Slide 1: Perimeter Solutions SA Q2 2022 Earnings Call
Perimeter Solutions SA Q2 2022 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: 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 5: 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 6: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Fire Safety Q2 '22 YTD '22 Revenue Growth 16% 31% Adjusted EBITDA Growth 3% 11% Adjusted EBITDA Margin 36% 25% Specialty Products Q2 '22 YTD '22 Revenue Growth 15% 31% Adjusted EBITDA Growth 50% 74% Adjusted EBITDA Margin 33% 36% Consolidated Q2 '22 YTD '22 Revenue Growth
Slide 7: Q2 and YTD Financial Summary
Q2 and YTD Financial Summary Fire Safety ($000) Q2 '22 Q2 '21 YTD '22 YTD '21 Revenue 66,577 57,161 85,047 64,811 Adjusted EBITDA 24,219 23,478 20,885 18,832 Specialty Products ($000) Q2 '22 Q2 '21 YTD '22 YTD '21 Revenue 34,388 29,960 73,676 56,235 Adjusted EBITDA 11,463 7,667 26,774 15,423 Consoli
Slide 8: Modelling Assumptions
Modelling Assumptions Item Assumption Interest Expense ~$40M annually Tax-deductible D&A ~$10M annually Tax Rate ~26%(1) Capital Expenditures ~$10M annually Change In Working Capital ~10-20% of the Δ in revenue Current Basic Shares Outstanding ~163M (1) Excluding impacts from purchase accounting, tr
Slide 9: Diluted Share Count
Diluted Share Count QTD Category Shares (M) Dilutive impact of performance- based stock options and Wtd. Avg. Basic Shares Outstanding 162.9 warrants Dilutive impact of shares 1 Performance-Based Options and Warrants 0.0 issuable under the Fixed Annual Advisory Amount between Q1 2023 and Q1 2028 2 (
Slide 10: Supplementary Slides
Supplementary Slides
Slide 11: Long-Term Growth Track Record
Long-Term Growth Track Record ($m) Adj. EBITDA Revenue Revenue Adj. EBITDA Adj.Adj. EBITDA Margin EBITDA Margin 600 2010A – 2021A CAGRs 45% 40% Adj. EBITDA: 500 Revenue: 11% 17% (1) 35% 400 30% 25% 300 20% 200 15% 10% 100 5% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capex % NA
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 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 14: 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 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 ($m) Total Fire Suppres
Slide 15: Wildfire severity and suppression spend increasing globally
Long-Term Fire Safety Volume Growth Wildfire severity and suppression spend are increasing globally Australia Overview Chile Overview ▪ Australia’s annual federal spend on aerial firefighting has steadily ▪ The number of forest fires in Chile has increased over the last two increased over the past 1
Slide 16: Critical Service Representing a Fraction of Spend
Critical Service Representing a Fraction of Spend Retardant is the active ingredient, and a critical component, in wildfire fighting, but represents ~3% of suppression costs Fire Retardant as a % of Federal Suppression Spend Fire Retardant as a % of California Suppression Spend Retardant Retardant S
Slide 17: Operating Principles
Operating Principles 1 Provide customers with high-value products and exceptional service 2 Maintain a decentralized and autonomous organization structure 3 Implement a compensation system that closely aligns management with shareholders 4 Follow our value-based operating methodology based on our th
Slide 18: Incentive Alignment
Incentive Alignment • Approximately 10.2M stock options issued to management, employees, and directors • Vest ratably over five years based on intrinsic share price growth • Founder Advisory Agreement pertaining to the EverArc Founders • Fixed Annual Advisory Amount equal to 1.5% of 157,137,410 Ordi
Slide 19: Appendix
Solutions That Save.
Slide 20: Non-GAAP Financial Metrics (Consolidated)
Non-GAAP Financial Metrics (Consolidated) Adjusted EBITDA ($ '000) Q2 '22 Q2 '21 YTD '22 YTD '21 Income (loss) before income taxes $ 6,631 $ (3,951) $ 34,210 $ (27,863) Depreciation and amortization 16,715 15,235 33,086 30,381 Interest and financing costs 12,142 8,040 22,638 15,891 Founders' advisor
Slide 21: 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