Perimeter Solutions, Sa · NYSE:PRM
Perimeter Solutions, Sa — UBS Global Materials Conference 2024
28 slides from Perimeter Solutions, Sa's conference presentation, Sep 4, 2024
Slide 1: UBS Global Materials Conference September 4, 2024
UBS Global Materials Conference September 4, 2024
Slide 2: Forward-looking statements
2 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 future perfor
Slide 3: Three Key Messages
3 Three Key Messages Attractive Businesses Value Creation Strategy Our Goal Retardants/Suppressants/ Specialty Products ▪ Market Leadership Positions ▪ Challenging Markets to Serve o Critical Products Serving Demanding End-Markets o Complex Chemistries o Tightly Integrated Product / Equipment / Serv
Slide 4: Our Product Lines
4 Our Product Lines Function Leadership Growth • Retardant slows, stops and prevents wildfire, typically applied via airtankers • P2S5 reduces wear / improves durability in lubricating oils, and other niche uses • Foam primarily used to fight flammable liquid fires (airports, refineries, etc.) • Mar
Slide 5: Retardants: Our Mission
5 Retardants: Our Mission We save lives, property, and the environment successfully stopped the wildfire’s spread
Slide 6: Retardants: Extreme Criticality
6 Retardants: Extreme Criticality Fulfilling the mission requires 100% reliability, 100% of the time Deployed globally, including:
Slide 7: Retardants: Extreme Complexity
7 Retardants: Extreme Complexity • “Ready delivery status is defined as the ability to begin pumping and loading operations within 3 minutes after an order is placed.” • “Contractor must deliver retardant as specified herein within 24 hours of receipt of an order.” Never fail performance requirement
Slide 8: Integrated Solution To Complex Challenge
8 Integrated Solution To Complex Challenge Manufacturing & Distribution Inventory Comprehensive Airbase Footprint Base Infrastructure Research & Development Mobile Infrastructure Extreme Criticality Extreme Complexity Only our comprehensive, fully integrated-solution, built over 60 years, can fulfil
Slide 9: What It Takes: R&D
9 What It Takes: R&D Industry approvals require multi-year internal-development programs, followed by multi-year customer testing protocols in the lab and field, prior to qualification After obtaining a Qualified Product Listing and then passing an Operational Field Evaluation, a retardant product i
Slide 10: What It Takes: Manufacturing & Distribution
10 What It Takes: Manufacturing & Distribution USA 1. Rancho Cucamonga, CA 2. McClellan, CA 3. Moreland, ID 4. Post Falls, ID 5. Pasco, WA Canada 6. Kamloops, BC 7. Sturgeon County, AB Europe 8. Aix en Provence, France Australia 9. Lavington, NSW Manufacturing Facilities: Mission requires localized
Slide 11: What It Takes: Inventory
11 What It Takes: Inventory We enter each fire season prepared for volatility – including record seasons Note: $143M is the three-year average of total company inventory on 6/30 of each year; US Acres Burned 2024 is YTD through Aug 28 $143M average annual investment in inventory -8,000,000 -6,000,00
Slide 12: What It Takes: Comprehensive Base Footprint
12 What It Takes: Comprehensive Base Footprint Perimeter owns much of the airbase infrastructure and equipment across our footprint Perimeter supports 200+ airtanker bases globally
Slide 13: What It Takes: End-to-End Airbase Infrastructure
13 What It Takes: End-to-End Airbase Infrastructure Perimeter handles airbase operations from end-to-end: design, construction, equipment ownership, maintenance, inventory, and staffing A single airbase can cost over $3M to fully develop Note: capital expenditures plus pre-opening expenses SolidWork
Slide 14: What It Takes: Extensive Mobile Infrastructure
14 What It Takes: Extensive Mobile Infrastructure Our global fleet of mobile bases allows us set-up in the most remote of locations in a matter of hours to support our customers with 100% reliability 100% of the time A mobile base costs up to $2.0M; can deploy to 35 different sites simultaneously No
Slide 15: What It Takes: Perimeter Solutions
15 What It Takes: Perimeter Solutions Nothing short of Perimeter’s comprehensive offering fulfills the mission: Save Lives, Protect Property, 100% Reliability To build Perimeter today would take enormous investment over many years Manufacturing & Distribution Inventory Comprehensive Airbase Footprin
Slide 16: Critical Service Representing a Fraction of Spend
16 Critical Service Representing a Fraction of Spend 3% 97% Retardant Offering as % of Federal US Suppression Spend Retardant Other Retardant is the active ingredient, and a critical component, in wildland firefighting, yet represents ~3% of suppression costs Note: Perimeter cost to Federal governme
Slide 17: Secular Drivers Support Increased Retardant Use
17 Secular Drivers Support Increased Retardant Use Capacity/Usage GrowthAcres Burned Growth ▪ Growth in the Wildland Urban Interface ▪ Growth in the global airtanker fleet ▪ Growth in airtanker base infrastructure ▪ Ground applied opportunity ▪ International market expansion 0 1,000,000 2,000,000 3,
Slide 18: Global Market Presence
18 Global Market Presence PRM Plant • Market leader in fluorine-free foams and associated systems quickly becoming industry standard • Perimeter operates globally, with facilities in the US, Europe, the Middle East, and Australia Integrated Product, Equipment, & Service Offering R&D Manufacturing Se
Slide 19: Suppressants Financial Snapshot
19 Suppressants Financial Snapshot $35 $34 $42 $50 $70 $0M $10M $20M $30M $40M $50M $60M $70M $80M 2019 2020 2021 2022 2023 Revenue ($M) Perimeter Product Mix Building a large installed base in a largely “razor – razorblade” business 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2020 2021 2022 2023 Gr
Slide 20: Localized Markets w/ Limited Competition
20 Localized Markets w/ Limited Competition PRM Plant Competitor 1 Competitor 2 • Perimeter operates predominately in OECD markets • One main competitor in each of the US and the EU • Perimeter owns >50% of installed OECD capacity • New build cost > $250M, permitting new plants highly unlikely, no n
Slide 21: Specialty Products Financial Snapshot
21 $17 $24 $24 $48 $21 $40 $0M $5M $10M $15M $20M $25M $30M $35M $40M $45M $50M 2019 2020 2021 2022 2023 2024E Specialty Products Financial Snapshot Substantial and sustainable Adjusted EBITDA improvement 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ICE Motor Oils Other Applications • Broad range of
Slide 22: Our Value Drivers
22 Our Value Drivers Profitable New Business Productivity & Cost Improvement Value-Based Pricing Capital Allocation Capital Structure Operational Value Drivers Capital Value Drivers Private equity-like returns: 15%+ annual share price appreciation
Slide 23: Adjusted EBITDA Growth Track-Record
23 Adjusted EBITDA Growth Track-Record $25 $43 $48 $59 $57 $70 $85 $127 $114 $62 $136 $141 $125 $97 $222 $0M $50M $100M $150M $200M $250M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E* Adjusted EBITDA ($M) 2.3 8.4 8.9 3.0 3.4 4.9 5.0 9.1 8.2 2.1 10.1 6.9 4.4 2.3 5.7 0.0
Slide 24: Capital Allocation Priorities
24 Capital Allocation Priorities ▪ Issue special dividends to sustain leverage vital for 15-20% equity returns ▪ Support our customers’ mission ▪ Drive Profitable New Business and Productivity through high-return projects ▪ Acquiror advantage stems from Value Drivers implementation ▪ Repurchase shar
Slide 25: Attractive Debt Profile
25 Attractive Debt Profile • $675M of 5% fixed-rate notes due October 2029 • NO current financial maintenance covenants $0M $0M $0M $0M $0M $675M $0M $100M $200M $300M $400M $500M $600M $700M $800M 2024 2025 2026 2027 2028 2029 Maturity Schedule S e n io r S e c u re d N o te s % Timing Cost $ Avail
Slide 26: Three Key Messages
26 Three Key Messages Attractive Businesses Value Creation Strategy Our Goal Retardants/Suppressants/ Specialty Products ▪ Market Leadership Positions ▪ Challenging Markets to Serve o Critical Products Serving Demanding End-Markets o Complex Chemistries o Tightly Integrated Product / Equipment / Ser
Slide 27: 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
Slide 28: Reconciliation of Non-GAAP Information
28 Reconciliation of Non-GAAP Information Non-GAAP Financial Metrics Adjusted EBITDA The computation of Adjusted EBITDA is defined as net income plus income tax expense, net interest and other financing expenses, and depreciation and amortization, adjusted on a consistent basis for certain non-recur
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