HercRentals® Shifting Into High Gear Q1 2023 EARNINGS CONFERENCE CALL April 20, 2023 • Safe Harbor • Q1 2023 Overview • 2023 Outlook Herc Rentals Team & Agenda Larry Silber President & Chief Executive Officer Mark Humphrey Senior Vice President & Chief Financial Officer Agenda • Q1 Operations Review Aaron Birnbaum Senior Vice President & Chief Operating Officer Leslie Hunziker Senior Vice President Investor Relations & Communications NYSE: HRI ©2023 Herc Rentals Inc. All Rights Reserved. 2 Safe Harbor State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 Table of Contents HERC HOLDINGS INC. (Exact name of registrant as specified in its char ...

Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through EBITDA, Adjusted EBITDA, and REBITDA - EBITDA represents the sum of net income, provision (benefit) for income taxes, interest expense, net, depreciation of rental 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 ...

Herc Holdings Inc. (NYSE:HRI) Q4 2022 Earnings Conference Call February 14, 2023 8:30 AM ET Company Participants Leslie Hunziker - IR Larry Silber - President and CEO Aaron Birnbaum - SVP and COO Mark Irion - SVP and CFO Conference Call Participants Jerry Revich - Goldman Sachs Rob Wertheimer - Melius Research Neil Tyler - Redburn Ken Newman - KeyBanc Capital Markets Sherif El-Sabbahy - Bank of America Steven Ramsey - Thompson Research Group Larry Stavitski - Wells Fargo Mig Dobre - Baird Brian Sponheimer - ...

Revenue and Market Dynamics - The company's revenues are significantly affected by the cyclical nature of the construction and industrial sectors, with a decline in these areas leading to decreased demand for rental equipment [69]. - A substantial portion of revenues is derived from non-residential construction and industrial customers, making the company vulnerable to fluctuations in construction activity and oil and gas prices [70]. - The rental equipment market is highly fragmented, with price being a primary competitive factor, affecting revenue and operational results [93]. - Equipment rental revenues for 2022 reached $2.6 billion, a 33.6% increase from 2021, driven by a 31.8% increase in rental volume and a 5.8% increase in pricing [164][173]. - Total revenues increased by $665.7 million, or 32.1%, to $2.738 billion in 2022 compared to 2021 [172]. - The company’s revenues are primarily derived from equipment rental and related charges, including ancillary revenue from delivery and rental protection programs [161][162]. Financial Performance - Net income for 2022 was $329.9 million, up 47.2% from $224.1 million in 2021 [172][180]. - Earnings per share (diluted) increased to $10.92 in 2022, compared to $7.37 in 2021, reflecting a 48% growth [251]. - Cash provided by operating activities increased by $172.7 million to $916.7 million in 2022 compared to 2021 [185]. - The company reported a total comprehensive income of $301.6 million for 2022, compared to $230.9 million in 2021, marking a 30% increase [254]. - Direct operating expenses increased to $1,027.7 million in 2022, up from $782.3 million in 2021, reflecting higher operational costs [251]. Capital Expenditures and Investments - Capital expenditures for rental equipment amounted to $1.168 billion in 2022, a significant increase from $593.8 million in 2021 [192]. - The company expects net rental equipment capital expenditures for 2023 to be between $1.0 billion and $1.2 billion [193]. - Rental equipment expenditures rose significantly to $1,168.5 million in 2022, compared to $593.8 million in 2021, indicating a focus on expanding rental capacity [260]. Debt and Financial Risks - As of December 31, 2022, the company had total outstanding debt of approximately $2.9 billion, which significantly impacts cash flow and profitability [124]. - The company faces risks related to its significant indebtedness, which could adversely affect its financial condition and operational flexibility [124]. - An increase in interest rates could raise the cost of servicing debt, negatively impacting profitability [128]. - The company may incur additional debt in the future, which could exacerbate existing financial risks [130]. Operational Challenges - Supply chain disruptions, exacerbated by the COVID-19 pandemic, have led to delays in receiving equipment, potentially impairing the company's ability to meet customer needs [75]. - The company is heavily reliant on IT systems and third-party technologies, making it vulnerable to cybersecurity threats that could disrupt operations and harm its reputation [78]. - The company may experience inefficiencies due to competition for talent in the North American workforce, impacting business continuity and operational efficiency [95]. - Seasonal fluctuations in the construction industry could lead to lower profitability during off-peak periods, particularly from December until late spring [97]. Regulatory and Environmental Factors - The company is exposed to risks from government regulations and policies that could impact capital investments in infrastructure and energy sectors [71]. - Climate change and regulatory responses may negatively impact the company's business and operational results, requiring capital expenditures to meet customer standards [110]. - Environmental liabilities accrued as of December 31, 2022, were $0.4 million, reflecting potential costs related to compliance and remediation [109]. Shareholder Returns and Stock Performance - The company declared a quarterly dividend of $0.6325 per share on February 8, 2023, with a payment date of March 9, 2023 [202]. - The company maintained quarterly dividends of $0.575 per share and repurchased approximately 1.1 million shares for $115.2 million in 2022 [167]. - The company has a $1.0 billion share repurchase program, allowing for purchases through various methods, subject to market conditions and strategic priorities [153]. Strategic Growth and Acquisitions - The company completed 18 acquisitions and opened 21 new greenfield locations in 2022, resulting in a net cash outflow of $515.2 million [165]. - The company is pursuing strategic transactions, including acquisitions and divestitures, to enhance or expand its business operations [113]. Asset Management - Rental equipment represented 58.5% of total assets as of December 31, 2022, indicating a significant investment in this area [205]. - The company recorded asset impairment charges of $3.5 million, $3.2 million, and $15.4 million for the years ended December 31, 2022, 2021, and 2020, respectively [219].

HercRentals® Shifting Into High Gear THIRD QUARTER 2022 EARNINGS CONFERENCE CALL October 20, 2022 Herc Rentals Team & Agenda Larry Silber President & Chief Executive Officer Mark Irion Senior Vice President & Chief Financial Officer Agenda • Introductions • Safe Harbor • Overview • Operations Review • Financial Review • Q&A Aaron Birnbaum Senior Vice President & Chief Operating Officer Elizabeth Higashi Vice President, Investor Relations & Sustainability NYSE: HRI ©2022 Herc Rentals Inc. All Rights Reserved ...

Financial Data and Key Metrics Changes - Third quarter total revenue, rental revenue, and adjusted EBITDA reached all-time quarterly highs for the company [10] - Equipment rental revenue increased by 36% year-over-year, driven by strong core business performance and acquisitions [15][44] - Total revenues grew by 35%, impacted by lower sales of used equipment due to tight supply of new equipment [16] - Adjusted EBITDA increased by 40% year-over-year, with adjusted EBITDA margin improving by 160 basis points to 46.3% [16][46] Business Line Data and Key Metrics Changes - ProSolutions business delivered double-digit growth year-over-year, indicating strong demand for targeted solutions [28] - The average OEC fleet increased by 35% compared to the previous year, reflecting significant investment in fleet expansion [26][51] - Specialty equipment now represents about 24% of the total fleet, with room for growth [31] Market Data and Key Metrics Changes - The North American rental market is estimated to be $61 billion, growing by about 13% in 2022 [22] - Industrial spending is forecasted to grow by 6.3% in 2022 and 6.5% in 2023, indicating strong demand in key markets [60] - Non-residential construction activity is expected to increase by 19% in 2022, with additional growth of 2% in 2023 [61] Company Strategy and Development Direction - The company aims to sustain growth and expand market share through targeted acquisitions and greenfield operations in high-growth markets [12][23] - The strategic focus is on increasing the local customer base to 60% of revenues while maintaining national account business at 40% [34] - The company is committed to operational excellence and safety, with a focus on achieving 100% perfect days [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and raised guidance for adjusted EBITDA to $1.22 billion to $1.25 billion, reflecting a 36% to 40% increase over 2021 [13][65] - The company is experiencing a robust operating environment, with strong demand for rental services and ongoing supply chain challenges benefiting the rental business [43][64] - Management noted that the secular shift from ownership to rental is expected to continue, driven by supply constraints and rising costs for customers [101][102] Other Important Information - The company has completed 16 acquisitions in 2022, spending $441 million, with a solid pipeline for future acquisitions [54] - The company maintains a conservative leverage ratio of 2.4x, within the targeted range of 2x to 3x [57][109] - The company continues to pay a quarterly dividend of $0.575 per share, indicating a commitment to returning value to shareholders [57] Q&A Session Summary Question: Can you discuss the implied fourth quarter EBITDA guidance? - Management indicated that storms typically generate $5 million to $6 million in EBITDA, but the growth is primarily from fleet growth and acquisition activity [76] Question: What are the pricing trends in the quarter? - Pricing increased by 6.2% year-over-year, with expectations to maintain high pricing into 2023 [49][80] Question: What is the CapEx outlook for 2023? - Planned CapEx for 2023 is $1.5 billion, with flexibility to adjust commitments to vendors if necessary [81] Question: How is the supply chain expected to change in 2023? - Supply chain constraints are expected to persist into next year, with no significant loosening anticipated [85][87] Question: What is the rationale behind targeting a specific customer mix? - The company aims to shift towards a higher margin local customer base while maintaining growth in national accounts [93] Question: How does the current environment affect the shift from ownership to rental? - The current environment is driving an increase in the secular shift towards rental, which is expected to continue [102] Question: What is the outlook for acquisitions? - The acquisition pipeline remains robust, with no significant changes in multiples or seller willingness expected [124]

PART I. [FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) Herc Holdings Inc.'s unaudited financial statements as of September 30, 2022, reflect significant growth in assets, revenues, and net income [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$5.7 billion** from **$4.5 billion** at year-end 2021, driven by rental equipment and goodwill investments Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2022 (Unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $634.7 | $469.7 | | Rental equipment, net | $3,311.3 | $2,665.3 | | Goodwill | $379.1 | $231.5 | | **Total assets** | **$5,684.0** | **$4,490.4** | | **Total current liabilities** | $584.1 | $529.9 | | Long-term debt, net | $2,761.9 | $1,916.1 | | **Total liabilities** | **$4,600.9** | **$3,513.5** | | **Total equity** | **$1,083.1** | **$976.9** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2022 total revenues increased **35.4%** to **$745.1 million**, with net income up **40.2%** to **$101.4 million** Statement of Operations Summary (in millions, except per share data) | Metric | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Equipment rental revenue | $706.2 | $519.6 | $1,838.4 | $1,368.0 | | **Total revenues** | **$745.1** | **$550.4** | **$1,952.8** | **$1,495.1** | | Income before income taxes | $135.6 | $96.1 | $300.2 | $199.0 | | **Net income** | **$101.4** | **$72.3** | **$232.1** | **$152.3** | | **Diluted EPS** | **$3.36** | **$2.37** | **$7.66** | **$5.01** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$623.2 million**, while investing activities used **$1.32 billion** for equipment and acquisitions Cash Flow Summary for Nine Months Ended Sep 30 (in millions) | Cash Flow Category | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $623.2 | $503.2 | | Net cash used in investing activities | $(1,315.7) | $(613.8) | | Net cash provided by financing activities | $715.1 | $112.9 | | **Net change in cash and cash equivalents** | **$21.8** | **$2.2** | - The significant increase in cash used for investing activities was driven by **$841.2 million** in rental equipment expenditures and **$440.9 million** for acquisitions, net of cash acquired[32](index=32&type=chunk) - Financing activities were primarily impacted by net proceeds from revolving lines of credit and securitization, which totaled **$851.6 million** (**$2,079.8 million** proceeds less **$1,228.2 million** repayments). The company also paid **$51.5 million** in dividends and repurchased **$53.3 million** of common stock[35](index=35&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, business combinations, and debt, highlighting equipment rental and recent acquisitions - For the nine months ended September 30, 2022, approximately **91.8%** of total revenue was generated from operations in the United States[46](index=46&type=chunk) - The company completed the acquisition of Cloverdale Equipment Company for approximately **$178.2 million** on April 19, 2022. In addition, **15** other smaller companies were acquired during the first nine months of 2022[65](index=65&type=chunk)[68](index=68&type=chunk) - In July 2022, the ABL Credit Facility was amended to increase revolving credit commitments from **$1.75 billion** to **$3.5 billion** and extend the maturity to 2027. In August 2022, the AR Facility was amended to increase commitments from **$250 million** to **$300 million** and extend the maturity to August 2023[92](index=92&type=chunk)[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2022 performance to robust demand, higher rental volume, and improved pricing, supported by liquidity [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q3 2022 equipment rental revenue grew **35.9%** due to volume and pricing, with operating and SG&A expenses also increasing Key Performance Metrics - Q3 2022 vs Q3 2021 | Metric | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $745.1M | $550.4M | 35.4% | | Equipment Rental Revenue | $706.2M | $519.6M | 35.9% | | Direct Operating Expenses | $277.5M | $208.9M | 32.8% | | SG&A | $111.5M | $81.5M | 36.8% | | Net Income | $101.4M | $72.3M | 40.2% | - The **35.9%** increase in Q3 2022 equipment rental revenue was driven by a **34.9%** increase in the volume of equipment on rent and a **6.2%** improvement in pricing compared to the prior year[140](index=140&type=chunk) - The margin on sales of rental equipment improved to **24.7%** in Q3 2022 from **17.5%** in Q3 2021, attributed to a better sales channel mix and strong used equipment market pricing[142](index=142&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, the company had **$1.5 billion** in ABL credit availability and **$774.6 million** in net rental equipment expenditures - The company's liquidity as of September 30, 2022, included **$56.9 million** in cash and cash equivalents and approximately **$1.5 billion** in unused commitments under its ABL Credit Facility[156](index=156&type=chunk) Net Rental Equipment Expenditures (in millions) | Period | 2022 | 2021 | | :--- | :--- | :--- | | Rental equipment expenditures | $841.2 | $447.0 | | Disposals of rental equipment | $(66.6) | $(86.1) | | **Net rental equipment expenditures** | **$774.6** | **$360.9** | - During 2022, the company repurchased approximately **540,000** shares. As of September 30, 2022, **$336.7 million** remains available for future repurchases under the authorized program[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, and fuel prices, with no material change since year-end 2021 - As of September 30, 2022, there has been no material change in the market risk information reported in the Annual Report on Form 10-K for the year ended December 31, 2021[181](index=181&type=chunk) [Controls and Procedures](index=38&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2022, with no material changes in internal controls - The Chief Executive Officer and Chief Financial Officer concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective[182](index=182&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended September 30, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[183](index=183&type=chunk) PART II. [OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is subject to various ordinary course legal proceedings, which management believes will not materially affect its financials - The company is subject to a number of claims and proceedings that generally arise in the ordinary conduct of its business, and it does not believe the resulting liabilities will have a material adverse effect on its financial condition[105](index=105&type=chunk)[185](index=185&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for 2021 - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2022, the company repurchased **543,598** shares at **$108.80**, with **$336.7 million** remaining for repurchases Share Repurchases in Q3 2022 | Period | Total Shares Purchased | Average Price Per Share | Amount Remaining in Program | | :--- | :--- | :--- | :--- | | Jul 2022 | 72,086 | $104.65 | - | | Aug 2022 | 5,001 | $113.26 | - | | Sep 2022 | 466,511 | $109.40 | - | | **Total Q3** | **543,598** | **$108.80** | **$336,707,123** | [Other Information](index=39&type=section&id=ITEM%205.%20Other%20Information) No other material information was reported for this item during the quarter - None[189](index=189&type=chunk) [Exhibits](index=40&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, financing agreements, and certifications

Financial Data and Key Metrics Changes - The company reported a 35% increase in rental revenue for Q2 2022, totaling $605.4 million compared to the previous year [12][18] - Total revenue grew by 30% to $640.4 million, impacted by lower sales of used rental equipment [18] - Net income increased by 53% to $72.2 million, or $2.38 per diluted share, compared to $47.1 million, or $1.55 per diluted share last year [18] - Adjusted EBITDA grew by 37% to $284.2 million, with adjusted EBITDA margin improving by 210 basis points to 44.4% [19][53] - The company updated its 2022 adjusted EBITDA guidance to a range of $1.195 billion to $1.245 billion, implying a 34% to 39% increase over 2021 results [16][72] Business Line Data and Key Metrics Changes - The ProSolutions business continued to show strong double-digit growth year-over-year, contributing to overall revenue growth [29] - Local rental revenue represented 58% of total rental revenue, up from 56% in the same quarter last year [40] - The specialty fleet now accounts for 24% of total OEC, nearing the goal of 25% to 30% [36] Market Data and Key Metrics Changes - The North American addressable market size is estimated to be $60 billion, growing by about 15% in 2022 [22][66] - The company anticipates continued growth opportunities through 2023 and 2024, driven by infrastructure projects and pent-up demand [43][71] Company Strategy and Development Direction - The company plans to capitalize on market opportunities through organic growth supplemented by acquisitions [23][60] - A focus on expanding the specialty branch network to enhance customer response capabilities [37] - The company aims to maintain debt levels within a targeted range of 2x to 3x net leverage while pursuing growth [15][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong operating environment and ongoing demand for rental equipment [48][67] - The company is prepared to navigate potential economic downturns, leveraging lessons learned from past experiences [96][99] - Management noted that the current inflationary environment is manageable, with expectations for continued rate increases [56][57] Other Important Information - The company completed the acquisition of six additional companies in Q2, with a total of nine locations [12][60] - The company plans to repurchase shares under its stock repurchase program, with a remaining authorization of $395.9 million [14][64] - The company reported negative free cash flow of $197 million before acquisitions, indicating significant investment in fleet growth [62] Q&A Session Summary Question: Potential for improving time utilization and operational metrics post-acquisition - Management acknowledged opportunities for improving time and dollar utilization through acquisitions, though the extent is not tremendous [82][84] Question: SG&A costs and inflation impact - Most SG&A increases are attributed to strategic investments for growth, with pure inflation impacts in the mid-single digits [86] Question: Alignment with large infrastructure projects - Management feels well-positioned to capitalize on infrastructure spending, particularly in urban markets [89] Question: Fleet cost expectations for next year - Fleet costs are expected to be higher than mid-single digits in 2023, with current inflationary pressures manageable [90][91] Question: Operating leverage in a potential downturn - Management indicated that the current momentum would help mitigate negative operating leverage in a downturn scenario [96][98] Question: Mix impact on dollar utilization - Mix challenges were noted, primarily due to relative growth rates in different business segments [100][102] Question: Business trends and customer sentiment - Strong business trends were reported, with positive customer sentiment and ongoing construction activity [108] Question: Margin impact from acquisitions - Acquisitions are expected to be margin neutral initially, with potential for margin expansion through synergies over time [110]

HercRentals® Shifting Into High Gear SECOND QUARTER 2022 EARNINGS CONFERENCE CALL July 21, 2022 Herc Rentals Team & Agenda Larry Silber President & Chief Executive Officer Mark Irion Senior Vice President & Chief Financial Officer Agenda • Introductions • Safe Harbor • Overview • Operations Review • Financial Review • Q&A Aaron Birnbaum Senior Vice President & Chief Operating Officer Elizabeth Higashi Vice President, Investor Relations & Sustainability NYSE: HRI ©2022 Herc Rentals Inc. All Rights Reserved. ...