Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Investor Presentation (September 2019)
16 slides from Charah Solutions's investor presentation, Sep 25, 2019
Slide 1: Business Overview and Value Proposition
Business Overview and Value Proposition September 2019
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This presentation and our accompanying comments include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements may be identified by words such as “may,” “will,” “
Slide 3: Why Charah Solutions?
Why Charah Solutions? - A proven, innovative, multi-service provider of complex environmental and maintenance services to the power generation industry uniquely capable of delivering customized client solutions. The - Ideally positioned to capitalize on regulatory and environmental climate affecting
Slide 4: Who We Are
Who We Are A Leading Provider of Environmental and Maintenance Services to the Power Generation Industry National Scale Environmental Solutions . Presence in 22 states . 37+ Coal-Fired Power Plants Ash pond and landfill design, closure & remediation . 14 Nuclear Power Plants as well as recycling and
Slide 5: Unmatched Breadth of Services
Unmatched Breadth of Services Offering A Broad Suite of Custom Solutions For Our Customers’ Most Complex Environmental Challenges and Mission Critical Maintenance Needs 5
Slide 6: Key Differentiators
Key Differentiators The Charah Solutions Traditional Service Providers Advantage Broad, only service provider offering a . Narrow, limited SCOPE OF SERVICES suite of CCR management and recycling, environmental remediation, and outage maintenance services TECHNOLOGY Cost effective, scalable, modula
Slide 7: Significant Market Opportunities
Significant Market Opportunities Maintenance & Technical Services Environmental Solutions $8B Annual estimated spend on coal ash 1.5B tons $75B+ management ($3B) and nuclear outsourced of coal ash stored in Total estimated coal maintenance and capital projects ($5B) 1,000+ ash ponds & ash remediatio
Slide 8: Recent Regulatory Developments
Recent Regulatory Developments Virginia Clean Closure North Carolina Clean Closure Illinois Clean Closure Legislation Decision Legislation . Signed into law in March 2019 . NC Department of Environmental . Signed into law in July 2019 Quality (DEQ) ordered Duke . Affects more than 27M tons of ash En
Slide 9: Beneficial Use of CCPs on the Rise
Beneficial Use of CCPs on the Rise . Despite the trend in coal-fired generation plant closures during the last 10 years, CCPs beneficially used increased to record levels in 2017 Total Historical CCPs Production and Use 160 Percent Used 60% (Right Axis) 140 50% 120 Produced 100 40% 80 30% All CCPs A
Slide 10: US Electricity Outlook - Driver For CCPs
US Electricity Outlook-Driver For CCPs . Coal-fired generation output projected to decline from 28% to 17% by 2050, but remain an important source of baseload capacity . Reserve Margins Narrow in Certain Regions 2018 6,000 history projections 5,000 4,000 Natural Gas 39% 34% 3,000 Renewables 31% 2,00
Slide 11: Business Updates
Business Updates . Received $80 million in Brickhaven termination payments in August/early September . Credit agreement amended to provide flexibility in meeting financial covenants; significant debt reduction plan in place . Delays in announcing bid awards in 1H19 due to: – Increased scope and comp
Slide 12: Growth Drivers
Growth Drivers . Increasing size and improving quality of outstanding bids . Despite coal plant retirements, fly ash production is expected to increase 2.6% through 20331 . Favorable market and regulatory dynamics accelerating need for CHRA remediation services – States becoming increasingly prescri
Slide 13: Debt Statistics (Pre-IPO)
Debt Statistics (Pre-IPO) . Liquidity of $23M as of 6/30/19: As of As of As of $ Millions 3/31/2018 12/31/2018 6/30/2019 – Cash: $10M Cash and Cash Equivalents $9 $7 $10 – Revolver1: $3M 2 – DDTL : $10M $50 Revolver -- $20 $35 . Received $80M in Brickhaven ($45 prior to refinance) termination paymen
Slide 14: Value Proposition
Value Proposition Expanding Pipeline Compelling Value Regulatory and Public of Opportunities Proposition to Policy Trends Driving Customers Customer Needs Commitment to 1.5B $75B+ Industry leader in ash excavation reducing greenhouse tons Total estimated gas emissions for a coal ash cleaner energy f
Slide 15: Appendix
=> Charah Solutions APPENDIX
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA We define Adjusted EBITDA as net (loss) income before interest expense, income taxes, depreciation and amortization, equity-based compensation, non-recurring legal and start-up costs and expenses, the Brickhaven contract deemed termination revenue reversal, an
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