united rentals 2014 investor presentation

Executing for Growth

and Returns

Investor Presentation Fourth Quarter and Full Year 2014

2

Note: This presentation provides information about free cash (usage) flow, EBITDA, adjusted EBITDA and adjusted EPS, which are non-GAAP financial measures. This presentation includes a reconciliation between free cash (usage) flow and GAAP cash flow from operations, a reconciliation between both adjusted EBITDA and EBITDA, on the one hand, and GAAP net income, on the other hand, a reconciliation between both adjusted EBITDA and EBITDA, on the one hand, and GAAP cash flow from operations, on the other hand, and a reconciliation between adjusted EPS and GAAP EPS. (Information reconciling such forward-looking non-GAAP financial measures is unavailable to the Company without unreasonable effort.)

Introductory Information

Unless otherwise specified, the information in this presentation, including forward looking statements related to our outlook, is as of our most recent earnings call held on January 22, 2015. We make no commitment to update any such information contained in this presentation.

Certain statements in this presentation are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These statements can generally be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will,“ "should," "seek," "on-track," "plan," "project," "forecast," "intend" or "anticipate," or the negative thereof or comparable terminology, or by discussions of vision, strategy or outlook. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the challenges associated with past or future acquisitions, such as undiscovered liabilities, costs, integration issues and/or the inability to achieve the cost and revenue synergies expected; (2) a slowdown in the recovery of North American construction and industrial activities, which decreased during the economic downturn and significantly affected our revenues and profitability, or a slowdown in the energy sector, in general, could reduce demand for equipment and prices that we can charge; (3) our significant indebtedness, which requires us to use a substantial portion of our cash flow for debt service and can constrain our flexibility in responding to unanticipated or adverse business conditions; (4) the inability to refinance our indebtedness at terms that are favorable to us, or at all; (5) the incurrence of additional debt, which could exacerbate the risks associated with our current level of indebtedness; (6) noncompliance with covenants in our debt agreements, which could result in termination of our credit facilities and acceleration of outstanding borrowings; (7) restrictive covenants and amount of borrowings permitted under our debt agreements, which could limit our financial and operational flexibility; (8) a decrease in levels of infrastructure spending, including lower than expected government funding for stimulus-related construction projects; (9) fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated; (10) our rates and time utilization being less than anticipated; (11) our inability to manage credit risk adequately or to collect on contracts with customers; (12) our inability to access the capital that our business or growth plans may require; (13) the incurrence of impairment charges; (14) our dependence on distributions from subsidiaries as a result of our holding company structure and the fact that such distributions could be limited by contractual or legal restrictions; (15) an increase in our loss reserves to address business operations or other claims and any claims that exceed our established levels of reserves; (16) the incurrence of additional costs and expenses (including indemnification obligations) in connection with litigation, regulatory or investigatory matters; (17) the outcome or other potential consequences of litigation and other claims and regulatory matters relating to our business, including certain claims that our insurance may not cover; (18) the effect that certain provisions in our charter and certain debt agreements and our significant indebtedness may have of making more difficult or otherwise discouraging, delaying or deterring a takeover or other change of control of us; (19) management turnover and inability to attract and retain key personnel; (20) our costs being more than anticipated, and the inability to realize expected savings in the amounts or timeframes planned; (21) our dependence on key suppliers to obtain equipment and other supplies for our business on acceptable terms; (22) our inability to sell our new or used fleet in the amounts, or at the prices, we expect; (23) competition from existing and new competitors; (24) disruptions in our information technology systems; (25) the costs of complying with environmental, safety and foreign laws and regulations; (26) labor difficulties and labor-based legislation affecting labor relations and operations generally; and (27) increases in our maintenance and replacement costs, and/or decreases in the residual value of our equipment. For a more complete description of these and other possible risks and uncertainties, please refer to our Annual Report on Form 10-K for the year ended December 31, 2014, as well as to our subsequent filings with the SEC. The forward-looking statements contained herein speak only as of the date hereof, and we make no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations.

3

Table of Contents

Introduction 4

Market Overview 10

Margin Enhancement 17

Growth Through Customer Solutions 36

Fleet 42

Financial Overview 51

4

is the Industry Leader,

Creating a New Standard for

Operational Execution to

Drive Growth and Returns

Through the Cycle

5

United Rentals

12%

HERC 5%

Sunbelt 6%

Other 77%

Equipment Rental Leader

Scale Creates Distinct Competitive Advantages and Higher Quality Services for Customers

#1 U.S. Market Share

881 locations across North America

Diversified mix

– Industrial/Non Construction – 51%

– Non-Residential Construction – 45%

– Residential – 4%

Team of 12,500 employees

6

Creating a New Industry Standard

Deploying the best people, equipment and solutions to enable our customers to safely build a better and stronger future

Our Vision

Driven By These Values

Safety First Leading By Example Continuous Innovation Integrity Passion for People Community Minded

Superior

returns to our

stockholders

by achieving

strong and

consistent

financial

performance

7

Our Four Pillar Strategy for Success

Driving Growth and Returns Through the Cycle

National Account Strategy

Total Control Market Leadership Penetrating high

return markets Growing industrial

customers

Invest in related adjacencies, such as tanks or pumps – High customer

overlap – Shared capability – Attractive returns

Evaluate international opportunities

Customer Service model

Most advantaged cost position

Best execution at the branch

Significant improvements in productivity

Grow cross-sell and customer relevancy

Expand key categories – Trench – Tools – Power & HVAC

Invest in high-return M&A

Pumps

Grow the Core

New Standard

for Operational

Execution

Expand Specialty

Businesses

Fill Growth

Pipeline

8

Entering Next Phase of Strategic and Financial Evolution

2012–2013 2009–2012

2013

Operation

United

Business transformation through operational improvement and customer focus

RSC

Transformation

Became the scale industry leader; achieve benefits through “Best of Both” philosophy and successful realization of synergies

Operation

United 2

and Business Mix

Delivering on new standard of operational excellence across a more diversified customer base to drive higher, more consistent through-cycle returns

9

Safety as a Core Value

Branch Focused

Initiatives

Tracking and analyzing leading indicators and root causes to better anticipate and prevent hazardous situations

Launching comprehensive training and awareness initiatives to prevent major incident types among higher-risk job categories

United Academy® continues to gain strong momentum in

attracting customers and growing revenue opportunities following mid-2014 launch

United Academy® recognized with “Lift and Access” 2014 Innovation Award, further positioning URI as a leader in workplace safety

United Academy™

Gaining Momentum

Achieved a 0.95 Total Recordable Incident Rate (TRIR) for 2014, which leads our industry and is in the top quartile of world-class companies for all industry sectors

Recognized with “Lift and Access” 2014 Employer of the Year Award, positioning URI as an industry leader in people safety

Building a World-Class

Safety Culture

Recordable Injury Rate Below 1.0 in 2014

Market Overview

11

-1%

-23% -3%

+11%

+19% +6%

+5% +0% +6%

+9%

+11%

+12%

+7%

+7%

+9% +6%

+7%

+8%

+8%

+9%

0

10

20

30

40

50

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: IHS Global Insight Forecast

North American Rental Industry Expected to Grow

Broad-based Construction Activity Picking Up

+9% $Bn

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Down Same Up

(1) Survey of Key accounts only conducted by 3rd party.

Approximately 170 surveys conducted each month

Survey results as of 12/31/14

Customer Confidence Index

Only 1% See Slower Growth in 2015

13

Current Pipeline of Over $370B in Construction and Industrial Projects

1) Projects with bid date in last 6 months or start date in 2015 (Bidding phase or later) 2) Active projects engineering phase or later with a start date in 2014 or 2015

Dodge Projects* - $55B Engineering and Construction

Projects** - $323B

*Source: Dodge/McGraw Hill **Source: IIR-Industrial Information Resources

14

Construction Growth Expected Across US in 2015

CA, FL, OR, NV, AZ expected to see double digit growth

Source: IHS

15

Manage risk

Control expenses and inventory

The right equipment for the job

24/7 customer care

Save on storage/warehousing

Reduce downtime

No need for maintenance

Why Rent – Total Cost of

Ownership

Rental Penetration Likely to Continue to Grow

Save disposable costs

Cost control

Equipment tracking

No licenses

Conserve capital

Reasons to Rent

16

Why Rent – Total Cost of Ownership

Needs Assessment Fleet Availability Equipment Sourcing Fleet Deployment

ROI/Performance Analysis Wrench Time Enablement Consumption Management

Eq. Logistics Operator training PM & Repair Regulatory Compliance

Demobilization Decommission/Replace Liquidation

Planning/

Procurement

Operating/

Maintenance

Reporting/

Optimization

Disposal/

Liquidation

Renting Addresses Ownership Pain Points

Margin Enhancement

Applying Powerful Tools to Deliver Further Margin Expansion

18

* Rouse Analytics

Expect Rental Rate Expansion to Continue

URI Pricing Strategy: 400 Basis Point Improvement, Rates Surpass 2007 Levels

URI EBITDA Margins and Rental Rate Index Cumulative Purchase Price Inflation Relative to 2007*

Environmental Factors

Equipment Cost (Tier IV)

Pricing Benchmarking Services

Continued Rental Penetration

Best in Class Tools

Profitability Model

Disciplined Processes

31.5% 32.8%

26.7%

30.9%

35.5%

42.6% 46.3% 47.8%

75

80

85

90

95

100

105

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2007 2008 2009 2010 2011 2012 PF 2013 20140%

5%

10%

15%

20%

25%

2007 2008 2009 2010 2011 2012 2013 2014

Positive Pricing Outlook

19

Unique Operating Advantages Support Further Margin Enhancement

Lean Initiatives/

Operational Excellence

Metro Model

Scale Advantage

Business Mix

Continuous

Improvement

Best Cost

Structure

Higher Utilization

Potential

Emphasizing

Contribution Margin

20

Lean Processes Drive Real Value

Decreased Outside Hauling Costs

Increased Dispatches per Driver

Improved Branch Cycle Time

Reduced Branch Overtime Costs

Reduced Invoice Disputes

Eliminated Empty Trucks

Shop Productivity

Cost per Delivery

Credit Memos & Overrides

Time Utilization

LEAN Activity

Kaizen Improved processes in yards, shops, dispatch and sourcing

B-PRO Adopted order-entry best-practices across the network

Specialty Pilot Applying same approach to trench division

Productivity Gains Value Levers

$16 Million of Efficiencies Achieved in 2014

Run Rate of $30 Million Towards $100 Million Goal

21

Do it Right the First Time!

Lean’s Goal

To build a sustainable, scalable platform for profitable growth…

Smarter

Sustainable

Engage our people in systematically and continuously eliminating waste everywhere

Scalable

Our entire organization is focused on delivering unmatched customer service

Profitable Growth

Build a foundation for long-term success

| Faster | Safer

22

Do It Right the First Time

Eliminating Waste with Best Practices

Kaizen

A cross-functional team (Field & Ops Excellence Leaders)

1-week discovery

Identify and eliminate Waste

Apply LEAN and Kaizen techniques to identify and eliminate waste

PIT Process Improvement Team

Field and Ops Excellence Leaders

2-week implementation

Best Practices across linked processes

Initial PIT: Logistics

B-PRO Best Practice Roll-Out

Field Ownership

1 Day, 1 Process

Implementation of pre-selected standard best practices

Initial B-PRO: Order Accuracy

23

Telematics

Customer Benefits Commitment to

Telematics Internal Benefits

Targeting 87% OEC

Telematics Standard on 2015 deliveries

Initiated retrofit program

Installations Underway

Visibility into run-time & equipment utilization

Ability to locate equipment

Billing & Account access

Fuel Alerts

Performance monitoring & service alerts

Locating of off-rent equipment for pick-up

Overtime and revenue recovery

24

GPS Technology – Monitoring Equipment

Action options when viewing in map

Customers Can Quickly Find Rental Assets

25

Larger, More Stable Customers

Stronger Market, Customer & Fleet Mix

Four Levers to Help Achieve Less Cyclical Mix

Diversified End Market Exposure

Diversified Account Base Increasing Specialty Exposure

Specialty*

General Rental

Key Accounts

Unassigned Accounts

Industrial/ Non-Construction

Non- Residential

Residential

Accounts % of Revenue

Top 10 5%

Top 100 17%

Top 1000 29%

51%

45%

4%

64% 36%

18%

82%

Balanced Customer Mix Provides Growth Flexibility

* Includes Specialty items from General Rental fleet

26

Trench Safety Power & HVAC Pump Solutions Tool Solutions

*ROCA= Return on Controllable Assets; **A small amount of specialty equipment is managed by general rental business

What is Specialty Rental?

Fleet and Customers That Require a Different Business Model to Serve Effectively

Excavation support solutions, confined space entry equipment and customer training

Used for construction, utility installs, manhole work, and other underground applications

Complete solutions for mobile power and air flow

Used for disaster response, plant shut downs, commercial renovations, and seasonal climate control

Full range of pumps, hose, & fittings for fluid transfer

Used by municipalities, industrial plants, mining, construction, and agribusiness

Tool trailers stocked with hoisting, torqueing, pipe fitting, & air tools

Used during refinery and other industrial shut downs, and also at large construction sites

Specialty Business Represents 18% of Total Revenue**

ROCA*=43% ROCA=30% ROCA=44% ROCA=35%

27

Trench Safety Power & HVAC Pump Solutions Tool Solutions

Strategy by Business

Strategy

Lead in product innovation.

Increase compliance and rental penetration.

Expand footprint and drive local market penetration.

Focus on Industrial, O&G (on/offshore), and Entertainment verticals.

Utilize Gen Rent sales force to gain share in Industrial and Commercial.

Increase managed tools solutions.

Expand footprint. Diversify end markets

into industrial, municipal, mining, and commercial.

Footprint (cold starts)

Cross-sell

Talent Acquisition and Development

Bolt-on M&A

2014/15 Strategic Workstreams

28

Share of Business by Customer Specialty Has a Diversified Customer Base

Trench Safety

Pump Solutions

Power & HVAC

Tool Solutions

10% 5%

20%

15%

40%

35%

5% 5%

60% 30%

10%

10%

14%

24%

48%

2%

45%

8%

33%

4%

20%

55%

8%

4% 13%

60% 30%

10%

2%

4% 3%

2%

29

High Returns High ROCA and longer asset lives on Specialty

equipment

Why is Specialty Rental an Attractive Business?

Customer Loyalty

Specialty improves relationships with high-value industrial and key accounts

Competitive Advantage

Offer customized solutions to customer verticals requiring deep expertise

Growth Platform for growth in rapidly expanding

markets

30

Economics of Specialty: High Returns on Initial OEC Investment

Multiple of Cash Flows Earned Over Asset Life / OEC

Asset Life: 10-15 yrs ~7 yrs 7-10 yrs ~10 yrs

EBITDA/OEC: 62% 56% 48% 35%

8.8x

4.6x 4.5x 3.9x

Trench Tools Pumps Power & HVAC

Specialty is Accretive to Overall ROIC

31

Cross Selling Specialty with our National Accounts

Significant runway ahead to grow cross sell in our Specialty segments

Cross Sell Delivers Customer Value

32

Trench Safety Continues Strong Growth

Trench Safety Annual Rental Revenue Growth

31%

36%

21%

18%

FY 2011 FY 2012 FY 2013 FY 2014

Largest trench safety rental company in North America

Trench is first on the job and supports cross-selling opportunities for all other URI categories

2 Trench branches opened in 2014

Extend Market Leadership Through Expertise and Product Innovation

33

Power & HVAC Offers Attractive Growth Opportunity

Strong Year over Year Performance

High returns & longer asset life

Blue Stream acquisition closed in May 2014

Business specializes in turn-key services and solutions

8 branches opened in 2014

Power & HVAC Annual Rental Revenue Growth

63%

34%

26%

62%

FY 2011 FY 2012 FY 2013 FY 2014

34

Pump Solutions provides customers a full range of pumps, hose, and fittings for fluid transfer

National Pump acquired in Q2 2014; integration complete

Quickly capturing cross-sell opportunities for Pumps with our strong National Account network

4 new Pump branches opened in 2014

Pump Solutions Yields Strong Cross Sell Opportunities

Q4 2014 Rental Revenue up 42%*

*Pro forma as if the National Pump acquisition took place on January 1, 2013.

35

Provide Tool Management Solutions to Industrial Customers in Hoisting, Welding, Torqueing, Pipe Fitting, & Other Tools

High margins and attractive return assets

Drive customer entanglement with industrial and commercial accounts

National Account represents ~70% of total revenue

Offers total managed project solutions & software to improve productivity and wrench time

Tool Solutions Improves Productivity

Q4 2014 Rental Revenue Up 44%

Growth Through Customer Solutions

Achieve Superior Performance by Leveraging Unique Advantages

37

Customer Solutions Drive Revenue Growth and Capital Efficiency

Engagement

Strategy

Total Control®

On-Sites

Deliver Technology-Enabled, Innovative Solutions to Improve Customer Productivity

Tailored engagement strategies to meet the specific needs of different customers – from large enterprises to small, local businesses

Focus dialogue on solutions to increase productive “wrench time” for customers’ business

Software solution developed to help customers more effectively manage rental equipment

Total Control® users gain business advantages – focuses relationship on utilization, not rate

Right tools at the right time guaranteed with onsite personnel to reduce downtime and ensure high-quality, tailored service

38

Customer Engagement Strategy

Large Industrial

Enterprise Agreements

“Company-wide Solutions”

Consumption Management

“Wrench Time”

“Wrench Time”

24/7 After Hours

Breadth & Depth

Large Commercial

Job Site Management

“Reliable Partner”

Availability

Reliability

Accessibility

Locals

“Ease of Doing Business”

Value Proposition Tailored to Meet Specific Customer Needs

39

Embeds United as Rental Company of Choice

Software eliminates waste with enhanced visibility/accountability – Increase equipment utilization – Less duplication – Conserve capital

through rental – Eliminate equipment

maintenance cost

Equipment Utilization

6.0%

20.5%

43.0%

Self Owned

Fleet

Self Managed

Rental

Total

Control®

Helping Customers Manage Fleet

Total Control® Provides Competitive Edge

40

A Meaningful Competitive Edge

$ Millions

Attractive Added Value for Customers

Installs began late Q2 with Roll-Out of

Total Control®

Revenue Grew 41.6% YOY

Customers Embrace Total Control®

$146.1

$206.9

Q4 2013 Q4 2014

60 84

194

409

Q1 2014 Q2 2014 Q3 2014 Q4 2014

41

“On Sites” = Up Time

“Inside the Fence” Sites

Increased Utilization – Leniency for Shared Equipment – Lower Equipment Cost

On-Time Delivery “Guaranteed”

On Site Mechanic = No Downtime

Reduction of Traffic = Safety

Better meeting customer’s equipment needs

High Volume, High Utilization, Lower Cost to Serve

43

39%

2%

3% 13% 3%

16%

10%

4% 5%

Note: Percentages based on ending balance as of 12/31/2014

Fleet Mix

$8.4 Billion of Fleet Comprised of

Approximately 430,000 Units

Aerial

Compaction

Earth Moving

Forks – Reach

Forks – Rough <1%

Other

Compressors

Forks – Industrial

Light 2%

Power Trench 1%

Trucks Welders 1%

Serves Diverse Customer Base

Customers Know We Have the Fleet They Need

44

* All serialized assets regardless of equipment value (non bulk) included in time utilization ** Calculated using ARA metrics *** Fleet age is calculated on an OEC-weighted basis. Total fleet age is 43.0 months at 12/31/2014

3,300 Equipment Classes with Original Cost of $8.4B

Booms and Lifts

Earth Moving Forklifts Trench and Other

Total (Average)

% of Q4 2014 Rental Revenue

35.4% 12.3% 17.1% 35.1%

Time Utilization*

76.0% 64.2% 81.1% 58.4% 70.6%

Dollar Utilization**

44.7% 46.3% 42.8% 63.8% 49.8%

Average Fleet Age*** (in months)

54.2 33.7 36.1 36.4 43.0

Q4 Dollar Utilization 49.8%

45

Managing Fleet with a Life Cycle Approach

Selling Oldest Fleet

Rental Capex and Used Sales ($MM)*

2010 2011 2012 2013 Q4 2013Q4 2014

72 83 83 85 88 89

Ag

e o

f U

sed

Sale

s i

n M

on

ths

2010 2011 2012 2013 2014 YTD

673

1,390 1,321 1,580 1,701

($269) ($363) ($463) ($490) ($544)

Time Utilization

2010 2011 2012 2013 Q4 2013 Q4 2014

63.7%

67.8% 67.5% 68.2%

69.3% 70.6%

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

≤ 1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 >9 Total

Years

Age Composition ($MM)

*On a pro-forma basis

46

0

5000

10000

15000

20000

25000

30000

Today Tier IV Future (6 years)

Rent Buy

Rent vs. Buy Impact Of Tier IV

+9.7%

+25.2% +14.8%

Compelling Economic Benefits of Renting

48 months term

10% finance charge

50% time utilization

3% rate increase yearly for 6 years for future calculation

2% inflation on new equipment price

47

Attractive Asset Economics

(15,000)

0

15,000

Y0 Y1 Y2 Y3 Y4 Y5

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Purchase Price (6,500)

Rental Revenue 5,187 5,503 5,668 5,838 6,013

Ancillary Revenue 447 474 488 503 518

Operational Costs (2,061) (2,130) (2,184) (2,240) (2,298)

Selling Price $3,233

Total Cash Flow (6,500) 2,709 3,176 2,937 2,827 6,142

Cumulative Cash Flow

(6,500)

(3,791) (615) 2,322 5,179 11,291

Incremental Asset Generates 40% Return, Helping Drive ROIC Higher

Sample Asset

Cumulative Cash Flow

48

$ Thousands

* Sample data only

Total Cost of Ownership

Total Cost of Ownership

Resale value after 7 years (retail)

Maintenance cost over life (labor)

Maintenance cost over life (parts)

Acquisition cost

Brand C

89

55

8

10

(52)

Brand B

95

60

9

9

(53)

Brand A

93

59.5

7.5

9

(50)

Gap vs. Best of Best +8% +9%

Brand C Has a 8%–9% Total Cost Advantage

49

Rental Useful Life Evaluation

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12

Rental Revenue % of Average

0%

20%

40%

60%

80%

100%

120%

140%

1 2 3 4 5 6 7 8 9 10 11 12

Resale Value % of Replacement Cost

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

1 2 3 4 5 6 7 8 9 10 11 12

R&M Cost % of Replacement Cost (est)

Rental useful life evaluated to set optimal age to sell an asset

Extending the life of our booms by 2 to 3 years can increase our IRR by 33%

50

Maintenance and Growth CapEx

$ Millions

* Reflects estimated 2% annual inflation factor compounded over average life of OEC sold ** Excludes bulk equipment

2011 Combined

Pro-forma

2012 Combined Pro-forma

2013 2014

2015

Forecast

OEC Sold** $752 $933 $941 $1,016 $1,000

Inflation Factor* 13.8% 13.8% 14.2% 14% 14%

Inflation Uplift 104 129 133 142 140

Total Maintenance CapEx

$856 $1,062 $1,074 $1,158 $1,140

Growth CapEx $534 $432 $506 $543 $560

Total Rental CapEx $1,390 $1,485 $1,580 $1,701 $1,700

A Balanced and Disciplined Approach to Fleet Growth

Financial Overview

Delivering Strong Sustainable Results

52

Adjusted EBITDA of 49.6%, a Quarterly Record

Q4 2014 Results

Rates +4.1%

Time Utilization 70.6% +130bps

Adjusted EBITDA $775M or 49.6% +$124M or 90 bps

Adjusted EBITDA Flow-Through 54.9%

LTM ROIC 8.8%, increase of 1.3 pp

53

2015 Outlook

Total Revenue $6.0B to $6.2B

Adjusted EBITDA $2.95B to $3.05B

Increase in Rental Rates (year-over-year)

Approximately 3.5%

Time Utilization Approximately 69%

Net Rental Capital Expenditures after Gross Purchases

Approximately $1.2B, after gross purchases of approximately $1.7B

Full Year Free Cash Flow $725M to $775M

54

Our Principles: Maximizing Financial Flexibility

Valuable asset base supports reasonable amount of debt – High operating margins generate significant cash flow/dollar of revenue – Asset base can be monetized to support cash flow requirements

Debt maturities timed to avoid excessive refinancing needs in single year

Maintain diversified funding sources: – Secured, unsecured, hybrids – Access to alternative investor base – No reliance on one investor base

No single maturity of a funding source should be too large

Preserves a margin of safety vs. covenants

Supports Organic Growth, M&A and Return to Stockholders

55

Note: As of December 31, 2014. Principal amounts only, no OID or premium included. *Includes $50M in Letters of Credit.

Ample Liquidity and No Significant Near-Term Maturities

$ Millions

Monitor Markets to Opportunistically Refinance Debt

$1,392*

ABL Used

$750 7.375% Senior

Unsecured Notes

$750 8.375% Senior

Sub Notes

7.625% Senior

Unsecured Notes

5.75% Senior

Unsecured Notes

5.75% Senior

Secured Notes

Approximately $1B in

ABL capacity and

cash creating ample

liquidity to grow the

business

Senior Subordinated

Note callable in

September 2015

Senior Note callable

in February 2016

$582 $750

$1,500

$650

$1,325

$925 $850

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

$548 A/R Securitization

Used

$34 4.00% Convert.

Notes

$946 ABL

Unused

$1,354*

ABL Used

5.75% Senior

Secured Notes $750

7.375% Senior

Unsecured Notes

$750 8.375% Senior

Sub Notes

8.25% Senior

Unsecured Notes

7.625% Senior

Unsecured Notes 6.125%

Senior Unsecured

Notes

5.75% Senior

Unsecured Notes

$2,300

5.75% Senior

Secured Notes

Senior Secured

Note callable

in July 2015

$2 A/R Unused

56

*Excludes merger and restructuring expenses. Merger and restructuring expenses were $38M in 2013 and $17M for 2014.

Expect to Generate about $2.5B in Free Cash Flow*

End Market Strength and Fleet Discipline Contributing to Powerful FCF

$ Millions

$421

$725 - $775

$800+

$1,000+

Actual Forecast

2016 2017 2015 2013 2014

$574

57

Assumptions Driving FCF Outlook

Gross rental CapEx spend of about $1.7B; net rental CapEx spend of $1.2B for the next 3 years

About 3.5% rental rate growth in 2015 and 3% thereafter

Cash Taxes – Remaining Federal NOLs utilized in 2015 – About $125M cash taxes in 2015 – About $475M cash taxes in 2016 – About $650M cash taxes in 2017

Cash Interest – Range of $450M-$475M in 2015, 2016 and 2017

Disciplined Fleet Growth With Continued Rate Progression

58

*Leverage ratio calculated as total debt, net of cash, excluding original issuance discounts and premiums divided by adjusted EBITDA.

Capital Allocation Strategy New $750M Share Repurchase Program

Investing in Growth While Managing Leverage and Returning Cash to Stockholders

Managing Leverage

Return Cash to

Stockholders

Invest in Growth

M&A Organic

Target leverage range over the cycle of 2.5x–3.5x

Net leverage* of 2.9x at December 31, 2014

Credit ratings of BB- by S&P and Ba3 by Moody’s

Completed $500M share repurchase program

Initiated new $750M share repurchase program in December to be completed over an 18 month period

Balanced strategy creates flexibility to pursue strategic assets as opportunities arise

Expanded role in specialty with completion of National Pump acquisition in April 2014

Continued organic investments to support growth and boost productivity

Opened 18 specialty branches in 2014 with plans of approximately 16 additional openings in 2015

59

(1) Leverage Ratio calculated as total debt and QUIPs, net of cash, excluding original issuance discounts and premiums divided by adjusted EBITDA. Assumes no M&A. (2) Pro Forma assumes RSC acquisition occurred on January 1, 2011 and excludes cost synergies. (3) Pro Forma 2012 leverage assumes RSC acquisition occurred on January 1, 2012.

Leverage Ratio Continues Decline1

4.6

3.6 3.0 2.9 2.6

2011 2012 2013 2014 2015 2016 2017

Actual Forecast

2.5x – 3.5x Target Leverage Range of the Cycle Lower End of Target Range in 2015

“Dry Powder”

2

3

60

WACC Range 8.4%

11.0%

(2.4%)

2.3%

2.1% 0.3%

0.3%

0%

2%

4%

6%

8%

10%

12%

14%

Sep-14 Rate FleetGrowth and

Utilization

Lean Fleet and CostInflation

BusinessMix/Other

Approx 20171 4 5

6 2

3

10% Internal Hurdle

Rate

Building a Bridge to Higher Returns*

*Illustrative – After tax and including goodwill (1)Assumes average rate of 3.25% over next 3 years; (2)Assumes 7% annual growth in average fleet size; (3) Assumes 20 basis points improvement per year; (4)Assumes $100M run rate EBITDA impact from Lean; (5) Assumes 2% annual inflation in average fleet purchase prices; (6) Assumes 3% annual inflation in all operating costs.

8.8% December 2014

61

2008 2009 20101 2011 20122 20133

20144

EBITDA ($117) $589 $649 $879 $1,772 $2,181 $2,599

Cash Interest (218) (34) (229) (203) (371) (461) (457)

Cash Taxes (46) (3) 49 (24) (40) (48) (100)

Gain on Sale of Equipment (69) (6) (41) (68) (127) (182) (240)

Goodwill Impairment Charge 1,147 — — — — — —

Working Capital/Other 67 92 24 28 (513) 61 (1)

Cash from Operations 764 438 452 612 721 1,551 1,801

Rental Capex (624) (260) (346) (774) (1,272) (1,580) (1,701)

Non-Rental Capex (80) (51) (28) (36) (97) (104) (120)

Proceeds on Sale of Rental 264 229 144 208 399 490 544

Proceeds from Sale of Non-Rental

Equipment 11 13 7 13 31 26 33

Cash Invested (429) (69) (223) (589) (939) (1,168) (1,244)

Excess Tax Benefits from Share Based

Payment Arrangements, Net — (2) (2) — (5) — —

Free Cash Flow (Usage) $335 $367 $227 $23 ($223) $383 $557

Cash Flow 2008–2014 ($M)

Consistent Free Cash Flow Generation Over Cycle

12010 includes a $55M federal tax refund. 22012 EBITDA is presented on an adjusted basis. 2012 includes $150M of aggregate cash payments related to merger and restructuring activities. 3Includes aggregate cash payments of $38M related to merger and restructuring activities. 4Includes aggregate cash payments of $17M related to merger and restructuring activities.

62

Net Usesof Capital

58%

31%

Net Sourcesof Capital

72%

28%

Historical Capital Allocation 2010–2014

Note: Net Debt Issuance includes cash from balance sheet and other items.

Organic Investment

Strategic M&A

Return to

Stockholders

Manage Leverage

Targets

(2.5x–3.5x)

Priorities

Cash from

Operations

Debt Issuance

CapEx

Cash

Acquisitions

11%

Share

Repurchases

100% Equals $7.2bn

63

Appendix

64

Timeline

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Founded

Achieves Industry

Leadership in First Year

Launch of E-Rental Store

Establishes E-Commerce

Platform

Expansion of Trench Safety Business Captures Niche

Leadership

$3 Billion in Revenues

Marks a Company and Industry Milestone

Customer Training Expands with Launch

of National Program

Enters Its Second Decade as Industry

Leader

Launch of Sustainability

Program Advances

Environmental Stewardship

Combines with RSC

Branch Network Grows to 500 Locations in North America National Accounts

Program Grows by 50% as Footprint Expands

Forbes Names One of “400 Best Big Companies”

Company’s First Centralized Customer Care Center Opens

New Strategy Refocuses Company on Core Equipment Rental Business

Earns National Recognitions for Support of Veterans

Expands Industrial Power & HVAC Footprint with Acquisition and Cold-starts

“What a Strange Trip it has Been”

2014

Acquires National Pump

65

Performance Goals for Senior Executives Align with Creating Stockholder Value

Short Term Incentive Plan Measures: EBITDA Dollar Growth

Economic Profit Improvement

2014 Performance Measures Focus on Profitable Growth

Over 60% of senior executives compensation is at risk and subject to

these profitable growth measures

Long Term Incentive Plan Measures: Revenue Growth

Economic Profit

Improvement

ROIC Multiplier

Field Bonus Performance Measures Align with Senior

Management Goals

66

Adjusted Earnings Per Share

GAAP Reconciliation

(1) Reflects transaction costs associated with the 2012 RSC acquisition and

the April 2014 National Pump acquisition.

(2) Reflects the amortization of the intangible assets acquired in the RSC and

National Pump acquisitions.

(3) Reflects the impact of extending the useful lives of equipment acquired in

the RSC acquisition, net of the impact of additional depreciation associated

with the fair value mark-up of such equipment.

(4 ) Reflects additional costs recorded in cost of rental equipment sales associated

with the fair value mark-up of rental equipment acquired in the RSC acquisition

and subsequently sold.

(5) Reflects a reduction of interest expense associated with the fair value mark-up

of debt acquired in the RSC acquisition.

(6) Primarily reflects severance costs and branch closure charges associated with

the RSC acquisition.

(7) Primarily reflects write-offs of leasehold improvements and other fixed assets

in connection with the RSC acquisition.

We define “earnings per share – adjusted” as the sum of earnings per share – GAAP, as reported plus the impact of the following special items: merger related costs, merger related intangible asset amortization, impact on rental depreciation related to acquired RSC fleet and property and equipment, impact of the fair value mark-up of acquired RSC fleet, impact on interest expense related to fair value adjustment of acquired RSC indebtedness, restructuring charge, asset impairment charge and loss on repurchase/redemption of debt securities and retirement of subordinated convertible debentures. Management believes that earnings per share - adjusted provides useful information concerning future profitability. However, earnings per share - adjusted is not a measure of financial performance under GAAP. Accordingly, earnings per share -

adjusted should not be considered an alternative to GAAP earnings per share. The table below provides a reconciliation between earnings per share – GAAP, as reported, and earnings per share – adjusted.

Three Months Ended Year Ended

December 31, December 31,

2014 2013 2014 2013

Earnings per share - GAAP, as reported $ 1.88 $ 1.31 $ 5.15 $ 3.64

After-tax impact of:

Merger related costs (1) (0.02 ) — 0.06 0.05

Merger related intangible asset amortization (2) 0.30 0.24 1.10 0.94

Impact on depreciation related to acquired RSC fleet and property and

equipment (3) (0.01 ) (0.01 ) (0.03 ) (0.04 )

Impact of the fair value mark-up of acquired RSC fleet (4) 0.05 0.06 0.21 0.25

Impact on interest expense related to fair value adjustment of acquired

RSC indebtedness (5) (0.01 ) (0.01 ) (0.03 ) (0.04 )

Restructuring charge (6) — — (0.01 ) 0.07

Asset impairment charge (7) — — — 0.02

Loss on repurchase/redemption of debt securities and retirement of

subordinated convertible debentures —

—

0.46

0.02

Earnings per share - adjusted $ 2.19 $ 1.59 $ 6.91 $ 4.91

67

EBITDA and Adjusted EBITDA GAAP

Reconciliation

A) Our EBITDA margin was 47.4% and 46.9% for the three months ended December 31, 2014 and 2013, respectively, and 45.7% and 44.0% for the year ended December 31, 2014 and 2013, respectively. B) Our adjusted EBITDA margin was 49.6% and 48.7% for the three months ended December 31, 2014 and 2013, respectively, and 47.8% and 46.3% for the year ended December 31, 2014 and 2013, respectively.

(1) Reflects transaction costs associated with the April 2012 RSC acquisition and the April 2014

National Pump acquisition.

(2) Primarily reflects severance costs and branch closure charges associated with the RSC acquisition.

(3) Represents non-cash, share-based payments associated with the granting of equity instruments.

(4) Reflects additional costs recorded in cost of rental equipment sales associated with the fair value

mark-up of rental equipment acquired in the RSC acquisition and subsequently sold.

(5) Reflects a gain/loss recognized upon the sale of a former subsidiary that developed and marketed

software.

EBITDA represents the sum of net income, provision for income taxes, interest expense, net, interest expense-subordinated convertible debentures, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the merger related costs, restructuring charge, stock compensation expense, net, the impact of the fair value mark-up of acquired RSC fleet and the gain/loss on sale of the software subsidiary. These items are excluded from adjusted EBITDA internally when evaluating our operating performance and allow investors to make a more meaningful comparison between our core business operating results over different periods of time, as well as with those of other similar companies. Management believes that EBITDA and adjusted EBITDA, when viewed with the Company’s results under GAAP and the accompanying reconciliation, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of our core business without regard to potential distortions. Additionally, management believes that EBITDA and adjusted EBITDA help investors tgain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. However, EBITDA and adjusted EBITDA are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income or cash flow from operating activities as indicators of operating performance or liquidity. The table below provides a reconciliation between net income and EBITDA and adjusted EBITDA.



2014 2013 2014 2013

Net income $ 194 $ 140 $ 540 $ 387

Provision for income taxes 117 86 310 218

Interest expense, net 119 118 555 475

Interest expense – subordinated convertible debentures — — — 3

Depreciation of rental equipment 239 223 921 852

Non-rental depreciation and amortization 73 61 273 246

EBITDA (A) $ 742 $ 628 $ 2,599 $ 2,181

Merger related costs (1) (2 ) 1 11 9

Restructuring charge (2) 1 — (1 ) 12

Stock compensation expense, net (3) 26 12 74 46

Impact of the fair value mark-up of acquired RSC fleet (4) 8 10 35 44

(Gain) loss on sale of software subsidiary (5) — — — 1

Adjusted EBITDA (B) $ 775 $ 651 $ 2,718 $ 2,293

68

Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Adjusted EBITDA

(1) Reflects transaction costs associated with the April 2012 RSC acquisition and the April 2014 National Pump acquisition.

(2) Primarily reflects severance costs and branch closure charges associated with the RSC acquisition.

(3) Represents non-cash, share-based payments associated with the granting of equity instruments.

(4) Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in

the RSC acquisition and subsequently sold.

(5) Reflects a gain/loss recognized upon the sale of a former subsidiary that developed and marketed software.



2014 2013 2014 2013

Net cash provided by operating activities $ 335 $ 436 $ 1,801 $ 1,551

Adjustments for items included in net cash provided by operating

activities but excluded from the calculation of EBITDA:

Amortization of deferred financing costs and original issue discounts (3 ) (5 ) (17 ) (21 )

Gain on sales of rental equipment 68 52 229 176

Gain on sales of non-rental equipment 4 3 11 6

Gain (loss) on sale of software subsidiary (5) — — — (1 )

Merger related costs (1) 2 (1 ) (11 ) (9 )

Restructuring charge (2) (1 ) — 1 (12 )

Stock compensation expense, net (3) (26 ) (12 ) (74 ) (46 )

Loss on extinguishment of debt securities — — (80 ) (1 )

Loss on retirement of subordinated convertible debentures — — — (2 )

Changes in assets and liabilities 181 12 182 31

Cash paid for interest, including subordinated convertible debentures 142 139 457 461

Cash paid for income taxes, net 40 4 100 48

EBITDA $ 742 $ 628 $ 2,599 $ 2,181

Add back:

Merger related costs (1) (2 ) 1 11 9

Restructuring charge (2) 1 — (1 ) 12

Stock compensation expense, net (3) 26 12 74 46

Impact of the fair value mark-up of acquired RSC fleet (4) 8 10 35 44

(Gain) loss on sale of software subsidiary (5) — — — 1

Adjusted EBITDA $ 775 $ 651 $ 2,718 $ 2,293

69

Free Cash Flow GAAP Reconciliation

We define free cash flow as (i) net cash provided by operating activities less (ii) purchases of rental and non-rental equipment plus (iii)

proceeds from sales of rental and non-rental equipment. Management believes that free cash flow provides useful additional information

concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow is not a

measure of financial performance or liquidity under GAAP. Accordingly, free cash flow should not be considered an alternative to net

income or cash flow from operating activities as an indicator of operating performance or liquidity. The table below provides a

reconciliation between net cash provided by operating activities and free cash flow.



2014 2013 2014 2013

Net cash provided by operating activities $ 335 $ 436 $ 1,801 $ 1,551

Purchases of rental equipment (217 ) (81 ) (1,701 ) (1,580 )

Purchases of non-rental equipment (36 ) (33 ) (120 ) (104 )

Proceeds from sales of rental equipment 156 134 544 490

Proceeds from sales of non-rental equipment 7 11 33 26

Free cash flow $ 245 $ 467 $ 557 $ 383

70

In September 2011, the American Rental Association (ARA) released Rental Market Metrics whitepaper

– Standardization of metrics provides consistent way for calculating and reporting critical performance metrics

– Publication provides definitions and calculations for original equipment cost (OEC), time (physical) utilization, financial (dollar) utilization, fleet age and period-over-period rental rate changes

– URI adopted new ARA standards beginning with the release of our first quarter 2012 results Standard set of metrics is a sign of growth and maturity of industry

Key differences between old URI (“old basis”) methodology and ARA (“new basis”) methodology are as follows:

– OEC – New basis calculation is based on GAAP gross book value. In old basis calculation, OEC is not reduced by volume rebates. In new basis calculation (consistent with GAAP), OEC is reduced by value of volume rebates. For acquisitions, OEC is not reset; OEC values are carried-over from acquired company

– Time utilization – In old basis calculation, OEC excluded serialized assets less than $SK. In new basis calculation, these assets are included. Calculation also changes for new definition of OEC

– Fleet Age – Moving from unit-weighted measure of fleet age (old basis) to DEC-weighted measure (new basis)

– Rental Rate – In new basis calculation, period-over-period rental rate changes are weighted by prior period revenue mix, as opposed to current period revenue mix (old basis). In new basis calculation, impact of currency is excluded from rental rate change calculation

ARA Metrics

71

Corporate Governance

Amended Company charter to eliminate Board classes

Roles of Chairman and CEO are separated and the Chairman is an independent director

12 of 13 directors are independent

Board and each committee have express authority to retain outside advisors

Board and each committee perform an annual self-assessment

All directors attended at least 75% of the meetings of the Board and committees of which they were a member during the past year

Board has adopted stock ownership guidelines for officers and directors

Each of the Compensation, Audit and Nominating & Corporate Governance Committees is comprised solely of independent directors

Board elected not to renew or extend the stockholder rights plan

Four members of the Audit Committee are financial experts

Focus on Best Practices

72

Convertible Senior Notes

In 2014, 6.4M shares were included in the diluted share count

Assumed Stock Price Net Shares Issued Upon Conversion Potential Accounting EPS Dilution

$11.11 or below None None $15.56 None 26K shares $50.00 62K shares 70K shares $100.00 76K shares 80K shares $150.00 81K shares 83K shares

How the Convertible Works

In November 2009, URI issued $172.5M of convertible senior notes due 2015. Notes carry a 4.0% coupon and are convertible at an initial conversion price of $11.11 per share – Net share settlement election means par amount paid in cash, in-the-money portion settled in stock or cash – The outstanding balance of the 4.00% notes at December 31, 2014 was $34M

The company separately entered into hedge transactions which significantly reduce potential dilution associated with the convertible senior notes – Hedge transactions effectively increase conversion price to $15.56 per share, subject to change in certain

circumstances

Hypothetical conversion of $1M:

73

Mechanics of Convert and Hedge

Assumed Stock Price

Hedge Counterparties

United Rentals

Net 0 New Shares Issued

Investors


United Rentals

Net 71K New Shares Issued

Investors


United Rentals

Net 81K New Shares Issued

Investors

$10

$75

$150

0 Shares

5K Shares

3K Shares

0 Shares

77K Shares

83K Shares

Share Delivery at Conversion of $1M

74

1. Capex: Capital expenditures represent the amount reported in our statements of cash flows for the purchase of rental and non-rental equipment.

2. Dollar Utilization: Annualized rental revenue, excluding re-rent and ancillary revenue, divided by the average original equipment cost. (ARA methodology)

3. EBITDA: Is a measure of operating performance and is calculated as the sum of net income (loss), income (loss) from discontinued operation, net of taxes, provision (benefit) for income taxes, interest expense, net, interest expense-subordinated convertible debentures, net, depreciation of rental equipment and non-rental depreciation and amortization.

4. Free Cash (Usage) Flow: Free cash (usage) flow is a measure of cash flow available to satisfy debt obligations and working capital requirements, and is calculated as net cash provided by operating activities, less purchases of rental and non-rental equipment plus proceeds from sales of rental and nonrental equipment and excess tax benefits from share-based payment arrangements, net.

Glossary of Terms

75

5. Fleet Age: The OEC weighted age of the entire fleet, excluding the benefit of refurbishments.

6. OEC: Original Equipment Cost; the cost of an asset at the time it was originally purchased.

7. Rental Rate: The percentage change in the rate/price that is charged for equipment on rent. Overall company rental rates change based on a combination of pricing, fleet composition and term of rental. This metric is used to evaluate rate changes both year-over-year and sequentially (typically quarter-over-quarter). Rental rate changes are calculated based on the year-over-year or sequential variance in average contract rates, weighted by the prior period revenue mix.

8. Time Utilization: Amount of time an asset is on rent divided by the amount of time the asset has been owned. Also known as physical utilization.

Glossary of Terms