Dollar Thrifty Automotive Group Inc
Dollar Thrifty Automotive — Merger or Acquisition (May 2011)
14 slides from Dollar Thrifty Automotive's merger presentation, May 9, 2011
Slide 1: Investor Presentation
Filed by Hertz Global Holdings, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14d-2(b) of the Securities Exchange Act of 1934 Subject Company: Dollar Thrifty Automotive Group, Inc. Exchange Act File No. 001-13647 Hertz Global Holdings, Inc. (NYSE: HTZ)
Slide 2: Additional Information
Additional Information Hertz Global Holdings, Inc. (“Hertz”) has filed a Registration Statement on Form S-4 and will file a Tender Offer Statement on Schedule TO (collectively, with the accompanying Letter of Transmittal and related documents, the “Exchange Offer Documents”) with the Securities and
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements contained herein constitute forward-looking statements. These statements are based on the current expectations and beliefs of Hertz and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially f
Slide 4: Summary Deal Terms & Structure
Summary Deal Terms & Structure $72.00 per share purchase price (based on 5/6 Hertz stock price) PURCHASE Equity Value of $2.2 billion PRICE Corporate Enterprise Value of $1.9 billion 26% Premium to 90-Day Avg. Price 18% Premium to 60-Day Avg. Price LTM EBITDA multiple of 7.6x Exchange Offer DEAL Con
Slide 5: A Superior Proposal for DTG Shareholders
A Superior Proposal for DTG Shareholders Attractive offer to DTG shareholders Hertz is likely to obtain FTC clearance Hertz is offering certain value on an accelerated timetable Exchange offer ensures fastest path to closing Hertz offer is not subject to any financing condition Avis has been working
Slide 6: Strategic Benefits and Synergies
Strategic Benefits and Synergies Provides Hertz with multiple strategic options to address corporate and leisure business and compete with multi-brand peers in all three tiers of the market STRATEGIC Provides instant scale in mid-tier value segment with BENEFITS established brand and airport infrast
Slide 7: Highly Complementary Brands
Highly Complementary Brands Premier global brand Well positioned “value” player in the U.S. market A leading car rental provider in U.S. and Europe Significant footprint and infrastructure #1 worldwide general used car rental 12% - 13% of all airport revenues brand Strong share of value rentals at c
Slide 8: Overview of Combined Company
Overview of Combined Company 2010 PRO FORMA HERTZ DOLLAR THRIFTY COMBINED COMPANY REVENUE $7.6bn $1.5bn $9.1bn GROSS $2.8bn $0.6bn $3.4bn EBITDA (37%) (41%) (38%) (% MARGIN) CORPORATE $1.1bn $0.3bn $1.4bn EBITDA (15%) (17%) (15%) (% MARGIN) 8
Slide 9: A Multi-Brand Rental Car Leader
A Multi-Brand Rental Car Leader Hertz will be able to enhance its portfolio with a “mid-tier value” brand Premium global brand Middle market airport brands Next generation car rental in competing with Avis, National competing with Budget, urban, university and Enterprise, Alamo corporate markets; si
Slide 10: Financial Benefits
Financial Benefits EPS accretive to Hertz shareholders in first full year following transaction close Significant potential cost synergies identified Committed to maintaining a strong, flexible balance sheet Anticipated financing to come from cash on hand and new borrowings 10
Slide 11: Factors Driving Higher Offer Price
Factors Driving Higher Offer Price Overall industry outlook has improved Valuation multiples (2011 EBITDA) for Hertz and Avis on average have increased approximately 20% since September 30, 2010 Residual values have also improved and appear to be sustainable in the near-term As a result, Dollar Thri
Slide 12: August 2010 GUPPI Analysis
August 2010 GUPPI Analysis Last August, Hertz provided an antitrust analysis comparing potential Hertz and Avis acquisitions of DTG using, among other things, the Gross Upward Price Pressure Index (“GUPPI”) economic test. GUPPI: Economic formula used to evaluate the “upward pricing pressure” from a
Slide 13: August 2010 GUPPI Analysis
August 2010 GUPPI Analysis For Hertz - Dollar Thrifty: The combined entity generated GUPPI scores of under 5.0% except at Las Vegas (5.01%) Indicates low risk of unilateral price increases from Hertz-Dollar Thrifty transaction For Avis Budget - Dollar Thrifty: For 99% of Dollar Thrifty revenue earne
Slide 14: Key Next Steps
Key Next Steps Complete Advantage divestiture process Finalize consent decree with FTC Commence discussions with Dollar Thrifty to reach a consensual deal Secure support of Dollar Thrifty shareholders in favor of a transaction with Hertz 14
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