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Longbow Research
9th Annual Industrial Manufacturing &
Technology Conference
New York City – August 30, 2016
Safe Harbor Statements
Basis of Presentation
The financial information included in this presentation is based upon the condensed consolidated and combined financial statements of the
Company which are presented on a basis of accounting that reflects a change in reporting entity and have been adjusted for the effects of the
spin-off from The Hertz Corporation. These financial statements and financial information represent only those operations, assets, liabilities
and equity that form Herc Holdings on a stand-alone basis. Since the spin-off occurred on June 30, 2016, the financial statements represent
the carve-out financial results for the Company for the first six months of 2016 and include all spin-off impacts through June 30, 2016. All
prior period amounts represent carve-out financial results.
Forward-Looking Statements
This presentation contains statements that are not statements of historical fact, but instead are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on these statements, which
speak only as of the date hereof. There are a number of risks, uncertainties and other important factors that could cause our actual results to
differ materially from those suggested by our forward-looking statements, including those set forth in the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2106 (the Form 10-Q), including:
• Risks related to the spin-off and our separation from Hertz Car Rental Holdings Company, Inc. (“New Hertz”), such as: we have no
operating history as a stand-alone public company, and our historical and pro forma financial information is not necessarily
representative of the results that we would have achieved as a separate, publicly traded company and may not be a reliable indicator of
our future results, given the incremental costs are incurring; the loss of the Hertz brand and reputation; the decrease in purchasing
power we may experience and the liabilities we have assumed in connection with the spin-off; we may not achieve some or all of the
expected benefits of the spin-off and our assets and resources may not be sufficient for us to operate as a stand-alone company; if
there is a determination that any portion of the spin-off transaction is taxable for U.S. federal income tax purposes then we and our
stockholders could incur significant tax liabilities, and we could also incur indemnification liability if we are determined to have caused
the spin-off to become taxable; our ability to engage in financings, acquisitions and other strategic transactions using equity securities is
limited due to the tax treatment of the spin-off; the spin-off may be challenged by creditors as a fraudulent transfer or conveyance; and if
the spin-off is not a legal dividend, it could be held invalid by a court and have a material adverse effect on our business, financial
condition and results;
• Risks related to the restatement of financial statements previously issued by Hertz Global Holdings, Inc. (in its form prior to the spin-off,
“Hertz Holdings”), including that the restatement could expose us to additional risks that could materially adversely affect our financial
position, results of operations and cash flows; we have identified material weaknesses in our internal control over financial reporting that
may adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner, which may
adversely affect investor confidence in us and, as a result, the value of our common stock; and the restatement of Hertz Holdings’
previously issued financial results has resulted in government investigations, books and records demands, and private litigation and
could result in government enforcement actions and private litigation that could have a material adverse impact on our results of
operations, financial condition, liquidity and cash flows;
2NYSE: HRI
Safe Harbor Statements - Continued
• Risks related to the securities market and ownership of our stock, including that an active trading market for our common stock may not be
sustained and the market price of our common stock may fluctuate significantly; our accounting and other management systems and
resources may not be adequately prepared to meet the ongoing financial reporting and other requirements; and the market price of our
common stock could decline as a result of the sale or distribution of a large number of shares of our common stock or the perception that a
sale or distribution could occur;
• Business risks could have a material adverse effect on our business, results of operations, financial condition and/or liquidity, including the
cyclicality of our business, a slowdown in economic conditions or adverse changes in the economic factors specific to the industries in
which we operate, such as recent declines in oil prices further negatively impacting the upstream oil and gas industry and extending to
other markets we service; intense competition in the industry, including from our own suppliers; any decline in our relations with our key
national account or industrial account customers or the amount of equipment they rent from us; any occurrence that disrupts rental activity
during our peak periods (given the seasonality of the business, especially in the construction industry); any inability to accurately estimate
future levels of rental activity and adjust the size and mix of our fleet accordingly; any inability to purchase adequate supplies of
competitively priced equipment or to collect on contracts with customers; our equipment rental fleet is subject to residual value risk upon
disposition and may not sell at the prices we expect; we may not be successful implementing our strategy of further reducing operating
costs and our cost reduction initiatives may have adverse consequences; an impairment of our goodwill or our indefinite lived intangible
assets could have a material non-cash adverse impact; doing business in foreign countries exposes us to additional risks; we may be
unable to protect our trade secrets and other intellectual property rights; we may fail to respond adequately to changes in technology and
customer demands; our business is heavily reliant upon communications networks and centralized information technology systems and the
concentration of our systems creates risks for us; failure to maintain, upgrade and consolidate our information technology networks could
adversely affect us; the misuse or theft of information we possess, including as a result of cyber security breaches, could harm our brand,
reputation or competitive position; our success as an independent company will depend on our new senior management team, the ability of
other new employees to learn their new roles, our ability to retain key members of our senior management team and other key personnel
and to attract key personnel; we may face issues with our union employees; strategic transactions could be difficult to identify and
implement; some or all of our deferred tax assets could expire if we experience an “ownership change” as defined in the Internal Revenue
Code; we may experience fluctuations in our tax obligations and effective tax rate; changes to accounting rules or regulations may
adversely affect our financial position and results of operations; we are exposed to a variety of claims and losses arising from our
operations, and our insurance may not cover all or any portion of such claims; environmental, health and safety laws and regulations could
materially adversely affect us; and decreases in government spending may have an adverse effect on us;
• Risks related to our substantial indebtedness, such as: our substantial level of indebtedness could materially adversely affect our financial
condition and ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry or
materially adversely affect our results, liquidity and ability to compete; and the secured nature of our indebtedness, which is secured by
substantially all of our consolidated assets, could materially adversely affect our business and holders of our debt and equity; and
• Other risks and uncertainties set forth in the Form 10-Q under “Risk Factors.”
• All forward-looking statements are expressly qualified in their entirely by such cautionary statements. We do not undertake any obligation
to release publicly any update or revision to any of the forward-looking statements.
3NYSE: HRI
Reconciliation to GAAP
In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has
provided certain information in this release which is not calculated according to GAAP (“non-GAAP”), such as Adjusted EBITDA and certain
revenue results excluding certain items. Management uses these non-GAAP measures to evaluate the operational performance of the
Company, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These
measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our
industry.
Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and,
as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information
about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP
financial measures, please see the Appendix to this presentation.
Herc Holdings does not provide forward-looking guidance for certain financial measures on a GAAP basis or a reconciliation of forward-
looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures on a forward-looking basis
because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. Certain items that impact net
income (loss) cannot be predicted with reasonable certainty, such as restructuring and restructuring related charges, special tax items,
borrowing levels (which affect interest expense), gains and losses from asset sales, the ultimate outcome of pending litigation and spin-
related costs.
4NYSE: HRI
We aspire to be the
supplier, employer and
investment of choice in
our industry.
Spin Accomplished
• Herc Rentals separated from Hertz’s rental car
business on June 30, 2016 in a tax-free
transaction and began trading on the NYSE on
July 1, 2016
• As part of the transaction, Herc Rentals issued
$1.235 billion in Senior Secured Second Priority
Notes
• Herc Rentals entered into a $1.75 billion ABL
Revolving Credit Facility
5
NYSE:
HRI
NYSE: HRI
Unique Opportunity to Build Value
Attractive long term industry fundamentals
Significant opportunity for operational and financial improvement
Commitment to disciplined capital management
Strong asset base including $3.5 billion of OEC
Strategically positioned to generate above market growth
Strong brand recognition and reputation – 50+ years
Industry savvy and experienced leadership team
6NYSE: HRI
Reinvigorated Organization With a Customer-Centric Culture and
Increased Focus on Operating Efficiency and Safety
Our
Vision
To ensure that end users
of our equipment and
services achieve optimal
performance safely,
efficiently and effectively.
Our
Mission
Our
Values
We do what’s right.
We’re in this together.
We take responsibility.
We achieve results.
We prove ourselves every day.
We aspire to be the
supplier, employer and
investment of choice in
our industry.
7NYSE: HRI
Carlo Cavecchi Paul Dickard Elizabeth Higashi Charles Miller Nancy Merola Jason Oosterbeek
VP, ProSolutions VP, Communications VP, Investor Relations VP, Operations VP, Chief
Accounting Officer
VP, Pricing &
Sales Strategy
30+ years 25 years 30+ years 30+ years 30+ years 15+ years
Highly Experienced Leadership Team
Industry savvy and experienced leadership team
EXECUTIVE LEADERSHIP
CEO, COO & CIO Have More Than 30 Years of Equipment Industry Experience
Senior Staff Average Over 26 Years of Equipment and Related Industry Experience
Larry Silber
CEO
35+ years
Bruce Dressel
COO
30+ years
Chris Cunningham
CHRO
30+ years
Richard Marani
CIO
30+ years
Maryann Waryjas
CLO
30+ years
Barbara Brasier
CFO
30+ years
Regional Vice Presidents - Average of 24 Years of Industry Experience
8NYSE: HRI
One of the leading North American
equipment rental companies
Approximately 280 locations globally
4% market share in a highly
fragmented market
$1.6 billion in total revenue 1 (2015)
$3.5 billion in fleet (OEC)
~ 4,600+ employees
Local Customer
52%
National Account
48%
Company Overview
Company Snapshot N.A. Market Share 2 Rental Revenue by Market 3
Business Mix by Rental Revenue 4 N.A. Customer Mix 5 Fleet Mix by OEC 6
1 FY 2015 excluding operations in France and Spain sold in October 2015.
2 Company estimates on North America (N.A.) market based on data from American Rental Association (ARA), IHS Global Insight, Rental Equipment Register (RER), Jefferies and competitors’ public filings and
presentations. 3 Upstream oil & gas and key markets (non-upstream oil & gas branch markets) for the three months ended June 30, 2016. 4 Q2-16 rental revenue. 5 Q2-16 N.A. rental revenue.
6 Average fleet original equipment cost (OEC) at June 30, 2016.
13%
7%
4%
9%
67%
Construction
38%
Other Customers
41%
Industrial
21%
2015 Market Size: ~$47 billion
Top 4-10
Rest of
Market
United
Rentals
Sunbelt Rentals Upstream
Oil & Gas
Branch
Markets
16%
Key Markets
84%
ProSolutions and
ProContractor
Tools
16%
Core
84%
Herc Rentals is a diversified equipment rental company with a balanced business profile
9NYSE: HRI
Market Leader with Significant Scale and Broad
Footprint in North America
Strong presence in growing regions
1 IHS Global Insight (July 2016)
Locations are as of June 30, 2016. International operations are located in the United Kingdom, China, Saudi Arabia and Qatar.
>6%
4-6%
2-4%
0-2%
<0%
Industry Rental
Growth 1
4-Year CAGR
Herc Rentals Location
CONFIDENTIAL 10
Large, Diversified Rental Fleet
$3.5 billion total fleet efficiently deployed with focus on utilization, margins and returns
Note: Dollars in millions.
1 Average fleet original equipment cost (OEC) as of December 31, 2015.
2 45% of equipment over seven years old has been refurbished or re-manufactured. OEC of serialized fleet totals $3.3 billion as of December 31, 2015. Total OEC fleet is $3.5 billion as of June 30, 2016.
3 N.A. data as of December 31, 2015, June 30, 2015 and June 30, 2016.
Diversified Fleet Mix1 Significant Recent Investment2
Increased Focus on ProSolutionsTM and ProContractor ToolsTM Results in Higher Returns3
Equipment Age (Years)
$454
$3.3B
$440
$581
$653
$439
$182 $36
$129
$192
$192
0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 >9 Total
FY 2015 Q2’15 Q2’16 Target
Type % of OEC $ Ute. % of OEC % of OEC
% Mix
Change
% of OEC
Core 85% 34% 85% 84% (1%) 70% – 75%
ProSolutionsTM 13% 45% 12% 13% +1%
25% – 30%
ProContractor ToolsTM 2% 62% 3% 3% --
$ in millions
Aerial
27%
Earthmoving
19%
Material Handling
17%
Truck
11%
Electrical
9%
Other
17%
11NYSE: HRI
Quick Actions Result in Accelerating Profitability
Rapid action to strengthen organization, fleet, and sales effectiveness accelerated quarterly growth
Focused on premium
brands
Reduced supplier count
by 40%
Created ProContractor
Tools program
Expanded ProSolutions
business
Fleet Optimization
Increased focus on local
accounts and regional
density
Opened four new
greenfield locations
Implemented operating
model to reduce FUR
Focused on new ancillary
revenue opportunities
Revenue Growth and
Operational Efficiencies
Expanded sales force and
optimized sales territories
Salesforce.com
implemented
Aligned compensation to
drive behaviors
Implemented Optimus
pricing system
Sales EffectivenessOrganizational Redesign
Aligned sales, fleet and
operations
Established independent
ProSolutions group
Hired industry savvy
leadership team
12NYSE: HRI
(20%)
(10%)
0%
10%
20%
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16
Upstream Oil & Gas Locations
Key Markets (Non-Upstream Oil & Gas Locations)
Upstream
Oil & Gas
Branch
Markets
16%
Key
Markets
84%
Addressing Weakness in Oil & Gas Markets
Quick actions taken to reduce fleet and control costs in upstream oil & gas branch markets
Rental Revenue Mix2
YoY % Change Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16
Key Markets (Excluding
Upstream Oil & Gas
Branch Markets)
+12% +13% +13% +11% +12% +8%
Upstream Oil & Gas
Branch Markets
(12%) (24%) (26%) (32%) (33%) (27%)
Total 3% 0% 1% (1)% (1)% 0%
(YoY% Change in OEC by Quarter)
Oil & Gas as a % of Rental Revenue1
Fleet Evolution
Rental Revenue Trends2
1 For the three months ended June 30, 2016.
2 Rental revenues exclude the impact of foreign currency translation and operations in France and Spain sold in October 2015.
$ in millions
$315
$330
$356 $353
$312
$330
Q1'15 Q2 '15 Q3'15 Q4 '15 Q1'16 Q2 '16
Upstream Oil & Gas Key Markets
13NYSE: HRI
Equipment Rental Industry
CONFIDENTIAL 14
Strong Secular Equipment Rental Industry Growth Provides Unique
Opportunity
Strong market growth and further
penetration of rental solutions expected to continue
1 IHS Global Insight, excludes Party & Event data.
2 Source: As reported by RER 100: Top Rental Equipment Companies of 2015 ranked by revenue.
3 Source: ARA.
4 Rental Penetration is defined as the percent of first cost equipment sold direct to rental companies vs other end users.
41%
48%
53%
2003 2008 2015
($ in billions)
as of July 2016• Market dynamics favor growing trend of customers renting vs.
owning equipment
- Frees up capital
- Provides flexibility to adjust operations and cost base
- Allows third party to fulfill fleet lifecycle management
function
- Outsource repair and maintenance of fleet
• Herc benefits from a fragmented market and the advantage of
scale
North American Equipment Rental Market 1
North American Rental Penetration 3, 4
$4,949
$2,790
$1,411
$639 $559 $550 $450 $443 $442 $440
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Top 10 Equipment Rental Companies 2
Key Takeaways
($ in millions)
As of May 2016
$36
$38 $38
$31 $32
$35
$38
$41
$44
$47 $49
$52
$54
$57
06 07 08 09 10 11 12 13 14 15 16E 17E 18E 19E
As of February 2016
15NYSE: HRI
Construction and Industrial Outlook
Construction and industrial markets expected to grow
Non-Residential Starts 1 Construction Put in Place 2 Architecture Billings Index 3
Construction Employment 4 Industrial Spending 5
$302.6 $308.0
2015 2016E
J
a
n
-9
6
J
a
n
-0
0
J
a
n
-0
4
J
a
n
-0
8
J
a
n
-1
2
J
a
n
-1
6
Reading above 50 implies
expansion
$214 $218
$237
$262
2015 2016E 2017E 2018E
6.2%
7.9% 7.6%
1.5%
Total
Construction
Private Non-
Residential
Residential Public
Construction
J
a
n
-1
4
Ma
r-
1
4
Ma
y
-1
4
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6
Ma
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6
Ma
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-1
6
J
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1
6
June 2016 YTD
1 Dodge Analytics.
2 U.S consensus, not seasonally adjusted.
3 The American Institute of Architects (AIA), as released on August 17, 2016.
($ in billions)
4 Bureau of Labor Statistics, all construction employment.
5 Industrial information resources.
July
51.5
5,999
6,652
as of July 2016
as of August 2016
($ in thousands)
as of August 2016
($ in millions)• IHS outlook for 2016 equipment
rental market declines to $49 billion
from $50 billion projection1
• The projected CAGR through 2019
dropped to 4.9% from 5.3%1
• 2016 Non-Residential Starts slowing
– but still positive
• The ABI Index remains above 50 at
51.5 as of July 2016
• Rental penetration versus purchase
trends continue to grow
Construction and Industrial Outlook
16NYSE: HRI
Rental Rate Environment
Herc Rentals outperforms peers in 2016 pricing to date Key Drivers for Herc Rentals Pricing and Yield Opportunity
* Year-over-year for the comparable period, excluding operations in France and Spain.
Favorable customer and fleet mix shift will drive higher returns with existing & new clients
Increased Local
Penetration
Significant Price
Premium
Fleet Diversification
Increased
ProContractor Tools
& ProSolutions
Enhanced Price
Guidance Tools
Enhanced Customer
Portfolio
Management
Broader Customer
Base
Compensation
Aligned With Fleet
Returns To Drive
Behavior
Worldwide Key Markets
Q1’16 Flat + 1.2%
Q2’16 +0.5% + 1.7%
Year-Over-Year Pricing *
17NYSE: HRI
Long-Tenured National Account Portfolio Provides Stable
Base of Business
National Accounts by Tenure (Years)
Over 1,800 National Accounts
• Dedicated national account managers
• Stable revenue base
• Longer transactions
78% of National Accounts revenue
are from accounts open 20+ years
3% 3%
5%
11%
78%
0-5
5-10
10-15
15-20
20+
National accounts provide a firm foundation upon which to build
2015 Sales by Account Type 2015
Local
50%
National Accounts
50%
Herc Rentals Path Forward
CONFIDENTIAL 18
The Path Forward
o Broaden customer base
o Expand products and
services
o Increase density in large
urban markets
o Grow branch revenues
through price
management and
ancillary services
Improve Operating
Efficiencies
Enhance Customer
Experience
Expand and
Diversify Revenues
o Improve vendor
management and fleet
availability
o Drive operating
performance through
higher margin mix and
volume
o Focus on safety, labor
productivity and
reduction of warranty
and labor costs
o Provide premium
products and services
o Introduce innovative
technology solutions
• Enable mobility
• Enhance fleet
monitoring
19NYSE: HRI
Salesforce.com rollout
Utilize price guidance tool
Increase “Boots on the ground” Focus on ProSolutions and ProContractor Tools
Align sales initiatives with fleet strategy
Focus on higher return customer mix
Target new account generation
Further penetrate local customer base
Optimize territories
Align compensation with initiatives
Broaden North America Customer Base
Sales Force Effectiveness Attract New Customers
National accounts provide strong and stable base. Strategic sales initiatives are already delivering
improved revenue, margins and utilization
Local
52%
Target Revenue Profile
Local
50%
2015 1 Target
1 FY 2015 rental revenue.
National
50%
National
40%
Over 1,800 national accounts
Local
60%
National
48%
Q2’16
20NYSE: HRI
Q2 2015 Q1 2016
Improve North America Vendor Management and Fleet Availability
Driving operational gains through buying efficiency and increased availability
Consolidate Brands and OEMs Substantially Increased Fleet Available to Rent
40%
# of Suppliers
Lower vendor count = better leverage
Simplification = lower operating expenses
Lower FUR = lower capex and higher ROIC
1 point of FUR reduction = $35M Fleet available
Fleet Unavailable for Rent (FUR)
~
18.6% 18.1%
14.7%
13.3% 12.6%
10.0%
2013 2014 2015 Q1'16 Q2'16 Target
21NYSE: HRI
Average Fleet Unavailable for Rent
ProSolutions and
ProContractor
Tools
~25-30%
Core
~70-75%
Expand Products and Services to Drive Higher Revenue and Margin
20151
ProSolutions and
ProContractor
Tools
15%
Core
85%
Target
Focused on expanding ProSolutions and ProContractor Tools in N.A.
1 N.A. OEC fleet data as of December 31, 2015.
2 N.A. OEC fleet data as of June 30, 2016.
3 Industry data and estimates for rates and time utilization
OEC $136,000
Monthly Rate $4,200
Time Utilization 75.0%
Estimated Annual
Revenue
$37,800
Estimated $ Ute 28%
OEC $10,500
Monthly Rate $1,600
Time Utilization 60.0%
Estimated Annual
Revenue
$11,520
Estimated $ Ute 110%
One Wheel Loader = $136,000 13 Floor Scrubbers = $136,500
Estimated Annual Revenue
= $37,800
Estimated Annual Revenue
= $149,760
Comparative Estimated Revenue and $ Utilization3
ProSolutions and
ProContractor
Tools
16%
Core
84%
Q2 2016 2
22NYSE: HRI
Market Size
HERC
Share
HERC
Locations
Southern
California
$2.2 bn 3% 9
Atlanta $815 mm 4% 8
MI
FL
DE
MD
KY
ME
NY
PA
VT
NH
MA
RI
CT
VA
WV
OH
IN
IL
NCTN
SC
AL
MS
WI
NJ
GA
NM
TX
OK
KS
NE
SD
NDMT
WY
CO
UT
ID
AZ
NV
WA
CA
OR
AR
LA
MO
IA
MN
DE
NJ
MA
BC
AB
SK
MB
ON QC
Increase Density in Large Urban Markets
Flood the zone strategy in attractive markets is expected to increase revenue & EBITDA
Herc Rentals Footprint and Market Size by State1
$1 Billion +
$500 – $1 Billion
$250 – $500 Million
$100 – $250 Million
$100 Million or Less Increase # of
branches
Reach more customers and
rent more fleet
Improve fleet
mix
Higher operational leverage &
flow through
Increase Volume in Existing Branches1
+
Add Branches to Existing Markets1
Market Size
HERC
Share
HERC
Locations
Washington DC /
Baltimore
$1.3 bn 2% 4
South Florida (Miami) $853 mm 2% 4
1 IHS Global Insight market size. Locations as of June 30, 2016.
23NYSE: HRI
Drive Operating Performance through Higher Margin Mix
and Volume
30%
40%
50%
Small Medium Large Major
Competitor
Revenue / Branch <$2.5 Million
$2.5 - $5.0
Million
$5.0 - $10.0
Million
Major
Competitor’s
Total
Branches
# of Branches3 81 109 80 897
Significant operating leverage in current N.A. branch footprint
Increased Volume Drives Higher Profitability – Leveraging Branch Fixed Costs
1 Represents management estimates for weighted average N.A. branch EBITDA margins for FY 2015.
2 FY 2015 Adj. EBITDA margin and 4Q’15 number of branches of a major competitor based on public filings.
3 Branch count refers to North America only.
EBITDA Margin by N.A. Branch Size 1
2
24NYSE: HRI
Supplier of Choice: Efficient, Effective and Safe
Best in class brands combined with a comprehensive suite of services
help customers work more efficiently, effectively and safely
Consultive solutions Subject-matter experts
Delivering Premium Products
Delivering Solutions-Based Products and Services
Providing Technology Solutions
Mobile App launched July 1
− More than 8,000 registered users (to date)
− Traction
Herc Rentals Telematics (ProControl™)
− Enhancement of telematics program underway
Salesforce.com
− Fully deployed throughout the North America organization
− Qualified leads are pushed to sales teams
− Provides platform for increasing collaboration across the sales organization
Optimus
− Pricing tool gaining acceptance and traction
25NYSE: HRI
Q2 2016 and YTD Highlights
Continued to right size fleet in upstream oil
and gas markets and reduced non-
premium brands
Made strategic changes to deemphasize
low margin new equipment sales, including
eliminating certain equipment
distributorships
Opened four North America locations to
support our urban market strategy
Implemented new rental equipment training
programs to support our ProSolutions™
and ProContractor™ gear
CONFIDENTIAL 26
Financial Overview
27
Q2 2016 Results
28
Equipment Rental
Revenue
• Reported $327.9 million in the quarter
• Excluding operations in France & Spain and
impact of foreign currency translation:
o + 0.1% overall
o + 8.1% in key markets1, which represented
84% of total
Pricing • +0.5% YoY
$ Utilization • 33.5%, a decrease of 50 bps YoY
Revenue Earning
Equipment – First
Half
• Acquisitions: $305.5 million
• Disposals (at estimated OEC): $170 million
NYSE: HRI
1 Key markets refer to those outside of the upstream oil and gas markets.
Q2 and YTD 2016 GAAP Summary
29NYSE: HRI
$ in millions, except EPS Three months ended June 30, Six months ended June 30,
2016 2015 2016 2015
Rental revenue $ 327.9 $ 347.7 $ 635.7 $ 679.3
Total revenue
380.4 422.7 746.0 824.0
Adjusted EBITDA1
130.6 147.3 238.4 276.7
Net income (loss) (8.0) 10.6 (9.5) 12.3
Earnings (loss) per share
(diluted)
$ (0.28) $ 0.35 $ (0.34) $ 0.40
1 For a reconciliation to the closest GAAP equivalent, see Appendix beginning on slide 38.
1 For a reconciliation to the closest GAAP equivalent, see Appendix beginning on slide 38.
Q2 and YTD 2016 Equipment Rental Revenues
(excluding France and Spain and Foreign Currency Translation)1
30
Q2 Equipment Rental Revenue
$ in millions
$643.8
$641.6
0
100
200
300
400
500
600
700
800
900
2015 2016
YTD Equipment Rental Revenue
Key markets represented
84% of total rental revenue
Rental revenue in key
markets increased 8.1%
Better-than-market revenue
growth in key markets offset
weakness in upstream oil
and gas markets
Pricing increased 0.5%
YoY
Key markets represented
82% of total rental revenue
Rental revenue in key
markets increased 9.9%
YTD
Continued weakness in
upstream oil and gas
markets eroded growth in
key markets
Q2 Equipment Rental Revenue Bridge
YTD Equipment Rental Revenue Bridge
NYSE: HRI
328
328
328
329
329
329
329
329
330
330
330
2015 2016
$329.8
$329.4
$20.8
$47.4
0.1%
YoY
(0.3%)
YoY
329.8
$20.4
$329.4
2015 Key Markets Oil and Gas 2016
$ 641.6
$49.6
$643.8
0
100
200
300
400
500
600
700
2015 Key Markets Oil and Gas 2016
Q2 Highlights
YTD Highlights
Q2 and YTD 2016 Total Revenues
(excluding France and Spain and Foreign Currency Translation)1
31NYSE: HRI
YTD rental revenues were
about flat
Used equipment sales
declined YoY because the
amount of fleet ready for
disposal was lower
New equipment sales were
also lower due to focus on
higher margin rental
activities
$406.7
$382.8
0
100
200
300
400
500
600
700
800
900
2015 2016
Q2 Total Revenues
$406.7
Q2 Total Revenue Bridge
$783.5
$753.3
0
100
200
300
400
500
600
700
800
900
2015 2016
YTD Total Revenues
$783.5
YTD Total Revenue Bridge
$ in millions
(5.9%)
YoY
(3.9%)
YoY
1 For a reconciliation to the closest GAAP equivalent, see Appendix beginning on slide 38.
$753.3
$2.2
$22.2 $4.9 $0.9
$783.5
2015 Equipment
rental
revenue
Sales of
revenue
earning
equipment
Sales of
new
equipment
Other 2016
$382.8
$0.4
$19.4 $4.3 $0.6
$406.7
2015 Equipment
rental
revenue
Sales of
revenue
earning
equipment
Sales of
new
equipment
Other 2016
Q2 and YTD Highlights
Q2 and YTD 2016 Adjusted EBITDA
(excluding France and Spain and Foreign Currency Translation) 1
32NYSE: HRI
Q2 Adjusted EBITDA
YTD Adjusted EBITDA
$267.3
$239.7
$9.4
0
50
100
150
200
250
300
350
400
2015 2016
$147.3
Higher proportion of sales
through auction channels
Oversupply of certain
categories of used
equipment
$ in millions
$131.1
2015 2016
$142.2
$267.3
Q2 Adjusted EBITDA Bridge
YTD Adjusted EBITDA Bridge
$131.1
$11.6
$11.8
$10.0 $1.3
$142.2
0
20
40
60
80
100
120
140
160
2015 Gain (loss)
on sales of
revenue
earning
equipment
Key
Markets
Oil and Gas Other 2016
(7.8%)
YoY
(10.3%)
YoY
1 For a reconciliation to the closest GAAP equivalent, see Appendix beginning on slide 38.
$239.7
$25.0
$24.8
$28.0
$0.6
$267.3
100
120
140
160
180
200
220
240
260
280
300
2015 Gain (loss)
on sales of
revenue
earning
equipment
Key
Markets
Oil and Gas Other 2016
Q2 and YTD Highlights
Revenue Earning Equipment
33
Average fleet original equipment cost (OEC).
NYSE: HRI
Herc Rentals acquired $305.5 million of OEC in the first half of 2016 compared to $437.3
million in 2015
Additions were managed prudently as we improved FUR and absorbed oil and gas fleet
while continuing to add fleet for ProSolutions™ and ProContractor™ equipment to improve
our fleet and customer mix and $ utilization going forward
Proceeds from disposals of equipment amounted to $62.8 million (approximately $170
million OEC) in the first half of 2016 as we continued to right size our upstream oil and gas
fleet and dispose of non-premium brands of gear that increased our FUR
2016 2015 $ Variance
Acquisition of revenue earning equipment $ 305.5 $ 437.3 $ 131.8
Proceeds from disposal of revenue earning
equipment
$ (62.8) $ (100.7) $ (37.9)
Net Fleet Expenditures $ 242.7 $ 336.6 $ 93.9
First half 2016 OEC is approximately $3.5 billion, up about 3% versus the first
half of 2015
Six months ended June, 30$ in millions
Debt
Ample liquidity and long-dated maturities provide financial flexibility
1 Total ABL facility size of $1,750 million.
$ in millions As of
June 30,
2016
Borrowing Against New Senior ABL 1 $ 839
7.50% Senior Secured Second
Priority Notes due 2022
610
7.75% Senior Secured Priority Notes
due 2024
625
Capital Leases 79
Total Debt $ 2,153
Cash and cash equivalents $43
Net Debt $ 2,110
34
Borrowing
Availability Under
ABL:
$838 million
NYSE: HRI
Key Initiatives Fueling Profitability and ROIC
Long term, Adjusted EBITDA is targeted to meet or exceed peer metrics
with ROIC expected to exceed cost of capital
Improvement Opportunity Initiatives underway
Shift Equipment Portfolio Mix
Adding ProSolutions and ProContractor Tools equipment to fleet
expected to improve $ utilization
Ancillary Revenue
Driving transportation, Rental Protection Plan, environmental fees and
other ancillary revenue
Branch Density / Scale Maximizing operational leverage
Labor Productivity Improving Field Labor productivity in O&G and Key Markets
Leverage Buying Power Realizing procurement savings through vendor consolidation
Price and Yield Utilizing proprietary tool to maximize yield
Operational Efficiency
Reducing internal and external repair costs, improving warranty
recovery, and increasing productivity
35
Transformation in Process
Implementing initiatives
to improve operating efficiencies
and drive revenue growth
Built an organization
to support stand alone public
company requirements
Positioned organization for
transformation
36NYSE: HRI
Our Vision
Employer of Choice
Supplier of Choice
Investment of Choice
37NYSE: HRI
Appendix
38NYSE: HRI
Glossary of Terms Commonly Used in the Industry
39NYSE: HRI
OEC: Original Equipment Cost; the cost of the asset at the time it was first purchased.1
Fleet Age: The OEC weighted age of the entire fleet.
2
Net Fleet Capex: Capital expenditures of revenue earning equipment minus the proceeds from disposal of revenue
earning equipment.
3
Dollar Utilization ($ Ute): Dollar utilization means revenue derived from the rental of equipment divided by the
original cost of the equipment (OEC) including additional capitalized refurbishment costs (with the basis of refurbished
assets reset at the refurbishment date).
4
Pricing: Change in pure pricing achieved in one period vs another period. This is applied both to year-over-year and
sequentially. Rental rates are calculated based on the category class rate variance achieved either year-over-year or
sequentially for any fleet that qualifies for the fleet base and weighted by the prior year revenue mix, on a constant
currency basis.
5
FUR: Fleet unavailable for rent.
6
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
40NYSE: HRI
EBITDA and Adjusted EBITDA are not recognized terms under GAAP and do not purport to be
alternatives to the most comparable GAAP amounts. Further, since all companies do not use
identical calculations, our definition and presentation of these measures may not be comparable to
similarly titled measures reported by other companies.
EBITDA and Adjusted EBITDA - EBITDA represents the sum of net income, provision for income
taxes, interest expense, net, depreciation of revenue earning equipment and non-rental
depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of merger and
acquisition related costs, restructuring and restructuring related charges, spin-off costs, non-cash
stock based compensation charges, loss on extinguishment of debt, and impairment charges.
Management uses EBITDA and adjusted EBITDA to evaluate operating performance and period-
over-period performance of our core business without regard to potential distortions. Additionally,
management believes that EBITDA and adjusted EBITDA help investors gain 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 do not purport to be
alternatives to net earnings as an indicator of operating performance, nor to cash flows from
operating activities as a measure of liquidity.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
41
$ in millions
Three months ended June 30, Six months ended June 30,
2016 2015 2016 2015
Net income (loss) $ (8.0) $ 10.6 $ (9.5) $ 12.3
Provision for income taxes 5.3 9.0 5.3 14.0
Interest expense, net 13.3 9.0 19.8 18.5
Depreciation of revenue earning
equipment
84.2 86.6 166.0 169.7
Non-rental depreciation and
amortization
10.6 19.1 21.1 37.9
EBITDA 105.4 134.3 202.7 252.4
Restructuring charges 3.1 0.3 3.4 1.0
Restructuring related charges 1 2.7 5.6 2.7 6.7
Spin-off costs 17.7 6.4 26.9 15.7
Non-cash stock-based compensation
charges
1.7 0.7 2.7 0.9
Adjusted EBITDA $ 130.6 $ 147.3 $ 238.4 $ 276.7
NYSE: HRI
1 Represents incremental costs incurred directly supporting restructuring initiatives.
42
Six months ended
June 30, 2016
Actual
Sale of France and
Spain
Foreign Currency
Translation
Six months ended
June 30, 2016
Adjusted
Total revenues $ 746.0 $ 0 $ 7.3 $ 753.3
Equipment rental revenue 635.7 0 5.9 641.6
Adjusted EBITDA 238.4 0 1.3 239.7
Reconciliation to Adjust for Divestitures and Foreign Currency
Translation
NYSE: HRI
Six months ended
June 30, 2015
Actual
Sale of France and
Spain
Foreign Currency
Translation
Six months ended
June 30, 2015
Adjusted
Total revenues $ 824.0 $ (40.5) $ 0 $ 783.5
Equipment rental revenue 679.3 (35.5) 0 643.8
Adjusted EBITDA 276.7 (9.4) 0 267.3
$ in millions
Three months ended
June 30, 2016
Actual
Sale of France and
Spain
Foreign Currency
Translation
Three months ended
June 30, 2016
Adjusted
Total revenues $ 380.4 $ 0 $ 2.4 $ 382.8
Equipment rental revenue 327.9 0 1.9 329.8
Adjusted EBITDA 130.6 0 0.5 131.1
Three months ended
June 30, 2015
Actual
Sale of France and
Spain
Foreign Currency
Translation
Three months ended
June 30, 2015
Adjusted
Total revenues $ 422.7 $ (16.0) $ 0 $ 406.7
Equipment rental revenue 347.7 (18.3) 0 329.4
Adjusted EBITDA 147.3 (5.1) 0 142.2
$ in millions
$ in millions
$ in millions
$ in millions
43
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Full Year
Equipment Rentals $ 331.6 $ 347.7 $ 373.1 $ 359.2 $1,411.6
France & Spain (17.2) (18.3) (17.6) (6.5) (59.6)
Equipment Rentals excluding
France & Spain operations
$ 314.4 $ 329.4 $ 355.5 $ 352.7 $ 1,352.0
2015 Quarterly Reconciliation excluding France & Spain 1
$ in millions
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Full Year
Income (loss) before income taxes $ 6.7 $ 19.6 $ 35.5 $ 95.1 $156.9
France & Spain 3.3 2.0 2.1 (49.8) (42.4)
Income (loss) before income taxes
excluding France & Spain
operations
$ 10.0 $ 21.6 $ 37.6 $ 45.3 $ 114.5
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Full Year
Adjusted EBITDA $ 129.4 $ 147.3 $ 160.2 $ 163.7 $600.6
France & Spain (4.3) (5.1) (5.2) (2.1) (16.7)
Adjusted EBITDA excluding France
& Spain operations
$ 125.1 $ 142.2 $ 155.0 $ 161.6 $ 583.9
NYSE: HRI
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Full Year
Total Revenues $ 401.3 $ 422.7 $ 431.8 $ 422.4 $1,678.2
France & Spain (24.5) (16.0) (19.4) (9.9) (69.8)
Total Revenues excluding France &
Spain operations
$ 376.8 $ 406.7 $ 412.4 $ 412.5 $ 1,608.4
1 Historical quarterly results reflect divested operations in France and Spain sold in October 2015.
Herc Rentals Corporate History & Key Events
19731968 2008 2010 20141965 2015
Introduced
industry-first
National
Accounts
program
Herc
Rentals
Founded
Rolled out
new
standardized
locations
1979
Entered
industrial
equipment
rental & leasing
markets
1989
New HERC
President
named
Launched
HertzEquip.
com
1997 1998
Expanded
into Canada
with
acquisition of
Certified
Rentals and
Acquired
2001 2003
Launched full-
scale general
rental program
and facilities
renovation
Energy
Services
Group
debuted
2004 2005
Hertz acquired by
Private Equity
Consortium
Crossed 300-
location milestone
in U.S. and
Canada
Launched
industry-first
online rental
account
management
Launched
Entertainment
Services
Entered China
Hertz IPO
New Hertz
CEO
named
2012
Acquired
New HERC CEO
named in June
Hertz announced
spin-off of rental
equipment
business
Larry Silber
named HERC
CEO and began
building new
senior team and
organization
Sold operations in
France and Spain
Growth / Consolidation
2011
New HERC
President
named
Financial
Crisis
Strategic
Changes
Path Forward
Entered
France
and
Spain
Ford
acquired
Hertz
2006
Industry first
mobile-
friendly
website
Over 50 years of outstanding legacy – strong foundation for the next chapter
2000
• Acquired
• Acquired
Service
Pump and
Compressor
1992
• Acquired
New
HERC
President
named
CONFIDENTIAL 44
45NYSE: HRI