HERC HOLDINGS INC. Bank of America Securities Global Industrials Conference March 16, 2021 Larry Silber President and Chief Executive Officer Mark Irion Senior Vice President & Chief Financial Officer Elizabeth Higashi, CFA Vice President, Investor Relations & Sustainability HercRentals® ©2021 Herc Rentals Inc. All Rights Reserved. Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements as that term is defined by the federal sec ...

Herc Holdings, Inc. (NYSE:HRI) Q4 2020 Earnings Conference Call February 18, 2021 8:30 AM ET Company Participants Elizabeth Higashi - VP, IR Lawrence Silber - President, CEO & Director Aaron Birnbaum - SVP & COO Mark Irion - SVP & CFO Conference Call Participants Mircea Dobre - Robert W. Baird & Co. Kenneth Newman - KeyBanc Capital Markets Ashok Sivamohan - Goldman Sachs Group Steven Ramsey - Thompson Research Group Operator Good day, and welcome to the Herc Holdings Inc. Fourth Quarter 2020 Earnings Confer ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-3313 HERC HOLDINGS INC. (Exact name of registrant as specified in its charter) ( ...

Financial Performance - Q3 2020 - Equipment rental revenue was $402.3 million, a decrease of 12.5% year-over-year[9] - Total revenues reached $456.7 million, down 10.1% compared to the previous year[9] - Net income significantly increased by 324.5% year-over-year to $39.9 million[9] - Earnings per diluted share rose by 321.9% year-over-year to $1.35[9] - Adjusted EBITDA was $196.7 million, a decrease of 6.1% year-over-year, with an adjusted EBITDA margin of 43.1%, an increase of 190 bps year-over-year[9] Fleet Management - The company managed a fleet valued at $3.73 billion at OEC (Original Equipment Cost)[16] - Fleet disposals in Q3 2020 amounted to $124 million, generating approximately 37% proceeds as a percentage of OEC[18] Market and Strategy - The company is focusing on high-growth urban markets, operating in 39 states and 5 provinces with 270 locations[14] - ProSolutions rental revenue increased by 14% in Q3 compared to the prior year[11] - The company updated its FY 2020 adjusted EBITDA guidance to $655 million to $675 million[41]

Financial Data and Key Metrics Changes - Equipment rental revenue was $402.3 million in Q3 2020, a decline of 12.5% or $57.3 million compared to the prior year [19][45] - Total revenues in Q3 were $456.7 million, down 10.1% or $51.4 million year-over-year, primarily due to lower rental revenue [20][45] - Adjusted EBITDA was $196.7 million, a decline of 6.1% compared to the prior year, but an improvement from Q2 [21][48] - Net income increased significantly to $39.9 million, or $1.35 per diluted share, compared to $9.4 million, or $0.32 per diluted share in 2019 [21][46] - Adjusted EBITDA margin improved to 43.1%, up 190 basis points from the prior year [21][48] Business Line Data and Key Metrics Changes - The specialty ProSolutions business delivered double-digit year-over-year rental revenue growth in Q3, with a 14% increase compared to the prior year [16][26] - National account customers represented 44% of rental revenues, providing stability during the COVID-19 pandemic [14][38] - The company managed to maintain positive average rates for the first nine months of the year compared to last year [16] Market Data and Key Metrics Changes - The rental revenue from contractors represented 34%, industrial customers 29%, infrastructure and government 18%, and other customers 19% of total rental revenue [36] - The industrial manufacturing activity began to close the gap with pre-COVID-19 levels, indicating a recovery in that segment [38] Company Strategy and Development Direction - The company has made strategic investments in specialty equipment rental over the last four years, which have proven beneficial during the pandemic [13][32] - The company aims to continue expanding its footprint through new locations and high-growth urban markets [30][31] - The focus remains on maintaining a lean cost structure, improving margins, and providing excellent service to a diverse customer base [40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the balance of the year, highlighting the company's resilience and ability to adapt to challenges [12][39] - The company expects a return to normal seasonality for the rest of the year, with a projected decline in rental revenue of 6% to 8% in Q4 compared to the prior year [41][68] - Management raised the adjusted EBITDA guidance for the full year 2020 to a range of $655 million to $675 million, assuming no further COVID-19 related shutdowns [67][68] Other Important Information - The company generated approximately $252 million in free cash flow year-to-date and increased liquidity to $1.4 billion by the end of Q3 [18][60] - Total debt was $1.8 billion as of September 30, 2020, a reduction of about $236 million from December 31, 2019 [61] Q&A Session Summary Question: What end markets are driving the sequential improvement into Q4? - The improvement is driven by a stronger comeback in non-residential commercial markets and emergency response markets due to hurricanes [80] Question: Can you elaborate on the EBITDA guidance for Q4? - Q3 is typically the seasonal peak in margin, and Q4 may see losses on equipment sales impacting EBITDA margins [84] Question: How does the fleet size impact utilization and market activity? - The company is working to close the gap to 2019 levels and can adjust fleet size based on actual demand [92] Question: What is the outlook for the entertainment business? - Visibility on TV and film is good, but live events remain uncertain due to the pandemic [113] Question: How significant were the unique factors like hurricanes and entertainment in Q3 results? - Revenue attributed to hurricanes and fires was only about 1% of the total third quarter revenue [126]

Table of Contents 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 September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 27500 Riverview Center Blvd. Bonita Springs, Florida 34134 (239) 301-1000 (Address, including Zip ...

Table of Contents 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 June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its chart ...

Table of Contents 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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its char ...

Revenue Dependence and Market Conditions - The company's revenues are significantly dependent on the rental of equipment to contractors and industrial customers, particularly in the non-residential construction market[64] - A decline in construction or industrial activity could lead to decreased demand for rental equipment and intensified price competition, negatively impacting financial results[64] - Economic conditions, including oil and gas prices, can significantly impact capital investments and maintenance expenditures of industrial customers, affecting rental demand[64] - Government regulations and policies, including those related to infrastructure improvements, can influence market conditions and demand for rental equipment[65] - The company’s financial performance is subject to general economic conditions and fluctuations in the markets served by its customers, particularly in construction and industrial sectors[135] Competition and Industry Risks - The equipment rental industry is highly competitive and fragmented, with price being a primary competitive factor, which could adversely affect revenues if not managed properly[76][77] - Seasonal fluctuations in rental activity, particularly in the construction industry, can lead to lower profitability during off-peak periods[82] Operational and Management Risks - Attracting and retaining key management and skilled labor is critical for executing the business strategy, especially in a competitive labor market[80][81] - The company may experience inefficiencies due to employee turnover and the ramp-up period for new hires, impacting overall business performance[80] - The reliance on centralized IT systems poses risks, including potential disruptions that could adversely affect operations and financial reporting[69][73] - The company faces risks related to cybersecurity breaches, which could harm its brand and lead to material liabilities[69][71] Financial Position and Debt Management - As of December 31, 2019, the company had total outstanding debt of approximately $2.1 billion, which significantly impacts cash flows and profitability[122] - The company has limited operating history as a stand-alone public entity, and historical financial information may not reliably indicate future results[117] - The company may need to finance substantial acquisitions through additional bank financing, public offerings, or private placements, which could be challenging due to its substantial indebtedness[106] - Substantially all of the company's consolidated assets secure certain indebtedness, which could adversely affect financial flexibility and liquidity[123] - The company is vulnerable to interest rate fluctuations, as a significant portion of its debt bears interest at floating rates, potentially increasing servicing costs and reducing profitability[126] Revenue and Income Performance - Total revenues for the year ended December 31, 2019, were $1,999.0 million, an increase from $1,976.7 million in 2018, representing a growth of 1.2%[162] - Net income for 2019 was $47.5 million, compared to $69.1 million in 2018, indicating a decrease of 31.1%[162] - Basic earnings per share for 2019 were $1.66, down from $2.43 in 2018, reflecting a decline of 31.8%[162] - Equipment rental revenue increased by $43.5 million, or 2.6%, in 2019 compared to 2018, driven by a 4.0% pricing increase and higher delivery and freight revenue[173] Asset Management and Impairment Risks - Goodwill and indefinite-lived intangible assets comprised approximately 9.5% of total assets as of December 31, 2019, posing a risk of impairment[91] - The company has experienced long-lived asset impairments of $5.1 million in 2019, affecting total expenses[162] - The company’s goodwill is tested for recoverability annually, with impairment deemed to exist if the carrying value exceeds fair value[226] - The company conducted an impairment analysis for goodwill and indefinite-lived intangible assets as of October 1, 2019, concluding no impairment was necessary[231] Strategic Transactions and Spin-Off Risks - The company may pursue strategic transactions, including acquisitions or divestitures, which could significantly alter its business profile[104] - The company relies on a favorable IRS ruling for the Spin-Off to be tax-free, but any inaccuracies in representations could lead to significant tax liabilities[112] - If the Spin-Off is deemed taxable, the company could incur substantial tax liabilities, affecting its financial resources[114] - The Spin-Off may be challenged as a fraudulent transfer, which could result in rescission or liability funding for New Hertz[119] Legal and Regulatory Risks - Changes in the legal and regulatory environment could disrupt the company's business and increase expenses, impacting financial results[89] - Economic sanctions and anti-corruption laws increase the risk of compliance violations, which could adversely affect the company's operations and reputation[86] - The company operates in several foreign countries, including Canada and China, exposing it to various regulatory and compliance risks[85] Cash Flow and Liquidity Management - Cash provided by operating activities increased by $76.5 million in 2019, totaling $635.6 million compared to $559.1 million in 2018[188] - Total contractual cash obligations as of December 31, 2019, amounted to $3,129.6 million, including $2,030.2 million in debt principal and $613.5 million in interest on debt[207] - The company maintains a fixed charge coverage ratio of not less than 1:1 under the New ABL Credit Facility, contingent on maintaining certain levels of liquidity[202] Stock and Shareholder Considerations - The company has a remaining share repurchase program value of approximately $395.9 million as of December 31, 2019[154] - The company did not pay any cash dividends in 2019 and does not expect to pay dividends for the foreseeable future due to debt agreements[155] - The market price of the company's common stock could decline due to large sales or distributions of shares, particularly from significant shareholders[129] - The company may issue additional common stock to finance operations or acquisitions, which could negatively impact the market price of its common stock[130]

Table of Contents 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 September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its ...