Slide 1: Citi Basic Materials Conference 2017
Citi Basic Materials Conference 2017 November 28, 2017
Slide 2: Safe Harbor
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 statements made by or o
Slide 3: Non-GAAP Information
NON-GAAP INFORMATION To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company uses the following non-GAAP financial measures: adjusted EBITDA, adjusted EBITDA margin, cash flow conversion, comparable adjusted
Slide 4: Platform Since Founding
PLATFORM SINCE FOUNDING Platform has built a robust portfolio through its acquisitions of high quality, asset-lite / high-touch companies focused in two growing sectors and has successfully improved its portfolio through meaningful integration and investment Agricultural Solutions Performance Soluti
Slide 5: Platform's Business Today
PLATFORM’S BUSINESS TODAY Highly profitable business Diversified revenue base Healthy and growing with minimal capital across geographies and end-markets with requirements leading to industries… exciting opportunities strong returns on for expansion… investment … 2016 Performance 2016 Net Sale
Slide 6: Platform's Future Vision
PLATFORM’S FUTURE VISION Two Leading Specialty Chemical Companies with Exciting Growth Opportunities and Robust Cash Flows ~$1.8bn+1 Global Agricultural Chemical ~$1.8bn+1 Global Specialty Chemical Business Business Key End- Conventional crop protection, seed Electronics, automotive, general Markets
Slide 7: Agricultural Solutions Highlights
AGRICULTURAL SOLUTIONS HIGHLIGHTS Distinctive position as formulation-based Ag chemical company with global scale and niche crop focus Strong Industry innovator that develops new solutions for farmers Industry A preferred partner for numerous discovery-focused firms Positioning Significant g
Slide 8: Performance Solutions Highlights
PERFORMANCE SOLUTIONS HIGHLIGHTS Market leader in specialty chemicals for surface treatment and electronic assembly Leading Market High-touch sales force embedded with customers Positions Leading specialty chemical supplier selling more than $1.5 billion of surface chemistry and assembly solut
Slide 9: Platform Third Quarter Results
PLATFORM THIRD QUARTER RESULTS Constant Currency1* Organic2* Net sales grew 2% driven by organic growth in Performance Solutions and ($ in millions) Q3 2017 Q3 2016 YoY% Q3 2017 YoY% YoY% partially offset by a decline in Agricultural Solutions’ LatAm region due to drought conditions in Brazil Net
Slide 10: Performance Solutions Results
PERFORMANCE SOLUTIONS RESULTS Net Sales Net sales increased by $26 million over 3Q16 due to $ in millions organic growth in all business units excluding Graphics. 500 481 Moderate FX tailwinds also contributed to growth 17 480 3 6 464 o FX tailwind driven mainly by EUR 460 455 440 o $3 million ben
Slide 11: Agricultural Solutions Results
AGRICULTURAL SOLUTIONS RESULTS Net Sales $ in millions Net sales decreased $12 million over 3Q16 driven by 450 9 445 softness in Latin America and EMEA partially offset by 440 436 volume growth in North America 430 424 o FX tailwind driven primarily by the BRL and 420 (21) EUR 410 Organic sales*
Slide 12: Full Year 2017 Guidance – Q3 Update
FULL YEAR 2017 GUIDANCE – Q3 UPDATE Performance Solutions Agricultural Solutions Modest global GDP expectations with slower Modest recovery assumed in global Market Commentary growth in Europe commodity prices US automotive units moderating Ag chemical markets expected to be slightly negativ
Slide 13: Separation Update
SEPARATION UPDATE Objectives Complete separation into two public companies by mid-2018 Run-rate cost neutral to Platform stockholders Attain leverage objectives within targeted timeframes Operational Target Jan. 1, 2018 for fundamental operational separation Separation o Org. design o Treasu
Slide 14: 2017 Priorities
2017 PRIORITIES Execution: Build on Operating Momentum Focus Commercial Efforts on Fast Growing Niches Synergy Realization and Continuous Cost Improvement Generate Free Cash Flow and Reduce Leverage 14
Slide 15: Appendix
PLATFORM SPECIALTY PR UCTS CORPORATION rl APPENDIX 15
Slide 16: Reconciliation to Adjusted EBITDA
RECONCILIATION TO ADJUSTED EBITDA Twelve months ($ in millions) Three months ended, ended, 9/30/17 9/30/17 9/30/16 Net (loss) income attributable to common stockholders $(157) $(69) $105 Adjustments: add / (subtract): Gain on amendment of Series B Convertible Preferred Stock - - (33) Net income (los
Slide 17: Reconciliation to Adjusted EBITDA Cont.
RECONCILIATION TO ADJUSTED EBITDA CONT. (Amounts in millions) Q3'17 YTD Q3'16 YTD FY 2016 FY 2015 FY 2014 Net loss attributable to common stockholders $(155) $(39) $(41) $(309) $(263) Adjustments: add / (subtract): Gain on amendment of Series B Convertible Preferred Stock — (33) (33) — — Stock divid
Slide 18: GAAP Diluted EPS Loss Reconciliation to Adjusted Diluted EPS
GAAP DILUTED EPS LOSS RECONCILIATION TO ADJUSTED DILUTED EPS (amounts in millions, except per share amounts) Q3 2017 Q3 2016 GAAP diluted loss per share $(0.24) $(0.15) Weighted average shares outstanding 287 265 Net (loss) income attributable to common stockholders $(69) $105 Adjustments: Reversal
Slide 19: Segment Comparable Sales Reconciliation
SEGMENT COMPARABLE SALES RECONCILIATION Performance Solutions Agricultural Solutions (amounts in millions) 2015 2014 2015 2014 Net Sales $801 $755 $1,742 $88 Acquisitions: Alent 847 1,063 OM 142 172 Arysta 87 1,533 CAS 380 Agriphar 170 Comparable Sales $1,791 $1,990 $1,829 $2,171 19 Note: Totals may
Slide 20: Segment Adjusted EBITDA Reconciliation
SEGMENT ADJUSTED EBITDA RECONCILIATION Performance Solutions Agricultural Solutions Total (amounts in millions) Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 YTD YTD YoY% YTD YTD YoY% YTD YTD YoY% Adj. EBITDA $321 $291 10% $274 $261 5% $595 $551 8% Corporate allocations 23 24 23 24 46 49 Adj. EBITDA ex-corp c
Slide 21: Segment Adjusted EBITDA Reconciliation Cont.
SEGMENT ADJUSTED EBITDA RECONCILIATION CONT. Performance Solutions Agricultural Solutions Total (amounts in millions) 2015 2014 YoY% 2015 2014 YoY% 2015 2014 YoY% Adj. EBITDA ex-corp cost $236 $212 11% $379 $16 n/m $616 $228 n/m Acquisitions: Alent 143 175 143 175 OM 28 30 28 30 Arysta 3 293 3 293 C
Slide 22: Segment Constant Currency Reconciliations
SEGMENT CONSTANT CURRENCY RECONCILIATIONS Q3 2017 Constant Currency Impact of Constant Reported (Amounts in millions) Currency Currency Net Sales Performance Solutions $481 $(6) $475 Agricultural Solutions 424 (9) 415 Total $904 $(15) $890 Adjusted EBITDA Performance Solutions $116 $(1) $114 Agricul
Slide 23: Reconciliation to Adjusted Share Counts
RECONCILIATION TO ADJUSTED SHARE COUNTS (in millions) Q3 2017 Q3 2016 Basic outstanding shares 287 278 Number of shares issuable upon conversion of Series B Convertible Preferred Stock - 6 Number of shares issuable upon conversion of PDH Common Stock 5 8 Number of shares issuable upon conversion of
Slide 24: Segment Organic Sales Growth
SEGMENT ORGANIC SALES GROWTH Three Months ended 9/30/2017(1) Reported Net Sales Impact of Organic Sales Metals Acquisitions Growth Currency Growth Performance Solutions 6% (1%) (1%) 0% 4% Agricultural Solutions (3%) (2%) 0% 0% (5%) Total 2% (2%) 0% 0% (1%) Nine Months ended 9/30/2017(1) Reported Net
Slide 25: Return on Invested Capital Reconciliation
RETURN ON INVESTED CAPITAL RECONCILIATION Total ($ in millions) 2016 Adj. EBITDA $769 (+) Rent expense 37 (+) R&D expense 84 (-) Statutory tax rate impact (312) Adj. Operating Income $579 Invested Capital Total Assets $10,054 (-) current liabilities excluding current installments of long-term debt a
Slide 26: Non-GAAP Information
NON-GAAP INFORMATION Adjusted Earnings Per Share (EPS): Adjusted earnings per share is defined as net loss attributable to common stockholders adjusted to reflect adjustments consistent with our definition of adjusted EBITDA. Additionally, the company eliminates the amortization associated with (i)