EP MINERALS ACQUISITION A rare combination of advantages and strengths March 23, 2018
Todays Participants Bryan Shinn President and Chief Executive Officer U.S. Silica Don Merril EVP and Chief Financial Officer U.S. Silica Gregg Jones President & Chief Executive Officer EP Minerals 3
EP Minerals Checks All the Boxes Three Key Advantages: Attractive market structure 1 Number one or number two player in each of its global markets Diverse Strong margins with exciting growth Company with 2 opportunities Rare…
EP Minerals Transaction Overview 750 million Cash consideration Financed with term loan debt, 2.4x pro forma net leverage Adjusted EBITDA Approx. 12.5X in line with comparable transactions multiple Reflects durable cash flows and…
EP Minerals: Overview Profile Key Metrics TTM February(1) Global leader in diatomaceous earth (DE), bentonite and perlite filter aids, absorbents and functional additives Revenue 242M 1 or 2 player in each of its global markets…
Diatomaceous Earth: A Million Years in the Making 7
Applications Overview: Diverse Markets, High Recurring Revenue Core Mission Low Cost- Applications Key End Markets Critical Recurring to-Value Food & Beverage DE / Filtration Absorbents Industrial, Medical, Perlite Agricultural…
ADVANTAGE 1 Attractive Market Structure Key Strengths Revenue by Geography 1 Market leader 1 or 2 player in each of its global markets Europe 16% 2 High barriers to entry N. America 72% 2017 Due to limited DE deposits and…
ADVANTAGE 2 Leading Cash Flow in Specialty Materials 2017 FCF EV / CY Yield (%)(1) 17 EBITDA Exciting Growth Drivers ISP 26% (2) Expect GDP+% organic EP Minerals 20% EBITDA growth CAGR over next 5 years Peer 1 21% 12x Vibrant…
ADVANTAGE 3 Reliable Cash Flow Complements Oil & Gas Contribution Margin (MM) 2017A 2017 Pro Forma ISP ISP 89 89 EP Total Total Minerals 391 480 89 302 302 Oil & Gas Oil & Gas Contribution Margin % 31.5% 32.5%…
IN SUMMARY Attractive Returns for Shareholders While Enhancing Financial Flexibility Platform Consistent growth business platform for new For Growth products and M&A Reduces Increases contribution from industrial GDP+ Cyclicality…
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