Herc Holdings Inc. · NYSE:HRI

Herc — Investor Day (September 2021)

67 slides from Herc's investor day presentation, Sep 20, 2021

Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 20, 2021 HERC HOLDINGS INC. (Exact name of registrant as specified in its
Slide 2: Item 7.01 Regulation FD Disclosure
ITEM 7.01 REGULATION FD DISCLOSURE. As previously announced on August 31, 2021, Herc Rentals Inc. (the "Company") held its Investor Day today at which members of the Company's management team provided an in-depth review of the Company’s progress against its strategic initiatives set out in 2016, bus
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HERC HOLDINGS INC. (Registrant) By: /s/ S. WADE SHEEK Name: S. Wade Sheek Title: Senior Vice President, Ch
Slide 4: Herc Holdings Announces New Strategic Initiatives and Capital Allocation Plan
Herc Holdings Announces New Strategic Initiatives and Capital Allocation Plan • Raises adjusted EBITDA guidance for 2021 to $870 million to $890 million • Announces 2022 adjusted EBITDA guidance of $1.05 billion to $1.15 billion • Sets 2021 to 2024 goals for organic CAGR growth of 12% to 15% in rent
Slide 5: Guidance and New Capital Allocation Plan
Guidance The Company raised its full-year 2021 adjusted EBITDA guidance range, with the midpoint increasing 28% compared with 2020 results, and affirmed net rental equipment capital expenditures guidance. 2021 Guidance Former Current Adjusted EBITDA $840 to $870 million $870 to $890 million Net Rent
Slide 6: Forward-Looking Statements
Forward-Looking Statements This press release includes forward-looking statements as that term is defined by the federal securities laws, including statements concerning our business plans and strategy, projected profitability, performance or cash flows, future capital expenditures, our growth strat
Slide 8: Agenda: Shifting Into High Gear
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 2 Agenda: Shifting Into High Gear Welcome and Introduction Elizabeth Higashi Looking Back: Implementing Our Strategy Larry Silber Shifting Into High Gear Aaron Birnbaum - Grow the Core - Expand Specialty - Elevate Technology Sustainability Eliza
Slide 9: Herc Rentals Team
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 3 Herc Rentals Team Larry Silber President & Chief Executive Officer Aaron Birnbaum Senior Vice President & Chief Operating Officer Mark Irion Senior Vice President & Chief Financial Officer Elizabeth Higashi Vice President, Investor Relations &
Slide 10: Safe Harbor Statements and Non-GAAP Financial Measures
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 4 Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements as that term is defined by the federal securities laws, including statements concerning our business plans
Slide 12: More than 56 Years Serving Customers
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 6 More than 56 Years Serving Customers 1968 2008 2010 20141965 2015 Introduced industry-first National Accounts program Herc Rentals Founded 1979 Entered industrial equipment rental & leasing markets 1998 Expanded into Canada with acquisition of
Slide 13: Herc Rentals Today
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 7 Herc Rentals Today 56 Years serving customers 2,000 Equipment categories 295 (1) Locations in 39 states and five Canadian provinces 5,100 Employees serving North America $52 billion addressable market (1) Approximate location count as of Septe
Slide 14: Think Safety Delivers Results
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 8 Think Safety Delivers Results 2016 2017 2018 2019 2020 2021 Total Recordable Incident Rate 1.35 1.11 1.05 .99 .86 .801 • Continued focus on health and safety of our employees, customers and communities • New Health & Safety Management System i
Slide 15: Major Accomplishments
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 9 Fleet Optimization Financial PerformanceMarket & Customer DiversificationOperational Efficiencies Major Accomplishments Focused on premium brands to enhance the customer experience Fewer brands reduced service and maintenance costs Expanded sp
Slide 16: Optimizing Branch Network and Fleet to Improve Profitability
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 10 Optimizing Branch Network and Fleet to Improve Profitability As Total Branches as of September 20, 2021 Core1 Standalone Specialty Total 259 36 295 2016 Existing Locations Greenfields Acquisitions 2021E Contribution to Rental Revenue 2016 -
Slide 17: Our Strategy is Delivering Results
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 11 Our Strategy is Delivering Results Net Leverage1 (1) For definitions and calculations, see appendix beginning on slide 55 (2) For a definition and reconciliation to the most comparable GAAP financial measure, see slide 58 and previously filed
Slide 18: Our Investors, Team, Customers and Communities
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 12 Our Investors Strong balance sheet Business model generates excellent free cash flow Increase shareholder returns Our Communities Supporting our communities in times of need Employing a diverse team, reflecting the communities they serve Our
Slide 19: Shifting into High Gear: Key Takeaways
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 13 4 Integrate ESG 2 Expand Specialty 3 Elevate Technology 5 Allocate Capital 1 Grow the Core Shifting into High Gear – Key Takeaways Increasing fleet and locations in urban markets drives revenue, scale and operating leverage Accelerating secul
Slide 21: Grow the Core
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 15 Shifting into High Gear Grow fleet on existing locations Expand with greenfields and M&A Leverage scale of large urban markets 1 Grow the Core Diversify end markets and broaden customer base
Slide 22: Core Fleet
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 16 Aerial Boom lifts Electric atrium lifts Electric scissor lifts Hybrid lifts Single person lifts Other Air compressors Solar light towers Trucks and trailers Welders and industrial tools Earthmoving Equipment Backhoes Compact utility Dozers Ex
Slide 23: Invest in More Fleet on Existing Locations
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 17 Invest in More Fleet on Existing Locations $0 $1,000 $2,000 $3,000 $4,000 2020 2021E 2024E Core Fleet at OEC$ in millions • Core network of ~260 locations that has been purpose-built over the last 50 years • Capacity to add $1.0 billion of co
Slide 24: Leverage Scale of Large Urban Markets
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 18 Leverage Scale of Large Urban Markets • Aviation • Warehouses/Distribution • Utilities • Facilities • Government • Landscaping • Entertainment • Infrastructure • Contractors • Commercial • Industrial • Telecommunications • Alternative energy
Slide 25: Expand with Greenfields
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 19 Expand with Greenfields Targeted greenfield expansion strategy • Optimizing footprint in existing urban markets • Leveraging existing infrastructure to accelerate maturity of new locations • Develop specialty on existing real estate and expan
Slide 26: Adding Density to Large, Urban Markets Enhances Scale and Profitability
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 20 Adding Density to Large, Urban Markets Enhances Scale and Profitability 20% 30% 40% 50% 60% 70% Developing Maturing Scaled Branch EBITDA Margin1 by Market Scale (1) EBITDA margins exclude corporate overhead
Slide 27: Investing in Fleet & Expansion: New York City Metro Market
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 21 Investing In Fleet & Expansion: New York City Metro Market Locations 2016 2021E 2024E Locations 6 8 16 Rental Revenue $57M $84M $168M Market Size $2.4B $2.4B $2.8B Market Share 2% 4% 6% Density Status Developing Maturing Scaled Broad Customer
Slide 28: Growth with Acquisitions: Houston Market
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 22 Locations 2016 2021E 2024E Locations 6 13 15 Rental Revenue $52M $75M $105M Market Size $1.4B $1.4B $1.7B Market Share 4% 5% 6% Density Status Developing Scaled Scaled Broad Customer End User Markets • Aviation • Government • Infrastructure •
Slide 29: Expand Existing Footprint: Toronto Market
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 23 Expand Existing Footprint: Toronto Market Locations 2016 2021E 2024E Locations 4 6 12 Rental Revenue $20M $25M $85M Market Size $1.0B $1.2B $1.4B Market Share 2% 2% 6% Density Status Developing Maturing Scaled Broad Customer End User Markets
Slide 31: Expand Specialty
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 25 Shifting into High Gear Continue aggressive investment in specialty fleet Take advantage of cross-selling opportunities to increase wallet share Expanding addressable market and continuing shift from ownership to rental 2 Expand Specialty
Slide 32: Specialty Fleet
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 26 Climate Control & Remediation Air quality control Chillers and heaters Dehumidification Drying equipment Portable climate solutions Entertainment Services & Other Aerial and lifting equipment Carts Climate control Production lighting ProContr
Slide 33: Continue Investment in Specialty
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 27 Continue Investment in Specialty $0 $500 $1,000 $1,500 2016 2020 2021E 2024E Average Specialty Fleet at OEC$ in millions • Specialty equipment typically averages 14% to 16% higher $ utilization than core equipment • Growing specialty branch n
Slide 34: Expanding Addressable Market and Continuing Shift from Ownership to Rental
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 28 Expanding Addressable Market and Continuing Shift from Ownership to Rental Expected increase in market size through rental penetration 0 100 200 300 400 500 600 Entertainment Power Pump Climate Herc Revenue Opportunity by Specialty Market in
Slide 35: Take Advantage of Cross Selling Opportunities to Increase Wallet Share
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 29 Collaboration Sales structure set up to leverage all sales channels to support customers Business processes aligned to incentivize through, with and direct sales and operations Take Advantage of Cross Selling Opportunities to Increase Wallet
Slide 36: Accelerating Specialty Growth Through 2024
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 30 Higher $ Utilization from Specialty Increase share of customer wallet Increase Specialty to 25% - 30% of total OEC Accelerating Specialty Growth Through 2024 Accelerating secular trend in specialty rental Expanding addressable market Market F
Slide 37: Elevate Technology
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 31 Shifting into High Gear Continual investment in the technology platform to enhance the customer experience Digital transformation that enables the rental consumption chain Leverage data and long-standing relationships to provide further custo
Slide 38: Technology Investments Enhance Customer and Employee Experience
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 32 Technology Investments Enhance Customer and Employee Experience Technology Enabled People & Culture Smart Ordering Data Driven Business Intelligence Optimized Logistics Intelligent Fleet Management Digitally Enabled Account ManagementEvery to
Slide 39: Digital Transformation: Smart Ordering and People & Culture
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 33 Digital Transformation People & Culture Smart Ordering • Enhancing e-commerce and digital customer access • Omni-channel experience • Mobile enabled • Solutions-based guided ordering • Scheduling rental service support • Manager training and
Slide 40: Digital Transformation: Optimized Logistics and Business Intelligence
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 34 Digital Transformation Optimized Logistics • Delivery and pickup updates • Mapping and routing • Time to destination • Dispatch optimization • Real-time documentation of equipment conditions Data Driven Business Intelligence • Broad and drill
Slide 41: Digital Transformation: Fleet Management and Account Management
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 35 • Account management • Self-service rental decision making • Smart alerts • Easy bill pay & PO management • Performance analytics & dashboards • Telematics for equipment status • GPS for equipment location • Geofencing for equipment security
Slide 42: Leverage Data and Customer Relationships
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 36 Leverage Data and Customer Relationships… 20 years of rich customer data to leverage future growth ~15M Contracts ~2M Customers ~26M Invoices ~770K Assets Rented ~680M Days on Rent ~$25B Revenue Generating > 20,000 new customers every year
Slide 43: Continual Investments in the Technology Platform
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 37 Continual Investments in the Technology Platform to Enhance the Customer Experience SALES & OPERATIONSDIGITAL ENTERPRISE SYSTEMS BUSINESS INTELLIGENCE INFRASTRUCTURE
Slide 45: Integrate ESG
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 39 Shifting into High Gear Our 2021 Corporate Citizenship Report aligned with Global Reporting Initiative standards Improvements in equipment fuel economy and alternative fuels will contribute to reduction of our carbon footprint Equipment renta
Slide 46: Improvements in Equipment Will Contribute to Reduction of Our Carbon Footprint
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 40 Improvements in Equipment Will Contribute to Reduction of Our Carbon Footprint Our 2021 Corporate Citizenship Report aligned with Global Reporting Initiative standards We are developing initiatives to support our new 2030 sustainability goals
Slide 48: Macro Economic Data Supports Future Growth
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 42 Macro Economic Data Supports Future Growth 50 75 100 125 150 175 200 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Dodge Momentum Index1 100 150 200 250 300 350 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21E 22E 23E 24E U.S. Non-Reside
Slide 49: Taking Advantage of a New Cycle
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 43 Taking Advantage of a New Cycle (1) Source: ARA / IHS Global Insights as of August 2021 (2) Source: The American Institute of Architects (AIA) as of July 2021 (3) Source: ARA as of August 2021 and company estimates • Equipment rental market i
Slide 50: Allocate Capital
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 44 Shifting into High Gear Investment in fleet growth on existing locations Greenfield and M&A expansion 5 Allocate Capital Return capital to shareholders
Slide 51: Organic Growth Outlook
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 45 $0 $1,400 $2,800 $4,200 $5,600 2020 2021E 2024E Total Average Fleet at OEC Organic Growth $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2020 2021E 2024E Organic Rental Revenue $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2020 2021E 2024E O
Slide 52: Growth in Fleet and Revenue Increases ROIC
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 46 Growth in Fleet and Revenue Increases ROIC 4% 4% 8% 8% 7% 12% 18% 0% 4% 8% 12% 16% 20% 2016 2017 2018 2019 2020 2021E 2024E ROIC1 • Improving $ utilization and fleet returns, as well as focus on operating leverage and margin improvement, are
Slide 53: Near Term Guidance
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 47 Near Term Guidance 2021 2022 Metric Former Current Growth from prior year1 New Growth from prior year1 Adjusted EBITDA $840 to $870 million $870 to $890 million 28% $1,050 to $1,150 million 25% Net Fleet Capital Expenditures $500 to $550 mill
Slide 54: 2021-2024 Financial Goals
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 48 Goal Metric 2016 - 2020 2021 - 20241 Rental Revenue CAGR 3.4% 12% to 15% Adjusted EBITDA CAGR 6.5% 17% to 20% Adj. EBITDA Margin Range 33% to 41% 45% to 50% Flow-Through 68% 60% to 70% Net Fleet Capital Expenditures $1.8 billion $2.5 to $3.0
Slide 55: A New Capital Allocation Plan
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 49 We are committed to delivering long-term sustainable value for shareholders with a balanced, disciplined and opportunistic approach to capital deployment Underpinned by strong balance sheet Target leverage range through the cycle of 2.0x to 3
Slide 56: Expanding through M&A
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 50 Expanding through M&A Average fleet: $223 million # of locations 19 States & provinces: Texas, California, Tennessee, Ontario Total revenues: $117 million1 EBITDA: $53 million1 EBITDA margin: 45% Total purchase price: $280 million EV/EBITDA m
Slide 57: How Do We Invest Surplus Capital?
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 51 How Do We Invest Surplus Capital? Invest $1.5B in M&A If you assume: • average transaction values of 5.5x EBITDA EBITDA opportunity of $270M + synergy opportunity Maintaining leverage at the lower end of our target range of 2.0x to 3.0x, we g
Slide 58: Vision, Mission and Values
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 52 Vision, Mission and Values We are a customer-centric organization focused on safety, efficiency and profitable growth
Slide 59: Summary
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 53 4 Integrate ESG 2 Expand Specialty 3 Elevate Technology 5 Allocate Capital 1 Grow the Core Summary Increasing fleet and locations in urban markets drives revenue, scale and operating leverage Accelerating secular shift from ownership to renta
Slide 62: Expanding Our Strategic Initiatives
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 56 Expanding Our Strategic Initiatives Develop Our People and Culture Attract and retain diverse talent Align performance to shared purpose Support a safe and healthy work place culture Expand continuous learning to all employees Improve Operati
Slide 63: Glossary of Terms Commonly Used in the Industry
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 57 Glossary of Terms Commonly Used in the Industry OEC: Original Equipment Cost which is an operating measure based on the guidelines of the American Rental Association (ARA), which is calculated as the cost of the asset at the time it was first
Slide 64: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 58 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin EBITDA and Adjusted EBITDA - EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and
Slide 65: Calculation of Net Leverage Ratio
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 59 Calculation of Net Leverage Ratio Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplem
Slide 66: Historical Fleet at OEC
NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 60 Historical Fleet at OEC1 $ in millions FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2021 Q2 2021 Beginning Balance $3,384 $3,556 $3,651 $3,777 $3,822 $3,589 $3,626 Expenditures $495 $524 $774 $627 $349 $117 $188 Disposals ($328) ($442) ($607) (
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Herc Holdings — Investor Day (September 2021) on 6ix

Herc — Investor Day (September 2021)

Slide 1: Form 8-K Current Report

Slide 2: Item 7.01 Regulation FD Disclosure

Slide 3: Signature

Slide 4: Herc Holdings Announces New Strategic Initiatives and Capital Allocation Plan

Slide 5: Guidance and New Capital Allocation Plan

Slide 6: Forward-Looking Statements

Slide 7: Shifting Into High Gear: Investor Meeting

Slide 8: Agenda: Shifting Into High Gear

Slide 9: Herc Rentals Team

Slide 10: Safe Harbor Statements and Non-GAAP Financial Measures

Slide 11: Looking Back: Implementing Our Strategy

Slide 12: More than 56 Years Serving Customers

Slide 13: Herc Rentals Today

Slide 14: Think Safety Delivers Results

Slide 15: Major Accomplishments

Slide 16: Optimizing Branch Network and Fleet to Improve Profitability

Slide 17: Our Strategy is Delivering Results

Slide 18: Our Investors, Team, Customers and Communities

Slide 19: Shifting into High Gear: Key Takeaways

Slide 20: Shifting Into High Gear

Slide 21: Grow the Core

Slide 22: Core Fleet

Slide 23: Invest in More Fleet on Existing Locations

Slide 24: Leverage Scale of Large Urban Markets

Slide 25: Expand with Greenfields

Slide 26: Adding Density to Large, Urban Markets Enhances Scale and Profitability

Slide 27: Investing in Fleet & Expansion: New York City Metro Market

Slide 28: Growth with Acquisitions: Houston Market

Slide 29: Expand Existing Footprint: Toronto Market

Slide 30: Expand with Greenfields and M&A

Slide 31: Expand Specialty

Slide 32: Specialty Fleet

Slide 33: Continue Investment in Specialty

Slide 34: Expanding Addressable Market and Continuing Shift from Ownership to Rental

Slide 35: Take Advantage of Cross Selling Opportunities to Increase Wallet Share

Slide 36: Accelerating Specialty Growth Through 2024

Slide 37: Elevate Technology

Slide 38: Technology Investments Enhance Customer and Employee Experience

Slide 39: Digital Transformation: Smart Ordering and People & Culture

Slide 40: Digital Transformation: Optimized Logistics and Business Intelligence

Slide 41: Digital Transformation: Fleet Management and Account Management

Slide 42: Leverage Data and Customer Relationships

Slide 43: Continual Investments in the Technology Platform

Slide 44: Sustainability

Slide 45: Integrate ESG

Slide 46: Improvements in Equipment Will Contribute to Reduction of Our Carbon Footprint

Slide 47: Financial Review

Slide 48: Macro Economic Data Supports Future Growth

Slide 49: Taking Advantage of a New Cycle

Slide 50: Allocate Capital

Slide 51: Organic Growth Outlook

Slide 52: Growth in Fleet and Revenue Increases ROIC

Slide 53: Near Term Guidance

Slide 54: 2021-2024 Financial Goals

Slide 55: A New Capital Allocation Plan

Slide 56: Expanding through M&A

Slide 57: How Do We Invest Surplus Capital?

Slide 58: Vision, Mission and Values

Slide 59: Summary

Slide 60: Appendix

Slide 61: NYSE: HRI ©2021 Herc Rentals Inc. All Rights Reserved. 55

Slide 62: Expanding Our Strategic Initiatives

Slide 63: Glossary of Terms Commonly Used in the Industry

Slide 64: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin

Slide 65: Calculation of Net Leverage Ratio

Slide 66: Historical Fleet at OEC

Slide 67: Slide 67