Element Solutions Inc. · NYSE:ESI
Element Solutions — Platform Specialty Products — Q1 2017 Earnings Presentation
17 slides from Element Solutions's earnings presentation, May 8, 2017
Slide 1: First Quarter 2017
First Quarter 2017 May 8, 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, adjusted EBITDA guidance, adjusted earnin
Slide 4: Platform First Quarter Results
Platform First Quarter Results Constant Currency1* Organic2* • Net sales grew 5% driven by organic growth in both segments partially offset by an FX ($ in millions) Q1 2017 Q1 2016 YoY% Q1 2017 YoY% YoY% headwind in Performance Solutions • GAAP EPS loss of $0.09 decreased significantly year over yea
Slide 5: Performance Solutions Results
Performance Solutions Results Net Sales • Net sales increased by $27 million over 1Q16 due primarily 447 to organic business growth and metals price increases 450 20 offset by FX headwinds 13 427 • EUR and GBP exposures driving FX headwinds 430 420 3 • $3 million benefit from OM Malaysia (acquired i
Slide 6: Agricultural Solutions Results
Agricultural Solutions Results Net Sales 420 • Net sales increased $11 million over 1Q16 period driven by 8 415 volume & mix improvements and minimal FX benefits 410 404 3 407 • Successful territorial expansion initiatives in Europe offset by colder growing conditions in both North 400 America and E
Slide 7: Balance Sheet & Cash Flow Considerations
Balance Sheet & Cash Flow Considerations Working Capital Balance Sheet Management • First quarter represents annual working capital peak • In early April, repriced $1.93 billion of Term Loans primarily driven by Agricultural Solutions business • Estimated annual interest savings of ~$20 • YoY improv
Slide 8: 2017 Guidance – Q1 Update
2017 Guidance – Q1 Update Performance Solutions Agricultural Solutions Market • Modest global GDP expectations with • Modest recovery assumed in global Commentary slower growth in Europe commodity prices • Western automotive leveling off and further • Ag chemical markets expected to be flat to growt
Slide 9: 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 9
Slide 10: Appendix
PLATFORM SPECIALTY PR UCTS CORPORATION rl Appendix 10
Slide 11: Capital Structure
Capital Structure $ millions Instrument Maturity Coupon 3/31/2017 Corporate Revolver ($500M) 6/7/2019 $85 Term Loan B4 - USD 1,2 6/7/2023 L + 400 1,468 Term Loan B5 - USD 2 6/7/2020 L + 350 607 Term Loan C3 - EUR 1,2 6/7/2023 E + 375 459 Term Loan C4 - EUR 2 6/7/2020 E + 325 742 Other Secured Debt 1
Slide 12: Walk to Adjusted Share Counts
Walk to Adjusted Share Counts (Amounts in millions) 1Q 2017 Basic outstanding shares 286 Number of shares issuable upon conversion of PDH Common Stock 6 Number of shares issuable upon conversion of Series A Preferred Stock 2 Stock options 1 Equity awards granted 6 Adjusted shares 300 12 Note: Totals
Slide 13: Net Loss Attributable to Common Stockholders Reconciliation to Adjusted EBITDA
Net Loss Attributable to Common Stockholders Reconciliation to Adjusted EBITDA (Amounts in millions) Q1 2017 Q1 2016 Net loss attributable to common stockholders $(24) $(135) Net income attributable to the non-controlling interests 1 — Income tax expense 19 18 Loss before income taxes and non-contro
Slide 14: 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) Q1 2017 Q1 2016 GAAP diluted loss per share $(0.09) $(0.59) Weighted average shares outstanding 285 230 Net loss attributable to common stockholders $(24) $(135) Adjustments: Reversal of amor
Slide 15: Quarterly Results Overview
Quarterly Results Overview 2016 2017 (Amount in millions) Q1 Q2 Q3 Q4 Q1 Net Sales Performance Solutions $420 $438 $455 $457 $447 Agricultural Solutions 404 484 436 493 415 Total Net Sales $824 $922 $891 $950 $862 Adjusted EBITDA Performance Solutions $83 $98 $110 $111 $102 Agricultural Solutions 85
Slide 16: 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 17: 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
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