Driving Digital Transformation and Shareholder Value slide image

Driving Digital Transformation and Shareholder Value

Balance sheet strength has improved Leverage Ratio (1) 3.6x (2) Actual 3.0x (4) 3.0x 2.9x 2.9x (3) 2.8x 2.7x 2012 2013 2014 2015 2016 2.6x 2.5x 2017 2018 2019 1Q 2020 2.0x - 3.0x targeted leverage range across the cycle (1) Leverage Ratio calculated as net debt divided by adjusted EBITDA. In Q1 2020, the Company updated its definition of net debt to reflect the balance sheet value of debt less cash and cash equivalents in an effort to simplify the leverage ratio calculation. Previously net debt excluded premiums, discounts and deferred financing costs. 2018 is the only year for which the change in definition resulted in a change in the leverage ratio (3.1x under the prior definition); all other years presented were not impacted. (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. United Rentals 9 United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved. 38
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