United Rentals, Inc. · NYSE:URI
United Rentals — Investor Day (May 2023)
109 slides from United Rentals's investor day presentation, May 31, 2023
Slide 1: Investor Day
Investor Day MAY 31, 2023 2023 Investor Day I 1 © 2023 United Rentals, Inc. All rights reserved.
Slide 2: Welcome & Opening Remarks
Welcome & Opening Remarks Elizabeth Grenfell VP and Head of Investor Relations 2023 Investor Day I 2
Slide 3: Safe Harbor
Safe Harbor Unless otherwise specified, the information in this presentation, including forward-looking statements is as of our Investor Day presentation held on May 31, 2023. We make no commitment to update any such information contained in this presentation. Certain statements in this presentation
Slide 4: Today's Agenda
Today’s Agenda 1:00 PM Welcome & Opening Remarks Differentiation through Operations Excellence Elizabeth Grenfell | VP and Head of Investor Relations Erin Neumann | VP – Operations Excellence A Differentiated, Resilient Model to Compound Returns 2:10 PM Break Matt Flannery | President and CEO Differ
Slide 5: A Differentiated, Resilient Model to Compound Returns
A Differentiated, Resilient Model to Compound Returns Matt Flannery President and CEO 2023 Investor Day I 5
Slide 6: Key Messages
Key Messages 1 Market leader with size, scale, and strategy to sustain meaningful competitive advantages 2 Relentless focus on the customer, fueling deep and lasting relationships 3 Proven ability to win through excellence in people, process, and technology Resilient business model underpinned by di
Slide 7: United Rentals at a Glance
United Rentals at a Glance (NYSE: URI) #1 Market Share(1) 1997 25,000+ Founded Employees(3) Other Stamford, CT ~$24B 66% Headquarters Market Cap(4) 17% $20B 1,525 Fleet Size(3) Global Branch Locations(3) $11.6B 2022 total revenue (+19.8% YoY) $5.6B 2022 adjusted EBITDA (+27.3% YoY) (2) ~4,700 1,465
Slide 8: Continuing our Strategic Journey
Continuing our Strategic Journey 1997-2008 2009-2013 2014-2022 2023 & BEYOND Become a Transform Grow Leverage and Extend Market Leader the Core the Core Competitive Advantages Executed ~250 Improved returns Continued build-up of acquisitions to strengthen through financial and GenRent platform North
Slide 9: Our Purpose, Vision, and Values
Our Purpose, Vision, and Values Purpose Vision To be the best partner for worksite Build a better future together safety, productivity, and sustainability Values Safety First Visible Customer- Absolute Community- Continuous Sustainability Passion for Leadership Driven Integrity Minded Innovation Peo
Slide 10: Firm Commitment to Sustainability Leadership
Firm Commitment to Sustainability Leadership Environmental Stewardship • Manage our use of resources carefully and always consider the impact our operations have on the environment Social Impact • Dedicated to supporting our customers, employees, and the communities where we live and work, amplifyin
Slide 11: Go-to-Market Framework
Go-to-Market Framework Grow… with Existing Products and Customers Grow Organically Deepen… Penetration with New Customers & Verticals (CapEx) and Expand through M&A Expand… into Adjacent Products and Markets Multiple Avenues for Growth 2023 Investor Day I 11
Slide 12: How We Win | Our Competitive Advantages
How We Win | Our Competitive Advantages Creating Layers of Value Around the Customer Relationship Enabled by… Breadth of Technology Solutions to Meet to Drive Seamless Customer Needs Experiences Data & Insights Deep Expertise to Foster Worksite Backed by People- Performance Focused Culture Tailored
Slide 13: Uniquely Positioned with Scale, Expertise, and Technology
Uniquely Positioned with Scale, Expertise, and Technology Strong and Resilient Key Account Model… …Positions us for Emerging Industry Trends Tailored Go-to-Market Models to Serve Customers of All Sizes Broad Geographic Shift from Growing Demand Record Levels + Presence Owning to for Specialized of I
Slide 14: Strong Demand Tailwinds
Strong Demand Tailwinds Infrastructure Electric Vehicle Semiconductor North America Inflation Bill Investment Manufacturing LNG Reduction Act • Investments to modernize • Ongoing modernization of • Onshoring of • Development of Liquified • Multiple investments in and upgrade U.S. the U.S. Auto / Ele
Slide 15: Experienced Leadership with a Track Record of Success
Experienced Leadership with a Track Record of Success Matt Flannery Craig Pintoff Cristina Madry Joli Gross President and CEO EVP and CAO VP - Health, Safety and SVP - General Counsel and Joined:1998 2003 Employee Relations Head of Sustainability 2013 2002 Dale Asplund Erin Neumann Mike Durand Ted G
Slide 16: Our Work United Value Creation Framework
Our Work United ® Value Creation Framework PEOPLE STRONG FOUNDATIONAL VALUES Safety First Visible Customer- Absolute Community- Continuous Sustainability Passion for Leadership Driven Integrity Minded Innovation People 2023 Investor Day I 16
Slide 17: Differentiation through Culture & Sustainability
Differentiation through Culture & Sustainability Craig Pintoff EVP and CAO 2023 Investor Day I 17
Slide 18: Key Messages
Key Messages 1 Industry leader in sustainability focused on doing well by doing good 2 Purpose-led and values-driven culture enabling us to be a company of choice for industry talent 3 Unwavering focus on health and safety as a driver of operational efficiency and worksite productivity Proud steward
Slide 19: United Rentals is a Company of Choice
United Rentals Strong Performer is a Company of Choice Commercial and Professional Services Benchmark(1) Outstanding customer service in an industry SAFETY where talent can make a meaningful difference 9.2/10 Top Decile Best-in-class employee retention due to brand and DIVERSITY & INCLUSION Performa
Slide 20: Passion for People is a Differentiator
Passion for People is a Differentiator • Despite headlines around the Great 6,000+ Resignation, URI voluntary turnover New Hires in 2022 improved to 13.1% in 2022 from 13.5% in 2021 30%+ • URI retention rate is significantly New Hires from better than our industry Referrals • Retaining talent and le
Slide 21: Talent Development is a Strategic Focus
Talent Development is a Strategic Focus Challenge Actions Taken Results Industry has Created largest Invested in Activated multiple 500+ employees historically faced skilled labor infrastructure to talent pools in our technician challenges program and support these • Entry-level branch development s
Slide 22: Empowerment Enables World-class Customer Service
Empowerment Enables World-class Customer Service When our employees are at their best — healthy, safe, engaged, and empowered — they can provide world-class customer service SURVEY QUESTION Our people Meaningful Work “I see how my work contributes to positive outcomes tell us they feel for customers
Slide 23: Differentiation through Health & Safety
Differentiation through Health & Safety Cristina Madry VP – Health, Safety, and Employee Relations 2023 Investor Day I 23
Slide 24: Health & Safety at United
Health & Safety at United: Driving Our Reputation as an Industry Leader We’ve made significant strides in employee safety and We do safety right productivity…and we’re not done yet Our numbers show it, customers confirm it, and employees feel it Total Recordable Incident Rate (TRIR) On our journey t
Slide 25: Helping Employees be United4Safety
Helping Employees be United4Safety Situation Action Result While on site to pick up Employee was empowered Potentially dangerous equipment, a URI employee with – and exercised – outcome avoided witnessed unsafe STOP WORK AUTHORITY operation of a boom lift Commitment to Safety Culture reinforced Safe
Slide 26: United Academy Deepens Relationships with Customers
United Academy Deepens Relationships with Customers “ Background of Program Cumulative Participants Connecting United Academy’s robust offerings of You are the best in 535K courses and trainings with largest equipment rental your space, and we fleet and sales selection in the world 435K want to be t
Slide 27: Health & Safety Key Takeaways
Health & Safety Key Takeaways 1 2 3 Recognized industry Safety enhances Internal efforts lead to leader in employee employee efficiency external results – a health and safety and effectiveness clear competitive advantage 2023 Investor Day I 27
Slide 28: Differentiation through Sustainability Leadership
Differentiation through Sustainability Leadership Joli Gross SVP – General Counsel and Head of Sustainability 2023 Investor Day I 28
Slide 29: Sustainability Highlights
Sustainability Highlights Setting Industry Pace with Environmental Goals Continue momentum Complete lighting around flagship goal of Divert 70% of waste retrofit at 95% of 35% GHG emissions from landfills by 2025 North American reduction by 2030(1) operations by 2025(2) Continue to Lead the Way in S
Slide 30: Accelerating Toward Our Long-term Goals and Aspirations
Accelerating Toward Our Long-term Goals and Aspirations Significant Progress in Recent Years … …As We Continued to Reduce GHG Emissions Intensity 27%(1) of rental fleet electric or hybrid and growing GHG Intensity GHG intensity (MT CO2e/$M revenue) 65 0% GHG intensity (% reduction from 2018) Diverte
Slide 31: Rental Drives Green Benefits
Rental Drives Green Benefits Reducing Total Equipment Needs Reducing Emissions Intensity of Equipment Acquired Equipment High Equipment Fuel Low Emission Utilization Boost Utilization Efficiency Inventory Equipment acquired via M&A Rental asset can fill role of Short equipment Electric and transitio
Slide 32: Rental Model Drives Substantial Green Benefits
Rental Model Drives Substantial Green Benefits Reducing Total Equipment Needs Reducing Emissions Intensity of Equipment Due to URI’s existence and operation… 400,000 By having a younger, greener fleet, URI drives a benefit of… 600-675K Fewer pieces of MT CO2e equipment needed today(1) saved annually
Slide 33: Sustainability Expertise Wins in the Marketplace
Sustainability Expertise Wins in the Marketplace Large general contractor (GC) awarded multi-year, $1B contract to build Midwest data center Background GC goals include reducing GHG emissions and water consumption and completing 1K+ Green Building projects Unique URI Solution Key Results Opportunity
Slide 34: Sustainability Key Takeaways
Sustainability Key Takeaways 1 2 3 4 Strengthening our Reducing GHG Helping customers Capitalizing on first- long-standing emissions from our meet environmental mover advantage to reputation as an non-rental fleets, stewardship goals accelerate positive industry leader in buildings, and through inno
Slide 35: Culture & Sustainability Summary
Culture & Sustainability Summary Craig Pintoff EVP and CAO 2023 Investor Day I 35
Slide 36: Culture & Sustainability Summary
Culture & Sustainability Summary 1 2 3 4 Industry leader in Purpose-led and Unwavering focus on Proud steward of sustainability, values-driven culture health and safety as a environmental focused on doing well enables us to be a driver of operational resources delivering by doing good company of cho
Slide 37: Differentiation through Customer Solutions and Active Fleet Management
Differentiation through Customer Solutions and Active Fleet Management Dale Asplund EVP and COO 2023 Investor Day I 37
Slide 38: Key Messages
Key Messages Creating sustainable competitive differentiation by combining unmatched size, scale, and expertise 1 to deliver a best-in-class customer experience Enabling operations excellence by uniquely leveraging technology and data analytics to enhance the 2 customer experience, productivity, and
Slide 39: Proven Model for Winning in the Marketplace
Proven Model for Winning in the Marketplace PEOPLE Clear Strategy to Compound Returns by Delivering Value to Customers and Driving Operations Excellence 2023 Investor Day I 39
Slide 40: Industry Leader, Delivering High-quality Experiences at Scale
Industry Leader, Delivering High-quality Experiences at Scale Operations Excellence A Typical Day at While we are sitting in this meeting, our 1UR platform of people, processes, and tools are working hard to enable further business growth by delivering a consistent, quality experience United Rentals
Slide 41: Customers Know We Have the Resources They Need
Customers Know We Have the Resources They Need Industry-leading Fleet Enabling Profitable Growth at Scale $20B; ~1M units Solutions • Holistic product set, serving the most diverse Aerial customer base in the industry Forklifts • Comprehensive array of Specialty solutions Dirt meeting the needs of c
Slide 42: Geographic Breadth and Flexibility to Provide a One-stop Shop
Geographic Breadth and Flexibility to Provide a One-stop Shop for Customers Optimizing Location Strategy • Improving our operating footprint Industry’s Most Expansive Branch Network to enable faster response time • Enhancing operating processes to allow greater face-time with customers • Expanding S
Slide 43: Leveraging Branch Connectivity to Maximize Network Effects
Leveraging Branch Connectivity to Maximize Network Effects Strengthening Optimizing Teams and Functions to Best Serve Customers Value Proposition Before After Offering a one-stop shop for sustainable Better serve customers with Compete and serve customers solutions and expertise individual stores as
Slide 44: Growing Specialty Solutions to Meet Customer Demand
Growing Specialty Solutions to Meet Customer Demand While Expanding Profitability Trench Safety Portable Storage & Modular Space • Excavation support solutions, confined space • Portable storage, mobile offices, and modular entry equipment, and customer training space solutions • Used for constructi
Slide 45: Elevating Worksite Performance through Greater Customer Control
Elevating Worksite Performance through Greater Customer Control Proactively Addressing Needs… …Drives Positive Business Impacts(1) Online Simplicity and ease of placing an order 57% 97% Rental Growth in Digital Users Growth in Online Payments 37% 55% Mobile Quick and convenient capabilities Growth i
Slide 46: Leading the Way with Technology and Data
Leading the Way with Technology and Data Unique Apps Fuel Efficiency and Automation Across a Technology embedded Suite of Once Manual Processes throughout the rental lifecycle to drive better experiences URI App Logistics/Staging Apps Order placement, Route and load • Employees and customers pricing
Slide 47: Harnessing Power of Data Analytics to Enhance Performance
Harnessing Power of Data Analytics to Enhance Business Performance Data-driven Operational Capital Insight Intelligence Efficiency Translate data to help Leverage operating intel to Utilize proprietary knowledge to improve performance and increase employee optimize pricing and decision making produc
Slide 48: Optimizing Returns through Active Fleet Management
Optimizing Returns through Active Fleet Management Harnessing Data to Strategically Manage Fleet High Continuously Optimizing Outcomes Rate Opportunity Fleet Investment Zone Zone Right Fleet Demand Right Time Fleet Transfer/ Sales Penetration Reduction Zone Zone Right Price Low Deeper Customer Relat
Slide 49: Analytical Approach to Partnerships
Analytical Approach to Partnerships Reputation to Insights to Scale to Attract Continuously Buying the Right Optimize TCO(1) Promptly Identify Strategic with Vendors Critical Needs Suppliers Fleet to Maximize Returns Capitalizing on Data and Strategic Relationships for Active Fleet Management (1) TC
Slide 50: Proprietary Expertise Drives Smarter Purchases
Proprietary Expertise Drives Smarter Purchases Illustrative Examples of Comprehensive Fleet Purchase Evaluation Brand 1 Brand 2 Brand 3 Acquisition cost $115 $126 $125 Maintenance cost over life (parts) $10 $3 $12 Maintenance cost over life (labor) $7 $7 $8 Resale value after 7 years (retail) $79 $8
Slide 51: Disposing of Assets at the Right Time and Price
Disposing of Assets at the Right Time and Price to Ensure We Optimize Fleet Value Selling at the Right Time… …at the Right Price Key decision drivers: • Utilize retail channel vs. • Target rental useful life wholesale for price maximization • Future repair and maintenance costs • Review market prici
Slide 52: Key Takeaways
Key Takeaways 1 2 3 Creating sustainable Enabling operations Optimizing asset competitive excellence by values and capital differentiation by uniquely leveraging returns through combining unmatched technology and data industry-leading fleet size, scale, and analytics to enhance management expertise
Slide 53: Differentiation through Operations Excellence
Differentiation through Operations Excellence Erin Neumann VP – Operations Excellence 2023 Investor Day I 53
Slide 54: Key Messages
Key Messages 1 Embedding operations excellence to drive a seamless customer experience 2 Leveraging scale to enable flexibility and resilience 3 Powering productivity and capacity through technology to better serve customers 2023 Investor Day I 54
Slide 55: Powering the Customer Experience through Operations Excellence
Powering the Customer Experience through Operations Excellence PEOPLE STRONG FOUNDATIONAL VALUES Safety First Visible Customer- Absolute Community- Continuous Sustainability Passion for Leadership Driven Integrity Minded Innovation People 2023 Investor Day I 55
Slide 56: Thousands of Opportunities to Impact the Customer Experience
Thousands of Opportunities to Impact the Customer Experience Customer Moments of Truth Reinforcing Our Brand Executing on Operations at Scale in One Week at United… and Value Proposition Requires Excellence in… 200K Phone Calls BEST-IN-CLASS People 80K Units Made Ready Process 170K Pickups and Deliv
Slide 57: Investments in Our People Are Powering Our Path Forward
Investments in Our People Are Powering Our Path Forward 2023 All-Employee Workshop Full-day workshop for Customer Day all team members Semi-annual event held on same day across Company • Explore how we can elevate the customer experience • Host 1,200+ customers for conversations about their • Build
Slide 58: Local Commitment, Supported by Enterprise Resources
Local Commitment, Supported by Enterprise Resources Certified 5S Specialists Located throughout Our Footprint Dedicated Enterprise Resources Local resources Process owners and subject supporting branch- matter experts focused on level assessments cross-enterprise opportunities On-the-ground experts
Slide 59: Enhancing Business Processes for Impact and Efficiency
Enhancing Business Processes for Impact and Efficiency Standardization of Processes 800 Kaizen Events 100% of Locations Have Widely Recognized Best Practices Held Annually Quarterly Self-assessment Implemented Across Footprint Avg. GenRent OEC Per Branch(1) ($M) Global Branch Count(2) 1,525 $17.1 ~8
Slide 60: Leveraging Technology to Optimize the Customer Experience
Leveraging Technology to Optimize the Customer Experience Technology helps us get the work done… …while Operations Excellence helps us get the work done better. • Optimize logistics (improved route/load planning) Optimization of • Accelerate turnaround people, process, (yard returns & inspections) a
Slide 61: Winning with Operations Excellence
Winning with Operations Excellence Increasing Our Responsiveness Expanding Fleet Availability Improving Efficiency and Capacity Enhancing Scalability and Flexibility Enabling Value Creation for Our Customers 2023 Investor Day I 61
Slide 62: Differentiation through Commercial Excellence
Differentiation through Commercial Excellence Mike Durand SVP – Sales and Operations 2023 Investor Day I 62
Slide 63: Key Messages
Key Messages 1 Clear growth initiatives to continue positive momentum across products, markets, and verticals Uniquely solving customer problems to capture greater share among local regional players while 2 maintaining leadership in national accounts 3 Aggressive growth in Specialty through competit
Slide 64: Well-Positioned to Drive Growth Across Products, Markets, and Verticals
Well-Positioned to Drive Growth Across Products, Markets, and Verticals Full Solutions Concentrated in Growth Markets(1) Focused Verticals General Rental • Chemical • Trucks • Data Centers • Flooring & Facility Solutions 983 482 (1) • Downstream O&G Specialty GenRent Specialty • Emergency Response •
Slide 65: Sales Coverage Model Captures Opportunities at Scale
Sales Coverage Model Captures Opportunities at Scale Large Targeted Local Key Benefits of National Verticals and Other Accounts Core Accounts Accounts / Jobsites Enhanced Coverage Model Grow revenue with existing customers in National Accounts and targeted verticals Deepen penetration through more f
Slide 66: Growing, Deepening, and Expanding Our One-stop Shop
Growing, Deepening, and Expanding Our One-stop Shop through Industry-Leading Specialty Solutions Offerings Comprehensive Suite of Solutions… …Drives Deeper Customer Relationships Specialty Cross-Sell Results: Large Utility Client $41M Specialty Fluid Solutions Power & HVAC Trench Safety 58% of Speci
Slide 67: Specialty Provides Strong Growth Opportunities
Specialty Provides Strong Growth Opportunities Specialty Revenue(1) ($M) $3,445 2012-2022 CAGR: $2,692 27.8% $2,165 $2,089 $1,720 $1,254 $931 $1,021 $823 $471 $297 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 7.2% 9.5% 14.5% 16.0% 17.7% 18.9% 21.4% 23.2% 24.5% 27.7% 29.6% Specialty % of To
Slide 68: Uniquely Positioned to Serve National Accounts
Uniquely Positioned to Serve National Accounts and Capitalize on Key Demand Tailwinds Sustainable Commercial Ability to Provide Solutions to Large, Complex Projects Advantages Comprehensive GenRent and Specialty solutions to provide Infrastructure Electric Vehicle Semiconductor North America Inflati
Slide 69: Multiple Expansion Opportunities to Fuel Long-term Growth
Multiple Expansion Opportunities to Fuel Long-term, Above-Market Growth Well-positioned to Continue Positive Momentum Products Markets Verticals Driving deeper customer Scaling local market Developing new penetration through new capabilities to complement verticals with strong and adjacent products
Slide 70: Key Takeaways
Key Takeaways 1 2 3 4 Clear growth initiatives Uniquely solving Aggressive growth in Well-positioned to to continue positive customer problems to Specialty through capitalize on key momentum across capture greater share competitive demand tailwinds products, markets, among local regional differentia
Slide 71: Differentiation through Disciplined Financial Outperformance
Differentiation through Disciplined Financial Outperformance Ted Grace EVP and CFO 2023 Investor Day I 71
Slide 72: Key Messages
Key Messages Well-positioned for multi-year demand tailwind from public and private investment in infrastructure and 1 industrial manufacturing through our strategies and competitive advantages 2 Focus on operational efficiencies supports improvements in full-cycle margins and returns 3 Strong profi
Slide 73: Consistent Value Creation Framework
Consistent Value Creation Framework PEOPLE Balanced Focus on Growth, Margins, Returns, Cash Generation, and Capital Allocation to Drive Shareholder Value 2023 Investor Day I 73
Slide 74: Strong Track Record of Powerful Financial Performance
Strong Track Record of Powerful Financial Performance Total Revenue ($M) Adjusted EBITDA(1) ($M) Adjusted EPS(1,2) +11.9% +11.0% +12.2% +12.2% +25.1% +24.1% 5-Year CAGR 10-Year CAGR 5-Year CAGR 10-Year CAGR 5-Year CAGR 10-Year CAGR vs. +11.6% for vs. +8.0% for the S&P 500 the S&P 500 $15,000 $6,000
Slide 75: Growth: Strategy Supports Meaningful Outperformance
Growth: Strategy Supports Meaningful Outperformance of Industry Growth Drivers 300% Smart M&A Indexed Growth: URI Rental Revenue (11.2% CAGR) Secular shift towards rental over ownership 250% Indexed Growth: NAM Industry ex-URI (3.8% CAGR) Increased cross-selling to capture wallet share and max
Slide 76: Profitability: Focus on Efficiency Supports Improved Margins
Profitability: Focus on Efficiency Supports Improved Margins Key Drivers of Margin Gains Strong Fixed-Cost Absorption 50% 25% • Cyclical leverage (e.g., SG&A) • M&A cost synergies 40% 20% Increased Operational Efficiency 30% 15% • Process improvements (e.g., LEAN) • Technology investments (e.g., log
Slide 77: Returns: Higher Profitability and Focus on Capital Efficiency
Returns: Higher Profitability and Focus on Capital Efficiency Supports ROIC 14% 12.7% 12% 510 bps improvement 10% Key Return Drivers 8% 7.6% Increased Profitability 6% Positive Fleet Productivity 4% Aggressive Fleet Management 2% Smart Capital Allocation 0% 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 78: Cash Flow: Strong and Resilient Free Cash Flow Generation
Cash Flow: Strong and Resilient Free Cash Flow Generation (1) Cumulative FCF Cumulative FCF 10-Year Average 10-Year Average Last 5-years(2) Last 10-years(3) Cash Conversion(4) FCF Margin(5) $8.7B $12.8B 132% 16.3% $2,500 $2,454 $2,000 $1,768 $1,500 $1,592 $1,527 $1,334 $1,000 $1,195 $924 $983 $500 $
Slide 79: Growth: URI vs. S&P Industrials
Growth: URI vs. S&P 500 Industrials Total Revenue Diluted EPS FY13-FY22 Growth FY22 Y/Y FY13-FY22 Growth FY22 Y/Y CAGR % Change CAGR % Change 1st 26.2% 1st 55.7% 10.0% Quartile 19.8% Quartile 2nd 2nd Quartile Quartile 5.2% 10.9% 10.5% 13.8% 3rd 3rd Quartile Quartile 4th 4th Quartile Quartile 10-Year
Slide 80: Profitability: URI vs. S&P Industrials
Profitability: URI vs. S&P 500 Industrials Operating Net Income FY13-FY22 Income Margin FY22 FY13-FY22 Margin FY22 AVG AVG 23.9% 1st 27.8% 1st Quartile Quartile 18.1% 12.7% 2nd 2nd Quartile Quartile 13.1% 14.4% 9.3% 11.0% 3rd 3rd Quartile Quartile 4th 4th Quartile Quartile 10-Year FCF Margin URI URI
Slide 81: Returns: URI vs. S&P Industrials
Returns: URI vs. S&P 500 Industrials (1) (2) ROIC ROE FY13-FY22 FY22 FY13-FY22 FY22 AVG AVG 1st 1st Quartile Quartile 38.5% 35.4% 2nd 12.6% 2nd Quartile Quartile 10.6% 11.5% 22.3% 25.8% 3rd 3rd 9.1% Quartile Quartile 4th 4th Quartile Quartile 10-Year FCF Margin URI URI S&P Industrial S&P 10-Year Sec
Slide 82: Cash Flow: URI vs. S&P Industrials
Cash Flow: URI vs. S&P 500 Industrials FCF Cash (1) FY13-FY22 Margin (1) FY22 FY13-FY22 Conversion FY22 AVG AVG 1st 132.4% 1st Quartile Quartile 15.6% 14.9% 2nd 2nd Quartile Quartile 10.2% 9.3% 101.8% 84.8% 3rd 3rd Quartile Quartile 82.3% 4th 4th Quartile Quartile 10-Year FCF Margin URI URI S&P Indu
Slide 83: Valuation: URI vs. S&P Industrials
Valuation: URI vs. S&P 500 Industrials NTM Enterprise NTM Price/ (1) FY13-FY22 Value/ EBITDA (1) FY22 FY13-FY22 Earnings FY22 AVG AVG AVG AVG 1st 1st Quartile Quartile 2nd 2nd Quartile Quartile 11.4x 12.3x 21.8x 20.0x 3rd 3rd Quartile Quartile 4th 4th 13.8x 5.4x Quartile 5.7x 15.3x Quartile 10-Year
Slide 84: Financial Strength: Aggressively Managing the Balance Sheet
Financial Strength: Aggressively Managing the Balance Sheet Leverage Ratio(1) Capital Allocation Strategy Supports Strong Balance Sheet (2) 3.6x (4) (3) 3.0x 3.0x 3.0x 2.9x 2.8x 2.9x 2.7x 2.6x (5) 2.4x (6) 2.0x 2.2x 2.0x 1.6x (7) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023F Aggressiv
Slide 85: Financial Strength: Ensuring Flexibility & Optionality
Financial Strength: Ensuring Flexibility & Optionality $M No Long-term Note Maturities Until 2027 $6,000 $5,500 $5,000 Total Liquidity of $2.655B(1) $2,336 Unused ABL $4,000 Facility Fixed vs. Floating Ratio: 68%/32% $3,000 $1,914 Used ABL $2,000 Facility(2) $1,673 $1,500 $1,500 $1,100 $1,100 $955 $
Slide 86: Prudent Capital Deployment Execution with Clear Priorities
Prudent Capital Deployment Execution with Clear Priorities Invest in Growth Return Excess Cash to Investors Organic Growth Dividends • Continued investment in GenRent and Specialty to support customers • Initiated dividend program in 1Q2023 • Targeting 40+ specialty cold-starts in 2023 vs. 35 in 202
Slide 87: Proven Ability to Create Value Through M&A
Proven Ability to Create Value Through M&A Key Acquisitions 2012 / GenRent 2014 / Specialty 2017 / GenRent 2017 / GenRent 2018 / Specialty 2018 / GenRent 2021 / Specialty 2022 / GenRent Strategic Value Positions URI as Expand Strengthened aerial New capabilities in Bolstered NA Expanded offering; Bo
Slide 88: Key Takeaways
Key Takeaways 1 2 3 4 5 Well-positioned for Focus on Strong Flexible business Clear strategy to multi-year demand operational profitability and model and strong compound tailwind from public efficiencies disciplined capital balance sheet shareholder value and private supports management support busi
Slide 89: Reiterating 2023 Outlook
Reiterating 2023 Outlook Total Revenue $13.7B-$14.2B YoY% Growth ~20% at mid-point Adjusted EBITDA(1) $6.6B-$6.85B Adjusted EBITDA Margin (1) ~48% at mid-point Net Rental Capital $2.0B-$2.25B, after gross Expenditures purchases of $3.3B-$3.55B Net Cash Provided by $4.4B-$4.8B Operating Activities Fr
Slide 90: Closing Remarks
Closing Remarks Matt Flannery President and Chief Executive Officer 2023 Investor Day I 90
Slide 91: Compounding Value with Significant Opportunity Ahead
Compounding Value with Significant Opportunity Ahead Market leader with size and scale to sustain meaningful competitive 1 advantages Relentless focus on the customer, fueling deep and lasting 2 relationships PEOPLE 3 Proven ability to win through excellence in people, process, and technology Resili
Slide 92: New 2028 Aspirational Targets
New 2028 Aspirational Targets Key Assumptions ~$20B ~$7B ~$10B 15%+ • Continued long-term growth in non- Total Specialty Adjusted Return on residential construction, including support Revenue Revenue EBITDA Invested Capital from key tailwinds across North America infrastructure and reindustrializati
Slide 93: Appendix
Appendix 2023 Investor Day I 93
Slide 94: Historical Adjusted EPS GAAP Reconciliation
Historical Adjusted Earnings Per Share GAAP Reconciliation Adjusted EPS (earnings per share) is a non-GAAP measure that reflects diluted earnings per share excluding the impact of the special items described below. Management believes that adjusted EPS provides useful information concerning future p
Slide 95: Historical Adjusted EPS GAAP Reconciliation (cont'd)
Historical Adjusted Earnings Per Share GAAP Reconciliation (cont’d) (1) We have made a number of acquisitions in the past and may continue to make acquisitions in the future. Merger related costs only include costs associated with major acquisitions that significantly impacted our operations (the "m
Slide 96: Historical EBITDA and Adjusted EBITDA GAAP Reconciliations
Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($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
Slide 97: Historical EBITDA and Adjusted EBITDA GAAP Reconciliations
Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($M) (cont’d) We define “free cash flow” as net cash provided by operating activities less purchases of, and plus proceeds from, equipment and intangible assets. The equipment and intangible asset purchases and proceeds are included in cash
Slide 98: Historical EBITDA and Adjusted EBITDA GAAP Reconciliations
Historical EBITDA and Adjusted EBITDA GAAP Reconciliations ($M) (cont’d) (1) In 2013, we retired all outstanding subordinated convertible debentures. (2) 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 ass
Slide 99: Historical Free Cash Flow GAAP Reconciliation
Historical Free Cash Flow GAAP Reconciliation ($M) We define “free cash flow” as net cash provided by operating activities less purchases of, and plus proceeds from, equipment and intangible assets, and plus excess tax benefits from share-based payment arrangements. The equipment and intangible asse
Slide 100: Free Cash Flow GAAP Reconciliation
Free Cash Flow GAAP Reconciliation ($M) The table below provides a reconciliation between 2023 forecasted net cash provided by operating activities and free cash flow. Net cash provided by operating activities $4,400-$4,800 Purchases of rental equipment $(3,300)-$(3,550) Proceeds from sales of renta
Slide 101: Speaker Bios
Speaker Bios 2023 Investor Day I 101
Slide 102: Matt Flannery
Speaker Bios MATT FLANNERY President and Chief Executive Officer Mr. Flannery was appointed to the position of Chief Executive Officer of United Rentals, and was elected as a director of the Company, in May 2019, while remaining as President, a position he has held since March 2018. From April 2012
Slide 103: Dale Asplund
Speaker Bios DALE ASPLUND Executive Vice President and Chief Operating Officer Dale Asplund was promoted to Executive Vice President and Chief Operating Officer in May 2019, after previously serving as Executive Vice President—Business Services and Chief Information Officer since January 2017. He pr
Slide 104: Ted Grace
Speaker Bios TED GRACE Executive Vice President and Chief Financial Officer William “Ted” Grace was appointed Executive Vice President and Chief Financial Officer of United Rentals in November 2022, after having served as the Company’s Interim Chief Financial Officer since July 2022. In his current
Slide 105: Craig Pintoff
Speaker Bios CRAIG PINTOFF Executive Vice President and Chief Administrative Officer Craig A. Pintoff was promoted to Executive Vice President — Chief Administrative and Legal Officer in March 2017, with responsibility for leading the Company’s legal and human resources functions, after previously s
Slide 106: Mike Durand
Speaker Bios MIKE DURAND Senior Vice President - Sales and Operations Michael Durand was appointed Senior Vice President – Sales and Operations in 2020, having previously served as Senior Vice President – Operations since 2015. In his current role, Mr. Durand is responsible for various facets of the
Slide 107: Joli Gross
Speaker Bios JOLI GROSS Senior Vice President — General Counsel and Head of Sustainability Joli Gross was promoted to Senior Vice President, General Counsel and Corporate Secretary in 2017. In her current role, Ms. Gross leads the Company’s governance and environmental functions and is executive spo
Slide 108: Cristina Madry
Speaker Bios CRISTINA MADRY Vice President — Health, Safety and Employee Relations Cristina Madry was promoted to Vice President, Health, Safety & Employee Relations in 2020. In this role, Ms. Madry leads the Company’s Health & Safety function. Ms. Madry is responsible for cultivating a world class
Slide 109: Erin Neumann
Speaker Bios ERIN NEUMANN Vice President - Operations Excellence Erin Neumann was promoted to Vice President of Operations Excellence in June of 2022. In her current role, she supports the branch network through continuous improvement and automation of critical maintenance and logistics processes. M