United Rentals Financial Performance and Market Exposure
Structural changes are key to increased margins
60%
50%
40%
30%
20%
Adjusted EBITDA Margin (%)
Adjusted EBITDA margins
~1,500 bps above prior peak
10%
0%
2008
2009 2010
2011
2012
2013 2014 2015 2016 2017
2018 2019F
.
·
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
Note: 2019F reflects mid-point of guidance.
·
Improved used equipment sales strategies.
Dramatic cycle-over-cycle margin improvement
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.
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