Slide 1: Perimeter Solutions SA Q3 2024 Earnings
Perimeter Solutions SA Q3 2024 Earnings November 12, 2024
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 Exceptional Value Creation Our Businesses Strategy Goal Retardants/Suppressants/ Operational Value Drivers Fulfill our Mission Specialty Products Profitable New Business Mission Critical Function Productivity & Cost Improvement Deliver private-equity like Market Leadership Posi
Slide 4: Our Product Lines
Our Product Lines (1) (1) (1) Fire Retardants (48%) Fire Suppressants (22%) Specialty Products (30%) • Retardant slows, stops and prevents • Foam primarily used to fight flammable • P2S5 reduces wear / improves durability wildfire, typically applied via airtankers liquid fires (airports, refineries,
Slide 5: Retardants: Extreme Criticality
Retardants: Extreme Criticality Fulfilling the mission requires 100% reliability, 100% of the time Deployed globally, including: 5
Slide 6: Retardants: Extreme Complexity
Retardants: Extreme Complexity Never fail performance requirement in highly variable and unpredictable environments Stringent performance requirements… …amidst highly unpredictable environments • “Ready delivery status is defined as the ability to begin pumping Selected Airbases - Gallons by Year 1,
Slide 7: Retardants: Our Mission
Retardants: Our Mission successfully stopped the wildfire’s spread Only Perimeter’s comprehensive, fully integrated-solution, built over 60 years, can fulfill our customers’ critical mission 7
Slide 8: Suppressants: Our Mission
Suppressants: Our Mission Perimeter is the market leader in fluorine free foams, which are rapidly becoming the industry standard 8
Slide 9: Specialty Products: Our Mission
Specialty Products: Our Mission Perimeter owns >50% of OECD capacity in a highly specialized niche market 9
Slide 10: Adjusted EBITDA Growth Track-Record
Adjusted EBITDA Growth Track-Record Adjusted EBITDA ($M) $300M $259 $250M $200M $150M $136 $141 $127 $125 $114 $97 $100M $85 $70 $59 $57 $62 $43 $48 $50M $25 $0M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTM (1) US Acres ex-AK (M) 8.9 9.1 10.1 10.0 8.4 8.2 6.9 7.4 4.9 5.0
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities Priority Support our customers’ mission Capex Drive Profitable New Business and Productivity through high-return projects M&A Acquiror advantage stems from Value Drivers implementation Share Repurchase shares when presented with compelling opportunities Buybacks
Slide 12: Q3 and YTD 2024 Financial Summary
Q3 and YTD 2024 Financial Summary ($000) Q3 '23 Q3 '24 y/y YTD '23 YTD '24 y/y Fire Safety Revenue 118,280 251,845 113% 190,164 375,538 97% Adjusted EBITDA 56,038 157,479 181% 69,209 212,877 208% Adjusted EBITDA Margin 47% 63% 36% 57% Specialty Products Revenue 24,378 36,572 50% 72,489 99,199 37% Ad
Slide 13: Long-Term Assumptions
Long-Term Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$10M annually Tax Rate ~26%(1) Capital Expenditures ~$10-15M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~145.2M(2) (1) Excluding impacts from purchase accoun
Slide 14: Senior Secured Notes
Attractive Debt Profile, Ample Liquidity $800M Maturity Schedule $700M $675M $600M Debt $500M 5% fixed rate Senior Secured Notes $400M $300M $200M $100M $0M $0M $0M $0M $0M $0M 2024 2025 2026 2027 2028 2029 • NO financial maintenance covenants • Ending 1.7x net debt to Adjusted EBITDA $ Liquidity •
Slide 15: Appendix
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Slide 16: Diluted Share Count
Diluted Share Count Dilutive impact of performance- based stock options and Category Q3-24 Shares (M) warrants (no impact for Q3-24 due to net loss during the Wtd. Avg Basic Shares Outstanding 145.2 period) 1 Performance-Based Options and Warrants 0.0 Dilutive impact of shares issuable under the Fix
Slide 17: Incentive Alignment
Incentive Alignment Stock Options • Approximately 15.1M stock options granted to management, employees, and directors are outstanding • Vest over five years based on intrinsic share price growth Founders Advisory Agreement (pertaining to the EverArc Founders) • Fixed Annual Advisory Amount equal to
Slide 18: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Adjusted EBITDA ($000) Q3 '23 Q3 '24 YTD '23 YTD '24 Income (loss) before income taxes 23,061 (44,090) 78,917 (96,792) Depreciation and amortization 16,276 16,444 48,493 49,215 Interest and financing expense 10,448 10,054 30,938 31,292 Founders advisory fees
Slide 19: Reconciliation of Non-GAAP Information
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-recurrin
Slide 20: 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