Slide 1: Perimeter Solutions SA Q1 2023 Earnings Call
Perimeter Solutions SA Q1 2023 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 Our Objective Goal Strategy Deliver private equity like returns with Own, operate, and grow uniquely high- 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 Speci
Slide 5: Q1 2023 Revenue and Adjusted EBITDA
Q1 2023 Revenue and Adjusted EBITDA Fire Safety Q1 '23 Revenue Growth 1% Adjusted EBITDA Growth -1% Adjusted EBITDA Margin -18% Specialty Products Q1 '23 Revenue Growth -36% Adjusted EBITDA Growth -58% Adjusted EBITDA Margin 26% Consolidated Q1 '23 Revenue Growth -24% Adjusted EBITDA Growth -74% Adj
Slide 6: Q1 2023 Financial Summary
Q1 2023 Financial Summary Fire Safety ($000) Q1 '23 Q1 '22 Revenue 18,744 18,470 Adjusted EBITDA (3,361) (3,334) Specialty Products ($000) Q1 '23 Q1 '22 Revenue 25,114 39,288 Adjusted EBITDA 6,477 15,311 Consolidated ($000) Q1 '23 Q1 '22 Revenue 43,858 57,758 Adjusted EBITDA 3,116 11,977 6
Slide 7: Long-Term Assumptions
Long-Term Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$10M annually Tax Rate ~26%(1) Capital Expenditures ~$10-15M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~158.5M(2) (1) Excluding impacts from purchase accoun
Slide 8: Diluted Share Count
Diluted Share Count Q1-23 Category Shares (M) Dilutive impact of performance- based stock options and Wtd. Avg. Basic Shares Outstanding 157.7 warrants Dilutive impact of shares 1 Performance-Based Options and Warrants 0.0 issuable under the Fixed Annual Advisory Amount between Q1 2024 and Q1 2028 2
Slide 9: Supplementary Slides
Supplementary Slides
Slide 10: Long-Term Growth Track Record
Long-Term Growth Track Record 600 ($M) 45% 2010A – 2022A CAGRs 40% 500 (1) Revenue: Adj. EBITDA: 35% 10% 13% 400 30% 25% 300 20% 200 15% 10% 100 5% - 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adj. EBITDA Revenue Adj. EBITDA % Capex % NA NA NA NA NA 1.8% 1.2% 1.3% 1.7% 3.8%
Slide 11: 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 12: 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 13: Long-Term Fire Safety Volume Growth
Long-Term Fire Safety Volume Growth Domestic wildfire suppression spend is growing Federal Fire Suppression Spend California Fire Suppression Spend 5,000 80,000 2,000 4,500 1985 – 2021 1985 – 2021 70,000 1,800 CAGR: 8% CAGR: 10% 4,000 1,600 60,000 Total Fire Suppression Spend ($m) Total Fire Suppres
Slide 14: Long-Term Fire Safety Volume Growth
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 15: 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 represents ~3% of suppression costs Fire Retardant as a % of Federal Suppression Spend Fire Retardant as a % of California Suppression Spend Retardant Retardant S
Slide 16: 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 17: Incentive Alignment
Incentive Alignment • Approximately 10.3M stock options granted 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 Ord
Slide 18: Appendix
‘Solutions That Save.
Slide 19: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Adjusted EBITDA ($000) Q1 '23 Q1 '22 Income before income taxes $ 3,109 $ 31,517 Depreciation and Amortization 16,087 16,371 Interest and financing costs 10,146 10,496 Founders' advisory fees - related party (24,236) (59,848) Non-recurring expenses 1,559 1,4
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