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 881 locations across North America United Rentals Diversified mix 12% Other Industrial/Non Construction 51% 77% HERC 5% Non-Residential Construction 45% Sunbelt 6% Residential…
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 and Invest in related Strategy Service model…
Entering Next Phase of Strategic and Financial Evolution Operation United 2 and Business Mix RSC Transformation Delivering on new standard of Operation operational excellence United Became the scale across a more industry leader;…
Safety as a Core Value Achieved a 0.95 Total Recordable Incident Rate (TRIR) for Building a 2014, which leads our industry and is in the top quartile of World-Class world-class companies for all industry sectors Safety Culture…
Customer Confidence Index 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Down Same Up Only 1% See Slower Growth in 2015 (1) Survey of Key accounts only conducted by 3rd party. Approximately 170 surveys conducted each…
Current Pipeline of Over 370B in Construction and Industrial Projects Engineering and Construction Dodge Projects* - 55B Projects** - 323B *Source: Dodge/McGraw Hill **Source: IIR-Industrial Information Resources 1) Projects…
Construction Growth Expected Across US in 2015 CA, FL, OR, NV, AZ expected to see double digit growth Source: IHS 14
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 25% 50.0% 47.8% 105 46.3% 45.0% 42.6% 20% 100 40.0% 35.5% 35.0% 32.8% 31.5% 30.9% 95 15% 30.0% 26.7% 25.0%…
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…
Lean Processes Drive Real Value Run Rate of 30 Million Towards 100 Million Goal LEAN Activity Productivity Gains Value Levers Kaizen Decreased Outside Improved processes in Hauling Costs Cost per Delivery yards, shops, dispatch…
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…
Do It Right the First Time Kaizen PIT B-PRO Process Improvement Team Best Practice Roll-Out A cross-functional Field and Ops Field Ownership team (Field & Ops Excellence Leaders Excellence Leaders) 1 Day, 1 Process 2-week 1-week…
Telematics Commitment to Customer Benefits Internal Benefits Telematics Targeting 87% Visibility into run- Performance OEC time & equipment monitoring & service utilization alerts Telematics Locating of off-rent Standard on 2015…
GPS Technology Monitoring Equipment Action options when viewing in map Customers Can Quickly Find Rental Assets 24
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% Industrial/ 64% 51% 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 ROCA*=43% ROCA=30% ROCA=44% ROCA=35% Excavation support Complete…
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 penetration.…
Share of Business by Customer Specialty Has a Diversified Customer Base Trench Safety Power & HVAC 2% 2% 3% 4% 2% 4% 10% 10% 5% 14% 45% 48% 20% 33% 24% 8% Pump Solutions Tool Solutions 10% 15% 13% 5% 10% 4% 20%…
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…
Cross Sell Delivers Customer Value Significant runway ahead to grow cross sell in our Specialty segments Cross Selling Specialty with our National Accounts 31
Trench Safety Continues Strong Growth Largest trench safety rental company in North America Trench is first on the job and supports cross-selling opportunities for all other URI categories 2 Trench branches opened in 2014 Trench…
Power & HVAC Offers Attractive Growth Opportunity High returns & longer asset life Blue Stream acquisition closed in May 2014 Business specializes in turn-key services and solutions 8 branches opened in 2014 Power & HVAC Annual…
Pump Solutions Yields Strong Cross Sell Opportunities Pump Solutions provides customers a full range of pumps, hose, and fittings for fluid transfer National Pump acquired in Q2 2014; integration complete Quickly capturing…
Tool Solutions Improves Productivity Provide Tool Management Solutions to Industrial Customers in Hoisting, Welding, Torqueing, Pipe Fitting, & Other Tools High margins and attractive return assets Drive customer entanglement with…
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 Locals Enterprise Agreements Job Site Management 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 20.5% Increase equipment utilization Less duplication…
Attractive Added Value for Customers A Meaningful Competitive Edge 206.9 409 146.1 194 84 60 Q4 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Installs began late Q2 with Roll-Out of Revenue Grew 41.6% YOY 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% 8.4 Billion of Fleet Light 2% Aerial 39% Comprised of Forks…
3,300 Equipment Classes with Original Cost of 8.4B Booms and Earth Moving Forklifts Trench and Lifts Other Total (Average) % of Q4 2014 35.4% 12.3% 17.1% 35.1% Rental Revenue Time 76.0% 64.2% 81.1% 58.4% 70.6% Utilization*…
Managing Fleet with a Life Cycle Approach Selling Oldest Fleet Rental Capex and Used Sales (MM)* Age of Used Sales in Months 1,580 1,701 85 88 89 1,390 1,321 83 83 72 673 (269) (363) (463) (490) (544) 2010 2011 2012…
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)…
Q4 2014 Results Rates +4.1% 70.6% Time Utilization +130bps 775M or 49.6% Adjusted EBITDA +124M or 90 bps Adjusted EBITDA 54.9% Flow-Through LTM ROIC 8.8%, increase of 1.3 pp Adjusted EBITDA of 49.6%, a Quarterly Record…
2015 Outlook Total Revenue 6.0B to 6.2B Adjusted EBITDA 2.95B to 3.05B Increase in Rental Rates (year- Approximately 3.5% over-year) Time Utilization Approximately 69% Net Rental Capital Expenditures Approximately 1.2B, after…
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 Senior Note callable 750 2,300 7.375%in February 2016 Senior Approximately 1B in Unsecured ABL capacity and Notes cash creating ample liquidity to grow the 946…
Expect to Generate about 2.5B in Free Cash Flow* Millions 1,000+ 800+ 725 - 775 574 421 2013 2014 2015 2016 2017 Actual Forecast End Market Strength and Fleet Discipline Contributing to Powerful FCF *Excludes merger…
Assumptions Driving FCF Outlook Gross rental CapEx spend of about 1.7B; net rental CapEx spend of 1.2B for the next 3 years About 3.5% rental rate growth in 2015 and 3% thereafter Cash Taxes Remaining Federal NOLs utilized in 2015…
Capital Allocation Strategy New 750M Share Repurchase Program Invest in Growth Return Cash Managing to Leverage Organic M&A Stockholders Target leverage Continued organic Balanced strategy Completed 500M range over the cycle…
Leverage Ratio Continues Decline1 2 4.6 3 3.6 Dry Powder 3.0 2.9 2.6 2011 2012 2013 2014 2015 2016 2017 Actual Forecast 2.5x 3.5x Target Leverage Range of the Cycle Lower End of Target Range in 2015 (1) Leverage Ratio…
Building a Bridge to Higher Returns* 14% (2.4%) 0.3% 2.1% 10% 12% 0.3% Internal 2.3% 11.0% Hurdle Rate 10% December 2014 8.4% WACC Range 8.8% 8% 6% 4% 2% 0% 5 Sep-14 Rate 1 Fleet Lean 4 Fleet and Cost Business Approx…
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: 2014 Performance Revenue Growth EBITDA Dollar Growth Measures Focus on Economic…
Adjusted Earnings Per Share GAAP Reconciliation We define earnings per share adjusted as the sum of earnings per share GAAP, as reported plus the impact of the following special items: merger related costs, merger related intangible asset…
EBITDA and Adjusted EBITDA GAAP Reconciliation EBITDA represents the sum of net income, provision for income taxes, interest expense, net, interest expense-subordinated convertible debentures, depreciation of rental equipment, and…
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, 2014 2013 2014 2013 Net cash provided by operating activities 335 436 1,801 1,551…
Free Cash Flow GAAP Reconciliation We define free cash flow as (i) net cash provided by operating activities less (ii) purchases of rental and non-rental equipment plus (iii) proceeds from sales of rental and non-rental equipment.…
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 12 of 13 directors are independent Board and each…
Convertible Senior Notes How the Convertible Works In November 2009, URI issued 172.5M of convertible senior notes due 2015. Notes carry a 4.0% coupon and are convertible at an initial conversion price of 11.11 per share Net share…
Mechanics of Convert and Hedge Share Delivery at Conversion of 1M Assumed Stock Price United Rentals Hedge 10 Counterparties 0 Shares Net 0 0 Shares Investors New Shares Issued United Rentals Hedge 75 Counterparties 5K…
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 and…
Glossary of Terms 5. Fleet Age: The OEC weighted age of the entire fleet, excluding the benefit of refurbishments. 6. OEC: Original Equipment Cost; the cost of an asset at the time it was originally purchased. 7. Rental Rate: The…
Loading...
