Data-driven insight on equipment values, fleet sales, and key metrics for the rental industry APPRAISALS MAY ROUSE VALUE INDEX DOWN 1.

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1 June Rouse Rental Report Data-driven insight on equipment values, fleet sales, and key metrics for the rental industry APPRAISALS Rouse Appraisals provides rental companies, construction equip- APPRAISALS ment dealers, and their investors and lenders with the most accurate appraisals and equipment valuation information available. Rouse Appraisals values approximately $35 billion of equipment, tracks more than 30,000 unique make / models, and analyzes over $7.5 billion of retail, auction, and trade-in sales of used equipment annually. Contact Rouse Appraisals: Phone: info@rouseappraisals.com MAY ROUSE VALUE INDEX DOWN % The May Rouse Value Index Rouse Value Index for used equipment prices decreased to , down % from April values. The decrease is the thirteenth consecutive month of declines. The May value is 35 down 8.9% from the mid- peak of 46.9, and is below the April 2007 peak of However, the May Rouse Value Index remains 43.9% higher than the prior trough period of 29.7 in June The Rouse Value Index measures the average Orderly Liquidation Values for benchmark models across fourteen major rental category indices on a monthly basis. OLV (% of Cost) For a detailed view of 1- and 6-month value changes by category, see page 2. SALES Rouse Sales helps rental companies achieve higher SALES used equipment recoveries through the retail sales channel. Rouse Sales supports client sales of over $455 million in used equipment through the retail channel annually. Rouse Sales provides comprehensive solutions for the key components of an effective used equipment retail sales program including fleet identification, pricing, marketing, and review and analysis. Contact Rouse Sales: Phone: info@rousesales.com MAY AUCTION RESULTS* DOWN ON MODERATE VOLUME May auction sales of rental and construction Auction Volume and & Recovery Rates Rate equipment tracked by Rouse averaged 7.4% lower than Rouse April FLV values. Units sold in May % (~4,100 units sold at ~50 separate auction sales) % represented a combined FLV (as of April 30 th ) of $124.6 million and generated $115.3 million of 80 95% 0 90% gross auction proceeds. Categories of equipment Nov Dec Jan Feb Mar Apr May prevalent in general rental fleets (e.g., small- and Volume Sale Price / FLV mid-sized earth moving and aerial equipment) averaged 9.0% lower than April FLV values. Heavier equipment categories (e.g., large earth moving and mining equipment) averaged 5.7% lower than April FLV values. Volume ($ millions) *May auction results exclude 86 units sold/$11 million in sales proceeds at Ritchie Bros. s May 5, auction in Hazard, KY. Many of the units sold at this mining-focused auction were large dozers, wheel loaders, and mining trucks used by the coal mining industry with usage well above the market average. Most of the equipment was stored off-site in locations with limited accessibility (e.g., serving coal mines) and was represented for sale using photos. For additional detail on recent sales trends, see pages 4 and 5. Recovery Rate ANALYTICS Rouse Analytics provides rental companies of all A N A L Y T I C S sizes with monthly comparisons of pricing and key performance metrics to local market industry benchmarks and tracks over $800 million of monthly revenue from 60 clients in more than 100 markets. Metrics used in the Rental Metrics Benchmark Service are calculated according to the American Rental Association s Rental Market Metrics standards. Contact Rouse Analytics: Phone: info@rouseanalytics.com MARCH ROUSE RATE INDEX DOWN 0.4% During March, achieved rental rates as measured by the Rouse Rate Index decreased 0.4% on average for the rental companies participating in the Rouse Analytics Rental Metrics Benchmark Service. Rates are down 0.7% relative to March and up 24.1% relative to January. March physical utilization is up 1.6% from February Rouse Rate Index 4 5 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 For additional detail on recent rental trends, see pages 6-8.

2 ROUSE VALUE INDEX ROUSE APPRAISALS June OLV by Major Category The Rouse Value Index tracks used equipment values for the top 14 equipment categories of major rental companies. The index measures the average Orderly Liquidation Values for benchmark models within each category on a monthly basis. OLV is expressed as a percentage of replacement cost (average cost paid for a new equipment unit by large rental companies and dealers) for the average age of equipment sold within that category. OLV is derived from both retail (Fair Market Value) and auction (Forced Liquidation Value) sales data collected from rental companies, dealers and the public auction market. Rouse Services has analyzed billions of dollars in proprietary sales data provided by its clients for use in its equipment value database. Rouse has recently updated the names of several categories and subcategories. As such, you ll notice some name category name changes throughout this report and going forward. Please contact brian.cohen@rouseservices.com with any questions. 2

3 ROUSE VALUE INDEX ROUSE APPRAISALS Acquisitions by Major Category* Acquisitions by Major Category June Acquisitions by Major Manufacturer* Acquisitions by Major Manufacturer Acquisitions by Major Manufacturer Acquisitions by Major Manufacturer The graphs above highlight acquisitions by major category and by manufacturer for the rental industry. The graph to the left details the top 10 categories purchased and their respective percentage of total acquisitions. The graph to the right details the top 10 manufacturer names purchased and their respective percentage of total acquisitions. Acquisitions by Month* The graph above details monthly rental fleet capital expenditures by the major North American rental equipment companies, measured by original equipment cost (OEC). Each month s equipment purchases are expressed as a percentage of total OEC purchased in the highest volume month. This graph is intended to illustrate monthly acquisition trends in the construction rental equipment industry. *Measured by OEC $ 3

4 ROUSE SALES June EQUIPMENT SALES Sales by Sales Type vs. Fair Market Value (FMV) May Sales Sales $ as a % of Rouse FMV TTM Sales Category Retail Auction All** Retail Auction All** Air Compressors & Equipment 92.6% 23.9% 85.3% 90.2% 44.4% 76.9% Articulating Booms 98.1% 58.0% 88.1% 92.7% 53.7% 82.8% Compaction Equipment 101.9% 57.6% 100.7% 92.3% 40.2% 84.5% Excavators 98.0% 58.2% 86.0% 92.9% 85.7% Generators 96.5% 27.6% 78.6% 89.1% 28.1% 60.3% Loader Backhoes 101.8% 71.8% 95.8% 97.3% 73.1% 92.7% Scissor Lifts 97.1% 58.6% 87.4% 95.6% 53.3% 85.4% Skid Steer Loaders 102.1% 78.7% 99.4% 94.8% 7% 90.2% Telehandlers 100.6% 47.1% 98.1% 94.9% 6% 88.1% Telescopic Booms 92.2% 46.6% 82.8% 91.6% 50.5% 80.1% Warehouse/Industrial Forklifts 103.9% N/A 93.1% 96.0% 75.0% 93.1% Total 97.0% 51.7% 88.9% 93.5% 52.5% 83.5% Rouse Sales provides comprehensive sales solutions designed to help rental companies maximize used equipment sales recoveries. A key metric for measuring performance is blended recovery for all used rental fleet sales vs. Fair Market Value (FMV or Retail). The table above illustrates sales recoveries (as a % of Rouse FMV) by equipment category for retail, auction and all sales during the previous month as well as trailing twelve months (TTM) for the major North American equipment rental companies tracked by Rouse. ** Includes all sales types, including dealer and trade-in sales which are not separately displayed in this table Sales by Major Category* Sales by Major Manufacturer* The graphs above highlight sales by major category and manufacturer for the rental industry. The graph to the left details the top 10 categories sold and their respective percentage of total sales. The graph to the right details the top 10 manufacturers and their respective percentage of total sales. *Measured by Sales $ 4

5 EQUIPMENT SALES ROUSE SALES June Monthly Sales by Sales Type* The graph above illustrates sales of used rental fleet for the major North American rental equipment companies for the last twenty four months. Each month s equipment sale volumes are expressed as a percentage of the total original equipment cost ( OEC ) sold in the highest volume month (e.g., total OEC sold in September was approximately of total OEC sold in December ). Within each month, the percentage of OEC sold via each sale method (i.e., retail, auction, dealer/trade-in, other), as indicated by the different colors, is also expressed as a percentage of the OEC sold in the highest volume month (e.g., in February, retail sales accounted for approximately 40% of total OEC sold in December ). Monthly Sales Volume and Recovery* *Average Sold Age in Months The graph above illustrates sales of used rental fleet by the major North American rental equipment companies for the last twenty four months. Each month s equipment sale volumes are expressed as a percentage of the total original equipment cost ( OEC ) sold in the highest volume month. Actual sale $ volume is illustrated as the blue component of each bar in the graph. The recovery (i.e., sales $ as a percentage of OEC sold) is indicated within the bar for each month (e.g., December sales $ recovery was 49.2% of total OEC sold). *Measured by OEC $ 5

6 ROUSE ANALYTICS June PHYSICAL UTILIZATION Physical Utilization The chart below shows total fleet physical utilization. Physical utilization is the percentage of fleet cost which is on-rent during a given period. Physical utilization is cost weighted. On Rent and In Fleet 53.5% status are determined on a nightly 61.6% basis 7 days a week, 365 days a year. A unit is On Rent if it is at a job site earning rental revenue. A unit is In Fleet if it is a rental asset owned by the client. Units out for repair and refurbishment are considered In Fleet. Month Over Month Rental Rate Change The chart below show month over month rental rate change. Rouse Analytics calculates rate change weighted by prior period activity in accordance with the ARA Rental Market Metrics standard. Industry Average Age by Major Category Average age in months is a measure of equipment fleet age. Age is defined as the number of months since an equipment unit was first placed in service. Industry average age by category and in total is determined by multiplying individual equipment ages by their respective original cost and dividing the sum of those individual calculations by the total original cost of the same equipment. The chart above shows the average age of the top 10 categories of equipment (measured by total $ in fleet) for major rental companies and the total average industry fleet age for rental assets. Rental Rate Change % Top 10 Categories Total Fleet Physical Utilization 1.6% -1.8% Industry Average Age* (months) Articulating Booms 49.5 Compaction Equipment 29.6 Dozers 36.0 Excavators 37.0 Loader Backhoes 43.2 Scissor Lifts 40.1 Skid Steer Loaders 35.0 Telehandlers 35.5 Telescopic Booms 54.6 Wheel Loaders 4 All Rental Categories % Mar / Feb Mar / Mar Feb-11Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 *Weighted by Cost 6

7 65.4% ROUSE ANALYTICS PHYSICAL UTILIZATION Physical Utilization 35% Articulating Booms 42.5% Mar / Feb 3.4% -% 61.6% % Generators -6.2% % Scissor Lifts Telehandlers 2.3% 1.6% -1.8% Forklifts 58.8% 7% 53.5% 35% 58.8% 35% 35% 0.5% -7.2% % 53.5% Loader Backhoes -4.5% -4.8% 42.5% 0.8% w w w. r o u s e a nalytics.com 58.8% Skid Steer Loaders -2.1% 53.5% 65.4% 61.6% 7% 61.6% 42.5% 35% Mar / Mar Excavators Warehouse/Industrial 61.6% The charts below shows physical utilization by equipment category. Physical utilization is the percentage of fleet cost which is on-rent during a given period. Physical utilization is cost weighted. On Rent and In Fleet status are determined on a nightly basis Rent if it is at a job site earning rental revenue. A unit is In Fleet 7 days a week, 365 days a year. A unit is On 7% 7% if it is a rental asset owned by the client. Units out for repair 65.4% and refurbishment are considered In Fleet. 42.5% 65.4% June 0.3% Telescopic Booms 4.0% 53.5% 65.4% -0.6% 58.8% 65.4% 7% Wheel Loaders -5.8% 42.5% -6.7% 7% 42.5% 42.5% 61.6% % 61.6%

8 RENTAL RATE INDEX 6 ROUSE ANALYTICS Rate Rouse Index 0 1 June Rouse Rate Index tracks rental rates relative to January for the top equipment categories of major 5 rental The 8 companies. The index measures average rental rates weighted by activity as a % of January rates Mar / Feb & & Articulating Booms -% Generators -0.3% -0.2% -2.2% Scissor Lifts -0.2% % Excavators -0.1% 0.4% 8 93 Loader Backhoes 0.4% -0.2% µ Telescopic Booms -0.6% -1.5% Wheel Loaders 0.1% 0.7% Loaders 0.0% 0.4% Skid Steer Telehandlers -0.4% -% Warehouse/Industrial Forklifts -0.1% 0.4% w w w. r o u s e a n alytics.com Mar / Mar Jul / Jun 8