United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Operational ExcellenceHelge Jacobsen – Vice President, Operational Excellence

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Introduction

Helge JacobsenVice President, Operational Excellence

• Joined the company as VP of Internal Audit in in 2012 • Prior to joining, Helge accumulated 16 years of experience in

global sales and manufacturing operations in Avaya, Cerberus and GE

• Leading 30 person team focused on:• Operational Excellence – LEAN Transformation• Telematics and innovative technologies• Applying supply-chain analytics

2

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Transformation On Track

LEAN transformation roadmap

Engage –initial pilots

Build conviction through impact

Scale-up through line

managementReinforce and

accelerate

2014 Today

3

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Updated run-rate chart

Delivering on promises…

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

14' Q2 14' Q3 14' Q4 15' Q1 15' Q2 15' Q3 15' Q4 16' Q1 16' Q2 16' Q3 16' Q4

Annualized EBITDA impact ($MM yearly run-rate)

End-market weakness

Hard costactions

4

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

…but large variance between locations

5

Next phase: Consistent adoption across network:• Leverage best practice roll-

out kits and training• Continue to embed

execution in operating management structure

• Developing “connected operations” - mobile technology to enable and reinforce best practices

LEA

N B

enef

its re

lativ

e to

reve

nue

Locations rankedHigh Low

High performing

metros

Opportunity

Project XL focus to drive consistent adoption

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Each implementation multiplied by 890 branches

Dispatches3,290,330

Rental invoices

4,559,447

Active charge accounts

182,496

6

Gen Rent

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Ops excellence embedded in operating structure

Field resources• Dedicated Regional Ops

Excellence Directors

• 100% District Managers trained and incentivized

• Results owned through normal operational cadence (monthly/quarterly operating reviews)

• 4,000 employees formally trained

Corporate resources• Developed training relationship

with Georgia Tech

• Oversees the development and validation of best practices

• Conduit to other corporate departments and ensures alignment

• Develop toolkits • Best Practice Roll-Out (B-PRO)• Process Improvement

Team (PIT)

Customervalue

Discovery

ValidateResults

Roll out Developtoolkit

7

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Project XL: Roll out “connected operations”

Order Source and optimization Stage Delivery

Pickup Inspection and repair

Standardbest practice

FASTUR Max –Intuitive Order Taking

Stager App for the Yard Associate

Driver Handheld

Return App for the Yard Associate

Ready Inspection App for the Service Tech

Telematics data

Standard process + analytics + integrated systems = XL Benefits

8

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Metro 2.0: Inter-connected operationsSimulated fleet consolidation shows stocking models must

account for cat class and geographyCat-Class A Cat-Class B

Before After

Tim

e Ut

Ben

efit

Before After

+14% +18%

Fina

ncia

l Ben

efit

PoolingBenefit

Add’lCost

NetBenefit

PoolingBenefit

Add’lCost

NetBenefit

Net Benefit, Consolidate Net Cost, Distribute

Next iteration of Metro model guided by analytics

9

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2016 United Rentals, Inc. All rights reserved.

Summary

10

• Operationalized ops excellence – $100MM on track

• Consistent adoption with “connected operations” will continue to deliver results

• Next frontier: Inter-connected operations leveraging analytics