FAMILY BUSINESS INVITATIONAL CONFERENCE:

SUCCESS AND CONTINUITY

Our Three-Generation Experience Enterprise Holdings Andy Taylor Chairman & Chief Executive Officer Enterprise Holdings

© 2012 Northern Trust Corporation

northerntrust.com

Agenda

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Introduction

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The Journey: A defining moment

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The Balance

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Recruiting and developing great people

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Family and business governance and succession



Some reasons for success

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Become Enterprise branded in Feb. 2013

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Key Statistics 

Family Owned & Operated: Ranked #15 on Forbes Top 500 Private Companies in America

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Operate largest fleet of passenger vehicles in world 

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Largest buyer/seller of vehicles

Alamo, Enterprise and National brands 

More than 1 million transactions per week



Operating in nearly 40 countries

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$15.5 billion revenue

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Largest recruiter of college graduates in U.S.

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More than 7,400 locations

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Enterprise Holdings: Consolidated Revenue

Fiscal Year 1982 - 2012 16000 14000 12000 10000 8000

The Journey Begins 6000 4000 2000 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 5

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Global Rental Market: $42.5B

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Global Market Shares

*All others include franchisees of global brands, regional companies and independent operators 7

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

US Car Rental Market: Revenue

2011

1991 Airport $8.0 Home City $2.7

Home City $9.9

Airport $12.5

$11 billion $22.4 billion Source: Auto Rental News 2011 Fact Book 8

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

US Car Rental Market: Revenue

~$12.5 B Airport Market

~$9.9 B Neighborhood Market

CORPORATE LEISURE REPLACEMENT LEISURE CORPORATE

Source: EHI estimates 9

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

U.S. Market Share – Airport 12-Month Average

2011

2004 Dollar/ Thrifty 12%

Other 2%

Other Enterprise 8% 2%

Dollar Thrifty 11% Enterprise National Alamo 34%

National/ Alamo 18% Hertz Advantage 26%

Hertz 29% Avis Budget 31%

Source: Airport authorities 10

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Avis Budget 27%

Car Rental Company Comparisons

900,000

Cars in Fleet

7,000

800,000 6,000

700,000 600,000 500,000

5,000

4,000

400,000 3,000

300,000 2,000

200,000 100,000

1,000

0

Source: Auto Rental News 2012 Fact Book 11

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

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US Locations

All Other 17% Hertz 11%

Enterprise National Alamo 64%

Avis Budget 8%

Source: Company reports, Auto Rental News Other 2%

Airport

Other Dollar 6% Thrifty 7%

Dollar Thrifty 11%

Total Market

Home City

U.S. Market Share

Enterprise National Alamo 34%

Hertz Advantage 19%

Enterprise National Alamo 50%

Avis Budget 18%

Hertz Advantage 26%

Avis Budget 27%

Source: Airport authorities – 12 month average as of December 2011 12

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Source: Auto Rental News 2012 Fact Book

Confederation of small businesses

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Typical neighborhood branch

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5 – 7 employees

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100 – 150 vehicles

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Decentralized

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Profit-and-loss responsibility

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Employee income tied to performance

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Responsibility to grow local business

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“The Balance”

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Listening to Customers Drives Growth

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

From leasing to rental

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Now at airports

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Commercial Trucks

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Car Sales

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Car Share

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

A military legacy

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

“Take care of your customers and employees first, and growth and profits will follow.” - Jack Taylor 17

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

1989

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The Journey

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

“You Manage What You Measure” - Peter Drucker

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

“Top Box”

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

ESQi

Enterprise Service Quality index

Just measuring is not enough

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

ESQi = Promotability ESQi = Recognition ESQi = Culture

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Completely Satisfied Customer Invitation to Return

Return of Vehicle

Telephone

Cycle of Service

Branch Arrival

Callbacks/ Switchouts

To Car

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Pick up

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Rental Contract

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

SQi: A Model for Customer Satisfaction

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BusinessWeek  Enterprise: Customer Service Champ four straight years

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Market Matrix  Enterprise: #1 in rental car industry 30 of 32 quarters

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J.D. Power & Associates

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

The Balance

1. Customer satisfaction 2. Employee development 3. Growth/Opportunity 4. Bottom line …In context of founding values

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

A great place to begin a career

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Our people

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Recruiting & Selecting: impact culture first

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The Learning Path: skills, recognition, measuring, mentoring & expectations

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Management: The Matrix

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Development: local/national

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Senior Leader Development Program

* The Alamo & National people model is somewhat different

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Crawford

$15.5B

EHI Alamo National Enterprise

Centric

$800M

Keefe Courtesy

TRG Victorinox (SAK)

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Family Experience

Joined Company 1956 1973 1994 1996 1995

(Full Time)

JCT ACT JAK CK CBT

1st Generation 2nd Generation 2nd Generation 3rd Generation 3rd Generation

Age 90 64 62 34 36

Total Family Years: 146 Three third generation kids not employed by company.

One fourth generation.

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Taylor Family Trust

 Holds  Four

family shares

family trustees

Two Kindles

Two Taylors  Family

trustees can sell, take public

 Successor  Four

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pool available

family trustees are directors of Crawford Group

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Crawford Group Inc: BOD



Board of Directors (13) Four family (one is chair) Four management * Five independent



Independent Directors (5) Truly independent Perpetuate themselves

* Family members in management can only be family directors. 34

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Crawford Group Inc: BOD

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

Nominating Committee (5) Chair is independent director Two family directors and three independent directors



Management Directors (4) VC, CEO, President, COO, CFO, then EVP if necessary Do not vote on CEO and management team

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Business Leadership Succession AGE

POSITION

90 64 68 64 61 52 60 63 49 51 50 52 48 60 52 50 50 48 48 56 52 47 47

Founder Chairman Vice Chairman CEO Foundation President CFO Legal Controller Administration Technology Strategy Rental HR Fleet Mgt/Car Sales Europe North America Re-Marketing Treasury Marcom Legislation Airport Benefits

Average age excluding Founder 53.5 36

YEARS OF SERVICE 55 39 47 39 18 30 28 4 10 27 22 29 24 12 28 27 27 23 23 12 16 24 20 Average years of service excluding Founder 24.0

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Recent Successes

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1.

Business Success - Market Share Balance Sheet Profits Liquidity

2.

Family office created in 2006.

3.

Founder reduced to 10% ownership (took 13 years) resolving estate tax issue and passing majority to next generation.

4.

All eight family members desire owning private multi- generation family businesses.

5.

New governance for both family and business in 2012.

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Future Challenges

1. Although not urgent, EHI CEO succession. 2. Preparing for role (TBD) of 3rd generation working in company and foundations. 3. Continue working to have the family possess a common view of the business.

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

Some Reasons for Success

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

Founder with vision beyond just money



Cooperative family/owners

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Under developed market space



Vendor financing



Distracted competitors

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Small group of senior leaders who were/are focused & unrelenting on growing a great business

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Knowing ourselves and saying “no” often

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Realistic & proactive about having the right people on the “bus”

F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

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F AM I L Y B U S I N E S S I N V I T AT I O N AL C O N F E R E N C E : S U C C E S S AN D C O N T I N U I T Y

FAMILY BUSINESS INVITATIONAL CONFERENCE:

SUCCESS AND CONTINUITY

Our Three-Generation Experience Enterprise Holdings Andy Taylor Chairman & Chief Executive Officer Enterprise Holdings

© 2012 Northern Trust Corporation

northerntrust.com