AMERCO 2018 Annual Report

July 13, 2018 Download

July 13, 2018

Dear Fellow Shareholders,

Customer demand for our products and services remains strong.

Earnings in Fiscal 2018 were buoyed by significant one-time events including the sale of a portion of our Chelsea, NY property and the tax changes enacted under the Tax Reform Act.

Tax reform provides real economic benefits to the Company that are only realized as our team does its part to deliver for the do-it-yourself moving public. We are continuing to invest in fleet, real estate and technology to meet customer needs now and into the future.

We struggled to turn our pickup and van fleet in the first half of the year. We are now turning on schedule, but margins are down based on acquisition cost increases and increased customer damage at turn in. The increased damage has increased our overall vehicle repair expense. Changes have been made, and are in process, to better control customer damages and to collect for it. Results are taking longer than anticipated.

The Company added 3,700,000 net rentable square feet to the self-storage portfolio. We continue to identify new investment opportunities in markets currently underserved by U-Haul. We are adding self-storage capacity faster than we are absorbing it. We are absorbing fast, we need to be faster.

We continue to grow our truck fleet. Customers continue to respond well to U-Haul Truck Share 24/7?. This integrates us with the communities we serve. We will continue to pursue this initiative.

Repwest Insurance is operating according to our plan. Oxford Life maintained an A- financial strength rating by A.M. Best for the fifth consecutive year.

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

Sincerely,

E.J. “Joe” Shoen

Chairman