United Rentals, Inc. · NYSE:URI

United Rentals — Q3 2018 Earnings Presentation

52 slides from United Rentals's earnings presentation, October 2018

1. Slide 1: Third Quarter 2018 Investor Presentation (Corrected)

   Third Quarter 2018 Investor Presentation (Corrected) Managing Key Value Drivers to Maximize Full Cycle Returns United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

2. Slide 2: Introductory Information

   Introductory Information Unless otherwise specified, the information in this presentation, including forward-looking statements related to our outlook, is as of our most recent earnings call held on October 18, 2018. We make no commitment to update any such information contained in this presentation

3. Slide 3: Contents

   Contents 1. Introduction 2. End-Market Overview 3. Company Overview 4. Summary of Key Financial Data 5. Appendix United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved. 3

4. Slide 4: Introduction

   1 Introduction United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

5. Slide 5: Maximizing value creation across the cycle

   Maximizing value creation across the cycle by balancing growth, margins and free cash flow to drive returns Aggressive management of key value drivers within our control 5

6. Slide 6: Company overview

   Company overview #1 U.S. Market Share(1) • 2017 total revenue $6.6 billion (+15.3% Y/Y) • 2017 adjusted EBITDA(2) $3.16 billion (+14.7% Y/Y; 47.6% margin) United 1,075 locations across North America(3) (4) Rentals • 944 branches in the U.S.; locations in 49 of 50 states Other 11% 79% • 131 branches

7. Slide 7: Our customers and the benefits of renting vs. owning

   Our customers and the benefits of renting vs. owning Customer Mix* Why Customers Rent Instead of Buy Other • Manage risk • Municipalities • Control expenses and inventory • Government Industrial / • The right equipment for any job Agencies 4% non-construction • 24/7 customer care • Homeowners • Oil

8. Slide 8: Branch locations

   Branch locations Total branch count: 1,086(1) • General Rentals: 756 locations • Specialty: 330 locations(2) Largest U.S. states by number of locations(1) • Texas: 149 • California: 97 • Florida: 58 • Louisiana: 46 • Georgia: 39 Largest and broadest footprint in North America (1) As of September 30,

9. Slide 9: Diverse end-market exposure

   Diverse end-market exposure Non-Res Construction Infrastructure Residential Upstream O&G Midstream O&G 2017 Revenue Downstream O&G by Vertical Chemical Processing Power Industrial Manufacturing Metals & Minerals Consumer-related All Other Broad customer base helps reduce volatility United Rentals, I

10. Slide 10: A decade of continued financial improvement

    A decade of continued financial improvement Total Revenue Adjusted EBITDA(1) Adjusted EPS(1) $7,000M $3,500M $12 CAGR $6,000M 6.0% $3,000M CAGR $10 10.4% CAGR $5,000M $2,500M $8 14.8% $4,000M $2,000M $6 $3,000M $1,500M $4 $2,000M $1,000M $1,000M $500M $2 $0 $0 $0 (2) 2007 2012 2017 2007 2012 2017 20

11. Slide 11: End-market overview

    2 End-market overview United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

12. Slide 12: U.S. equipment rental industry overview

    U.S. equipment rental industry overview Combined U.S. General Rental and Construction & Industrial Equipment The U.S. equipment rental market has outgrown its Rental Market Size ($bn) underlying market by over 50% in the last 20 years 400% Indexed Growth: US Equipment Rental Market Indexed Growth: T

13. Slide 13: Real total U.S. construction spending climbing

    Real total U.S. construction spending climbing $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

14. Slide 14: Consensus forecast for U.S. construction put-in-place

    Consensus forecast for U.S. construction put-in-place Year-over-Year Percent Change 2018 2019 Commercial Total 6.7% 3.4% Office 6.6% 4.1% Retail and Other Commercial 6.3% 2.7% Lodging/Hotel 7.9% 3.6% Industrial Total -0.1% 4.9% Institutional Total 4.5% 4.5% Healthcare 4.7% 4.4% Education 4.0% 5.2% N

15. Slide 15: Company overview

    3 Company overview United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

16. Slide 16: Growth and margin opportunities

    Growth and margin opportunities Revenue Related Cost and Margin Related • Capitalize on ongoing secular shift • Further leveraging of LEAN towards rental over ownership • Optimization of operating costs (COR & SG&A) • Leverage cross-selling to capture more • Continual improvement of labor productivi

17. Slide 17: People & Culture as Differentiating Assets

    People & Culture as Differentiating Assets • Highly engaged, committed and diverse workforce • Very strong engagement across all categories inline or better-than Towers Watson US High Performing Company Benchmark • Industry leading low-turnover rate, which helps drive better customer experience via

18. Slide 18: Competitive positioning aided by structural advantages

    Competitive positioning aided by structural advantages Size, Breadth and Benefits of Scale, Investments in Diversity of Fleet Scope & Diversification Technology Strong Balance Strong Culture Focused Proven Sheet + Cash Flow on Customers & Shareholders Management Team Focus on driving and extending o

19. Slide 19: Project XL: Growth and margin improvement initiatives

    Project XL: Growth and margin improvement initiatives Revenue Related Projects Cost/Efficiency-Related Projects Targeted vertical strategies Labor productivity Cross-sell Fleet efficiency Sales optimization Branch productivity / fixed cost leverage Customer owned equipment SG&A $200M of annualized b

20. Slide 20: Online digital strategy

    Online digital strategy Attract new customers Accelerate new business Extend service offerings • Convenience • Simplified experience • Telematics • Availability • Full visibility • Training • Flexibility • Audit Trail • Integration • Consumption 11,000 new online $180 million of 200+ customer benchm

21. Slide 21: Total Control: Consumption management technology

    Total Control®: Consumption management technology TC user aggregated annual rental revenue 2017 Total Revenue $1,400M 35% $1.27 billion from TC Customers $1,200M 30% $1,000M 25% $800M 20% 2017 TC Customers Organic Revenue +10% $600M 15% Growth $400M 10% $200M 5% 2017 % TC Customer $0 0% Online Order

22. Slide 22: Telematics & FAST

    Telematics & FAST Field Automation Telematics & Related Technologies Systems & Technologies (FAST)  Internal Benefits:  Internal Benefits: – Performance monitoring and service alerts – Increased driver and dispatcher productivity – More efficient location and pick-up capabilities – Improved fleet

23. Slide 23: Specialty offers high margins and attractive returns

    Specialty offers high margins and attractive returns Trench Safety Power & HVAC Fluid Solutions(1) Tool Solutions • Excavation support • Complete solutions for mobile • Full range of pumps, tanks, • Tool trailers stocked with solutions, confined space entry power and air flow hoisting, torqueing, pi

24. Slide 24: Specialty provides strong growth opportunities

    (1) Specialty provides strong growth opportunities $1,532M $1,254M $278M +39% Fluid $552M Solutions $1,021M $931M $823M $471M $297M 2012 2013 2014 2015 2016 2017 BakerCorp Pro Forma 2017 2017 Specialty as a % Total Revenues 7.2% 9.5% 14.5% 16.0% 17.7% 18.9% 23.1% Specialty Represented ~23% of Pro Fo

25. Slide 25: Capital allocation strategy

    Capital allocation strategy Manage Return Excess Leverage Invest in Growth Cash to Stockholders • Target leverage range over • Completed $1 billion share the cycle of 2.5x–3.5x Organic M&A repurchase program in June • Net leverage(1) of 2.7x 2018. • Continued organic • Balance sheet strategy at Sept

26. Slide 26: M&A strategy: Disciplined and opportunistic

    M&A strategy: Disciplined and opportunistic Strategic Financial Cultural • Proactively supports growth in • Invest capital at attractive returns • Safety attractive markets over cycle • Talent • Difficult to replicate organically • Revenue growth • Margin opportunities • Ethics and integrity • Acces

27. Slide 27: Record of value creation through M&A

    Record of value creation through M&A With 20 years of execution experience for 275+ transactions, team has successfully integrated assets in different environments and across the spectrum from bolt-ons to transformational RSC (2012) National Pump (2014) NES (2017) Neff Rentals (2017) BakerCorp (2018

28. Slide 28: BlueLine Acquisition: Transaction highlights

    BlueLine Acquisition: Transaction highlights (pending) • Consistent with United Rentals’ “Grow the Core” strategy and recent acquisitions of NES and Neff Rentals: Strategic • Increases efficiencies of scale with an attractive footprint of 114 locations across major markets in the U.S., Canada, and P

29. Slide 29: Summary of key financial data

    4 Summary of key financial data United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

30. Slide 30: Key financial results snapshot

    Key financial results snapshot Total Revenue ($M) Adjusted EBITDA(1) ($M) Adj. Earnings per Share(1,2) 2012-2017 CAGR: 2018 Implied Growth: 2012-2017 CAGR: 2018 Implied Growth: 2012-2017 CAGR: 23.0% +10.0% +17.8% +12.3% +19.8% $12 $9,000 $4,000 $10 $8,000 $3,500 $7,000 $8 $3,000 $6,000 $2,500 $5,000

31. Slide 31: Structural changes are key to increased margins

    Structural changes are key to increased margins Adjusted EBITDA Margin (%) Key Drivers of Margin Gains Adjusted EBITDA margins ~1,600 bps above prior peak 60% • Strong fixed-cost absorption • Cyclical leverage (e.g., SG&A as % of sales) 50% • M&A cost synergies (e.g., RSC, NES, Neff) 40% • Operation

32. Slide 32: Consistent free cash flow generation

    Consistent free cash flow generation Free Cash Flow($M)(1) 10-Yr Average 5-Yr Average $1,600 $1,400 $1,300 $1,195 $1,200 $983 $1,000 $924 $800 $574 $600 $421 $400 $335 $367 $227 $200 $23 $- $(73) $(200) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F (2) $4.1B of free cash flow generated ove

33. Slide 33: Summary of 3Q Results

    Summary of 3Q Results • $2.116 billion (19.8% Y/Y as reported; +8.7% Y/Y Total Revenue pro forma*) Adjusted EBITDA** • $1.059 billion (50.0% margin; +20 bps Y/Y) • $1.484 billion, after gross purchases of $1.962 Net Rental Capital Expenditures (YTD) billion Net Cash Provided by Operating Activities

34. Slide 34: 2018 Financial outlook

    2018 Financial outlook Total Revenue • $7.77B to $7.87B Adjusted EBITDA* • $3.765B to $3.815B • $1.35B to $1.45B, after gross purchases Net Rental Capital Expenditures*** of $2.0B to $2.1B Net Cash Provided by Operating Activities*** • $2.725B to $2.875B Free Cash Flow* • $1.25B to $1.35B** *Adjuste

35. Slide 35: Fleet overview: Large and diverse rental fleet

    Fleet overview: Large and diverse rental fleet Historical Fleet Size OEC ($bn) 12.9 11.5 8.4 8.7 9.0 7.2 7.7 Booms Earth Trench Total/ Forklifts and Lifts Moving and Other Average 3Q18 2012 2013 2014 2015 2016 2017 % of 3Q18 Rental Rev. 31.6% 13.8% 18.8% 35.8% Fleet Composition Time Utilization* 74.

36. Slide 36: OEC-on-rent progression

    OEC-on-rent progression $10,000 Baker acquisition July 31, 2018 $9,000 $8,000 Neff acquisition $7,000 October 2, 2017 NES acquisition April 4,2017 $6,000 $5,000 $4,000 $3,000 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 2015 2016 2017 2018 Solid OEC-on-rent growth of 7.4%

37. Slide 37: Rental rates

    Rental rates Monthly Sequential Pricing Year-Over-Year Pricing 2016 2017 2018 2017 2018 2018 Pro Forma* January (0.4%) (0.5%) (0.2%) January (1.8%) +1.5% +2.3% February (0.8%) (0.5%) (0.2%) February (1.5%) +1.8% +2.4% March (0.7%) (0.2%) +0.2% March (0.9%) +2.2% +2.7% (1) April (0.2%) (0.7%) +0.1% A

38. Slide 38: Time utilization

    Time utilization Time Utilization: As Reported Time Utilization: Pro Forma* 2017 2018 YoY 2017 2018 YoY January 64.1% 63.6% (50 bps) January 62.9% 63.2% +30 bps February 65.9% 65.2% (70 bps) February 64.5% 64.8% +30 bps March 68.1% 66.8% (130 bps) March 66.3% 66.4% +10 bps April 68.6% 68.4% (20 bps)

39. Slide 39: Balance sheet strength continues to improve

    Balance sheet strength continues to improve (1) Leverage Ratio Actual Forecast (2) 4.6x (3) 3.6x (4) 3.0x 2.9x 2.9x 2.8x 2.7x ~2.5x 2011 2012 2013 2014 2015 2016 2017 2018F 2.5x – 3.5x targeted leverage range across the cycle (1) Leverage Ratio calculated as total debt and QUIPs, net of cash, exclud

40. Slide 40: No maturities of long-term debt until 2023

    No maturities of long-term debt until 2023 ($M) $3,000 Total Liquidity of $910M*** $836 ABL Unused Fixed vs. Floating Ratio: 70%/30% $1,673 $1,550 $750 4.625% $2,164* $875 Senior ABL Used $1,000 Unsecured $1,000 $1,000 $9 A/R Unused $850 Notes 4.875%** 4.625% 5.75% $800 5.875% 5.5% Senior $866 A/R S

41. Slide 41: Appendix

    5 Appendix United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.

42. Slide 42: Adjusted Earnings Per Share GAAP Reconciliation

    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 amortization, impact on depreciation related to acquire

43. Slide 43: EBITDA and Adjusted EBITDA GAAP Reconciliations

    EBITDA and Adjusted EBITDA GAAP Reconciliations EBITDA represents the sum of net income, provision for income taxes, interest expense, net, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the merger related costs, rest

44. Slide 44: Reconciliation of Net Cash Provided by Operating Activities

    Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Adjusted EBITDA The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA. Nine Months Three Months Ended Ended September 30, September 30, $ Millions 2018 2017

45. Slide 45: Free Cash Flow GAAP Reconciliation

    Free Cash Flow GAAP Reconciliation We define “free cash flow” as net cash provided by operating activities less purchases of, and plus proceeds from, equipment. The equipment purchases and proceeds are included in cash flows from investing activities. Management believes that free cash flow provides

46. Slide 46: Historical Adjusted Earnings Per Share GAAP Reconciliation

    Historical Adjusted Earnings Per Share GAAP Reconciliation Adjusted EPS (earnings per share) is a non-GAAP measure that reflects diluted earnings (loss) per share from continuing operations excluding the impact of the special items (determined at the time of the historic reporting) described below.

47. Slide 47: Historical Adjusted Earnings Per Share GAAP Reconciliation (cont'd)

    Historical Adjusted Earnings Per Share GAAP Reconciliation (cont’d) (1) We have made a number of acquisitions in the past and may continue to make acquisitions in the future. Merger related costs only include costs associated with major acquisitions that significantly impact our operations. The acqu

48. Slide 48: Historical EBITDA and Adjusted EBITDA GAAP Reconciliations

    Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($M) EBITDA represents the sum of net income (loss), loss on discontinued operations, net of tax, provision (benefit) for income taxes, interest expense, subordinated convertible debentures, net, depreciation of rental equipment, and non-ren

49. Slide 49: Historical EBITDA and Adjusted EBITDA Reconciliations (cont'd)

    Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($M) (cont’d) YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net cash provided by operating activities (11) $ 438 $ 452 $ 612 $ 721 $ 1,551 $ 1,801 $ 1,987 $ 1,941 $ 2,209 $ 2,123 Adjustments for items included in net cash provided by

50. Slide 50: Historical EBITDA and Adjusted EBITDA Reconciliations (cont'd)

    Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($M) (cont’d) (1) In 2013, we retired all outstanding subordinated convertible debentures. (2) Relates to a break-up fee, net of related transaction costs, we received following the termination of a merger agreement we had entered into. (3)

51. Slide 51: Historical Free Cash Flow GAAP Reconciliation

    Historical Free Cash Flow GAAP Reconciliation ($M) We define “free cash flow” as net cash provided by operating activities less purchases of, and plus proceeds from, equipment, and plus excess tax benefits from share-based payment arrangements. The equipment purchases and proceeds are included in ca

52. Slide 52: Reconciliation of BlueLine Net Income to Adjusted EBITDA

    Reconciliation of BlueLine Net Income to Adjusted EBITDA BlueLine’s EBITDA represents the sum of net income (loss), interest expense, income taxes and depreciation of rental equipment and non-rental depreciation and amortization expense. Adjusted EBITDA represents EBITDA excluding certain expenses d

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