Calgon Carbon Corporation Investor Presentation

Calgon Carbon Corporation
Investor Presentation
March 13, 2017
29th Annual ROTH Investor Conference
© Calgon Carbon Corporation 2017 | Slide 1
Disclosure Statement
Forward Looking Statement
This presentation contains historical information and forward-looking statements. Forward-looking statements typically contain words such as “expect,” “believe,” “estimate,”
“anticipate,” or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price
increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in this presentation pursuant to the “safe harbor” provision of the
Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties that may cause Calgon Carbon
Corporation’s (the Company’s) actual results in future periods to be materially different from any future performance suggested herein. Further, the Company operates in an
industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company’s control. Factors that could affect future
performance of the Company include, without limitation: the Company’s ability to successfully integrate the November 2, 2016 acquisition of the assets and business of the woodbased activated carbon, reactivation, and mineral-based filtration media of CECA, a subsidiary of Arkema Group (the New Business) and achieve the expected results of the
acquisition, including any expected synergies and the expected future accretion to earnings; changes in, or delays in the implementation of, regulations that cause a market for
our products; changes in competitor prices for products similar to ours; higher energy and raw material costs; costs of imports and related tariffs; unfavorable weather conditions
and changes in market prices of natural gas relative to prices of coal; changes in foreign currency exchange rates and interest rates; changes in corporate income and crossborder tax policies of the United States and other countries; labor relations; availability of capital and environmental requirements as they relate to both our operations and to
those of our customers; borrowing restrictions; validity of patents and other intellectual property; and pension costs. In the context of the forward-looking information provided in
this presentation, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the Company’s most recently filed
Annual Report. Any forward-looking statement speaks only as of the date on which such statement is made and the Company does not intend to correct or update any forwardlooking statements, whether as a result of new information, future events or otherwise, unless required to do so by the Federal securities laws of the United States.
Non-GAAP Financial Data
This presentation includes the use of EBITDA, a financial measure that is not in accordance with generally accepted accounting principles (“GAAP”). The Company defines
EBITDA – which is a non-GAAP measure – as net income from its consolidated statements of comprehensive income before interest income, interest expense, income tax
provision and depreciation and amortization. Since this is not a measure determined in accordance with GAAP, our definition may not be comparable to the calculation of similar
measures by other companies. EBITDA should not be considered in isolation, as a superior measure to, or as an alternative measure to net income, income from operations, net
cash provided by operating activities or other GAAP financial measures of operating performance or cash flow measures of liquidity. The Company has included EBITDA as a
supplemental disclosure as it believes EBITDA provides useful supplemental information to investors regarding its ability to – among other things – service debt, pay dividends,
and fund capital expenditures and because it uses the EBITDA metric as an element of its incentive compensation programs.
© Calgon Carbon Corporation 2017 | Slide 2
Calgon Carbon is…
• The world’s largest producer of granular activated carbon
• The most diversified provider of high quality activated carbon, filtration media, and
services including equipment and carbon reactivation
• Clearly focused on high-end market segments with strong share positions
• A market leader in technical service and application development to support share
positions and to capitalize on emerging contaminant treatment
• A company with 20 manufacturing and innovation facilities in 7 countries and global
sales teams represented in 16 countries
© Calgon Carbon Corporation 2017 | Slide 3
How Our Products Help Our Customers and Society
Provide clean,
safe drinking water
Reduce environmental
impact and allow waste
water reuse or disposal
Purify food
products
Enhance critical
stages in chemical
manufacturing
Remove and recover
contaminants from air
emissions
Protect your
personal environment
Protect global marine
ecosystems from
invasive species
Accelerate wound
healing
© Calgon Carbon Corporation 2017 | Slide 4
Net Sales by End Markets and Geography
2016 Pro Forma(1) Net Sales
End Markets
Geography
Asia
16%
$601.2 Million
Americas
49%
EMEA
35%
* Includes industrial sector customers
which collectively account for ~30% of net sales
© Calgon Carbon Corporation 2017 | Slide 5
(1) Assumes New Business had been acquired on January 1, 2016. See Note 20 in the Company’s 2016 Annual Report on Form 10-K.
Global Presence
Feluy, Belgium (HQ)
Houghton-le-Spring, UK
Ashton-in-Makerfield, UK
Tipton, UK
North Tonawanda, NY
Columbus, OH
Blue Lake,OH
CA
Columbus,
Gila Bend, AZ
Catlettsburg, KY
Parentis-en-Born, France
Fukui, Japan
Riom-es-Montagnes, France
Legnago, Italy
Suzhou, China
Findlay Twp. PA
Pittsburgh, PA (HQ)
Saint-Bauzile France
Foggia, Italy
Neville Island, PA
Pearlington, MS
Singapore (HQ)
Manufacturing Locations
Regional Offices / HQ
Global Sales Offices
© Calgon Carbon Corporation 2017 | Slide 6
Acquisition of Wood Activated Carbon and Filter Aid
Business (New Business)
Business Description
•
•
•
•
•
Manufacturing / commercial capabilities
– Virgin wood-based activated carbon
– Carbon reactivation services
– Diatomaceous earth (DE) and perlite filtration media
– Perliting / cryogenic insulation
Strong end market customer relationships
– Beverage, food, industrial, pharmaceutical
– 40% of customer base uses both carbon and filtration media products
Stable financial performance
Solid market positions in EMEA region
~ 300 employees
Transaction Highlights
•
•
•
•
•
•
•
•
Transaction closed Nov. 2, 2016
Great strategic fit
Diversifies exposure to regulatory and traditional end market growth opportunities
Strengthens operations and market position in Europe
Geographically extends carbon reactivation capacity into Southern Europe
Value creation path – synergy capture and projects on track for realization by
2019
Is expected to contribute ~ $100 million in net sales in 2017
Expected to be accretive to fully diluted EPS in 2017
Operating Locations
Riom Es Montagnes, France
Legnago, Italy
Saint-Bauzile, France
Parentis, France
Abidos, France
Virgin activated carbon
Carbon reactivation
Diatomaceous earth
Perlite
Perliting/cryogenic
insulation
Foggia, Italy
EBITDA Impact of Synergies and Projects ($/M) (1)
25
$3.3
$23.4
$3.4
20
$16.7
15
10
5
0
2015
(1) Using
Integration
(2)
Synergies
an exchange rate of €1.00 = $1.10
annual EBITDA contribution by 2019
(2) Expected
In-progress
(2)
Projects
Pro Forma
EBITDA
© Calgon Carbon Corporation 2017 | Slide 7
Premium Activated Carbon and Filtration Media Products
Address High-End Market Needs
Product Portfolio
Geography
Primary Applications
• Bituminous coal-based
activated carbon
− Granular, powder, extruded
• Americas
• Europe
• Asia
•
•
•
•
•
• Wood-based activated carbon
• Europe
• Asia
• Food & beverage
• Industrial
• Pharmaceutical
• Diatomaceous earth filtration
media (DE)
• Europe
• Asia
• Food & beverage
• Industrial
• Perlite filtration media
• Europe
• Beverage
• Industrial
• Fillers
Drinking water
Wastewater
Environmental air
Industrial
Food & beverage
• Carbon cloth
• Europe
• Americas
• Medical
• Defense
• Industrial
• Granular activated carbon
reactivation
• North America
• Europe
• Asia
•
•
•
•
•
Solve customer’s most demanding
purification and separation
problems
•
Integrated offering of activated
carbon, equipment, reactivation
and field support
•
Applications expertise in municipal,
industrial, and food & beverage end
markets
•
Customer stickiness enabled by
product quality, service and
technical support
Drinking water
Wastewater
Industrial
Food
© Calgon Carbon Corporation 2017 | Slide 8
Innovative Equipment Addresses High-End Market Needs
Carbon Adsorption Systems
Ultraviolet Technology
Ballast Water Treatment
Ion Exchange Systems
© Calgon Carbon Corporation 2017 | Slide 9
Diverse End Markets Served
Capabilities / Applications
• Removal of regulated and non-regulated contaminants, including
disinfection byproducts (DBP) and perflourinated compounds (PFCs)
Drinking Water
• Integrated offering combining GAC, reactivation, carbon adsorption
equipment and field service creates competitive advantage
• FILTRASORB® GAC is a leading technology
Food &
Beverage
Specialty
Carbons
• Purification and de-colorization of many foods and beverages,
including corn syrup and cane sugar for sweetener
manufacturers
• Filtering and purifying water, liquids, gases for use in brewing
and bottling
• Leading supplier of specialty carbons to gas mask
manufacturers for the U.S. and European military, and
respirators for first responders and others
• Recovery of precious metals
Market Trends / Drivers
• Ongoing discovery and growing public awareness of contamination
in water sources globally
‒
Fast developing demand for PFC removal
• Pending regulation of 1,2,3-trichloropropane (1,2,3-TCP) in
California, New Jersey and Hawaii
• Ongoing adoption of GAC to comply with DBP Stage 2 regulations
• Markets and demand remain relatively stable; customers
looking to optimize carbon usage
(1)
• New Business wood-based activated carbon and DE and
perlite filtration media adding to end market volumes
•
Anticipated increase in U.S. military spending
•
Recently secured new 5-year contract for respirator carbon
products with existing customer
−
Expected sales of ~$6 million per year
© Calgon Carbon Corporation 2017 | Slide 10
(1) New Business refers to the wood-based activated carbon, reactivation and filter aid business acquired on November 2, 2016.
Diverse End Markets Served
Capabilities / Applications
Industrial
Processes
• Activated carbon and DE filtration media products used for
purification and / or separation of customers’ products
• Serve companies in various industries including chemical, oil &
gas, and pharmaceuticals
Market Trends / Drivers
• Demand tied to industrial production
• Initial signs of improving demand toward the end of 2016
• Early indications in 2017 of improving economic conditions,
including positive manufacturing and production index trends
• Industrial sector maintenance projects
Environmental
Air
• Filtration and purification of discharged gases by chemical,
pharmaceutical and refining industries
• Innovative solution, FLUEPAC®, is treatment of choice for
mercury emissions removal
• Treatment of industrial wastewater streams
Environmental
Water
• Remediation of contaminated ground water / chemical spills
• Hyde GUARDIAN® UV disinfection equipment to prevent the
transfer of invasive species between marine ecosystems
• Price of natural gas
• Compliance with Mercury and Air Toxics Standards rule (MATS)
requiring coal-fired power plants in the U.S. to control mercury
emissions
− Expect to maintain ~30% share of 250-350 million std. lb.
market
•
Wastewater demand aligned with industrial production
•
Ballast Water: 5-7 year retrofit opportunity expected to begin
4Q 2017
− IMO Convention compliance, enters into force 9/8/2017
− U.S. Coast Guard ballast water rule compliance
© Calgon Carbon Corporation 2017 | Slide 11
(1) New Business refers to the wood-based activated carbon, reactivation and filter aid business acquired on November 2, 2016.
Income Statement Highlights
Net Sales ($/M)
700
562.3
560
547.9
555.1
535.0
514.2
•
420
− Cumulative FX impact of ~($40) million
− Lower ballast equipment sales of ~($22) million
− Lower Japan sales of ~ ($17) million (excluding FX
impact)
− Weak industrial sector demand in 2016
− Offset by increases in sales related to the addition
of the New Business of ~$12 million, mercury
removal products of ~$9 million and North
American municipal water activities of ~$8 million
280
140
0
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
(1)
Gross Margin (%)
38.0
35.8
36.0
34.6
33.0
34.0
32.0
Primary drivers of ($48) million sales decline from
2012-2016:
32.6
30.2
30.0
28.0
•
Gross margin improvement, 2013-2015, reflects
3-phase program to reduce costs, optimize virgin
carbon plant production and expand capacity
26.0
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
© Calgon Carbon Corporation 2017 | Slide 12
(1) Defined as net sales less cost of products sold (excluding depreciation and amortization) as a percentage of net sales.
2017 Outlook and Priorities
• Cautiously optimistic about recovery in industrial sector demand
• Legacy business sales growth drivers:
‒
Potable water: PFC removal and other opportunities
o Awarded 20 PFC projects in North America in 2016, valued at ~$10.0 million
o Active opportunities >2x 2016 awards in both number and value
‒
Environmental air: mercury removal product sales
o New customers requiring hard-to-treat solutions and elevated natural gas prices
‒
Environmental water: ballast water treatment systems
o Anticipate higher equipment sales toward the end of the year assuming regulatory compliance remains on track
• New Business expected to contribute ~$100 million in sales
• Expect to generate more than $100 million in EBITDA
‒
‒
Continue to focus on reducing costs and further improve operational and manufacturing processes to drive higher
levels of profitability
Integration of New Business and capture of expected synergies and benefits from projects
Sustain Leading Position in End Markets that Value High-Performing Products
© Calgon Carbon Corporation 2017 | Slide 13
(1) New Business refers to the wood-based activated carbon, reactivation and filter aid business acquired on November 2, 2016.
Longer-Term View −− Optimize Business Profitability
Key Drivers
Fiscal 2016
Long Term
Target
• Complete New Business de-bottlenecking project
Gross Margin (1)
(2)
32.6%
• Improved product / customer mix
~35.0%
• Manufacturing cost improvement / efficiencies /
capacity leverage
Operating
Expenses / Net
Sales
(2)
20.5%
• Capture expected acquisition-related cost
synergies
~15.0%
• Continued cost control and reductions
Increase EBITDA(3) Margin from 11.8%(2) for 2016 to Long-Term Target of ~20%
(1) Net sales less cost of products sold (excluding depreciation and amortization) as a percentage of net sales.
(2) Gross Margin includes $1.5 million (0.3% of net sales) of inventory-related purchase accounting costs. Operating Expenses / Net Sales includes $15.7 million (3.1% of net sales) of acquisition and
project related costs. EBITDA Margin includes the $17.2 million (3.3% of net sales) total of $1.5 million of inventory-related purchasing accounting costs and $15.7 million of acquisition and project
related costs.
(3) See GAAP to Non-GAAP Reconciliation Table in the Appendix.
© Calgon Carbon Corporation 2017 | Slide 14
Strategic Multi-Year Value Creation Path
Expand Business
Opportunity Set
Strengthen Core Business
•
Leverage and sustain market leadership
•
Capture opportunities in new activated
carbon applications
•
Complete integration of New Business
− Fully realize integration synergies and
benefits of de-bottlenecking project
•
Optimize operating expenses
•
Further increase operational efficiencies and
plant productivity
•
Expand into complementary activated
carbon segments
− Increase wood-based activated carbon
capabilities to serve demand in North
America and globally
•
Build broader filtration media business
© Calgon Carbon Corporation 2017 | Slide 15
Strong Cash Flow Generation Enhances Strategic
Financial Flexibility
Future Capital Allocation Priorities
Operating Cash Flow ($/M)
100
84.3
80
72.7
69.9
66.8
69.0
60
40
2012
2013
2014
2015
2016
Expected
growth in
operating cash
flow from
addition of New
Business and
targeted
profitability
improvements
Maintenance
• Refurbish / expand Neville Island plant in 2017
• Annual maintenance capex $25 to $30 million
Growth
• De-bottleneck wood carbon plant in 2017
• Increase wood-based carbon capabilities / capacity to
serve demand globally
• Broaden adjacent filtration media capabilities
Return
Capital
• Reinstated dividend in 2015; $0.20 per annum
• Share repurchase program currently suspended;
$64.1 million of remaining authorization
Debt
Service
• Required annual repayments on term loan
• Discretionary debt repayments
2012-2016 Avg. Annual Capital Allocation
• Growth capex enhanced productivity
and increased virgin capacity by > 20
million lbs
• Acquired New Business for $154
million
• Returned $159 million to
shareholders
• Increased leverage at Dec. 31, 2016
to ~2.25X expected 2017 EBITDA
© Calgon Carbon Corporation 2017 | Slide 16
Investment Highlights
Securely Positioned in
High-end Segments
Focused on Improving Margins and Lowering
Operating Expenses
Strong Cash Flow Generation Enhances
Strategic Financial Flexibility
Attractive Opportunities
to Extend into Adjacent
Markets
Well Positioned to
Benefit from Emerging
Ballast Water Market
On Track to Deliver
Value Through Recent
Acquisition
Established Global Market Leader in Activated
Carbon
© Calgon Carbon Corporation 2017 | Slide 17
Appendix
© Calgon Carbon Corporation 2017 | Slide 18
GAAP to Non-GAAP EBITDA Reconciliation
($/thousands)
Year ended December 31,
2016
Net Income
$
13,797
2015
$
43,463
2014
$
49,370
2013
$
45,713
2012
$
23,272
Income tax provision
6,276
19,923
23,138
21,486
14,064
Interest expense
2,385
773
263
462
80
(99)
(58)
(77)
(136)
(35)
38,070
35,453
30,470
28,938
26,320
99,554
$ 103,164
$
Interest income
Depreciation and amortization
EBITDA
$
Net sales
$ 514,246
$ 535,004
$ 555,103
$ 547,939
$ 562,255
11.8%
18.6%
18.6%
17.6%
11.3%
EBITDA margin (% of net Sales)
60,429
$
96,463
$
63,701
© Calgon Carbon Corporation 2017 | Slide 19
North American Drinking Water
Market Drivers
CCC Solutions
• Ongoing discovery of contamination in water sources
• Barrier protection for vulnerable surface water sources
• Surface waters with high TOC levels having difficulty
meeting DBP limits with chloramines
• Heightened consumer focus on water quality / safety
Activated Carbon
Equipment
Notable Contaminants / Issues of Concern
Currently Regulated:
• Taste & odor contaminants / compounds
• Stage 2 disinfection byproducts (DBPs)
• Trichloroethylene/tetrachloroethylene (TCE/PCE)
Pending Regulation
• 1,2,3-Trichloropropane (1,2,3-TCP)
‒
Reactivation
US / Canada Market Potential
Lb’s
(millions)
250
Installed GAC
200
Pending in California, New Jersey and Hawaii
Potential for Future Regulation
• Perflourinated compounds (PFCs)
• Carcinogenic volatile organic compounds (cVOC)
• Stage 3 DBPs
• Endocrine-disrupting compounds (pharma /
pesticides)
• Seasonal algal toxins
150
100
50
0
TOC - Total Organic Compounds
* - Company estimates
DBP (Stage 1 / 2)
Non DBP
© Calgon Carbon Corporation 2017 | Slide 20
North American Drinking Water PFC Opportunity
CCC Solution
• FILTRASORB® GAC is a proven technology
− Leading technology for removal of PFCs from drinking
water and ground water sources
o FILTRASORB shown to outperform coconut in
accelerated column tests
o > 15 years of experience at more than 20 municipal
and industrial installations
o Economical solution that can be deployed quickly
o Spent GAC can be reactivated – safely – allowing
for GAC reuse and destruction of adsorbed PFCs
• Recent successes:
− Hoosick Falls, NY: Temporary equipment/GAC
municipal water solution; GAC for point of use
solutions for private wells.
− Total of 20 new project awards in 2016; nearly 50
additional project opportunities under review
− Carbon adsorption equipment has been / will be an
important part of the solution in most cases
May 2016 – EPA established a Health Advisory Exposure Limit
of 70 ppt; certain states evaluating adoption of lower limits.
A combination of CCC equipment, GAC and field service
support provides utilities an easy, effective, economical solution
PFCs – Perfluorinated Compounds
ppt – parts per trillion
© Calgon Carbon Corporation 2017 | Slide 21
North American Drinking Water DBP Opportunity
Background and Ongoing Opportunity for the adoption of GAC
•
•
•
•
•
Municipal water utilities must disinfect water delivered to customers to comply with the Surface Water Treatment Rule which
protects the population against harmful bacteria and viruses - - chlorine is the most commonly used disinfectant
However, chlorine reacts with naturally occurring organic matter in raw water sources to form harmful compounds called
disinfection by-products (DBPs); certain DBPs are regulated by Stage 1 and Stage 2 EPA regulations
Some utilities have switched from chlorine to chloramine to avoid creating regulated DBPs; most have done this without a
process to reduce the organic matter in the raw water sources; in addition, chloramine interacts with organic matter to create
other potentially more harmful DBPs that are currently not regulated – could be subject to a future EPA rule (Stage 3 DBP)
When the naturally occurring organic level in the water source is high, these utilities can have difficulty simultaneously
complying with disinfectant requirements related to the Surface Water Treatment Rule and DBP levels related to the
Stage 2 DBP rule
GAC removes organic matter from water; prevents the formation of all DBPs and allows for the safe use of chlorine
Mid-term Opportunity: Compliance Issues
States where certain water systems using chloramines are having
difficulty complying with DBP Stage 2 regulations (per water quality
reports, “do not drink” alerts)
Longer-term Opportunity: Stage 3 DBP Rule
Util's using Chloramines 1/ Capacity (MGD) Initial Fill (M lbs) Exchanges (M lbs / yr)
Los Angeles, CA*
2,000
120
20.0
Las Vegas, NV**
800
50
8.3
Boston, MA
500
30
5.0
Dallas, TX**
500
30
5.0
Houston, TX*
500
30
5.0
Philadelphia, PA*
500
30
5.0
Washington DC
300
20
3.3
Corpus Christi, TX*
170
10
1.6
San Diego, CA**
150
10
1.6
Total
5,420
330 ***
55
*Actively researching GAC adoption ** Planning / running pilot tests w/ GAC
*** Approx. 2X the current Muncipal GAC market size
1/ Largest water systems that switched to chloramines to disinfect to meet
Stage 2 DBP regulations; many more water systems have also switched
Source: Management analysis
© Calgon Carbon Corporation 2017 | Slide 22
Mercury Removal
Market Drivers
CCC Solution
In 2015 and 2016, existing U.S. State and Canadian
Regulations were supplemented by the implementation of the
U.S. EPA’s Mercury and Air Toxics Standards rule (MATS)
Calgon Carbon’s Advanced FLUEPAC® PAC Products
• MATS requires all coal-fired power plants in the U.S. to
control mercury emissions; final extended compliance
date was April 2016
• Following a U.S. Supreme Court challenge in 2015, U.S.
EPA issued a Final Supplemental Finding in April 2016
that MATS was appropriate, keeping MATS in place
• Approximately 300 coal-fired electric generating units
(EGUs) equipped to treat mercury emissions with
Powdered Activated Carbon (PAC) in North America
• Annual estimated PAC market size in 2017 of 250 million
to 350 million “standard product” pounds *
• Flexibility: Complete product line including advanced,
patent protected products that deliver superior
performance
• Lowest “total” mercury control cost / ash sale
maintenance
• 50% to 70% less carbon to meet MATS requirement
• Dry Product – improves product flow / operational
performance
• Compatibility / Superior Hg removal when dry sorbent
injection (DSI) is utilized for SO2 or HCI control
Expect to maintain 30% share of the value of the PAC
market for treating mercury emissions in North America
• 2016 revenues totaled $45.1 MM
• 2017 revenues expected to increase > 10% vs. 2016
− Q1 Revenues expected to exceed Q1 2016 revenues
of $8.2 MM by at least 30%
− New contracts, higher natural gas prices
* Company estimate
© Calgon Carbon Corporation 2017 | Slide 23
Ballast Water Treatment
Hyde Marine
Situation
• Prevent spread of invasive species (e.g. zebra mussels)
• Expected market size $18B to $28B – 64,000 ships *
Regulations / Recent Developments
IMO Convention
• Ratified on Sept. 8, 2016
• Enters into force Sept 8, 2017
• Estimate 66% to 90% of total expected
market size to be impacted by IMO
Convention with no impact from USCG
regulation.*
United States Coast Guard (USCG)
• Ballast Rule enacted June 2012; vessels
subject to compliance as of Jan. 1, 2016
• Dec. 2016 – First 3 systems granted Type
Approval (TA) for USCG compliance
• > 11,500 vessel compliance extensions
granted as of Dec 2016; not granting as
liberally as previous to December TAs
• Q1 2017 ballast water discharge violation
to result in a civil penalty
• Addresses the LARGE retrofit market with a SMALL system
− Effective reliable solution based on filtration and
ultraviolet (UV) disinfection; simple, automatic operation
− Skid-mounted or modular-component system allows for
optimal integration into new-build or existing vessels
− Can serve flow rates from 60 m3/h to 6000 m3/h in
either a standard or multi-reactor system configuration.
• Over 450 Hyde systems sold since 2010 acquisition
• Type Approved (TA) for IMO Convention compliance
− Completed land-based testing toward gaining updated
IMO certification
• Commencing USCG TA testing under USCG testing
protocols in Mar. 2017; Expect to apply for USCG TA in Q4
2017
Recent developments leading to increased bid activity; expect to lead to sales growth in late 2017
* Company estimates
© Calgon Carbon Corporation 2017 | Slide 24
Reactivation
Benefits
• Lower costs than using virgin carbon
• Certified destruction of the adsorbed materials (which may be classified as
hazardous)
− No landfill liabilities
− Lower cost than incineration
• Sustainability benefits
− Generates only 20% of the CO2 vs. the production of virgin carbon
• Assured supply of carbon
• Expert Field Service support and logistics
Reactivation Sites
North Tonawanda, NY
• Municipal
Pittsburgh, PA
• Industrial
• RCRA
Columbus, OH
• Municipal, Industrial
Tipton, UK
• Municipal
Feluy, Belgium
• Municipal, Industrial
Legnago, Italy
• Municipal
Catlettsburg, KY
• Industrial
• RCRA
Gila Bend, AZ
• Municipal
Blue Lake, CA (idle)
• Municipal
Fukui, Japan
• Municipal, Industrial
Suzhou, China
• Industrial, Municipal
(conversion of muni
kiln to industrial
in process)
Approximately 170 municipal water systems use
Custom Municipal Reactivation (CMR) in North America
© Calgon Carbon Corporation 2017 | Slide 25
For Additional Information:
Dan Crookshank
Director, Investor Relations & Treasurer
Direct Dial: 412-787-6795
DCrookshank@calgoncarbon.com
www.calgoncarbon.com
© Calgon Carbon Corporation 2017 | Slide 26