Ryder System : 2023 Ryder Annual Report

2023 ANNUAL REPORT

TRANSFORMATION

OUR STRATEGY AT WORK

CORPORATE PROFILE

Ryder System, Inc. is a $12 billion fully integrated port-to-door logistics and transportation company. We operate behind the scenes managing critical fleet, transportation, and supply chain functions for more than 40,000 customers, many of which make products consumers use every day.

DIVERSIFIED CUSTOMER BASE

21%

Food & Beverage

18%

Retail & Consumer Goods

15%

Transportation & Logistics

13%

Automotive

10% Industrial

7% Housing

5% Technology

5%

Business & Personal Services

6%

Other

41%

OF TOTAL REVENUE

SCS Ryder's Supply Chain Solutions business segment offers companies an end-to-endsuite of solutions that includes warehousing, distribution, transportation logistics, e-commerceand omnichannel fulfillment, and last mile delivery to turn logistics networks into competitive advantages.

15%

OF TOTAL REVENUE

DTS Ryder's Dedicated Transportation Solutions business segment provides customers all the benefits of a private fleet by combining the best of Ryder's leasing and maintenance capabilities with the safest and most professional drivers and technology in the industry.

44%

OF TOTAL REVENUE

FMS Ryder's Fleet Management Solutions business segment offers full-serviceleasing, contract maintenance, and commercial rental of trucks, tractors, and trailers to help businesses of all sizes across virtually every industry deliver for their customers.

1933	~47,500	~41,000
YEAR	FULL TIME	COMMERCIAL
FOUNDED	EMPLOYEES	CUSTOMERS
248,900	$10B	>100M
VEHICLES	FREIGHT UNDER	SQ. FT. OF
SERVICED	MANAGEMENT	WAREHOUSE SPACE

NYSE: R

Ryder System, Inc.

LEADING PROVIDER OF OUTSOURCED LOGISTICS AND TRANSPORTATION SOLUTIONS IN NORTH AMERICA

TRANSFORMATION. Our Strategy at Work

TRANSFORMATIVE BUSINESS MODEL CHANGES: 2018 - TODAY

DE-RISK AND OPTIMIZE		ENHANCE RETURNS &		DRIVE LONG-TERM
THE MODEL		FREE CASH FLOW		PROFITABLE GROWTH
CHOICELEASE		CHOICELEASE		REVENUE MIX
Less reliance on vehicle proceeds;		Expanded pricing spreads by segment;		56% asset-light (SCS/DTS);
pricing residuals significantly reduced		$125M annual benefit by 2025		up from 44% in 2018
FMS BUSINESS MIX		VEHICLE MAINTENANCE COSTS		SCS GROWTH
Exited UK and liability insurance		$100M+ annual cost reduction;		24% 3-year CAGR;
coverage lines		higher warranty coverage		up from 16% in 2018
		FREE CASH FLOW
		Positive most years and over cycle -
		moderate fleet growth

		2023 HIGHLIGHTS
19%	$460M	15%
Adjusted ROE	Returned to shareholders through	Dividend Increase
		buybacks and dividends

1 | RYDER 2023 ANNUAL REPORT

TRANSFORMATION. Our Strategy at Work

KEY ATTRIBUTES OF TRANSFORMED BUSINESS MODEL

"Actions taken to de-risk the business model, enhance returns and drive profitable growth are contributing to our significant outperformance versus prior cycles."

RO B ER T S A N C H E Z

Chair and Chief

Executive Officer

GROWTH FROM LARGE ADDRESSABLE MARKETS AND SECULAR TRENDS

RECURRING REVENUE FROM HIGH-PERFORMINGCONTRACTUAL PORTFOLIO (LEASE, SCS, DTS)

COST MANAGEMENT DISCIPLINE

INVESTMENT AND INNOVATION TO SUPPORT BALANCED GROWTH STRATEGY

• Only 5-25% of US addressable market is outsourced
• Market demand for supply chain resiliency and optimization
• Labor challenges and vehicle technology complexity
• ~85% of operating revenue from long-term contracts
• Reduced reliance on used vehicle proceeds to achieve returns
• Expanded pricing spreads by customer segment
• Diversified SCS revenue base
• Leverage scale for cost and operational efficiencies
• Maintenance cost savings
• Zero-basedbudgeting
• Disciplined capital allocation
• Completed ~$1.2B of strategic acquisitions since 2018
• Technology investments

More resilient business model outperforms prior cycles

PRE-TRANSFORMATION

2018

FREIGHT CYCLE PEAK

RYDER TODAY

2023

FREIGHT CYCLE

DOWNTURN

$12.95	19%	24%	$2.4B
13%		16%	$1.7B
$5.95

Comparable EPS	Adjusted ROE	SCS Revenue	Operating Cash
		3-Yr CAGR	Flow

Adjusted ROE and comparable EPS are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, see pages 45-52 of our Annual Report on Form 10-K for the year ended December 31, 2023.

2 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

RO B ER T S A N C H E Z

Chair and Chief Executive Officer

Pre-Transformation

D E A R S H A R E H O L D E R S:

I am extremely proud of the Ryder team for continuing to execute our balanced growth strategy and for delivering strong results again in 2023. Our operating performance continues to demonstrate that the transformative changes we've made to de-risk our business model, enhance returns and free cash flow, and drive long-term profitable growth have significantly increased the earnings and return profile of the business relative to prior cycles. Secular trends continue to favor transportation and logistics outsourcing, and our operational expertise and strategic investments continue to enable us to create value for customers and shareholders.

2023 R E S U LT S

Our 2023 performance clearly illustrates the significant impact our balanced growth strategy is having on our earnings and return profile versus prior cycles. In 2018, prior to the implementation of the balanced growth strategy, we generated comparable earnings per share (EPS) from continuing operations of $5.95 and adjusted return on equity (ROE) of 13%. This was during peak freight cycle conditions. At that time, the majority of our $8.4 billion total revenue was from our Fleet Management Solutions (FMS) business. Our Supply Chain Solutions (SCS) business revenue had a 3-year growth rate of 16%, and operating cash flow was $1.7 billion.

2018

Revenue

$8.4B

In 2023, during a freight cycle downturn, our transformed model generated meaningfully higher earnings and returns than it did during the 2018 peak. Comparable

44% SCS/DTS 56% FMS

Accelerated growth in SCS/DTS transforms revenue mix

Ryder Today

2023	Revenue
		$11.8B
	56% SCS/DTS
	44% FMS

EPS from continuing operations was $12.95, and ROE was 19%. Through organic growth, strategic acquisitions, and innovative technology, we have shifted our revenue mix toward SCS and Dedicated Transportation Solutions (DTS), with 56% of 2023 revenue coming from these more asset-light businesses compared to 44% in 2018. The SCS three-year growth rate has also increased to 24%.

The business generated strong operating cash flow of $2.4 billion, reflecting contractual growth, partially offset by lower rental demand. We continued to return capital to shareholders through buybacks and dividends. During 2023, we repurchased

3.6 million shares. Since 2021, we have repurchased approximately 16% of our shares outstanding. We also increased our dividend by 15% mid-year.

Adjusted ROE, comparable EPS, and free cash flow are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, see pages 37, 45-52 of our Annual Report on Form 10-K for the year ended December 31, 2023.

3 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

As we invest in the future of Ryder, we are also taking steps to further strengthen and widen the reach of the Ryder brand. In February 2023, we announced our sponsorship and advertising campaign with professional golfer Sam Ryder, now in

his seventh season on the PGA TOUR®.

I'm encouraged by the results of our transformation thus far and am confident that our solid execution in 2023 and momentum from multi-year initiatives position us well for 2024 and beyond.

I N V E S T I N G I N T H E F U T U R E

We continue to reaffirm our commitment to growing the business through a combination of organic growth and strategic acquisitions. In November 2023, we completed the acquisition of Impact Fulfillment Services ("IFS"), which added contract packaging and contract manufacturing to our SCS service offerings and expanded our warehousing business. The acquisition of IFS also provides us with the opportunity to enhance existing customer relationships, as well as develop new relationships with a blue chip customer base that includes some of the largest and best-known consumer brands in the United States. More recently, in February 2024, we completed the acquisition of Cardinal Logistics, further strengthening our position as a leading provider of customized dedicated transportation solutions in North America.

In July 2023, Torque by Ryder™ expanded into new markets with its offering of retail mobile maintenance at a business's location with no long-term contract. Torque by Ryder provides a portfolio of maintenance solutions with its fleet of fully equipped mobile maintenance trucks and professionally trained technicians.

Moving into 2024, advanced vehicle technologies will be top-of-mind for many of our customers, with some already having questions about how to electrify their fleets. In May 2023, we rolled out RyderElectric+™, a new turnkey solution with electric vehicle advisory, vehicle lease, charging, telematics, and maintenance services. In September 2023, we deployed additional light duty electric vehicles into our rental fleet.

C O R P O R AT E R E S P O N S I B I L I T Y

In 2023, we published our annual Corporate Sustainability Report for 2022, outlining our initiatives and investments in sustainability. These investments and our progress demonstrate our commitment to maintaining economic viability with an eye towards the future. We expect these initiatives will continue to generate value for our company and our stakeholders as a trusted logistics and transportation provider, grounded by strong governance.

4 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

"We continually strive to make Ryder a better provider for our customers, a better place to work for our employees, and a better corporate citizen for the communities we support."

Ryder is fully committed to having a direct positive impact on the many communities where our employees work and live. In October 2023, we hosted our annual United Way workplace campaign and Ryder employees showed their generosity as never before. Between employee contributions and Ryder's corporate gift, we raised a record $1.1 million.

Continuous improvement is a key philosophy in logistics and a way of life at Ryder, as reflected in our corporate tagline "Ever better!" We continually strive to make Ryder a better provider for our customers, a better place to work for our employees, and a better corporate citizen for the communities we support. I'm proud to say our efforts did not go unnoticed in 2023. For the 12th consecutive year, FORTUNE® named us among its "World's Most Admired Companies," while Newsweek named Ryder one of the "Most Trustworthy Companies in America." Two of Ryder's largest customers, Toyota North America and General Motors, honored us with their "Innovation"

and "Overdrive" awards, respectively. In addition, the U.S. EPA recognized us for our Leadership in Environmental Performance, ranking us among the top 2% of all SmartWay truck carriers. Of course, one of our most important distinctions is being an employer of choice. That's why I was proud to see Ryder named among Forbes "America's Best Large Employers" in 2023.

On behalf of Ryder's leadership team and all our employees, thank you for your investment and confidence in Ryder. We remain focused on executing our balanced growth strategy, which we believe will continue to deliver value to our customers and shareholders.

Sincerely,

Robert Sanchez

Chair and Chief Executive Officer

March 2024

5 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

(in millions, except per share amounts)

Adjusted ROE

	29%
21%		19%
2021	2022	2023

Comparable EBITDA

$2,722$2,665

$2,433

2021

2022

2023

Comparable EPS

	$16.37
		$12.95
$9.58
2021	2022	2023

Cash Flow from Operations

$2,175	$2,310	$2,353
2021	2022	2023

Operating Revenue		Dividend Per Common Share
	$9,280	$9,497			$2.66
				$2.40
$7,828			$2.28
2021	2022	2023	2021	2022	2023

Adjusted ROE, comparable EBITDA, comparable EPS, and operating revenue are non-GAAP financial measures.

For a reconciliation of these non-GAAP financial measures, see pages 37, 45-52 of our Annual Report on Form 10-K for the year ended December 31, 2023.

6 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

"We see considerable opportunity to leverage our new capabilities across industry verticals. As a fully integrated port-to-door logistics provider, we're in a position to deliver significantly increased value for customers looking for more advanced supply

chain solutions."

S T E V E S EN S I N G

President, Supply Chain Solutions

and Dedicated Transportation Solutions

INVESTED

$1.2 Billion

IN SCS ACQUISITIONS SINCE 2018

STAYING AHEAD OF THE CURVE

EXPANDING SCS CAPABILITIES

I F S A C Q U I S I T I O N

With the 2023 acquisition of Impact Fulfillment Services (IFS), Ryder gained new capabilities in contract packaging and contract manufacturing in both food and non-food products. While Ryder already serves the top 10 U.S. food and beverage companies, the acquisition is expected to continue to expand and strengthen those relationships while also attracting new customers in additional verticals, especially in retail, health, and beauty.

U P DAT E O N OT H E R A C Q U I S I T I O N S

In addition to Ryder's acquisition of IFS, acquisitions in e-commerce and multiclient warehousing also support the company's strategy to accelerate profitable growth in its supply chain business.

In e-commerce, Ryder expanded its e-fulfillment portfolio with a proven technology and operating platform that enables digitally native and omnichannel retailers to easily scale. It has added an impressive roster of consumer brand names and entered new e-commerce industry verticals in health, beauty, and cosmetics. Ryder's e-commerce fulfillment solution now delivers to 100% of the U.S. within two days and 60% of the U.S. within one day.

Ryder also continues to build out its multiclient warehouse network, providing an entry point for emerging brands looking for a third-party logistics provider that can help them scale, and offering existing customers storage for inventory overflow.

When you combine these expanded capabilities with Ryder's flexible mix of end-to-end transportation logistics solutions, including the Ryder Last Mile delivery network for big-and-bulky goods, Ryder offers an incredible value for customers looking for greater flexibility, efficiency, and ultimately, resiliency.

7 | RYDER 2023 ANNUAL REPORT

CEO Letter | Performance | Ahead of the Curve | Sustainability | Corporate Information

"We're investing in the brightest technology minds and providing them with the space and freedom to create, so we can continue to build on the strategic investments we've made to develop, acquire, and invest

in innovative technologies, products, and services that help make our customers' logistics networks more efficient and resilient."

K A R EN J O N E S

Executive Vice President and

Chief Marketing Officer

STAYING AHEAD OF THE CURVE

INVESTING IN INNOVATIVE

TECHNOLOGIES

R Y D E R S H A R E TM

Ryder's one-of-a-kind visibility and collaborative logistics technology RyderShare™ enables everyone involved in moving goods through supply chains - shippers, receivers, carriers, and service providers - to work together in real-time to prevent costly delays and find efficiency gains.

It's the only digital platform by a 3PL that provides end-to-end visibility, collaboration, and exception management as goods move inbound on trucks to within the walls of warehouses and distribution centers and, ultimately, outbound to their final destinations.

To date, RyderShare has logged more than 13 million shipments with customers realizing significant improvements in productivity, labor efficiency, on-time delivery performance, and instant revenue recognition.

B ATO N, A RY D E R T EC H N O LO G Y L A B

Following the acquisition of logistics tech startup Baton in 2022, Ryder established an innovation lab based in Silicon Valley. The mission of Baton, A Ryder Technology Lab is to pioneer a suite of groundbreaking customer-facing technologies designed to revolutionize how Ryder's customers interact with their transportation and supply chain networks. These technologies will digitize and optimize networks at a level not currently available in the industry and will prepare Ryder for future advancements.

Baton's first challenge is to create a first-of-its-kind,AI-powered digital platform and optimization engine that facilitates a new, integrated approach to managing transportation networks for customers where seasonality and fluctuating demand inhibit the continuous use of resources.

8 | RYDER 2023 ANNUAL REPORT