Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (October 2020)
13 slides from Hudson Technologies's investor presentation, October 2020
Slide 1: Refrigerants, On-Site Services & Sustainability
Refrigerants, On-Site Services & Sustainability NASDAQ: HDSN October 2020 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Slide 3: Our Business
Our Business Providing Aftermarket Refrigerant for Cooling Systems: Any Refrigerant, Any Place, Anytime Residential & Light Large Commercial/Industrial 24/7 Supermarkets Department of Defense Commercial Reclaiming (Recycling) Used Gas as Supply Source Applies to All Hudson Becomes Margin Opportunity
Slide 4: Investment Considerations
Investment Considerations • Refrigerant is the critical chemical used in air • Provider to HVAC supply houses which serve Large conditioning and refrigeration systems Embedded at residential/light commercial market Market Key Points In Opportunity • Participant in multiple billion-dollar markets Sup
Slide 5: National Presence
National Presence Diverse customer base: 7,000+ customers 40+ facilities and stocking points 3 reclamation facilities One of few companies with AHRI certified laboratories Corporate Office Reclamation Centers Stock Points Government Fulfillment Center 5
Slide 6: Energy Efficiency & Climate Concerns Drive Refrigerant Evolution
Energy Efficiency & Climate Concerns Drive Refrigerant Evolution 1987 Montreal Protocol 1996 Kyoto Protocol 2011 EU MAC Ozone Depletion Global Warming Vehicle Refrigerant Concerns Concerns GWP< 150 CFCs HCFCs HFCs HFOs Chlorofluorocarbons Hydrochlorofluorocarbons Hydrofluorocarbons Hydrofluoroolefin
Slide 7: Strategically Positioned in Supply Chain
Strategically Positioned in Supply Chain • Leading source for refrigerants (CFC, HCFC, HFC, HFOs) – Strong legacy R-22, HFC and next generation refrigerants – Longstanding customer relationships • Embedded at two key points in supply chain • Hudson leverages sales network to buy back refrigerants fo
Slide 8: Large DoD Contract: Expanded Products & Services
Large DoD Contract: Expanded Products & Services Department of Defense Contract With Maximum Value of $400M Over 10 Years – 5-Year contract with 5-year renewal option from the U.S. Defense Logistics Agency (“DLA”) • Fixed price contract for management and supply of refrigerants, compressed gases,
Slide 9: Reclamation Opportunity
Reclamation Opportunity TECHNOLOGIES
Slide 10: Near-Term R-22 Market Opportunity
Near-Term R-22 Market Opportunity • Virgin R-22 Production Ceased as of December 31, 2019 – Some virgin inventory remains and is expected to be cycled through by year-end 2020 • COVID-related closures of office buildings, schools, recreational facilities and other locations temporarily impacted end
Slide 11: Change in Refrigerant Production Benefits Hudson
Change in Refrigerant Production Benefits Hudson R-22 Refrigerant 2020 & Beyond Supply End Customer ~20% virgin New (Virgin) Gas gross margin Honeywell Residential Homes Chemours Arkema Light Commercial ~50% reclaim Industrial gross margin 24/7 Cooling Reclaimed Gas (Supermarkets, Chemical Plants) D
Slide 12: A Leader in the Fragmented Reclamation Market
A Leader in the Fragmented Reclamation Market Hudson captures approximately 35% of the reclaim market Other ~30 different companies National Refrigerants Ability to reclaim and recycle ALL types of refrigerants 12
Slide 13: Positioned for Growth as Industry Dynamics Improve
Positioned for Growth as Industry Dynamics Improve Largest reclaimer with infrastructure and proprietary processes in place Strategic Acquisitions Amid Market Further Penetrate Consolidation Reclaim Market • Fragmented refrigerant Drive Refrigerant • Leading market share and reclamation market Sales
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