Slide 1: Fourth-Quarter and Full-Year 2022 Investor Review
Fourth-Quarter and Full-Year 2022 Investor Review March 1, 2023 1
Slide 2: Forward Looking Statements and GAAP Disclaimer
Forward Looking Statements and GAAP Disclaimer These slides contain (and the accompanying oral discussion will contain) forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "should," "estimates," "proje
Slide 3: Delivered Strong Q4 and 2022 Results
Delivered Strong Q4 and 2022 Results Q4 ▪ Revenue grew 14% to $1.28B ▪ GAAP EPS of $1.52; Adjusted EPS* of $1.44 ▪ Adjusted EBITDA* increased 29% to $224.2M ▪ Adjusted EBITDA margin was 17.5%, up 190 bps from prior year Full-Year 2022 ▪ Revenue grew 36% to $5.17B ▪ GAAP EPS of $7.56; Adjusted EPS* o
Slide 4: Environmental Services
Environmental Services $1,047.0 Q4 Performance $908.1 ▪ Strong YoY increase in revenue driven by healthy demand for disposal, recycling and service businesses, along with pricing Revenue (in millions) + 15% ▪ Adjusted EBITDA up due to higher revenue and significant margin enhancement. Margin benefit
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $231.0 Q4 Performance $211.3 ▪ Revenue increased YoY due to base oil and blended product Revenue pricing, higher sales of RFO and ancillary services, along with + 9% (in millions) contribution from the Synergy acquisition ▪ Adjusted EBITDA and margin decrease dr
Slide 6: Capital Allocation Strategy – Driven by ROIC
Capital Allocation Strategy – Driven by ROIC 1 2 ▪ Invest capex to drive organic growth Organic Growth Acquisitions Investments & Divestitures ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan 3 4 ▪ Assess current debt structure and Share Debt leverage Repurchase
Slide 7: Financial Overview
THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 7
Slide 8: Q4 and Full-Year 2022 Income Statement
Q4 and Full-Year 2022 Income Statement (in millions, except per share data) Q4 2022 Q4 2021 2022 2021 Revenues $1,278.1 $1,119.5 $5,166.6 $3,805.6 Cost of revenues $891.4 $792.2 $3,543.9 $2,609.8 Gross profit $386.7 $327.3 $1,622.7 $1,195.7 Gross margin % 30.3% 29.2% 31.4% 31.4% Selling, general and
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 12/31/22 9/30/22 12/31/21 Cash and short-term marketable securities $554.6 $514.1 $534.3 Accounts payable $446.6 $416.9 $359.9 Billed and unbilled receivables $1,071.6 $1,161.0 $887.7 Current and long-term debt $2,424.8 $2,525.5 $2,534.6 Environmental liabiliti
Slide 10: Cash Flow Highlights
Cash Flow Highlights Q4 2022 Q4 2021 2022 2021 (in millions) Cash from operations $268.7 $177.8 $626.2 $546.0 Capital expenditures, net of disposals ($96.8) ($89.5) ($336.3) ($219.7) Adjusted free cash flow* $171.8 $88.3 $289.9 $326.3 Share repurchases $6.0 $6.0 $50.2 $54.4 * Please refer to the app
Slide 11: Guidance (as of March 1, 2023)
Guidance (as of March 1, 2023) Full-Year 2023 (in millions) Range Net Income $355 to $391 Adjusted EBITDA* $1,010 to $1,050 Net Cash from Operating Activities $705 to $765 Adjusted Free Cash Flow* $305 to $345 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITD
Slide 12: Appendix
APPENDIX THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 12
Slide 13: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) For the Three Months Ended For the Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income $ 82,474 $ 48,993 $ 411,744 $ 203,247 Accretion of environmental liabilities 3,344 3,120 12,943
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Adjusted net income Net income $ 82,474 $ 48,993 $ 411,744 $ 203,247 Loss on early extinguishment of
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Twelve Months Ended December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Adjusted free cash flow Net cash from operating activities $ 268,672 $ 177,771 $ 626,214 $ 545,997 Additions to property, plan
Slide 16: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2023 Projected GAAP net income $355 to $391 Adjustments: Accretion of environmental liabilities 14 to 13 Stock-based compensation 26 to 29 Depreciation and amortization 355 to 345 Loss on early extinguishment of debt 2 2
Slide 17: Questions
m= sf ~— THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY | leanHarbors
Slide 18: Investor Relations Contact (NYSE: CLH)
(NYSE: CLH) 42 Longwater Drive Norwell, MA 02061 Jim Buckley SVP, Investor Relations 781-792-5100 Email: Buckley.James@CleanHarbors.com www.cleanharbors.com 18