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Investor Presentaiton

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. $ Millions Three Months Ended December 31, (1) 2019 2018 2019 Net cash provided by operating activities $ 442 $ Year Ended December 31, 2018 730 $ 3,024 $ 2,853 Adjustments for items included in net cash provided by operating activities but excluded from the calculation of EBITDA: Amortization of deferred financing costs and original issue discounts Gain on sales of rental equipment Gain on sales of non-rental equipment Gain on insurance proceeds from damaged equipment Merger related costs (1) Restructuring charge (2) Stock compensation expense, net (3) (16) ཕྱེgཝཟླ ེསྐྱས<88 ཙg༠༠།སེ༅ (15) (12) 313 278 6 22 (22) (1) (36) (16) (18) (31) (29) (61) (102) Loss on repurchase/redemption of debt securities and amendment of ABL facility (29) (61) Changes in assets and liabilities 387 192 170 124 Cash paid for interest 101 76 581 455 Cash paid for income taxes, net 142 21 238 71 EBITDA Add back: $ 1,119 $ 1,037 $ 4,200 $ 3,628 Merger related costs (1) Restructuring charge (2) Stock compensation expense, net (3) Impact of the fair value mark-up of acquired fleet (4) Adjusted EBITDA 22 2 16 16 29 22 1 36 18 31 61 102 17 13 75 $ 1,154 $ 1,117 $ 4,355 $ 66 3,863 Reflects transaction costs associated with the BakerCorp and BlueLine acquisitions discussed above. 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 historic acquisitions that have included merger related costs are RSC, which had annual revenues of approximately $1.5 billion prior to the acquisition, and National Pump, which had annual revenues of over $200 million prior to the acquisition. NES had annual revenues of approximately $369 million, Neff had annual revenues of approximately $413 million, BakerCorp had annual revenues of approximately $295 million and BlueLine had annual revenues of approximately $786 million. (2) (3) (4) Primarily reflects severance and branch closure charges associated with our closed restructuring programs and our current restructuring program. We only include such costs that are part of a restructuring program as restructuring charges. Since the first such restructuring program was initiated in 2008, we have completed four restructuring programs. We have cumulatively incurred total restructuring charges of $333 million under our restructuring programs. Represents non-cash, share-based payments associated with the granting of equity instruments. Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in the RSC, NES, Neff and BlueLine acquisitions and subsequently sold. United Rentals 9 United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved. 43
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