A Message
From Our CEO

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Dear Ryder Shareholder:

Thank you for investing in Ryder during what was another year of record performance for our company. We’re making meaningful progress on our strategic priorities and growing the business. We grew operating revenue by 5% and comparable earnings per share by 14%, achieving new record levels. We closed the year with strong results in Fleet Management Solutions, especially in our core lease and rental product lines. We continued to sign more customers for our new on-demand maintenance product which is already in place with 30 large fleets, in advance of our broader rollout planned for mid-2015. We were also encouraged that our Supply Chain Solutions business demonstrated revenue growth throughout the year and returned to earnings growth in the fourth quarter following some challenges earlier in the year.

The strong sales activity we generated through the end of 2014 helped Ryder enter 2015 with strong momentum to further accelerate growth. We continue to benefit from improving economic conditions in North America, which is our primary market. We’re also making meaningful progress on our strategy to penetrate non-outsourced transportation and logistics markets, supported by ongoing macro-trends that favor outsourcing. Our team is well positioned to deliver profitable growth, and we are deploying capital effectively with widening returns, to drive revenue to new heights.

A Business Built on Trust

Our entire business is built around our demonstrated ability to deliver on what we promise to our customers. We feel the same way about our commitment to you, our investors. We’re proud that our results and the trust we’ve earned helped Ryder deliver a 30% increase in total shareholder returns for 2014, more than double the growth of 14% for the S&P 500 over the same period. In last year’s letter to shareholders we outlined six deliverables that we were focused on for 2014. Here is a point-by-point review of those six objectives with an assessment of how we performed:

  1. Accelerate revenue growth – Operating revenue growth accelerated from 4% in 2013 to 5%, reaching a record level for 2014.
  2. Grow revenue in all product lines – Fleet Management Solutions operating revenue grew 6% and Supply Chain Solutions operating revenue increased 5% for the year.
  3. Continue to grow the full service lease fleet – We grew our lease fleet by 3,200 vehicles, exceeding our target of 2,000 vehicles, and reaching the highest growth rate our largest product line has achieved in more than a decade. This represents the third consecutive year of organic lease fleet growth.

For 2015, we expect to again deliver record results with increasing revenue growth and double-digit earnings improvement.

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  1. Achieve double-digit earnings growth – We grew comparable earnings from continuing operations by 16% in 2014, reflecting the operating performance of the company.
  2. Deliver record earnings per share – We increased comparable earnings per share from continuing operations to a record $5.58, up from $4.88 in 2013.
  3. Make strategic investments to drive growth – We invested in new technologies, product development, and increased sales and marketing, including the launch of “That’s Ryder” — our first major advertising campaign in two decades. We also invested nearly $2.3 billion mainly to refresh and grow our vehicle fleet, as well as to enhance our customers’ experience through upgraded technologies and operating facilities.

In other areas, our transactional rental and used vehicle sales businesses delivered strong returns throughout the year. This helped us deliver Fleet Management Solutions pre-tax margins of 12%, which were the highest in six years.

We’re making important advances on our strategy to penetrate the large “do-it-yourself” transportation and logistics markets. Ryder’s proactive efforts in new product development, and sales and marketing, were also supported by secular trends that favor outsourcing. These factors combined to drive strong sales activity through the end of the year and have helped us enter 2015 well positioned for growth.

Launching Ryder's first major advertising campaign in 20 years: Ryder Chairman and CEO Robert Sanchez, members of senior management, and winners of the company's Driver of the Year and Top Technician competitions, ring the closing bell of the NYSE.

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Strategically Focused in 2015

We remain committed to advancing the five strategic priorities that have helped fuel our recent progress, and are focused on the following initiatives in 2015:

  1. Attracting the Best People in the Industry
    • Increase employee recruiting and retention effectiveness to create a competitive advantage, with emphasis on key in-demand positions such as drivers and technicians.
    • Engage and develop employees with a focus on Ryder’s core values of Trust, Expertise, Collaboration, Innovation, and Safety.
  2. Delivering on the Promise to Our Customers
    • Fleet Management Solutions – Drive fleet uptime while increasing productivity in our maintenance operations.
    • Supply Chain Solutions – Leverage LEAN expertise within our operations to enhance Ryder’s reputation for “Best Execution.”
    • Ryder Dedicated – Heighten customer satisfaction by further improving our strong on-time delivery performance.
  3. Innovating with New Solutions
    • Expand rollout of products such as on-demand maintenance and natural gas vehicles, and develop other new Fleet Management Solutions products.

    • Continue to implement strategic initiatives targeting each of our Supply Chain Solutions industry verticals, including new segments such as Healthcare, and Oil & Gas within our Ryder Dedicated business.
  4. Developing the Best Technology in the Industry
    • Continue to develop and rollout customer support technologies that increase their ability to control and operate their businesses with more precision, efficiency, and flexibility.
  5. Growing Our Business
    • Achieve record sales in each of our business segments, FMS, SCS, and Dedicated.
    • Increase results from collaborative selling efforts between and across our business segments.
    • Leverage our new marketing capabilities to accelerate growth in our full service lease fleet and drive growth across all product lines.

Looking Ahead

For 2015, we expect to again deliver record results with increasing revenue growth and double-digit earnings improvement. We anticipate strong performance in our Fleet Management Solutions business with an accelerating organic growth rate in our full service lease fleet. We expect our Ryder Dedicated business to realize significant revenue and earnings growth and Supply Chain Solutions earnings performance to recover nicely in 2015.

We’re also making significant growth investments and taking new steps to accelerate progress toward our longer-term goal of high single-digit revenue growth across all of our businesses.

In closing, I want to again thank you for investing in Ryder’s business and allowing our team to continue the exciting work of growing and improving the performance of our great company. On behalf of our more than 30,000 employees, we thank you and look forward to sharing the rewards of our progress with you on the road ahead.

Sincerely,

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Robert Sanchez
Chairman and CEO

This letter includes the following non-GAAP financial metrics: Operating revenue, segment operating revenue, comparable earnings from continuing operations, and comparable earnings per share. For a reconciliation of these non-GAAP financial measures, click here to access our “Non-GAAP Reconciliation” presentation.

Contact Investor Relations

Bob Brunn
Vice President
Corporate Strategy & Investor Relations
1-305-500-4210
RyderForInvestors@ryder.com
Calene Candela
Group Director
Investor Relations
1-305-500-4764
Ryder Corporate Headquarters
11690 NW 105th Street
Miami, Florida 33178