Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (April 2021)
16 slides from Hudson Technologies's investor presentation, April 2021
Slide 1: Investor Presentation April 2021
INVESTOR PRESENTATION APRIL 2021
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Slide 3: Our Business: Serving All Refrigerant Markets By Providing a Sustainable Solution
OUR BUSINESS Serving All Refrigerant Markets By Providing a Sustainable Solution Hudson's multifaceted solutions support the circular economy of refrigerants and reduce the industry's carbon footprint: • Reclamation: Net zero Global Warming Potential (GWP) solution that displaces virgin production •
Slide 4: Investment Considerations
INVESTMENT CONSIDERATIONS Large Embedded at • Provider to HVAC supply houses which serve Market • Refrigerant is the critical chemical used in Key Points In residential/light commercial market Opportunity air conditioning and refrigeration systems Supply Chain • Directly supply contractors and end-u
Slide 5: National Presence
NATIONAL PRESENCE • Diverse customer base: - 7,000+ customers • 40+ facilities and stocking points • 3 reclamation facilities Corporate Office • One of few companies with Reclamation Centers Stock Points AHRI certified laboratories Government Fulfillment Center 5
Slide 6: Energy Efficiency & Climate Concerns Drive Refrigerant Evolution
ENERGY EFFICIENCY & CLIMATE CONCERNS DRIVE REFRIGERANT EVOLUTION CFCs HCFCs HFCs HFOs Chlorofluorocarbons Hydrochlorofluorocarbons Hydrofluorocarbons Hydrofluoroolefins Ozone Depleting (ODP) 1.0 0.1 ~0 ~0 Global Warming Potential 8000 2000 2000 <1 Recently passed American Innovation and Manufacturin
Slide 7: AIM Act Mandates Virgin HFC Phasedown; Driving Demand for Reclaimed HFCs
AIM ACT MANDATES VIRGIN HFC PHASEDOWN; DRIVING DEMAND FOR RECLAIMED HFCS EPA To Implement Virgin Production Step Down 7
Slide 8: HFC Opportunity Significant & Growing
HFC OPPORTUNITY SIGNIFICANT & GROWING • HFC installed base growing at ~5% annually – Estimated installed base of >100 million HFC systems in 2020 – Reclaimed HFCs: 6M pounds in 2019 – With phase down schedule, reclaimed HFCs expected to grow to 40M pounds to meet demand due to virgin supply gap in 2
Slide 9: Strategically Positioned in Supply Chain
STRATEGICALLY POSITIONED IN SUPPLY CHAIN • Leading source for refrigerants (CFC, HCFC, HFC, HFOs) – Providing all refrigerants: HFCs & next generation as well as legacy via reclamation – Longstanding customer relationships • Embedded at two key points in supply chain • Hudson leverages sales network
Slide 10: Large DoD Contract: Expanded Products & Services
LARGE DOD CONTRACT: EXPANDED PRODUCTS & SERVICES Department of Defense Contract With Maximum Value of $400M Over 10 Years – 5-Year contract with 5-year renewal option from the U.S. Defense Logistics Agency (“DLA”); finishing fifth year with an exceptional rating in all categories • Fixed price contr
Slide 11: Reclamation Opportunity
Reclamation Opportunity As R-22 Opportunity Begins to Sunset, HFC Opportunity is Introduced 11
Slide 12: R-22 Market Opportunity Continues
R-22 MARKET OPPORTUNITY CONTINUES • Virgin R-22 Production Ceased as of December 31, 2019 – 2021 and beyond: Reclaimers will provide 100% of R-22 • Despite Elimination of Virgin Production, Aftermarket Demand Expected to Continue for Approximately 20 Years – ~50 million residential & light commercia
Slide 13: HFC Opportunity Begins
HFC OPPORTUNITY BEGINS • AIM Act Initiates HFC Phase Down • R-22 Phase Down Took Over 15 Years to Create Shortage • AIM Act Creates Shortage in Just 2.5 Years 13
Slide 14: Refrigerant Supply Chain 2020 & Beyond
REFRIGERANT SUPPLY CHAIN 2020 & BEYOND Supply End Customer ~20% virgin New (Virgin) Gas gross margin • Residential Honeywell Homes Chemours Arkema • Light ~50% reclaim Commercial gross margin • Industrial Reclaimed Gas • 24/7 Cooling (Supermarkets, Chemical Plants) Dirty Gas Returned to Hudson Becom
Slide 15: A Leader in the Fragmented Reclamation Market
A LEADER IN THE FRAGMENTED RECLAMATION MARKET Hudson captures approximately 35% of the reclaim market Ability to Reclaim Other ~30 different and Recycle ALL companies Types of Refrigerants National Refrigerants 15
Slide 16: Positioned for Growth as Industry Evolves
POSITIONED FOR GROWTH AS INDUSTRY EVOLVES Leverage Scale to Drive Refrigerant Sales – Supplying the marketplace through a comprehensive portfolio of legacy, current and next generation refrigerants Extend Penetration of the Reclaim Market – Largest reclaimer with infrastructure and proprietary proce
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