Slide 1: Citi Basic Materials Conference
Citi Basic Materials Conference November 27, 2018
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 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 margin, adjusted EBITDA guidance, adjuste
Slide 4: Third Quarter 2018 Update
THIRD QUARTER 2018 UPDATE Constant ▪ Net sales grew 2% year-over-year driven Currency1* Organic2* primarily by organic growth in each of our businesses, which was partially offset by ($ in millions) Q3 2018 Q3 2017 YoY% YoY% YoY% $10 million of currency headwinds Net Sales $489 $481 2% 4% 3% ▪ 2018
Slide 5: Introducing Element Solutions Inc
Introducing Element Solutions Inc
Slide 6: Introducing Element Solutions Inc
Introducing Element Solutions Inc A Leading Diversified Specialty Chemicals Company Chemical Technology Enabling Performance and Innovation Element Solutions provides high-quality, differentiated specialty chemical solutions to a broad range of global manufacturing end-markets Our chemical technolog
Slide 7: Element Solutions' Business Profile
Element Solutions’ Business Profile Electronics Industrial & Specialty Product Markets Key End-Markets Product Markets Semiconductors ▪ Consumer electronics Offshore 10% Other ~15% ▪ Telecom infrastructure ~10% Decorative & ▪ Automotive electronics Chromium & Plating-On- Plastic ▪ Servers & data sto
Slide 8: Integrated into the Electronics and Automotive Supply Chain
Integrated into the Electronics and Automotive Supply Chain Element Solutions works within multiple levels of complex supply chains to help its customers, including OEMs, solve their design problems and support their product development processes – despite representing only a small portion of overal
Slide 9: Element Solutions' Touch Points Within Mobile Phones
Element Solutions’ Touch Points Within Mobile Phones Element Solutions enables multiple steps and customer types within the mobile phone production process through products such as plating technologies, assembly solutions, semiconductor materials / packaging, and decorative finishes Copper Damascene
Slide 10: Element Solutions' Touch Points Within Automobiles
Element Solutions’ Touch Points Within Automobiles Element Solutions’ formulations are used throughout the auto production process, and appear in some components that you can see and many components that are embedded within. While often specified by the OEM, our chemistries are applied by a number o
Slide 11: Increasing Complexity of Electronic Content Per Unit in Emerging Technologies
Increasing Complexity of Electronic Content Per Unit in Emerging Technologies Emerging Technologies Complexity Translates Autonomous PCB Application Growth to Margin and Market & Electric by Industry Share Opportunities Vehicles (2017-2022 CAGR) for Element Solutions Internet of Automotive 4.7% Thin
Slide 12: Element Solutions' Compelling Path to Value Creation
Element Solutions’ Compelling Path to Value Creation Long-term Focus on Compounding Cash Flow Through Efficient Operations and Prudent Capital Allocation Differentiated Capabilities ▪ Customer-centric innovation process combined with next generation development that Compounding will lead to continuo
Slide 13: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy With strong and stable free cash flow* generation and a healthy balance-sheet, Element Solutions will have financial flexibility to support organic investment in strategic priority markets, measured M&A and shareholder capital returns Targeted Net Debt to Adj. EBI
Slide 14: Appendix
PLATFORM SPECIALTY PR UCTS CORPORATION rl APPENDIX 13
Slide 15: Net Loss Reconciliation to Adj. EBITDA (Continuing Operations)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS RECONCILIATION TO ADJ. EBITDA (CONTINUING OPERATIONS) ($ millions) Q3 2018 Q3 2017 Net loss attributable to common stockholders $(409) $(69) Add (subtract): Net income attributable to the non-controlling interests 3 3 Loss from discontinued operations, ne
Slide 16: GAAP Net Loss Reconciliation to Adjusted Diluted EPS
GAAP NET LOSS RECONCILIATION TO ADJUSTED DILUTED EPS AND NORMALIZED ADJUSTED DILUTED EPS (CONTINUING OPERATIONS) ($ millions, except per share amounts) Q3 2018 Q3 2017 Net loss attributable to common stockholders $(409) $(69) Net loss from discontinued operations attributable to common stockholders
Slide 17: Reconciliation to Adjusted Share Counts
RECONCILIATION TO ADJUSTED SHARE COUNTS (amounts in millions) Q3 2018 Q3 2017 Basic outstanding common shares 288 287 Number of shares issuable upon conversion of PDH Common Stock 4 5 Number of shares issuable upon conversion of Series A Preferred Stock 2 2 Number of shares issuable upon vesting and
Slide 18: Quarterly Results Overview; Organic Sales Growth Reconciliation
QUARTERLY RESULTS OVERVIEW (CONTINUING OPERATIONS) 2017 2018 ($ millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales $447 $462 $481 $489 $492 $502 $489 Adjusted EBITDA $94 $96 $108 $104 $104 $109 $108 ORGANIC SALES GROWTH RECONCILIATION (CONTINUING OPERATIONS) Organic Sales Growth Reported Net Impact of Organic
Slide 19: Non-GAAP Definitions
NON-GAAP DEFINITIONS Adjusted Earnings Per Share: Adjusted earnings per share is defined as net loss from continuing operations attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminates the am