Hertz Investor Presentation Deck
DISCLAIMERS (CONT'D)
Hertz Global Overview
Hertz Global Holdings, Inc. is the top-level holding company of The Hertz Corporation. The Companies operate their vehicle rental business globally, primarily through the Hertz, Dollar and Thrifty brands,
and operates its fleet leasing and management business through its Donlen subsidiary.
Hertz Global has three reportable segments as follows:
U.S. RAC Rental of vehicles, as well as sales of value-added services, in the United States;
International RAC - Rental and leasing of vehicles, as well as sales of value-added services, interationally; and
All Other Operations - Primarily comprised of our Donlen business, which provides vehicle leasing and fleet management solutions in the United States and Canada.
In addition to the above reportable segments, Hertz Global has corporate operations.
Amounts shown in this presentation, unless otherwise indicated, are for The Hertz Corporation.
Strictly Confidential
Subject to CA/NDA
Non-GAAP Measures
Adjusted Corporate EBITDA, Net Non-vehicle Debt, and Net First Lien Non-vehicle Debt are not a recognized measurement under generally accepted accounting principles in the United States ("GAAP").
When evaluating the Company's operating performance, investors should not consider Adjusted Corporate EBITDA in isolation of, or as a substitute for, measures of the Company's financial performance
as determined in accordance with GAAP, such as net income (loss) or income (loss) before income taxes. Management uses Adjusted Corporate EBITDA as an operating performance metric for internal
monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating reviews, as well as to facilitate analysis of investment decisions, profitability
and performance trends. Further, Adjusted Corporate EBITDA enables management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and
leasing vehicles. It also allows management to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the
determination of certain executive compensation. Adjusted Corporate EBITDA is calculated as net income or loss attributable to Hertz as adjusted to eliminate the impact of GAAP income tax, non-vehicle
depreciation and amortization, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments
and write-downs, information technology and finance transformation costs and certain other miscellaneous items. Adjusted Corporate EBITDA is a non-GAAP measure.
Net Non-vehicle Debt is calculated as non-vehicle debt as reported on our balance sheet, excluding the impact of unamortized debt issue costs, discounts and premiums associated with non-vehicle debt,
less cash and cash equivalents. Non-vehicle debt consists of our Senior Term Loan, Senior RCF, Letter of Credit Facility, Existing Senior Notes, Senior Secured Second Priority Notes, Promissory Notes
and certain other non-vehicle indebtedness of our domestic and foreign subsidiaries. Net First Lien Non-vehicle Debt consists of debt secured by a first priority lien in the collateral. Net Non-vehicle Debt
and Net First Lien Non-Vehicle Debt is important to management and investors as it helps measure our net corporate leverage. Net Non-vehicle Debt and Net First Lien Non-vehicle Debt also assists in the
evaluation of our ability to service our non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle
debt facilities.
The following information constitutes forward-looking statements. Actual results of operations may differ materially from the information contained in these forward-looking statements based on a number
of factors, including, without limitation, those set forth under "Forward-Looking Statements."
Hertz dollar. Thrifty DONLEN
CAR RENTAL
CAR RENTAL
A Hertz Company
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