AMERCO 2015 Annual Report

July 15, 2015 Download

July 17, 2015

Dear Fellow Shareholders,

This year, 2015, marks the 70th anniversary of U-Haul. The needs of the do-it-yourself moving public have guided U-Haul from 1945 to the present. Our willingness to manage for the long-term is a key reason why U-Haul remains in business.

In Fiscal 2015, we enjoyed strong annual results. We followed our plan to expand and rotate our rental fleet while adding over 2.1 million square feet of self-storage.

In addition to fleet and self-storage occupancy increases, the Company has benefitted from favorable interests rates and a strong truck resale market.

Reinvesting prudently in the organization is at the core of our capital allocation strategy.

Over the coming year we look to improve utilization while investing in the fleet. We aim to improve convenience to the customer by broadening our network of independent dealers and new Company-owned stores. Doing so positions U-Haul to remain competitive in the market.

Repwest Insurance continues to demonstrate stability. Oxford Life has stayed on plan, obtaining an A- financial strength rating by A.M. Best for the second consecutive year.

In 2004, I shared what I call “AMERCO’s Shareholder Value Proposition.” This plan says a lot about who we are and what you should expect from the Company moving forward.

It is our intent to be a medium-size company with an entrepreneurial, aggressive management team, relatively immune to the potholes of corporate bureaucracy. Our plans include:

• Operating in a specialty niche, where our success is dependent more on how we treat our customers than on competitive or market conditions.

• Developing a self-funding balance sheet. Expand by using our own profits.

• Maintaining substantial insider ownership. This includes Shoen interests, ESOP and individual ownership by directors, employees, dealers and vendors.

• Continuing with a North American orientation. Remain relatively insulated from political changes and currency valuations.

• Maintaining constructive labor relations. Management free to make decisions independent of outside groups. Encourage a coincidence of interest between ownership, management, operative U-Haul System members and dealers.

• Maintaining a reasonable price/earnings ratio on our common stock. Emphasize the strength of the Company, not the strength of the stock price.

• Employing people who are high in integrity. Successful companies are composed of people with integrity at all levels of the company.

My gratitude to our customers, team members, U-Haul dealers, shareholders and lenders for their support.


E.J. “Joe” Shoen