STIFEL 2019 CROSS SECTOR INSIGHT CONFERENCE Boston, MA June 11, 2019 A GLOBAL INDUSTRIAL MINERALS AND LOGISTICS LEADER
THE U.S. SILICA STORY A Successful Evolution Creating Sustainable Value 1 Transformation built from the customer backward Aligned strong capabilities to create sustainable customer value 2 New high margin products and niche…
AT A GLANCE U.S. Silica: A Profile of Leadership Record Adj. EBITDA Diversified The ONLY 393M in 2018 Profits1 Ground to ground supplier of proppant ISP CM 5-year CAGR 83% Growth in tons 2016 to 2018 22% Industrial 75%…
Agenda 1 Transformation built from the customer backward 2 New high margin products and niche logistics solutions 3 Balanced capital allocation plan with clear financial goals 5
WHERE WE ARE We have Transformed the Company FROM: TO: A Frac Sand Supplier with an An Industrial-focused Diversified Industrial Sand Business Minerals and Last-Mile Logistics Company 75% of profits expected from industrials and…
WHERE WE ARE Strong Capabilities to Create Sustainable Customer Value SANDBOX 2019E Total Company Leading last-mile logistics solution Contribution Margin1 Disruptive technology Significant IP Drives higher efficiency for…
Agenda 1 Transformation built from the customer backward 2 New high margin products and niche logistics solutions 3 Balanced capital allocation plan with clear financial goals 8
HOW WE GROW Robust Pipeline of Higher Margin ISP Products Unique Combination of Capabilities: Specialty coatings Heat treating Over 200 MILLION1 Fine grinding and sizing in new Custom blending products under development Ultra…
HOW WE GROW O&G Sand Becomes a Cash Generator to Propel Sandbox Growth Oil & Gas Sand Sandbox Logistics Generate Cash Gain Share & Grow Maximize flexibility by limiting long- Selectively target high-growth E&Ps term fixed costs…
Agenda 1 Transformation built from the customer backward 2 New high margin products and niche logistics solutions 3 Balanced capital allocation plan with clear financial goals 11
WHERE WE ARE HEADED Multiple EBITDA Growth Drivers 1. Sandbox market share expansion 2. New horizontals & verticals for Sandbox 3. Pipeline of new, higher margin ISP products 4. Regular price increases for Industrials 5.…
WHERE WE ARE HEADED Balanced Capital Plan & Priorities Base Business Invest in Generate Free Requirements Profitable Growth Cash Flow Attractive Minimal Flexibility ROIC Capital + + Buybacks and Significantly Maintenance…
WHERE WE ARE HEADED Increased Diversification/Strong Growth Estimated Future Business Profit Mix Growth Goals Stability By Source1 Bolt-On M&A O&G Sand +++ Double ISP Digit ISP Segment Annual ISP Segment Double…
THE U.S. SILICA STORY A Successful Evolution Creating Sustainable Value 1 Transformation built from the customer backward Aligned strong capabilities to create sustainable customer value 2 New high margin products and niche…
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