Enviri Corporation · NYSE:NVRI
Enviri — Investor Presentation (September 2022)
45 slides from Enviri's investor presentation, September 2022
Slide 1: Investor Presentation August - September 2022
Investor Presentation August - September 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Forward-Looking Statements The Com
Slide 3: Harsco Overview
Harsco Overview © 2022 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation.
Slide 4: Harsco Today
HARSCO TODAY Market leading provider of environmental solutions for industrial and specialty waste streams and innovative technologies, serving industries that are fundamental to global growth Strategic shift towards higher-growth and less-cyclical businesses with attractive margins FY 2021 Revenue
Slide 5: Historical Perspective
HISTORICAL PERSPECTIVE Harsco transformation: Simplify the Increase scale and Shift to less Unlock value and portfolio capabilities in cyclical, capital- drive potential re- environmental light businesses rating over time solutions with attractive growth potential May 2018 May 2019 June 2019 July 20
Slide 6: Harsco Environmental
HARSCO ENVIRONMENTAL MAKING A WORLD OF DIFFERENCE™ To our customers, our sites, our communities, our environment, and our people $1.1B 2021 Revenue Serving ~70 30+ 150+ ~25% Customers Countries Sites of global LST1 (1) Excludes China, CIS, Iran, Japan, South Korea, Taiwan and Vietnam steel output. ©
Slide 7: Harsco Environmental – A Global Market Leader
HARSCO ENVIRONMENTAL – A GLOBAL MARKET LEADER ENVIRONMENTAL & MATERIALS MANAGEMENT & SERVICES RESOURCE RECOVERY (ZERO WASTE) PRODUCT SOLUTIONS VALUE DRIVERS Critical services for metal production and Long-term contracts and multi-decade relationships environmental solutions that create value from wa
Slide 8: Harsco Environmental – Ecoproducts
HARSCO ENVIRONMENTAL – ECOPRODUCTS™ ADVANCED MATERIAL TECHNOLOGIES DELIVERING ZERO WASTE SOLUTIONS Steelphalt, UK Performix, US ALTEK Group, UK Excell, US THT, China India Reed Minerals, US Excell, Brazil ROOFING ROAD METALLURGICAL SOIL CEMENT SLAG ABRASIVES FERTILIZER ASPHALT GRANULES CONDITIONER P
Slide 9: Environmental Segment – Limited Volatility and Strong Cash Flow
ENVIRONMENTAL SEGMENT – LIMITED VOLATILITY AND STRONG CASH FLOW HARSCO ENVIRONMENTAL VS STEEL PRODUCERS – ADJUSTED EBITDA, HARSCO ENVIRONMENTAL ADJUSTED EBITDA TO US HRC PRICE ($/T), ANNUAL, INDEXED (%) ANNUAL, INDEXED (%) 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 FY 2016 FY
Slide 10: Clean Earth
CLEAN EARTH MAKING OUR EARTH CLEANER AND GREENER ™ Leading providers of environmental and regulated waste solutions in the United States $780M 2021 Revenue ~90 Permitted 19 500+ # of Total TSDF RCRA Facilities Part B sites Permits © 2022 Harsco Corporation. All Rights Reserved. This document and the
Slide 11: Clean Earth – Less Cyclical with Attractive Growth Potential
CLEAN EARTH – LESS CYCLICAL WITH ATTRACTIVE GROWTH POTENTIAL REVENUE MIX BY LINE OF BUSINESS KEY POINTS Soil - Dredge Environmental services with portfolio of valuable permits Materials 18% Diverse customers, across Industrial, Retail and Medical markets, with recurring and long-term customer ~$780M
Slide 12: Financial Strategy – Free Cash Flow and Reducing Leverage
FINANCIAL STRATEGY – FOCUSED ON STRENGTHENING FREE CASH FLOW AND REDUCING LEVERAGE Financial Strategy NET LEVERAGE ($M)1 5.0 x – Long term leverage ratio target of 3.0x or lower 2.9 x 1.8 x 2.4 x – Discipline capital allocation strategy 2015 2017 2019 Q2 2022 – M&A on hold ATTRACTIVE DEBT MATURITY P
Slide 13: Innovation Driven Growth
INNOVATION DRIVEN GROWTH A CULTURE GROUNDED IN SOLVING CUSTOMER NEED SUPPORTED BY BUSINESS DEVELOPMENT AND HOME-GROWN TECHNOLOGIES INSIGHT IDEA FILTERING & EVALUATION DEVELOPMENT EXECUTION • Solving environmental challenges & preserving natural resources • Achieving productivity & cost improvements
Slide 14: Growth Opportunities – Environmental
GROWTH OPPORTUNITIES – ENVIRONMENTAL White Space at Existing Sites RECENT CONTRACT WINS1 Targeted Pursuit of New Sites 43 # of Contract wins New and Expanded Environmental Product Solutions 141 Growth capital commitment ($m) (1) Contract wins since 2018 © 2022 Harsco Corporation. All Rights Reserved
Slide 15: Growth Opportunities – Clean Earth
GROWTH OPPORTUNITIES – CLEAN EARTH CE Active Permits1 Growing list of materials designated Market penetration as Hazardous and through new permits Contaminated and treatments 500+ Geographic expansion Permit modifications and expansions 220 137 42 Increased Fragmented maintenance and industry provid
Slide 16: Our ESG Vision & Strategy
OUR ESG VISION & STRATEGY Our ambition is to be an environmental, social and governance (ESG) leader in our industry We believe our long-term success depends not only on our financial performance, but also on our contributions to society and the value we deliver to our customers, employees, sharehol
Slide 17: 2021 ESG Highlights
2021 ESG HIGHLIGHTS 38 93% E Named to the 2022 Carbon Clean 200 list, New environmental of material processed recognizing Harsco’s solutions launched in by Clean Earth recycled recycling and carbon 2021 or repurposed in 2021 emissions reduction services 0.97 S Launched Harsco’s Named to global Diver
Slide 18: Positioned to Deliver Value Creation
POSITIONED TO DELIVER VALUE CREATION Capable management team FCF and value levers to with proven ability to strengthen capital optimize businesses structure ROIC-focused Well-positioned approach businesses to deliver earnings growth © 2022 Harsco Corporation. All Rights Reserved. This document and t
Slide 19: Q2 2022 Results
Q2 2022 Results HARSCO © 2022 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation.
Slide 20: CEO Perspective
CEO PERSPECTIVE – Second quarter impacted by extraordinary inflation at Clean Earth – Taking aggressive action to mitigate challenges, with more than $30M of price-cost actions implemented for 2H2022 in Clean Earth; engagement throughout organization is positive and CE expects to be neutral on infla
Slide 21: Q2 2022 Financial Summary
Q2 2022 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing – Revenues up 3%: HE +4%; CE +2% Operations Q2 2022 Q2 2021 Change Revenues, as reported 481 469 3% – Q2 2022 performance impacted by extraordinary inflation and FX Operating Income - GAAP (97) 26 nmf translati
Slide 22: Q2 2022 Environmental
Q2 2022 ENVIRONMENTAL SUMMARY RESULTS ADJUSTED EBITDA BRIDGE1 $ in millions $ in millions Q2 Q2 % 2022 2021 Revenues, as reported 278 273 2% Operating Income – 24 30 (22)% GAAP Adjusted EBITDA1 53 58 (9)% – Revenues increase compared with prior-year quarter due to higher demand for mill services and
Slide 23: Q2 2022 Clean Earth
Q2 2022 CLEAN EARTH SUMMARY RESULTS ADJUSTED EBITDA BRIDGE1 $ in millions $ in millions Q2 Q2 2022 2021 % Revenues, as reported 203 196 4% Operating Income – GAAP (112) 7 nmf Adjusted EBITDA1 5 18 (74)% – Revenues increase compared with prior-year quarter due to price and industrial volumes Adjusted
Slide 24: 2022 Outlook - Consolidated
2022 OUTLOOK - CONSOLIDATED3 2022 Outlook Prior 2022 Outlook 2021 Actuals GAAP OPERATING INCOME $(53)- (63)M $81 - 96M $88M ADJUSTED EBITDA1 $210 - 220M $250 - 265M $252M GAAP DILUTED EARNINGS PER SHARE $(1.58) - $(1.72) $0.02 - $0.10 $0.28 ADJUSTED DILUTED EARNINGS PER SHARE1 $0.00 - $(0.13) $0.35
Slide 25: Q3 2022 Outlook
Q3 2022 OUTLOOK2 YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: Adjusted EBITDA1 is expected to be between $54M - $59M Adjusted EBITDA modestly below prior-year quarter: FX and inflationary impacts partially Adjusted diluted earnings per share1 is offset by higher volumes and expected to be between new cont
Slide 26: Appendix
Appendix © 2022 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation.
Slide 27: Revenue Mix by Geography
REVENUE MIX BY GEOGRAPHY1 COMPANY APAC 10% Europe 43% ME & Africa 8% APAC 6% ME & Africa 4% Europe 25% Latin America 12% Latin America 7% North America 26% United States 100% North America 57% (1) FY21 Revenue © 2022 Harsco Corporation. All Rights Reserved. This document and the information set fort
Slide 28: 2022 Segment Outlook
2022 SEGMENT OUTLOOK Excluding unusual items 2022 VERSUS 2021 REVENUES Low single-digit YoY growth, excluding FX translation impacts ADJUSTED EBITDA1 $208M - $214M (margins stable YoY) + Services and ecoproduct demand growth, new contracts / sites TM DRIVERS - Exited contracts / sites, FX translatio
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation.
Slide 30: Non-GAAP Measures
NON-GAAP MEASURES Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-
Slide 31: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Diluted earnings (loss) per sha
Slide 32: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) (Continued from Previous Slide) a. Income recognized related to a gain on the repurchase of $25.0 milli
Slide 33: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE TO DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Twelve Months Ended December 31 2021 Diluted earnings per share from continuing operations as reported $ 0.28 Corp
Slide 34: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a) (Unaudited) Projected Projected Three Months Ending Twelve Months Ending September 30 December 31 2022 2022 Low H
Slide 35: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Consolidated (In thousands) Environmental Earth Corporate Totals Three Months Ended June 30, 2022: $ 23,547 $ (111,668
Slide 36: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Consolidated (In thousands) Environmental Earth Corporate Totals Three Months Ended June 30, 2021: Operating income (l
Slide 37: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended June 30 (In thousands) 2022 2021 Consolidated income (loss) from continuing operations $ (105,605)
Slide 38: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED LOSS FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Twelve Months Ended December 31 (In thousands) 2021 Consolidated loss from continuing operations $ 28,115 Add back (deduct): Equity in inco
Slide 39: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a) (Unaudited) Projected Projected Three Months Ending Twelve Months Ending September 30 December 31 2022 2022 (In millions) Lo
Slide 40: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF HARSCO CLEAN EARTH PROJECTED ADJUSTED EBITDA TO HARSCO CLEAN EARTH PROJECTED OPERATING INCOME (LOSS) (Unaudited) Harsco Clean Earth Projected Twelve Months Ending December 31 2022 (In millions) Low High Operating loss $ (110) $
Slide 41: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF HARSCO ENVIRONMENTAL PROJECTED ADJUSTED EBITDA TO HARSCO ENVIRONMENTAL PROJECTED OPERATING INCOME (Unaudited) Harsco Environmental Projected Twelve Months Ending December 31 2022 (In millions) Low High $ 88 $ 94 Operating incom
Slide 42: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2022 2021 2022 2021 $ 152,054 $ 36,703 $ 117,739 $ 13,530 Net cash provided by operating
Slide 43: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Twelve Months Ended December 31 (In thousands) 2021 Net cash provided by operating activities $ 72,197 Less capital expenditures (158,326) Less expenditure
Slide 44: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) (a) Projected Twelve Months Ending December 31 2022 (In millions) Low High Net cash provided by operating activities $ 240 $ 255 Less n
Slide 45: Harsco Corporation copyright notice
© 2022 Harsco Corporation. This document and its contents remain the property of Harsco Corporation. Any disclosure or copying of this document and its contents without the prior written approval of Harsco Corporation is prohibited. All Rights Reserved.