Free Cash Flow (1) : Impact From Business Model Changes ($ Millions) • • • In the early 2000’s, changes to the business model resulted in a significant improvement in free cash flow generation Free cash flow is expected to be positive over the business cycle Annual variability exists, however, due to changes in fleet replacement and growth in any given year Cumulative Free Cash Flow 2001-2010 $614 $367 $357 $380 $289 $2,090 M $341 $258 $131 ($208)(2) ($439) 2001 (1) (2) 2002 2003 2004 2005 2006 2007 2008 2009 2010 1991 - 2004 cash flows presented on an as reported basis and not adjusted for operations discontinued in 2009. Includes $176 million payment to the IRS in 2005 related to full resolution of 1998 - 2000 tax period matters. Proprietary and Confidential 1 Free Cash Flow : Recent Impact From Growth Capital ► Grew lease fleet organically beginning in 2012 ► Significantly higher purchase cost per vehicle (from 2007 and 2010 engine technology changes) reflected in growth capital  Impact expected to abate as price differential normalizes ► Higher number of vehicle replacements in 2011-2013 resulted in higher growth capital ► Free cash flow in future years will reflect the recovery of higher capital spending over average six year lease term ► Additionally, operating cash flow will increase going forward reflecting the recovery of higher capital spending over life of the lease ($ Millions) Free Cash Flow Growth Capital $907 $723 $566 $733 ($202) ($257) ($384) 2011 Proprietary and Confidential 2012 ($386) 2013 2014 2