Perimeter Solutions, Sa · NYSE:PRM
Perimeter Solutions, Sa — SPAC Merger (November 2021)
19 slides from Perimeter Solutions, Sa's SPAC merger presentation, Nov 3, 2021
Slide 1: Perimeter Solutions Overview
Filed by Perimeter Solutions, SA Pursuant to Rule 425 under the Securities Act of 1933 Form S-4 File No.: 333-259237 Subject Companies: SK Invictus Intermediate S.à r.l. EverArc Holdings Limited The below presentation will be used by representatives of EverArc Holdings Limited (“EverArc”) and SK Inv
Slide 2: Investor Presentation Disclaimer
Investor Presentation Disclaimer Use of Projections This presentation was prepared for informational purposes only by EverArc Holdings Ltd. ( EHL ) and SKI nvictus Holdings, S.à.r.l., (together with its affiliates and subsidiaries, SK ) and contains financial forecasts with respect to certain financ
Slide 3: Presenters
Presenters Nick Howley Co-Chairman Eddie Goldberg CEO Haitham Khouri Director 3
Slide 4: Our Objective
Our Objective Goal Strategy Own, operate, and grow Deliver private equity like uniquely high-quality returns with the liquidity of a businesses public market Target Economic Criteria ü Recurring and predictable revenue streams ü Long-term secular growth tailwinds ü Products that account for critical
Slide 5: 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 6: Perimeter Investment Highlights
Perimeter Investment Highlights Mission Critical Supplier 1 ü Mission-critical supplier of retardant to wildfire agencies globally Attractive Financial Profile 2 ü ~40% EBITDA margin and ~2% capex as % of revenue Long-Term Volume Growth 3 ü Long history of increasing fire severity and retardant use
Slide 7: Perimeter Solutions Overview
Perimeter Solutions Overview Segment Highlights Revenue by Geography • Fire Safety (~80% of EBITDA): Supplier of mission critical fire retardant globally. Canada Other • Volume Growth: ~10% historical volume growth driven by: Australia 2% 5% 5% – Higher Acres Burned and Longer Fire Seasons – Increas
Slide 8: Long-Term Growth Track Record
Long-Term Growth Track Record ($m) R EB eIvT eD nA ue R EB eIv Te D nA ue EBITDA Margin 700 45% 2010A – 2020A CAGRs 41% 40% 39% 40% 600 Revenue: EBITDA: (1) 35% 34% 12% 18% 35% 31% 30% 500 29% 29% 29% 30% 26% 400 25% 23% 20% 340 300 313 291 15% 245 200 239 223 10% 193 197 169 152 100 110 5% 136 127
Slide 9: Positioned for Continued Market Leadership
Po sitioned for Continued Market Leadership Product • Extensive performance, safety, and environmental testing driven by stringent regulatory and Qualification qualification requirements of the U.S. Forest Service • Perimeter provides a comprehensive, integrated product and service offering • Perime
Slide 10: Long-Term Fire Safety Volume Growth
Long-Term Fire Safety Volume Growth (1) 2009 – 2020 Retardant Volume CAGR = ~10% (2) Higher Acres Burned and Longer Fire Seasons Historical Volume (3) Increasing Wildland Urban Interfaces Growth Drivers (4) Increasing Firefighting Aircraft Capacity (1) 2009 through 2018 data per the National Interag
Slide 11: Domestic wildfire suppression spend is growing
Dollars Spent per Fire ($) 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 50,000 CAGR: 7% CAGR: 10% 1,000 2,500 40,000 800 2,000 30,000 600 1,500 20,0
Slide 12: Wildfire severity and suppression spend are 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 13: Prevention & Protection is a significant opportunity
Long-Term Fire Safety Volume Growth Prevention & Protection is a significant opportunity ü Perimeter’s products have proven effective in protecting critical infrastructure from active wildfires ü A single application of Perimeter’s prevention product can be effective for a full season ü The preventi
Slide 14: Critical Service Representing a Fraction of Spend
Critica l Service Repres enting a Fra ction of Spend Retardant is the active ingredient, and a critical component, in wildfire fighting, but consistently represents 2-3% of suppression costs Fire Retardants as a % of Federal Suppression Spend Fire Retardants as a % of California Suppression Spend Re
Slide 15: Perimeter Investment Framing
Perimeter Investment Framing Fire Safety Volume Growth MSD HSD Fire Safety Price Growth MSD Oil Additives Revenue Growth Flat EBITDA Margin Expansion 1%/yr 2%/yr Perimeter Projected 5-Year CAGR 20% 15% Range Range 10% 5% 0% Revenue EBITDA 15
Slide 16: Value Drivers
Value Drivers Productivity Capital Profitable New Value Based and Cost Allocation Business Pricing Improvements Fire Safety M&A International Rigorous value-based Annual cost Opportunity Other M&A pricing methodology improvements to across customers offset inflation Prevention & Share buybacks to &
Slide 17: Perimeter: Core Economic Criteria Scorecard
Perimeter: Core Economic Criteria Scorecard Criteria Commentary Fit • Consistent volume and price growth expected over the long-term Recurring and Predictable • NA fire season introduces near-term variability, though dampened by contract Revenue Streams structure, operational value levers, geographi
Slide 18: Perimeter Key Risks & Mitigants
Perimeter Key Risks & Mitigants 1 Risk: Fire Season Variability Ø Contract structure with tiered pricing Ø Operational value levers Mitigants Ø Opportunity to capitalize on “cyclical within secular” via share buybacks Ø Geographic diversification and Prevention/Protection should reduce seasonality 2
Slide 19: Perimeter Investment Highlights
Perimeter Investment Highlights Mission Critical Supplier 1 ü Mission-critical supplier of retardant to wildfire agencies globally Attractive Financial Profile 2 ü ~40% EBITDA margin and ~2% capex as % of revenue Long-Term Volume Growth 3 ü Long history of increasing fire severity and retardant use