September 2013 Safe Harbor During the course of this presentation - PowerPoint PPT Presentation

Investor Presentation September 2013

Safe Harbor During the course of this presentation the Company will be making forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) that are based on our current expectations, beliefs and assumptions about the industry and markets in which US Ecology, Inc. and its subsidiaries operate. Because such statements include risks and uncertainties, actual results may differ materially from what is expressed herein and no assurance can be given that the Company will meet its 2013 earnings estimates, successfully execute its growth strategy, or declare or pay future dividends. For information on other factors that could cause actual results to differ materially from expectations, please refer to US Ecology, Inc. ’s December 31, 2012 Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Participants should not place undue reliance on forward-looking statements, reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward- looking statements, whether as a result of new information, future events or otherwise. Important assumptions and other important factors that could cause actual results to differ materially from those set forth in the forward-looking information include a loss of a major customer or contract, compliance with and changes to applicable laws, rules, or regulations, access to cost effective transportation services, access to insurance, surety bonds and other financial assurances, loss of key personnel, lawsuits, labor disputes, adverse economic conditions, government funding or competitive pressures, incidents or adverse weather conditions that could limit or suspend specific operations, implementation of new technologies, market conditions, average selling prices for recycled materials, our ability to replace business from recently completed large projects, our ability to perform under required contracts, our ability to permit and contract for timely construction of new or expanded disposal cells, our willingness or ability to pay dividends and our ability to effectively close and integrate future acquisitions. 2

Company Snapshot US Ecology is a leading facilities-based environmental services company providing essential waste management and recycling solutions to industry and government for over 60 years  Broad, North American service offering Blainville, QC Richland, WA  Unique and irreplaceable site assets Grand View, ID Detroit, MI  Robust waste permits Beatty, NV  Diverse, blue chip customer base  Solid financial performance Robstown, TX  2012 revenue: $169 million  2012 Adjusted EPS 1 : $1.39 (Adj. EBITDA 1 $58 million)  2013 estimated EPS $1.45-1.55 (Adj. EBITDA 1 $62-65M)  15.6% return on invested capital 2  24.2% return on equity 2  Strong balance sheet  Attractive dividend yield of over 2% 1 See reconciliation of Adjusted EBITDA and Adjusted earnings per share on in appendix to this presentation or attached as Exhibit A to our earnings release filed with the SEC on Form 8-K 2 Trailing twelve month return as of June 30, 2013 3

Overview of Primary Markets Hazardous Waste Market Radioactive Waste Market  Growing $9 billion 1 market  Four LLRW landfills for Class A,B and or C waste; compact system limits competition  Provides treatment, disposal & recycling services for generators of RCRA,  Low activity radioactive waste disposed at CERCLA, TSCA and state regulated certain RCRA hazardous waste sites wastes  Public utilities (nuclear  Oilfield NORM power plants)  Refineries  Private cleanups  EPA Superfund site  Chemicals  Commercial real estate  Fuel fabrication facilities cleanups redevelopment  General manufacturing  Precious metals  Radioactive waste  Public utilities  Petrochemicals processing & refining processors / brokers  Aerospace  EPA Superfund sites  Manhattan Project clean-  Government research cleanups up (via Army Corps of facilities  Department of Defense, Engineers FUSRAP) including chemical  Department of Defense demilitarization (military base closures) 1. Environmental Business Journal 4

Broad, National Service Offering Treatment Disposal Transportation (86% of 2012 Revenue) (14% of 2012 Revenue)  5 treatment facilities  4 North American hazardous  On-site transportation waste landfills logistics support  Stabilization  1 radioactive waste landfill  3 rail transfer facilities  Solidification (class A, B, and C)  21,000+ feet of private track  Encapsulation  1 thermal desorption recycling  15 specialty tankers and  Catalyst recycling operation trailers and 8 power units  Brokering/recycling  1 wastewater treatment facility  234 company-owned railcars  Oil reclamation with POTW disposal  Cross-border expertise  Hazardous liquids processing 5 5

Irreplaceable Assets  Grand View, Idaho  “Hybrid” site with both Hazardous & Radioactive capabilities  Specializing in high volume treatment or direct disposal hazardous projects  Decades of permitted capacity  Robstown, Texas  Well situated in large Gulf Coast oil and gas market (adjacent to Eagle Ford field); specializing in difficult-to-treat, container, and bulk waste  Beatty, Nevada  Remote desert location serving large CA/AZ market and specializing in difficult- to-treat, container and bulk waste  Blainville, Quebec (Stablex)  Located near large industrial markets; significant base business  Unique permit capabilities for ‘niche’ waste streams (e.g. mercury, oxidizers)  Richland, WA  NRC regulated Low-Level Radioactive Waste  Serves Northwest & Rocky Mtn. Compact. Stable, rate regulated revenue requirement  Detroit, MI  Adds physical presence in upper mid-west while extending reach of Stablex  Specializes in hazardous liquids treatment, non-hazardous solids 6

Complementary, Specialized Services  Thermal Recycling of Oil Bearing Hazardous Waste  Co-located at Robstown, TX site  Leverages existing infrastructure  Internalizes recycling residuals  Profitable secondary revenue stream for recovered oil and metals  Transportation Services  234 owned gondola railcars  Hazardous & Radioactive transportation and logistics expertise  Field Services  US Ecology personnel provide service at customer locations  Oversee loading, packaging, manifesting of hazardous & radioactive material  Off Site Services  Broker material that we cannot dispose at our landfills  Delivers ‘one shipment solution’ to customer 7

Diverse Markets and Customers T&D Revenue 1  Key End-Markets Other Industry  Refineries, chemical and petro-chemical 18% Private production, heavy manufacturers, electric Cleanup utilities, steel mills, waste brokers, and 6% Broker 51% government entities/agencies Refinery 9% Government  Base Business 65% of 12% Rate Regulated 2012 Revenue 2 4%  Base business is recurring in nature  Strong customer retention  Diverse Customer Base  Largest account was 6% of 2012 revenue  Top 10 < 35% 1. T&D Revenue for the year ended December 31, 2012 2. Excludes US Ecology Michigan 8

Competitive Landscape US Ecology is a market leader in hazardous waste treatment & disposal with a broad geographic reach, unique permits & technologies & capacity to fuel growth US Ecology Assets 4 of 20 hazardous waste landfills 1 hazardous liquids treatment facility 1 of only 4 active commercial radioactive sites in country US Ecology Hazardous Waste Landfill/Treatment Facility US Ecology Radioactive Waste Landfill Primary competitors: Competing Hazardous Waste Landfills Clean Harbors, Waste Management, Envirosafe, EQ and Heritage Competing Commercial Radioactive Waste Landfills Source: Environmental Health and Safety Online, US Army Corps of Engineers 9

Growth Plan Generate sustainable increases in EPS and cash flow Pursue Complementary Acquisitions  Expand geographic Execute on footprint Marketing Initiatives  Increase service Build on Robust Waste offerings  Target high margin, Handling Infrastructure Leverage Regulatory niche waste streams  Complement existing  Introduce new Expertise facilities  Develop new markets treatment  Expand current permit  Strategically move up  Develop new services technologies capabilities and across service  Drive volumes to  Maximize throughput value chain; permitted,  Seek new permits for harvest inherent at all facilities green & recycling service expansion operating leverage  Develop low cost operations  Capitalize on evolving  Build base business airspace  Add rail served or regulatory environment  Increase win rate on  Utilize company- transfer facilities  Cross-border, import- clean-up project pipeline owned rail assets  Fixed facility bias export expertise  Expand thermal recycling 10