Slide 1: Third Quarter 2022 Investor Review
Third Quarter 2022 Investor Review November 2, 2022 1
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: Executive Management Changes
Executive Management Changes ▪ CFO Michael Battles and COO Eric Gerstenberg Promoted to Co-CEO Role ▪ Alan McKim to Become Executive Chairman of the Board and Chief Technology Officer ▪ Effective March 31, 2023 3
Slide 4: Summary of Q3 Results
Summary of Q3 Results ▪ Revenue of $1.36 billion – ahead of expectations; Up 43% YoY reflecting the addition of HPC, organic growth and pricing to offset inflation ▪ Net income more than doubled to $135.8 million; EPS of $2.50 and Adjusted EPS* of $2.43 ▪ Adjusted EBITDA* increased 67% to $308.6 mil
Slide 5: Environmental Services
Environmental Services $1,086.5 Q3 Performance ▪ Significant YoY increase in revenue driven by HPC acquisition, $745.6 broad-based service demand and need for disposal Revenue (in millions) + 46% ▪ Adjusted EBITDA up due to higher revenue and margin improvement. Margins benefiting from pricing to of
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $276.3 Q3 Performance $205.8 ▪ Revenue rose to record levels due to pricing of base oil and Revenue blended products, along with value of byproducts, vs. a year ago + 34% (in millions) ▪ Adjusted EBITDA and margin improvement driven by higher pricing, along with
Slide 7: Capital Allocation Strategy – Driven by ROIC
Capital Allocation Strategy – Driven by ROIC 1 2 ▪ Invest capex to drive organic growth Organic Growth Acquisitions Investments & Divestitures ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan 3 4 ▪ Assess current debt structure and Share Debt leverage Repurchase
Slide 8: Financial Overview
THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 8
Slide 9: Q3 Income Statement
Q3 Income Statement (in millions, except per share data) Q3 2022 Q3 2021 Revenues $1,363.1 $951.5 Cost of revenues $910.6 $639.2 Gross profit $452.4 $312.2 Gross margin % 33.2% 32.8% Selling, general and administrative expenses $151.7 $133.2 SG&A % 11.1% 14.0% Depreciation and amortization $88.4 $71
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 9/30/22 6/30/22 12/31/21 Cash and short-term marketable securities $514.1 $415.4 $534.3 Accounts payable $416.9 $409.2 $359.9 Billed and unbilled receivables $1,161.0 $1,139.7 $887.7 Current and long-term debt $2,525.5 $2,528.5 $2,534.6 Environmental liabilitie
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q3 2022 Q3 2021 (in millions) Cash from operations $225.6 $102.8 Capital expenditures, net of disposals ($94.4) ($41.7) Adjusted free cash flow* $131.2 $61.1 Share repurchases $10.5 $3.0 * Please refer to the appendix in this presentation for a reconciliation to the nearest GAAP
Slide 12: Guidance (as of November 2, 2022)
Guidance (as of November 2, 2022) Full-Year 2022 (in millions) Range Net Income $387 to $410 Adjusted EBITDA* $1,010 to $1,030 Net Cash from Operating Activities $585 to $635 Adjusted Free Cash Flow* $260 to $290 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EB
Slide 13: Appendix
APPENDIX THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income $ 135,799 $ 65,443 $ 329,270 $ 154,254 Accretion of environmental liabilities 3,246 2,799 9,5
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Adjusted net income Net income $ 135,799 $ 65,443 $ 329,270 $ 154,254 Gain on sale of business — —
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Adjusted free cash flow Net cash from operating activities $ 225,572 $ 102,794 $ 357,542 $ 368,226 Additions to property, pl
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2022 Projected GAAP net income $387 to $410 Adjustments: Accretion of environmental liabilities 13 to 12 Stock-based compensation 26 to 29 Depreciation and amortization 345 to 335 Gain on sale of business (9) to (9) Inte
Slide 18: Questions
Questions m= ff ~— THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY | leanHarbors
Slide 19: Investor Relations Contact (NYSE: CLH)
(NYSE: CLH) 42 Longwater Drive Norwell, MA 02061 Jim Buckley SVP, Investor Relations 781-792-5100 Email: Buckley.James@CleanHarbors.com www.cleanharbors.com 19