United Rentals, Inc. · NYSE:URI
United Rentals — Investor Day (December 2012)
13 slides from United Rentals's investor day presentation, Dec 4, 2012
Slide 1: Treasury
Treasury Irene Moshouris, SVP Investor Day December 4, 2012
Slide 2: Irene Moshouris
Irene Moshouris SVP & Treasurer Joined the company in 2006 Responsibilities include Treasury, Tax, Credit & Collections and Real Estate Avon Products, Inc. – Deputy Treasurer Sterling Winthrop, Inc. and Arthur Andersen & Co. – various tax and treasury positions 2
Slide 3: Capital Structure Principles
Capital Structure Principles 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 requirements Debt maturities timed to avoid excessive refinancing needs in single year
Slide 4: Debt Maturity Profile
Debt Maturity Profile(1) $ Millions $1,900 $490 ABL Unused $1,500 $1,325 $750 7.375% Senior Unsecured Notes $750 $700 7.625% $1,410(2) ABL Used $200 $650 Senior Unsecured 10.25% Notes Senior $475 Unsecured Notes 5.75% $750 $400 Senior $500 8.375% 8.25% Secured 9.25% Senior Senior Notes Senior Sub No
Slide 5: Debt Structure
Debt Structure(1) $ Millions As of Sept. 30, 2012 Senior Secured Bank Debt ABL Facility $1,330 A/R Securitization $475 Senior Secured Notes 5.75% Notes Due 2018 $750 Senior Unsecured Notes 9.25% Notes Due 2019 $493 10.25% Notes Due 2019 $224 7.375% Notes Due 2020 $750 8.25% Notes Due 2021 $697 7.625
Slide 6: Short-Term Liquidity
Short-Term Liquidity $1.90B facility, maturing in June 2016 Borrowing cost approximately 2.25% Facility amount subject to borrowing base value (equipment and inventory) ABL Facility Suppressed availability of over $2.3B at 09.30.12 Pro forma(1) availability under the ABL stood at 26%; curr
Slide 7: Recent and Future Capital Structure Actions
Recent and Future Capital Structure Actions 2011 2012 2013 September February April September October November & Beyond Amended $400M Notice of Amended $475M AR 6.125% Redemption Renegotiation $1.9B ABL Notes issued Securitization Assumption Senior to remaining of A/R facility for RSC facility of RS
Slide 8: Meaningful FCF Expected Over the Next Few Years
Meaningful FCF Expected Over the Next Few Years Projections from Public Disclosures and S-4 Filed March 2012 2013 2014 2015 Free Cash Flow 295 395 649 Synergies 200 230 230 Costs to Achieve (25) — — Free Cash Flow (w/Synergies) 470 625 879 2013 FCF Projection of $400–$500M Use of Free Cash Flow Ne
Slide 9: Pro Forma Leverage Ratio Set to Decline Rapidly
Pro Forma Leverage Ratio Set to Decline Rapidly(1) 4.6(2) 3.7(3)(4) 3.3 2.8 3.0(5)(6) 2.2 2011 2012 2013 URI Standalone Combined Companies 2.5x – 3.5x Debt to EBITDA Target Range 1 Leverage Ratio calculated as total debt and QuIPs excluding original issuance discounts and premiums divided by adjuste
Slide 10: Taxes and Interest - 2013
Taxes and Interest - 2013 Taxes Interest Expense Under normal economic Interest expense expected to be circumstances, operating tax a range of $450M–$500M rate for the Company in the mid to high 30% range Cash interest in lower end of range Federal net operating losses expected to continue t
Slide 11: ROIC-Bridge to Achieving Cost of Capital
ROIC-Bridge to Achieving Cost of Capital(1) 0.9% 0.2% 0.3% 10.1% 10% 0.7% 1.6% Hurdle Rate WACC 7.4% TTM 3Q Rate Fleet Synergies Used Sales Inflation Future 1 The company’s ROIC metric uses after-tax operating income for the trailing 12 months divided by the averages of stockholders’ equity (deficit
Slide 12: Conclusion
Conclusion Optimistic about the business environment and continuing leadership position in the industry Capital structure and target leverage range properly positioned to support growth Flexible capital structure can adjust to support the company’s needs in any stage of the business cycle Ex
Slide 13: Driving Value Creation
Driving Value Creation | 13