Slide 1: First Quarter 2019 Earnings Presentation
First Quarter 2019 Earnings Presentation 1May 2019
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
Slide 3: First Quarter 2019 Highlights
First Quarter 2019 Highlights Strategic Financial Completed the sale of Arysta LifeScience Constant currency adjusted EBITDA* increased 1% year-over-year, despite challenging end- market headwinds Launched Element Solutions ~$3 million of additional corporate cost savings realized in first quarter1
Slide 4: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results Continuing Operations Constant ▪ Organic net sales* declined 3% year-over-year in Q1 Currency* Organic* 2019, primarily driven by weak global demand in consumer electronics and Asian automotive markets ($ in millions) Q1 2019 Q1 2018 YoY% YoY% YoY% o Continued we
Slide 5: First Quarter 2019 Segment Details
First Quarter 2019 Segment Details Market Commentary Electronics Industrial & Specialty ▪ Year-over-year declines in mobile device shipments in Q1 2019, ▪ Weaker global production particularly in China and western Europe continuing the trend from Q4 2018 impacted end-markets o Assembly buoyed by inc
Slide 6: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Continuing Operations Key Cash Flow Items Balance Sheet Management ▪ YTD Q1 free cash flow* from continuing operations of $54 million on ▪ Net-debt to adj. EBITDA ratio* below 3.5x an adjusted basis, which excludes the impact of our prior capital structure
Slide 7: Full Year 2019 Financial Guidance
Full Year 2019 Financial Guidance Q1 2019 Update Electronics Industrial & Specialty ▪ Continuation of Q1 softness into Q2, particularly ▪ Multiple share gain opportunities expected to help in Circuitry markets offset automotive slowdown which is expected to sustain through at least Q2 ▪ Electronic c
Slide 8: 2019 Priorities
2019 Priorities Successful Launch of Element Solutions Delivery of Financial Commitments and Strategic Initiatives Compelling Free Cash Flow Growth Capital Allocation to Compound Long-Term Shareholder Value 8
Slide 9: Appendix
Appendix 9
Slide 10: Capital Structure
Capital Structure ($ millions) Instrument Maturity Coupon 3/31/2019 Corporate Revolver 1/31/2024 LIBOR plus 2.25% $120 First Lien Credit Facility - USD Term Loans1 1/31/2026 LIBOR plus 2.25% 748 Other Secured Debt 1 Total First Lien Debt $869 Senior Notes due 2025 12/1/2025 5.875% 800 Other Unsecure
Slide 11: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q1 2019 Q1 2018 Basic outstanding common shares 257 288 Number of shares issuable upon conversion of PDH Common Stock* — 4 Number of shares issuable upon conversion of Series A Preferred Stock 2 2 Number of shares issuable upon vesting an
Slide 12: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA (Continuing Operations) ($ millions) Q1 2019 Q1 2018 Net income attributable to common stockholders $23 $37 Add (subtract): Net income attributable to the non-controlling interests 1 1 Income from discontinued operations, n
Slide 13: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income Reconciliation to Adjusted Diluted EPS (Continuing Operations) ($ millions, except per share amounts) Q1 2019 Q1 2018 Net income attributable to common stockholders $23 $37 Net income from discontinued operations attributable to common stockholders 27 48 Net loss from continuing oper
Slide 14: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation (Continuing Operations) Three Months Ended March 31, 2019 Change in Pass- Reported Net Impact of Constant Organic Net Sales Through Metals Acquisitions Sales Growth Currency Currency Growth Pricing Electronics (8)% 4% (4)% 0% (1)% (5)% Industrial & Specialty (
Slide 15: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): 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 el