Capital Allocation and Digital Strategy Update
(1)
Cash Flow: Strong and resilient free cash flow generation
Cumulative FCF
Last 5-years (2)
$2,500
$9.7 B
Cumulative FCF
Last 10-years (3)
$14.7B
10-Year Average
Cash Conversion (4)
144.8%
10-Year Average
FCF Margin (5)
17.1%
$2,000
$1,500
$1,000
$500
$574
$1,592
$1,334
$1,195
$983
$924
$0
2014
2015
2016
2017
2018
$2,454
$1,768
$1,527
$2,314
$2,100
2019
2020(6)
2021(6)
2022
2023
(7)
2024F
Free Cash Flow(1) ($M)
Durable Free Cash Flow Provides Significant Financial Flexibility and Optionality for Value Creation
(1) Free cash flow is a non-GAAP financial measure. See reconciliation to the most comparable GAAP measure provided elsewhere. Free cash flow presented on this page excludes the impact of merger and restructuring payments. Cash conversion noted for the 10-year
average excludes a one-time tax benefit in 2017. (2) Reflects 5-year period from 2019 to 2023, excluding merger and restructuring related payments. (3) Reflects 10-year period from 2014 to 2023, excluding merger and restructuring related payments. (4) Cash conversion
is calculated as free cash flow divided by net income. (5) Free cash flow margin is calculated as free cash flow divided by total revenue. (6) 2020 reflects a ~$1.2 billion year-over-year decrease in net rental capital expenditures, while 2021 reflects a $1.9 billion year-over-
year increase in net rental capital expenditures. (7) 2024F reflects the mid-point of guidance.
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