Arq, Inc. · NASDAQ:ARQ

Arq — Advanced Emissions Solutions — Merger or Acquisition (August 2022)

14 slides from Arq's merger presentation, Aug 19, 2022

  1. Slide 1: Advanced Emissions Solutions, Inc. and Arq Limited Announce Transaction Agreement

    Advanced Emissions Solutions, Inc. Advanced Emissions Solutions, Inc. and Arq Limited Announce Transaction Agreement August 22, 2022 1

  2. Slide 2: Safe Harbor

    Safe Harbor 2 This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this presentation, the words “can,” “will,” “intends,” “expects,” “b

  3. Slide 3: Executive Summary: A New Path Forward

    Executive Summary: A New Path Forward 3 Combination enhances vertically integrated N.A. provider of activated carbon and creates new environmental technology products Provides additional growth opportunities, sustainable competitive advantage & improved long-term profitability ADES shareholders own

  4. Slide 4: Advancing the Vision: Creating a Leading, Vertically Integrated North American Provider of Environmental Technology Products

    Unique feedstock for AC and other high-value industrial markets Recognized leader in North American AC market Advancing the Vision: Creating a Leading, Vertically Integrated North American Provider of Environmental Technology Products 4 Text Text Text Text  Top 3 North American supplier of Activate

  5. Slide 5: Transaction Rationale: Create Highly Profitable Growth Engine

    Transaction Rationale: Create Highly Profitable Growth Engine 5 Expand Growth Opportunities1 Sustainable Competitive Advantage2 Enhance Long-term Profitability3 • GAC Market Development: Arq powder™ feedstock provides opportunity to sell into high-growth GAC North American AC Market (~325M lbs.) and

  6. Slide 6: Transaction Overview: Highly Accretive Transaction

    Transaction Overview: Highly Accretive Transaction 6 Future Ownership  Upon shareholder approval, ADES will issue shares to acquire Arq  Fully diluted ownership(1) will be:  ADES – 49.5%  Arq – 40.5%  PIPE – 9.0%  Warrants(2) – 1.0% Capital  ADES will issue additional equity to PIPE investors

  7. Slide 7: Pro Forma Financial Profile: Significant Growth Opportunities

    2022E 2023E 2024E 2025E 2026E Pro Forma Financial Profile: Significant Growth Opportunities 7 76% 14% 8% 93% 7% RemediationActivated Carbon Additives Chemicals Revenue & EBITDA Estimated Sales Product Mix Revenue EBITDA $87 $122 $196 -$5 $17 $61 ANNUALIZED G&A COST SAVINGS $7M / year STRONG PROJECTE

  8. Slide 8: Arq Overview: Emerging Environmental Innovator

    Arq Overview: Emerging Environmental Innovator 8  Existing strategic relationships with Peabody, Vitol and Mitsubishi:  Current investors in Arq business  Provide a combination of strong, investment grade supply-side, buyers and marketers of Arq products  Committed investors in combined company

  9. Slide 9: Expands Portfolio, Competitive Profile & Market Opportunity

    9 Category Product Type Market ADES ADES + ARQ Carbon Products & Industrial Additives Powdered Activated Carbon (PAC) Power generation, industrial and municipal markets   Granular Activated Carbon (GAC) Municipal water, soil and groundwater remediation and specialty gas phase   Colloidal Carbon

  10. Slide 10: Integrated Infrastructure: Established Operating Capabilities

    Integrated Infrastructure: Established Operating Capabilities 10 Red River Activated Carbon Plant Five Forks Lignite Mine Natchitoches Post-Activation Processing Facility Commercial Research & Development Arq Powder Production Plant Research & Development Facility Arq’s Corbin Plant, KentuckyADES’s

  11. Slide 11: Influential Strategic Relationships, Partners & Investors

    Entity Strategic Relationship Investor in PIPE Shareholder in Future Entity Strategic Partner - Peabody and Arq have a strategic collaboration on potential feedstock supply and best site locations for future plants.   Global Marketing & Sales Partner – Vitol, as a marketing partner, has been invol

  12. Slide 12: Expanded Leadership Team, Broad Industry Reach

    Expanded Leadership Team, Broad Industry Reach Venkat Siva – Chief Financial Officer Venkat has 15 years of experience in finance, capital markets and investment management. He co-founded Greenfire Resources, an oil producer in Canada in partnership with Trafigura. He is also a former M&A banker at

  13. Slide 13: Outlook & Key Milestones

    Outlook & Key Milestones 13 2025  Complete modification of Red River plant for enhanced capabilities  In-house production of CCP product commences at Red River  Upon successful evaluation and funding, complete 1) construction of facility in international market, and 2) commence sales in global sh

  14. Slide 14: A New Path Forward

    A New Path Forward 14 Combination enhances vertically integrated N.A. provider of activated carbon and creates new environmental technology products Provides additional growth opportunities, sustainable competitive advantage & improved long-term profitability ADES shareholders own at least 47.4% of

Advanced Emissions Solutions — Merger or Acquisition (August 2022) on 6ix