United Rentals M&A and 4Q Results Presentation
Structural changes are key to increased margins
60%
50%
40%
Adjusted EBITDA Margin (1) (%)
Adjusted EBITDA margin
+ ~1,300 bps above prior peak (3)
30%
20%
10%
0%
(2)
2008 2009
2010 2011 2012
2013
2014 2015 2016
2017 2018 2019 2020 2021F
•
·
Key Drivers of Margin Gains
Strong fixed-cost absorption.
Cyclical leverage (e.g., SG&A as % of sales)
M&A cost synergies (e.g., RSC, NES, Neff)
Operational efficiency gains
•
Process improvements (e.g., LEAN, 5S, etc.)
Technology (e.g., logistics, CORE, telematics)
Improved mix
.
•
Shift towards higher margin Specialty
Improved segment/end-market mix
⚫ De-emphasis of low margin/return businesses.
·
Improved used equipment sales strategies.
Notes:
Dramatic cycle-over-cycle margin improvement
(1) Adjusted EBITDA is a non-GAAP measure. Adjusted EBITDA margin represents adjusted EBITDA divided by total revenue. See the tables provided elsewhere in this presentation for reconciliations to the most comparable GAAP measures.
(2) 2021F reflects the mid-point of guidance.
Reflects change between 2008 and 2021F.
(3)
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2021 United Rentals, Inc. All rights reserved.
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