Slide 1: Perimeter Solutions SA Q4 2021 Earnings Call
Perimeter Solutions SA Q4 2021 Earnings Call
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation and discussion are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on Perimeter Solutions, SA’s (the “Company”) expectations, intentions and projections regarding the Company’s futu
Slide 3: Our Objective
Our Objective Our Objective Goal Strategy Deliver private equity like returns with Own, operate, and grow uniquely high- the liquidity of a public market quality businesses Target Economic Criteria Recurring and predictable revenue streams Long-term secular growth tailwinds Products that accou
Slide 4: Target Economic Criteria
Target Economic Criteria Criteria Commentary • Best in class metrics around long-term customer retention and growth Recurring and Predictable Revenue Streams • NA fire season introduces near-term variability, though dampening with growth in prevention/protection and geographic diversification • ~10%
Slide 5: Value Drivers
Value Drivers Productivity Profitable New and Cost Value Based Business Pricing Capital Allocation Improvements International Fire Safety M&A Opportunity Rigorous value-based Annual cost Other M&A pricing methodology improvements to Share buybacks across customers Prevention & offset inflation Speci
Slide 6: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Fire Safety Q4 FY Revenue Growth -23% 7% Adjusted EBITDA Growth -87% 5% Adjusted EBITDA Margin 5% 45% Oil Additives Q4 FY Revenue Growth -11% 7% Adjusted EBITDA Growth -17% -2% Adjusted EBITDA Margin 26% 23% Consolidated Q4 FY Revenue Growth -18% 7% Adjusted EBITDA Growth
Slide 7: Q4 and FY Financial Summary
Q4 and FY Financial Summary Fire Safety ($ '000) Q4 '21 Q4 '20 FY 2021 FY 2020 Revenue 23,924 31,052 261,180 244,968 Adjusted EBITDA 1,213 9,229 117,893 112,034 Oil Additives ($ '000) Q4 '21 Q4 '20 FY 2021 FY 2020 Revenue 21,954 24,767 101,158 94,609 Adjusted EBITDA 5,622 6,741 23,541 23,977 Consoli
Slide 8: Modelling Assumptions
Modelling Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$7-10M annually Tax Rate ~26%(1) Capital Expenditures ~$10M annually Change In Working Capital ~10-20% of the Δ in revenue Current Shares Outstanding ~163M (1) Excluding impacts from purchase accounting, transa
Slide 9: Supplementary Slides
Supplementary Slides
Slide 10: Long-Term Growth Track Record
Long-Term Growth Track Record ($m) Adj. EBITDA Revenue Revenue Adj. EBITDA Adj.Adj. EBITDA Margin EBITDA Margin 700 2010A – 2020A CAGRs 45% 40% 600 Adj. EBITDA: Revenue: 12% 18% (1) 35% 500 30% 400 25% 300 20% 15% 200 10% 100 5% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capex
Slide 11: Positioned for Continued Market Leadership
Positioned for Continued Market Leadership Product • Extensive performance, safety, and environmental testing driven by stringent regulatory and qualification requirements Qualification of the U.S. Forest Service • Perimeter provides a comprehensive, integrated product and service offering • Perimet
Slide 12: Long-Term Fire Safety Volume Growth
Long-Term Fire Safety Volume Growth 2009 – 2020 Retardant Volume CAGR = ~10% (1) Higher Acres Burned and Longer Fire Seasons(2) Historical Volume Increasing Wildland Urban Interface(3) Growth Drivers Increasing Firefighting Aircraft Capacity(4) (1) 2009 through 2018 data per the National Interagency
Slide 13: Long-Term Fire Safety Volume Growth: Suppression Spend
Long-Term Fire Safety Volume Growth Domestic wildfire suppression spend is growing Federal Fire Suppression Spend California Fire Suppression Spend 3,500 60,000 1,200 1985 – 2020 1985 – 2020 3,000 CAGR: 7% 50,000 CAGR: 10% 1,000 2,500 Total Fire Suppression Spend ($m) Total Fire Suppression Spend ($
Slide 14: Wildfire severity and suppression spend increasing globally
Long-Term Fire Safety Volume Growth Wildfire severity and suppression spend are increasing globally Australia Overview Chile Overview Australia’s annual federal spend on aerial firefighting has steadily The number of forest fires in Chile has increased over the last two increased over the past 1
Slide 15: Critical Service Representing a Fraction of Spend
Critical Service Representing a Fraction of Spend Retardant is the active ingredient, and a critical component, in wildfire fighting, but consistently represents 2-3% of suppression costs Fire Retardant as a % of Federal Suppression Spend Fire Retardant as a % of California Suppression Spend Retarda
Slide 16: Operating Principles
Operating Principles 1 Provide customers with high-value products and exceptional service 2 Maintain a decentralized and autonomous organization structure 3 Implement a compensation system that closely aligns management with shareholders 4 Follow our value-based operating methodology based on our th
Slide 17: Incentive Alignment
Incentive Alignment • Approximately 8.5M stock options issued to management and employees • Vest ratably over five years based on intrinsic equity value growth • Founder Advisory Agreement pertaining to the EverArc Founders • Fixed Annual Advisory Amount equal to 1.5% of 157,137,410 Ordinary Shares
Slide 18: Appendix
‘Solutions That Save.
Slide 19: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Fourth Q uarte r S/P Combine d Succe ssor Pre de ce ssor Thre e Months Nove mbe r 9, 2021 O ctobe r 1, 2021 Thre e Months Ende d Through Through Ende d De ce mbe r 31, 2021 De ce mbe r 31, 2021 Nove mbe r 8, 2021 De ce mbe r 31, 2020 Loss before income taxes
Slide 20: Thank You!
Thank You! NOTICE: Although the information and recommendations set forth herein (hereinafter “Information”) are presented in good faith and believed to be correct as of the date hereof, Perimeter Solutions/Solberg/Auxquimia (the “Company”) makes no representations or warranties as to the completene