Element Solutions Inc. · NYSE:ESI

Element Solutions — Q2 2024 Earnings Presentation

14 slides from Element Solutions's earnings presentation, Jul 30, 2024

  1. Slide 1: Second Quarter 2024 Earnings Presentation

    Second Quarter 2024 Earnings Presentation Enabling Technology. Growing Sustainably.

  2. Slide 2: Legal Notices

    Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement

  3. Slide 3: Second Quarter 2024 Financial Results

    Second Quarter 2024 Financial Results Q2 Highlights • Constant currency Adj. EBITDA* growth of 21% • 22% organic net sales growth* in Circuitry Solutions • Constant currency Adj. EBITDA* margins +250 bps • Robust growth in high-end electronics pipeline driven by advanced packaging & Kuprion Constant

  4. Slide 4: Second Quarter 2024 Segment Details

    Second Quarter 2024 Segment Details Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Assembly $198 2% Improving consumer electronics demand, continued weakness in western automotive electronic markets Circuitry $122 22% Strong demand in high-performance computing, data storage and c

  5. Slide 5: Balance Sheet and Cash Flow Considerations

    Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management ▪ Q2 2024 free cash flow* of $52 million ▪ Net debt to adj. EBITDA ratio* of 3.2x on a LTM basis as of June 30, 2024 ▪ Working capital investment of $33 million ▪ Capital structure remains fully fixed-rate until

  6. Slide 6: Full Year 2024 Financial Guidance

    Full Year 2024 Financial Guidance As of July 2024 FY Adj. EBITDA* $530 million to $545 million FY Adjusted $1.40 to $1.46 EPS* FY Free Cash $280 million to $300 million Flow* ▪ Guidance implies 15% constant currency adjusted EBITDA growth at midpoint ▪ Expect year-over-year FX headwind of approximat

  7. Slide 7: Appendix

    Appendix Enabling Technology. Growing Sustainably.

  8. Slide 8: Reconciliation to Adjusted Share Counts

    Reconciliation to Adjusted Share Counts (amounts in millions) Q2 2024 Q2 2023 Basic common shares outstanding 242 242 Number of shares issuable upon vesting of granted Equity Awards 1 2 2 Adjusted common shares outstanding 245 244 Note: Totals may not sum due to rounding 1. Equity awards with target

  9. Slide 9: Net Income Reconciliation to Adjusted EBITDA

    Net Income Reconciliation to Adjusted EBITDA ($ millions) Q2 2024 Q2 2023 Net income $93 $30 Add (subtract): Income from discontinued operations, net of tax (2) (3) Income tax (benefit) expense (18) 21 Interest expense, net 14 12 Depreciation expense 10 10 Amortization expense 30 31 EBITDA 129 101 A

  10. Slide 10: Net Income Reconciliation to Adjusted EPS

    Net Income Reconciliation to Adjusted EPS ($ millions, except per share amounts) Q2 2024 Q2 2023 Net income $93 $30 Income from discontinued operations, net of tax (2) (3) Net (income) lost attributable to non-controlling interests (0) 0 Reversal of amortization expense 30 31 Adjustment to reverse i

  11. Slide 11: Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis

    Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q2 YTD 2024 Q3 2023 Q4 2023 2024 Net income $149 $(32) $77 $195 Add (subtract): (Income) loss from discontinued operations, net of tax (2) — 1 (1) Income tax (benefit) expense (4) 15 (40) (29) Interest

  12. Slide 12: Organic Net Sales Growth Reconciliation

    Organic Net Sales Growth Reconciliation Three Months Ended June 30, 2024 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics 10% 3% 13% (5)% (1)% 7% Industrial & Specialty (4)% 3% (1)% —% —% (1)% Tota

  13. Slide 13: Free Cash Flow Reconciliation

    Free Cash Flow Reconciliation ($ millions) Q2 2024 Q2 2023 2024 Outlook Cash flows from operating activities $67 $81 ~$330-$360 Capital expenditures (15) (14) ~(50)-(60) Proceeds from disposal of property, plant and equipment — — — Free cash flow $52 $67 ~$280-$300 Note: Totals may not sum due to ro

  14. Slide 14: Non-GAAP Definitions

    Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period

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