Driving Digital Transformation and Shareholder Value slide image

Driving Digital Transformation and Shareholder Value

Structural changes are key to increased margins 60% 50% 40% 30% 20% Adjusted EBITDA Margin (%) Adjusted EBITDA margins +~1,380 bps above prior peak 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 • · · 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. United Rentals® Dramatic cycle-over-cycle margin improvement United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved. 31
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