Slide 1: 2016 Credit Suisse Basic Materials Conference
2016 Credit Suisse Basic Materials Conference September 13, 2016
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 For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are i
Slide 4: Platform GAAP Financial Performance
PLATFORM GAAP FINANCIAL PERFORMANCE GAAP SALES (2012–2015) REPORTED SEGMENT ADJ. EBITDA (1) (2012 – 2015) ($ in millions) ($ in millions) 568 2,542 343 212 162 153 16 196 224 27 1,741 2012 1/1-10/31 Inception - 2014 2015 2013 12/31 2013 MacDermid acquisition CAPEX (INCLUDING REGISTRATION RIGHTS) clo
Slide 5: Platform Comparable Financial Overview (Non-GAAP)
PLATFORM COMPARABLE FINANCIAL OVERVIEW (NON-GAAP) 2015 Sales: $3.6bn Adj. EBITDA: $742m Employees: ~8,500 $741mm $955 mm $948 mm Performance Agricultural Solutions Solutions Sales: $1.8 bn Sales: $1.8bn Adj. EBITDA: Adj. EBITDA: $407m(1) $382m (1) $687 mm $289 mm Employees: ~4,500 Employees: ~4,000
Slide 6: Performance Solutions "MPS" Overview
PERFORMANCE SOLUTIONS “MPS” OVERVIEW $1.8bn 2015 Comparable Sales $407m 2015 Comparable Adj. EBITDA INDUSTRIAL SOLUTIONS ELECTRONICs SOLUTIONS GRAPHICS SOLUTIONS OFFSHORE SOLUTIONS Corrosion resistance Circuit board metallization Solder paste Flexographic Temperature and PRODUCTS Decorat
Slide 7: Agricultural Solutions "Arysta" Overview
AGRICULTURAL SOLUTIONS “ARYSTA” OVERVIEW $1.8bn 2015 Comparable Sales $382m 2015 Comparable Adj. EBITDA FUNGICIDES HERBICIDES INSECTICIDES BIOSOLUTIONS SEED-TREATMENT KEY PRODUCTS SALES SALES BY BY CROP CROP FOCUS SALES SALES BY BY PRODUCT PRODUCT SALES SALES BY BY GEOGRAPHY GEOGRAPHY Fungicides 2
Slide 8: Unique Business Model in the Industry
UNIQUE BUSINESS MODEL IN THE INDUSTRY ASSET-LITE / HIGH-TOUCH “Generics”: Discovery Focused Arysta: Asset-Lite, Off-Patent AI Value chain Manufacturers Companies High-Touch focus Active ingredient Arysta has access to a library of Discovery hundreds of active ingredients (AIs) New Product Developm
Slide 9: Platform & the Business Units
PLATFORM & THE BUSINESS UNITS Governance Strategy & Execution Commercial Public Company Audit & Compliance R&D Requirements Shared Services Supply Chain and Operations Objectives & Incentives Risk Management Capital Allocation Leadership & HR Strategy 8
Slide 10: Platform's Long-Term Objectives
PLATFORM’S LONG-TERM OBJECTIVES 1 Portfolio of high-quality and differentiated businesses 2 Leading positions in our priority markets 3 Organic sales growth faster than end-markets we serve 4 Healthy and flexible balance sheet 5 Best-in-class margins and returns on invested capital Platform’s long-t
Slide 11: Winning Strategies – MacDermid Performance Solutions
WINNING STRATEGIES – MACDERMID PERFORMANCE SOLUTIONS ORGANIC REVENUE GROWTH PATH Become integral: products and people without which the supply chain breaks down Two-pronged selling strategy − Strategic OEM relationships which leverage market leading position across several complementary portions
Slide 12: Winning Strategies – Arysta LifeScience
WINNING STRATEGIES – ARYSTA LIFESCIENCE ORGANIC REVENUE GROWTH PATH Focus on fast-growing niche segments where Arysta can lead with differentiated solutions Continue to be a favored post-patent partner given formulation and regulatory expertise Leverage our access to active ingredients via tec
Slide 13: Strategic Organic Long-Term Goals
STRATEGIC ORGANIC LONG-TERM GOALS Ag Solutions LONG-TERM CAGR: ~5% AVERAGE Platform CAGR: SALES Perf Solutions ~4% GROWTH CAGR: 3 – 4% High Single Digit Adj. EBITDA Growth CAGR Adj. EBITDA COGS Reduction: Margin FIVE YEAR ~200 bps Expansion: OPERATING Goal to achieve LEVERAGE Mid-Single Digits Debt
Slide 14: Guiding Principles
GUIDING PRINCIPLES TODAY IN CONTEXT Achieve 2016 financial commitments – EBITDA & CF On track to realize $150M of acquisition synergies Platform Path to Value Over the plan period, organically grow revenues above our Achieve Creation end markets - in the mid-single-digit range Financial Achi
Slide 15: Questions?
QUESTIONS? yal ho PRODUCTS CORPORATI p p ON LATFORM SPECIALTY DUCTS CORPORATION MacDermid & Arysta PERFORMANCE SOLUTIONS
Slide 16: Appendices
APPENDICES Da Proaucr Cowmonenon RPORATION 15
Slide 17: Review of Realized and Estimated Synergies (Non-GAAP)
REVIEW OF REALIZED AND ESTIMATED SYNERGIES (NON-GAAP) PERFORMANCE SOLUTIONS ESTIMATED SYNERGIES $150M General & Administrative Corporate and G&A overhead Public company costs $59M Cost of Goods Sold $70M Overlapping production capabilities Economies of scale On Track to Supply chain overla
Slide 18: Non-GAAP Definitions
NON-GAAP DEFINITIONS Adjusted EBITDA: Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, as further adjusted for additional items included in earnings that are not representative or indicative of our ongoing business as described in the footnotes to the non
Slide 19: Net (Loss) Income Reconciliation to Comparable Adjusted EBITDA
NET (LOSS) INCOME RECONCILIATION TO COMPARABLE ADJUSTED EBITDA Platform Arysta Alent OM OM Comparable Malaysia (amounts in millions) 1/1 - 1/1 – 1/1 – 2/12/2015 11/30/2015 10/31/2015 Net (loss) income available to common stockholders $(309) $(65) $55 $2 $10 $(307) Adjustments to reconcile net (loss)
Slide 20: Reported Segment Results Reconciliation to Comparable Segment Results
REPORTED SEGMENT RESULTS RECONCILIATION TO COMPARABLE SEGMENT RESULTS 2015 COMPARABLE SALES 2015 COMPARABLE ADJ. EBITDA (amounts in millions) (amounts in millions) Performance Solutions $801 Performance Solutions $224 Acquisitions: Acquisitions: Alent 848 Alent 143 OM 142 OM 28 Performance Solutions