Willscot Holdings Corporation · NASDAQ:WSC
Willscot — WillScot Mobile Mini Holdings — Investor Day (November 2021)
104 slides from Willscot's investor day presentation, Nov 8, 2021
Slide 1: 2021 Investor Day
2021 Investor Day NOVEMBER 8, 2021
Slide 2: Safe Harbor Forward Looking Statements
2 Safe Harbor Forward Looking Statements This presentation contains forward-looking statements (including the guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The wor
Slide 3: Agenda
3 Agenda 1:00 – 5:30 pm Topic Speaker Opening Remarks Brad Soultz Growth Initiatives Tim Boswell BREAK Technology Graeme Parkes ESG Hezron Lopez & Jamie Bohan Outlook Tim Boswell Q&A All RECEPTION
Slide 4: WillScot + Mobile Mini Holdings Corp
WILLSCOT + MOBILE MINI HOLDINGS CORP [emuscor] | mobile mini | min
Slide 5: 5
5
Slide 6: Opening Remarks
6 Opening Remarks Brad Soultz Chief Executive Officer
Slide 7: Today's presenters
7 Today’s presenters Brad Soultz Chief Executive Officer Tim Boswell President & Chief Financial Officer Hezron Lopez Chief Human Resources Officer Graeme Parkes Chief Information Officer Jamie Bohan Vice President ESG
Slide 8: Our team is our biggest strength
8 Our team is our biggest strength Andrew Auns Senior Vice President Modular Nicole Christian Senior Vice President Storage Darren Gould Senior Vice President Modular Jason Seabolt Senior Vice President Storage Chris Miner Chief Legal Officer Antoine Delalande Senior Vice President Commercial Matt J
Slide 9: Combining our collective experience gives us clear market leadership
9 Combining our collective experience gives us clear market leadership 1960-1990 2000 2010 2015 2017 2018 2019 2020 2021 Scotsman Manufacturing Mobile Mini Office J Staal Corsair Williams Mobile Offices 75+ Modular and Storage Acquisitions
Slide 10: Positioned as a market leader at the intersection of numerous dynamic markets
10 Today, we are positioned as a market leader at the unique intersection of numerous dynamic markets – we have lots of ways to win and can be opportunistic We operate at a unique intersection of vast industrial B2B markets We think globally and compete locally We operate both with scale and an entr
Slide 11: In 2017, WillScot committed to an aggressive growth strategy
11 In 2017, WillScot committed to an aggressive organic and inorganic growth strategy, we executed reliably, and we delivered on our commitments Revenue up 4x, Adjusted EBITDA up 6x, Market Cap up 10x since 2017 Continue double-digit rate organic growth Grow VAPS to $400 Accelerate growth through M&
Slide 12: Our scale is a key competitive advantage
12 Our scale is a key competitive advantage and value driver for our customers We leverage our scale to win locally 121M square feet of space relocatable anywhere in North America 4,300 experts safely work over 8M hours annually 680 trucks safely drive 100,000 miles daily 377K+ units deployed over 2
Slide 13: Early innings of expanding our Total Space Solution
13 We are in the early innings of expanding our ‘Total Space Solution’
Slide 14: Total Space Solution – New Project Location
14 Total Space Solution – New Project Location
Slide 15: Total Space Solution – Modular Offices and Essentials
15 Total Space Solution – Modular Offices and Essentials
Slide 16: Total Space Solution – Storage and Essentials
16 Total Space Solution – Storage and Essentials
Slide 17: Total Space Solution – Managed Services
17 Total Space Solution – Managed Services
Slide 18: Total Space Solution
Total Space Solution binge a3 hig WILLSCOT,
Slide 19: Total Space Solution – Completed Project
19 Total Space Solution – Completed Project • 3-year lease duration • 50 bps of average total project cost • First on and last off
Slide 20: Our capabilities are unrivaled across diverse end markets
20 Our capabilities are unrivaled, translate across diverse end markets, and allow us to reposition with end-market demand Industry Segments • 51 units delivered • 7,680 total square feet • 3 months from order to occupancy • 30-month initial lease duration Government / Institutions Commercial / Indu
Slide 21: Our capabilities are unrivaled: PGA Tour Events
21 Our capabilities are unrivaled, translate across diverse end markets, and allow us to reposition with end-market demand Industry Segments Government / Institutions Commercial / Industrial Construction Energy & Natural Resources PGA Tour Events 668 Modular & 104 Storage units (Jan 2020 - Sep 2021)
Slide 22: Our capabilities are unrivaled: data center project
22 Our capabilities are unrivaled, translate across diverse end markets, and allow us to reposition with end-market demand Industry Segments • 101 units delivered • 47,516 total square feet • 2 months from order to occupancy • 30-month+ lease duration Construction Energy & Natural Resources Data Cen
Slide 23: Our capabilities are unrivaled: Target remodels
23 Our capabilities are unrivaled, translate across diverse end markets, and allow us to reposition with end-market demand Industry Segments • 2,804 units delivered • 284 locations across the country • 9.6-month avg. lease duration1 Government / Institutions Retail & Wholesale Trade Construction Ene
Slide 24: Our capabilities are unrivaled: University of California San Diego
24 Our capabilities are unrivaled, translate across diverse end markets, and allow us to reposition with end-market demand Industry Segments • 88 units delivered • 18,000 total square feet • 45 days from order to occupancy • 29-month initial lease duration Government / Institutions Commercial / Indu
Slide 25: Our strengths are compounding to drive predictable value creation
25 Our strengths are compounding to drive predictable value creation We have line of sight to: $1B+ Adjusted EBITDA milestone 45% Adjusted EBITDA Margin 15% Return On Invested Capital $4.00 FCF per share Clear Market Leadership Predictable Reoccurring Lease Revenues Diversified End Markets And Flexi
Slide 26: Our portfolio of growth levers represents nearly $1B of potential opportunity
26 Our portfolio of growth levers represents nearly $1B of potential opportunity Value Added Products and Services (VAPS) Lease Rate Optimization Market Penetration Logistics Recent M&A
Slide 27: Cumulative Capital Generated and Capital Allocation Framework
27 Cumulative Capital Generated1 and Capital Allocation Framework $5B - $6B Over 3 – 5 Years 4 1 Our capital allocation framework is unchanged as growth, cash generation, and reinvestment compound to drive shareholder returns $650M+ Free Cash Flow and 25%+ free cash flow margin $5B+ cumulative capit
Slide 28: Key takeaway: aggressive growth mindset drives value creation
28 Key takeaway: our aggressive growth mindset, enabled by best-in-class execution, drives shareholder and stakeholder value creation Clear line of sight to eclipse $1B Adjusted EBITDA in 3+ years Growth initiatives are within our control Continue our best-in-class execution Technology, sustainabili
Slide 29: Growth Initiatives
29 Growth Initiatives Tim Boswell President & Chief Financial Officer
Slide 30: Portfolio of growth levers with pathways to exceed $1B Adjusted EBITDA
30 Value Added Products and Services (VAPS) Lease Rate Optimization Market Penetration Logistics Recent M&A MODULAR STORAGE RANGE ($M) Our portfolio of growth levers gives us attractive optionality and multiple pathways to exceed $1B Adjusted EBITDA in 3 to 5 years $160 - $355 $135 - $180 $75 - $200
Slide 31: VAPS drive customer value and profitable growth
31 Value Added Products and Services (VAPS) drive customer value, differentiation from competition, and profitable growth Data Package Planning Package Lateral File Cabinet 50” Flat Screen Professional Workstation Package Premium Conference Package Entrance Ramp VAPS Lease Rate Optimization Market P
Slide 32: VAPS progression steady and predictable over nine years
32 VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A Our VAPS progression has been steady and predictable over nine years, as we doubled our volume of units on rent 46 49 51 51 50 56 65 65 66 75 85 86 83 91 93 96 95 98 104 104 106 115 124 124 120 125 126 127 134 143 150 153 155 16
Slide 33: Raising VAPS milestone to $600 per unit per month
33 1 Full year data in 2015 and rolling 13 weeks as of September 13, 2021, respectively VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A Our sales team consistently achieves VAPS rates greater than $400, so we are raising our new VAPS milestone to $600 per unit per month $0 $100
Slide 34: Multiple levers to create value within VAPS
34 We have multiple levers to create value within the VAPS offering Increased Penetration Rate Optimization Inventory Management Revamped Training Program Improved Quoting Tools & CRM Continuous Marketing Enhancements Rebalance Rates with Market Conditions Continuous Rate Review & Strategic Assessme
Slide 35: VAPS revenue growth opportunity ~$370M for NA Modular
35 VAPS revenue growth opportunity is ~$370M for modular units in NA Modular ~$150M incremental revenue from convergence to $382 LTM delivered rate over next 3 years – ~28% Revenue CAGR ~$220M incremental annual revenue once portfolio converges to $600 milestone rate – ~27% Revenue CAGR over next 5
Slide 36: Ready-to-Work offering for Ground Level Offices
36 We’ve rolled out our Ready-to-Work offering for Ground Level Offices in NA Storage Canopies Premium Office Basic Conference Planning Package Data Wiring Insurance Café Package
Slide 37: VAPS opportunity ~$50M for GLOs in NA Storage
37 VAPS revenue growth opportunity is ~$50M for modular units (GLOs) in NA Storage VAPS Future Revenue Potential1 $/unit 32 275 243 Current VAPS AMR / UOR Upside Milestone Rate 1 As reported results as of Q3 2021 2 Excludes managed services VAPS Lease Rate Optimization Market Penetration Logistics R
Slide 38: Ready-To-Work storage solution
38 Now we are introducing an innovative Ready-To-Work storage solution Integral Tool Racking Storage Desk & Charging Station Fully Collapsible for Versatile Storage Heavy Duty Capacity VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A
Slide 39: VAPS opportunity ~$50M for portable storage units
39 VAPS revenue growth opportunity is ~$50M for portable storage units in NA Storage 1 As reported results as of Q3 2021 2 Primarily existing insurance program offering 11 40 29 Current VAPS AMR / UOR² Upside Milestone Rate VAPS Future Revenue Potential1 $/unit VAPS Lease Rate Optimization Market Pe
Slide 40: Decade-long rate optimization journey
40 Modular Space Average Monthly Rate Per Unit NA Modular Segment, Excluding VAPS VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A We are on a decade-long rate optimization journey that will continue indefinitely 284 344 603 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q
Slide 41: NA Modular rate convergence ~$120M revenue opportunity
41 NA Modular rate convergence opportunity is ~$120 million of revenue over three years 603 721 118 Current Core Pricing AMR / UOR Convergence LTM Delivered Rate Rate Optimization Future Revenue Potential1 $/unit 1 As reported results as of Q3 2021 VAPS Lease Rate Optimization Market Penetration Log
Slide 42: Prioritizing rate optimization technology across revenue streams
42 We are prioritizing where to implement rate optimization technology tools in our other revenue streams beyond NA Modular Unit Leasing Technology-Enabled 1 As of Q3 2021 16+ revenue streams with distinct pricing decisions Only 1 revenue stream is technology enabled (NA Modular Unit Leasing, repres
Slide 43: Portable storage pricing opportunity for segmentation
43 Portable storage unit pricing presents an opportunity for technology-enabled segmentation - 1 2 3 4 5 6 7 8 9 10 Units (thousands) Pricing Band ($/unit) Widely distributed and decentralized pricing historically for Portable Storage units Demonstrated rate optimization beginning in Q1 2021 from sy
Slide 44: Rate acceleration ~$40M to ~$80M opportunity in NA Storage
44 145 145 155 Q3 19 Q3 20 Q3 21 Rate acceleration represents a ~$40M to ~$80M revenue opportunity in NA Storage Annual Incremental Revenue2 $M Rate CAGR 3 to 5 Years Annual Incremental EBITDA $M ~$80 6% ~$70 ~$40 3% ~$35 144 146 148 Q1 19 Q1 20 Q1 21 1 As reported results as of Q3 2021. Includes an
Slide 45: Combined transaction data show market penetration opportunities
45 Our combined transaction data show where we have market penetration opportunities VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A 3:1 ratio of Storage to Modular UOR exists in overlap end markets WSC current ratio is 1.5 Storage : 1 Modular – Areas with penetration < 3:1 = St
Slide 46: Cross-selling to drive above-market volume growth
46 102 2021 Modular UOR 3 - 5+ Years Modular UOR Cross-selling is an opportunity to drive above-market volume growth Modular Space Units on Rent at End of Q3 20211 NA Modular and NA Storage Segments (in thousands) Portable Storage Units on Rent at End of Q3 20211 NA Modular and NA Storage Segments (
Slide 47: Ratio of storage to modular units in overlap end markets
47 A ratio of 3 Storage Units to 1 Modular Unit exists in our overlap end markets Zip codes1 with ratio greater than 3:1 Zip codes1 with ratio lower than 3:1 Branch locations1 Customer concentration increases at the local level, facilitating surgical targeting VAPS Lease Rate Optimization Market Pen
Slide 48: Multi-year optimization roadmap for sales process
48 Multi-year optimization roadmap for our sales process will drive market penetration VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A 2021 2023+ 2022 Learning Building Maximizing Consolidation Onto Single CRM Intel sharing with limited automation 1) Lead Sharing between Salesfo
Slide 49: Mobile Mini's logistics capabilities provide a roadmap
49 Mobile Mini’s logistics capabilities provide a ‘roadmap’ for continuous improvement NA Storage ~$100M revenue at ~35% EBITDA margin1 NA Modular ~$200M revenue at ~15% EBITDA margin1 Complete In progress VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A In-Sourcing Basic Visuali
Slide 50: Optimization testing in larger branches shows KPI improvement
50 Optimization testing in our larger branches show immediate KPI improvement1 1,128 938 miles 111 96 hours 8 7 trucks 15 12 trips 12-20% KPI Reduction = ~$600 opportunity cost / working day at branch level 15% Increase in moves per day = $1,500 revenue improvement / working day at branch level VAPS
Slide 51: Logistics improvement can impact revenue and margins
51 Continuous improvement of logistics capabilities can impact revenue and margins $25M - $50M EBITDA Increase Increase move and installation charges – 80k moves / year in NA Modular – 380k moves / year in NA Storage Implement handling charges on VAPS Simplify rate methodology Revenue Improvement Co
Slide 52: History of accretive acquisitions and effective integration
52 We have a history of executing smart, accretive acquisitions AND integrating effectively 1 Includes tax benefit VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A Announcement $10M cost synergies 6.8x post-cost synergy $1M cost synergies 5.0x post-cost synergy $60M cost synergie
Slide 53: We add value to any asset we acquire
53 Most importantly, we add value to any asset we acquire 1 Adjusted EBITDA is a non-GAAP measure based on the definition under ModSpace’s credit agreement, defined as net income (loss) before income tax expense, net interest expense, depreciation and amortization adjusted for noncash items consider
Slide 54: Mobile Mini merger on track following same roadmap
54 Our transformational merger with Mobile Mini is on track and following the same roadmap we envisioned 20 months ago $50M Run-Rate Cost Synergies Other SG&A: ~$13M Field Optimization: ~$17M Back Office Optimization: ~$20M WillScot Operations Collaborative Assessment of Integration Planning (Pre-Cl
Slide 55: Consolidated onto SAP, a scalable and efficient acquiror
55 Combined Enterprise Value ~$80M Combined Year 1 EBITDA ~$10M Having consolidated onto SAP, we are a highly scalable and efficient acquiror VAPS Lease Rate Optimization Market Penetration Logistics Recent M&A Closed 4 tuck-in acquisitions since cutting over to SAP in Q2 ~11,500 portable storage un
Slide 56: Tuck-in acquisition candidates are plentiful
56 Tuck-in acquisition candidates are plentiful, reinforce our ability to service customers in any market, provide cost-effective access to long-lived fleet, and are highly accretive Branch density enables superior customer responsiveness and value capture Acquisitions create new operating efficienc
Slide 57: Recent M&A provides earnings tailwinds
57 Our recent M&A provides earnings tailwinds for 2 to 3 years 10.0 55 - 70 22.5 22.5 15.0 Acquired in Q3/Q4 2021 2022 Synergy Build, incl. MINI 2023 Synergy Build, incl. MINI Future Commercial Synergies Total Incremental Contribution Merger Related Adjusted EBITDA Contribution $M 1 30% in run rate
Slide 58: Key takeaway: portfolio of initiatives drives growth for 5+ years
58 Key takeaway: our portfolio of credible initiatives will drive growth for at least 5 years We have a portfolio of growth initiatives within our control They are each highly credible – we’ve executed them before and have tangible proven results In aggregate, these are large in magnitude and long i
Slide 59: Technology
59 Technology Graeme Parkes Chief Information Officer
Slide 60: Successful history of business aligned technology investment
60 We have a successful history of business aligned technology investment 2021 2017 2016 2008 - 2015 2022+ 2020 • Sales Team Enablement • Logistics Management • Rate Optimization • ERP Implementation • Best in Class Integrated Platform • ERP Cutover • Modernized Data Management • Cybersecurity • Mob
Slide 61: Integrated application landscape is best in class
61 Our integrated application landscape is best in class and supports our business strategy LEGACY STATE WillScot Applications Additional applications not listed on this slide. CURRENT STATE WillScot Only Mobile Mini Only Joint Platforms LEGACY STATE Mobile Mini Applications Additional applications
Slide 62: Rationalizing applications to improve efficiency and reduce cost
62 We are in the early stages of rationalizing applications to improve efficiency and reduce cost Standardizing common technology platforms and processes – Increased efficiencies due to consistent utilization of solutions Eliminate redundancy – Identify and remove applications that perform similar o
Slide 63: 2022 harmonization efforts focus on CRM and priorities
63 2022 harmonization efforts will focus on CRM and other high impact priorities Periscope supports territory optimization and sales team alignment Leverage SAP and Salesforce to rationalize and segment customer database Continuous and expanding product development and market penetration Enable furt
Slide 64: Enhanced customer engagement through digitization
64 Enhanced customer engagement through digitization can further differentiate us Digitization of the overall customer experience Expand customer engagement with WSMM Connect Integrated online ordering capabilities On demand contract visibility and service requests Real time invoice review and payme
Slide 65: Logistics opportunity enabled by technology tools
65 Logistics opportunity is enabled by continuous improvement of our technology tools 100,000 daily miles 680 trucks 2,000 daily trips Illustrative Current Routing1 Illustrative Optimized Routing1 1 Analysis conducted at Dallas branch Current Portfolio
Slide 66: Enhanced predictive analytics opportunities
66 Opportunities for enhanced predictive analytics are immediately available 2,000,000+ moves over last 4 years Access to acquisition historical transaction data Insights from end-to-end process data consolidation More historical data than any competitor Improved fleet re-balancing, refurbishment, a
Slide 67: Scalable platform enables efficient M&A and integration
67 Our scalable platform enables highly efficient M&A and integration capabilities Initiate inquiries Significant talks Indications of interest 4 deals closed in Q3/Q4 2021 Robust M&A Pipeline Demonstrated capability of acquired company integration Definition of dedicated integration team using a di
Slide 68: Key takeaway: scalable technology investments underpin growth
68 Key takeaway: our scalable technology investments differentiate WSC and underpin growth Scalable world-class platform Operational efficiencies Customer engagement Ease of acquisition and integration World class analytics 5 4 3 2 1 Market Penetration Recent M&A VAPS Lease Rate Optimization Logisti
Slide 69: Environmental, Social & Governance
69 Environmental, Social & Governance Jamie Bohan Vice President, ESG Hezron Lopez EVP, CHRO & ESG
Slide 70: ESG profile based on inherently sustainable business model
70 Our ESG profile is based on an inherently sustainable business model • 121+ Million sq. ft. of reusable, relocatable space • Own 50%+ of our trucking fleet, insourcing more • More than 4,000 experts, skilled trades, drivers • 275+ branches across 4 countries
Slide 71: ESG profile based on inherently sustainable business model
71 Our ESG profile is based on an inherently sustainable business model • 121+ Million sq. ft. of reusable, relocatable space • Own 50%+ of our trucking fleet, insourcing more • More than 4,000 experts, skilled trades, drivers • 275+ branches across 4 countries
Slide 72: Focus on circular business, communities, and enterprise risk
72 We focus on the circular aspects of our business, our internal and external communities, and managing enterprise risk Environmental Social Governance 72 › Reduce, Reuse, and Recycle are Inherent in our Products › Reduce GHG Emissions as Part of Our Operations › Reduce Waste Delivered to Landfills
Slide 73: Aligned with our customer and employee values
73 ALIGNED WITH OUR CUSTOMER AND EMPLOYEE VALUES MATERIALS Reduce, Reuse, Recycle with our modular and storage units and VAPS CLIMATE Reducing GHG emissions from our owned trucking and yard fleet HEALTH & SAFETY Health & Safety First! At our branches, on the road, and at our customer sites INCLUSION
Slide 74: Business model is sustainable by design – modular space
74 Coming off rent Refurbish Ready to WorkTM Our business model is sustainable by design – modular space • Sustainable by design • Refurbishment • VAPS compound benefits VAPS – Ready to WorkTM 8-9 times over life VAPS warehouse VAPS packages 1 time over life Get ready/refresh Materials Climate Healt
Slide 75: In house refurbishment extends asset lives and improves ROIC
75 In house refurbishment capability extends asset lives and improves ROIC Materials Climate Health & Safety Inclusion & Community Governance
Slide 76: Business model sustainable by design – portable storage
76 Our business model is sustainable by design – portable storage space • Sustainable by design • Repurpose • Adding VAPS to the model Used Containers VAPS – reusable shelving and workspace GLO ready to go to customer Ground Level Office (GLO) Portable Storage Storage ready to go to customer Legacy
Slide 77: Our Flex product reinvents temporary space
77 Our Flex product reinvents temporary space • Panelized product • Occupant health and comfort • Energy efficient FLEXTM Materials Climate Health & Safety Inclusion & Community Governance Industry Segments Government / Institutions Commercial / Industrial Construction Energy & Natural Resources
Slide 78: Our GHG emissions are small, but we can make an impact
78 DIESEL < .025 Diesel Acres of US forests in one year Our emissions Our opportunity Coal-fired power plant in one year >122,000 Fuel Efficiency Alternative Fuels Delivery Trucks Yard Equipment Service Vehicles Contributors to our footprint Emissions reduction actions Our GHG emissions are small, b
Slide 79: Best in class Safety Management System
79 *Consolidated US Total Recordable Incident Rate (TRIR) for LTM relative to 2015 50% TRIR* down At our branches and yards On the road At the job site Get ready for next customer Best in class Safety Management System and innovation protect our stakeholders Materials Climate Health & Safety Inclusi
Slide 80: Opportunities for employees and communities to thrive
80 We deliver opportunities for our employees and communities to thrive GROWING OUR PEOPLE Materials Climate Health & Safety Inclusion & Community Governance
Slide 81: Opportunities for employees to seek upward mobility
81 We deliver opportunities for our employees to amplify their impact and seek upward mobility Entry level Yard Workers, Drivers, Sales Non-traditional candidates from our local communities: Veterans, Second Chance, Minimum Wage, etc GROWING OUR PEOPLE Materials Climate Health & Safety Inclusion & C
Slide 82: Diverse and sophisticated candidates for Board of Directors
82 Materials Climate Health & Safety Inclusion & Community Governance We seek diverse and sophisticated candidates for our Board of Directors WillScot Mobile Mini Board of Directors 30% 10% 60% Gender diverse directors International diverse directors Other directors Leadership Executive experience m
Slide 83: Board governance and oversight helps manage risks
83 Our Board governance and oversight helps us manage and mitigate risks Board of Directors Audit Committee Nominating & Governance Committee Compensation Committee Human Capital Strategy ERM GOVERNANCE AND OVERSIGHT ERM COMMITTEE BUSINESS UNITS & FUNCTIONAL LEADERS ESG Strategy Materials Climate He
Slide 84: Key takeaway: sustainable model enables growth
84 Key takeaway: our sustainable model enables growth and drives stakeholder value Sustainable Business Model Value Creation Focus Scale Amplifies Impact ESG Enables Growth Board Oversight 5 4 3 2 1
Slide 85: Outlook
85 Outlook Tim Boswell President & Chief Financial Officer
Slide 86: Portfolio of growth levers with pathways to exceed $1B Adjusted EBITDA
86 Value Added Products and Services (VAPS) Lease Rate Optimization Market Penetration Logistics Recent M&A MODULAR STORAGE RANGE ($M) Our portfolio of growth levers gives us attractive optionality and multiple pathways to exceed $1B Adjusted EBITDA in 3 to 5 years $160 - $355 $135 - $180 $75 - $200
Slide 87: 2022 Outlook reflects continuation of growth initiatives
87 2022 Outlook reflects continuation of growth initiatives with expanding margins Revenue1 $M Pro Forma Adjusted EBITDA1,2 $M 1,064 1,368 1,925 1,684 1,652 1,870 2,025 2019 2020 2021E 2022 Outlook 258 530 810 599 646 730 850 26.7% 38.8% 39.0% 2019 2020 2021E 2022 Outlook Reported Pro Forma1 Guidanc
Slide 88: Financial profile will continue to strengthen
88 Our compelling financial profile will continue to strengthen as we execute Revenue1 $M Adjusted EBITDA1,3 $M Free Cash Flow Margin1 % Free Cash Flow1 $M - 500 1,000 1,500 2,000 2,500 3,000 3,500 2020 Pro Forma 2021E² 3 to 5 Years - 500 1,000 1,500 2,000 2020 Pro Forma 2021E² 3 to 5 Years 0% 5% 10
Slide 89: Robust free cash flow provides capital to reinvest
89 Our robust free cash flow provides ample capital to reinvest and compound returns 730 1,150 650 420 280 150 70 2021E Adj. EBITDA¹ 3 to 5 Year Growth 3 to 5 Year Adj. EBITDA Net Capex Re-levered Cash Interest NWC² and Tax Free Cash Flow Milestone Illustrative Annual Free Cash Flow $M Incremental C
Slide 90: Organic FCF and capital allocation to more than double FCF/share
90 Organic FCF generation compounded by smart capital allocation provide multiple paths to more than double FCF / Share Capital Allocation Framework $5 – $6B Over 5 Years % 1 Fully-diluted share count using the treasury stock method and share count as of 11/1/2021. 2 Assumes $5.5B of capital availab
Slide 91: Clear formula to drive sustainable growth and returns
91 We have a clear formula to drive sustainable growth and returns Performance Metric 2021E1 3 to 5 Year Operating Range Revenue CAGR 5%2 5 - 10% Adjusted EBITDA Margin 39% 40 - 45% Return On Invested Capital3 10% 10 - 15% Net Debt / Adjusted EBITDA 3.7x4 3.0 - 3.5x Free Cash Flow ($M) $350 $500 - $
Slide 92: Closing Remarks
92 Closing Remarks Brad Soultz Chief Executive Officer
Slide 93: Key takeaway: aggressive growth mindset drives value creation
93 Key takeaway: our aggressive growth mindset, enabled by best-in-class execution, drives shareholder and stakeholder value creation Portfolio of Growth Initiatives Technology Foundation Sustainable Business Model Best in Class Team Driving Value Creation 5 4 3 2 1 1 Midpoint of 2021 guidance 124 7
Slide 94: Company values
94 Dedicated To Health & Safety Committed To Inclusion & Diversity Driven To Excellence Trustworthy & Reliable Devoted To Our Customers Community Focused We take responsibility for our own well-being and for those around us. Health and safety are first, last and everything in-between. We are stronge
Slide 95: Appendix
95 Appendix
Slide 96: Adjusted EBITDA margins have expanded
96 Our Adjusted EBITDA Margins have expanded as we leveraged our scale and best practices across our portfolio Adjusted EBITDA margins have expanded for years Margins display seasonal compression as deliveries increase and we incur incremental variable costs Margins will continue to expand due to sc
Slide 97: Historical Return on Invested Capital
97 Clear formula to drive sustainable growth and returns 5.8% 4.5% 6.6% 9.4% 11.0% - 500 1,000 1,500 2,000 2,500 2017 2018 2019 2020 LTM Q3 2021 Average Invested Capital Adjusted Earnings Before Interest and Amortization Return On Invested Capital Historical Return on Invested Capital1 $M 1 See appe
Slide 98: Reconciliation of non-GAAP measures – Pro Forma Adjusted EBITDA
98 Reconciliation of non-GAAP measures – Pro Forma Adjusted EBITDA (a) Restructuring costs, lease impairment and other related charges include costs associated with restructuring plans designed to streamline operations and reduce costs including employee termination costs. (b) Costs to integrate acq
Slide 99: Reconciliation of non-GAAP measures – Pro Forma Adjusted EBITDA
99 Year Ended December 31, (in thousands) 2018 2017 (Loss) income from continuing operations before income taxes ($13,734) ($165,398) Loss on extinguishment of debt 8,755 – Interest expense 122,504 107,076 Depreciation and amortization 187,074 81,292 Currency (gains) losses, net (688) (12,878) Goodw
Slide 100: Reconciliation of non-GAAP measures – Adj. EBITDA Margin %
100 Reconciliation of non-GAAP measures – Adj. EBITDA Margin % and Pro Forma Adj. EBITDA Margin %(1) Adjusted EBITDA Margin is a non-GAAP measure defined as Adjusted EBITDA divided by Revenue. Management believes that the presentation of Adjusted EBITDA Margin % provides useful information to invest
Slide 101: Reconciliation of non-GAAP measures – Net CAPEX
101 Reconciliation of non-GAAP measures – Net CAPEX Net Capital Expenditures ("Net CAPEX") is defined as purchases of rental equipment and refurbishments and purchases of property, plant and equipment (collectively "Total Capital Expenditures"), less proceeds from sale of rental equipment and procee
Slide 102: Reconciliation of non-GAAP measures – Free Cash Flow
102 Reconciliation of non-GAAP measures – Free Cash Flow and Free Cash Flow Margin Free Cash Flow is a non GAAP measure. Free Cash Flow is defined as net cash provided by operating activities, less purchases of, and proceeds from, rental equipment and property, plant and equipment, which are all inc
Slide 103: Reconciliation of non-GAAP measures – Return on Invested Capital
103 Reconciliation of non-GAAP measures – Return on Invested Capital Return on Invested Capital (ROIC): is defined as adjusted earnings before interest and amortization divided by net assets. Adjusted earnings before interest and amortization is the sum of net income (loss) before income tax expense
Slide 104: WillScot + Mobile Mini Holdings Corp
WILLSCOT + MOBILE MINI HOLDINGS CORP [emuscor] | mobile mini | min
WillScot Mobile Mini Holdings — Investor Day (November 2021) on 6ix