Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Investor Day (March 2023)
99 slides from Clean Harbors's investor day presentation, Mar 29, 2023
Slide 1: Clean Harbors 2023 Investor Day: Vision 2027
Clean Harbors 2023 Investor Day Vision 2027: Driving Long-term Sustainable Value March 29, 2023
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: 2023 Investor Day Agenda
2023 Investor Day Agenda 07:00 AM - 08:00 AM Registration and Continental Breakfast Welcome and Introduction Company and Industry Overview 08:00 AM – 09:45 AM Environmental Services Safety-Kleen Sustainability Solutions (SKSS) 09:45 AM – 10:00 AM Morning Break Facilities 10:00 AM – 11:15 AM Human Re
Slide 4: Introduction
Introduction Alan McKim Executive Chairman, Founder & CTO 4
Slide 5: Industry-Leading Safety Record
Industry-Leading Safety Record Two Decades of Improvement in TRIR 4.50 Total Recordable Incident Rate (TRIR) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.73 0.50 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5
Slide 6: Clean Harbors Outperforms Market Over Past 20+ Years
Clean Harbors Outperforms Market Over Past 20+ Years ~7500% Return CAGR 23% CLH has generated a ~7500% return since 2002 vs. 230% for the S&P 6
Slide 7: Company Overview
Company Overview Mike Battles Eric Gerstenberg Co-Chief Co-Chief Executive Officer Executive Officer 7
Slide 8: Experienced Leadership Team
Experienced Leadership Team Alan McKim Mike Battles Eric Gerstenberg Executive Chairman, Co-Chief Executive Officer Co-Chief Executive Officer Founder & CTO Eric Dugas Loan Mansy Melkeya McDuffie Robby Speights Rebecca Underwood Brian Weber Chief Financial Officer EVP, Environmental Chief Human Reso
Slide 9: Our Mission is Based in Sustainability
Our Mission is Based in Sustainability “Create a Safer, Cleaner Environment Through the Treatment, Recycling and Disposal of Hazardous Materials” 9
Slide 10: North America's Environmental Services Leader
North America’s Environmental Services Leader ▪ Largest hazardous waste disposal company ▪ Largest collector, recycler and re-refiner of used oil ▪ 100+ waste management facilities ▪ More than two million waste profiles ▪ Top 20 largest private motor carrier ▪ More than 700 service locations ▪ 20,00
Slide 11: Sustainable Business Model – Led by Powerful Brands
Sustainable Business Model – Led by Powerful Brands (Environmental Services) Technical Safety-Kleen Facilities Services Environmental Field Services Industrial Services Safety-Kleen Sustainability Solutions Treat, Recycle, Gather Waste Transport Waste Transfer & 1 Perform Services 2 & Waste Oil 3 Co
Slide 12: High Barriers to Entry Creates Substantial Moat
High Barriers to Entry Creates Substantial Moat ▪ Complex regulatory requirements – own more than 500 permits; impossible to replicate ▪ Significant customer switching costs ▪ Unique assets and equipment ▪ Substantial capital costs ▪ Required safety standards ▪ Deeply experienced personnel ▪ Decades
Slide 13: Supported by Expansive Network of Service Branches
Supported by Expansive Network of Service Branches ▪ Locations in all 50 states, nine Canadian provinces and Puerto Rico ▪ Only North American provider with breadth of services ▪ All major metropolitan areas covered ▪ Ability to share assets and personnel 13
Slide 14: Aligned with Large and Attractive Market Opportunities
Aligned with Large and Attractive Market Opportunities Environmental Services Segment: ~$25-$30 Billion • Hazardous Waste Management: • Technical Services and SK Branch Services • Transportation, Treatment and Storage • Recycling and Disposal • Field Services and Emergency Response • Remediation & I
Slide 15: Diversification Limits Downside Risk
Diversification Limits Downside Risk 2020 2021 2022 Chemical 15% 16% 17% Manufacturing 17% 16% 15% Refineries 8% 9% 13% Base and Blended Oils 6% 9% 8% Automotive Service/Repair 9% 8% 8% Utilities 4% 5% 6% Government 5% 6% 5% Transportation 5% 4% 3% Oil and Gas 3% 3% 3% Retail 3% 3% 3% Other Industri
Slide 16: Sustainability Driving Opportunities
Sustainability Driving Opportunities ▪ Demand from customers for “green” solutions and sustainable partners is growing ▪ Potential financial benefits beyond increased sales include cost savings, additional recycling and other areas ▪ Improvement in ESG ratings ▪ Updated ESG report issued in late 202
Slide 17: Environmental Services Segment Leader in $25B+ Market
Environmental Services Segment Leader in $25B+ Market ▪ ~$4.1 billion in 2022 revenue ▪ Multiple service businesses supporting network of disposal and recycling assets ▪ Turnkey solutions for customers ▪ Environmental/sustainability partner ▪ On a reporting basis, segment consists of: • Technical Se
Slide 18: Safety-Kleen Sustainability Solutions Segment Leader in $20B+ Market
Safety-Kleen Sustainability Solutions Segment Leader in $20B+ Market ▪ ~$1 billion in 2022 revenue ▪ Carefully managed re-refinery spread business ▪ Focused on providing most environmentally friendly products to customers ▪ Closed loop offerings including lubricants, oil filters and antifreeze 18
Slide 19: Complementary Growth Strategies To Create Shareholder Value
Complementary Growth Strategies To Create Shareholder Value Cross-Sell Expand Pursue Execute Cost, Foster Capture Our Network and Acquisitions Pricing and Innovation Large Scale Solutions Suite of and Productivity Through Opportunities Offerings Divestitures Initiatives Technology 19
Slide 20: Disciplined Capital Allocation Strategy – Driven by ROIC
Disciplined Capital Allocation Strategy – Driven by ROIC Organic Growth Share ▪ Invest capex to drive Investments Repurchases organic growth ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan Acquisitions Debt ▪ Assess current debt structure and leverage & Divesti
Slide 21: Proven Approach on Acquisitions
Proven Approach on Acquisitions ▪ Completed 70 acquisitions in our history; will continue to be a key component of Vision 2027 plan ▪ Consistent due diligence approach to evaluate deals; review 4-5 opportunities per week ▪ Seasoned integration team and effective acquisition playbook ▪ Proven ability
Slide 22: Favorable Market Dynamics Support Growth
Favorable Market Dynamics Support Growth Reshoring Legislative Regulatory Sustainability ▪ Supply chain ▪ Infrastructure Bill ▪ Greater enforcement ▪ Green solutions – disruptions ▪ Chips and Science ▪ Pressure on captives more recycling ▪ Natural gas prices Act ▪ Challenging permitting ▪ Emphasis o
Slide 23: Vision 2027 – Five-Year Financial Targets
“Vision 2027”– Five-Year Financial Targets (in millions) Adjusted EBITDA Adjusted Free Cash Flow $2,000 14% CAGR $1,400 OG + M&A Model 6% CAGR ▪ ~$4B invested $1,022 ▪ Mix of cash and debt Organic Growth (OG) Model ▪ Maintain 2.0x leverage $800 ▪ Revenue = GDP + 1-3% ▪ Conservative multiples, intere
Slide 24: Environmental Services
Environmental Services Loan Mansy EVP, Environmental Sales & Service 24
Slide 25: Sales and Service Structure
Sales and Service Structure ▪ Five regions led by experienced teams supported by business unit leadership - Technical Services - Field Services - SK Environmental Services ▪ Over 400 service branches in network ▪ 1,000 sales and 5,000 service drivers and technicians ▪ Supplemented with labor, asset,
Slide 26: Technical Services
Technical Services LINES OF BUSINESS a Waste Disposal Large-Scale Waste Removal ats & Disposal Projects Container Management fa) Transportation Bef: Services Recycling Services THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY STRATEGIC ADVANTAGES on COMPANY-OWNED DISPOSAL . $ FACILITIES ELIMINATE THIR
Slide 27: Environmental InSite Services
Environmental InSite Services® 2022 Overview: ▪ Dedicated assets and personnel ▪ ~800 Programs embedded at customer site ▪ ~600 People ▪ Offers full range of environmental and waste services ▪ ~$550M in Annual Revenue ▪ Over past five years, Environmental InSite Services has 18% revenue CAGR ▪ 3M ac
Slide 28: Technical Services Revenue and Verticals
Technical Services Revenue and Verticals Brokers 5% ▪ Leadership position Healthcare Other 5% 23% ▪ Technical expertise Retail ▪ Vertical integration 6% 2017-2022 5-Year ▪ Online customer portal Government CAGR 6% ▪ Strategic prioritization Pharma & VERTICALS Biotech ▪ Strong market pricing 6% Chemi
Slide 29: Technical Services Market Share
Technical Services Market Share Cement Fuels Technical Services Other Addressable Market: CLEAN HARBORS ~$5+ Billion Heritage Tradebe Harsco Republic Services Veolia Source: Public filings and company estimates 29
Slide 30: Field Services
Field Services LINES OF BUSINESS Vacuum Services er \ ‘Sas Tank Cleaning Decontamination Emergency Response Product Recovery and Transfer THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY Demolition and Dismantling Scarifying and Media- ¥ Blasting Excavation and Removal Filtration and Treatment Service
Slide 31: Field Services – History of Emergency Response Events
Field Services – History of Emergency Response Events ▪ Eldia tanker on Cape Cod (1984) ▪ 9/11 World Trade Center (2001) ▪ Anthrax attack cleanup (2001) ▪ Hurricanes Katrina and Rita (2005) ▪ Deepwater Horizon spill (2010) ▪ Kalamazoo River spill (2010) ▪ Yellowstone River spill (2011) ▪ Hurricane S
Slide 32: Field Services Revenue and Verticals
Field Services Revenue and Verticals General ▪ National leadership position Manufacturing in emergency response (ER) 20% ▪ Partnerships with many 2017-2022 government entities Chemical 5-Year Utilities 8% CAGR ▪ ER coverage for over 35% 150,000 customers VERTICALS Government 5% ▪ 24-hour emergency o
Slide 33: Field Services Market Share
Field Services Market Share Field Services Addressable Market: CLEAN HARBORS ~$3 Billion Other Republic Services HEPACO ACT SET Source: Public filings and company estimates Miller Environmental Heritage-Crystal Clean 33
Slide 34: Safety-Kleen Environmental Services
Safety-Kleen Environmental Services 34
Slide 35: SK Environmental Revenue and Verticals
SK Environmental Revenue and Verticals ▪ Leadership position in parts Automotive Transportation washers and vacuum services 27% Services ▪ Subscription business with 12% 2017-2022 recurring revenues Construction 5-Year 5% CAGR ▪ Route density and efficiency Government 3% VERTICALS ▪ Inhouse manufact
Slide 36: Safety-Kleen Environmental Services Market Share
Safety-Kleen Environmental Services Market Share Heritage Harsco CleanTech World Oil Veolia Valicor Noble Oil SKE Core Services* Republic Addressable Market: ~$2+ Billion Services LES Heritage- Safety-Kleen Crystal Clean Other Source: Public filings and company estimates * Includes Parts Washers, CW
Slide 37: Sales and Service – Growth Drivers
Sales and Service – Growth Drivers 37
Slide 38: Sales and Service – Strategic Priorities
Sales and Service – Strategic Priorities ▪ Price Discipline ▪ Cross-selling ▪ Operational Excellence ▪ InSite Services ▪ Sustainability 38
Slide 39: Question and Answer Session
Question and Answer Session 39
Slide 40: Industrial Services
Industrial Services Robby Speights President, Industrial Services 40
Slide 41: Industrial Services – Establishing Industry Leadership
Industrial Services – Establishing Industry Leadership ▪ Combining leaders in environmental, industrial and specialty services ▪ Acquisitions expanding service lines offerings and coverage ▪ Consolidating leaders of automation and technology ▪ Leveraging technology, service offerings, assets across
Slide 42: Industrial Services
Industrial Services LINES OF BUSINESS Hydro blasting Vacuum truck F support Outage/turnaround services Production Services THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY Hydro excavation os Chemical Cleaning STRATEGIC ADVANTAGES 7,000+ EMPLOYEES & 186 OFFICES SPECIALIZING IN A BROAD RANGE OF INDUSTR
Slide 43: Industrial InSite Services
Industrial InSite Services® 2022 Overview: Strategic Advantages ▪ ~160 Programs ▪ Lowers customer churn ▪ ~1,800 People ▪ Improved communication ▪ ~$600M in Annual Revenue ▪ Increases utilization through cross training ▪ Enhances value to customer through cost efficiencies ▪ Increased safety due to
Slide 44: Specialty Services
Specialty Services LINES OF BUSINESS STRATEGIC ADVANTAGES Tank Cleaning Pigging and decoking 1,600+ HIGHLY SKILLED TECHNICAL EXPERTS WHO EXCEL IN MAINTAINING ENVIRONMENTAL COMPLIANCE FOR OUR CUSTOMERS aes Vapor control and Kg Leak Detection & water filtration Repair LARGEST FLEET OF SPECIALTY- ENGIN
Slide 45: Industrial Service Network
Industrial Service Network • Combined entity results in a strengthened, diversified service network • Now with service locations across North America 45
Slide 46: Industrial Services Revenue and Verticals
Industrial Services Revenue and Verticals Chemical ▪ Leadership position 23% Terminal & Pipelines ▪ Technical expertise and 6% 2017-2022 technology leader Utilities 5-Year 8% CAGR ▪ Vertical integration Automotive 2% VERTICALS ▪ Strategic prioritization Other ▪ Strong market pricing 9% 23% ▪ Extensi
Slide 47: Industrial Services – Large Addressable Markets
Industrial Services – Large Addressable Markets UNITED STATES CANADA Industrial Services Market ~$3.6 Billion Industrial Services Market ~$1.3 Billion Miller Debusk Mavaro Environmental K2 Evergreen Ancon Regional Competitors Regional Other Competitors GFL CEDA Avenge CLEAN HARBORS BME THOMPSON Orte
Slide 48: Industrial Services – Market Trends
Industrial Services – Market Trends ▪ Refinery utilization at all-time high ▪ Chemical manufacturing renaissance ▪ Considerable biofuels investment in the marketplace ▪ Construction and capital projects on the rise ▪ Automation and technology becoming priority ▪ Tight labor market 48
Slide 49: Industrial Services – Strategic Priorities
Industrial Services – Strategic Priorities ▪ Optimize HPC in second full year ▪ Complete Thompson Industrial integration ▪ Expand cross-selling ▪ Enhance margins through: - Pricing initiatives - Industrial services platform integration - Reduce rental spend - Employ more labor pools - Leverage size
Slide 50: Question and Answer Session
Question and Answer Session 50
Slide 51: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions Brian Weber President, SKSS 51
Slide 52: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions 52
Slide 53: Closed Loop Sales Model
Closed Loop Sales Model UMO Terminals UMO Collection Safety-Kleen OilPlus® Closed Loop Re-refineries Renewable Lubricants Delivery Blending & Packaging Distribution Centers 53
Slide 54: KLEEN+ Brand Represents Unmatched Value
KLEEN+ Brand Represents Unmatched Value ▪ Launched in mid-2022 ▪ Complements closed loop strategy ▪ Recognizes sustainability / ESG aspects ▪ 78% lower carbon footprint vs. conventional ▪ Demonstrated superior quality ▪ Opportunity to command premium 54
Slide 55: Multiple Re-Refineries Safeguarding Business Continuity
Multiple Re-Refineries Safeguarding Business Continuity 55
Slide 56: SKSS – Where We Gather and Where We Sell
SKSS – Where We Gather and Where We Sell Auto Other Industrial Retail 4% Fuel Car Rental 4% (DIY) Heavy Duty 9% Roofing 14% 10% 7% Heavy Duty Equipment 9% Service Paving 7% Centers OUTLETS Auto SOURCES OF 30% Marine Fuel 3% Dealerships 9% Industrial FOR REFINED WASTE OIL Lubricants PRODUCTS Quick 24
Slide 57: SKSS – Growth Drivers
SKSS – Growth Drivers ▪ Regulation and compliance ▪ Vehicle miles driven ▪ Lubricant demand ▪ Industrial production ▪ Sustainability ▪ International interest in model 57
Slide 58: SKSS – Waste Oil Collection Market Share
SKSS – Waste Oil Collection Market Share Estimated Annual Market: ~1.37 billion gallons ▪ Industry leader, 3X larger than next collector SKSS ▪ About half of the collected oil Other recycled into base oil, VGO or Collectors GFL other product HCCI ▪ Remainder of waste oil collected is burned as fuel
Slide 59: SKSS – Base Oil Production Market Share
SKSS – Base Oil Production Market Share 59
Slide 60: SKSS – Strategic Priorities
SKSS – Strategic Priorities ▪ Laser focused management of re-refining spread ▪ Grow UMO collection volumes ▪ Increase finished lubricant sales ▪ Invest in re-refineries to expand production ▪ Expand lines of business/share of wallet ▪ Capture operational efficiencies ▪ Enhance stability of business
Slide 61: Question and Answer Session
Question and Answer Session 61
Slide 62: Facilities
Facilities Rebecca Underwood President, Facility Operations 62
Slide 63: Unmatched Network of Recycling and Disposal Assets
Unmatched Network of Recycling and Disposal Assets ▪ More than 100 waste management facilities - 9 Incinerators - 8 Landfills - 33 Treatment, Storage & Disposal Facilities (TSDFs) - 8 Solvent recycling facilities - 10 Wastewater treatment operations - 8 Re-refineries ▪ Comprehensive management of al
Slide 64: Facilities – Market Share
Facilities – Market Share Commercial Hazardous Treatment, Storage & Disposal Incinerator Volume Hazardous Landfill Volume Facilities (TSDFs) Volume Heritage Secure Other Ross Heritage Clean Other Clean Harbors Harbors Veolia Clean WM Harbors WM Republic Services Veolia Harsco Giant Source: EI Digest
Slide 65: Our Facilities Safely Handle Substantial Volumes
Our Facilities Safely Handle Substantial Volumes 65
Slide 66: Unrivaled Hazardous Waste Incineration Capacity
Unrivaled Hazardous Waste Incineration Capacity Deer Park, TX El Dorado, AR Kimball, NE Aragonite, UT Sarnia, Ontario 66
Slide 67: Captive Incineration Market – Substantial Growth Opportunity
Captive Incineration Market – Substantial Growth Opportunity ▪ 30 captive locations today ▪ Operating a total of 41 captive incinerators ▪ Represents ~700K tons of annual capacity ▪ At one time there were more than 100 operating in the U.S. ▪ In 2022, 3M closed largest Clean Harbors Site captive in
Slide 68: Incineration Network Expansion – Kimball, NE
Incineration Network Expansion – Kimball, NE ▪ Adding 70,000-ton state-of-the-art incinerator to Kimball facility ▪ Kiln modeled after our El Dorado and will meet/exceed all state and federal emissions control standards ▪ ~$180 million project. Invested ~$50M to date; ~$90M planned for 2023 ▪ Excell
Slide 69: Groundbreaking PFAS Incineration Study
Groundbreaking PFAS Incineration Study ▪ Data demonstrates 99.9999% PFAS elimination through high-temperature thermal destruction ▪ Study conducted in 2021 and subsequently repeated; involved 49 PFAS analytes from 8 primary groups ▪ Study designed by third party and conclusions validated by renowned
Slide 70: Strategically Located Hazardous Landfills
Strategically Located Hazardous Landfills Lambton, Ontario Buttonwillow, CA Ryley, Alberta Lone Mountain, OK Grassy Mountain, UT Deer Trail, CO 70
Slide 71: TSDFs Enables Efficient Movement of Waste
TSDFs Enables Efficient Movement of Waste Baltimore, MD Smithfield, KY Wilmington, CA Spring Grove, OH Dolton, IL 71
Slide 72: Expansive Recycling Operations
Expansive Recycling Operations Linden, NJ Lexington, SC Chicago, IL Hebron, OH Dolton, IL 72
Slide 73: World Class Re-Refineries
World Class Re-Refineries East Chicago, IN Breslau, Ontario Tacoma, WA Kingsland, GA Fallon, NV Newark, CA Wichita, KS Rollingsford, NH 73
Slide 74: Facilities – Strategic Priorities
Facilities – Strategic Priorities ▪ Maximize incineration utilization - Leverage TSDFs ▪ Grow capacity with Kimball expansion ▪ Enhance captive incinerator partnerships ▪ Pursue large-scale projects for landfills ▪ Expand strategic waste routing initiatives ▪ Increase recycling and promote innovatio
Slide 75: Question and Answer Session
Question and Answer Session 75
Slide 76: Human Resources
Human Resources Melkeya McDuffie Chief Human Resources Officer 76
Slide 77: Creating a Competitive Advantage Through People
Creating a Competitive Advantage Through People | Our HR Mission To attract, develop and retain top talent that drives our organization's success. Cultivating a supportive and inclusive workplace culture enables our employees to achieve their full potential and deliver exceptional results. Our commi
Slide 78: Who We Are | Human Capital Highlights 2022
Who We Are | Human Capital Highlights 2022 Total Headcount Net Billable Net Drivers Growth in our Global Growth Headcount Added to Fleet Capabilities Center +9% +1300 +650 +55% 78
Slide 79: Who We Are | Our Human Capital Framework
Who We Are | Our Human Capital Framework Our strategy focuses on attracting, developing, mobilizing and retaining top talent while fostering a culture of innovation, safety, environmental stewardship, respect and inclusivity. 79
Slide 80: What We Value | Talent Acquisition & Internal Mobility
What We Value | Talent Acquisition & Internal Mobility Talent Acquisition • Bolstering our Employee Value Proposition • Military/Trade School Partnerships • Develop vs. Acquire CAREER GROWTH • Technology Enhancements Talent Engagement Talent Attraction • Engagement Surveys & Action & Retention Plann
Slide 81: What We Value | Employee Development & Training
What We Value | Employee Development & Training 01 Assess Engage in competency based 360 assessment process 02 Develop Develop a comprehensive 03 Accelerate Develop outcomes lead to development plan; pair new leader acceleration, with an executive coach succession, and/or leadership excellence Leade
Slide 82: What We Value | Performance Management & Coaching
What We Value | Performance Management & Coaching for Success Culture Technology Equipping Leaders as Coaches Continuous Improvement Leveraging Technology to Standardize and Optimize Building leadership capability; engage Focus on continuous improvement Performance Management at Clean Harbors in ong
Slide 83: What We Value | Driving Employee Engagement
What We Value | Driving Employee Engagement EMPLOYEE SATISFACTION INDEX Engagement Survey Responses: 70%+ participation each of last 3 surveys More than 14,000 responses in 2022 survey 2019 2022 83
Slide 84: What We Value | Attracting & Retaining a Diverse Workforce
What We Value | Attracting & Retaining a Diverse Workforce 84
Slide 85: The Way Forward | True North Goals
The Way Forward | True North Goals Executive Succession Robust talent review process, identify talent gaps, identify and develop successors for all critical leadership roles Employer Brand Awareness Leadership Diversity & Strong Employer Value Diversity recruiting and representation: Proposition Inc
Slide 86: Question and Answer Session
Question and Answer Session 86
Slide 87: Financial Overview
Financial Overview Eric Dugas Chief Financial Officer 87
Slide 88: 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 $224M ▪ 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* of
Slide 89: Five-Year Revenue Performance
Five-Year Revenue Performance (in millions) CAGR $5,167 12% $3,806 $3,300 $3,412 $3,144 2018 2019 2020 2021 2022 89
Slide 90: Five-Year Adjusted EBITDA and Margin Performance
Five-Year Adjusted EBITDA and Margin Performance 29.0% $1,022 (in millions) $1,000 CAGR 27.0% 19% 25.0% $800 $677 23.0% $600 $558 $574 $508 19.8% 21.0% 18.3% 17.8% 19.0% $400 16.4% 17.0% $200 15.4% 15.0% $0 13.0% 2018 2019 2020 2021 2022 Adjusted EBITDA* Adjusted EBITDA Margin * For a reconciliation
Slide 91: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 12/31/22 12/31/21 Cash and securities $555 $534 Billed & unbilled receivables $1,072 $888 Inventories and supplies $325 $251 Current and long-term debt $2,425 $2,535 Accounts payable $447 $360 Environmental liabilities $235 $211 91
Slide 92: Historical Adjusted Free Cash Flow
Historical Adjusted Free Cash Flow (in millions) 2018 2019 2020 2021 2022 Cash Flow from Operations $373 $413 $431 $546 $626 Capital Expenditures, net of disposals (178) (205) (187) ($220) ($336) Purchase and capital improvements of 21 corporate headquarters Adjusted Free Cash Flow $195 $209 $265 $3
Slide 93: Strong Financial Profile
Strong Financial Profile LEVERAGE ▪ $2.4 billion in long-term debt ▪ Less than 2X on a net debt basis ▪ Well positioned to strategically allocate capital and be opportunistic with lots of access to secured debt AGENCY CREDIT RATING BB+ Ba2 93
Slide 94: Schedule of Long-Term Debt Obligations
Schedule of Long-Term Debt Obligations Term (in millions) Loan B 4.875% Notes 6.375% Notes $985 5.125% Notes $545 $500 ABL Revolver $300 $114 2024 2025 2026 2027 2028 2029 2030 2031 94
Slide 95: Capital Allocation Strategy
Capital Allocation Strategy • Historical net capex investments equal to 5-6% of Organic Growth revenues, excluding major projects Investments • Recent increases driven by strategic organic investments • Disciplined approach to acquisitions driven by ROIC and Acquisitions & focused on complementary b
Slide 96: Vision 2027 – Five-Year Financial Targets
“Vision 2027” – Five-Year Financial Targets (in millions) Adjusted EBITDA Adjusted Free Cash Flow $2,000 14% CAGR $1,400 OG + M&A Model 6% CAGR ▪ ~$4B invested $1,022 ▪ Mix of cash and debt Organic Growth (OG) Model ▪ Maintain 2.0x leverage $800 ▪ Revenue = GDP + 1-3% ▪ Conservative multiples, inter
Slide 97: Reasons to Invest in CLH
▪ Market Leader with High Barriers to Entry ▪ Growth Potential Beyond GDP Reasons to ▪ Best in Class Systems/Management/Culture Invest in CLH ▪ Sustainability and ESG Profile ▪ Highly Resilient Business Delivers Consistent Performance 97
Slide 98: General Question and Answer Session
General Question and Answer Session 98
Slide 99: (NYSE: CLH) Investor Relations Contact
(NYSE: CLH) 42 Longwater Drive Norwell, MA 02061 Jim Buckley SVP, Investor Relations 781-792-5100 Email: Buckley.James@CleanHarbors.com www.cleanharbors.com 99