Avis 2012 Annual Report Download

March 25, 2013
Dear fellow shareholders:
I’m pleased to report that Avis Budget Group delivered record results in 2012. Our success stems from
a healthy operating environment in much of the world along with significant achievements against our
global strategic plan. We made great strides in accelerating profitable growth, expanding our global
footprint, enhancing our customer experience and driving efficiency throughout our organization.
These efforts contributed to:
 record revenue of $7.4 billion, a 25% increase from 2011;
 record Adjusted EBITDA of $840 million, an increase of 38%, excluding certain items1;
 growth in all three of our reporting segments — North America, International and Truck
Rental;
 further expansion of our margins;
 record earnings per share; and
 an 85% increase in our stock price.
In fact, our stock price has more than doubled since the start of 2012. These results are the product
of a dedicated and talented workforce that has been focused on our strategic plan designed to
capitalize on profitable growth opportunities throughout the world. I’d like to highlight a few of our
key accomplishments.
Accelerating Profitable Growth: Our operating, sales and marketing initiatives around the world
helped win new customers, enhanced our customer-loyalty efforts and strengthened our globally
recognized brands. We made great strides against our growth objectives for small business, ancillary
revenue and cross-border travel, which continue to be among our most profitable sources of revenue.
We launched the first of our exciting Customer Relationship Management initiatives and expect that
this will boost our revenue and customer-loyalty efforts in 2013.
Expanding our Global Footprint: One of our key priorities has been to expand Budget’s presence in
Europe, one of the many growth opportunities we foresaw in our 2011 acquisition of Avis Europe plc.
We’ve now added dozens of new locations in major travel destinations such as Spain, and have
succeeded in doubling Budget’s revenue in Europe, with significant opportunity for expansion and
growth still ahead. In 2012, Avis became the first international company to enter the Taiwan car hire
market; we acquired Apex Car Rentals, a leading New Zealand-based value brand that we plan to
expand in the Asia-Pacific region; and Avis now has more than 150 rental locations and service points
in China through our joint venture there. These are all examples of how we are expanding our
presence and our leadership in international markets with significant growth potential.
Putting the Customer First: Our customer-satisfaction scores continued to improve as we make
steady progress toward our goal of being a Customer Led, Service Driven Company. We redesigned our
rental agreements to make them simpler and easier to understand. We launched Avis Preferred Select
& Go in North America, offering what we believe is the best vehicle-choice program in our industry.
Independent measures of our customer satisfaction improved significantly, and we once again won
global recognition for brand loyalty and service excellence.