Slide 1: Second Quarter 2022 Investor Review
Second Quarter 2022 Investor Review August 3, 2022 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: Summary of Q2 Results
Summary of Q2 Results ▪ Revenue of $1.36B – ahead of expectations; Up 46% YoY reflecting the addition of HPC, organic growth and pricing to offset inflation ▪ GAAP EPS of $2.71 and Adjusted EPS* of $2.44 ▪ Adjusted EBITDA* increased 65% to $309.1M; Adjusted EBITDA margin of 22.8% ▪ Adjusted free cas
Slide 4: Environmental Services
Environmental Services $1,090.7 Q2 Performance ▪ Revenue up substantially YoY due to combination of HPC $724.1 acquisition with strong organic growth Revenue (in millions) + 51% ▪ Adjusted EBITDA grew primarily due to higher revenue. Margins up YoY as pricing offset inflation and cost reduction/prod
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $265.5 Q2 Performance $202.3 ▪ Revenue up sharply due to pricing of base oil, blended products Revenue and byproducts vs a year ago + 31% (in millions) ▪ Adjusted EBITDA and margin improvement driven by higher pricing, along with effective spread management of w
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: Q2 Income Statement
Q2 Income Statement (in millions, except per share data) Q2 2022 Q2 2021 Revenues $1,356.3 $926.5 Cost of revenues $898.5 $617.9 Gross profit $457.8 $308.6 Gross margin % 33.8% 33.3% Selling, general and administrative expenses $155.6 $124.1 SG&A % 11.5% 13.4% Depreciation and amortization $87.9 $71
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 6/30/22 3/31/22 12/31/21 Cash and short-term marketable securities $415.4 $414.9 $534.3 Accounts payable $409.2 $394.2 $359.9 Billed and unbilled receivables $1,139.7 $1,024.2 $887.7 Current and long-term debt $2,528.5 $2,531.5 $2,534.6 Environmental liabilitie
Slide 10: Cash Flow Highlights
Cash Flow Highlights Q2 2022 Q2 2021 (in millions) Cash from operations $170.6 $162.4 Capital expenditures, net of disposals ($76.0) ($47.8) Adjusted free cash flow* $94.6 $114.6 Share repurchases $30.0 $18.9 * Please refer to the appendix in this presentation for a reconciliation to the nearest GAA
Slide 11: Guidance (as of August 3, 2022)
Guidance (as of August 3, 2022) Full-Year 2022 (in millions) Range Net Income $355 to $390 Adjusted EBITDA* $975 to $1,005 Net Cash from Operating Activities $630 to $690 Adjusted Free Cash Flow* $310 to $350 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA
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 Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $ 148,157 $ 67,075 $ 193,471 $ 88,811 Accretion of environmental liabilities 3,197 2,873 6,353 5,826 Stock-based c
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Adjusted net income Net income $ 148,157 $ 67,075 $ 193,471 $ 88,811 Gain on sale of business (8,864) — (8,864) — Tax-r
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Adjusted free cash flow Net cash from operating activities $ 170,599 $ 162,432 $ 131,970 $ 265,432 Additions to property, plant and equipment (77
Slide 16: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2022 Projected GAAP net income $355 to $390 Adjustments: Accretion of environmental liabilities 13 to 12 Stock-based compensation 26 to 29 Depreciation and amortization 345 to 335 Gain on sale of business (9) to (9) Inte
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