Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Investor Presentation (November 2023)
26 slides from Onterris's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023
Slide 2: Safe Harbor
Safe Harbor Statements contained herein and in the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be iden
Slide 3: Operating Overview
Operating Overview
Slide 4: Montrose at a Glance
Montrose at a Glance 25% $55M Est. 2012 IPO in 2020 Revenue CAGR(1) Adj. Operating Unique, High Growth Cash Flow(2,3) Environmental Solutions Company 17 $78M(4) ~3,500 Patents 2023E Consolidated Employees Adj. EBITDA(5) $615M(4) 27% 35% 2023E Revenue Consolidated Adj. Cross-Selling(6) EBITDA CAGR(1,
Slide 5: Investment Highlights
Investment Highlights Unique, vertically integrated Significant scale with global reach environmental company serving repeat client base Large TAM and secular tailwinds Consistent record of strategically and backed by regulatory and corporate financially accretive acquisitions initiatives coupled wi
Slide 6: What Does Montrose Environmental Group Do?
What Does Montrose Environmental Group Do? We Provide Integrated Environmental Solutions Focusing On: • Water treatment, access and quality • Energy transition (e.g., waste to renewable biogas) • Greenhouse gas measurement and mitigation/removal • Response and risk management related to environmenta
Slide 7: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Water Advisory Testing Remediation Renewable Response Treatment Climate Change & Event Driven Response ü ü ü ü ü ü Emerging Contaminant Regulation (e.g., PFAS) ü ü ü ü ü
Slide 8: Our Revenue is Resilient Due to Regulatory Underpinning and Diverse Customer Base
Our Revenue is Resilient Due to Regulatory Underpinning and Diverse Customer Base Revenue End Market Mix 2022 3.2% 0.6% 3.9% • Revenue retention is strong and consistent: clients generating Manufacturing 95%+ revenue in FY2021 Oil & Gas repeated in FY2022, consistent 8.2% 22.9% Fed / State / Local G
Slide 9: We Have Consistently Created Value for Our Shareholders
We Have Consistently Created Value for Our Shareholders Organic Earnings Growth (+) Strategically Additive Acquisitions (+) • Average annual organic revenue growth(1) of ~16% • Acquisitions represent a core part of growth since Montrose’s IPO in 2020 strategy within highly fragmented environmental i
Slide 10: R&D Creating Barriers To Entry and Long Term Organic Growth
R&D Creating Barriers To Entry and Long Term Organic Growth Montrose R&D at a Glance Montrose R&D Areas of Focus • 17 Patents Water Treatment Initiatives • PFAS: • 33 Patents in progress - Regenerable Ion Exchange (IX): Commercialized, patent-protected - Foam fractionation: Commercialized. • 3 Labor
Slide 11: Acquisitions Remain Core To Our Strategy and Highly Accretive
Acquisitions Remain Core To Our Strategy and Highly Accretive • Successfully completed five value-enhancing acquisitions in 2023 • Consistently targeted additive services, geographies, clients and technologies • Demonstrated ability to effectively integrate, cross-sell and create revenue and cost sy
Slide 12: Our Integrated Solutions are Helping Solve the World's Environmental Challenges
Our Integrated Solutions are Helping Solve the World’s Environmental Challenges
Slide 13: Working Across Montrose to Help Solve the Global PFAS Problem
Working Across Montrose to Help Solve the Global PFAS Problem Environmental Challenge: PFAS are widely used, long lasting chemicals components which break down very slowly over time in water, air and soil Remediation Outlook: PFAS remediation expenditures in the U.S. are estimated to surpass $160 bi
Slide 14: Working Across Montrose to Help Solve the Global GHG Problem
Working Across Montrose to Help Solve the Global GHG Problem Environmental Challenge: STEP #1 O&G industry’s operations represent 9% of human-made greenhouse gas Deep Understanding (GHG) emissions. Stakeholders, including the SEC's newly proposed climate And Working Knowledge change disclosure rules
Slide 15: Core Sustainability Principles
Core Sustainability Principles
Slide 16: Core Sustainability Principles & the Transition to a Low-Carbon Economy
Core Sustainability Principles & the Transition to a Low-Carbon Economy Core Sustainability Principles • Montrose supports the transition to a low carbon economy across our business lines, and with a variety of clients. In addition to delivering industry recognized solutions we also have a dedicated
Slide 17: Case Study: Montrose Impact on the Environment Through Business Solutions
Case Study: Montrose Impact on the Environment Through Business Solutions • The Montrose Carbon Conversion Process (CCP) uses a non-toxic, water-based solvent to remove and permanently sequester 99.99% Our CCP contributes to the availability of CO2 from process and combustion exhaust streams. The pr
Slide 18: Montrose's Commitment to Reducing Our Own GHG Impacts
Montrose’s Commitment to Reducing Our Own GHG Impacts Identify & Manage GHG Net Zero Climate- Reduction GHG Related Risks Targets Emissions NOW 2030 2040 • In addition to helping our • As part of this commitment, we • With the support of our clients identify and manage will also set near-term (e.g.,
Slide 19: MEG Positive Societal Impact
MEG Positive Societal Impact UN Sustainable Development Goal Alignment • As a leading environmental solutions company, we recognize UN SDG 3 – Good Health and Well-being, our role in solving the world’s and its target 3.4, reduce mortality from greatest environmental Clean Water and Sanitation and i
Slide 20: Financial Overview
Financial Overview © 2023 Montrose Environmental Group, Inc. Proprietary. 20
Slide 21: Strong Record of Long-Term Growth
Strong Record of Long-Term Growth Revenue Consolidated Adjusted EBITDA(2) 2019-2023E CAGR(1): 25% and excluding CTEH 22% 2019-2023E CAGR: 27% ($ in Millions, Dec FYE) ($ in Millions, Dec FYE) ~$615(3) $546 $544 ~$78(3) $73 $114 $66 $232 $52 $328 $234 $82 $431 $30 $315 $234 $246 2019 2020 2021 2022 2
Slide 22: Attractive Capital Structure
Attractive Capital Structure Commentary Equity Market Capitalization • Flexible balance sheet to pursue Preferred investments in innovation and acquisitions Equity in highly fragmented industry $182M(3) • Montrose has $148.2 million of liquidity, including $23.2 million of cash and $125.0 million of
Slide 23: Appendix
Appendix
Slide 24: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree • No fixed maturity date • Oaktree has the right to Capital purchased $175mm appoint one representative - Repayable in cash at Company’s of Series A-2 Preferred on the Montrose board of option (sub
Slide 25: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to our results under GAAP, in this presentation we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Consolidated Adj
Slide 26: Reconciliation of Net (Loss) Income to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net (Loss) Income to Consolidated Adjusted EBITDA (In thousands) Year Ended December 31, December 31, December 31, December 31, December 31, 2022 2021 (a) 2020 (a) 2019 (a) 2018 (a) Net loss $ (31,819) $ (25,325) $ (57,949) $ (23,557) $ (16,491) I
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