Category: Press Release

ESTERO, Fla., March 27, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (Nasdaq: HTZ) today announced that it has appointed Alexandra Brooks, its Chief Accounting Officer, as interim Chief Financial Officer effective April 1, 2023. Ms. Brooks will replace Kenny Cheung, who is leaving the company to pursue another professional opportunity in a different industry.

Hertz is initiating a formal search process for the selection of its permanent Chief Financial Officer. Mr. Cheung will remain at the company until April 14, 2023, to support the first quarter financial closing process and ensure an orderly transition to Ms. Brooks.
"I would like to thank Kenny for his contributions to Hertz and we wish him the best in his future endeavors," said Stephen Scherr, Chair and Chief Executive Officer of Hertz.

"It has been a privilege to be the CFO of Hertz over the last two and a half years and to close my career at the company on a positive note at the end of this quarter," said Kenny Cheung. "I am confident that under Stephen’s leadership, Hertz is well-positioned to deliver on its strategic priorities and create long-term value for shareholders."

About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

SOURCE Hertz Global Holdings, Inc.

Hertz aims to add EVs to Houston fleet and support bp’s installation of a publicly accessible EV fast-charging hub at the Hertz location at Houston Hobby Airport

HOUSTON, March 7, 2023 /PRNewswire/ — Hertz (NASDAQ: HTZ) chair and CEO Stephen Scherr and Houston Mayor Sylvester Turner launched Hertz Electrifies Houston and announced intentions to expand the availability of electric vehicles (EVs), charging infrastructure, and EV education and training opportunities in Houston. The initiative aligns with Mayor Turner’s Houston Climate Action Plan – a strategy that sets out to reduce greenhouse gas emissions, improve regional air quality, and build climate resilience.

"We are excited to partner with Mayor Turner and Evolve Houston to bring Hertz Electrifies to the Energy Capital of the World, and to expand charging capacity for our customers and the broader community," said Stephen Scherr, Hertz chair and CEO. "As Hertz creates the largest EV rental fleet in North America, we look forward to working with the city, Lone Star College-North Harris and other organizations to expand the benefits of electrification in the Houston community."

Hertz aims to bring over 2,100 rental EVs to Houston, nearly tripling its existing EV fleet in the city – including models from Tesla, Polestar, and GM – for availability to leisure and business customers as well as rideshare drivers. In partnership with bp pulse, Hertz will support the installation of a large, EV fast-charging hub designed to serve ride-hail, taxi fleets, and the general public at the Hertz location at Houston Hobby airport.

"Our goal is to convert all non-emergency, light-duty municipal vehicles to electric by 2030. This partnership with Hertz will provide an invaluable boost to achieve this goal and the goal of our Climate Action Plan for Houston to be a net-zero city by 2050," said Houston Mayor Sylvester Turner. "Electrification can benefit every community in Houston. We’re proud to work with Hertz and bp pulse to build up electric fleets and charging infrastructure and bring education and training that will provide new opportunities to all Houstonians."

"Reliable, fast-charging options are critical to scale EV adoption in America and we are thrilled to work with Hertz to bring fast charging to the Houston community. Along with our partnership with Hertz to develop a Gigahub site at their Houston Hobby Airport location, we are also developing a charging hub at bp’s corporate HQ campus in Houston that will be open to the public," said Vic Shao, President of bp pulse fleet. "We look forward to bringing more fast-charging options to more Americans, and closing the infrastructure gap that is hindering wide scale EV adoption."

To help inform the buildout of charging infrastructure across all neighborhoods of Houston, Hertz is sharing with the city anonymous, aggregated telematic insights from its fleet of connected cars through the "Hertz Charging Opportunity Index."

"The Greater Houston area has made significant progress in meeting electrification goals," said Casey Brown, President and Executive Director of Evolve Houston. "We think that the Hertz Electrifies partnership with the city will help grow the electric vehicle sector in Houston and look forward to leveraging shared insights to continue to expand charging infrastructure across all Houston communities."

Hertz is donating an electric vehicle and providing EV educational and training materials to Lone Star College-North Harris to enable the school to incorporate EV technology into its auto servicing curriculum. Hertz is also making summer jobs available to young people in Houston, including through the Hire Houston Youth Summer Jobs program.

"Lone Star College-North Harris houses one of top automotive programs in Texas," said Lone Star College-North Harris President Dr. Archie L. Blanson. "To make our students competitive and meet industry demand, we must ensure we are bringing the latest technologies, including a diversified fleet of EVs into the classroom. We are glad to fulfill students’ academic needs through our partnership with Hertz and Houston. Together we will continue working to ensure that our students are prepared for the jobs and technologies of the future."

Houston is the second city to partner with Hertz in this new initiative that will soon expand to other cities across the country to create economic opportunity and environmental benefits for communities.

About Hertz Electrifies
Hertz Electrifies is a new public-private partnership aimed at furthering the mainstream adoption of electric vehicles and extending the benefits of electrification to communities throughout the United States. The initiative has five pillars: (1) electric vehicle and charging infrastructure; (2) creating jobs of the future; (3) broadening economic opportunity; (4) community engagement; and (5) policy and city planning analysis.

About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com. Hertz has tens of thousands of EVs available at more than 500 Hertz locations across 38 states.

About The City of Houston
The City of Houston is a large metropolis in Texas and home to over 2 million residents. As the Energy Capital of the World, Houston is the headquarters and the intellectual capital for virtually every segment of the energy industry including exploration, production, transmission, marketing, supply, and technology. Houston employs nearly a third of the nation’s jobs in oil and gas extraction. Home to a vibrant economy, beautiful surroundings and a population full of optimism and spirit, it’s no wonder that Houston is a popular international destination.

About bp
bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. bp has a larger economic footprint in the United States than anywhere else in the world, investing more than $140 billion since 2005 and supporting about 245,000 jobs. For more information on bp in the US, visit www.bp.com/US.

About bp pulse
bp pulse is bp’s electric vehicle (EV) charging business, rolling out fast, reliable charge points to consumers and commercial fleets around the world. Entering into the Americas, bp pulse focuses on providing EV charging and energy management to fleets that operate heavy-, medium- and light-duty vehicles. Key offerings for these fleets include intelligent charge management software, Omega, and a Charging-as-a-Service solution–allowing bp pulse to manage the charging of an EV fleet from start to finish, while optimizing energy costs and vehicle utilization. Globally, bp pulse is one of the UK’s leading rapid and ultrafast public EV charging networks. It also operates the largest number of sites with ultra-fast charging in Germany, with a growing charging point footprint in China and the Netherlands. The company aims to increase its network of public EV charging points by 2030 to over 100,000 worldwide.

About Evolve Houston
Evolve Houston is a coalition of sustainability-minded civic, business, and academic leaders who seek to accelerate clean transportation through electrification. Collaborating with government, academic, private industry, and community leaders, our goal is to improve regional air quality and reduce greenhouse gas emissions in the Greater Houston area.

Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "aim," "create," "accelerate," "transition," "will," "build," "future," "transform," "invest," "shift," "launch," "increase," "initiative," "expand," add," and "develop," and similar expressions identify forward-looking statements, which include but are not limited to statements related to the expansion of Hertz’s EV fleet and its partnership with Uber, installation of charging infrastructure including in partnership with bp, and any other statements regarding future expectations, beliefs, plans, objectives, future events or performance. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including Hertz’s ability to expand its EV fleet, develop and install sufficient EV charging infrastructure, and otherwise execute on its strategic plans, as well as other factors identified in the risk factors of Hertz’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the "SEC") on February 23, 2022 and any updates thereto in subsequent filings with the SEC including in Hertz’s Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Hertz undertakes no obligation to update this information.

SOURCE The Hertz Corporation

Partnership with Montbello Career and Technical High School
Jumpstarts Training for Jobs of the Future

DENVER, March 3, 2023 /PRNewswire/ — Hertz (NASDAQ: HTZ) Chair and CEO Stephen Scherr and Denver Mayor Michael Hancock launched Hertz Electrifies in Denver at Montbello Career and Technical High School and announced intentions to expand the availability of electric vehicles (EVs), charging infrastructure, and EV education and training opportunities in the Denver community. Denver is the first city in this new public private initiative with Hertz, which is expanding to other cities across the country.

"Hertz is investing in the largest electric vehicle rental fleet in North America and as part of that effort, we are committed to helping communities tap into the economic and environmental benefits of electrification," said Hertz CEO Stephen Scherr. "We are proud to launch Hertz Electrifies with the city of Denver and Mayor Hancock, and to partner with Montbello Career and Technical High School to help create EV educational and training opportunities for the workforce of the future."

Through Hertz Electrifies, Hertz aims to bring up to 5,200 rental EVs to Denver – including models from Tesla, Polestar, and GM – for availability to leisure and business travelers as well as rideshare drivers. In addition, Hertz is supporting the installation of publicly accessible charging infrastructure in partnership with bp and its global high-speed electric charging network, bp pulse. To help inform the buildout of charging infrastructure across all neighborhoods of Denver, Hertz is sharing with the city anonymous, aggregated telematic insights from its fleet of connected cars through its "Hertz Charging Opportunity Index."

Hertz is donating an electric vehicle and providing EV educational and training materials to Montbello Career and Technical High School to enable the school to incorporate EV technology into its auto servicing curriculum. Hertz is also making summer jobs available to young people in Denver, including through the Denver Youth Employment Program.

"Our partnership with Hertz and their donation of resources and an EV to Montbello Career and Technical High School is a groundbreaking new endeavor to teach young people new skills and prepare them for the next wave of technological advances," said Denver Mayor Michael B. Hancock. "We’re targeting this initial effort right where it’s most needed, and also partnering with the Denver Youth Employment Program to make sure there are similar opportunities across the city. These alliances will further educate our youth and put them on a path to success in the economy of tomorrow."

"At bp we know it’s going to take a high level of coordination to transition to a net zero future," said Denver native and bp America chairman and president Dave Lawler. "These public private partnerships are important, and equally important is engaging students early and often to ensure they have the right skills for the future. We can’t do it without them. I commend Mayor Hancock and Hertz as we continue to make steady progress in Denver."

"Montbello Career and Technical houses the only high school automotive program in the far northeast region of Denver," said Arnetta Koger, Principal of Montbello Career and Technical High School. "We are glad to partner with Hertz and Denver. Now, with our first electric vehicle, we will be able to ensure that our students are preparing for the jobs and technologies of the future."

In January, Hertz announced Hertz Electrifies, a new public-private partnership aimed at accelerating the transition to electric vehicles, while creating economic opportunity and environmental benefits for communities. In addition, Hertz and bp have announced an intention to bring fast charging infrastructure to Hertz locations in major cities, including Denver.

About Hertz Electrifies
Hertz Electrifies is a new public-private partnership aimed at furthering the mainstream adoption of electric vehicles and extending the benefits of electrification to communities throughout the United States. The initiative has five pillars: (1) electric vehicle and charging infrastructure; (2) creating jobs of the future; (3) broadening economic opportunity; (4) community engagement; and (5) policy and city planning analysis.

About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com. Hertz has tens of thousands of EVs available at more than 500 Hertz locations across 38 states.

About The City of Denver
The City of Denver is the capital of Colorado and home to over 700,000 residents. Known as the Mile High City for its 5,280-foot elevation, Denver serves as the gateway to the Rocky Mountains and is home to one of the largest city park systems in the country. Under Mayor Hancock’s leadership, Denver has become known as a top U.S. city for startups and entrepreneurship, especially for minority and women-owned businesses, one of the best places to live and is working to make sure that all residents, no matter which background they represent, can experience the success that Denver has experienced.

About bp
bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. bp has a larger economic footprint in the United States than anywhere else in the world, investing more than $140 billion since 2005 and supporting about 245,000 jobs. For more information on bp in the US, visit www.bp.com/US.

About bp pulse
bp pulse is bp’s electric vehicle (EV) charging business, rolling out fast, reliable charge points to consumers and commercial fleets around the world. Entering into the Americas, bp pulse focuses on providing EV charging and energy management to fleets that operate heavy-, medium- and light-duty vehicles. Key offerings for these fleets include intelligent charge management software, Omega, and a Charging-as-a-Service solution–allowing bp pulse to manage the charging of an EV fleet from start to finish, while optimizing energy costs and vehicle utilization. Globally, bp pulse is one of the UK’s leading rapid and ultrafast public EV charging networks. It also operates the largest number of sites with ultra-fast charging in Germany, with a growing charging point footprint in China and the Netherlands. The company aims to increase its network of public EV charging points by 2030 to over 100,000 worldwide.

Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "aim," "create," "accelerate," "transition," "will," "build," "future," "transform," "invest," "shift," "launch," "increase," "initiative," "expand," add," and "develop," and similar expressions identify forward-looking statements, which include but are not limited to statements related to the expansion of Hertz’s EV fleet and its partnership with Uber, installation of charging infrastructure including in partnership with bp, and any other statements regarding future expectations, beliefs, plans, objectives, future events or performance. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including Hertz’s ability to expand its EV fleet, develop and install sufficient EV charging infrastructure, and otherwise execute on its strategic plans, as well as other factors identified in the risk factors of Hertz’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the "SEC") on February 23, 2022 and any updates thereto in subsequent filings with the SEC including in Hertz’s Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Hertz undertakes no obligation to update this information.

SOURCE The Hertz Corporation

"Our strong results in the fourth quarter and record performance last year reflect a commitment to customers – from leisure and corporate travelers to ride share drivers. With a focus on asset return and risk management, we showed better operating performance, more disciplined fleet management and a commitment to financial returns," said Stephen Scherr, Hertz chair and chief executive officer. "Our team delivered on renewed demand for travel, which is continuing. In 2023, we will build on our progress to grow our business across the Hertz, Dollar, and Thrifty brands. We look to our investments in electrification and technology to yield increasing operating leverage and improved returns and an even better product to our customers around the world."

ESTERO, Fla., Feb. 7, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its fourth quarter and full year 2022.

For the fourth quarter 2022, the Company generated total revenues of $2.0 billion, up 4% from the fourth quarter of 2021, and up 7% on a constant currency basis. RPD and RPU were at fourth quarter record levels and volume was up 3% led by post-pandemic demand recovery. Depreciation continued to normalize during the quarter. Excluding litigation settlements of $168 million in the quarter, direct operating expense per transaction day was $33, down $2 from the third quarter 2022, demonstrating improved operating leverage. Net income was $116 million and Adjusted Corporate EBITDA was $309 million, a 15% margin. For the quarter, loss per share was $0.01 and adjusted earnings per share was $0.50.

Operating cash flow was $277 million for the quarter. Fleet capex of $312 million was a source of cash in the fourth quarter, driven by fleet rejuvenation and seasonal defleeting. As a result, adjusted free cash flow was $424 million, reflecting a 137% conversion from Adjusted Corporate EBITDA. The Company acquired 19 million shares, or 6% of its common stock, during the quarter.

HIGHLIGHTS

Q4 2022

• Revenue of $2.0 billion
• GAAP net income of $116 million, or $(0.01) per diluted share
• Adjusted net income of $173 million, or $0.50 per diluted share
• Adjusted Corporate EBITDA of $309 million, a 15% margin
• Operating cash flow of $277 million
• Adj. operating cash flow of $156 million; adj. free cash flow of $424 million

FY 2022

• Revenue of $8.7 billion
• Record GAAP net income of $2.1 billion, or $3.36 per diluted share
• Record adjusted net income of $1.5 billion, or $3.74 per diluted share
• Record Adjusted Corporate EBITDA of $2.3 billion, a 27% margin
• Operating cash flow of $2.5 billion
• Record adj. operating cash flow of $2.0 billion and adj. free cash flow of $1.5 billion
• Corporate liquidity of $2.5 billion at December 31st, including $943 million in unrestricted cash
• Company repurchased 128 million common shares during 2022, a 28.5% reduction of its capital base

SUMMARY RESULTS

	Three Months Ended December 31,				Percent Inc/(Dec) 2022 vs 2021
($ in millions, except earnings per share or where noted)	2022		2021
Hertz Global – Consolidated
Total revenues	$ 2,035		$ 1,949		4 %
Adjusted net income (loss)(a)	$ 173		$ 426		(59) %
Adjusted diluted earnings (loss) per share(a)	$ 0.50		$ 0.91		(45) %
Adjusted Corporate EBITDA(a)	$ 309		$ 628		(51) %
Adjusted Corporate EBITDA Margin(a)	15 %		32 %
Average Vehicles (in whole units)	496,926		470,900		6 %
Average Rentable Vehicles (in whole units)	465,943		454,000		3 %
Vehicle Utilization	79 %		78 %
Transaction Days (in thousands)	33,673		32,551		3 %
Total RPD (in dollars)(b)	$ 61.65		$ 59.80		3 %
Total RPU Per Month (in whole dollars)(b)	$ 1,485		$ 1,429		4 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 244		$ 55		NM
Americas RAC Segment
Total revenues	$ 1,707		$ 1,691		1 %
Adjusted EBITDA	$ 318		$ 653		(51) %
Adjusted EBITDA Margin	19 %		39 %
Average Vehicles (in whole units)	398,860		384,492		4 %
Average Rentable Vehicles (in whole units)	370,723		368,434		1 %
Vehicle Utilization	80 %		80 %
Transaction Days (in thousands)	27,367		27,215		1 %
Total RPD (in dollars)(b)	$ 62.50		$ 62.11		1 %
Total RPU Per Month (in whole dollars)(b)	$ 1,538		$ 1,529		1 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 278		$ 26		NM
International RAC Segment
Total revenues	$ 328		$ 258		27 %
Adjusted EBITDA	$ 81		$ 21		NM
Adjusted EBITDA Margin	25 %		8 %
Average Vehicles (in whole units)	98,065		86,408		13 %
Average Rentable Vehicles (in whole units)	95,221		85,565		11 %
Vehicle Utilization	72 %		68 %
Transaction Days (in thousands)	6,305		5,335		18 %
Total RPD (in dollars)(b)	$ 57.98		$ 48.01		21 %
Total RPU Per Month (in whole dollars)(b)	$ 1,280		$ 998		28 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 104		$ 184		(44) %

NM – Not meaningful
(a)	Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2022 and 2021.
(b)	Based on December 31, 2021 foreign exchange rates.

LIQUIDITY AND CAPITAL RESOURCES

In December 2022, the Company amended its European ABS facility to add the fleet in Italy, increase aggregate maximum borrowings to €1.1 billion and extend the maturity from October 2023 to November 2024.

During the fourth quarter 2022, the Company repurchased 19 million shares for $315 million and has over $1.1 billion remaining under the Board’s authorization.

The Company’s liquidity position was $2.5 billion at December 31, 2022, of which $943 million was unrestricted cash.

EARNINGS WEBCAST INFORMATION

Hertz Global’s live webcast and conference call to discuss its fourth quarter and full year 2022 results will be held on February 7, 2023, at 8:30 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://register.vevent.com/register/BI78420368890940eab75ec4e147ae0783, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS

Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its view of the usefulness of non-GAAP measures to investors and management.

In the first quarter of 2022, the Company began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. Prior periods have been restated to conform with the revisions, as appropriate. The Company has also restated historical quarterly and annual periods beginning with first quarter 2018 to reflect this change and has posted this information to its investor relations website at IR.Hertz.com.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.

Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:

• the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including as a result of disruptions in the global supply chain;
• the Company’s ability to attract and retain effective frontline employees and senior management and other key employees;
• levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
• significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
• occurrences that disrupt rental activity during the Company’s peak periods including in critical geographies;
• the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
• the Company’s ability to implement its business strategy or strategic transactions, including its ability to implement plans to support a large scale electric vehicle fleet and to play a central role in the modern mobility ecosystem;
• the Company’s ability to adequately respond to changes in technology impacting the mobility industry;
• the mix of program and non-program vehicles in the Company’s fleet can lead to increased exposure to residual risk upon disposition;
• financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs;
• an increase in the Company’s vehicle costs or disruption to its rental activity due to safety recalls by the manufacturers of its vehicles;
• the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes;
• the Company’s ability to offer an excellent customer experience, retain and increase customer loyalty and market share;
• the Company’s ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
• the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
• the Company’s ability to effectively manage its union relations and labor agreement negotiations;
• the Company’s ability, and that of its key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber security breaches and other security threats, as well as to comply with privacy regulations across the globe;
• a major disruption in the Company’s communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
• risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
• risks relating to tax laws, including those that affect the Company’s ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
• the Company’s ability to utilize its net operating loss carryforwards;
• the Company’s exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise;
• changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect the Company’s operations, its costs or applicable tax rates;
• the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis;
• costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations;
• the Company’s ability to comply with ESG regulations, meet increasing ESG expectations of stakeholders, and otherwise achieve its ESG goals;
• the availability of additional or continued sources of financing at acceptable rates for the Company’s revenue earning vehicles and to refinance its existing indebtedness;
• volatility in the Company’s stock price and certain provisions of its charter documents which could negatively affect the market price of the Company’s common stock;
• the Company’s ability to effectively maintain effective internal controls over financial reporting; and
• the Company’s ability to implement an effective business continuity plan to protect the business in exigent circumstances.

Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

UNAUDITED FINANCIAL INFORMATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended December 31,				Twelve Months Ended December 31,
(In millions, except per share data)	2022		2021		2022		2021
Revenues	$ 2,035		$ 1,949		$ 8,685		$ 7,336
Expenses:
Direct vehicle and operating	1,274		1,065		4,808		3,920
Depreciation of revenue earning vehicles and lease charges, net	360		78		701		497
Non-vehicle depreciation and amortization	37		43		142		196
Selling, general and administrative	221		188		959		688
Interest expense, net:
Vehicle	82		41		159		284
Non-vehicle	46		28		169		185
Total interest expense, net	128		69		328		469
Other (income) expense, net	8		(1)		2		(21)
Reorganization items, net	—		—		—		677
(Gain) from the sale of a business	—		—		—		(400)
Change in fair value of Public Warrants	(120)		643		(704)		627
Total expenses	1,908		2,085		6,236		6,653
Income (loss) before income taxes	127		(136)		2,449		683
Income tax (provision) benefit	(11)		(125)		(390)		(318)
Net income (loss)	116		(261)		2,059		365
Net (income) loss attributable to noncontrolling interests	—		1		—		1
Net income (loss) attributable to Hertz Global	116		(260)		2,059		366
Series A Preferred Stock deemed dividends	—		(450)		—		(450)
Net income (loss) available to Hertz Global common stockholders	$ 116		$ (710)		$ 2,059		$ (84)
Weighted average number of shares outstanding:
Basic	332		468		379		315
Diluted	347		468		403		315
Earnings (loss) per share:
Basic	$ 0.35		$ (1.52)		$ 5.43		$ (0.27)
Diluted	$ (0.01)		$ (1.52)		$ 3.36		$ (0.27)

UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)	December 31, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$ 943		$ 2,258
Restricted cash and cash equivalents:
Vehicle	180		77
Non-vehicle	295		316
Total restricted cash and cash equivalents	475		393
Total cash and cash equivalents and restricted cash and cash equivalents	1,418		2,651
Receivables:
Vehicle	111		62
Non-vehicle, net of allowance of $45 and $48, respectively	863		696
Total receivables, net	974		758
Prepaid expenses and other assets	1,155		1,017
Revenue earning vehicles:
Vehicles	14,281		10,836
Less: accumulated depreciation	(1,786)		(1,610)
Total revenue earning vehicles, net	12,495		9,226
Property and equipment, net	637		608
Operating lease right-of-use assets	1,887		1,566
Intangible assets, net	2,887		2,912
Goodwill	1,044		1,045
Total assets	$ 22,497		$ 19,783
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle	$ 79		$ 56
Non-vehicle	578		516
Total accounts payable	657		572
Accrued liabilities	911		863
Accrued taxes, net	170		157
Debt:
Vehicle	10,886		7,921
Non-vehicle	2,977		2,986
Total debt	13,863		10,907
Public Warrants	617		1,324
Operating lease liabilities	1,802		1,510
Self-insured liabilities	472		463
Deferred income taxes, net	1,360		1,010
Total liabilities	19,852		16,806
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 478,914,062 and 477,233,278 shares issued, respectively, and 323,483,178 and 449,782,424 shares outstanding, respectively	5		5
Treasury stock, at cost, 155,430,884 and 27,450,854 common shares, respectively	(3,136)		(708)
Additional paid-in capital	6,326		6,209
Retained earnings (Accumulated deficit)	(256)		(2,315)
Accumulated other comprehensive income (loss)	(294)		(214)
Total stockholders’ equity	2,645		2,977
Total liabilities and stockholders’ equity	$ 22,497		$ 19,783

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended December 31,				Twelve Months Ended December 31,
(In millions)	2022		2021		2022		2021
Cash flows from operating activities:
Net income (loss)	$ 116		$ (261)		$ 2,059		$ 365
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	298		94		809		600
Depreciation and amortization, non-vehicle	37		43		142		196
Amortization of deferred financing costs and debt discount (premium)	15		13		53		122
Loss on extinguishment of debt	—		—		—		8
Stock-based compensation charges	34		7		130		10
Provision for receivables allowance	15		30		57		125
Deferred income taxes, net	—		145		301		270
Reorganization items, net	—		—		—		314
(Gain) loss from the sale of a business	—		—		—		(400)
(Gain) loss on sale of non-vehicle capital assets	—		—		(5)		(8)
Change in fair value of Public Warrants	(120)		643		(704)		627
(Gain) loss on financial instruments	9		(3)		(111)		(4)
Other	8		6		11		(1)
Changes in assets and liabilities:
Non-vehicle receivables	(30)		13		(264)		(210)
Prepaid expenses and other assets	(46)		33		(126)		(20)
Operating lease right-of-use assets	78		71		280		274
Non-vehicle accounts payable	50		(25)		43		(70)
Accrued liabilities	(103)		(65)		80		(108)
Accrued taxes, net	21		(65)		73		24
Operating lease liabilities	(86)		(77)		(309)		(291)
Self-insured liabilities	(19)		(4)		19		(17)
Net cash provided by (used in) operating activities	277		598		2,538		1,806
Cash flows from investing activities:
Revenue earning vehicles expenditures	(2,743)		(1,958)		(10,596)		(7,154)
Proceeds from disposal of revenue earning vehicles	2,028		873		6,498		2,818
Non-vehicle capital asset expenditures	(46)		(30)		(150)		(71)
Proceeds from disposal of non-vehicle capital assets	2		(1)		12		16
Collateral payments	—		—		—		(303)
Collateral returned in exchange for letters of credit	—		12		19		280
Return of (investment in) equity investments	(1)		—		(16)		—
Proceeds from the sale of a business, net of cash sold	—		—		—		871
Other	—		—		—		(1)
Net cash provided by (used in) investing activities	(760)		(1,104)		(4,233)		(3,544)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,390		3,861		9,672		14,323
Repayments of vehicle debt	(685)		(3,144)		(6,639)		(12,607)
Proceeds from issuance of non-vehicle debt	—		1,505		—		4,644
Repayments of non-vehicle debt	(6)		(6)		(20)		(6,352)
Payment of financing costs	(6)		(31)		(48)		(185)
Proceeds from Plan Sponsors	—		—		—		2,781
Early redemption premium payment	—		—		—		(85)
Proceeds from exercises of Public Warrants	—		77		3		77
Proceeds from the issuance of preferred stock, net	—		—		—		1,433
Repurchase of preferred stock	—		(1,883)		—		(1,883)
Distributions to common stockholders	—		—		—		(239)
Contributions from (distributions to) noncontrolling interests	—		(13)		—		(38)
Proceeds from 2021 Rights Offering, net	—		—		—		1,639
Share repurchases	(309)		(654)		(2,461)		(654)
Other	(16)		(9)		(20)		(9)
Net cash provided by (used in) financing activities	368		(297)		487		2,845
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	25		(12)		(25)		(34)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	(90)		(815)		(1,233)		1,073
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period(a)	1,508		3,466		2,651		1,578
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$ 1,418		$ 2,651		$ 1,418		$ 2,651

(a)	Amounts include cash and cash equivalents and restricted cash and cash equivalents of Donlen which were held for sale as of December 31, 2020.

Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Three Months Ended December 31, 2022								Three Months Ended December 31, 2021
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$ 1,707		$ 328		$ —		$ 2,035		$ 1,691		$ 258		$ —		$ 1,949
Expenses:
Direct vehicle and operating	1,098		174		2		1,274		908		154		3		1,065
Depreciation of revenue earning vehicles and lease charges	333		27		—		360		30		48		—		78
Depreciation and amortization of non-vehicle assets	29		3		5		37		36		4		3		43
Selling, general and administrative	81		38		102		221		90		39		59		188
Interest expense, net:
Vehicle	72		10		—		82		31		10		—		41
Non-vehicle	(36)		(1)		83		46		(6)		—		34		28
Total interest expense, net	36		9		83		128		25		10		34		69
Other (income) expense, net	(3)		6		5		8		(2)		1		—		(1)
Change in fair value of Public Warrants	—		—		(120)		(120)		—		—		643		643
Total expenses	1,574		257		77		1,908		1,087		256		742		2,085
Income (loss) before income taxes	$ 133		$ 71		$ (77)		127		$ 604		$ 2		$ (742)		(136)
Income tax (provision) benefit							(11)								(125)
Net income (loss)							116								(261)
Net (income) loss attributable to noncontrolling interests							—								1
Net income (loss) attributable to Hertz Global							116								(260)
Series A Preferred Stock deemed dividends							—								(450)
Net income (loss) available to Hertz Global common stockholders							$ 116								$ (710)

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Twelve Months Ended December 31, 2022								Twelve Months Ended December 31, 2021
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		All other operations		Corporate		Hertz Global
Revenues	$ 7,280		$ 1,405		$ —		$ 8,685		$ 6,215		$ 985		$ 136		$ —		$ 7,336
Expenses:
Direct vehicle and operating	4,080		728		—		4,808		3,302		606		5		7		3,920
Depreciation of revenue earning vehicles and lease charges	553		148		—		701		343		154		—		—		497
Depreciation and amortization of non-vehicle assets	114		13		15		142		166		16		2		12		196
Selling, general and administrative	351		180		428		959		282		136		10		260		688
Interest expense, net:
Vehicle	140		19		—		159		213		59		12		—		284
Non-vehicle	(80)		—		249		169		(15)		3		1		196		185
Total interest expense, net	60		19		249		328		198		62		13		196		469
Other (income) expense, net	(6)		3		5		2		(10)		(1)		—		(10)		(21)
Reorganization items, net	—		—		—		—		80		12		(1)		586		677
(Gain) from the sale of a business	—		—		—		—		—		—		—		(400)		(400)
Change in fair value of Public Warrants	—		—		(704)		(704)		—		—		—		627		627
Total expenses	5,152		1,091		(7)		6,236		4,361		985		29		1,278		6,653
Income (loss) before income taxes	$ 2,128		$ 314		$ 7		2,449		$ 1,854		$ —		$ 107		$ (1,278)		683
Income tax (provision) benefit							(390)										(318)
Net income (loss)							2,059										365
Net (income) loss attributable to noncontrolling interests							—										1
Net income (loss) attributable to Hertz Global							2,059										366
Series A Preferred Stock deemed dividends							—										(450)
Net income (loss) available to Hertz Global common stockholders							$ 2,059										$ (84)

NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company’s Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.

Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
	Three Months Ended December 31,				Twelve Months Ended December 31,
(In millions, except per share data)	2022		2021		2022		2021
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global	$ 116		$ (260)		$ 2,059		$ 366
Adjustments:
Income tax provision (benefit)	11		125		390		318
Vehicle and non-vehicle debt-related charges(a)(l)	14		13		53		129
Restructuring and restructuring related charges(b)	16		4		45		76
Acquisition accounting-related depreciation and amortization(c)	1		7		3		43
Reorganization items, net(d)	—		—		—		677
Pre-reorganization and non-debtor financing charges(e)	—		—		—		42
Gain from the Donlen Sale(f)	—		—		—		(400)
Change in fair value of Public Warrants	(120)		643		(704)		627
Unrealized (gains) losses on financial instruments	9		(3)		(111)		(4)
Litigation settlements(g)	168		—		168		—
Other items(h)(p)	16		39		105		(29)
Adjusted pre-tax income (loss)(i)	231		568		2,008		1,845
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)	(58)		(142)		(502)		(461)
Adjusted Net Income (Loss)	$ 173		$ 426		$ 1,506		$ 1,384
Weighted-average number of diluted shares outstanding	347		468		403		315
Adjusted Diluted Earnings (Loss) Per Share(k)	$ 0.50		$ 0.91		$ 3.74		$ 4.39
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	$ 116		$ (260)		$ 2,059		$ 366
Adjustments:
Income tax provision (benefit)	11		125		390		318
Non-vehicle depreciation and amortization(l)	37		43		142		196
Non-vehicle debt interest, net of interest income(m)	46		28		169		185
Vehicle debt-related charges(a)(n)	10		10		35		72
Restructuring and restructuring related charges(b)	16		4		45		76
Reorganization items, net(d)	—		—		—		677
Pre-reorganization and non-debtor financing charges(e)	—		—		—		42
Gain from the Donlen Sale(f)	—		—		—		(400)
Change in fair value of Public Warrants	(120)		643		(704)		627
Unrealized (gains) losses on financial instruments	9		(3)		(111)		(4)
Litigation settlements(g)	168		—		168		—
Other items(h)(o)	16		38		112		(25)
Adjusted Corporate EBITDA	$ 309		$ 628		$ 2,305		$ 2,130

Supplemental Schedule II (continued)
(a)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)	Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For the year ended December 31, 2021, charges incurred were $36 million, $32 million and $8 million in Corporate, Americas RAC and International RAC, respectively.
(c)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(d)	Represents charges incurred associated with the Reorganization and emergence from Chapter 11, including professional fees. The charges relate primarily to Corporate.

		Twelve Months Ended December 31,
(In millions)		2021
Professional fees and other bankruptcy related costs		$ 257
Loss on extinguishment of debt		191
Backstop fee		164
Breakup fee		77
Contract settlements		25
Cancellation of share-based compensation grants		(10)
Net gain on settlement of liabilities subject to compromise		(22)
Other, net		(5)
Reorganization items, net		$ 677

(e)	Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. For the year ended December 31, 2021, charges incurred were $17 million, $17 million, $6 million and $2 million in Corporate, Americas RAC, International RAC and all other operations, respectively.
(f)	Represents the gain from the sale of the Company’s Donlen business on March 30, 2021, primarily associated with Corporate.
(g)	Represents payments made for the settlement of certain claims related to alleged false arrests in our Americas RAC segment.
(h)	Represents miscellaneous items. For 2022, includes certain bankruptcy claims and certain professional fees and charges related to the settlement of bankruptcy claims. For 2021, includes $100 million associated with the suspension of depreciation during the first quarter for the Donlen business while classified as held for sale in all other operations, partially offset by $17 million for certain professional fees primarily associated with Corporate, $14 million of charges related to the settlement of bankruptcy claims primarily associated with Corporate, charges for a multiemployer pension plan withdrawal liability recorded in Corporate, letter of credit fees recorded primarily in Corporate, and $12 million of costs associated with the Company’s information technology and finance transformation programs, both of which were multi-year initiatives to upgrade and modernize the Company’s systems and processes primarily in Corporate.
Supplemental Schedule II (continued)
(i)	Adjustments by caption on a pre-tax basis were as follows:

Increase (decrease) to expenses	Three Months Ended December 31,				Twelve Months Ended December 31,
(In millions)	2022		2021		2022		2021
Direct vehicle and operating	$ (178)		$ (12)		$ (232)		$ 33
Selling, general and administrative	(17)		2		(79)		(90)
Interest expense, net:
Vehicle	(16)		(10)		76		(91)
Non-vehicle	(8)		(3)		(28)		(57)
Total interest expense, net	(24)		(13)		58		(148)
Intangible and other asset impairments	—		—		—		—
Other income (expense), net	(5)		(37)		—		(52)
Reorganization items, net	—		—		—		(677)
Gain from the Donlen Sale	—		—		—		400
Change in fair value of Public Warrants	120		(643)		704		(627)
Total adjustments	$ (104)		$ (703)		$ 441		$ (1,161)

(j)	Derived utilizing a combined statutory rate of 25% for the periods ended December 31, 2022 and 2021, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(k)	Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(l)	Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended December 31, 2022 was $29 million, $3 million and $5 million, respectively. For the three months ended December 31, 2021 was $36 million, $4 million, and $3 million, respectively. Non-vehicle depreciation and amortization for Americas RAC, International RAC, and Corporate for the twelve months ended December 31, 2022 were $114 million, $13 million, and $15 million, respectively. For the twelve months ended December 31, 2021 were $166 million, $16 million, $2 million and $12 million, for Americas RAC, International RAC, all other operations, and Corporate, respectively.
(m)	In 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of non-vehicle debt in Corporate in the second quarter of 2021.
(n)	Vehicle debt-related charges for Americas RAC and International RAC for the three months ended December 31, 2022 were $8 million and $2 million, respectively. For the three months ended December 31, 2021 vehicle debt-related charges for Americas RAC and International RAC were $6 million and $4 million, respectively. Vehicle debt-related charges for Americas RAC and International RAC for the twelve months ended December 31, 2022 were $25 million and $10 million, respectively. For the twelve months ended December 31, 2021 were $53 million, $16 million and $2 million for Americas RAC, International RAC and all other operations, respectively.
(o)	Also includes an adjustment for certain non-cash stock-based compensation charges in Corporate.
(p)	Also includes letter of credit fees recorded in 2022 and the second half of 2021 in Corporate.

Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
	Three Months Ended December 31,				Twelve Months Ended December 31,
(In millions)	2022		2021		2022		2021
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities	$ 277		$ 598		$ 2,538		$ 1,806
Depreciation and reserves for revenue earning vehicles	(298)		(94)		(809)		(600)
Bankruptcy related payments (post emergence) and other payments(a)	177		69		261		257
Adjusted operating cash flow	156		573		1,990		1,463
Non-vehicle capital asset expenditures, net	(44)		(31)		(138)		(55)
Adjusted operating cash flow before vehicle investment	112		542		1,852		1,408
Net fleet growth after financing	312		(32)		(360)		(1,980)
Noncontrolling interests	—		(1)		—		(26)
Adjusted free cash flow	$ 424		$ 509		$ 1,492		$ (598)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures	$ (2,743)		$ (1,958)		$ (10,596)		$ (7,154)
Proceeds from disposal of revenue earning vehicles	2,028		873		6,498		2,818
Revenue earning vehicles capital expenditures, net	(715)		(1,085)		(4,098)		(4,336)
Depreciation and reserves for revenue earning vehicles	298		94		809		600
Financing activity related to vehicles:
Borrowings	1,390		3,861		9,672		14,323
Payments	(685)		(3,144)		(6,639)		(12,607)
Restricted cash changes, vehicle(b)	24		242		(104)		40
Net financing activity related to vehicles	729		959		2,929		1,756
Net fleet growth after financing	$ 312		$ (32)		$ (360)		$ (1,980)

(a)	Also includes payments made for the settlement of certain claims related to alleged false arrests in our Americas RAC segment.
(b)	The twelve months ended December 31, 2021 includes a $68 million impact related to restricted cash classified as held for sale as of December 31, 2020.

Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
(In millions)	As of December 31, 2022						As of December 31, 2021
	Vehicle		Non-Vehicle		Total		Vehicle		Non-Vehicle		Total
Term loans	$ —		$ 1,526		$ 1,526		$ —		$ 1,539		$ 1,539
Senior notes	—		1,500		1,500		—		1,500		1,500
U.S. vehicle financing (HVF III)	9,406		—		9,406		7,001		—		7,001
International vehicle financing (Various)	1,466		—		1,466		860		—		860
Other debt	76		9		85		93		16		109
Debt issue costs, discounts and premiums	(62)		(58)		(120)		(33)		(69)		(102)
Debt as reported in the balance sheet	10,886		2,977		13,863		7,921		2,986		10,907
Add:
Debt issue costs, discounts and premiums	62		58		120		33		69		102
Less:
Cash and cash equivalents	—		943		943		—		2,258		2,258
Restricted cash	180		—		180		77		—		77
Restricted cash and restricted cash equivalents associated with Term C Loan	—		245		245		—		245		245
Net Debt	$ 10,768		$ 1,847		$ 12,615		$ 7,877		$ 552		$ 8,429
Corporate leverage ratio(a)			0.8x						0.3x

(a)	Corporate leverage ratio is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA.

Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Global RAC
	Three Months Ended December 31,				Percent Inc/(Dec)		Twelve Months Ended December 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 2,035		$ 1,949				$ 8,685		$ 7,200
Foreign currency adjustment(a)	41		(3)				111		(36)
Total Revenues – adjusted for foreign currency	$ 2,076		$ 1,946				$ 8,796		$ 7,164
Transaction Days (in thousands)	33,673		32,551				136,860		120,573
Total RPD (in dollars)(c)	$ 61.65		$ 59.80		3 %		$ 64.27		$ 59.41		8 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 2,076		$ 1,946				$ 8,796		$ 7,164
Average Rentable Vehicles (in whole units)(d)	465,943		454,000				478,798		421,497
Total revenue per unit (in whole dollars)	$ 4,456		$ 4,287				$ 18,371		$ 16,996
Number of months in period (in whole units)	3		3				12		12
Total RPU Per Month (in whole dollars)(c)(d)	$ 1,485		$ 1,429		4 %		$ 1,531		$ 1,416		8 %
Vehicle Utilization
Transaction Days (in thousands)	33,673		32,551				136,860		120,573
Average Rentable Vehicles (in whole units)(d)	465,943		454,000				478,798		421,497
Number of days in period (in whole units)	92		92				365		365
Available Car Days (in thousands)	42,870		41,770				174,826		153,996
Vehicle Utilization(b)(d)	79 %		78 %				78 %		78 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 360		$ 78				$ 701		$ 497
Foreign currency adjustment(a)	3		—				12		(5)
Adjusted depreciation of revenue earning vehicles and lease charges	$ 363		$ 78				$ 713		$ 492
Average Vehicles (in whole units)	496,926		470,900				506,046		433,290
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 731		$ 167				$ 1,409		$ 1,136
Number of months in period (in whole units)	3		3				12		12
Depreciation Per Unit Per Month (in whole dollars)	$ 244		$ 55		NM		$ 117		$ 95		24 %

Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate and the Company’s former Donlen leasing operations which were sold on March 30, 2021.
(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.
(c)	Effective during the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(d)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
	Three Months Ended December 31,				Percent Inc/(Dec)		Twelve Months Ended December 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 1,707		$ 1,691				$ 7,280		$ 6,215
Foreign currency adjustment(a)	3		(1)				4		(3)
Total Revenues – adjusted for foreign currency	$ 1,710		$ 1,690				$ 7,284		$ 6,212
Transaction Days (in thousands)	27,367		27,215				111,759		100,085
Total RPD (in dollars)(c)	$ 62.50		$ 62.11		1 %		$ 65.18		$ 62.07		5 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 1,710		$ 1,690				$ 7,284		$ 6,212
Average Rentable Vehicles (in whole units)(d)	370,723		368,434				385,234		345,306
Total revenue per unit (in whole dollars)	$ 4,614		$ 4,588				$ 18,909		$ 17,991
Number of months in period (in whole units)	3		3				12		12
Total RPU Per Month (in whole dollars)(c)(d)	$ 1,538		$ 1,529		1 %		$ 1,576		$ 1,499		5 %
Vehicle Utilization
Transaction Days (in thousands)	27,367		27,215				111,759		100,085
Average Rentable Vehicles (in whole units)	370,723		368,434				385,234		345,306
Number of days in period (in whole units)	92		92				365		365
Available Car Days (in thousands)	34,109		33,898				140,647		126,159
Vehicle Utilization(b)	80 %		80 %				79 %		79 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 333		$ 30				$ 553		$ 343
Foreign currency adjustment(a)	—		—				1		—
Adjusted depreciation of revenue earning vehicles and lease charges	$ 333		$ 30				$ 554		$ 343
Average Vehicles (in whole units)	398,860		384,492				411,047		355,647
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 834		$ 77				$ 1,348		$ 964
Number of months in period (in whole units)	3		3				12		12
Depreciation Per Unit Per Month (in whole dollars)	$ 278		$ 26		NM		$ 112		$ 81		39 %

NM – Not meaningful
(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.
(c)	Effective during the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(d)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
	Three Months Ended December 31,				Percent Inc/(Dec)		Twelve Months Ended December 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 328		$ 258				$ 1,405		$ 985
Foreign currency adjustment(a)	38		(2)				107		(34)
Total Revenues – adjusted for foreign currency	$ 366		$ 256				$ 1,512		$ 951
Transaction Days (in thousands)	6,305		5,335				25,101		20,488
Total RPD (in dollars)(c)	$ 57.98		$ 48.01		21 %		$ 60.23		$ 46.43		30 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 366		$ 256				$ 1,512		$ 951
Average Rentable Vehicles (in whole units)(d)	95,221		85,565				93,564		76,190
Total revenue per unit (in whole dollars)	$ 3,840		$ 2,994				$ 16,158		$ 12,485
Number of months in period (in whole units)	3		3				12		12
Total RPU Per Month (in whole dollars)(c)(d)	$ 1,280		$ 998		28 %		$ 1,346		$ 1,040		29 %
Vehicle Utilization
Transaction Days (in thousands)	6,305		5,335				25,101		20,488
Average Rentable Vehicles (in whole units)	95,221		85,565				93,564		76,190
Number of days in period (in whole units)	92		92				365		365
Available Car Days (in thousands)	8,762		7,872				34,179		27,837
Vehicle Utilization(b)	72 %		68 %				73 %		74 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$ 27		$ 48				$ 148		$ 154
Foreign currency adjustment(a)	3		—				11		(5)
Adjusted depreciation of revenue earning vehicles and lease charges	$ 30		$ 48				$ 159		$ 149
Average Vehicles (in whole units)	98,065		86,408				94,999		77,643
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 301		$ 552				$ 1,673		$ 1,915
Number of months in period (in whole units)	3		3				12		12
Depreciation Per Unit Per Month (in whole dollars)	$ 104		$ 184		(44) %		$ 139		$ 160		(13) %

(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.
(c)	Effective during the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(d)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

NON-GAAP MEASURES AND KEY METRICS

The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.

Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.

Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items.

Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.

Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted operating cash flow and adjusted free cash flow

Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is important to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.

Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is important to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.

KEY METRICS

Available Car Days

Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")

Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPD to include ancillary retail vehicle sales revenues to better align with current industry practice. Prior periods shown have been restated to conform with the revised definition.

Total Revenue Per Unit Per Month ("Total RPU" or "Total RPU Per Month")

Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPU to include ancillary retail vehicle sales revenues to better align with current industry practice. Also, historically, the company used Average Vehicles as the denominator to calculate Total RPU and effective in the first quarter of 2022, the Company revised the calculation to use Average Rentable Vehicles. Prior periods shown have been restated to conform with the revised definition.

Transaction Days ("Days"; also referred to as "volume")

Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.

Vehicle Utilization ("Utilization")

Effective in the first quarter of 2022, in connection with the appointment of the new CEO (who serves as our Chief Operating Decision Maker) and arising from significantly increased activity in vehicle dispositions, we began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. We believe this is a better measure of the productivity of our rental fleet as it is unaffected by fluctuations in disposition activity. Prior periods have been restated to conform with the revisions, as appropriate.

SOURCE Hertz Global Holdings, Inc.

The two marquee brands celebrate 45 years of partnership and look toward the future with new five-year agreement

ESTERO, Fla. and ORLANDO, Fla., Jan. 25, 2023 /PRNewswire/ — Hertz, one of the most recognized vehicle rental companies around the globe, and AAA, one of North America’s largest and most trusted membership organizations serving over 56 million U.S. members, have extended their exclusive, 45-year relationship with the signing of a new five-year agreement.

The relationship, which commenced in 1978 and is one of Hertz and AAA’s most longstanding, provides AAA members with a comprehensive suite of car rental benefits, discounted rates, and other exclusive perks which include:

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• Everyday savings off the base rate rental
• No charge for additional drivers who are also AAA members
• Free use of one child, infant or booster seat
• Young renter fee waived for members ages 20-24
• Access to Hertz Gold Plus Rewards® loyalty program, which offers additional and exclusive benefits

Hertz and AAA will continue to elevate this partnership over the next five years by creating opportunities to align on strategic initiatives, developing contemporary services and technologies, and identifying new ways to exceed member satisfaction.

"We are proud to continue our longstanding partnership with AAA, providing members with an unparalleled suite of benefits and savings when renting from Hertz," said Stephen Scherr, Hertz CEO. "It’s thrilling for two pioneering brands, both in travel and automotive, to continue our mutual commitment to delivering superior service."

In addition to the already robust benefits offered to members, AAA is also aligned with Hertz’s commitment to electric vehicles (EVs); particularly its investment to create one of the largest EV rental fleets in the world. EVs are a top priority for AAA as it continues to expand its body of related research to understand consumer opinion, vehicle functionality, and other areas of interest. As the popularity of electric vehicles grows, AAA believes working with Hertz is another step toward expanding consumer adoption for EVs.

"Hertz is one of AAA’s only exclusive relationships, and there’s a reason for that," said Marshall Doney, president, and CEO, AAA. "They consistently deliver exceptional value to our members while keeping an eye on consumer trends and evolving their offerings to match those needs."

About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

About AAA
Started in 1902 by automotive enthusiasts who wanted to chart a path for better roads in America and advocate for safe mobility, AAA has transformed into one of North America’s largest membership organizations. Today, AAA provides roadside assistance, travel, discounts, financial and insurance services to enhance the life journey of 62 million members across North America, including 56 million in the United States. To learn more about all AAA has to offer or to become a member, visit AAA.com

SOURCE The Hertz Corporation

Michael Gregory (Greg) O’Hara to Step Down; CEO Stephen Scherr Appointed Board Chair;
Fran Bermanzohn and Jeff Nedelman Join

ESTERO, Fla., Jan. 18, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) announced today certain changes to the composition of its Board of Directors, effective immediately.

Greg O’Hara, founder and Senior Managing Director of Certares and current Chair of the Hertz Board, is stepping down from the Board. Certares and Knighthead were the principals that led Hertz through reorganization. Thomas Wagner, Managing Partner of Knighthead, will remain on the Board as Vice Chair and Colin Farmer, Senior Managing Director at Certares, will continue to stand as Lead Director.

Stephen Scherr, Chief Executive Officer of Hertz, will assume the position of Board Chair. Along with this change, Fran Bermanzohn, former Deputy General Counsel at Goldman Sachs, and Jeffrey Nedelman, a Senior Managing Director at Certares, will join the Board as independent directors.

"It has been a pleasure serving on the Hertz Board for the last 18 months and supporting the company’s launch of its new strategic direction under Stephen’s leadership," said Mr. O’Hara. "The Certares and Knighthead teams invested in Hertz in 2021 because we saw Hertz’s unique position to capitalize on the changing mobility landscape. I have tremendous confidence in Stephen and the Board’s ability to provide the leadership necessary to realize our thesis."

"We have made considerable progress since I joined Hertz last February. With the talented leadership team now assembled, we are well-positioned to execute on our core priorities of shared mobility, electrification, and a digital-first customer experience," said Mr. Scherr. "I am honored to chair this highly qualified Board, and with the addition of Fran and Jeff, the Board is increasingly more independent and diverse in its composition."

The changes announced today increase the size of the Hertz Board of Directors to ten members and the number of independent directors to eight. A full list of Hertz’s Board members and their biographies can be found here: https://ir.hertz.com/about/board-of-directors.

ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

Media Contact:	Investor Contact:
Mickey Mandelbaum / John Perilli / Anne Hart	Johann Rawlinson
Prosek Partners for Hertz	johann.rawlinson@hertz.com
pro-hertz@prosek.com

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., Jan. 5, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its fourth quarter 2022 financial results at approximately 7:30 a.m. ET on Tuesday, February 7, 2023 followed by an earnings call at 8:30 a.m. ET.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://ir.hertz.com. To access the call by phone, please register through this link Q4 2022 earnings – phone link and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A web replay will remain available on the website for approximately one year.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., Dec. 8, 2022 /PRNewswire/ — Hertz Global Holdings Inc. (NASDAQ: HTZ) announced today that veteran marketing and sales executive Wayne Davis will join the company as Executive Vice President, Chief Marketing Officer (CMO), effective January 3, 2023. In this role, Davis will be responsible for leading the Hertz, Dollar and Thrifty brands and shaping the company’s marketing strategy to drive effective brand reach and customer engagement. Laura C. Smith, who has led marketing for the last two years, will continue in her role as Executive Vice President, Global Sales and Customer Experience.

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Davis joins Hertz with more than 20 years of marketing, sales, and business development experience across multiple industries. For the last four years, he has led the mass premium Café brand for GE Appliances, a Haier Company. Under his leadership, Café has more than tripled in size and is one of the fastest growing brands in the appliance industry.

"I am delighted to have Wayne join our leadership team at this exciting time for Hertz," said Hertz CEO Stephen Scherr. "Wayne’s brand-building experience and expertise in data-driven marketing analytics is a powerful combination, and I am excited about the vision he will bring to Hertz as we transform our business through electrification, shared mobility and a digital-first customer experience."

Prior to leading the Café brand, Davis was Senior Brand Director for Haier & Hotpoint at GE Appliances. Mr. Davis was also the commercial leader for GE Appliances’ FirstBuild innovation hub, where he led the successful launch of the Opal Nugget Ice Maker.

"Hertz is an iconic brand with unlimited potential," said Davis. "I’m excited to get started with a talented marketing team to bring even more breakthrough ideas to the marketplace and connect Hertz with our consumer, corporate and rideshare customers."

Mr. Davis serves on the boards of Big Brothers Big Sisters of Kentuckiana based in Louisville, Kentucky, Amplify Louisville and Fund for the Arts. In 2018 he was named in Louisville Business First’s Forty Under 40 and in 2020 was a member of Leadership Louisville’s Bingham Fellows. He holds a bachelor’s degree in mathematics from Morehouse College and an MBA from Xavier University.

About Hertz

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this release include "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "transform" or similar expressions. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors of Hertz’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the "SEC") on February 23, 2022 and any updates thereto in subsequent filings with the SEC including in Hertz’s Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Hertz undertakes no obligation to update this information.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., Dec. 5, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) today announced the settlement of 364 pending claims relating to vehicle theft reporting, bringing resolution to more than 95% of its pending theft reporting claims. The company will pay an aggregate amount of approximately $168 million by year-end to resolve these disputes. The company believes it will recover a meaningful portion of the settlement amount from its insurance carriers.

“As I have said since joining Hertz earlier this year, my intention is to lead a company that puts the customer first. In resolving these claims, we are holding ourselves to that objective,” said Stephen Scherr, CEO of Hertz. “While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year. Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience.”

Hertz does not expect the resolution of these claims to have a material impact on its capital allocation plans for the balance of 2022 and 2023.

About Hertz

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car sales. For more information about The Hertz Corporation, visit www.hertz.com.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws. Words such as “will,” “believe,” “intention,” “objective,” “continue,” “forward,” “future,” “expect” and similar expressions identify forward-looking statements, which include but are not limited to statements related to the timing and impact on Hertz of the settlement payments, the availability of insurance coverage, the effectiveness of Hertz’s policies relating to theft reporting, Hertz’s electrification and mobility strategies, and any other statements regarding future expectations, beliefs, plans, objectives, future events or performance. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including risks related to the settlement and insurance coverage, Hertz’s ability to expand its EV fleet, as well as other factors identified in this cautionary note and in the risk factors of Hertz’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2022 and any updates thereto in subsequent filings with the SEC including in Hertz’s Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Hertz undertakes no obligation to update this information.

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SOURCE Hertz Global Holdings, Inc.

"Hertz posted another quarter of solid performance, reflecting overall strength in our business and continued demand for our services across all customer segments," said Stephen Scherr, Hertz chief executive officer. "I am enormously proud of the performance of our team, particularly our colleagues in Southwest Florida, who faced challenges from Hurricane Ian. Across geographies, we focused on operational excellence and fleet optimization to produce financial results that facilitated investment in our strategic priorities, like electrification, while enhancing returns to our shareholders and being in the service of our customers."

ESTERO, Fla., Oct. 27, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its third quarter 2022.

HIGHLIGHTS

• Total revenues of $2.5 billion
• GAAP net income of $577 million, or $1.33 per diluted share
• Adjusted Net Income of $410 million, or $1.08 per adjusted diluted share (reflects adjustments for fair value remeasurements to outstanding public warrants and certain derivative contracts, among other items)
• Adjusted Corporate EBITDA of $618 million, a 25% margin
• Operating cash flow of $932 million, adjusted operating cash flow of $572 million
• Adjusted free cash flow of $505 million
• Corporate liquidity of $2.6 billion at September 30, including $1.0 billion in unrestricted cash
• Company utilized $500 million to repurchase 27.2 million common shares during the quarter

Revenue was $2.5 billion, up 12% year over year, characterized by continued strength in demand and rate across all customer segments, with significantly increased contribution of value-added services revenue. Monthly revenue per unit was a quarterly record of $1,685 on utilization of 80%. Gross depreciation continued to normalize as the Company progressed its fleet rejuvenation, and car sales gains came in lower versus the previous quarter due to steeper than expected residual value declines. As a result, monthly net depreciation per unit was $187.

During the first two months of the quarter, the Company ran with intentionally elevated maintenance cost to address out of service levels. As a result of these efforts, by September, utilization had reached 81.4%, and maintenance cost receded such that the business experienced more typical operating cost leverage. Adjusted Corporate EBITDA was $618 million, representing a healthy margin of 25%. Adjusted free cash flow was $505 million, reflecting free cash flow conversion of 82%, which the Company utilized to repurchase 7% of its common stock, thereby increasing shareholder value.

SUMMARY RESULTS

	Three Months Ended September 30,				Percent Inc/(Dec) 2022 vs 2021
($ in millions, except earnings per share or where noted)	2022		2021
Hertz Global – Consolidated
Total revenues	$ 2,496		$ 2,226		12 %
Adjusted net income (loss)(a)	$ 410		$ 587		(30) %
Adjusted diluted earnings (loss) per share(a)	$ 1.08		$ 1.20		(10) %
Adjusted Corporate EBITDA(a)	$ 618		$ 860		(28) %
Adjusted Corporate EBITDA Margin(a)	25 %		39 %
Average Vehicles (in whole units)	532,740		473,492		13 %
Average Rentable Vehicles (in whole units)	503,508		456,566		10 %
Vehicle Utilization	80 %		80 %
Transaction Days (in thousands)	37,123		33,489		11 %
Total RPD (in dollars)(b)	$ 68.57		$ 66.15		4 %
Total RPU Per Month (in whole dollars)(b)	$ 1,685		$ 1,617		4 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 187		$ 42		NM
Americas RAC Segment
Total revenues	$ 2,042		$ 1,914		7 %
Adjusted EBITDA	$ 564		$ 830		(32) %
Adjusted EBITDA Margin	28 %		43 %
Average Vehicles (in whole units)	425,596		387,368		10 %
Average Rentable Vehicles (in whole units)	397,488		372,326		7 %
Vehicle Utilization	81 %		81 %
Transaction Days (in thousands)	29,653		27,627		7 %
Total RPD (in dollars)(b)	$ 68.90		$ 69.25		(1) %
Total RPU Per Month (in whole dollars)(b)	$ 1,713		$ 1,713		— %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 198		$ 21		NM
International RAC Segment
Total revenues	$ 454		$ 312		46 %
Adjusted EBITDA	$ 150		$ 78		93 %
Adjusted EBITDA Margin	33 %		25 %
Average Vehicles (in whole units)	107,144		86,124		24 %
Average Rentable Vehicles (in whole units)	106,020		84,241		26 %
Vehicle Utilization	77 %		76 %
Transaction Days (in thousands)	7,470		5,862		27 %
Total RPD (in dollars)(b)	$ 67.28		$ 51.52		31 %
Total RPU Per Month (in whole dollars)(b)	$ 1,580		$ 1,195		32 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 146		$ 137		6 %

NM – Not meaningful

NOTE: Hertz Global – consolidated key metrics reflect global rental car operations only and exclude Donlen fleet management and leasing

(a) Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II.

(b) Based on December 31, 2021 foreign exchange rates.

LIQUIDITY AND CAPITAL RESOURCES

During the third quarter 2022, the Company repurchased 27.2 million shares for $500 million. There is $1.4 billion remaining under the authorization as of October 20, 2022.

The Company’s liquidity position was $2.6 billion at September 30, 2022, of which $1.0 billion was unrestricted cash.

EARNINGS WEBCAST INFORMATION

Hertz Global’s live webcast and conference call to discuss its third quarter 2022 results will be held on October 27, 2022, at 8:30 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://register.vevent.com/register/BI328b89926fc24e6ead04d3c0ec8db8b3, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS

Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its view of the usefulness of non-GAAP measures to investors and management.

In the first quarter of 2022, the Company began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. Prior periods have been restated to conform with the revisions, as appropriate. The Company has also restated historical quarterly and annual periods beginning with first quarter 2019 to reflect this change and has posted this information to its investor relations website at IR.Hertz.com.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.

Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:

• the length and severity of COVID-19 and the impact on the Company’s vehicle rental business as a result of travel restrictions and business closures or disruptions, as well as the impact on its employee retention and talent management strategies;
• the impact of macroeconomic conditions resulting in inflationary cost pressures, labor and supply chain constraints, increased vehicle acquisition costs, and reductions in travel demand, among others;
• the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost as a result of the continuing global semiconductor microchip manufacturing shortage (the "Chip Shortage") and other raw material supply constraints;
• the impact of the conflict between Russia and Ukraine on supply chains and raw materials for the automotive industry and uncertainty on overall consumer sentiment and travel demand, especially in Europe;
• the impact on the value of the Company’s non-program vehicles upon disposition when the Chip Shortage and other raw material supply constraints are alleviated;
• the Company’s ability to attract and retain key employees;
• levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
• significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
• occurrences that disrupt rental activity during the Company’s peak periods;
• the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
• the Company’s ability to implement our business strategy, including its ability to implement plans to support a large scale electric vehicle fleet and to play a central role in the modern mobility ecosystem;
• the Company’s ability to adequately respond to changes in technology, customer demands and market competition;
• the mix of program and non-program vehicles in the Company’s fleet can lead to increased exposure to residual risk;
• the Company’s ability to dispose of vehicles in the used-vehicle market and use the proceeds of such sales to acquire replacement vehicles;
• financial instability of the manufacturers of the Company’s vehicles, which could impact its ability to fulfill obligations under repurchase or guaranteed depreciation programs;
• an increase in the Company’s vehicle costs or disruption to its rental activity due to safety recalls by the manufacturers of its vehicles;
• the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes;
• the Company’s ability to offer an excellent customer experience, and retain and increase customer loyalty and market share;
• the Company’s ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally;
• the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
• major disruption in the Company’s communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
• the Company’s ability to prevent the misuse or theft of information it possesses, including as a result of cyber security breaches and other security threats, as well as its ability to comply with privacy regulations;
• risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
• the Company’s ability to utilize its net operating loss carryforwards;
• risks relating to tax laws and regulations, or changes in such laws and regulations, that affect the Company’s ability to deduct certain business interest expenses and offset previously-deferred tax gains, as well as any adverse determinations or rulings by tax authorities;
• changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect the Company’s operations, its costs or applicable tax rates;
• the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis;
• costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations; and
• the availability of additional or continued sources of financing for the Company’s revenue earning vehicles and to refinance its existing indebtedness.

Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

UNAUDITED FINANCIAL INFORMATION

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2022		2021		2022		2021
Revenues	$ 2,496		$ 2,226		$ 6,650		$ 5,387
Expenses:
Direct vehicle and operating	1,282		1,131		3,534		2,855
Depreciation of revenue earning vehicles and lease charges, net	294		61		341		420
Depreciation and amortization of non-vehicle assets	36		49		105		153
Selling, general and administrative	246		177		738		498
Interest expense, net:
Vehicle	27		41		77		243
Non-vehicle	43		22		123		157
Total interest expense, net	70		63		200		400
Other (income) expense, net	(6)		(7)		(6)		(20)
Reorganization items, net	—		—		—		677
(Gain) from the sale of a business	—		—		—		(400)
Change in fair value of Public Warrants	(73)		(16)		(584)		(16)
Total expenses	1,849		1,458		4,328		4,567
Income (loss) before income taxes	647		768		2,322		820
Income tax (provision) benefit	(70)		(160)		(379)		(193)
Net income (loss)	577		608		1,943		627
Net (income) loss attributable to noncontrolling interests	—		(3)		—		(1)
Net income (loss) attributable to Hertz Global	577		605		1,943		626
Dividends on Series A Preferred Stock	—		(34)		—		(34)
Net income (loss) available to Hertz Global common stockholders	$ 577		$ 571		$ 1,943		$ 592
Weighted average number of shares outstanding:
Basic	355		471		395		264
Diluted	379		490		421		270
Earnings (loss) per share:
Basic	$ 1.62		$ 1.21		$ 4.92		$ 2.25
Diluted	$ 1.33		$ 1.13		$ 3.22		$ 2.14

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions, except par value and share data)	September 30, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$ 1,006		$ 2,258
Restricted cash and cash equivalents:
Vehicle	203		77
Non-vehicle	299		316
Total restricted cash and cash equivalents	502		393
Total cash and cash equivalents and restricted cash and cash equivalents	1,508		2,651
Receivables:
Vehicle	222		62
Non-vehicle, net of allowance of $46 and $48, respectively	831		696
Total receivables, net	1,053		758
Prepaid expenses and other assets	934		1,017
Revenue earning vehicles:
Vehicles	13,757		10,836
Less: accumulated depreciation	(1,734)		(1,610)
Total revenue earning vehicles, net	12,023		9,226
Property and equipment, net	618		608
Operating lease right-of-use assets	1,632		1,566
Intangible assets, net	2,883		2,912
Goodwill	1,043		1,045
Total assets	$ 21,694		$ 19,783
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle	$ 112		$ 56
Non-vehicle	502		516
Total accounts payable	614		572
Accrued liabilities	955		863
Accrued taxes, net	205		157
Debt:
Vehicle	10,097		7,921
Non-vehicle	2,979		2,986
Total debt	13,076		10,907
Public Warrants	737		1,324
Operating lease liabilities	1,556		1,510
Self-insured liabilities	484		463
Deferred income taxes, net	1,306		1,010
Total liabilities	18,933		16,806
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 477,792,170 and 477,233,278 shares issued, respectively, and 341,223,449 and 449,782,424 shares outstanding, respectively	5		5
Treasury stock, at cost, 136,568,721 and 27,450,854 common shares, respectively	(2,821)		(708)
Additional paid-in capital	6,308		6,209
Retained earnings (Accumulated deficit)	(372)		(2,315)
Accumulated other comprehensive income (loss)	(359)		(214)
Total stockholders’ equity	2,761		2,977
Total liabilities and stockholders’ equity	$ 21,694		$ 19,783

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Cash flows from operating activities:
Net income (loss)	$ 577		$ 608		$ 1,943		$ 627
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles	366		86		511		506
Depreciation and amortization, non-vehicle	36		49		105		153
Amortization of deferred financing costs and debt discount (premium)	13		11		38		109
Loss on extinguishment of debt	—		—		—		8
Stock-based compensation charges	32		—		96		2
Provision for receivables allowance	19		31		42		95
Deferred income taxes, net	52		141		301		125
Reorganization items, net	—		—		—		314
(Gain) loss from the sale of a business	—		—		—		(400)
Change in fair value of Public Warrants	(73)		(16)		(584)		(16)
(Gain) loss on financial instruments	(55)		(3)		(120)		(1)
Other	1		(5)		(2)		(15)
Changes in assets and liabilities:
Non-vehicle receivables	(34)		(9)		(234)		(223)
Prepaid expenses and other assets	7		14		(80)		(53)
Operating lease right-of-use assets	123		49		202		203
Non-vehicle accounts payable	25		(139)		(7)		(45)
Accrued liabilities	(50)		(32)		183		(43)
Accrued taxes, net	—		(2)		52		89
Operating lease liabilities	(130)		(54)		(223)		(214)
Self-insured liabilities	23		14		38		(13)
Net cash provided by (used in) operating activities	932		743		2,261		1,208
Cash flows from investing activities:
Revenue earning vehicles expenditures	(1,764)		(1,060)		(7,853)		(5,196)
Proceeds from disposal of revenue earning vehicles	1,583		746		4,470		1,945
Non-vehicle capital asset expenditures	(45)		(24)		(104)		(41)
Proceeds from non-vehicle capital assets disposed of or to be disposed of	4		7		10		17
Collateral payments	—		—		—		(303)
Collateral returned in exchange for letters of credit	—		154		19		268
Return of (investment in) equity investments	—		—		(15)		—
Proceeds from the sale of a business, net of cash sold	—		53		—		871
Other	—		—		—		(1)
Net cash provided by (used in) investing activities	(222)		(124)		(3,473)		(2,440)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	903		1,523		8,282		10,462
Repayments of vehicle debt	(1,130)		(1,343)		(5,954)		(9,463)
Proceeds from issuance of non-vehicle debt	—		—		—		3,139
Repayments of non-vehicle debt	(4)		(5)		(14)		(6,346)
Payment of financing costs	(4)		(3)		(42)		(154)
Proceeds from Plan Sponsors	—		—		—		2,781
Proceeds from Rights Offering, net	—		4		—		1,639
Proceeds from the issuance of preferred stock, net	—		—		—		1,433
Distributions to common stockholders	—		—		—		(239)
Proceeds from exercises of Public Warrants	—		—		3		—
Share repurchases	(505)		—		(2,152)		—
Early redemption payments	—		—		—		(85)
Contributions from (distributions to) noncontrolling interests	—		(10)		—		(25)
Other	—		—		(4)		—
Net cash provided by (used in) financing activities	(740)		166		119		3,142
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(25)		(14)		(50)		(22)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	(55)		771		(1,143)		1,888
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period(a)	1,563		2,695		2,651		1,578
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$ 1,508		$ 3,466		$ 1,508		$ 3,466

(a) Amounts include cash and cash equivalents and restricted cash and cash equivalents of Donlen which were held for sale as of December 31, 2020.

Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Three Months Ended September 30, 2022								Three Months Ended September 30, 2021
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		All other operations		Corporate		Hertz Global
Revenues	$ 2,042		$ 454		$ —		$ 2,496		$ 1,914		$ 312		$ —		$ —		$ 2,226
Expenses:
Direct vehicle and operating	1,077		206		(1)		1,282		960		173		—		(2)		1,131
Depreciation of revenue earning vehicles and lease charges, net	252		42		—		294		24		37		—		—		61
Depreciation and amortization of non-vehicle assets	29		3		4		36		42		3		—		4		49
Selling, general and administrative	85		53		108		246		72		27		—		78		177
Interest expense, net:
Vehicle	31		(4)		—		27		33		8		—		—		41
Non-vehicle	(23)		1		65		43		(4)		2		—		24		22
Total interest expense, net	8		(3)		65		70		29		10		—		24		63
Other (income) expense, net	(1)		4		(9)		(6)		(2)		(1)		—		(4)		(7)
Reorganization items, net	—		—		—		—		—		—		—		—		—
(Gain) from the sale of a business	—		—		—		—		—		—		—		—		—
Change in fair value of Public Warrants	—		—		(73)		(73)		—		—		—		(16)		(16)
Total expenses	1,450		305		94		1,849		1,125		249		—		84		1,458
Income (loss) before income taxes	$ 592		$ 149		$ (94)		647		$ 789		$ 63		$ —		$ (84)		768
Income tax (provision) benefit							(70)										(160)
Net income (loss)							577										608
Net (income) loss attributable to noncontrolling interests							—										(3)
Net income (loss) attributable to Hertz Global							577										605
Series A Preferred Stock deemed dividends							—										(34)
Net income (loss) attributable to Hertz Global common stockholders							$ 577										$ 571

NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company’s Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Nine Months Ended September 30, 2022								Nine Months Ended September 30, 2021
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		All other operations		Corporate		Hertz Global
Revenues	$ 5,573		$ 1,077		$ —		$ 6,650		$ 4,524		$ 727		$ 136		$ —		$ 5,387
Expenses:
Direct vehicle and operating	2,982		554		(2)		3,534		2,394		452		5		4		2,855
Depreciation of revenue earning vehicles and lease charges	220		121		—		341		314		106		—		—		420
Depreciation and amortization of non-vehicle assets	85		10		10		105		130		12		2		9		153
Selling, general and administrative	270		142		326		738		191		97		10		200		498
Interest expense, net:
Vehicle	68		9		—		77		182		49		12		—		243
Non-vehicle	(44)		1		166		123		(9)		3		1		162		157
Total interest expense, net	24		10		166		200		173		52		13		162		400
Other (income) expense, net	(3)		(3)		—		(6)		(8)		(2)		—		(10)		(20)
Reorganization items, net	—		—		—		—		80		12		(1)		586		677
(Gain) from the sale of a business	—		—		—		—		—		—		—		(400)		(400)
Change in fair value of Public Warrants	—		—		(584)		(584)		—		—		—		(16)		(16)
Total expenses	3,578		834		(84)		4,328		3,274		729		29		535		4,567
Income (loss) before income taxes	$ 1,995		$ 243		$ 84		2,322		$ 1,250		$ (2)		$ 107		$ (535)		820
Income tax (provision) benefit							(379)										(193)
Net income (loss)							1,943										627
Net (income) loss attributable to noncontrolling interests							—										(1)
Net income (loss) attributable to Hertz Global							1,943										626
Series A Preferred Stock deemed dividends							—										(34)
Net income (loss) attributable to Hertz Global common stockholders							$ 1,943										$ 592

NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company’s Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.

Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2022		2021		2022		2021
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global	$ 577		$ 605		$ 1,943		$ 626
Dividends on Series A Preferred Stock	—		(34)		—		(34)
Net income (loss) attributable and available to Hertz Global common stockholders, basic	577		571		1,943		592
Adjustments:
Income tax provision (benefit)	70		160		379		193
Vehicle and non-vehicle debt-related charges(a)(m)	13		12		39		116
Restructuring and restructuring related charges(b)	8		22		29		72
Acquisition accounting-related depreciation and amortization(c)	1		12		2		37
Reorganization items, net(d)	—		—		—		677
Pre-reorganization and non-debtor financing charges(e)	—		1		—		41
Gain from the Donlen Sale(f)	—		—		—		(400)
Unrealized (gains) losses on financial instruments(g)	(55)		(1)		(120)		(1)
Change in fair value of Public Warrants	(73)		(16)		(584)		(16)
Other items(h)(n)	6		11		89		(67)
Adjusted pre-tax income (loss)(i)	547		772		1,777		1,244
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)	(137)		(185)		(444)		(299)
Adjusted Net Income (Loss)	$ 410		$ 587		$ 1,333		$ 945
Weighted-average number of diluted shares outstanding	379		490		421		270
Adjusted Diluted Earnings (Loss) Per Share(k)	$ 1.08		$ 1.20		$ 3.16		$ 3.50
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	$ 577		$ 605		$ 1,943		$ 626
Adjustments:
Income tax provision (benefit)	70		160		379		193
Non-vehicle depreciation and amortization(l)	36		49		105		153
Non-vehicle debt interest, net	43		22		123		157
Vehicle debt-related charges(a)(m)	9		8		25		62
Restructuring and restructuring related charges(b)	8		22		29		72
Reorganization items, net(d)	—		—		—		677
Pre-reorganization and non-debtor financing charges(e)	—		1		—		41
Gain from the Donlen Sale(f)	—		—		—		(400)
Unrealized (gains) losses on financial instruments(g)	(55)		(1)		(120)		(1)
Change in fair value of Public Warrants	(73)		(16)		(584)		(16)
Other items(h)(o)	3		10		96		(62)
Adjusted Corporate EBITDA	$ 618		$ 860		$ 1,996		$ 1,502

Supplemental Schedule II (continued)
(a)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)	Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For the three and nine months ended September 30, 2022, charges incurred related primarily to International RAC. For the three months ended September 30, 2021, charges incurred were $15 million and $7 million for Corporate and International RAC, respectively. For the nine months ended September 30, 2021, charges incurred were $41 million, $23 million and $8 million for Corporate, International RAC and Americas RAC, respectively.
(c)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(d)	Represents charges incurred associated with the Reorganization and emergence from Chapter 11. The charges relate primarily to Corporate.

(in millions)	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Professional fees and other bankruptcy related costs	$ —		$ 257
Loss on extinguishment of debt	—		191
Backstop fee	—		164
Breakup fee	—		77
Contract settlements	—		25
Cancellation of share-based compensation grants	—		(10)
Net gain on settlement of liabilities subject to compromise	—		(22)
Other, net	—		(5)
Reorganization items, net	$ —		$ 677

(e)	Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. The amounts incurred for Corporate were $1 million for the three months ended September 30, 2021, respectively. For Corporate, Americas RAC, International RAC, and All other operations were $17 million, $17 million, $5 million and $2 million for the nine months ended September 30, 2021, respectively.
(f)	Represents the gain from the sale of the Company’s Donlen business on March 30, 2021, primarily associated with Corporate.
(g)	Represents unrealized gains (losses) on derivative financial instruments, primarily associated with Americas RAC.
(h)	Represents miscellaneous items. For 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims. For 2021, includes $100 million due to the suspension of depreciation in the first half of the year for the Donlen leasing and fleet management operations while classified as held for sale in all other operations, partially offset by letter of credit fees recorded in the first half of the year in Corporate and charges for a multiemployer pension plan withdrawal liability recorded in the first quarter in Corporate.

Supplemental Schedule II (continued)
(i) Adjustments by caption on a pre-tax basis were as follows:
Increase (decrease) to expenses	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Direct vehicle and operating	$ 1		$ (14)		$ (49)		$ 45
Selling, general and administrative	(13)		(22)		(63)		(91)
Interest expense, net:
Vehicle	42		(8)		93		(81)
Non-vehicle	(5)		(4)		(21)		(54)
Total interest expense, net	37		(12)		72		(135)
Other income (expense), net	2		(9)		1		(17)
Reorganization items, net	—		—		—		(677)
Gain from the Donlen Sale	—		—		—		400
Change in fair value of Public Warrants	73		16		584		16
Total adjustments	$ 100		$ (41)		$ 545		$ (459)

(j)	Derived utilizing a combined statutory rate of 25% and 24% for the three and nine months ended September 30, 2022 and 2021, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(k)	Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(l)	Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended September 30, 2022 was $29 million, $3 million and $4 million, respectively. For the three months ended September 30, 2021 was $42 million, $3 million, and $4 million for Americas RAC, International RAC and Corporate, respectively. Non-vehicle depreciation and amortization for Americas RAC, International RAC and Corporate for the nine months ended September 30, 2022 were $85 million, $10 million and $10 million, respectively. For the nine months ended September 30, 2021 were $130 million, $12 million, $2 million and $9 million, respectively, for Americas RAC, International RAC, All other operations and Corporate.
(m)	Vehicle debt-related charges for Americas RAC and International RAC for the three months ended September 30, 2022 were $8 million and $1 million, respectively, and were $6 million and $2 million, respectively, for the three months ended September 30, 2021. Vehicle debt-related charges for Americas RAC and International RAC for the nine months ended September 30, 2022 were $17 million and $8 million, respectively. For the nine months ended September 30, 2021, vehicle debt-related charges for Americas RAC, International RAC and All other operations were $48 million, $12 million and $2 million, respectively.
(n)	In 2022, includes letter of credit fees recorded in Corporate.
(o)	In 2022, includes an adjustment for certain non-cash stock-based compensation charges recorded in Corporate.

Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities	$ 932		$ 743		$ 2,261		$ 1,208
Depreciation and reserves for revenue earning vehicles	(366)		(86)		(511)		(506)
Bankruptcy related payments – post emergence	6		—		84		—
Adjusted operating cash flow	572		657		1,834		702
Non-vehicle capital asset expenditures, net	(41)		(17)		(94)		(24)
Adjusted operating cash flow before vehicle investment	531		640		1,740		678
Net fleet growth after financing	(26)		(121)		(672)		(1,948)
Noncontrolling interests	—		(18)		—		(25)
Adjusted free cash flow	$ 505		$ 501		$ 1,068		$ (1,295)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures	$ (1,764)		$ (1,060)		$ (7,853)		$ (5,196)
Proceeds from disposal of revenue earning vehicles	1,583		746		4,470		1,945
Revenue earning vehicles capital expenditures, net	(181)		(314)		(3,383)		(3,251)
Depreciation and reserves for revenue earning vehicles	366		86		511		506
Financing activity related to vehicles:
Borrowings	903		1,523		8,282		$ 10,462
Payments	(1,130)		(1,343)		(5,954)		$ (9,463)
Restricted cash changes, vehicle(a)	16		(73)		(128)		$ (202)
Net financing activity related to vehicles	(211)		107		2,200		797
Net fleet growth after financing	$ (26)		$ (121)		$ (672)		$ (1,948)

(a)	Amount presented for the nine months ended September 30, 2021 excludes a $1 million non-cash impact of foreign currency exchange rates.

Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
	As of September 30, 2022						As of December 31, 2021
(In millions)	Vehicle		Non-Vehicle		Total		Vehicle		Non-Vehicle		Total
Term loans	$ —		$ 1,529		$ 1,529		$ —		$ 1,539		$ 1,539
Senior notes	—		1,500		1,500		—		1,500		1,500
U.S. vehicle financing (HVF III)	8,865		—		8,865		7,001		—		7,001
International vehicle financing (Various)	1,228		—		1,228		860		—		860
Other debt	72		12		84		93		16		109
Debt issue costs, discounts and premiums	(68)		(62)		(130)		(33)		(69)		(102)
Debt as reported in the balance sheet	10,097		2,979		13,076		7,921		2,986		10,907
Add:
Debt issue costs, discounts and premiums	68		62		130		33		69		102
Less:
Cash and cash equivalents	—		1,006		1,006		—		2,258		2,258
Restricted cash	203		—		203		77		—		77
Restricted cash and restricted cash equivalents associated with Term C Loan	—		245		245		—		245		245
Net Debt	$ 9,962		$ 1,790		$ 11,752		$ 7,877		$ 552		$ 8,429
Corporate leverage ratio(a)			0.7x						0.3x

(a)	Corporate leverage ratio is calculated as non-vehicle net debt divided by LTM Adjusted Corporate EBITDA.

Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Global RAC
	Three Months Ended September 30,				Percent Inc/(Dec)		Nine Months Ended September 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 2,496		$ 2,226				$ 6,650		$ 5,251
Foreign currency adjustment(a)	50		(11)				70		(34)
Total Revenues – adjusted for foreign currency	$ 2,546		$ 2,215				$ 6,720		$ 5,217
Transaction Days (in thousands)	37,123		33,489				103,188		88,023
Total RPD (in dollars)(b)	$ 68.57		$ 66.15		4 %		$ 65.12		$ 59.27		10 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 2,546		$ 2,215				$ 6,720		$ 5,217
Average Rentable Vehicles (in whole units)(c)	503,508		456,566				483,083		410,662
Total revenue per unit (in whole dollars)	$ 5,056		$ 4,852				$ 13,911		$ 12,704
Number of months in period (in whole units)	3		3				9		9
Total RPU Per Month (in whole dollars)(b)(c)	$ 1,685		$ 1,617		4 %		$ 1,546		$ 1,412		9 %
Vehicle Utilization
Transaction Days (in thousands)	37,123		33,489				103,188		88,023
Average Rentable Vehicles (in whole units)(c)	503,508		456,566				483,083		410,662
Number of days in period (in whole units)	92		92				273		273
Available Car Days (in thousands)	46,339		42,010				131,955		112,226
Vehicle Utilization(c)(d)	80 %		80 %				78 %		78 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 294		$ 61				$ 341		$ 420
Foreign currency adjustment(a)	5		(1)				7		(4)
Adjusted depreciation of revenue earning vehicles and lease charges	$ 299		$ 60				$ 348		$ 416
Average Vehicles (in whole units)	532,740		473,492				509,086		420,753
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 561		$ 126				$ 683		$ 989
Number of months in period (in whole units)	3		3				9		9
Depreciation Per Unit Per Month (in whole dollars)	$ 187		$ 42		NM		$ 76		$ 110		(30) %

Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate and the Company’s former Donlen leasing operations which were sold on March 30, 2021.
NM – Not meaningful
(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
	Three Months Ended September 30,				Percent Inc/(Dec)		Nine Months Ended September 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 2,042		$ 1,914				$ 5,573		$ 4,524
Foreign currency adjustment(a)	1		(1)				1		(2)
Total Revenues – adjusted for foreign currency	$ 2,043		$ 1,913				$ 5,574		$ 4,522
Transaction Days (in thousands)	29,653		27,627				84,392		72,870
Total RPD (in dollars)(b)	$ 68.90		$ 69.25		(1) %		$ 66.05		$ 62.06		6 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 2,043		$ 1,913				$ 5,574		$ 4,522
Average Rentable Vehicles (in whole units)(c)	397,488		372,326				390,071		337,597
Total revenue per unit (in whole dollars)	$ 5,140		$ 5,138				$ 14,289		$ 13,395
Number of months in period (in whole units)	3		3				9		9
Total RPU Per Month (in whole dollars)(b)(c)	$ 1,713		$ 1,713		— %		$ 1,588		$ 1,488		7 %
Vehicle Utilization
Transaction Days (in thousands)	29,653		27,627				84,392		72,870
Average Rentable Vehicles (in whole units)(c)	397,488		372,326				390,071		337,597
Number of days in period (in whole units)	92		92				273		273
Available Car Days (in thousands)	36,585		34,261				106,538		92,261
Vehicle Utilization(c)(d)	81 %		81 %				79 %		79 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 252		$ 24				$ 220		$ 314
Foreign currency adjustment(a)	—		—				—		1
Adjusted depreciation of revenue earning vehicles and lease charges	$ 252		$ 24				$ 220		$ 315
Average Vehicles (in whole units)	425,596		387,368				415,110		346,032
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 593		$ 62				$ 529		$ 910
Number of months in period (in whole units)	3		3				9		9
Depreciation Per Unit Per Month (in whole dollars)	$ 198		$ 21		NM		$ 59		$ 101		(41) %

NM – Not meaningful
(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
	Three Months Ended September 30,				Percent Inc/(Dec)		Nine Months Ended September 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2022		2021				2022		2021
Total RPD
Revenues	$ 454		$ 312				$ 1,077		$ 727
Foreign currency adjustment(a)	49		(10)				69		(32)
Total Revenues – adjusted for foreign currency	$ 503		$ 302				$ 1,146		$ 695
Transaction Days (in thousands)	7,470		5,862				18,796		15,153
Total RPD (in dollars)(b)	$ 67.28		$ 51.52		31 %		$ 60.98		$ 45.87		33 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 503		$ 302				$ 1,146		$ 695
Average Rentable Vehicles (in whole units)(c)	106,020		84,241				93,012		73,066
Total revenue per unit (in whole dollars)	$ 4,740		$ 3,585				$ 12,323		$ 9,513
Number of months in period (in whole units)	3		3				9		9
Total RPU Per Month (in whole dollars)(b)(c)	$ 1,580		$ 1,195		32 %		$ 1,369		$ 1,057		30 %
Vehicle Utilization
Transaction Days (in thousands)	7,470		5,862				18,796		15,153
Average Rentable Vehicles (in whole units)(c)	106,020		84,241				93,012		73,066
Number of days in period (in whole units)	92		92				273		273
Available Car Days (in thousands)	9,754		7,749				25,417		19,965
Vehicle Utilization(c)(d)	77 %		76 %				74 %		76 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 42		$ 37				$ 121		$ 106
Foreign currency adjustment(a)	5		(1)				7		(5)
Adjusted depreciation of revenue earning vehicles and lease charges	$ 47		$ 36				$ 128		$ 101
Average Vehicles (in whole units)	107,144		86,124				93,976		74,721
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 437		$ 412				$ 1,366		$ 1,351
Number of months in period (in whole units)	3		3				9		9
Depreciation Per Unit Per Month (in whole dollars)	$ 146		$ 137		6 %		$ 152		$ 150		1 %

(a)	Based on December 31, 2021 foreign exchange rates.
(b)	Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)	Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)	Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS
The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.

Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.

Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items.

Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.

Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted operating cash flow and adjusted free cash flow

Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is important to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.

Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is important to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.

KEY METRICS

Available Car Days

Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")

Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPD to include ancillary retail vehicle sales revenues to better align with current industry practice. Prior periods shown have been restated to conform with the revised definition.

Total Revenue Per Unit Per Month ("Total RPU" or "Total RPU Per Month")

Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPU to include ancillary retail vehicle sales revenues to better align with current industry practice. Also, historically, the company used Average Vehicles as the denominator to calculate Total RPU and effective in the first quarter of 2022, the Company revised the calculation to use Average Rentable Vehicles. Prior periods shown have been restated to conform with the revised definition.

Transaction Days ("Days"; also referred to as "volume")

Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.

Vehicle Utilization ("Utilization")

Effective in the first quarter of 2022, in connection with the appointment of the new CEO (who serves as our Chief Operating Decision Maker) and arising from significantly increased activity in vehicle dispositions, we began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. We believe this is a better measure of the productivity of our rental fleet as it is unaffected by fluctuations in disposition activity. Prior periods have been restated to conform with the revisions, as appropriate.

SOURCE Hertz Global Holdings, Inc.