Perimeter Solutions (PRM) UBS Global Materials Conference summary

Business overview and market leadership

• Operates three leading businesses: Fire Retardants, Fire Suppressants, and Specialty Products, each with integrated product, equipment, and service offerings.

• Maintains clear market leadership in all segments, with a global footprint and high entry barriers due to complex chemistries and logistics.

• Fire Retardants account for about half of revenue, with end-to-end solutions including manufacturing, logistics, and airbase operations.

• Fire Suppressants business leads in fluorine-free foams, rapidly growing its installed base and aftermarket service potential.

• Specialty Products focuses on phosphorus pentasulfide, with a dominant market share in North America and Western Europe.

Value creation strategy and financial performance

• Applies a three-pronged value driver strategy: profitable new business, productivity improvements, and value-based pricing.

• Targets private equity-like returns, aiming for 15%+ long-term share price compounding.

• Achieved a 17% adjusted EBITDA CAGR over 14 years, with a 70% uplift in adjusted EBITDA since 2021 due to the value driver strategy.

• Consistently generates more free cash flow than can be reinvested, deploying excess to M&A, share buybacks, or special dividends.

• Maintains a strong debt profile with a single series of senior notes due 2029 and an undrawn $100 million revolver.

Growth drivers and operational excellence

• Fire Retardants business benefits from mid- to high-single-digit long-term volume growth, driven by increased acres burned and higher retardant usage per acre.

• International expansion and infrastructure investments, such as new airbases and mobile retardant bases, support growth and reliability.

• Suppressants business capitalizes on the market shift to fluorine-free foams, building a large installed base for recurring revenue.

• Specialty Products business doubled EBITDA in 2022 through value driver application, with strong unit economics despite volume fluctuations.

• Operational readiness includes maintaining high inventory levels and a comprehensive logistics network to ensure 100% reliability.