Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Investor Presentation (August 2023)
23 slides from Onterris's investor presentation, August 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
Slide 2: Safe Harbor
Safe Harbor Statements contained herein and in the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be iden
Slide 3: Operating Overview
Operating Overview
Slide 4: Montrose Environmental at a Glance
Montrose Environmental at a Glance • Unique, high growth environmental solutions company • Large and growing addressable market • Resilient revenue with repeat client base and diverse end markets • Strong record of organic growth and innovation • Consistent record of strategically and financially ac
Slide 5: What Does Montrose Environmental Group Do?
What Does Montrose Environmental Group Do? We Provide Environmental Solutions Focusing On: • Compliance with environmental regulations (e.g. air quality) • Greenhouse gas measurement and mitigation/removal • Water treatment and quality • Energy transition (e.g. renewable energy) • Response and risk
Slide 6: Our Integration Optimizes Environmental Solutions and Resonates With Clients
Our Integration Optimizes Environmental Solutions and Resonates With Clients 35% of Revenue Sourced From Multiple Service Lines in 2022 Assessment, Permitting & Response Measurement & Analysis Remediation & Reuse Environmental Consulting and Engineering Source Emissions Air Testing Water Treatment S
Slide 7: Montrose Key Stats
Montrose Key Stats • ~3,500 employees • 95+ locations worldwide • 6,000+ clients from the private and public sectors • 6 patents issued in 2022, for a total of 18 patents
Slide 8: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Ecosystem Regulatory Remediation Response Air Testing Laboratory Renewable Water Treatment Climate Change & Event Driven Response ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Greenhouse Gas Mitigati
Slide 9: Our Revenue is Resilient Due to Regulatory Underpinning and Diverse Customer Base
Our Revenue is Resilient Due to Regulatory Underpinning and Diverse Customer Base Revenue End Market Mix 2022 • Revenue retention is strong and 3.9% 3.2% 0.6% Manufacturing consistent: clients generating 95%+ revenue in FY2021 Oil & Gas repeated in FY2022, consistent Fed / State / Local Gov 8.2% 22.
Slide 10: We Have Consistently Created Value for Our Shareholders
We Have Consistently Created Value for Our Shareholders Organic Earnings Growth (+) Strategically Additive Acquisitions (+) • Average annual organic revenue growth(1) of ~ 16% • Acquisitions represent a core part of growth since 2020 and ~13% since 2018 strategy within a highly fragmented environmen
Slide 11: Acquisitions Remain Core To Our Strategy and Highly Accretive
Acquisitions Remain Core To Our Strategy and Highly Accretive 2023 Acquisitions © 2023 Montrose Environmental Group, Inc. Proprietary. 11
Slide 12: Matrix Solutions Acquisition: An Example of Value Creation
Matrix Solutions Acquisition: An Example of Value Creation Transaction Survey: • In June 2023, we completed a $48.2 million acquisition of Matrix Solutions, one of Canada’s leading environmental engineering and consulting companies. • With approximately 570 employees, 19 office locations and a blue-
Slide 13: Investment Highlights
Investment Highlights Significant scale with global The environment is reach in large, growing and highly our business fragmented industry Proven ability to identify, Strong financial performance execute and integrate with consistent track record acquisitions with a strong of growth & cash flow gene
Slide 14: Our Integrated Solutions are Helping Solve the World's Environmental Challenges
Our Integrated Solutions are Helping Solve the World’s Environmental Challenges
Slide 15: Working Across Montrose to Help Solve the Global PFAS Problem
Working Across Montrose to Help Solve the Global PFAS Problem Environmental Challenge: PFAS are widely used, long lasting chemicals components which break down very slowly over time in water, air and soil Remediation Outlook: PFAS remediation expenditures in the U.S. are estimated to surpass $160 bi
Slide 16: Working Across Montrose to Help Solve the Global GHG Problem
Working Across Montrose to Help Solve the Global GHG Problem STEP #1 Environmental Challenge: O&G industry’s operations represent 9% of human-made greenhouse gas Deep Understanding (GHG) emissions. Stakeholders, including the SEC's newly proposed climate And Working Knowledge change disclosure rules
Slide 17: Financial Overview
Financial Overview © 2023 Montrose Environmental Group, Inc. Proprietary. 17
Slide 18: Strong Record of Long-Term Growth
Strong Record of Long-Term Growth Revenue Consolidated Adjusted EBITDA(2) 2019-2023E CAGR(1): 25% and excluding CTEH 22% 2019-2023E CAGR: 27% ($ in Millions, Dec FYE) ($ in Millions, Dec FYE) ~$615(3) $546 $544 ~$78(3) $73 $114 $66 $232 $52 $328 $234 $82 $431 $30 $315 $234 $246 2019 2020 2021 2022 2
Slide 19: Attractive Capital Structure
Attractive Capital Structure Commentary Equity Market Capitalization Preferred Equity • Flexible balance sheet to pursue $182M(3) investments in innovation and acquisitions in highly fragmented industry • Montrose has $148.3 million of liquidity, including $23.3 million of cash and $125.0 million of
Slide 20: Appendix
Appendix
Slide 21: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree • No fixed maturity date • Oaktree has the right to Capital purchased $175mm appoint one representative - Repayable in cash at Company’s on the Montrose board of of Series A-2 Preferred option (sub
Slide 22: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to our results under GAAP, in this presentation we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Consolidated Adj
Slide 23: Reconciliation of Net (Loss) Income to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net (Loss) Income to Consolidated Adjusted EBITDA (In thousands) Year Ended December 31, December 31, December 31, December 31, December 31, 2022 2021 (a) 2020 (a) 2019 (a) 2018 (a) Net loss $ (31,819) $ (25,325) $ (57,949) $ (23,557) $ (16,491) I
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