Executing for Growth and Returns Company and Industry Background Second Quarter 2015
Table of Contents Introduction 4 Market Overview 10 Margin Enhancement 17 Growth Through Customer Solutions 35 Fleet 41 Capital Structure 47 Appendix 53 3
is the Industry Leader, Creating a New Standard for Operational Execution to Drive Growth and Returns Through the Cycle 4
Equipment Rental Leader 1 U.S. Market Share 896 locations across North America United Diversified mix Rentals 12% Other Industrial/Non Construction 51% 77% HERC Non-Residential Construction 45% 5% Sunbelt Residential 4% 6%…
Creating a New Industry Standard Our Vision Deploying the best people, equipment and solutions to enable our customers to safely build a better and Superior stronger future returns to our stockholders by achieving Driven By…
Our Four Pillar Strategy for Success New Standard Expand Specialty Fill Growth Grow the Core for Operational Businesses Pipeline Execution National Account Customer Grow cross-sell Invest in related Strategy Service model and…
Entering Next Phase of Strategic and Financial Evolution Operation United 2 and Business Mix RSC Transformation Delivering on new standard of Operation operational United Became the scale excellence across a industry leader; more…
Safety as a Core Value Achieved a 0.75 Total Recordable Incident Rate (TRIR) YTD and a 0.85 Building a TRIR for Q2 of 2015, which places us as a leader in our industry and is in World-Class the top quartile of world-class companies…
Customer Confidence Index 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Down Same Up Only 4% See Slower Growth over the Next 12 Months Note: Survey of Key accounts only conducted by 3rd party. Approximately 170…
Current Pipeline of Over 360B in Construction and Industrial Projects Dodge Projects* - 52B IIR Industrial Projects** - 309B 0.4 (total) 0.3 (total) *Source: Dodge/McGraw Hill **Source: IIR-Industrial Information…
Construction Growth Expected Across U.S. in 2015 U.S. 2015 Forecasted Construction Growth Rate 5.4% CA, FL, OR, WA, NV, AZ expected to see double digit growth Strong Growth Expected in: Commercial (Office, Lodging) Private Health…
Why Rent Total Cost of Ownership Reasons to Rent Manage risk Save disposable costs Control expenses and inventory Cost control The right equipment for the job Equipment tracking 24/7 customer care No licenses Save on…
Why Rent Total Cost of Ownership Needs Assessment Planning/ Fleet Availability Procurement Equipment Sourcing Fleet Deployment Eq. Logistics Operating/ Operator training Maintenance PM & Repair Regulatory Compliance…
Margin Enhancement Applying Powerful Tools to Deliver Further Margin Expansion
Positive Pricing Outlook Cumulative Purchase Price Inflation Relative to 2007* URI EBITDA Margins and Rental Rate Index 55.0% 25% 47.8% 47.7% 105 46.3% 45.0% 42.6% 100 20% 35.5% 35.0% 31.5% 32.8% 30.9% 95 15% 26.7% 25.0% 90 10%…
Unique Operating Advantages Support Further Margin Enhancement Best Cost Continuous Structure Improvement Lean Scale Initiatives/ Advantage Operational Excellence Business Metro Mix Model Emphasizing Higher Utilization…
Leans Goal To build a sustainable, scalable platform for profitable growth Sustainable Scalable Profitable Growth Engage our people Our entire Build a foundation in systematically and organization is for long-term continuously focused…
Lean Rollout Continues LEAN Activities Results 2015 Plans 532 Kaizen events at Continue Kaizen Measurable non-specialty locations events improvements in 2926 Employee Dispatches per Drive depth and participants Driver per Day…
Telematics Commitment to Customer Benefits Internal Benefits Telematics Targeting 87% OEC Visibility into run- Performance time & equipment monitoring & service Telematics Standard utilization alerts on 2015 deliveries Locating of…
GPS Technology Monitoring Equipment Action options when viewing in map Customers Can Quickly Find Rental Assets 23
Stronger Market, Customer & Fleet Mix Four Levers to Help Achieve Less Cyclical Mix Diversified End Market Exposure Larger, More Stable Customers Residential 4% Non- Unassigned Residential 45% Accounts 36% 51% Industrial/ 64% Key…
What is Specialty Rental Fleet and Customers That Require a Different Business Model to Serve Effectively Trench Safety Power & HVAC Pump Solutions Tool Solutions Excavation support Complete solutions for Full range of pumps, Tool…
Strategy by Business Trench Safety Power & HVAC Pump Solutions Tool Solutions Strategy Lead in product Expand footprint and Expand footprint. Utilize Gen Rent sales innovation. drive local market force to gain share in…
Share of Business by Customer Specialtys Diversified Customer Base Trench Safety Power & HVAC 2% 2% 3% 5% 2% 4% 10% 10% 5% 14% 45% 48% 20% 33% 24% 8% Pump Solutions Tool Solutions 10% 20% 15% 5% 10% 34% 5% 6%…
Why is Specialty Rental an Attractive Business High ROCA and longer asset lives on Specialty High Returns equipment Customer Specialty improves relationships with high-value Loyalty industrial and key accounts Competitive…
Economics of Specialty: High Returns on Initial OEC Investment Multiple of Cash Flows Earned Over Asset Life / OEC 8.8x 4.6x 4.5x 3.9x Trench Tools Pumps Power & HVAC Asset Life: 10-15 yrs 7 yrs 7-10 yrs 10 yrs…
Trench Safety Continues Strong Growth Largest trench safety rental company in North America Record numbers of customers participating in our training courses in each quarter Trench Safety Rental Revenue Growth 21% 20% 18%…
Power & HVAC Offers Attractive Growth Opportunity High returns & longer asset life 5 additional cold starts planned for 2015/2016 Leveraging our existing customer relationships to cross sell Power & HVAC Power & HVAC Rental Revenue…
Pump Solutions Yields Strong Cross Sell Opportunities Pump Solutions provides customers a full range of pumps, hose, and fittings for fluid transfer Diversifying revenue base with our URI cross-sell network for Pumps with our strong…
Tool Solutions Improves Productivity Provide Tool Management Solutions to Industrial Customers in Hoisting, Welding, Torqueing, Pipe Fitting, & Other Tools High margins and attractive return on assets Drive customer entanglement…
Growth Through Customer Solutions Achieve Superior Performance by Leveraging Unique Advantages
Customer Solutions Drive Revenue Growth and Capital Efficiency Tailored engagement strategies to meet the specific needs of different customers from large enterprises Engagement to small, local businesses Strategy Focus dialogue on…
Customer Engagement Strategy Company-wide Ease of Doing Solutions Reliable Partner Business Large Industrial Large Commercial Enterprise Locals Job Site Management Agreements Consumption Wrench Time Availability Management…
Helping Customers Manage Fleet Embeds United as Rental Company of Choice Equipment Utilization 43.0% Software eliminates waste with enhanced visibility/accountability Increase equipment 20.5% utilization Less duplication…
Attractive Added Value for Customers A Meaningful Competitive Edge 669 208.9 150.3 409 302 194 Q2 2014 Q2 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Installs began late Q2 2014 with Revenue Grew 39% YOY Roll-Out of Total…
On Sites = Up Time Inside the Fence Sites Increased Utilization Leniency for Shared Equipment Lower Equipment Cost On-Time Delivery Guaranteed On Site Mechanic = No Downtime Reduction of Traffic = Safety Better meeting…
Fleet
Fleet Mix Customers Know We Have the Fleet They Need Trucks Welders 1% Trench 1% Power 5% 4% Other 10% 8.9 Billion of Fleet Light 2% 39% Aerial Comprised of Forks…
Rent vs. Buy Impact Of Tier IV 30000 +14.8% 25000 +25.2% 20000 +9.7% 48 months term 10% finance charge 15000 50% time utilization 3% rate increase yearly 10000 for 6 years for future calculation 5000 2% inflation on new…
Attractive Asset Economics Sample Asset Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Purchase Price (6,500) Rental Revenue 5,187 5,503 5,668 5,838 6,013 Ancillary Revenue 447 474 488 503 518 Operational Costs (2,061) (2,130) (2,184)…
Total Cost of Ownership Thousands Brand A Brand B Brand C Acquisition cost 93 95 89 Maintenance cost over life (parts) 7.5 9 8 Maintenance cost 9 9 10 over life (labor) Resale value (50) (53) (52) after 7 years (retail)…
Our Principles: Maximizing Financial Flexibility Valuable asset base supports reasonable amount of debt High operating margins generate significant cash flow/dollar of revenue Asset base can be monetized to support cash flow…
Ample Liquidity and No Significant Near-Term Maturities Millions 3,250 680 ABL Unused 1,925 1,820* 1,000 ABL Used 4.625% 1,325 Senior Secured Notes 850 800 558 925 1 A/R Unused 750 549 A/R 7.375% 7.625% 6.125%…
Capital Allocation Strategy Invest in Growth Return Cash Managing to Leverage Organic M&A Stockholders Target leverage Continued organic Balanced strategy 750M share range over the cycle investments to creates flexibility to…
Timeline Forbes Names One Expands New Strategy Industrial Power of 400 Best Big Refocuses Company Companies & HVAC on Core Equipment Footprint with Rental Business Acquisition and Cold-starts Branch Network Companys First Earns…
Performance Goals for Senior Executives Align with Creating Stockholder Value Long Term Incentive Plan Measures: Short Term Incentive Plan Measures: 2015 Performance Revenue Growth EBITDA Dollar Growth Measures Focus on Economic…
ARA Metrics In September 2011, the American Rental Association (ARA) released Rental Market Metrics whitepaper Standardization of metrics provides consistent way for calculating and reporting critical performance metrics Publication…
Corporate Governance Focus on Best Practices Amended Company charter to eliminate Board classes Roles of Chairman and CEO are separated and the Chairman is an independent director 10 of 11 directors are independent Board and each…
Glossary of Terms 1. Capex: Capital expenditures represent the amount reported in our statements of cash flows for the purchase of rental and non-rental equipment. 2. Dollar Utilization: Annualized rental revenue, excluding re-rent…
Glossary of Terms 5. Fleet Age: The OEC weighted age of the entire fleet, excluding the benefit of refurbishments. (ARA methodology) 6. OEC: Original Equipment Cost; the cost of an asset at the time it was originally purchased. (ARA…
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