Slide 1: Citi Basic Materials Conference
Citi Basic Materials Conference November 29, 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
Slide 3: Non-GAAP Disclosure
Non-GAAP Disclosure 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, adjusted EBITDA guidance, comparable net s
Slide 4: Agenda
Agenda Platform Overview Recent Updates Conclusion Q&A Appendices 4
Slide 5: Platform Overview
PLATFORM SPECIALTY PRODUCTS CORPORATION ml Platform Overview
Slide 6: Platform Business Segments
Platform Business Segments $1.8bn 2015 Comparable Sales $407m 2015 Comparable Adj. EBITDA 1 INDUSTRIAL SOLUTIONS ELECTRONIC SOLUTIONS GRAPHIC SOLUTIONS OFFSHORE SOLUTIONS Corrosion resistance Circuit board metallization Solder paste Flexographic Temperature and PRODUCTS Decorative finish
Slide 7: Platform Comparable Financial Overview (Non-GAAP)
Platform Comparable Financial Overview (Non-GAAP) 2015 Sales: $3.6bn Adj. EBITDA: $742m Employees: ~8,500 $741 m $955 m $948 m Performance Agricultural Solutions Solutions Sales: $1.8 bn Sales: $1.8bn Adj. EBITDA: Adj. EBITDA: $289 m $407m1 $382m 1 $687 m Employees: ~4,500 Employees: ~4,000 Automoti
Slide 8: Platform is Building a Global, Diversified Specialty Chemicals Company
Platform is Building a Global, Diversified Specialty Chemicals Company “Asset-Lite, High-Touch” Business Model that Drives Free Cash Flow − Businesses driven by people, partnerships and supply chain as opposed to heavy manufacturing − Low capex requirements and highly variable cost structure − Sig
Slide 9: Recent Updates
r PLATFORM SPECIALTY Va PR ODUCTS CORPORATION Recent Updates
Slide 10: Recent Update Summary
Recent Update Summary 1. Investor Day Recap – Segment Strategy – Long Term Objectives 2. Third Quarter Results 3. Synergy Update 4. Guidance Update 5. Balance Sheet Update 10
Slide 11: 2016 Investor Day Recap
2016 Investor Day Recap Business Unit Strategy Overview Become integral to customer’s supply chain with a two pronged selling approach (OEM and applicator level) Performance Solutions − Customer focused innovation with OEMs utilizing our unmatched product breadth − Best-in-class customer service a
Slide 12: Q3 2016 Financial Results
Q3 2016 Financial Results Actual Comparable1* Comparable Constant Currency2* Organic3* ($ in millions) Q3 2016 Q3 2015 YoY% Q3 2016 Q3 2015 YoY% Q3 2016 Q3 2015 YoY% YoY% Net Sales $891 $597 49% $891 $866 3% $889 $866 3% 3% EPS - Diluted $(0.15) $(0.66) nm Adj. EBITDA* 190 114 45% 190 166 14% 188 16
Slide 13: Q3 Business Segment Drivers
Q3 Business Segment Drivers Performance Solutions Agricultural Solutions − Share gains in Asian automotive markets − Continued growth with high value − Successful product launches and biosolutions, animal health and newly penetration in core electronics markets launched products Q3 − Strong automoti
Slide 14: Q3 Cost Synergies
Q3 Cost Synergies Agricultural Solutions Performance Solutions $ in millions $ in millions Realized YoY Cost Synergies Realized YoY Cost Synergies $25 $25 $19 $20 $20 $20 $20 $5 $20 $8 $14 $15 $15 $11 $10 $10 $5 $5 $0 $0 1H Q3 YTD 2016 Target 1H Q3 YTD 2016 Target $13 million of new cost synergies r
Slide 15: Bridging to Updated Guidance
Bridging to Updated Guidance Improved 2016 Adjusted EBITDA1 guidance to $750 - $765 million2 $ in millions 800 765 750 184 750 700 ~$22 million of growth from organic performance, FX 650 and synergies3 600 551 550 500 3Q16 YTD Adj. EBITDA Q415 Adj. EBITDA Q416 Organic Growth / FX 2016 Adj EBITDA / S
Slide 16: Balance Sheet Activity
Balance Sheet Activity Series-B settlement − Negotiated alternative settlement driving ~ $100mm of savings1 − 5.5 million shares issuable upon conversion − $460m cash payments to settle remaining shares and cash make-whole on or before December 15, 2016 ~$400mm equity raise − Successfully issued
Slide 17: Conclusion
r PLATFORM SPECIALTY Va PR ODUCTS CORPORATION Conclusion 17
Slide 18: Conclusion - 2016 Priorities
Conclusion - 2016 Priorities Integration and Synergy Realization Focus Commercial Efforts on Fast Growing Niches Establish Operating Rhythm and Momentum Generate Free Cash Flow 18
Slide 19: Appendices
r PLATFORM SPECIALTY Va PR ODUCTS CORPORATION Appendices 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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, tha
Slide 21: 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 22: 2015 Net (Loss) Income Reconciliation to Comparable Adjusted EBITDA
2015 Net (Loss) Income Reconciliation to Comparable Adjusted EBITDA Platform Arysta Alent OM OM Comparable Malaysia (amounts in millions) 2015 1/1 - 1/1 – 1/1 – 2015 2015 2/12/2015 11/30/2015 10/27/2015 Net (loss) income available to common stockholders $(309) $(65) $55 $2 $10 $(307) Adjustments to
Slide 23: 2016 Q3 Net Income Reconciliation to Adjusted EBITDA
2016 Q3 Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adjusted EBITDA (amounts in millions) Q3 2016 Q3 2015 Net income (loss) attributable to common stockholders $105 $(140) Gain on amendment of Series B Convertible Preferred Stock (33) - Net (loss) income attributable to t
Slide 24: Comparable Net Income Reconciliation to Adjusted EBITDA
Comparable Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adjusted EBITDA (amounts in millions) Q3 2016 Q2 2016 Q1 2016 2016 YTD Q4 2015 Net income (loss) attributable to common stockholders $105 $(9) $(135) $(39) $(130) Pre-acquisition activity of acquired companies - - - -
Slide 25: 2015 Reported Segment Results Reconciliation to Comparable Segment Results
2015 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 Corporate cost a
Slide 26: Q3 2015 Reported Segment Results Reconciliation to Comparable Segment Results
Q3 2015 Reported Segment Results Reconciliation to Comparable Segment Results Q3 2015 Comparable Sales Q3 2015 Comparable Adj. EBITDA (amounts in millions) (amounts in millions) Performance Solutions $180 Performance Solutions $58 Acquisitions: Acquisitions: Alent 227 Alent 42 OM 41 OM 11 Corporate
Slide 27: Walk to Pro Forma Share Count
Walk to Pro Forma Share Count Series B Pro Forma (amounts in millions) 6/30/2016 Q3 Activity 9/30/2016 Settlement(1) 9/30/2016 Basic outstanding shares 229.6 48.8 278.4 5.5 283.9 Number of shares issuable upon conversion of Series B Convertible Preferred Stock 22.1 - 22.1 (22.1) - Number of shares i
Slide 28: Q3 Organic Sales Reconciliation
Q3 Organic Sales Reconciliation Performance Agricultural Total Solutions Solutions (amounts in millions) Q3 2016 YoY% Q3 2016 YoY% Q3 2016 YoY% Change in net comparable sales $7 1.6% $18 4.4% $25 2.9% Dispositions - - 9 2.3 9 1.1 Foreign exchange impacts 8 1.8 (10) (2.4) (2) (0.2) Impact of metal pr
Slide 29: YTD Organic Sales Reconciliation
YTD Organic Sales Reconciliation Q1 2016 Q2 2016 Q3 2016 YTD 2016 (amounts I n millions) $ YoY% $ YoY% $ YoY% $ YoY% Change in net comparable sales $(73) (8.2)% $(30) (3.1)% $25 2.9% $(78) (2.9)% Partial period impacts / dispositions 8 0.9 9 1.0 9 1.1 26 1.0 Foreign exchange impacts 49 5.5 34 3.7 (2
Slide 30: GAAP Common EPS Reconciliation to Comparable Adj. EPS
GAAP Common EPS Reconciliation to Comparable Adj. EPS (amounts in millions except per share) Q3 2016 Q3 2015 GAAP common gain (loss) per share $0.45 $(0.66) Weighted average shares outstanding (in millions) 234 211 Net income (loss) attributable to common stockholders $105 $(140) Pre-acquisition act
Slide 31: Q3 2016 Foreign Exchange Impact
Q3 2016 Foreign Exchange Impact Q3 2016 Results ($ in millions) As Reported FX Impacts Constant Currency Net Sales Performance Solutions $455 $8 $463 Agricultural Solutions 436 (10) 426 Total Net Sales $891 $(2) $889 Adj. EBITDA Performance Solutions $110 $3 $113 Agricultural Solutions 80 (5) 75 Tot