year

Memo: Operating Revenue

2016 2015 % B/(W) 2016 2015 % B/(W)

Total Revenue:

Fleet Management Solutions $ 4,556.2 $ 4,545.7 — % $ 3,947.7 $ 3,846.0 3 %

Dedicated Transportation Solutions 1,020.9 895.5 14 % 774.3 714.5 8 %

Supply Chain Solutions 1,637.9 1,547.8 6 % 1,352.1 1,256.3 8 %

Eliminations (428.0 ) (417.1 ) (3 )% (283.2 ) (255.7 ) (11 )%

Total $ 6,787.0 $ 6,571.9 3 % $ 5,790.9 $ 5,561.1 4 %

Segment Earnings Before Tax: (1)

Fleet Management Solutions $ 370.8 $ 462.1 (20 )%

Dedicated Transportation Solutions 63.6 45.8 39 %

Supply Chain Solutions 105.6 93.8 13 %

Eliminations (50.1 ) (47.2 ) (6 )%

489.8 554.5 (12 )%

Central Support Services (Unallocated Share) (40.9 ) (48.5 ) 16 %

Non-operating Pension Costs (29.7 ) (19.2 ) (55 )%

Restructuring and Other Items (12.7 ) (17.6 ) NM

Earnings Before Income Taxes $ 406.4 $ 469.2 (13 )%

Provision for Income Taxes (141.7 ) (163.2 ) 13 %

Earnings from Continuing Operations $ 264.6 $ 306.0 (14 )%

Comparable Earnings from Continuing Operations $ 290.4 $ 327.3 (11 )%

(1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items.



Fleet Management Solutions (FMS)

Fourth Quarter

($ Millions)

Revenue 2016 2015 % B/(W)

Full Service Lease $ 655.2 $ 624.6 5 %

Contract Maintenance 48.4 48.9 (1 )%

Contractual Revenue 703.7 673.5 4 %

Commercial Rental 210.3 245.3 (14 )%

Contract-related Maintenance 59.9 59.6 1 %

Other 18.4 21.0 (12 )%

FMS Operating Revenue 992.3 999.4 (1 )%

Fuel Services Revenue 159.5 152.2 5 %

FMS Total Revenue $ 1,151.7 $ 1,151.6 — %

FMS Earnings Before Tax

FMS Earnings Before Tax (EBT) $ 64.4 $ 123.5 (48 )%

FMS EBT as a % of FMS Total Revenue 5.6 % 10.7 %

FMS EBT as a % of FMS Operating Revenue 6.5 % 12.4 %



Fleet Management Solutions (FMS)


Revenue 2016 2015 % B/(W)

Full Service Lease $ 2,573.6 $ 2,406.7 7 %

Contract Maintenance 199.9 192.5 4 %

Contractual Revenue 2,773.6 2,599.2 7 %

Commercial Rental 846.3 940.0 (10 )%

Contract-related Maintenance 249.8 229.2 9 %

Other 78.0 77.6 1 %

FMS Operating Revenue 3,947.7 3,846.0 3 %

Fuel Services Revenue 608.5 699.6 (13 )%

FMS Total Revenue $ 4,556.2 $ 4,545.7 — %

Earnings Before Tax

FMS Earnings Before Tax (EBT) $ 370.8 $ 462.1 (20 )%

FMS EBT as a % of FMS Total Revenue 8.1 % 10.2 %

FMS EBT as a % of FMS Operating Revenue 9.4 % 12.0 %



New FMS Product Line Reporting

Revenue 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016

ChoiceLease $ 622.9 $ 646.3 $ 649.2 $ 655.2 $ 2,573.6

SelectCare 114.4 113.9 113.1 108.4 449.7

Commercial Rental 204.8 214.6 216.6 210.3 846.3

Other 20.2 20.4 19.0 18.4 78.0

FMS Operating Revenue 962.3 995.2 997.9 992.3 3,947.7

Fuel Services Revenue 135.6 156.3 157.1 159.5 608.5

FMS Total Revenue $ 1,097.9 $ 1,151.5 $ 1,155.0 $ 1,151.7 $ 4,556.2

In 2016, Ryder renamed the full service lease and contract maintenance products to ChoiceLease

and SelectCare, respectively. Beginning in 2017, FMS will report revenues using these new names.

In addition, the historical Contract-Related Maintenance product will be included in SelectCare.

Historical reclassified financial amounts are shown below and on the following page:

($ Millions)



New FMS Product Line Reporting

Revenue 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015

ChoiceLease $ 577.1 $ 595.7 $ 609.3 $ 624.6 $ 2,406.7

SelectCare 99.1 105.5 108.5 108.5 421.7


Other 17.9 18.8 20.0 21.0 77.6


Fuel Services Revenue 188.0 190.3 169.2 152.2 699.6


Revenue 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014

ChoiceLease $ 552.2 $ 566.1 $ 575.8 $ 582.2 $ 2,276.4

SelectCare 99.8 102.8 103.7 99.8 406.1


Other 17.7 17.3 18.1 17.9 71.1


Fuel Services Revenue 275.2 273.3 255.0 221.7 1,025.2


($ Millions)



Dedicated Transportation Solutions (DTS) ($ Millions)

Fourth Quarter

Revenue 2016 2015 % B/(W)

DTS Operating Revenue $ 193.1 $ 187.6 3 %

Subcontracted Transportation 36.6 18.4 99 %

Fuel 27.2 26.5 3 %

DTS Total Revenue $ 256.9 $ 232.4 11 %

Earnings Before Tax

DTS Earnings Before Tax (EBT) $ 15.3 $ 11.1 38 %

DTS EBT as a % of DTS Total Revenue 6.0 % 4.8 %

DTS EBT as a % of DTS Operating Revenue 7.9 % 5.9 %



Dedicated Transportation Solutions (DTS) ($ Millions)

Full Year

Revenue 2016 2015 % B/(W)

DTS Operating Revenue $ 774.3 $ 714.5 8 %


Fuel 103.1 119.9 (14 )%

DTS Total Revenue $ 1,020.9 $ 895.5 14 %

Earnings Before Tax

DTS Earnings Before Tax (EBT) $ 63.6 $ 45.8 39 %

DTS EBT as a % of DTS Total Revenue 6.2 % 5.1 %

DTS EBT as a % of DTS Operating Revenue 8.2 % 6.4 %



Supply Chain Solutions (SCS) ($ Millions)

Fourth Quarter

Revenue 2016 2015 % B/(W)

Automotive $ 141.6 $ 121.9 16 %

Technology & Healthcare 65.3 65.4 — %

CPG & Retail 111.6 108.6 3 %

Industrial & Other 34.2 26.1 31 %

SCS Operating Revenue 352.7 322.1 9 %


Fuel 16.2 15.5 5 %

SCS Total Revenue $ 430.2 $ 392.5 10 %

Earnings Before Tax

SCS Earnings Before Tax (EBT) $ 26.4 $ 23.8 11 %

SCS EBT as a % of SCS Total Revenue 6.1 % 6.1 %

SCS EBT as a % of SCS Operating Revenue 7.5 % 7.4 %



Supply Chain Solutions (SCS) ($ Millions)

Full Year

Revenue 2016 2015 % B/(W)

Automotive $ 548.7 $ 469.2 17 %

Technology & Healthcare 242.5 251.2 (3 )%

CPG & Retail 436.4 431.6 1 %

Industrial & Other 124.6 104.4 19 %

SCS Operating Revenue 1,352.1 1,256.3 8 %

Subcontracted Transportation 224.1 226.9 (1 )%

Fuel 61.7 64.6 (4 )%

SCS Total Revenue $ 1,637.9 $ 1,547.8 6 %

Earnings Before Tax

SCS Earnings Before Tax (EBT) $ 105.6 $ 93.8 13 %

SCS EBT as a % of SCS Total Revenue 6.4 % 6.1 %

SCS EBT as a % of SCS Operating Revenue 7.8 % 7.5 %



Central Support Services (CSS)

Fourth Quarter

($ Millions)

2016 2015 % B/(W)

Allocated CSS Costs $ 49.7 $ 52.8 6 %

Unallocated CSS Costs 10.8 15.6 31 %

Total CSS Costs $ 60.5 $ 68.5 (12 )%



Central Support Services (CSS)

Full Year

($ Millions)

2016 2015 % B/(W)

Allocated CSS Costs $ 196.1 $ 210.1 7 %

Unallocated CSS Costs 40.9 48.5 16 %

Total CSS Costs $ 237.1 $ 258.6 8 %



Balance Sheet ($ Millions)

December 31, 2016 December 31, 2015

Current Assets $ 1,102 $ 1,098

Revenue Earning Equipment, Net 8,148 8,185

Operating Property and Equipment, Net 746 715

Other Assets 907 955

Total Assets $ 10,902 $ 10,953

Current Liabilities $ 953 $ 1,046

Total Debt 5,391 5,503

Other Non-Current Liabilities (including Deferred Income Taxes) 2,506 2,417

Shareholders' Equity 2,052 1,987

Total Liabilities and Shareholders' Equity $ 10,902 $ 10,953



Adjusted Return on Capital History

(1) Adjusted Total Capital represents Adjusted Average Total Capital in billions.

(2) Includes pension settlement charges of $69M, primarily buyouts, which impacted Return on Equity by 360 basis points.

Adj ROC O/(U) COC 1.2 % 0.8 % 0.8 % (2.2 )% (1.3 )% 0.2 % 0.9 % 1.0 % 1.1 % 1.4 % 0.5 % 0.5 %

Return on Equity 15.5 % 14.2 % 11.2 % 4.4 % 8.4 % 11.9 % 14.9 % 14.9 % 11.3 % 16.1 % 12.8 % 12.8 %

Adjusted Total Capital (1) $4.2 $4.8 $4.8 $4.2 $4.0 $4.6 $5.2 $5.6 $6.6 $7.1 $7.6 $7.5

(2)



Financial Indicators Forecast (1)

($ Millions)

Free Cash Flow 341 614 258 (257) (488) (340) (315) (728) 194 250

Debt to Equity 213% 175% 196% 257% 272% 227% 260% 277% 263% 240%

Gross Capital Expenditures

Debt to Equity / Total Obligations to Equity (2)

(1) Free Cash Flow and Gross Capital Expenditures exclude acquisitions. Total Obligations to Equity includes acquisitions. (2) The debt to equity metric was not revised in years prior to 2012 to reflect the change in accounting treatment of certain sale-leaseback transactions as debt. (3) Illustrates impact of accumulated net pension related equity charge on leverage. (4) Represents debt to equity target of 225% to 275% while maintaining solid investment grade credit rating.

Lease Commercial Rental PP&E/Other

Pension Impact (3)



Redeployments – Vehicles coming off-lease or in Rental with

useful life remaining are redeployed in the Ryder fleet (SCS, or

with another Lease customer). Redeployments exclude units

transferred into the Rental product line.

Extensions – Ryder re-prices lease contract and extends maturity

date.

Early terminations – Customer elects to terminate lease prior to

maturity. Depending on the remaining useful life, the vehicle may

be redeployed in the Ryder fleet (Commercial Rental, SCS, other

Lease customer) or sold by Ryder.

Asset Management YTD Update (US Only)

(a) Current year statistics may exclude some units due to a lag in reporting

(b) Excludes early terminations where customer purchases vehicle

(a)(b)



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. 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 Measure Reconciliation & Additional Information

Presented on Slide Titled Page

Operating Revenue Measures:

Operating Revenue Total Revenue Key Financial Statistics 5-6

FMS Operating Revenue, DTS Operating Revenue and SCS Operating Revenue

FMS Total Revenue, DTS Total Revenue and SCS Total Revenue

Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS) and Supply Chain Solutions (SCS)

29-36

Operating Revenue Growth ex-Foreign Exchange Total Revenue Foreign Exchange Impact on Operating Revenue Growth

44

FMS EBT as a % of FMS Operating Revenue, DTS EBT as a % of DTS Operating Revenue and SCS EBT as a % of SCS Operating Revenue

FMS EBT as a % of FMS Total Revenue, DTS EBT as a % of DTS Total Revenue and SCS EBT as a % of SCS Total Revenue

Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS) and Supply Chain Solutions (SCS)

29-36

Comparable Earnings Measures:

Comparable Earnings and Comparable EPS Earnings and EPS from Continuing Operations Earnings and EPS from Continuing Operations Reconciliation

45

Comparable EPS Forecast EPS Forecast from Continuing Operations EPS Forecast – Continuing Operations 46

Comparable Earnings Before Income Tax and Comparable Tax Rate

Earnings Before Income Tax and Tax Rate Earnings and Tax Rate from Continuing Operations Reconciliation

47

Adjusted Return on Capital (ROC) and Adjusted ROC Spread

Not Applicable. However, non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average total debt and average shareholders' equity to adjusted average total capital is provided.

Adjusted Return on Capital Reconciliation 48-49

Cash Flow Measures:

Total Cash Generated and Free Cash Flow Cash Provided by Operating Activities Cash Flow from Continuing Operations 51-52

Debt Measures:

Total Obligations and Total Obligations to Equity Balance Sheet Debt and Debt to Equity Debt to Equity Reconciliation 53



Foreign Exchange Impact on Operating Revenue Growth

Fourth Quarter Full Year 2016

YOY Growth Fx Impact (1) YOY Growth

excl Fx YOY Growth Fx Impact (1) YOY Growth

excl Fx

Total Revenue 3 % (2 )% 5 % 3 % (1 )% 4 %

Operating Revenue 2 % (1 )% 3 % 4 % (1 )% 5 %

FMS Total Revenue — % (2 )% 2 % — % (1 )% 1 %

FMS Operating Revenue (1 )% (2 )% 1 % 3 % (1 )% 4 %

Full Service Lease Revenue 5 % (1 )% 6 % 7 % (1 )% 8 %

Commercial Rental Revenue (14 )% 1 % (13 )% (10 )% 1 % (9 )%

SCS Total Revenue 10 % (2 )% 12 % 6 % (2 )% 8 %

SCS Operating Revenue 9 % (2 )% 11 % 8 % (1 )% 9 %

(1) Foreign exchange impact was calculated by dividing the results for the current and prior year periods by the exchange rates in effect on December 31, 2015, which

was the last day of the prior year period, rather than the actual exchange rates in effect as of December 31, 2016.



Earnings and EPS from Continuing Operations Reconciliation (1)

($ Millions or $ Earnings Per Share)

4Q16 4Q16 4Q15 4Q15

Earnings EPS Earnings EPS

GAAP $ 49.3 $ 0.92 $ 75.9 $ 1.42

Non-operating pension costs 4.7 0.09 2.8 0.05

Tax law change — — (0.3 ) —

Restructuring and other charges (recoveries), net 3.5 0.06 10.4 0.2

Comparable $ 57.5 $ 1.07 $ 88.8 $ 1.66

FY16 FY16 FY15 FY15

Earnings EPS Earnings EPS

GAAP $ 264.6 $ 4.94 $ 306.0 $ 5.73


Pension-related adjustments 4.8 0.09 (0.3 ) (0.01 )

Professional fees — — 2.4 0.04

Tax law change — — (2.1 ) (0.04 )


Comparable $ 290.4 $ 5.42 $ 327.3 $ 6.13

(1) The reconciliation of the EBT and Tax Rate for these items are included on slide 47.




EPS forecast $0.74 - 0.84 $4.78 - 5.08

Non-operating pension costs, net of tax 0.08 0.32

Comparable EPS forecast $0.82 - 0.92 $5.10 - 5.40


EPS $1.05 $4.94

Non-operating pension costs, net of tax 0.07 0.33

Restructuring costs — 0.06

Pension-related adjustment — 0.09

Comparable EPS $1.12 $5.42

EPS from Continuing Operations Reconciliation




EBT and Tax Rate from Continuing Operations Reconciliation


4Q16 4Q16 4Q16 FY16 FY16 FY16

EBT Tax Tax Rate EBT Tax Tax Rate

GAAP $ 69.2 $ 19.9 28.8 % $ 406.4 $ 141.7 34.9 %


Pension-related adjustments — — 7.7 2.8


Comparable (1) $ 82.3 $ 24.8 30.1 % $ 448.8 $ 158.5 35.3 %

4Q15 4Q15 4Q15 FY15 FY15 FY15

EBT Tax Tax Rate EBT Tax Tax Rate

GAAP $ 111.7 $ 35.8 32.0 % $ 469.2 $ 163.2 34.8 %


Pension-related adjustments — — (0.5 ) (0.2 )


Professional fees — — 3.8 1.4

Tax law change — 0.3 — 2.1

Comparable (1) $ 130.8 $ 41.9 32.1 % $ 506.0 $ 178.6 35.3 %

(1) The comparable provision for income taxes is computed using the same methodology as the GAAP provision for income taxes. Income tax effects of non-GAAP

adjustments are calculated based on the statutory tax rates of the jurisdiction to which the non-GAAP adjustments relate.



($ Millions)

Adjusted Return on Capital Reconciliation(1)

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and

average total debt and average shareholders' equity to adjusted average total capital is provided on this slide.

(2) Earnings calculated based on a 12-month rolling period.

(3) Interest expense includes interest on off-balance sheet vehicle obligations.

(4) Income taxes were calculated by excluding taxes related to comparable earnings items and interest expense.

(5) The average is calculated based on the average GAAP balances.

(6) Represents comparable earnings items for those periods.

2006 2007 2008 2009 2010 2011

Net earnings (2) $ 249 $ 254 $ 200 $ 62 $ 118 $ 170

Restructuring and other charges, net and other items - 1 70 30 6 6

Income taxes 144 152 150 54 61 108

Adjusted earnings before income taxes 393 407 420 146 185 284

Adjusted interest expense (3) 149 169 165 150 133 135

Adjusted income taxes (4) (207 ) (220 ) (230 ) (122 ) (124 ) (157 )

Adjusted net earnings [A] $ 332 $ 356 $ 355 $ 174 $ 194 $ 262

Average total debt(5) $ 2,480 $ 2,848 $ 2,882 $ 2,692 $ 2,512 $ 3,079

Average off-balance sheet debt(5) 99 150 171 142 114 78

Average total shareholders' equity(5) 1,610 1,791 1,778 1,396 1,402 1,428

Average adjustments to shareholders' equity (6) (5 ) 1 10 16 2 4

Adjusted average total capital [B] $ 4,184 $ 4,789 $ 4,841 $ 4,245 $ 4,030 $ 4,588

Adjusted return on capital [A]/[B] 7.9 % 7.4 % 7.3 % 4.1 % 4.8 % 5.7 %

Weighted average cost of capital 6.7 % 6.6 % 6.5 % 6.3 % 6.1 % 5.5 %

Adjusted return on capital spread 1.2 % 0.8 % 0.8 % (2.2 )% (1.3 )% 0.2 %



($ Millions)


2012 2013 2014 2015 2016

Net earnings (2) $ 210 $ 238 $ 218 $ 305 $ 262

Restructuring and other charges, net and other items 17 - 115 18 13

Income taxes 91 126 118 164 142

Adjusted earnings before income taxes 317 363 451 486 417

Adjusted interest expense (3) 144 141 145 151 148

Adjusted income taxes (4) (167 ) (177 ) (214 ) (224 ) (198 )

Adjusted net earnings [A] $ 294 $ 327 $ 383 $ 413 $ 366

Average total debt(5) $ 3,778 $ 4,015 $ 4,653 $ 5,177 $ 5,549

Average off-balance sheet debt(5) 2 1 2 1 1

Average total shareholders' equity(5) 1,406 1,594 1,926 1,895 2,052

Average adjustments to shareholders' equity (6) (3 ) (2 ) 8 11 2

Adjusted average total capital [B] $ 5,182 $ 5,608 $ 6,589 $ 7,084 $ 7,605

Adjusted return on capital [A]/[B] 5.7 % 5.8 % 5.8 % 5.8 % 4.8 %

Weighted average cost of capital 4.8 % 4.8 % 4.7 % 4.4 % 4.3 %

Adjusted return on capital spread 0.9 % 1.0 % 1.1 % 1.4 % 0.5 %

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average

total debt and average shareholders' equity to adjusted average total capital is provided on this slide.








($ Millions)


2015 2016

FMS DTS SCS FMS DTS SCS

Net earnings (2) $ 300 $ 28 $ 60 $ 233 $ 39 $ 67

Restructuring and other charges, net and other items (16 ) — — (27 ) — —

Income taxes 162 18 34 138 25 39

Adjusted earnings before income taxes 446 46 94 344 64 106

Adjusted interest expense (3) 154 7 2 151 10 4

Adjusted income taxes (4) (210 ) (21 ) (35 ) (182 ) (28 ) (40 )

Adjusted net earnings [A] $ 390 $ 32 $ 61 $ 313 $ 45 $ 70

Average total debt(5) $ 5,311 $ (73 ) $ (68 ) $ 5,717 $ (86 ) $ (56 )

Average off-balance sheet debt(5) — 296 147 1 340 179

Average total shareholders' equity(5) 1,387 95 324 1,499 109 353

Average adjustments to shareholders' equity (6) (42 ) — — (52 ) — —

Adjusted average total capital [B] $ 6,656 $ 319 $ 403 $ 7,165 $ 363 $ 466

Adjusted return on capital [A]/[B] 5.9 % 10.0 % 15.1 % 4.4 % 12.4 % 14.9 %

(1) Non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average

total debt and average shareholders' equity to adjusted average total capital is provided on this slide.








($ Millions)

Cash Flow Reconciliation

12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

Cash Provided by Operating Activities from Continuing Operations $ 1,248 $ 985 $ 1,028 $ 1,042 $ 1,160

Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 262 216 235 337 413

Collections of Direct Finance Leases(1) 61 65 62 62 72

Other, net(1) — — 3 — —

Total Cash Generated 1,571 1,266 1,328 1,442 1,645

Capital Expenditures (1), (2) (1,230 ) (652 ) (1,070 ) (1,699 ) (2,133 )

Free Cash Flow (3) $ 341 $ 614 $ 258 $ (257 ) $ (488 )

Memo:

Depreciation Expense (4) $ 807 $ 829 $ 808 $ 863 $ 944

Net cash used in financing activities (148 ) (542 ) 78 504 438

Net cash used in investing activities (1,103 ) (449 ) (982 ) (1,657 ) (1,635 )



(3) We refer to the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and acquisitions) from continuing operations

as “free cash flow”. We calculate free cash flow as the sum of net cash provided by operating activities and net cash provided by the sale of revenue earning equipment and

operating property and equipment, collections on direct finance leases and other cash inflows from investing activities, less purchases of property and revenue earning

equipment.

(4) Includes adjustment to reclassify losses from fair value adjustments on our used vehicles to “Gains on Used Vehicles, Net”.



($ Millions)

Cash Flow Reconciliation

12/31/2013 12/31/2014 12/31/2015 12/31/2016

Cash Provided by Operating Activities from Continuing Operations $ 1,252 $ 1,383 $ 1,442 $ 1,601

Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 452 497 427 421

Collections of Direct Finance Leases (1) 71 66 71 77

Other, net (1) 8 (1 ) —

Total Cash Generated 1,783 1,944 1,940 2,099

Capital Expenditures (1), (2) (2,123 ) (2,259 ) (2,668 ) (1,905 )

Free Cash Flow (3) $ (340 ) $ (315 ) $ (728 ) $ 194

Memo:

Depreciation Expense (4) $ 967 $ 1,047 $ 1,122 $ 1,187

Net cash provided by (used in) financing activities 347 312 731 (186 )

Net cash used in investing activities (1,604 ) (1,705 ) (2,161 ) (1,406 )



(3) We refer to the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and acquisitions) from continuing operations

as “free cash flow”. We calculate free cash flow as the sum of net cash provided by operating activities and net cash provided by the sale of revenue earning equipment and

operating property and equipment, collections on direct finance leases and other cash inflows from investing activities, less purchases of property and revenue earning

equipment.

(4) Includes adjustment to reclassify losses from fair value adjustments on our used vehicles to “Gains on Used Vehicles, Net”.



($ Millions)

Debt to Equity Reconciliation(1)

12/31/2008 % to

Equity 12/31/2009 % to

Equity 12/31/2010 % to

Equity 12/31/2011 % to

Equity

Debt $ 2,863 213 % $ 2,498 175 % $ 2,747 196 % $ 3,382 257 %

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 163 119 100 64

Total Obligations (2) $ 3,026 225 % $ 2,617 183 % $ 2,847 230 % $ 3,446 261 %

(1) The debt to equity metric was not revised in years prior to 2012 to reflect the change in accounting treatment of certain sale-leaseback transactions as debt.

(2) For years beginning in 2012, sale-leaseback transactions that were previously accounted for as off-balance sheet are now included in GAAP balance sheet

debt. The Company does not reconcile total obligations to equity for these years as this metric is the same as the debt to equity metric.

Note: Amounts may not recalculate due to rounding.