Sunbelt Rentals Holdings, Inc. · NYSE:SUNB
Sunbelt Rentals — Investor Day (April 2024)
76 slides from Sunbelt Rentals's investor day presentation, Apr 30, 2024
Slide 1: Capital Markets Presentation
CAPITAL MARKETS PRESENTATION April 30, 2024
Slide 2: Legal Notice
LEGAL NOTICE This presentation has been prepared to inform investors and Some of the factors which may adversely impact some of these prospective investors in the secondary markets about the Group forward-looking statements are discussed in the Principal Risks and does not constitute an offer of sec
Slide 3: Presenters
PRESENTERS BRENDAN HORGAN MICHAEL PRATT KAREN BEADLE KYLE HORGAN CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER SVP, SUSTAINABILITY EVP, SPECIALITY BRAD LULL JENELLE STRAWBRIDGE JOHN WASHBURN MONICA ZIEGLER EVP, BUSINESS DEVELOPMENT VP, SALES CHIEF OPERATING OFFICER CHIEF PEOPLE OFFICER & STRATEGY
Slide 4: Key Messages
CAPITAL MARKETS PRESENTATION KEY MESSAGES • We are positioned to execute and realize the benefits of ongoing structural change present in this industry • Our strategic growth plan is designed to deliver a period of strong performance through growth in volume, pricing, margin, and return on investmen
Slide 5: Agenda
AGENDA • A look-back at 3.0 • Our end markets • Sunbelt 4.0 • Investment case 5 Capital Markets 2024
Slide 6: A Look-Back at 3.0
A LOOK-BACK AT 3.0 6 Capital Markets 2024
Slide 7: A History of Strategic Planning and Execution
A HISTORY OF STRATEGIC PLANNING AND EXECUTION Post financial crisis Project 2021 Sunbelt 3.0 Next Strategic Plan • Existing location investment • Focus on advancing clusters • US, Canada & UK alignment • Realizing structural progression • Early mover benefit • Specialty business growth • Focus on gr
Slide 8: Sunbelt 3.0: A Plan Delivered
SUNBELT 3.0 A PLAN DELIVERED 1 Actionable Components: GROW GENERAL TOOL Advance our clustered market approach through a proven playbook to meet demand and enable increased rental penetration in North America while optimizing our & ADVANCE OUR CLUSTERS operational network in the UK 2 AMPLIFY SPECIALT
Slide 9: Sunbelt 3.0: The Results
SUNBELT 3.0 THE RESULTS 1 Actionable Components: GROW GENERAL GT&E TOOL Grew General Tool revenue at 18% CAGR1 & ADVANCE THROUGH OUR OUR CLUSTERS PROVEN PLAYBOOK Amplified Specialty by growing rental revenue at 25% CAGR1 to $2.7bn and adding 3 new business lines 2 AMPLIFY SPECIALTY Expanded our foot
Slide 10: Sunbelt 3.0: The Results (Technology)
SUNBELT 3.0 THE RESULTS 1 Actionable Components: GROW GENERAL GT&E TOOL Embedded our order capture and dynamic pricing systems implemented & ADVANCE THROUGH OUR OUR CLUSTERS PROVEN PLAYBOOK early during 3.0, delivering strong growth and rate progression Developed comprehensive and powerful technolog
Slide 11: Sunbelt 3.0: The Results (ESG)
SUNBELT 3.0 THE RESULTS 1 Actionable Components: GROW GENERAL GT&E TOOL Reduced carbon intensity by over 30%, ahead of our 15% target for FY24 THROUGH & ADVANCE OUR OUR PROVEN CLUSTERS PLAYBOOK Through rental penetration, we have increased the shared use of assets, thereby reducing the consumption o
Slide 12: Sunbelt 3.0: The Results (Capital Allocation)
SUNBELT 3.0 THE RESULTS 1 GROW GENERAL Actionable Components: GT&E TOOL Consistent application of our capital allocation policy to optimize capital & ADVANCE THROUGH OUR OUR CLUSTERS PROVEN PLAYBOOK deployment for the benefit of all stakeholders 2 AMPLIFY Clear Priorities Applications SPECIALTY Orga
Slide 13: Group Financial Performance
SUNBELT 3.0 GROUP FINANCIAL PERFORMANCE FY21 FY24 RANGE1 LTM JANUARY 2024 CAGR ACHIEVEMENT Rental revenue ($M) 5,902 7,700 – 7,900 9,443 19% Total revenue ($M) 6,639 8,500 – 8,800 10,675 19% EBITDA ($M) 3,037 4,000 – 4,200 4,825 18% Operating profit ($M) 1,579 2,200 – 2,500 2,790 23% US drop through
Slide 14: Expansion Over 3.0 Provides a Strong Foundation
EXPANSION OVER 3.0 PROVIDES A STRONG FOUNDATION NORTH AMERICA # of locations April 2021 Sunbelt 3.0 APRIL 2021 # of clustered markets 938 SUNBELT 3.0: US Top 100 rental markets FY21 31 55 FY241 MAY 2021 –JAN 2024 CANADA 3 5 +394 Top 10 rental markets Greenfield: +223 Bolt-on: +171 3 new Specialty li
Slide 15: Realization of Structural Progression
REALIZATION OF STRUCTURAL PROGRESSION STRUCTURAL CHANGE OUTPUTS Shift from ownership to rental • Rental has become core rather than top up • Big getting bigger in a growing market Rental increasingly essential for • Larger and more diversified addressable market customer success • Pricing discipline
Slide 16: The Rental Industry Landscape
THE RENTAL INDUSTRY LANDSCAPE THE BIG GETTING BIGGER IN A GROWING MARKET NA RENTAL MARKET SIZE1 ($BN) MARKET SHARE BREAKDOWN1,2 94 2023 Future 93.5 11% 17% 77 20%+ 77.0 44% 37% 56.5 Two or 57 15% 11% 13% All three have others 50%+ of the 4% market 4% One 8% or two 8% others 21% 18% 2018 2023 2027 Su
Slide 17: A Benefit of Structural Progression
A BENEFIT OF STRUCTURAL PROGRESSION RENTAL RATE DISCIPLINE AND PROGRESSION Major events 2008–09 2014–16 2020–21 2022–23 GREAT FINANCIAL OIL & GAS CRISIS COVID-19 PANDEMIC LAST 6 QUARTERS CRISIS Structural progression • Top 3 rental companies • Industry consolidation and big getting bigger • Top 3 re
Slide 18: Our End Markets
OUR END MARKETS 18 Capital Markets 2024
Slide 19: Increasingly Broad and Diverse End Markets Served
INCREASINGLY BROAD AND DIVERSE END MARKETS SERVED >50% <50% Non-construction Construction 19 Capital Markets 2024
Slide 20: Non-Construction
NON-CONSTRUCTION A large and diverse set of end markets with comparably lower rental penetration, which increasingly use our broad range of products and services. 20 Capital Markets 2024
Slide 21: Major Non-Construction End Markets
MAJOR NON-CONSTRUCTION END MARKETS INCREASINGLY LARGE AND RESILIENT WITH VAST OPPORTUNITY FOR GROWTH MAINTENANCE, ENTERTAINMENT EMERGENCY STATE & LOCAL AGRICULTURE REPAIR & SPECIAL EVENTS RESPONSE GOVERNMENT Annual operating budget for crop and & OPERATIONS & RESTORATION livestock production Highly
Slide 22: Non-Construction Case Studies
NON-CONSTRUCTION CASE STUDIES MAINTENANCE, REPAIR & OPERATIONS ENTERTAINMENT AND SPECIAL EVENTS EMERGENCY RESPONSE & RESTORATION STATE & LOCAL GOVERNMENT “From the day to day, to the planned and National Airport Terminal Maintenance Las Vegas Grand Prix Tipton County, TN Board of Education Everett,
Slide 23: Construction
CONSTRUCTION A large and diverse end market where rental products and services are core - ranging from every day commercial to mega projects - bolstered by recent legislative acts. 23 Capital Markets 2024
Slide 24: US Construction Outlook
US CONSTRUCTION OUTLOOK 350 Dodge construction starts Indexed: 2000=100 2021 2022 2023 2024 2025 2026 2027 2028 300 Construction put in place ($bn) 250 Non-residential 542 608 744 790 788 826 868 902 200 Non-building 275 314 363 424 458 478 488 490 150 Construction (excl. resi) 817 922 1,107 1,214 1
Slide 25: Mega Projects Endure
MEGA PROJECTS ENDURE A KEY FEATURE OF THE CONSTRUCTION LANDSCAPE ONGOING AND PLANNED PROJECTS FROM MAY 2022 THROUGH APRIL 20271 PLANNED MEGA PROJECT VALUE $565bn $759bn 442 projects 501 projects FY22-24 FY25-27 • Mega projects typically take ~3 years to complete • FY25-27 value will likely increase
Slide 26: Mega Projects Drive Further Construction
MEGA PROJECTS DRIVE FURTHER CONSTRUCTION NON-RESIDENTIAL, INFRASTRUCTURE, AND RESIDENTIAL HYUNDAI-DRIVEN INVESTMENT IN SOUTHEAST GEORGIA (TIER 1 SUPPLIERS) OVERVIEW AND KEY INSIGHTS • Hyundai EV manufacturing facility and JV battery facility with LG Energy Solutions began construction in January 202
Slide 27: The Next Level of Ambition with Purpose
THE NEXT LEVEL OF AMBITION WITH PURPOSE 27 Capital Markets 2024
Slide 28: 28 Capital Markets 2024
28 Capital Markets 2024
Slide 29: Sunbelt 4.0 Actionable Components
SUNBELT 4.0 5 ACTIONABLE COMPONENTS UNDERPINNED BY STRONG FOUNDATIONAL ELEMENTS Actionable Components: CUSTOMER GROWTH PERFORMANCE SUSTAINABILITY INVESTMENT 1 2 3 4 5 Elevate our Grow General Tool Operate with Advance our position Disciplined capital obsession with and Specialty through greater effi
Slide 30: Customer
ACTIONABLE COMPONENT 01 CUSTOMER JENELLE STRAWBRIDGE 30 Capital Markets 2024
Slide 31: Customer
SUNBELT 4.0 CUSTOMER CUSTOMER Obsession Elevate with customer our obsession with service and customer success service and their success throughout throughout the the organization • Elevating our customer culture organization from centric to obsession in a manner to a level unparalleled in unparallel
Slide 32: Customer Obsession Takes All Our Team Members
CUSTOMER OBSESSION TAKES ALL OUR TEAM MEMBERS The How A clear, definable, measurable 04 path to execute 03 MARK WILCOX RONNIE DANIELS HANNAH HILL 02 DISTRICT MANAGER BRANCH MANAGER SELLER Immediacy of solution and/or resolution 01 Defining, training, adopting and embracing RICH NACCARTO JOEY CANTU R
Slide 33: A Broad and Diverse Customer Base
A BROAD AND DIVERSE CUSTOMER BASE POSITIONED TO INCREASE SHARE FROM THE LARGEST TO THE SMALLEST CUSTOMERS US CREDIT MEDIAN CUSTOMER $63 AVG. LINES Dollars spent with REVENUE 79% DECILE CUSTOMER OF BUSINESS CUSTOMER PERSONA Speciality, Revenue for comes every COUNT ($’ 000) USED $100 spent with from
Slide 34: Customer Annuity Value
CUSTOMER ANNUITY VALUE DEMONSTRATING GROWTH AND CONTINUED OPPORTUNITY RENTAL REVENUE GROWTH FROM FY21 US CREDIT CUSTOMERS1 ($M) NEW US CREDIT CUSTOMERS DURING 3.0 $4,578 $6,232 108,422 = $1.4bn New credit customers Rental revenue from added during 3.01 new customer accounts2 FY21 FY24 Rental revenue
Slide 35: Customer Obsession
CUSTOMER OBSESSION HALLMARK OF ENDURING SUCCESS Deeper and enduring Increased relationships capabilities and product range Essential for our Positioned for ongoing customers’ success, rate progression not taken for granted, rather a responsibility 35 Capital Markets 2024
Slide 36: Growth
ACTIONABLE COMPONENT 02 GROWTH JOHN WASHBURN KYLE HORGAN 36 Capital Markets 2024
Slide 37: Customer Growth
SUNBELT 4.0 GROWTH CUSTOMER GROWTH • Increasing our market density through investment in our General Tool and Specialty businesses Obsession Grow Generalwith customer Tool and service and Specialty success through the • Accessing latent capacity through ongoing structural existing location growth th
Slide 38: Complementary Drivers of Growth
COMPLEMENTARY DRIVERS OF GROWTH Components Existing Volume- Rate location Greenfields General Tool Specialty driven progression growth growth Why this is important We expect to realize revenue General Tool and Specialty will Revenue growth will be a growth from latent capacity grow as we advance our
Slide 39: Add 300–400 Greenfield Locations
ADD 300–400 GREENFIELD LOCATIONS ESTABLISH AND DEEPEN MARKET PRESENCE SPECIALTY GENERAL TOOL Estimated 4.0 greenfield additions 180–240 120–160 Approach • Expand businesses to markets not yet present • Establish presence in remaining markets • Deepen penetration in select markets for core • Deepen p
Slide 40: Continuing to Advance Our Clusters Through 4.0
CONTINUING TO ADVANCE OUR CLUSTERS THROUGH 4.0 AMPLE OPPORTUNITIES REMAIN, DRIVING FURTHER CLUSTER ECONOMICS USA CANADA Rental markets Top 25 26–50 51–100 101–210 Top 5 6–10 11–55 Rental market % 57% 19% 16% 8% 48% 19% 33% Cluster definition >15 >10 >4 >1 >10 >7 >1 (Location count) End 3.0 21 12 23
Slide 41: Clear Opportunity to Increase Density in Our Markets
CLEAR OPPORTUNITY TO INCREASE DENSITY IN OUR MARKETS FLEET DENSITY 1 FLORIDA OEC PER CAPITA • 3rd largest US rental market $ OEC per capita $69 • 99 locations 0–10 • Our fleet density continues 10–20 to grow 20–30 30–40 40–50 2 2 ONTARIO 50–60 OEC PER CAPITA • Largest Canadian rental $39 >60 market
Slide 42: Specialty Market Sizing, Rental Penetration & Share
SPECIALTY MARKET SIZING, RENTAL PENETRATION & SHARE REVENUE IS EXPECTED TO GROW BY ~$2 BILLION IN 4.0 WITH AMPLE OPPORTUNITY BEYOND CURRENT, PROJECTED AND ILLUSTRATIVE RENTAL REVENUE BY BUSINESS LINE ($M) LTM 31 January 2024 Line of business 4.0 growth Incremental illustrative Sunbelt potential tota
Slide 43: Pathway to Expanding Lines of Business Within Specialty
PATHWAY TO EXPANDING LINES OF BUSINESS WITHIN SPECIALTY GRAY SPACE WHITE SPACE Specialty Charter Existing adjacencies Undiscovered A product and service which intuitively lends itself to a degree of rental Entering rental equipment Disrupting end markets or penetration when a reliable alternative to
Slide 44: Rate Methodology
RATE METHODOLOGY Inflationary Costs WAGES (W) ASSET LIFECYCLE (AL) GENERAL INFLATION (G) Dynamic We expect skilled trade Lifecycle inflation drives Affects costs such as wages to outpace general increasing average fleet vehicle running, facility, inflation for the foreseeable cost, resulting in part
Slide 45: Path to ~$14 Billion Revenue in North America
PATH TO ~$14 BILLION REVENUE IN NORTH AMERICA ILLUSTRATIVE NA REVENUE GROWTH OVER 4.0 # of locations: 938 394 300–400 • Revenue growth assumes the middle of a 6-9% CAGR range in the US and a 9-12% range in Canada 20–30% ~$14bn 25–30% • General Tool and Specialty growth driven by; 40–45% • Accessing
Slide 46: Performance
ACTIONABLE COMPONENT 03 PERFORMANCE BRAD LULL 46 Capital Markets 2024
Slide 47: Customer Performance
SUNBELT 4.0 PERFORMANCE CUSTOMER PERFORMANCE Obsession with customer Operate withsuccess service and greater • Leveraging SG&A with increased efficiency throughoutthrough scale, the organization scale process, andunparalleled in a manner technology in • Increasing maturity of Project 2021 to theunlo
Slide 48: Drive Performance Improvement Throughout the Business
DRIVE PERFORMANCE IMPROVEMENT THROUGHOUT THE BUSINESS DELIVERING MARGIN PROGRESSION 3 MAIN AREAS OF OPPORTUNITY: 1 2 3 SG&A LOCATION PROGRESSION OPERATIONAL EXCELLENCE Leverage our central Extracting the potential Harness the power of and field sales and of our existing footprint digitally enabled s
Slide 49: SG&A
SG&A LEVERAGE OUR 3.0 INVESTMENT IN OUR OPERATING PLATFORM During 3.0 we invested in… CENTRAL SUPPORT FIELD SUPPORT Expanded team • Technology • Sustainability • Regional leadership capabilities… • Health & safety • Strategic sellers to support line of business and geographic growth Delivering… • Te
Slide 50: Our Greenfield Expansion Plan Creates an Annuity
OUR GREENFIELD EXPANSION PLAN CREATES AN ANNUITY FOR 4.0 AND BEYOND LOCATION EBITDA MARGIN BY YEARS OPEN1 ~56% ~56% • Over 3.0 we have added ~400 locations ~53% which have ample room for revenue growth and margin expansion ~41% • Capital investment targeted for these relatively new branches presents
Slide 51: Operational Excellence
OPERATIONAL EXCELLENCE LEVERAGING THE SCALE OF OUR PLATFORM ENABLES OPERATIONS TO RUN MORE EFFICIENTLY MARKET LOGISTICS MARKET FIELD MARKET OPERATION SERVICES REPAIR CENTER • Market-based approach to logistics which • Leveraging all Field Technicians in a market to • Service bays within operating lo
Slide 52: Path to 3-5% Margin Improvement
WE HAVE A PATH TO DELIVER 3-5% MARGIN IMPROVEMENT LEVERAGING SG&A 3–5% LOCATION EBITDA PROGRESSION MARGIN IMPROVEMENT OPERATIONAL EXCELLENCE 52 Capital Markets 2024
Slide 53: Technology Platform: Connect360
TECHNOLOGY PLATFORM THE NEXT LEVEL OF SERVICE AND OPERATIONAL EFFICIENCY Connect360 Powering our platform to deliver the next generation of customer experience, ease for all team members, and efficiencies through our business; delivering growth and improved performance. eCOMMERCE CONNECTED LOGISTICS
Slide 54: Sustainability
ACTIONABLE COMPONENT 04 SUSTAINABILITY KAREN BEADLE MONICA ZIEGLER 54 Capital Markets 2024
Slide 55: Customer Sustainability
SUNBELT 4.0 SUSTAINABILITY CUSTOMER SUSTAINABILITY Obsession Advance ourwith customer position as a service thriving,and success growing enterprise to deliver long-term throughout sustainable the organization • Net zero by 2050 value in for our unparalleled a manner people, in • 50% reduction in GHG
Slide 56: Sustainability in 4.0
SUSTAINABILITY IN 4.0 OPERATIONS CUSTOMERS OUR PEOPLE COMMUNITIES • Meeting our 3.0 target early • Driving the benefits of rental • Unlocking potential through our • Advancing an integrated (Scope 1 & 2 intensity basis) amplified by our scale people strategies community investment and setting a new
Slide 57: Net Zero by 2050
OPERATIONS OUR COMMITMENT TO NET ZERO AND THE ENVIRONMENT 2034 GHG INTENSITY REDUCTION TARGET: NET ZERO BY 2050 SCOPE 1 AND 2 TANGIBLE PATHWAY 50% intensity reduction Scope 1 & 2 • Light, medium, and heavy-duty fleet • Renewable diesel • Renewable electricity BASELINE: 2024 REDUCING • Waste in opera
Slide 58: Our Pathway to Net Zero
OUR PATHWAY TO NET ZERO SCOPE 1 & 2 2050 2024 Increasing use of HVO across 2030> West Coast Only EV MEDIUM & purchased HEAVY DUTY LIGHT DUTY NEARLY ALL ON-ROAD 2022 2026–2027 2035 FLEET IS EMISSION FREE EV trials – ~10% 2nd Near 100% EV 1st gen gen in fleet in fleet LIGHT DUTY LIGHT DUTY LIGHT DUTY
Slide 59: Customers: Advancing Sustainability Through the Power of Rental
CUSTOMERS ADVANCING SUSTAINABILITY THROUGH THE POWER OF RENTAL INHERENT CUSTOMER BENEFITS HIGH PERFORMING SOLUTIONS OF RENTAL VERSUS OWNERSHIP REDUCING CUSTOMER EMISSIONS Benefits of rental amplified by our scale • Earlier access to sustainable products • Extensive branch network enables efficiencie
Slide 60: Our People
OUR PEOPLE THRIVING TEAM MEMBERS INVESTING IN THE GROWTH, DEVELOPMENT, SAFETY, AND SUCCESS OF OUR PEOPLE TEAM MEMBER ENGAGEMENT SCORES Participation Rate North America UK 85% 88% 80% Attract Develop Retain 60 Capital Markets 2024
Slide 61: Communities
COMMUNITIES A STRONG PRESENCE IN THE COMMUNITIES WE SERVE OUR COMMUNITIES FY29 TARGET: 1% of profit1 to community investment Signature Team Employee Investing value aligned member Resource in local charitable Group (ERG) communities partnerships community where we matching engagement operate program
Slide 62: Investment
ACTIONABLE COMPONENT 05 INVESTMENT MICHAEL PRATT 62 Capital Markets 2024
Slide 63: Customer Investment
SUNBELT 4.0 INVESTMENT CUSTOMER INVESTMENT Obsession with Disciplined customer capital allocation • New target leverage range of service profitable driving and success growth, 1.0 to 2.0 times net debt to throughout strong cashthe organization generation, and EBITDA in a manner enhanced unparalleled
Slide 64: Direction of Travel
DIRECTION OF TRAVEL ORGANIC GROWTH ASSUMPTIONS ASSUMPTIONS Based on five-year organic rental revenue CAGR • North America rental revenue growth of ≥1.5 times rate of the rental market US 6 - 9% • Anticipates US construction forecast Canada 9 - 12% to broadly reflect those herein1 • UK business 4.0 p
Slide 65: Direction of Travel – Organic Growth
DIRECTION OF TRAVEL – ORGANIC GROWTH GROUP ($M) FY241 FY292 Rental revenue $9,443 $12,800 - $14,800 Total revenue $10,675 $14,500 - $16,600 EBITDA $4,825 (45%) $6,800 - $8,300 Operating profit $2,790 (26%) $3,800 - $4,800 5-year free cash flow $8,500 - $6,500 Net debt leverage3 1.9x 0.7x EPS ($/ CAG
Slide 66: Consistent Capital Allocation Priorities
CONSISTENT CAPITAL ALLOCATION PRIORITIES CLEAR PRIORITIES Organic fleet growth • Consistent application within a • Same-store new target leverage range of 1.0 • Greenfields to 2.0 times net debt to EBITDA • Amount allocated to buybacks Bolt-on acquisitions based on availability after organic growth,
Slide 67: Strong Track Record of Bolt-On Performance
STRONG TRACK RECORD OF BOLT-ON PERFORMANCE NORTH AMERICAN ACQUISITIONSSINCE 20111 # OF ACQUISITIONS COMBINED EBITDA MULTIPLE 6.1x PURCHASE PRICE2 Average EBITDA multiple paid <$100m 189 3,323 5.6 >$100m 14 2,708 6.7 2.3x Average revenue 203 6,031 6.1 138 of 203 deals were not in a process Revenue fr
Slide 68: The Rental Industry Remains Fragmented
THE RENTAL INDUSTRY REMAINS FRAGMENTED AMPLE OPPORTUNITY FOR BOLT-ON INVESTMENT US RENTAL MARKET BREAKDOWN Branch count # of companies Total branches % of total 1 3,047 3,047 32% Companies with 5 or 2 321 642 7% fewer branches comprise ~50% of all locations 3-5 255 891 9% 6-10 96 659 7% 11-25 53 788
Slide 69: How Can We Deploy a Further $5.5 Billion
HOW CAN WE DEPLOY A FURTHER $5.5 BILLION ILLUSTRATIVE EXAMPLE AT MID-POINT OF LEVERAGE RANGE 100% BOLT-ONS 100% SHARE BUYBACKS If you assume average transactions of: • If you assume an average purchase price of £70 per share, • 2.5 times revenue buyback 62 million shares or 14% of share capital • 6
Slide 70: Investment Case
INVESTMENT CASE 70 Capital Markets 2024
Slide 71: Realization of Structural Progression
REALIZATION OF STRUCTURAL PROGRESSION STRUCTURAL CHANGE OUTPUTS Shift from ownership to rental • Rental has become core rather than top up • Big getting bigger in a growing market Rental increasingly essential for • Larger and more diversified addressable market customer success • Pricing discipline
Slide 72: The Rental Industry Landscape
THE RENTAL INDUSTRY LANDSCAPE THE BIG GETTING BIGGER IN A GROWING MARKET NA RENTAL MARKET SIZE1 ($BN) MARKET SHARE BREAKDOWN1,2 94 2023 Future 93.5 11% 17% 77 20%+ 77.0 44% 37% 56.5 Two or 57 15% 11% 13% All three have others 50%+ of the 4% market 4% One 8% or two 8% others 21% 18% 2018 2023 2027 Su
Slide 73: A Benefit of Structural Progression
A BENEFIT OF STRUCTURAL PROGRESSION RENTAL RATE DISCIPLINE AND PROGRESSION Major events 2008–09 2014–16 2020–21 2022–23 GREAT FINANCIAL OIL & GAS CRISIS COVID-19 PANDEMIC LAST 6 QUARTERS CRISIS Structural progression • Top 3 rental companies • Industry consolidation and big getting bigger • Top 3 re
Slide 74: The Next Level of Ambition with Purpose: In Conclusion
THE NEXT LEVEL OF AMBITION WITH PURPOSE IN CONCLUSION • We are positioned to execute and realize the benefits of ongoing structural change present in this industry • Our strategic growth plan is designed to deliver a period of strong performance through growth in volume, pricing, margin, and return
Slide 75: Sunbelt 4.0: A Compelling Opportunity for All Stakeholders
SUNBELT 4.0 A COMPELLING OPPORTUNITY FOR ALL OUR STAKEHOLDERS Actionable Components: CUSTOMER GROWTH PERFORMANCE SUSTAINABILITY INVESTMENT 1 2 3 4 5 Elevate our obsession Grow General Tool Operate with Advance our position Disciplined capital with customer service and Specialty through greater effic
Slide 76: Q&A
Q&A 76 Capital Markets 2024
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