Covia: A Leading Diversified Mineral and Material Solutions Company Covia is a leading provider of advanced mineral-based material solutions across Industrial and Energy markets Industrial More than 19 million tons of capacity…
Unique Culture with Strong Focus on Safety Leading safety performance Clearly Covia Total Recordable Incident Rate 2018 Safety First 2.0 Benchmark Be Different CVIA 1.5 Deliver on Promise 1.0 Do Good. Do Well. Act 0.5…
Unique Competitive Advantages Size, Scale and Geography Distribution Network Technical Innovation Product and Market Diversity 5
Strength Through Diversity of Businesses, Geographies and Minerals 2015 - 2018 Pro Forma Volumes 2018 Pro Forma Industrial Revenues Geographies Canada Other Mexico United States Energy Industrial 55% 45% Minerals Feldspar…
INDUSTRIAL SEGMENT
A Diverse Mix of End Markets COATINGS & POLYMERS FOUNDRY CASTINGS Paints Architectural coatings Transport - auto, rail & aerospace Agricultural films CERAMICS Equipment construction Antiblock additives agriculture & mining Tiles…
Multiple Pathways to Capture Growth Mineral: Nepheline Syenite Largest reserves in North America Used primarily in glass, coatings & polymers and ceramics Plants Share gains from substitute minerals driving growth Industrial…
Why Customers Choose Covia Customer Knowledge Understanding customer needs and expectations to deliver total solutions Reliability & Consistent Quality Delivering the right product, at a consistent specification, at the right…
Resilient Industrial Segment Through Cycles Pro Forma Industrial Gross Profit In millions 250 200 150 100 50 0 2015 2016 2017 2018 1 Excludes gross profit generated by HPQ business Industrial margins resilient, even…
ENERGY SEGMENT
Energy Scale to Meet Demand Scale Matters Flexibility to scale production with market demand Ability to serve every basin from tier- 1 assets at industry-leading costs Substantial operating leverage Plants Energy Hybrid…
Tier 1 Proppant Asset Portfolio In-Basin Kermit, TX Wedron, IL Plants Crane,TX Utica, IL Tunnel City, WI Kasota, MN Oregon, IL Seiling, OK Primary Bakken, Mid-Con Permian, Midcon, Basin(s) Permian, Bakken, Rockies, Permian,…
Solutions for All Well Environments Resin Proppant Dust Mine Raw Sand Coated Transport Mitigation to Sand Well Size and Scale Local In-Basin Northern White Curable & Tempered Propel SSP DST Last Mile Well-located High-quality raw…
Higher Productivity from Northern White Northern white sand has the ability to better withstand formation stress, and therefore achieve better conductivity. 100 Mesh 6k Continuous Hold Conductivity Testing 350 Conductivity,…
Financial Transition Slide FINANCIALS and OUTLOOK
Financial Highlights Highlights Q1 2019 Industrial and Energy volumes squarely within guidance Sequential strengthening across both segments in March Q2 2019 Industrial and Energy volume outlook remains in-line with previous…
Repositioning for Energy Market Changes Millions of tons Active Energy Capacity Millions SG&A 30 60 18.4% decrease 25 Local sand 50 capacity to 51.5 meet customer 20 needs 40 42.0 15 30 NWS capacity 10 consolidated 20 into…
Q1 2019 Results In millions Industrial Energy Total Company Volumes (tons) 3.6 4.4 8.0 Revenue 192.2 236.1 428.2 Gross Profit 51.6 15.1 66.7 SG&A -- -- 42.04 Adjusted EBITDA -- -- 34.95 1 - Includes 0.5mm in purchase accounting…
Outlook Industrial Q2 2019 Volumes 3.8 million tons Energy Q2 2019 Volumes 5.0 to 5.3 million tons Total Company FY19 SG&A 160 - 170 million Includes 10mm in non-cash stock comp Capex 80 to 100 million 22
Focus on Cash Flows and Deleveraging Optimize Maximize Cash Reduce Net Debt Assets Flow Pathway to Net Debt Deleveraging Predictable Industrial business: 225 million gross profit in 2018 Advantaged Energy assets that have…
Appendix
Appendix: Non-GAAP Reconciliation Net Income (Loss) Information & Reconciliation to Non-GAAP Measures (unaudited) The following table reconciles EBITDA and Adjusted EBITDA, non-GAAP financial measures, to the most directly comparable…
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