Slide 1: Ambition with Purpose: Full Year Results
AMBITION WITH PURPOSE FULL YEAR RESULTS 14 June 2022
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 prospective investors in the secondary markets about the these forward looking statements are discussed in the Group and does not constitute an offer of securities or Princ
Slide 3: Highlights
HIGHLIGHTS ▪ Record performance demonstrating the strength in our model and ongoing momentum across the business ▪ North American rental revenue 23% ahead of last year (Q4: +27%) ▪ Profit before tax 1 of $1.8bn (2021: $1.3bn) and EPS 1 of 307ȼ (2021: 219ȼ) ▪ 123 locations added in North America, of
Slide 4: Dedicated team members delivering for all our stakeholders
DEDICATED TEAM MEMBERS DELIVERING FOR ALL OUR STAKEHOLDERS Safety Engagement ▪ Engage for Life: from programme to cultural ▪ Highly engaged workforce from skilled trade to leadership1 ▪ TRIR less than 1.0 in North America ▪ Employee Resource Groups: ▪ Differentiating factor for our customers ▪ Diver
Slide 5: 2022/23 Outlook
2022/23 OUTLOOK Guidance Rental revenue1 - US 13% to 16% - Canada 15% to 18% - UK2 -5% to -2% - Group 12% to 14% Capital expenditure (gross)3 $3.3 – 3.6bn - of which, rental fleet is: $2.7 – 3.0bn Free cash flow3 c. $300m 1 Represents year-over-year rental revenue growth at constant currency 2 UK to
Slide 6: Financial Review
FINANCIAL REVIEW MICHAEL PRATT 6 Full year results ¦ 30 April 2022
Slide 7: Group Full Year Results
GROUP FULL YEAR RESULTS $m 2022 2021 Change1 Revenue 7,962 6,639 19% ‐ of which rental 7,235 5,902 22% Operating costs (4,353) (3,602) 20% EBITDA 3,609 3,037 18% Depreciation (1,553) (1,458) 6% Operating profit 2,056 1,579 30% Net interest (232) (263) -12% Profit before amortisation, exceptional ite
Slide 8: US Full Year Results
US FULL YEAR RESULTS $m 2022 2021 Change Revenue 6,477 5,418 20% ‐ of which rental 6,042 4,933 22% Operating costs (3,356) (2,783) 21% EBITDA 3,121 2,635 18% Depreciation (1,269) (1,190) 7% Operating profit 1,852 1,445 28% Margins ‐ EBITDA 48% 49% ‐ Operating profit 29% 27% Return on investment 25%
Slide 9: Canada Full Year Results
CANADA FULL YEAR RESULTS C$m 2022 2021 Change Revenue 626 501 25% ‐ of which rental 569 436 30% Operating costs (345) (282) 22% EBITDA 281 219 29% Depreciation (137) (121) 14% Operating profit 144 98 47% Margins ‐ EBITDA 45% 44% ‐ Operating profit 23% 20% Return on investment 20% 16% The results in
Slide 10: UK Full Year Results
UK FULL YEAR RESULTS £m 2022 2021 Change Revenue 726 635 14% ‐ of which rental 544 481 13% Operating costs (511) (442) 16% EBITDA 215 193 11% Depreciation (128) (132) -3% Operating profit 87 61 43% Margins ‐ EBITDA 30% 30% ‐ Operating profit 12% 10% Return on investment 14% 10% The results in the ta
Slide 11: Cash Flow
CASH FLOW FULL YEAR RESULTS $m 2022 2021 EBITDA 3,609 3,037 Cash conversion ratio1 94% 99% Cash inflow from operations2 3,406 3,017 Replacement and non-rental capital expenditure (1,228) (892) Rental equipment and other disposal proceeds received 369 403 Interest and tax paid (450) (643) Cash inflow
Slide 12: Net Debt
NET DEBT Leverage (excluding impact of IFRS 16) $m 2022 2021 2.5 2.4 Opening net debt 5,801 6,764 Change from cash flows 894 (1,376) 2.0 2.0 1.9 1.8 1.8 1.8 Translation impact (47) 130 1.7 1.7 1.6 Debt acquired 132 25 1.5 1.4 1.5 New lease liabilities 362 247 Deferred debt raising cost amortisation
Slide 13: Operational Review
OPERATIONAL REVIEW BRENDAN HORGAN 13 Full year results ¦ 30 April 2022
Slide 14: US Trading
US TRADING Rental revenue1 ▪ Strong growth and sequential momentum in General Tool, while Specialty delivers another exceptional FY21 FY22 performance, aided by the Mahaffey and ComRent acquisitions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY General tool -9% -7% -4% +7% -4% +14% +13% +19% +23% +17% ▪ Very strong
Slide 15: Specialty Trading
SPECIALTY TRADING Rental revenue growth1 ▪ Unique portfolio of Specialty businesses take advantage of ongoing growth opportunities in lowly penetrated markets Q1 Q2 Q3 Q4 FY Power and HVAC +24% +22% +30% +35% +27% ▪ Early stages of structural change serving large and broad range Climate Control and
Slide 16: US Non-Construction
US NON-CONSTRUCTION ▪ Specialty business activity serves as a proxy for non-construction market strength MAINTENANCE, REPAIR AND OPERATIONS OF THE GEOGRAPHICAL MARKETS WE SERVE ▪ Continuous need for maintenance repair and operation in a market ▪ $340bn facility maintenance market; 100bn sq. ft. unde
Slide 17: US Construction Outlook
US CONSTRUCTION OUTLOOK Dodge construction starts 2019 2020 2021 2022 2023 2024 2025 300 Indexed: 2000=100 Construction put in place ($bn) 250 Non-residential 546 540 515 594 643 685 715 200 Non-building 292 291 291 286 300 329 352 150 Construction (excl. resi) 838 831 806 880 943 1,014 1,067 Reside
Slide 18: Mega sized projects powering construction landscape
MEGA SIZED PROJECTS POWERING CONSTRUCTION LANDSCAPE Store and warehouses Offices, healthcare and data centres Construction starts (millions of square feet) Total building starts ($bn) ▪ Projects over $400 million 700 60.0 represent ever increasing 600 50.0 proportion of total spend 500 400 40.0 (30%
Slide 19: Canada Trading
CANADA TRADING Fleet on rent (excluding Lighting, Grip and Lens) ▪ Growth driven by General Tool business, aided by developing Specialty businesses ▪ Strong demand and supply constraints contributing to record utilisation and favourable rate environment ▪ Sunbelt 3.0 plan progressing well, with clus
Slide 20: UK Trading
UK TRADING Fleet on rent ▪ Strong performance driven by: ▪ Share gains in broad end markets ▪ COVID-19 response efforts; DoH testing sites closed from April 2022 ▪ Op-X programme and ROC model ▪ End market strength in infrastructure, private housing and repair, May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 21: Sunbelt 3.0: Strategic Growth Plan
SUNBELT 3.0: STRATEGIC GROWTH PLAN ROLLED OUT ACROSS THE BUSINESS AND PROGRESSING WELL Actionable Progress component 1 GROW GENERAL TOOL & ADVANCE OUR CLUSTERS ▪ Opened 88 greenfield locations in North America in the year, of which 72 were Specialty ▪ 25 bolt-on acquisitions completed, adding 35
Slide 22: Specialty Market Sizing, Rental Penetration & Share
SPECIALTY MARKET SIZING, RENTAL PENETRATION & SHARE REVENUE WILL GROW BY $1BN IN 3.0 WITH AMPLE OPPORTUNITY BEYOND CURRENT, PROJECTED AND ILLUSTRATIVE RENTAL BY BUSINESS LINE, $M FY21 total rental Incremental projected FY24 total rental via existing locations and greenfields Incremental illustrative
Slide 23: Update on Specialty Businesses
UPDATE ON SPECIALTY BUSINESSES TEMPORARY STRUCTURES LOAD BANKS ▪ Mahaffey, leading provider of temporary structures and ▪ ComRent, market leading load banks provider, acquired shelter solutions in the US, acquired December 2021 February 2022 ▪ Turn-key solutions from design and engineering, project
Slide 24: Delivered a strong year despite uniquely challenging dynamics
DELIVERED A STRONG YEAR DESPITE UNIQUELY CHALLENGING DYNAMICS RENTAL IS POSITIONED WELL TO BENEFIT Dynamic Anticipated duration Our advantage SUPPLY CHAIN ▪ Partnership and trust with OEMs CONSTRAINTS 12 – 18 months ▪ Sunbelt 3.0 fleet plans THESE DYNAMICS ARE ALL ▪ Financial strength TAILWINDS TO R
Slide 25: Our business and industry has changed fundamentally
OUR BUSINESS AND INDUSTRY HAS CHANGED FUNDAMENTALLY STRUCTURAL CHANGE HAS PROGRESSED 30.0% 20.0% 10.0% 0.0% Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 -10.0% GFC: 30% rental Ten years of growth -20.0% revenue decline CAGR: 18% peak to tro
Slide 26: Group Fleet Plan
GROUP FLEET PLAN 2021 2022 2023 Actual Actual Guidance1 US ($m) - rental fleet 576 1,625 2,400 – 2,600 - non-rental fleet 102 321 500 678 1,946 2,900 – 3,100 Canada (C$m) - rental fleet 79 201 200 – 230 - non-rental fleet 17 39 80 96 240 280 – 310 UK (£m) - rental fleet 132 158 130 – 150 - non-renta
Slide 27: Capital Allocation
CAPITAL ALLOCATION CONSISTENTLY APPLIED POLICY CONTINUES CLEAR PRIORITIES APPLICATION Organic fleet growth ▪ Same-store ▪ $2.4bn invested in the business ▪ Greenfields ▪ 88 greenfields opened in North America ▪ $1.3bn spent on bolt-ons, with 35 locations added Bolt-on acquisitions ▪ Good pipeline wi
Slide 28: Summary
SUMMARY ▪ Clear momentum, with strong positions in each of our markets ▪ Recent and forecast mega project starts demonstrate strength in activity levels which, when coupled with supply constraints, favour the larger providers ▪ Sunbelt 3.0 initiatives progressing well, with 123 locations added in th
Slide 29: Appendices
APPENDICES 29 Full year results ¦ 30 April 2022
Slide 30: Divisional Performance: Fourth Quarter Results
DIVISIONAL PERFORMANCE FOURTH QUARTER RESULTS Revenue EBITDA Profit 2022 2021 Change1 2022 2021 Change1 2022 2021 Change1 UK (£m) 179 191 -6% 50 57 -13% 15 22 -31% Canada (C$m) 163 144 13% 70 65 7% 33 34 -2% US 1,713 1,383 24% 786 643 22% 439 339 29% UK ($m) 236 262 -10% 65 79 -16% 20 30 -34% Canada
Slide 31: Divisional Performance: Twelve Months
DIVISIONAL PERFORMANCE TWELVE MONTHS Revenue EBITDA Profit 2022 2021 Change1 2022 2021 Change1 2022 2021 Change1 UK (£m) 726 635 14% 215 193 11% 87 61 43% Canada (C$m) 626 501 25% 281 219 29% 144 98 47% US 6,477 5,418 20% 3,121 2,635 18% 1,852 1,445 28% UK ($m) 986 838 18% 291 254 15% 118 80 47% Can
Slide 32: Robust and Flexible Debt Structure
ROBUST AND FLEXIBLE DEBT STRUCTURE $5,000m ▪ In August, refinanced $600m 4.125% notes and Undrawn $600m 5.25% notes with two investment grade notes: $4,000m Drawn Notes ▪ $550m 1.5% notes due 2026 $3,000m ▪ $750m 2.45% notes due 2031 $2,000m ▪ and closed increased $4.5bn ABL facility and extended ma
Slide 33: US Fleet Profile
US FLEET PROFILE ▪ Smooth fleet profile ▪ Benefits of prolonged cycle and our growth strategy ▪ Strong position providing optionality through the cycle ▪ Flexibility to turn replacement into growth and vice versa ▪ Strengthens partnership with suppliers through predictability 33 Full year results ¦
Slide 34: US Industry Fleet
US INDUSTRY FLEET Industry fleet (OEC) Industry fleet Industry fleet 3% smaller 9% larger year-over-year year-over-year Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Source: Rouse Analytics (May 2021) 2019/20 2020/21 34 Full year results ¦ 30 April 2022
Slide 35: Cash Flow Funds All Fleet Investment
CASH FLOW FUNDS ALL FLEET INVESTMENT ($m) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 EBITDA before exceptional items 3,609 3,037 3,008 2,748 2,319 1,947 1,769 1,452 1,098 817 607 444 409 597 730 593 399 316 EBITDA margin 45% 46% 47% 47% 47% 47% 46% 45%
Slide 36: $2,537m of Availability at 30 April 2022
$2,537M OF AVAILABILITY AT 30 APRIL 2022 Book value Borrowing base Senior debt $10,238m (April 21: $8,809m) $1,174m $7,755m Calculation: (April 21: $6,359m) Inventory – 50% of book $964m value Receivables – 85% of net eligible receivables $8,411m Fleet and vehicles – 85% of net appraised market valu
Slide 37: Debt and Covenants
DEBT AND COVENANTS Facility Interest rate Maturity $4.5bn first lien revolver LIBOR + 125-150 bps August 2026 $550m senior notes 1.500% August 2026 Debt $600m senior notes 4.375% August 2027 $600m senior notes 4.000% May 2028 $600m senior notes 4.250% November 2029 $750m senior notes 2.450% August 2
Slide 38: Location Growth During 3.0
LOCATION GROWTH DURING 3.0 CLEARLY DEFINED April 2021* 936 Sunbelt 3.0 +298 April 2024 1,234 April 2021 Sunbelt 3.0 – May 2021 – April 2024 * Excludes two Sunbelt 3.0 locations opened in April 2021 38 Full year results ¦ 30 April 2022
Slide 39: Benefits of clustered markets are demonstrable
BENEFITS OF CLUSTERED MARKETS ARE DEMONSTRABLE THE STRATEGY REVENUE COMPOSITION CLUSTER VS. NON-CLUSTER Comparison to similar sized Metric / KPI non-clustered markets1 30% Active customer count 2.2x customers 70% Revenue 15% more revenue per customer Broaden customer base Clustered DMAs Time utiliza
Slide 40: Environmental Roadmap
ENVIRONMENTAL ROADMAP INITIATIVES ON THE PATH TO 35X30 NEAR TERM: 3.0 PERIOD MEDIUM LONG TERM TARGET: 15% BY 2024 TERM GOAL: 35% BY 2030 Retrofit of heating and hot Migration to alternative 1 water infrastructure energy for HGVs/tractors 2 Step change in 3 service/sales vehicle All new vehicles use
Slide 41: Case study of partnering in innovation
CASE STUDY OF PARTNERING IN INNOVATION OUR SCALE, RESOURCE AND INTELLECTUAL CAPITAL IS A CAPABLE AND NECESSARY CONTRIBUTOR ▪ Partnership with Bobcat Company in the production and launch of the world’s first fully electric compact track loader ▪ Extensive collaboration in concept, testing, customer a
Slide 42: US Market Share
US MARKET SHARE 2010 2022 Future 5% 4% 3% 16% 20%+ 3% 6% 44% 12% All others 13% 4% One or two 66% others 7% 17% United Rentals Sunbelt RSC Herc Rentals Top 4-10 Top 11-100 Other Two or three have 50%+ of the market 42 Full year results ¦ 30 April 2022
Slide 43: Key metrics through the cycle
IMPORTANT TO NOT LOSE SIGHT OF THROUGH THE CYCLE KEY METRICS Group RoI Group EBITDA margin Group adjusted EPS % % ȼ 19 19 20 19 50 46 47 47 47 47 46 350 18 45 45 18 17 18 18 45 42 307 16 300 15 15 38 38 16 15 40 14 35 35 33 34 14 13 35 250 227 222 219 12 30 30 12 30 200 171 10 10 25 8 7 20 150 128 1