THE HERTZ CORPORATION (A

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2004: Hertz RAC 300,000 cars US 160,000 cars INTERNATIONAL 460,000 50% US cars Ford 30% INT cars Ford 85% US + 74% INT = program cars 15% US + 26% INT = risk cars US RAC Fleet 1.77million cars (2000- 1.83m) Total US revenues 17billion (19b- 2000) (12% difference 2000-2004) 55% US market- on airport 45% US market- of airport US: 5.7billion of revenue (33%) business customers 6.4billion of revenue (37%) replacement and leisure 4.7billion of revenue (30%) US overall share market: Enterprice Rent A Car 31% Hertz 22% Avis 11% Alamo National Corp 11% Hertz US RAC Revenue: 3.77billion Adjusted EBITDA: 368million Leisure 54% (revenue), Business 39%, replacement 7% 9.4billion US RAC market: 5% growth per year Hertz 30% share at 180 airports Avis 20% share 80% Hertz’s US RAC revenue on airport US off airport market : 7.4billion Hertz: 21% domestic revenue from off airport transactions

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3b equity !! END!! Hertz RAC Revenue 5.9billion revenue 208million Adjusted EBITDA Sales of HERTZ: 49% leisure.5%) +800m senior subordinated notes(10.75%) Sponsor’s equity: 2. North America 392million gross EBITDA(90%*436million) Term loan: 1.2% from 10 largest customers) Gross EBITDA 436million Adjusted EBITDA 130million 1.8= 8 billion off airport/ 2billion on airport Market share: Europcar 18% Avis 14% Hertz 12% Hertz’s international RAC: 1. 41%business.85b Senior+ subordinated notes:2.08billion revenue(90%*1.4b(exhibit 5) 2 . price/earnings ratios. Final bid 5.THE HERTZ CORPORATION (A) European and inter RAC market Revenue: 12billion (10billion from Europe) 10* 0.2% annually Revenue/Gross EBITDA FOR HERC: grow same rate as HERC’s market! Corporate EBITDA. 10% replacement Equity financing expensive North American Rental Industry: 25billion revenue 2004 HERC’s revenues: 1.2billion 2004 (of which 9.2billion).25b senior unsecured(9.

THE HERTZ CORPORATION (A) CDR(2005): investments of 6.4billion 2005.5billion ON AIRPORT OPERATING EXPENCES 2000-2005: 3.2% growth Increase: 41% labor/transaction 65% administrative costs 30% other costs Adjusted EBITDA margins: 32%-.(-200%) Strategy save 100million +58m European expences 3x than US Consolidation: 33m per year savings US RAC Fleet costs 25% more depreciation rate than Avis and Dollar Trinity Nonfleet capital expenditures 1.(-7%) Potential savings for the investment case(per year):75million(5% over 5years) OFF AIRPORT STRATEGY Airport locations 1404 from 836 (2000-2005) replacement segment Adjusted EBITDA margins 55%.152million 3 4billion .

5%) +800m senior subordinated notes(10.25b senior unsecured(9.75%) Sponsor’s equity: 2.85b Senior+ subordinated notes:2.5 years maturity Term loan: 1.4b for HERC fleet(draw down 400m).THE HERTZ CORPORATION (A) Capital savings 57m in projections ROIC: 159m savings Corporate EBITDA= HERC’s Gross EBITDA + RAC’s Adjusted EBITDAcorporate expenses Adjusted EBITDA(RAC)= Gross EBITDA-depreciation/financing charges Fleet Debt:5.5b from Hertz+ 200m ford+ 100m cash ABL: 1.3b(ABS) + 2b Fleet Equity: 1.3b equity 4 .

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