3Q05FINAL

Third Quarter 2005
Earnings Conference Call

October 26, 2005

Safe Harbor

Certain statements and information included in this presentation are quot;forward-looking statementsquot; under
the Federal Private Securities Litigation Reform Act of 1995. 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, our ability
to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to
customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key
customers in the Supply Chain Solutions (SCS) business segment, unexpected reserves or write-offs due
to the deterioration of the credit worthiness or bankruptcy of certain customers in our SCS business
segment, the possibility that changes in customers’ business environments will limit their ability to commit
to long-term vehicle leases, changes in market conditions affecting the commercial rental market or the
sale of used vehicles, increased competition from vehicle manufacturers and large service providers,
higher borrowing costs and possible decreases in available funding sources caused by adverse changes
in debt ratings, changes in accounting assumptions, adequacy of accounting accruals, changes in
general economic conditions, unexpected reserves or losses due to the effects of Hurricanes Katrina and
Rita on our operations and the economy, increases in fuel prices, availability of qualified drivers, our
ability to manage our cost structure and changes in government regulations including regulations
regarding vehicle emissions. 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 risks 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.

2

Contents

► Third Quarter Results Overview
► Asset Management Update
► Earnings Outlook
►Q & A

3

3rd Quarter Results Overview

► Earnings per diluted share were $0.98, up 20% from a comparable
$0.82 in 3Q04
– 3Q04 included $0.01 gain on sale of a portion of former headquarters
complex
► Fleet Management Solutions (FMS) total revenue up 10% and
operating revenue up 2% vs. prior year
– Full service lease revenue increased 1% due to foreign exchange impact
– Maintenance revenue up 6% due to growth initiatives

– Commercial rental revenue grew 4% due to higher pricing
► FMS net before tax earnings (NBT) up 20%

– FMS NBT percent of operating revenue up 210 basis points to 14.1%
► FMS earnings positively impacted by improved rental results, strong
used vehicle sales performance, improved fuel margins and lower
overheads, partially offset by hurricane-related charges

4

3rd Quarter Results Overview (cont’d)

► Supply Chain Solutions (SCS) total revenue up 28% (and operating
revenue up 9%) vs. prior year, reflecting increased subcontracted
transportation, new and expanded business, and higher fuel costs
passed through to customers

► SCS earnings increased vs. prior year reflecting new and expanded
business as well as lower overhead spending, partially offset by
lower volumes in certain automotive accounts and impact of Brazil
operations

► Dedicated Contract Carriage (DCC) total revenue up 10% (and
operating revenue up 10%) vs. prior year; increase due to new and
expanded business as well as higher fuel costs passed through to
customers

► DCC earnings up vs. prior year due to revenue growth from new and
expanded business as well as lower safety and other operating
costs

5

Earnings Per Share

Third Quarter

2005 2004

Earnings Per Share $ 0.98 $ 0.83
(1)
Earnings Per Share Excluding Headquarters Complex Sale $ 0.98 $ 0.82

Memo:
EPS Impact of Headquarters Complex Sale $ - $ 0.01
Average Shares (Millions) - Diluted 64.5 65.5
Tax Rate 40.0% 37.9%
(1) (2)
7.8% 7.5%
Return on Capital

(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
(2)
Calculated based on a 12-month rolling period

6

Earnings Per Share

Year-to-Date

2005 2004

Earnings Per Share $ 2.60 $ 2.33

Earnings Per Share Excluding Headquarters Complex Sale $ 2.48 $ 2.09
(1)
and Tax Change

Memo:
EPS Impact of Headquarters Complex Sale $ - $ 0.23
EPS Impact of Ohio Tax Change $ 0.12 $ -
EPS Impact of Restructuring and Other (Charges)/Recoveries, Net $ 0.01 $ (0.03)
Average Shares (Millions) - Diluted 64.8 65.7
Tax Rate 36.1% 37.6%
(1) (2)
Return on Capital 7.8% 7.5%

(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
(2)
Calculated based on a 12-month rolling period

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

7

Business Segment

Third Quarter
($ Millions)
2005 2004 % B/(W)
Revenue:
Fleet Managem ent Solutions $ 1,010.8 $ 918.7 10%
Supply Chain Solutions 433.4 338.5 28%
Dedicated Contract Carriage 139.0 125.9 10%
Elim inations (92.6) (77.2) (20)%
Total Revenue $ 1,490.6 $ 1,305.9 14%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 102.6 $ 85.8 20%
Supply Chain Solutions 10.6 9.8 9%
Elim inations (8.2) (8.0) (4)%
114.2 95.1 20%
Central Support Services (Unallocated Share) (9.1) (9.0) (2)%
(1)
Earnings Before Restructuring and Incom e Taxes 105.1 86.1 22%
(2)
Restructuring and Other Recoveries, Net 0.4 1.3 (66)%
Earnings Before Incom e Taxes 105.5 87.4 21%
Provision for Incom e Taxes 42.2 33.1 (27)%
Net Earnings $ 63.3 $ 54.3 17%

(1)
Net Earnings Excluding Headquarters Com plex Sale $ 63.3 $ 53.5 18%

(1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
(2)
Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $0.4 in 2005 and CSS - $1.3 in 2004

8

Business Segment
($ Millions)
Year-to-Date
2005 2004 % B/(W)
Revenue:
Fleet Managem ent Solutions $ 2,905.0 $ 2,652.3 10%
Supply Chain Solutions 1,155.1 986.6 17%
Elim inations (264.8) (229.5) (15)%
Total Revenue $ 4,196.1 $ 3,787.1 11%
Segm ent Net Before Tax Earnings:
Fleet Managem ent Solutions $ 262.4 $ 223.2 18%
Supply Chain Solutions 25.4 25.7 (1)%
Elim inations (23.3) (23.4) 1%
289.3 248.1 17%
Central Support Services (Unallocated Share) (26.7) (23.3) (15)%
(1)
Earnings Before Restructuring and Incom e Taxes 262.6 224.8 17%
(2)
Restructuring and Other Recoveries, Net 0.6 20.5 (97)%
Earnings Before Incom e Taxes 263.2 245.3 7%
Provision for Incom e Taxes 95.1 92.3 (3)%
Net Earnings $ 168.1 $ 153.0 10%

(1)
Net Earnings Excluding Headquarters Com plex Sale and Tax Change $ 160.5 $ 137.6 17%

(1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
(2)
Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $0.5 and SCS - $0.1 in
2005 and FMS - $(2.7), SCS - $(0.9), DCC - $(0.3) and CSS - $24.4 in 2004

9

Capital Expenditures
($ Millions)
Year-to-Date

2005
2005 2004 O/(U) 2004

Full Service Lease $ 843.3 $ 578.7 $ 264.6

Commercial Rental 245.4 225.8 19.6

Operating Property and Equipment 58.6 38.9 19.7

Gross Capital Expenditures 1,147.3 843.4 303.9

Less: Proceeds from Sales of Revenue Earning Equipment 250.8 216.7 34.1

Less: Proceeds from Sales of Operating Property and Equipment 2.7 46.5 (43.8)

Net Capital Expenditures $ 893.8 $ 580.2 $ 313.6

Memo: Acquisitions $ 15.1 $ 148.7 $ (133.6)

10

Debt to Equity Ratio
($ Millions)
300%
(1)
Total Obligations to Equity
250%
200%
150%
Balance Sheet Debt to Equity
100%
50%
0%
12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 9/30/05 Long
Term
(2)
Target

9/30/05 12/31/04 9/30/04
Balance Sheet Debt $ 2,218.3 $ 1,783.2 $ 1,720.0
137% 118% 119%
Percent To Equity

Total Obligations (1) $ 2,363.7 $ 1,944.3 $ 1,921.7
(1)
146% 129% 133%
Percent To Equity

Total Equity $ 1,616.9 $ 1,510.2 $ 1,441.2

Note: Includes impact of accumulated net pension related equity charge of $189 million as of 9/30/05 and 12/31/04, and $187 million as of 9/30/04.

(1) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures.
(2) Represents long term total obligations to equity target while maintaining a strong investment grade rating.

Strong balance sheet to support profitable growth
11

Free Cash Flow
($ Millions)
Year-to-Date
2005 2004
(1)
$ 168.1 $ 153.0
Net Earnings
556.3 528.8
Depreciation
(38.1) (25.8)
Gains on Sale
6.1 (20.6)
Amortization and Other Non-Cash Charges/(Gains), Net
(223.3) 21.1
Changes in Working Capital and Deferred Taxes
469.1 656.5
Cash Provided by Operating Activities
(2)
(1,105.6) (769.7)
Capital Expenditures
(15.1) (148.7)
Acquisitions
250.8 216.7
Proceeds from Sales of Revenue Earning Equipment
2.7 46.5
Proceeds from Sales of Operating Property and Equipment
- 114.0
Proceeds from Sale and Leaseback of Assets
49.7 46.6
Collections of Direct Finance Leases
- (0.1)
Other Investing, Net
(3)
$ (348.4) $ 161.8
Free Cash Flow
(1) Includes non-cash restructuring and other recoveries, net
(2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment
(3) Non-GAAP financial measure; refer to Appendix – Non-GAAP Financial Measures

12

Contents

►Q & A

13

Asset Management Update

► The overall number of vehicles sold in the third quarter was 5,156; up
20% compared with prior year
– Used tractor retail sales proceeds up 7% per unit vs. prior year period
– Used truck retail sales proceeds down 2% per unit vs. prior year period

► Vehicles not yet earning revenue are 2,301; up 603 from prior year
due to increased sales activity vs. prior year

► Vehicles no longer earning (NLE) revenue are 7,229; up 1,760 or 32%
over prior year driven primarily by a larger used vehicle inventory
– NLE vehicles down 246 units or 3% vs. the prior quarter
– 4,844 of these units are held for sale at the used truck centers

Note: U.S. only

14

Contents

►Q & A

15

Earnings Outlook

► No anticipated repatriation of foreign earnings under the
American Jobs Creation Act of 2004

► 2005 earnings forecast excludes any impact of:

– Recently announced $175M share repurchase program

– Expensing of stock options and employee stock purchases (FAS123R)

• Anticipate adoption on 1/1/06

• Estimated full year expense of $0.12 in 2005 and $0.08 - $0.10 in 2006
(excluding restricted stock)

• Total stock-based compensation including restricted stock is estimated to
be $0.15 in 2005 and $0.12 - $0.14 in 2006

– Cumulative charge for conditional asset retirement obligations related
primarily to underground fuel storage tanks (FIN47)

• Estimated charge of $0.04 - $0.06 upon adoption in fourth quarter 2005

16

Earnings Outlook
(Earnings Per Share)

► Raising our full year 2005 earnings forecast range to $3.49-$3.54 per
share

– Forecast includes the previously reported second quarter $0.12 state tax
benefit

► Current forecast for EPS is as follows:

4th Quarter Full Year
$0.89 - $ 0.94 $3.49 - $ 3.54
2005 EPS Forecast

17

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Financial Indicators Forecast

FMS Revenue History

Asset Management

Non-GAAP Financial Measures & Reconciliations

19

Fleet Management Solutions (FMS)
($ Millions)
Third Quarter
2005 2004 % B/(W)
$ 447.4 $ 444.0 1%
Full Service Lease
34.0 34.5 (2)%
Contract Maintenance
48.3 43.1 12%
Contract-related Maintenance
183.4 176.7 4%
Commercial Rental
15.5 15.3 1%
Other
(a)
728.6 713.6 2%
Operating Revenue
282.2 205.1 38%
Fuel Revenue
(b)
$ 1,010.8 $ 918.7 10%
Total Revenue

$ 102.6 $ 85.8 20%
Segment Net Before Tax Earnings (NBT)
10.1% 9.3%
Segment NBT as % of Total Revenue
(a)
14.1% 12.0%
Segment NBT as % of Operating Revenue

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS
business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market
fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the
Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be
positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer
pricing for fuel services is established based on market fuel costs.
(b)
Refer to Appendix - FMS Revenue History for additional historical detail.
20

Fleet Management Solutions (FMS)
($ Millions)
Year-to-Date
2005 2004 % B/(W)
$ 1,334.6 $ 1,319.1 1%
Full Service Lease
101.9 102.6 (1)%
Contract Maintenance
146.2 131.5 11%
Contract-related Maintenance
511.0 475.0 8%
Commercial Rental
47.6 53.1 (10)%
Other
(a)
2,141.3 2,081.3 3%
Operating Revenue
763.7 571.0 34%
Fuel Revenue
(b)
$ 2,905.0 $ 2,652.3 10%
Total Revenue

$ 262.4 $ 223.2 18%
9.0% 8.4%
(a)
12.3% 10.7%

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS
business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market
fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the
Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be
positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer
pricing for fuel services is established based on market fuel costs.
(b)
Refer to Appendix - FMS Revenue History for additional historical detail.
21

Supply Chain Solutions (SCS)
($ Millions)
Third Quarter
2005 2004 % B/(W)
U.S. Operating Revenue
$ 114.5 $ 106.5 8%
Automotive, Aerospace & Industrial
63.0 58.0 9%
High Tech & Consumer Industries
6.3 5.3 18%
Transportation Management
183.8 169.8 8%
70.5 63.8 10%
International Operating Revenue
(a)
254.3 233.6 9%
Operating Revenue
179.1 104.9 71%
Subcontracted Transportation
$ 433.4 $ 338.5 28%
Total Revenue

$ 10.6 $ 9.8 9%

2.4% 2.9%
(a)
4.2% 4.2%

$ 23.8 $ 15.9 (50)%
Memo: Fuel Costs

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment
and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating revenue as
Subcontracted Transportation is largely a pass through to customers. The Company realizes minimal changes in profitability as a result of
fluctuations in Subcontracted Transportation.

22

Supply Chain Solutions (SCS)
($ Millions)
Year-to-Date
2005 2004 % B/(W)
$ 332.9 $ 315.3 6%
Automotive, Aerospace & Industrial
182.1 169.4 8%
High Tech & Consumer Industries
18.6 14.5 28%
Transportation Management
533.6 499.2 7%
208.0 193.6 7%
International Operating Revenue
(a)
741.6 692.8 7%
Operating Revenue
413.5 293.8 41%
$ 1,155.1 $ 986.6 17%
Total Revenue

$ 25.4 $ 25.7 (1)%
2.2% 2.6%
(a)
3.4% 3.7%

$ 66.5 $ 46.5 (43)%
Memo: Fuel Costs
(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment

23

Dedicated Contract Carriage (DCC)
($ Millions)
Third Quarter

2005 2004 % B/(W)

(a)
$ 134.6 $ 122.7 10%
Operating Revenue
4.4 3.2 40%
$ 139.0 $ 125.9 10%
Total Revenue

$ 9.2 $ 7.5 22%
6.6% 6.0%
(a)
6.8% 6.1%

$ 24.9 $ 18.2 (37)%
Memo: Fuel Costs

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment
24

Dedicated Contract Carriage (DCC)
($ Millions)
Year-to-Date

2005 2004 % B/(W)

(a)
$ 389.2 $ 371.0 5%
Operating Revenue
11.6 6.7 74%
$ 400.8 $ 377.7 6%
Total Revenue

$ 24.8 $ 22.6 10%
6.2% 6.0%
(a)
6.4% 6.1%

$ 67.7 $ 52.3 (29)%
Memo: Fuel Costs

(a)
The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment
25

Central Support Services (CSS)
($ Millions)
Third Quarter

2005 2004 % B/(W)

$ 42.0 $ 45.8 8%
Allocated CSS Costs
9.1 9.0 (2)%
Unallocated CSS Costs
$ 51.1 $ 54.8 7%
Total CSS Costs

26

Central Support Services (CSS)
($ Millions)
Year-to-Date

2005 2004 % B/(W)

$ 127.2 $ 132.7 4%
Allocated CSS Costs
26.7 23.3 (15)%
Unallocated CSS Costs
$ 153.9 $ 156.0 1%
Total CSS Costs

27

Balance Sheet
($ Millions)

September 30, December 31,
2005 2004

Cash and Cash Equivalents $ 140.5 $ 101.0
Other Current Assets 1,201.6 1,126.7
Revenue Earning Equipment, Net 3,633.3 3,331.7
Operating Property and Equipment, Net 485.5 479.6
Other Assets 583.1 598.9
Total Assets $ 6,044.0 $ 5,637.9

Current Liabilities $ 1,278.3 $ 1,454.8
Long-Term Debt 1,888.6 1,393.7
Other Non-Current Liabilities 1,260.2 1,279.2
Shareholders' Equity 1,616.9 1,510.2
Total Liabilities and Shareholders' Equity $ 6,044.0 $ 5,637.9

28

Financial Indicators Forecast (1)
Capital Expenditures ($ Millions)
Free Cash Flow (2) ($ Millions) $1,435
1500
500
PPE
366 $1,289
Other
$1,165
269
Rental
156
126 1000 Lease
$725
0 $657
$600

500

(270)
(345)
(500) 0
Actual Actual Actual Actual Actual Forecast Actual Actual Actual Actual Actual Forecast
2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005

Debt to Equity Ratio
300%
275%

250% 234%

201%
200% (2)
Total Obligations to Equity
146% 143% Balance Sheet Debt to Equity
150% 129%

100%

50%

0%
2000 2001 2002 2003 2004 2005 Plan

Free Cash Flow and Debt to Equity include acquisitions. Capital Expenditures exclude acquisitions. Debt to Equity excludes impact of share repurchases.
(1)

Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(2)

29

FMS Revenue History
($ Millions)

Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year
2003 2003 2003 2003 2003 2004 2004 2004 2004 2004

Full Service Lease $ 414.7 $ 418.9 $ 417.4 $ 418.0 $ 1,669.0 $ 429.8 $ 445.3 $ 444.0 $ 447.6 $ 1,766.7

Contract Maintenance 42.3 33.3 33.3 33.6 142.5 33.3 34.8 34.5 33.7 136.3

Contract-related
Maintenance 41.5 39.7 40.7 41.0 162.9 44.5 44.0 43.1 46.5 178.1

Commercial Rental 118.5 134.7 144.6 142.9 540.7 135.9 162.4 176.7 174.8 649.8

Other 18.0 19.1 19.3 19.5 75.9 19.6 18.1 15.3 16.7 69.7

Operating Revenue 635.0 645.7 655.3 655.0 2,591.0 663.1 704.6 713.6 719.3 2,800.6

Fuel Revenue 176.0 154.4 154.0 156.3 640.7 178.4 187.5 205.1 231.2 802.2

Total Revenue $ 811.0 $ 800.1 $ 809.3 $ 811.3 $ 3,231.7 $ 841.5 $ 892.1 $ 918.7 $ 950.5 $ 3,602.8

Note: FMS revenue presentation revised to: (1) report both Contract Maintenance and Non-contractual Maintenance individually,
and (2) to report trailer pool revenue previously included in the Other product line in Full Service Lease and Commercial Rental.

30

(a)
Asset Management Update

YTD-00 YTD-01 YTD-02 YTD-03 YTD-04 YTD-05

6,000
5,409
5,370
4,914
4,412
5,000
3,810
3,875
3,800
3,950
3,890
4,000 3,623
3,478 2,863
3,184 3,349
3,071
2,697
2,180
3,000
2,026
1,671
2,000
1,172 1,071
837 1,075
723
1,000

0
(b)
Redeployments Extensions Early Terminations Early Replacements

(a) U.S. only
(b) Excludes early terminations where customer purchases vehicle.

31

Non-Revenue Earning Equipment (a)
Units No Longer Earning Revenue - quot;NLEquot;
Units Not Yet Earning Revenue - quot;NYEquot;

11,000 9,898
9,506

9,000
7,925
7,823
7,623 7,475
7,264 7,229
7,180 7,040 7,061 7,000
6,652
7,000 6,368
6,066
5,469

5,000
5,215 3,485 4,274 4,187 4,844
Units held for sale (b)

3,000 2,306 2,301
1,937
1,698
1,704
1,384 1,666
1,253 1,079
1,174 1,091 1,015 924
1,068
855 548
1,000

-1,000

Dec 2001 Mar 2002 June 2002 Sept 2002 Dec 2002 Mar 2003 Jun 2003 Sept 2003 Dec 2003 Mar 2004 Jun 2004 Sept 2004 Dec 2004 Mar 2005 June 2005 Sept 2005
Total Total Total Total Total Total Total
Total Total Total Total Total Total Total Total Total
11,072 10,361 8,691 8,433 8,131 7,985 7,200
8,838 8,079 8,648 7,770 7,167 8,305 10,231 9,141 9,530

(a) U.S. only
(b) Excludes units for which customer deposits have been received.
32

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 and an
explanation why management believes that presentation of the non-GAAP financial measure provides useful
information to investors. 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:

Reconciliation & Additional Information
Non-GAAP Financial Measure Comparable GAAP Measure Presented on Slide Titled

EPS / Net Earnings Excluding Headquarters Complex EPS / Net Earnings Appendix - Net Earnings and EPS
Sale and Tax Change Reconciliation

Earnings Before Restructuring and Income Taxes Net Earnings Business Segment

Return on Capital Return on Capital Appendix - Return on Capital Reconciliation

Free Cash Flow Cash Provided by Operating Activities Appendix - Free Cash Flow Reconciliation

Total Obligations Balance Sheet Debt Appendix - Debt to Equity Reconciliation

Total Obligations to Equity Debt to Equity Appendix - Debt to Equity Reconciliation

FMS Operating Revenue and Segment NBT as % of FMS Total Revenue and Segment NBT as % of Total Fleet Management Solutions
Operating Revenue Revenue

SCS Operating Revenue and Segment NBT as % of SCS Gross Revenue and Segment NBT as % of Total Supply Chain Solutions

DCC Operating Revenue and Segment NBT as % of DCC Gross Revenue and Segment NBT as % of Total Dedicated Contract Carriage

Tax Rate Excluding State Tax Benefit Tax Rate Appendix - Tax Rate Reconciliation

33

Net Earnings and EPS Reconciliation
($ Millions or
$ Earnings Per Share)

YTD05 - YTD05 -
Net Earnings EPS

Net Earnings $ 168.1 $ 2.60

Less: Tax Change 7.6 0.12

Net Earnings Excluding Tax Change $ 160.5 $ 2.48

3Q04 - 3Q04 - YTD04 - YTD04 -
Net Earnings EPS Net Earnings EPS

Net Earnings $ 54.3 $ 0.83 $ 153.0 $ 2.33

Less: Gain on Sale of Headquarters, After Tax 0.7 0.01 15.4 0.23

Net Earnings Excluding Headquarters Complex Sale $ 53.5 $ 0.82 $ 137.6 $ 2.09

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

34

Tax Rate Reconciliation

YTD05 -
Tax Rate
Tax Rate Excluding Net Tax Benefit 39.0%
Effect of Net Ohio Tax Change on Tax Rate (2.9)%
Tax Rate as Reported 36.1%

35

Return on Capital Reconciliation
($ Millions)
9/30/05 9/30/04
(1)
(A) Net Earnings $ 230.8 $ 192.4
Restructuring Charges/(Recoveries), Net 2.2 (17.0)
Income Taxes 118.3 114.7
Earnings Before Net Restructuring and Income Taxes 351.3 290.1
Interest Expense 113.8 101.2
Implied Interest Expense from Off-Balance Sheet Debt 7.0 9.2
Adjusted Earnings Before Income Taxes 472.1 400.5
Adjusted Income Taxes (182.7) (149.2)
(1)
Adjusted Net Earnings (Non-GAAP)
(B) $ 289.4 $ 251.2

Average Total Debt $ 2,035.3 $ 1,822.6
Average Shareholders' Equity 1,530.6 1,365.3
(C) Total Capital (GAAP) 3,565.9 3,187.9
Average Off-Balance Sheet Debt 160.4 149.3
(2) (3)
Adjusted Total Capital (Non-GAAP)
(D) $ 3,726.3 $ 3,337.2

(A/C) Return on Capital (GAAP) 6.5% 6.0%
(3) (4)
(B/D) Return on Capital (Non-GAAP) 7.8% 7.5%

(1) Adjusted earnings calculated based on a 12-month rolling period.
(2) Average shareholders’ equity and average debt are calculated quarterly using a weighted average.
(3) Shareholders’ equity reflects impact of accumulated net pension related equity charge of $189 million as of 9/30/05 and $187 million as of 9/30/04.
(4) The Company adopted return on capital, a non-GAAP financial measure, to determine how effectively capital is utilized across the business.
Note: Totals may not foot due to rounding differences.

36

Free Cash Flow Reconciliation
($ Millions)
12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 9/30/04 9/30/05

Cash Provided by Operating Activities $ 1,023 $ 357 $ 615 $ 812 $ 883 $ 657 $ 469

Changes in Balance of Trade Receivables Sold (270) 235 110 - - - -

Collections of Direct Finance Leases 67 66 66 61 64 47 50

Proceeds from Sales of Assets 230 175 153 210 331 263 254

Capital Expenditures (1) (1,296) (704) (582) (734) (1,092) (770) (1,106)

Proceeds from Sale and Leaseback of Assets - - - 13 118 114 -

Acquisitions (28) - - (97) (149) (149) (15)

Other Investing, Net 4 (3) 4 4 1 - -

Free Cash Flow (2) $ (270) $ 126 $ 366 $ 269 $ 156 $ 162 $ (348)

(1)
Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment.
(2)
The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative
operating performance. Management believes free cash flow provides investors with an important perspective on the cash available for debt
service and shareholders after making capital investments required to support ongoing business operations. The calculation of free cash flow may
be different from the calculation used by other companies and therefore comparability may be limited.

37

Debt to Equity Reconciliation
($ Millions)
% to % to % to % to % to % to % to
12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 9/30/04 Equity 9/30/05 Equity

Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $1,720 119% $2,218 137%

Receivables Sold 345 110 - - - - -

PV of minimum lease
payments and
guaranteed residual
values under
operating leases for
vehicles 879 625 370 153 161 202 146

PV of contingent
rentals under
securitizations 209 441 311 - - - -

Total Obligations (1) $3,450 275% $2,885 234% $2,233 201% $1,969 146% $1,944 129% $1,922 133% $2,364 146%

(1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet
financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to investors
as they are more complete measures of the Company’s existing financial obligations and help investors better assess the Company’s overall
leverage position.
Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as
off-balance sheet debt.

38

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