Slide 1: Perimeter Solutions SA Q3 2021 Earnings Call
Perimeter Solutions SA Q3 2021 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 Goal Strategy Deliver private equity like returns Own, operate, and grow uniquely with the liquidity of a public market high-quality businesses Target Economic Criteria ✓ Recurring and predictable revenue streams ✓ Long-term secular growth tailwinds ✓ Products that account for critical
Slide 4: Perimeter: Target Economic Criteria
Perimeter: Target Economic Criteria Criteria Commentary • Best in class metrics around long-term customer retention and growth Recurring and Predictable • NA fire season introduces near-term variability, though dampening with growth in prevention/protection and Revenue Streams geographic diversifica
Slide 5: Perimeter Investment Framing
Perimeter Investment Framing Fire Safety Volume Growth MSD HSD Fire Safety Price Growth MSD Oil Additives Revenue Growth Flat Adj. EBITDA Margin Expansion 1%/yr 2%/yr Projected CAGR 20% 15% Range 10% Range 5% 0% Revenue Adj. EBITDA 5
Slide 6: Value Drivers
Value Drivers Productivity Profitable New and Cost Value Based Business Improvements Pricing Capital Allocation International Annual cost Rigorous value- Fire Safety M&A Opportunity improvements to based pricing Other M&A offset inflation methodology across Prevention & customers Share buybacks Prot
Slide 7: YTD Performance vs Expectations
YTD Performance vs Expectations YTD Adj. EBITDA Growth Performance vs Expectations Segment Fire Safety +13% Exceeded Oil Additives +4% In-Line Based on EverArc’s base case expectations as of H1 2021. 7
Slide 8: Key YTD Accomplishments
Key YTD Accomplishments • Met our commitments to our customers with 100% reliability; delivered every load and loaded every airtanker • Completed the qualification process for PHOS-CHEK® FORTIFY® • Continued the successful transition to PHOS-CHEK LCE20-Fx liquid concentrate retardant • Introduced se
Slide 9: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Fire Safety Q3 YTD Revenue Growth 14% 11% Adjusted EBITDA Growth 13% 13% Adjusted EBITDA Margin 57% 49% Oil Additives Q3 YTD Revenue Growth -1% 13% Adjusted EBITDA Growth -55% 4% Adjusted EBITDA Margin 11% 23% Consolidated Q3 YTD Revenue Growth 12% 12% Adjusted EBITDA Gro
Slide 10: Q3 and YTD Financial Summary
Q3 and YTD Financial Summary Fire Safety ($ '000) Q3 '21 Q3 '20 9M '21 9M '20 Revenue 172,445 151,083 237,256 213,916 Adjusted EBITDA 97,854 86,640 116,680 102,805 Oil Additives ($ '000) Q3 '21 Q3 '20 9M '21 9M '20 Revenue 22,969 23,176 79,204 69,842 Adjusted EBITDA 2,496 5,591 17,919 17,236 Consoli
Slide 11: 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 Shares Outstanding ~157M Year-end 2021 Net Debt ~$450M (1) Excluding impacts fr
Slide 12: Supplementary Slides
Supplementary Slides Solutions That Save.
Slide 13: Long-Term Growth Track Record
Long-Term Growth Track Record ($m) Revenue Adj.Adj. EBITDA EBITDA Adj. EBITDA Margin 700 2010A – 2020A CAGRs 45% 40% 600 Revenue: Adj. EBITDA: 12% 18% (1) 35% 500 30% 400 25% 300 20% 15% 200 10% 100 5% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Capex % NA NA NA NA NA 1.8% 1.2% 1.3%
Slide 14: Positioned for Continued Market Leadership
Positioned for Continued Market Leadership Product • Extensive performance, safety, and environmental testing driven by stringent regulatory and qualification requirements of the U.S. Qualification Forest Service • Perimeter provides a comprehensive, integrated product and service offering • Perimet
Slide 15: 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 16: 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 1,000 CAGR: 10% Total Fire Suppression Spend ($m) Total Fire Suppression Spend ($m) 2,5
Slide 17: Long-Term Fire Safety Volume Growth: Global Wildfire Severity
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 18: 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 19: 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 20: Appendix
Appendix Solutions That Save.
Slide 21: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics 21
Slide 22: 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