RER Roundtable

7/29/2019 RER Roundtable

1/28

WELCOME

Industry Roundtable


2/28

Introductions

Michael KneelandPresident and CEO

United Rentals

Mike WattsFounder

Sunstate Equipment

Brendan HorganChief Executive Officer

Sunbelt Rentals

Andy StuddertChairman of the Board, President and

Chief Executive Officer

NES Rentals


3/28

Question & Answer Session

Michael KneelandPresident and CEO

United Rentals

Mike WattsFounder

Sunstate Equipment

Brendan HorganChief Executive Officer

Sunbelt Rentals

Andy StuddertChairman of the Board, President and

Chief Executive Officer

NES Rentals


4/28

Michael Kneeland

President and CEOUnited Rentals

EXECUTIVE ROUNDTABLE PANELIST


5/28

Industry analysts believe performance of rental industry has benefitted from customers choosing rental over

ownership. They cite the solid performance of rental companies in the past year or so, even though primary

end markets are still soft. Customers are also telling us that they have increased rental during current

economic environment.

Rental often better use of capital over ownership Tight credit markets favor rental Improved customer service seals the deal


6/28

Brendan Horgan

Chief Executive OfficerSunbelt Rentals



7/28

StructuralChangeOwnershiptoRental

Drivers

Lifecyclecostassociatedwithequipmentownership

Availability/OEMCapacity

Rentalindustryfarmorereliablethannottoodistantpast

Evidence

Endmarketsfarfrompeak

Approachingorsurpassingpeakvolumes

UFlizaFonremainshighasindustryfleetsizegrows

Balanceopportunityvs.macrorisk


8/28

Mike Watts

FounderSunstate Equipment



9/28

Secular Shift From Buying to Rental

Economic Challenges to Ownership Tighter Lending Standards Banks Bonding Requirements Liquidity

Incremental Ownership Costs Warehousing

Staffing

Viable Options To Ownership

Rental Cos Must Have Available Fleet

Transactional Ease must be solid / efficient

Example Case Study: Sundt Construction, Phoenix, AZ CEO Doug Pruitt, Also AGC President

Turnaround bookLevel Headed


10/28

Andy StuddertChairman of the Board,

President and CEO

NES Rentals



11/28


12/28

Michael Kneeland




13/28

To avoid obsolescence, businesses must always seek to enhance the customer experience.

Bare minimum on time delivery, speedy breakdown response time, on-time pick up and correctinvoicing.

In time help customers better manage their overall equipment needs with a goal of increasedefficiency and lower costs. Become a critical player that deserves a seat at the table.


14/28

Brendan Horgan




15/28

DrivingPerformance

Safetyasacornerstone

Availabilityandfitfortheproject

EaseofrentaltransacFon

Technologyadvancementsatallpointsoftherentalcycle

Singlepointofcontact

TransparencyofinformaFon


16/28

Mike Watts




17/28

Greater Use of Technology Transactional Ease

Reservations

Bill Pay

Off Rent

Communications via Text Geotracking

Pay By Hour Usage

Training Operational

Safety

Customer-Owned Fleet Safety Inspections

Servicing

Future Services Customers May Expect


18/28


President and CEO

NES Rentals



19/28


20/28

Michael Kneeland




21/28

Operation Unitedcreated the operational framework for transforming the company. Listen to customers, hear

what matters most to them and then develop initiatives that answer their needs. To make sure youre making

progress, measure and compensate against goals.

Safety Right thing to do for employees and customers Single point of contactMake it easier for larger customers to do business with United

Rentals FASTImprove logistics by responding to the changing environment in real time


22/28

Brendan Horgan




23/28

SpecialtyBusinesses

TechnicalexperFseandsophisFcaFon

Heightenedpartnershipswithcustomers

Cross-sellingopportuniFes

SupportstheshiNthroughaddiFonalrentalopFons


24/28

Mike Watts




25/28

Lack of Awareness of Goals for Turnaround Time in Shop Nuts Story of SW Airlines

Turnaround Time Fewer $$ Assets

Communicate message Smarter, not Harder

New Business Model Efficiencies Continual Improvement to Drive Costs Down

The Plane is Leaving


26/28


President and CEONES Rentals



27/28


28/28

Thank you for attending!

Industry Roundtable

Documents

RER Roundtable