Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Non-Deal Roadshow (May 2021)
23 slides from Clean Harbors's roadshow presentation, May 13, 2021
Slide 1: Berenberg Capital Non-Deal Roadshow
Berenberg Capital Non-Deal Roadshow May 13, 2021
Slide 2: Forward Looking Statements and GAAP Disclaimer
Forward Looking Statements and GAAP Disclaimer These slides contain (and the accompanying oral discussion will contain) forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "should," "estimates," "proje
Slide 3: Mission
Mission “Create a Safer, Cleaner Environment Through the Treatment, Recycling and Disposal of Hazardous Materials” 3
Slide 4: Company Snapshot
Company Snapshot ▪ In North America: - Largest hazardous waste disposal company - Largest collector, recycler and re-refiner of used oil - Leading provider of comprehensive environmental and industrial services ▪ Top 30 largest private motor carriers ▪ More than 300,000 customers including a majorit
Slide 5: Business Model
Business Model Gather Waste Transport Waste Transfer, Treat, Recycle Perform Services and Re-Refine Disposal and Waste Oil Technical Environmental Services Services Industrial Services Field Services Safety-Kleen Environmental Safety-Kleen Sustainability Solutions 5
Slide 6: Broad Asset Infrastructure
Broad Asset Infrastructure ▪ More than 100 Waste Management Facilities - 9 Incinerators - 9 Landfill Sites - 27 Treatment, Storage & Disposal Facilities (TSDFs) - 8 Solvent Recycling Facilities - 9 Wastewater Treatment Operations - 7 Re-refineries • More than 10,000 Company Vehicles 6
Slide 7: Expansive Service Network
Expansive Service Network LEGEND CLEAN HARBORS SAFETY-KLEEN 7
Slide 8: Market Diversification – Top Industries Served
Market Diversification – Top 10 Industries Served 2017 2018 2019 2020 Manufacturing 16% 17% 16% 17% Chemical 13% 14% 14% 15% Automotive Service/Repair 8% 7% 8% 9% Refineries 9% 8% 9% 8% Base and Blended Oils 8% 8% 7% 6% Government 7% 6% 6% 5% Transportation 4% 4% 4% 5% Utilities 5% 5% 5% 4% Construc
Slide 9: Reporting Segments
REPORTING SEGMENTS ~~. 40 YEARS OF SUSTAINABILITY IN ACTION 9 (leanHarbors | 4O0res
Slide 10: Environmental Services
Environmental Services TSDFs and Business Drivers Plants Landfills & Wastewater ▪ GDP and industrial production Skilled Labor & ▪ Regulation and compliance Transportation ▪ Demand for turnarounds Incineration Industrial ▪ Emergency Response events Services ▪ Vehicle miles traveled SK Environmental F
Slide 11: COVID-19 Response Work
COVID-19 Response Work ▪ First-mover advantage; capitalized on existing ER reputation ▪ Generated $28 million in Q1; $120M in 2020 ▪ More than 18,000 responses as of today; opening doors to customer relationships ▪ Varied locations: retail stores, offices, hospitals, warehouses, manufacturing plants
Slide 12: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions Business Drivers ▪ Regulation and compliance ▪ Crude oil pricing Base Oil ▪ Base oil market demand Blended Oils ▪ Vehicle miles traveled ▪ Industrial production ▪ Closed loop offering - OilPlus® CFO Refinery Byproducts & Other Services Key Metrics ▪ Average UMO
Slide 13: Sustainability at Clean Harbors
Sustainability at Clean Harbors ▪ First-ever sustainability report issued in early 2021 ▪ Demand from our customers for more sustainable and “green” solutions is rapidly growing, especially among government and public entities ▪ Potential financial benefits beyond increased sales include cost saving
Slide 14: Sustainability – ESG Report
Sustainability – ESG Report 14
Slide 15: Safety-Kleen OilPlus Closed Loop
Direct Lubricant Sales Model UMO Terminals UMO Collection Re-refineries Safety-Kleen OilPlus® Customers Closed Loop Blending & Packaging Renewable Lubricants Delivery Distribution Centers 15
Slide 16: Corporate Strategy
B 40 YEARS OF SUSTAINABILITY IN ACTION 16 CORPORATE | STRATEGY (leanHarbors | 4O0res
Slide 17: Growth Strategies
Growth Strategies Expand Offerings and Geographic Coverage Execute Cost, Pricing and Productivity Initiatives Pursue Acquisitions and Divestitures Add Network Capacity Cross-Sell Across the Businesses 17
Slide 18: Capital Allocation Strategy
Capital Allocation Strategy ▪ Four key elements: Organic Acquisitions Share Debt Growth & Repurchases Repayment Investments Divestitures ▪ Invest capex to drive growth ▪ Evaluate acquisition and divestiture opportunities ▪ Execute buyback plan ▪ Assess current debt structure 18
Slide 19: Financial Overview
TITLE FINANCIAL OVERVIEW July 7, 2020 19
Slide 20: Summary of Q1 Results
Summary of Q1 Results ▪ Revenue of $808.1M – ahead of expectations; Down 6% YoY reflecting pandemic-related impact; up sequentially from Q4 ▪ GAAP EPS of $0.39 and Adjusted EPS of $0.42 ▪ Adjusted EBITDA* increased to $129.5M, including $5.4M from government pandemic relief programs; Adjusted EBITDA
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights 3/31/21 12/31/20 Cash and securities $570.7M $571.0M Billed & unbilled receivables $675.4M $667.2M Inventories and supplies $219.5M $220.5M Current and long-term debt $1,556M $1,557M Accounts payable $213.4M $195.9M Environmental liabilities $205.4M $202.7M 21
Slide 22: Historical Adjusted Free Cash Flow
Historical Adjusted Free Cash Flow TTM (USD $ in millions) 2017 2018 2019 2020 3/31/21 Cash Flow from Operations $285.7 $373.2 $413.2 $430.6 $499.9 Capital Expenditures, net of disposals (159.9) (177.9) (204.7) (186.6) (146.4) Purchase and capital improvements of 21.1 corporate headquarters Tax liab
Slide 23: Questions?
QUESTIONS? 23