BrightView Holdings, Inc. (NYSE: BV) Investor Presentation Inspiring people. Nurturing landscapes.
Disclaimer This presentation contains “forward looking statements” within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements, other tha n statements of historical facts, contained in this presentation, including statements concerning our plans, objectives, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, business trends and other information, may be forward-looking statements. The forward-looking statements are not historical facts, or guarantees of future performance and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other c omparable words. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and act ual results may vary materially from what is expressed in or indicated by the forward-looking statements. The forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to publicly update or review any forward- looking statement, whether as a result of new information, future developments or otherwise. There are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Such risks, uncertainties and other important factors that could cause actual results to differ include, among others, the risks, uncertainties and factors set forth under the heading “Business”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere on our Annual Report on Form 10 - K, filed with the Securities and Exchange Commission (the “SEC”) on November 28, 2018. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. For a more complete description of risks and other uncertainties, please to refer to our Annual Report on Form 10-K as well as to our subsequent filings with the SEC. Included in this presentation are certain non-GAAP financial measures, such as Adjusted EBITDA, designed to supplement, and not substitute, the Company’s financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”) because management believes such measures are useful to investors. Additional information about these measures and a reconciliation to the nearest GAAP financial measures is provided in the appendix to this presentation. We are not providing a quantitative reconciliation of our financial outlook for Adjusted EBITDA to net income (loss), its corresponding GAAP measure, because the GAAP measure that we exclude from our non-GAAP financial outlook is difficult to reliably predict or estimate without unreasonable effort due to its dependence on future uncertainties. Additionally, information that is currently not available to us could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. 2
Inspiring people. Nurturing landscapes. Company Overview Cedars-Sinai Medical Center – Los Angeles, CA
BrightView: 70+ Years of Delivering Best-in-Class Service • Founded in 1939 by Theodore Brickman • Founded in 1949 by Burton Sperber • Primarily landscape maintenance and snow • Provider of landscape maintenance and removal services development services • Strong national presence • Strong evergreen market presence Founded in 2014 Large, Highly- Consolidation Industry-Defining, Strong Local Operational Fragmented and Strategy Route-Based Market Presence Improvements Stable Leveraging Services and Brand Driving Strong Addressable Resources and Company Reputation Margins Market Scale 4
We Provide Holistic Solutions Across the Full Spectrum of Maintenance & Development Services Landscape Maintenance Landscape Development Revenues: $0.58B 1 Revenues: $1.77B 1 FY’18 Revenue $2.35B 1 75% of Revenues 25% of Revenues • Landscape architecture and development • Commercial landscaping and snow removal services services for new landscapes / large-scale redesign projects • Need-based, essential services business • Expands BrightView’s customer base Business Commercial Landscaping Snow Removal Overview & • • Non-discretionary service Counter-seasonal revenue stream • Horticultural thought-leadership Highlights • • Predictable recurring revenue Utilizes existing infrastructure model • Complex and high-profile projects • Year-to-year variability, • Broad offering of ancillary modulated around 30-year avg. • Many contracts include ongoing maintenance services snowfall rates upon project completion Selected Services Landscape Snow Tree Care Disaster Landscape Nursery & Pool & Sports Services Services Services Irrigation Fertilization Recovery Architecture Tree Moving Water Fields Selected Customers 1 FY2018 results represent operations during the 12ME 9/30/18. 5
Our Breadth of Coverage Enables Us to Serve Customers Across the Country National Footprint #1 Player in a ~$63B Market ~10x Next Largest Competitor Strong Margins and Free Cash Flow ~80% Cash Conversion Modest Capex Needs ~2.5% of Revenue States with BrightView Branches Maintenance Location Extended Coverage via Qualified Service Partners Development Location Robust M&A Pipeline Branches Employees 11 companies and more than Key Statistics Evergreen ~65% ~75% $230 million in revenue acquired by Region Seasonal ~35% ~25% since 1/1/17 Total > 200 ~ 20,000 6
Consistent Execution of Complex Maintenance and Development Engagements Getty Museum Marlins Park ExxonMobil Headquarters Four Seasons Hualalai Los Angeles, CA Miami, FL Irving, TX Kona, HI Pavilion Park Ritz Carlton Colonial Williamsburg Duke University Beacon Park Irvine, CA Williamsburg, VA Key Biscayne, FL Durham, NC Irvine, CA 7
Industry & Business Model Highlights Toyota North American Headquarters – Plano, TX
#1 Provider of Commercial Landscaping Services … Top 10 North American Landscaping Companies 1 ~10x ~10x The Size of Next Largest Direct Competitor Industry Leader Across a Number of Service Lines #1 Commercial #1 Snow Removal Leading Leading Provider of Golf Leading Water Irrigation Landscaper in the U.S. Company in the U.S. 2 Tree Nursery 3 Course Maintenance 3 Service Provider 3 Differentiated Scale in a Highly- Fragmented Market Serves 4 of the 5 Contracts with 4 of the 5 Serves 9 of the Top 10 3rd Party Serves 11 of the Top 15 Largest U.S. Banks 4 Largest U.S. Companies 5 Hotel Management Firms Health Systems Scope to Service a Diverse Set of End Markets ~13,000 Office Buildings / 9,000 Residential ~3,400 Shopping 450+ Education Corporate Campuses Communities Environments Institutions High-Profile Bespoke Assignments Maintenance for Colonial Design Consultant Designed / Built Fields for Turf Restoration for Williamsburg for MLB 3 Olympic Games the National Mall 1 Per Lawn and Landscape magazine. Based on 2017 revenue. Excludes tree care focused companies. 2 Per Snow Magazine. 3 Per Management estimates. 4 Ranking based on total publicly reported assets. 5 Per Forbes , based on total revenues. 9
…In a Large, Growing and Highly -Fragmented Commercial Landscaping Industry Commercial Landscaping and Snow Removal Services: Steadily Growing Industry ($B) 1 CAGR: 3% CAGR: 0% $68 $67 $65 $64 $63 $62 $61 $60 $58 $53 $50 $48 $47 $46 $46 $45 $44 '06A '07A '08A '09A '10A '11A '12A '13A '14A '15A '16A '17E '18E '19E '20E '21E '22E MARKET OPPORTUNITY • Stable growth due to non-discretionary nature of ~$63B service U.S. Commercial Landscaping and Snow • Resilient revenue from focus on industry’s Top Quartile • BrightView is the only company with >1% market share ~$46B U.S. Commercial • Growth supported by outsourcing and procurement Landscaping centralization trends Services • Quality demands drive engagement complexity and BrightView: ~$1.77B Market Share: 2.8% criticality of execution 1 Landscaping services in the U.S. (2006-2017), IBISWorld – Snowplowing Services in the U.S. (2014, 2016-2017) presents commercial landscaping services and commercial 10 snowplowing services as a share of the overall U.S. market at rates consistent with IBISWorld figures for 2017.
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