Slide 1: Q4 and Full Year 2023 Earnings Call
Perimeter Solutions SA Q4 and Full Year 2023 Earnings Call February 22, 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 Our Objective Goal Strategy Deliver private equity like returns Own, operate, and grow uniquely high- with the liquidity of a public market quality businesses Target Economic Criteria ✓ Recurring and predictable revenue streams ✓ Long-term secular growth tailwinds ✓ Products that accou
Slide 4: Value Drivers
Value Drivers Productivity Profitable New and Cost Value Based Business Pricing Capital Allocation Improvements International Fire Safety M&A Opportunity Rigorous value-based Annual cost Other M&A pricing methodology improvements to Share buybacks across customers Prevention & offset inflation & pro
Slide 5: Q4 and Full Year 2023 Financial Summary
Q4 and Full Year 2023 Financial Summary Fire Safety ($000) Q4 '22 Q4 '23 % Change FY '22 FY '23 % Change Revenue 19,573 35,390 81% 226,583 225,554 0% Adjusted EBITDA (3,883) 7,005 280% 77,365 76,214 -1% Adjusted EBITDA Margin -20% 20% 34% 34% Specialty Products ($000) Q4 '22 Q4 '23 % Change FY '22 F
Slide 6: Long-Term Assumptions
Long-Term Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$10M annually Tax Rate ~26%(1) Capital Expenditures ~$10-15M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~146.5M(2) (1) Excluding impacts from purchase accoun
Slide 7: Appendix
777 Solutions That Save.
Slide 8: Diluted Share Count
Diluted Share Count FY-23 Category Shares (M) Dilutive impact of performance- based stock options and Wtd. Avg. Basic Shares Outstanding 154.7 warrants Dilutive impact of shares 1 Performance-Based Options and Warrants 0.0 issuable under the Fixed Annual Advisory Amount between Q1 2024 and Q1 2028 2
Slide 9: Long-Term Growth Track Record
Long-Term Growth Track Record 600 ($M) 45% 2010A – 2023A CAGRs 40% 500 Revenue: Adj. EBITDA: (1) 35% 9% 11% 400 30% 25% 300 20% 200 15% 10% 100 5% - 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj. EBITDA Revenue Adj. EBITDA % Capex % NA NA NA NA NA 1.8% 1.2% 1.3% 1.7% 3
Slide 10: Target Economic Criteria
Target Economic Criteria Criteria Commentary • Best in class metrics around long-term customer retention and growth Recurring and Predictable Revenue Streams • NA fire season introduces near-term variability, though dampening with growth in prevention/protection and geographic diversification • ~10%
Slide 11: Positioned for Continued Market Leadership
Positioned for Continued Market Leadership Product • Extensive performance, safety, and environmental testing driven by stringent regulatory and qualification requirements Qualification of the U.S. Forest Service • Perimeter provides a comprehensive, integrated product and service offering • Perimet
Slide 12: 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 13: Incentive Alignment
Incentive Alignment • Approximately 11.2M stock options outstanding to management, employees, and directors • Vest ratably over five years based on intrinsic share price growth • Founder Advisory Agreement pertaining to the EverArc Founders • Fixed Annual Advisory Amount equal to 1.5% of 157,137,410
Slide 14: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Adjusted EBITDA ($000) Q4 '22 Q4 '23 FY '22 FY '23 Income (loss) before income taxes (65,133) (17,334) 97,227 61,583 Depreciation and amortization 16,259 16,362 65,795 64,855 Interest and financing expense 10,003 10,440 42,585 41,378 Founders advisory fees -
Slide 15: 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