Slide 1: Launching Element Solutions and 2018 Preliminary Results
Launching Element Solutions and 2018 Preliminary Results January 2019
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: EBITDA, adjusted EBITDA, adjusted EBITDA guidance, adjusted EBITDA margin, adjuste
Slide 4: Welcome from the Chairman
Welcome from the Chairman What We Announced Today 2018 Sale of Arysta Introducing 2018 Preliminary 2019 Guidance and LifeScience Element Solutions Results Outlook ▪ Platform has obtained ▪ Element Solutions Inc ▪ FY 2018 organic1 net ▪ 2019 guidance for all required regulatory expected to become sal
Slide 5: Platform Specialty Products: 2016-2018
Platform Specialty Products: 2016-2018 Transformative Three Years at Platform Strong organic net sales growth by focusing on faster growing niche end-markets Improved operating rhythm, strategic focus and balance sheet Created a focused company better suited for public markets and more efficient man
Slide 6: Preliminary Unaudited 2018 Full-Year Financial Results
Preliminary Unaudited 2018 Full-Year Financial Results Continuing Operations FY 2018 Preliminary Results ▪ Net sales grew 4% year-over-year in FY 2018, driven by strong performance in Industrial, Constant Assembly and Energy verticals Currency1,* Organic* o Industrial saw stable growth in Europe and
Slide 7: Estimated Net Debt at Close
Estimated Net Debt at Close Instrument Maturity New ESI Revolver ($330 million) 2024 $- New ESI Term Loan B 2026 750 Total First Lien Debt $750 5.875% Senior Notes 2025 800 Total Debt $1,550 Cash Balance ~$550 Net Debt ~$1,000 Preliminary 2018 Adj. EBITDA* $420 to $422 Net Debt to Adj. EBITDA ratio
Slide 8: Launching Element Solutions Inc: Leadership
Launching Element Solutions Inc Leadership Martin E. Franklin Office of the Executive Chairman Chairman Ben Gliklich Scot R. Benson Chief Executive President & Chief Officer Operating Officer Functional Leaders Operating Business Leaders John E. John P. Blake Batley Mike Joe Michael Melanie Steve Ra
Slide 9: Launching Element Solutions Inc: Strategy
Launching Element Solutions Inc Strategy Commercial Excellence Reliably meeting our customers’ needs and demanding excellence and consistency Market Leading Innovation Partnering with customers and OEMs to support the development of their next big idea Enabling Sustainability Developing sustainable
Slide 10: 2019 Guidance and Outlook
2019 Guidance and Outlook Electronics Industrial & Specialty ▪ Continued growth in Semiconductor Solutions ▪ Stable western automotive markets – flat to and available market share opportunity slow growth ▪ Unit growth in broader electronics industry ▪ Continued weakness in Asian automotive Market Ou
Slide 11: 2019 Objectives
2019 Objectives Successful Launch of Element Solutions Inc Delivery of Financial Commitments and Strategic Initiatives Compelling Free Cash Flow Growth Capital Allocation to Compound Long-Term Shareholder Value 10
Slide 12: Appendix
This is the file reference containing the file name/path or docs number For internal distribution only Appendix Confidential / Draft For internal distribution only
Slide 13: Preliminary 4Q 2018 Financial Results
Preliminary 4Q 2018 Financial Results Continuing Operations Preliminary 4Q 2018 Financial Results Constant Organic* Currency1* Q4 2018 Q4 2017 YoY%1 YoY% YoY% ($ in billions) Net Sales $0.48 $0.49 (2)% 1% 1% Electronics 0.28 0.29 (4)% (1)% (1)% Industrial & Specialty 0.20 0.19 1% 4% 4% ($ in million
Slide 14: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Continuing Operations ($ millions) Q4 2018 Q4 2017 FY 2018 FY 2017 Unaudited loss from continuing operations before income taxes and non-controlling $(36) to $ (38) $(108) $(78) to $(80) $(260) interests Add (subtract): Interest expense, net 78 81 311 337 Depreciation expe
Slide 15: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Continuing Operations Three Months Ended December 31, 2018 Change in Pass- Reported Net Impact of Constant Organic Net Sales Through Metals Acquisitions Sales Growth Currency Currency Growth Pricing Electronics (4)% 3% (1)% 0% (1)% (1)% Industrial & Specialty
Slide 16: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share: Adjusted earnings per share is defined as net income (loss) from continuing operations attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminat