U.S. Silica Citi 2016 Global Energy & Utilities Conference Boston, MA May 11, 2016
THE U.S. SILICA STORY Best Positioned for Success in an Evolving Energy Market Business Market Competitive Balance Model Responsiveness Advantages Sheet Resilient Fast Strong Best 3
AT A G L A N C E U.S. Silica Strength in Numbers SLCA share of raw frac sand market 20% Market positions in ISP 1 or 2 Operating facilities 17 Products in development 40 O&G volumes sold to top 2 largest customers 48%…
THE U.S. SILICA STORY Best Positioned for Success in an Evolving Energy Market 1 Resilient business model 2 Financial strength and flexibility 3 The right strategy to win 5
Built for Success Through Business Cycles Attractive customer Strong mix financial position Low cost producer Robust logistics network Diversified business Scale and efficiency Strong, sustainable, competitive…
With Diversified End Markets ISP REVENUE 213M TOTAL COMPANY REVENUE 6% 643M 16% 8% 38% O&G ISP 33% 10% 22% FY 2015 Glass Building Products Foundry Chemical Fillers & Extenders Filtration 7
And Aligned with Blue Chip Customers Oil and Gas Customers: Working with our loyal customers through the downturn Oil & Gas Focused on selling more to the fairway players Proppants Top five customers 50 year relationships…
THE U.S. SILICA STORY Best Positioned for Success in an Evolving Energy Market 1 Resilient business model 2 Financial strength and flexibility 3 The right strategy to win 9
Best-in-Class Financial Position Overhead reductions Laser focused on costs Transportation optimization Operational efficiencies Managing working capital Reducing capital expenditures Driving cash flows Goal to be operating cash…
Fortified by a Successful Equity Offering SLCA Logical Consolidator Public offering of 10 million shares Net proceeds of 186.2 million Offensive capital raise to pursue accretive M&A Opportunity-rich 30% Top 10: smaller…
Making the Best Balance Sheet Even Stronger 1,491 No significant debt maturities 1,500 Term loan is covenant lite 1,234 1,250 Market Cap War chest of 470 million in cash and cash equivalents 1,000 Net Debt Balance sheet provides…
THE U.S. SILICA STORY Best Positioned for Success in an Evolving Energy Market 1 Resilient business model 2 Financial strength and flexibility 3 The right strategy to win 13
Strategy Scorecard Capture share Partner with the right customers Take out costs Launch new products Get faster and more flexible Improve the customer experience Maintain our strong balance sheet Next meaningful M&A…
2016 Strategic Initiatives Carefully manage our cash Continue laser focus on costs Increase speed and flexibility Reduce complexity, easiest to do business with Drive industry consolidation Become the clear market…
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