Document emDkroD7QKZNvx37z4Lo9zEQm

1.0000-IZO 1.9too 1.90300 Q3  iiiliilli 'ini; Brendan Horgan - President & CEO, Sunbelt Rentals 22 years Director, Aslitead Group Kyle Horgan - SP; Specialty Division Business Development, Sales & Marketing, Sunbelt Rentals 20 years Lesley Morico - Regional Air Compliance Program Manager, Sunbelt Rentals 14 years Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00002 * Sunbelt Rentals Business Overview Rental industry Landscape Our Engine Emissions Journey The Matter at Hand Request for Relief Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00003 * $3.9B 2017 revenue (+13% over 2018) 700+ locations * 12,000+employees Added 390 locations since 2011, creating 6,000+jobs Fleet * 550,000 rental assets, $7,9B * 3,100 commercial delivery and service vehicles, $330!Vi * Diesel portable generators * 10,000+ units 20kW~-~2,000kW, $3S0fVI Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00004 Market Share `Total Renici In-Jnpt:- `PowerGeneration Rental CatersHl (20% ) AiCireko (22%) Sierra Club v. EPA 18cv3472 NDCA Sunbelt Rentals Propriet;',? & Confidential Total U.S. Rental Forecast 70,000 60,000 50,000 1 40,000 S 30.000 20.000 10,000 0 i a a 8 8 (N <N ;iTiers I I f8N....C.s!...C.-.3...iN....8i.N...2.-.i ...NONOH CM i <fOINHN fO<HN rOiNH tr- O2-i '-OfHN3 NOfNH MOf\Hj O<OC"4i Ors Vrs<s ^?k! TanygeTitniS ED 002061 00181071-00005 MOBILE OFF-HIGHWAY EMISSIONS REGULATIONS SCHEDULES N O x /H C /C O /P M (g/kW-hr) [Conversion: (g/kW-hr)x 0.7457 = g/bhp-hr] (NOx+HC) / CO / PM (g/kW-hr) [Conversion: (g/kW-hr) x 0.7457 = g/bhp-hr] PM above equals Particulate Matter, measured in grams / kw-hour. This is the measurement used forfleet compliance standards m kW (kilowatt) and HP (horsepower) bands " Spirit of regulations to advance emissions standards, while maintaining supply Stricter standards were phased in over longer period for larger diesel engines Tier requirements far less stringent for larger stationary standby diesel generator engines (Tier 2) Sierra Club v. EPA18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00006 Purchases Disposals $5.28 $2B Early implamenters of emissions standards " Partnered with OEMs, buying most current and compliant engines " Disposals of pro- and eariy-Tier fleet Significant disposition channels were out of the country or in low-use environments " 98% of service truck population moved from 8-10 MPG trucks to more efficient 13-15+ MPG trucks across our network Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00007 Corporate Responsibility Target 6.5 8.2 8.7 it > 4.8 Sunbelt Average 3.2 2.8 C 7 2.3 2.8 2.6 California Portable Diesel Powered Generators PIVI Snapshot <175 175-750 >750 0.05 0.08 0.07 Sierra Club v. EPA 18cv3472 NDCA O oN> 0.18 0.04 0.08 0.08 0.02 Tiers 8&9 s Consistently ahead of California Air Resource Board (GARB) standards s +2.SM non-compliant diesel trucks removed from 3 acquisitions s Questions remain in >750 BHP generator future requirements Acquisition; Nobel Iron Acquisition: ARO Acquisitions; Arsenal S810 $1,000 $690 $2,500 ED 002061 00181071-00008 | End Markets Utilities Construction Oil & Gas Disaster Response * industrial * Events * Telecommunications * Proliferation of Data Centers SierraOT North American Power Rental Parke! Outlook for Diesel Generators (2017-2023) U.S. Canada Mexico Total 9.8% 11.3% 11.8% 10,2% North American Power Rental Parket Outlook by Power Rating (2017-2023) Up to SkW 3.4% 51 kW~Q0lrt 9.1% *500kW-r 10.1% *9.7% U.S. CAGR fo r >590kW 8&9 Source' Power Kental Maike? Global Market. Outlook 20* ED 002061 00181071-00009 Active hurricane season resulting in increasing demand for power generation in under-supplied U.S. market Sunbelt effectively 100% utilized in 750+ HP (SGGkW - 2MW) portable generators Industry unable to meet customer demand Demand for power generation to support: * First Responders - FEMA * State & Local Municipalities * Hospitals * Utility Providers * Senior Care Facilities * Food Distributors * Industrial Sector * Telecommunications * Remediation & Restoration Sierra Club v. EPA 18cv3472 NDCA Irma Category 4 Landfall Nate ; Category 1 Landfall Harvey Category 4 Landfall Tiers 8&9 Maria Category 4 Landfall ED 002061 00181071-00010 Sierra Club v. EPA 18cv3472 NDCA Sunbe Ryntals Proprii-tary & to n fidsntlal Tiers 8&9 a anta BELFOR m Sample of ustcniers sstvi^edj ED 002061 00181071-00011 Immediate & Ongoing Response " Maximum deployment was 787 generators " Hurricane response typically lasts 2 to 4 weeks " Puerto Rico response is now in the 7th month " 889 diesel generators still in use on the islands " Projected to continue through Nov. 2018 BELFOR ( * ) .*55 *4 0 Lo$ Berger S ' FEM Sample of customers serviced I Equipment Cost Deployed; >$25M Remaining on Island 4/20/ Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00012 ATLANTIC HURRICANES Named Storms 12 11 17 14 Hurricanes 6 4 10 8 Category 3+ 2 2 6 3 Numbers of Atlantic Basin named storms, those that attain at least tropical storm strength, hurricanes, and hurricanes of Category 3 intensity forecast by Colorado State University compared to the 30-year average, (Forecast: Tropical Meteorology Project/Colorado State University) Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00013 Sunbelt Diesel Powered Generator Recent & Forecasted Purchases Powpi Band 2013 2017 Purchases 2018 2019 Purchases 20kW through <580kW 560kW through 2MW 4,082 G 71% 1,852 29% 0% 184 100% 2,900 0 100% - / Worked as v planned X Market failure Aggressively purchased most current Tier available in all HP bands Without TP EM, no options exist in foreseeable future for >560kW Options exist in the >560kW band for stationary only; not portable Sierra Club v. EPA 18cv3472 NDCA Sunbelt Rentals Proprietary & Contjrjisniis! Tiers 8&9 14 ED 002061 00181071-00014 Optimistic forecast engine availability end of 2019 Availability of Tier 4 Final compliant engine is step 1 in a lengthy design process Specification, configuration and economic viability Sierra Club v. EPA 18cv3472 NDCA isunbyit Ryntala Propnstary & to n fidsritla ED 002061 00181071-00015  Targeted bridge allowance Up to 280 > SSOkW diesel generators through 2020 Emphasis will be on 1MW and larger generators Time is of the essence Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 Sierra Club v EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181071-00017