Gfl Environmental Inc · TSX:GFL

Gfl Environmental — Q2 2023 Earnings Presentation

15 slides from Gfl Environmental's earnings presentation, Jul 27, 2023

  1. Slide 1: Q2 2023 Investor Review

    Q2 2023 Investor Review July 27, 2023

  2. Slide 2: Disclaimer

    Disclaimer Unless otherwise indicated, all references in this presentation to “GFL”, “we”, “our”, “us”, the “Company” or similar terms refer to GFL Environmental Inc. and its consolidated subsidiaries. Forward-Looking Information This presentation includes certain “forward-looking statements” and “f

  3. Slide 3: Q2 2023 Bridges – Implied Guidance vs Actual

    Q2 2023 Bridges – Implied Guidance vs Actual Revenue Bridge U.S. Solid Waste Divestitures ($25) Outperformance FX Impact $5 ($11) $1,975 $1,950 $1,944 Implied Q2 2023 Q2 2023 G US Solid Divestitures ProQ2 Forma 2023 Q2 2023 G PF Solid Waste FX Q22023 Q2 2023A Guidance Guidance Outperformance Actual

  4. Slide 4: Q2 2023 Solid Waste Adjusted EBITDA Margin Bridge – Year-Over-Year

    Q2 2023 Solid Waste Adjusted EBITDA Margin(1) Bridge – Year-Over-Year Underlying Margin Expansion 315 bps Commodities Insurance (110 bps) Net Fuel Recoveries M&A (10 bps) 35 bps (10 bps) Acceleration of fuel surcharge implementation Acceleration of underlying margin expansion mitigating Adjusted EBI

  5. Slide 5: Successful Completion of U.S. Solid Waste Divestitures

    Successful Completion of U.S. Solid Waste Divestitures  Successfully executed process to rationalize non-core assets  Comprised of three distinct non-core U.S. Solid Waste regions acquired as part of several recent larger acquisitions in the U.S. • ~$400M – $450M of annualized revenue in aggregate

  6. Slide 6: Greater Weighting of Fixed Rate Obligations in Rising Rate Environment

    Greater Weighting of Fixed Rate Obligations in Rising Rate Environment Variable vs Fixed Interest Current Debt Maturity Profile  Full repayment of outstanding revolving credit facility (~$800 million) and partial repayment of ~$734 million for the TLB with proceeds from U.S. Solid Waste divestiture

  7. Slide 7: Fiscal 2023 Guidance Update

    Fiscal 2023 Guidance Update

  8. Slide 8: Fiscal 2023 Guidance Update – Revenue Bridge

    Fiscal 2023 Guidance Update – Revenue Bridge U.S. Solid Waste Divestitures ($255) Guidance Upside FX(1) $70 ($15)  Incremental Solid Waste price and volume, partially offset by fuel surcharges and non- regrettable volume losses  Environmental Services outperformance  Contribution from new M&A $7,

  9. Slide 9: Fiscal 2023 Guidance Update

    Fiscal 2023 Guidance Update Original Fiscal 2023 Pro Forma U.S. Solid Pro Forma Adjusted Updated Fiscal 2023 Guidance Waste Divestitures Original Guidance Guidance (C$ millions, unless otherwise noted) (Midpoint) Revenue $7,600 ~($255) ~$7,345 ~$7,400 Adjusted EBITDA(1) 2,025 ~(75) ~1,950 ~2,000 Adj

  10. Slide 10: Net Leverage – Accelerated Deleveraging in Fiscal 2023

    Net Leverage(1) – Accelerated Deleveraging in Fiscal 2023 On Track to Realize ~10% Run-Rate EBITDA(1)(2) Growth Year-Over-Year while Significantly Reducing Net Debt by ~$1.4B Over the Same Period 5.02x 4.18x <4.0x(2) Adjusted EBITDA(1) growth and free cash flow generation Mid 3s(2) Q4-22A Q4 2022 Q2

  11. Slide 11: Appendix

    Appendix

  12. Slide 12: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation (C$ millions, unless otherwise noted) 1. (Gain) loss on foreign exchange: Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt Three months ended Six months ended instruments and (ii) gains and l

  13. Slide 13: Adjusted Free Cash Flow Reconciliation

    Adjusted Free Cash Flow Reconciliation (C$ millions, unless otherwise noted) 1. Operating cash flows from discontinued operations: Consists of operating cash flows from discontinued operations. As at June 30, 2022, GFL Infrastructure was Three months ended Six months ended presented as discontinued

  14. Slide 14: Adjusted Net Income from Continuing Operations Reconciliation

    Adjusted Net Income from Continuing Operations Reconciliation (C$ and shares in millions, unless otherwise noted) 1. Amortization of intangible assets: This is a non-cash item and consists of the Three months ended Six months ended amortization of intangible assets such as customer lists, municipal

  15. Slide 15: Definitions

    Definitions “EBITDA” represents, for the applicable period, net income (loss) from continuing operations plus (a) interest and other finance costs, plus (b) depreciation and amortization of property and equipment, landfill assets and intangible assets, plus (less) (c) the provision (recovery) for in

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