Hertz 2008 Annual Report Download - page 4

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Letter To Shareholders
2 Innovation…Driving Global Growth
Dear Hertz Shareholders,
Hertz continues to evolve into the most efficient, high
quality and customer-focused company in the global rental
markets we serve. As the year unfolded, due in large part
to a global footprint and cost management focus, Hertz
delivered financial results in line with our business plan
despite declining volume and pricing trends in the car and
equipment rental businesses. However, worldwide volume,
pricing and residual values deteriorated precipitously
during the latter months of the year, driven by a global
financial and economic crisis, which caused businesses
and consumers alike to slash spending. As a result, the
company’s profitability deteriorated and we responded
quickly to right-size the business to reflect economic
conditions unprecedented in our 90-year history.
Nevertheless, Hertz generated full year pre-tax income
last year, on an adjusted basis, on lower revenues. Also, the
Company generated total net cash flow* of $1.8 billion for
the fourth quarter of 2008, and ended the year with liquidity
of over $4.8 billion (subject to borrowing base limitations).
We plan to maintain strong cash flows and liquidity through-
out the current economic crisis and limit operating profit
erosion caused by declining revenues and inflation.
Our overall strategy depends on 25,000 Hertz employees
worldwide who are re-engineering work processes across
the Company to maximize efficiency while preserving ser-
vice levels. Additionally, we are leveraging two of our historic
strengths — innovation and a global focus — to position
Hertz for long term, sustainable success.
Hertz has implemented a wide range of industry-leading
innovations over our 90 year history, and 2008 was no
exception. We introduced rental kiosks in the U.S. and
Europe to speed the rental process. We implemented a
10-minute Service Guarantee for customers who complete
our online check-in process at our new “Best-in-Class”
rated reservation website. We upgraded NeverLost, the
industry leader in onboard satellite navigation systems,
to include online trip planning, local weather and flight
departure information.
We expanded companywide efficiency initiatives
utilizing the Hertz Improvement Process, our version of
Mark P. Frissora
Chief Executive Officer and
Chairman of the Board