Welcome to Hertz Global Holdings Third Quarter 2021 Earnings Commentary. I will now like to turn it over to our host Johann Rawlinson.

Hi, everyone, and thank you for joining us. I am Johann Rawlinson, Vice President of Investor Relations for Hertz, and I'm joined by Mark Fields, our Interim CEO and Kenny Cheung, our CFO. We hope, you had an opportunity to review the press release that we issued that contains our third quarter 2021 earnings results, along with the slides to accompany our prepared remarks, both of which can be found on our Investor Relations website on hertz.com. On this call, Mark will provide insight on Hertz’s strategic vision, and also share some highlights of our results. Kenny will then take you through the drivers of our third quarter financial results and key operational metrics, followed by an overview of our guidance for full year 2021. Our remarks will focus on Hertz Global Holdings, Inc. which we refer to as Hertz, our publicly traded company. Differences in the financial results for the Hertz Corporation are disclosed in our press release. Some of the matters that we will discuss contain forward-looking information, including potential future financial performance, which is subject to risks, uncertainties, and assumptions that could cause actual results to materially differ from such forward-looking statements and information. These risks and assumptions, uncertainties and other factors are identified in our press release and our third quarter 2021 Form 10-Q and our Form 10-K filed with the SEC in February, 2021, as well as in other periodic filings with the SEC and on our Investor Relations section on hertz.com. Any forward-looking information relayed on this call speaks only as of this date, and the company undertakes no obligation to update that information to reflect changed circumstances. During this call, we'll use non-GAAP financial measures, which are reconciled with GAAP numbers in our press release. All comparisons will be against 2019 because we believe it provides a more relevant benchmark given the unusual impact of COVID-19 on our business in 2020. For comparisons with our 2020 results, please refer to our 10-Q. Comparisons will also exclude the effects of the Donlen fleet leasing and management business, we sold in March of the year. With that, I'd like to hand it over to Mark Fields.

Thanks, Johann and thanks everybody for joining us. I'd like to begin by saying I'm absolutely thrilled to be taking the helm of the new Hertz and working with our team as we chart a dynamic new course for the future of travel, mobility and the auto industry. Now having spent a large part of my career in the automotive space, I'm intimately aware of how significantly the transportation sector has evolved during the last decade. With increasing consumer focus on connected cars, electric vehicles, and autonomous driving, there's a growing opportunity for Hertz to be a leader in the mobility ecosystem. We're building on our brand strength and global fleet management expertise and combining it with new investments in technology, electrification, shared mobility and a digital-first customer experience. My goal as interim CEO is to ensure we have the right resources, the right strategy, and our executing on the right plan to position this company for success. In the near term, I'm focusing the organization on five key priorities; firstly, excellence in executing the fundamentals, second, a customer first mentality, third, innovating relentlessly, fourth, leading in the adoption of electric vehicles, and fifth, investing in our future. These priorities will be weaved into everything we do and guide our go forward strategy. Since completing our restructuring in June, Hertz has established a strong operational foundation. Thanks to the hard work of the entire Hertz team. We have significantly strengthened our car rental business with over $95 of structural improvement in monthly revenue per unit, which we expect to continue into the future and over $300 million in annual structural cost reductions. This has contributed to a record quarterly adjusted corporate EBITDA of $860 million in the third quarter. Now what's clear is that Hertz is a better optimized and…

Thank you, Mark. Let me start by echoing Mark's enthusiasm. This really is an exciting time at Hertz, and I am so proud of how our team has to continue to deliver for our stakeholders. Continuing our trend from last quarter, we experienced top line growth combined with the impact of lower fleet cost and structural cost reduction. As Mark mentioned, this resulted in record quarterly adjusted corporate EBITDA of $860 million and margin of 39%. We continue to narrow the gap on volume declines in both the Americas and international segments with no meaningful incremental impact resulting from the Delta variant. Volume has the returned to 2019 levels, but structural improvements and market dynamics drove pricing higher, which helped mitigate the impact to revenue. A core element of our strategy is to optimize our market segments and network distribution, to drive business improvement, which results in higher yields. Our total RPU for Q3 increased by 35% driven by various factors, examples of these are corporate contract changes, segment mix optimization and furthering the sale of ancillary products. Slide 10 reflects the business improvement contributed $95 of the increase in total RPU for the quarter. The remainder of the increase is market driven. As I mentioned last quarter, we are managing our fleet capacity with the rigor and discipline, keeping our fleet tight at a level that is slightly below expected demand, which will maximize yield. Although, we are in fleeting new vehicles each month, we are not seeing the level of supply required to fully replenish and rotate the fleet. We are supplementing the fleet of high condition, low mileage vehicles, and expect this will continue. Despite new vehicle supply constraints, we are deliberately focused on rotating out order fleets, which reduces maintenance expense. As reflected in our press…

Thank you, Kenny. I hope from today's discussion, it's clear that Hertz is making great strides and that we're well positioned for future profitable growth. We have established strong momentum since our restructuring, successfully executing on the fundamentals and forging strong partnerships with mobility leaders. The new Hertz is poised to play a central role in the evolution of modern mobility leading the electric vehicle transition and creating a digital first experience for business and leisure travelers around the world. I'm very excited to be part of Hertz at such a pivotal time for an iconic brand like ours. Our teams around the world are energized about our path forward and together we look forward to capitalizing on the significant opportunities ahead. Thank you for listening.

This concludes the Hertz Global Holdings third quarter 2021 earnings commentary.