Slide 1: Q4 2023 Investor Review & 2024 Guidance
Q4 2023 Investor Review & 2024 Guidance February 21, 2024
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
Slide 3: Fiscal 2023 Highlights
Fiscal 2023 Highlights Notable Highlights ▪ Grew revenue by 15.7% excluding divestitures (11.2% including divestitures) and increased Adjusted EBITDA(1) by 21.1% excluding divestitures (16.4% including divestitures) Delivered ▪ Realized Adjusted EBITDA margin(1) expansion of 120 basis points year-ov
Slide 4: Q4 2023 Solid Waste Adjusted EBITDA Margin Bridge
Q4 2023 Solid Waste Adjusted EBITDA Margin(1) Bridge Underlying Margin Expansion 245 bps Timing of Insurance Commodities Net Fuel Proceeds 35 bps (10 bps) M&A (35 bps) 15 bps Acceleration of underlying margin expansion 335 bps 315 bps 30.7% 245 bps 28.2% 190 bps 125 bps Q4 2022 Q1 2023 Q2 2023 Q3 20
Slide 5: Environmental Services – Well-Positioned for Incremental Growth
Environmental Services – Well-Positioned for Incremental Growth Environmental Services – Organic Growth (%) Environmental Services – Adjusted EBITDA Margin(1) Profile Strong Organic Growth Profile Driven by Focus on Quality of Revenue (e.g., pricing) & Asset Utilization (e.g., (90 bps) +160 bps expa
Slide 6: Net Leverage – Deleveraging Driven by Organic Growth & Divestitures
Net Leverage(1) – Deleveraging Driven by Organic Growth & Divestitures Net Leverage(1) Profile – Q4 2023 vs Q4 2022 Organic Deleveraging 5.0x (0.7x) U.S. Solid Waste Divestitures (0.3x) M&A Impact FX 0.2x 4.1x (0.1x) Q4-22 Q4 2022 2023 Organic Delveraging Divestitures Divestitures New M&A Q4-23 Q4 2
Slide 7: Large Weighting of Fixed Rate Obligations Provides Predictability
Large Weighting of Fixed Rate Obligations Provides Predictability Variable vs Fixed Interest(1) Current Debt Maturity Profile(1) Refinancing Flexibility with Revolver Revolver Capacity and ~2% TLB Potential New TLA ~11% Unsecured Notes 1,984 ~31% 1,719 1,653 992 ~$8.5B(1) 727 1,323 (As at Q4 2023) 9
Slide 8: 2024 Guidance
ao 2024 Guidance \ —M—__ JSS || 2
Slide 9: Fiscal 2024 Guidance – Revenue Bridge
Fiscal 2024 Guidance – Revenue Bridge Net M&A Roll Over Solid Waste Solid Waste Solid Waste Environmental ~4.0% Commodity Services U.S. Solid Price Surcharges Volume Price Impact Waste ~4.8% ~(0.3%) ~(0.6%) ~1.2% ~0.2% Divestitures Assumes Reflects 5.0% - negative volume 5.5% organic Assumes of 1.0%
Slide 10: Fiscal 2024 Full Year Guidance
Fiscal 2024 Full Year Guidance Fiscal 2023 Fiscal 2024 YoY (C$ millions, unless otherwise noted) Actuals Guidance Growth Revenue ▪ See page 9 for Revenue Bridge $7,516 ~$8,000 ~6.4% Adjusted EBITDA(1)(2) ▪ Adjusted EBITDA margin(1)(2) of ~27.7% $2,004 ~$2,215 ~10.5% Adjusted EBITDA Margin(1)(2) ▪ 10
Slide 11: Net Leverage – Continued Deleveraging in Fiscal 2024
Net Leverage(1) – Continued Deleveraging in Fiscal 2024 5.0x Adjusted EBITDA(2) growth and free cash 4.1x flow generation Anticipated M&A & Incremental Growth Opportunities 3.65x – 3.85x (2) Mid 3s (2) Q4-22A Q4 2022 Q4-23A Q4 2023 2024 Organic Delveraging Q4-24E Q4 2023G 2024 M&A Q4-24E Q4 2023G Af
Slide 12: Fiscal 2024 Priorities
Fiscal 2024 Priorities Outsized Adjusted EBITDA Margin(1) Expansion ▪ Continued focus on price-led growth ▪ Ongoing cost base optimization ▪ Moderating inflationary cost environment Bring Initial RNG Projects Online ▪ On-track to bring 2 – 3 RNG projects online in 2H 2024 ▪ Potential Arbor Hills EBI
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (C$ 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 Year ended instruments and (ii) gains and losses
Slide 15: 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 December 31, 2022, GFL Infrastructure was Three months ended Year ended presented as discontinued op
Slide 16: Adjusted Net Income (Loss) from Continuing Operations Reconciliation
Adjusted Net Income (Loss) 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 amortization of intangible assets such as customer lists, municipal contracts, non- Three months
Slide 17: Pro Forma Operating Segments – Fiscal 2023
Pro Forma Operating Segments – Fiscal 2023 (C$ and shares in millions, unless otherwise noted) Environmental Divestiture Pro Forma Reported As Adjusted Services Reclass(1) Contribution(2) Adjusted Revenue Canada 1,819.2 (44.8) 1,774.4 - 1,774.4 USA 4,233.4 (182.4) 4,051.0 (196.8) 3,854.2 Solid Waste
Slide 18: Pro Forma Operating Segments – Q1 2023
Pro Forma Operating Segments – Q1 2023 (C$ and shares in millions, unless otherwise noted) Environmental Divestiture Pro Forma Reported As Adjusted Services Reclass(1) Contribution(2) Adjusted Revenue Canada 412.5 (9.9) 402.6 - 402.6 USA 1,069.7 (49.1) 1,020.6 (107.4) 913.2 Solid Waste 1,482.2 (59.0
Slide 19: Pro Forma Operating Segments – Q2 2023
Pro Forma Operating Segments – Q2 2023 (C$ and shares in millions, unless otherwise noted) Environmental Divestiture Pro Forma Reported As Adjusted Services Reclass(1) Contribution(2) Adjusted Revenue Canada 465.8 (10.9) 454.9 - 454.9 USA 1,090.5 (44.7) 1,045.8 (89.4) 956.4 Solid Waste 1,556.3 (55.6
Slide 20: Pro Forma Operating Segments – Q3 2023
Pro Forma Operating Segments – Q3 2023 (C$ and shares in millions, unless otherwise noted) Environmental Divestiture Pro Forma Reported As Adjusted Services Reclass(1) Contribution(2) Adjusted Revenue Canada 473.6 (13.1) 460.5 - 460.5 USA 1,028.9 (46.4) 982.5 - 982.5 Solid Waste 1,502.5 (59.5) 1,443
Slide 21: Pro Forma Operating Segments – Q4 2023
Pro Forma Operating Segments – Q4 2023 (C$ and shares in millions, unless otherwise noted) Environmental Divestiture Pro Forma Reported As Adjusted Services Reclass(1) Contribution(2) Adjusted Revenue Canada 467.3 (10.9) 456.4 - 456.4 USA 1,044.3 (42.2) 1,002.1 - 1,002.1 Solid Waste 1,511.6 (53.1) 1
Slide 22: 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