Slide 1: Perimeter Solutions SA Q1 2022 Earnings Call
Perimeter Solutions SA Q1 2022 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 Q1 '22 Reven ue Grow t h 141% Ad just ed EBITD A Grow t h NM Ad just ed EBITD A M arg in NM Oil Additives Q1 '22 Reven ue Grow t h 50% Ad just ed EBITD A Grow t h 97% Ad just ed EBITD A M arg in 39% Consolidated Q1 '22 Reven ue Grow t h 70% Ad just ed EBITD A
Slide 7: Q4 and FY Financial Summary
Q4 and FY Financial Summary Fire Safety ($ '000) Q1 '22 Q1 '21 Reven ue 18,470 7,650 Ad just ed EBITD A (3,334) (4,646) Oil Additives ($ '000) Q1 '22 Q1 '21 Reven ue 39,288 26,275 Ad just ed EBITD A 15,311 7,756 Consolidated ($ '000) Q1 '22 Q1 '21 Reven ue 57,758 33,925 Ad just ed EBITD A 11,977 3,1
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 ~$10M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~163M (1) Excluding impacts from purchase accounting,
Slide 9: Diluted Share Count
Diluted Share Count Category Shares (M) Dilutive impact of performance- based stock options and Q1 2022 Wtd. Avg. Basic Shares Outstanding 160.3 warrants Dilutive impact of shares 1 Performance-Based Options and Warrants 0.4 issuable under the Fixed Annual Advisory Amount between Q1 2023 and Q1 2028
Slide 10: Supplementary Slides
Supplementary Slides
Slide 11: Long-Term Growth Track Record
Long-Term Growth Track Record ($m) Adj. EBITDA Revenue Revenue Adj. EBITDA Adj.Adj. EBITDA Margin EBITDA Margin 600 2010A – 2021A CAGRs 45% 40% Adj. EBITDA: 500 Revenue: 11% 17% (1) 35% 400 30% 25% 300 20% 200 15% 10% 100 5% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capex % NA
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: Incentive Alignment
Incentive Alignment • Approximately 8.9M stock options issued to management, employees, and directors • Vest ratably 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 157,137,410 Ordin
Slide 19: Appendix
Solutions That Save.
Slide 20: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Three Months Ended March 31, 2022 March 31, 2021 Income (Loss) before income taxes $ 27,579 $ (23,912) Depreciation and amortization 16,371 15,146 Interest and financing expense 10,496 7,851 Founders advisory fees (59,848) — T ransaction expenses 1,476 290 S
Slide 21: 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