Capital Allocation and Digital Strategy Update
•
Financial strength: Managing the balance sheet
Leverage
Ratio (1)
Capital Allocation Strategy Supports Strong Balance Sheet
3.6x
3.0x
3.0x
2.9x
2.8x
2.9x
2.7x
2.6x
2.4x
2.2x
2.0x
1.6x
20122)
2013
2014
2015
2016
2017(3)
(5)
(6)
2018
2019
2020
2021
2022
2023
Aggressive Balance Sheet and Liquidity Management
Prudent Financial Leverage
Targeted full-cycle leverage ratio: 1.5x-2.5x (new
as of 2024)
Ensure access to diverse funding sources
Support funding needs in all environments
Liquidity and Maturity Management
Ensure sufficient liquidity to support business
•
•
Manage debt maturities to minimize risks
Thoughtful Capital Allocation
• Balance the deployment of excess
free cash flow to support shareholder value
Dividends vs. Repurchases vs. Net Debt
Current Leverage Strategy Provides a Solid Foundation for Capital Deployment and Value Creation
(1) Leverage Ratio calculated as net debt divided by LTM adjusted EBITDA, as of the end of the applicable period. (2) Pro Forma assumes RSC acquisition occurred on January 1, 2012. (3) Reflects leverage as reported, which includes borrowings related to the acquisitions of both
NES and Neff without full-year benefits of EBITDA contribution. (4) Reflects leverage as reported, which includes borrowings related to the acquisitions of both Baker and Blue Line without full-year benefits of EBITDA contribution. (5) Reflects leverage as reported, which includes
borrowings related to the acquisition of General Finance without full-year benefits of EBITDA contribution. (6) Reflects leverage as reported, which includes borrowings related to the acquisition of Ahern without full-year benefits of EBITDA contribution.
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