ADS Waste Holdings, Inc. Investor Presentation April 2014 - PowerPoint PPT Presentation

ADS Waste Holdings, Inc. Investor Presentation April 2014

Disclaimer This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Such forward-looking statements are subject to risks and uncertainties, including, in particular, statements about ADS Waste Holdings, Inc. (“ADS” or the “Company”) plans, strategies, prospects and industry estimates. These statements identify prospective information and include words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions. Examples of forward-looking statements include, but are not limited to, statements regarding: expected cost savings, sales increases, margins growth, cash flows, capital expenditures, market and industry growth rates and trends, including trends towards outsourcing, product line and market expansion, market share, operational and expense improvements (including headcount, technological, customer service and business improvement initiatives), retention rates, demand for the Company’s products and financial results. The foregoing is not an exclusive list of all forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. The matters referred to herein may not in fact occur. You are cautioned, therefore, against relying on any of these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. 2

Table of Contents I. Company Overview II. Operations Overview III. 2013 Financial Overview 3

Company ¡Overview ¡

Company Mission We provide integrated, non-hazardous solid waste collection, transfer, recycling and disposal services to residential, commercial, industrial and construction customers across 17 states and the Bahamas We are dedicated to finding effective, sustainable solutions to preserve the environment for future generations Our mission is to be the most trusted provider of environmental services in the US, and become Ø our customers’ partner of choice, Ø our industry’s employer of choice, and Ø our shareholders’ investment of choice 5

Leading vertically integrated solid waste services platform Diversified Multiple business with long opportunities for term contracts and balanced growth long lived assets Essential service with recession- Best in class resistant demand management team and stable cash flows Favorable industry dynamics and significant barriers to entry 6

Operating Strategies Ø Capitalize on our vertically integrated geographic hubs Ø Control the waste stream from inception through disposal or beneficial reuse Ø Locally managed Ø Generate sustainable long term growth Ø Organic volume growth Ø Pursue municipal contracting opportunities Ø National accounts program Ø Maintain financial discipline – focus on deleveraging Ø Maximize free cash flow from operations Ø Pricing discipline Ø Attention to ROE and capital deployed Ø Asset swaps/strategic divestitures Ø Implement best practices Ø Service First. Safety Always. Ø Routing/driver productivity Ø Environmental compliance Ø Continue disciplined acquisition strategy Ø Tuck ins to leverage integrated geographic hubs Ø Effective new market strategy 7

Management Philosophy Ø Strategic Direction Ø Operational Control Ø Local Execution Ø People always make the difference Ø Strongly believe in a highly incentivized work force focused on local execution Ø Service First. Safety Always! 8

Advanced Disposal Locations 9

Highly Experienced Management Team – The Company is led by a seasoned management team, with the three most senior executives having combined industry experience of 61 years – Senior management is backed by an impressive group of area managers comprised of the best and brightest from ADS and Veolia – Served as Director, President and CFO of Advanced Disposal since inception before becoming CEO in August 2006 – Also served as President of CAVCO, a private investment company, where he was responsible for the securities portfolio, detailed analysis and review of potential investment opportunities and administration Charles Appleby operations from 1996 through June 2004 Chairman and CEO – Certified public accountant in Florida 22 years experience Richard Burke Steven Carn President and COO CFO 26 years experience 13 years experience – Joined Advanced Disposal in April 2001 – Joined Veolia in 1999 as Area Manager for and served as Chief Accounting Officer Southeast Wisconsin area; served as until August 2006 and currently serves as Regional Vice President for the Eastern Chief Financial Officer and Southern markets and was appointed President and CEO of Veolia in 2007 – Certified public accountant in Ohio – Prior to joining Veolia, spent 12 years with Waste Management in a variety of leadership positions 10

Company Overview Through our over 3,000 vehicle fleet and over 5,300 employees: We service: § - More than 2.3MM residential customers through over 732 exclusive municipal contracts - More than 302k commercial, industrial and construction customers § We collect over 7MM tons of waste annually § We dispose of over 15MM tons annually in our landfills § We collect 590k tons of recyclables each year and process 184k tons in our 25 recycling facilities § 58% of our MSW landfills reuse our landfill gas - We produce electricity to power over 25k homes § Largest privately held solid waste disposal company in the US with ~$1.3B of annual revenues § Internalize 64% of waste collected 11

2013 Focus and Accomplishments Ø Completed the integration of the companies and achieve estimated synergies Ø Original estimate of $29.5MM updated to $45MM Ø IT integration Ø Accounting/finance integration Ø HR and Risk Management integration Ø Effective purchasing programs established Ø Consolidated Corp/Region offices Ø Rebranding complete Ø Institutionalized the Advanced Disposal culture/Management Philosophy Ø Incentivized managers to act like owners/entrepreneurs Ø Significant executive management field involvement Ø Focused on Operations Ø Achieve operational efficiencies – disposal and route optimization Ø Headcount reductions Ø Comprehensive safety training programs Ø Price/volume increases; customer retention 12

2013 Focus and Accomplishments (cont.) Ø Completed DOJ mandated and other strategic asset divestitures Ø Completed divestiture of Middle GA operations to Waste Industries Ø NJ transfer stations Ø Exited NY/NJ marketplace Ø Continue to evaluate asset swap potential Ø Completed acquisitions/new municipal contracts Ø $30.5MM acquisitions ($8.9MM EBITDA @ 3.4x) Ø Tuck-ins across all regions Ø Revenue of approximately $30MM in new muni contracts and $95MM in renewals Ø Positioned the company for maximum value creation 13

Multiple opportunities for balanced growth – Heightened sales focus on large commercial and industrial (C&I) project opportunities such as Grow commercial & Marcellus Shale, special waste streams, and coal ash industrial customer – C&I and construction and demolition (C&D) customers are expected to lead volume growth in an base economic recovery – Proven, systematic and replicable approach to contract bids Municipal contracts and – Geographically integrated operating structure and local management’s deep ties in their communities privatizations provide a competitive edge – Capitalize on further privatization of collection and disposal facilities – Nationwide waste brokerage program expected to be key source of organic growth National accounts – Provides access to a network of vendors for sourcing and allocating business; enhances program internalization of waste from access to new contracts and the ability to consummate volume swaps – Focus on landfill and distribution assets in secondary markets and general avoidance of markets with New market growth many large competitors and suboptimal pricing dynamics – Enhance geographic hubs and supplement vertical integration, while targeting markets with favorable disposal market dynamics and opportunities for multi-year contracts Disciplined tuck-in acquisitions – Through 12/31/13, we completed over 17 acquisitions and development projects at an average multiple of 3.4x – Conversion to CNG could provide significant EBITDA uplift to the current plan CNG conversion opportunity – Investing $3.3MM in the conversion of a fleet of 45 trucks could result in $1.1MM of annual savings 14

Operations Overview