Slide 1: Perimeter Solutions SA Q1 2024 Earnings Call
Perimeter Solutions SA Q1 2024 Earnings Call May 9, 2024
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 Own, operate, and grow uniquely high- with 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: 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 & pro
Slide 5: Q1 2024 Financial Summary
Q1 2024 Financial Summary Fire Safety ($000) Q1 '23 Q1 '24 % Change Revenue 18,744 25,155 34% Adjusted EBITDA (3,361) (241) 93% Adjusted EBITDA Margin -18% -1% Specialty Products ($000) Q1 '23 Q1 '24 % Change Revenue 25,114 33,889 35% Adjusted EBITDA 6,477 12,377 91% Adjusted EBITDA Margin 26% 37% C
Slide 6: Long-Term Assumptions
Long-Term Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$10M annually Tax Rate ~26%(1) Capital Expenditures ~$10-15M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~145.2M(2) (1) Excluding impacts from purchase accoun
Slide 7: Appendix
777 Solutions That Save.
Slide 8: Diluted Share Count
Diluted Share Count Q1-24 Category Shares (M) Dilutive impact of performance- based stock options and Wtd. Avg. Basic Shares Outstanding 145.3 warrants Dilutive impact of shares 1 Performance-Based Options and Warrants 0.0 issuable under the Fixed Annual Advisory Amount between Q1 2024 and Q1 2028 2
Slide 9: Long-Term Growth Track Record
Long-Term Growth Track Record 600 ($M) 45% 2010A – 2023A CAGRs 40% 500 Revenue: Adj. EBITDA: (1) 35% 9% 11% 400 30% 25% 300 20% 200 15% 10% 100 5% - 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj. EBITDA Revenue Adj. EBITDA % Capex % NA NA NA NA NA 1.8% 1.2% 1.3% 1.7% 3
Slide 10: 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 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: 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 13: Incentive Alignment
Incentive Alignment • Approximately 14.5M stock options granted to management, employees, and directors are outstanding • Vest over five years based on intrinsic share price growth • Founder Advisory Agreement pertaining to the EverArc Founders • Fixed Annual Advisory Amount equal to 1.5% of 157,137
Slide 14: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Adjusted EBITDA ($000) Q1 '23 Q1 '24 Income before income taxes 3,109 (86,832) Depreciation and amortization 16,087 16,412 Interest and financing expense 10,146 10,648 Founders advisory fees - related party (24,236) 68,333 Non-recurring expenses 1,559 540 Sh
Slide 15: 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