Element Solutions Inc. · NYSE:ESI
Element Solutions — Bank of America 2022 Global Agriculture & Materials Conference
13 slides from Element Solutions's conference presentation, Mar 3, 2022
Slide 1: Bank of America 2022 Global Agriculture & Materials Conference
Bank of America 2022 Global Agriculture & Materials Conference March 3, 2022 Chemistry Enabling Enabling Sustainable Technology. Growth Growing Sustainably.
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: Full year 2021 highlights
Full year 2021 highlights Winning now, winning later • Capitalized on continued strength in electronics and recovering industrial end-markets, despite ongoing supply chain challenges • Refined operating system and increased internal and external investment to accelerate future growth outlook Deliver
Slide 4: A track record of performance
A track record of performance GROWTH IN EXCESS OF END-MARKETS… AND STRONG INCREMENTAL MARGINS1 $ in millions (YoY Growth %) 2019 2020 2021 $2,400 +190 bps 7.0% CAGR Margin Expansion $1,961 Sales ESI Organic Sales* (4%) (3%) 13% 22% Auto Units (6%) (16%) (1%) 20% Smartphone Units (4%) (6%) 1% $421 7.
Slide 5: Positioned for profitable growth
Positioned for profitable growth Robust secular growth drivers Next Generation 20% 5G handset ▪ High reliability, low latency circuit board chemistry to enable next-gen mobile phones and Wireless growth forecast infrastructure ’21-’25 ▪ Fine feature solder paste to enable greater computing power in
Slide 6: 5-year growth algorithm & targets
5-year growth algorithm & targets Compelling path forward NET SALES ADJ. EBITDA* ADJ. EPS* OPERATIONAL EXCELLENCE AND TARGET TARGET TARGET PRUDENT CAPITAL ALLOCATION ~13% ~3%+ Our Target HSD% 5 Year Adj. EPS* of 2-3% Cumulative Free $2.50 by 2026 5-6% Cash Flow* of at ~13% adj. EPS* CAGR 30-40% 1-2%
Slide 7: Full year 2022 financial guidance
Full year 2022 financial guidance As of February 2022 FY Adj. $575 million to $590 million EBITDA* (13-16% constant currency growth) FY Adjusted $1.55 - $1.60 EPS* (12-16% growth) Free Cash Flow* $310 million - $325 million • Expect Q1 2022 adjusted EBITDA* approximately flat YoY at constant currenc
Slide 8: Appendix
Appendix Chemistry Enabling Enabling Sustainable Technology. Growth Growing Sustainably.
Slide 9: Net income (loss) attributable to common stockholders reconciliation to adjusted EBITDA
Net income (loss) attributable to common stockholders reconciliation to adjusted EBITDA ($ millions) 2018 2021 Net income (loss) attributable to common stockholders $(324) $203 Add (subtract): Net income (loss) attributable to the non-controlling interests 5 0 Loss (income) from discontinued operati
Slide 10: GAAP net income (loss) reconciliation to adjusted diluted EPS
GAAP net income (loss) reconciliation to adjusted diluted EPS ($ millions, except per share amounts) FY 2018 FY 2021 Net (loss) income attributable to common stockholders $(324) $203 Net (loss) income from discontinued operations attributable to common stockholders (246) 0 Net (loss) income from con
Slide 11: Free cash flow & organic net sales growth reconciliation
Free cash flow & organic net sales growth reconciliation ($ millions) FY 2019 FY 2020 FY 2021 Cash flows from operating activities $ 171 $ 276 $ 326 Capital expenditures (30) (29) (46) Disposal of property, plant and equipment 5 2 - Free cash flows $ 146 $ 249 $ 280 Adjustments to arrive at free cas
Slide 12: Adjusted net sales, gross profit and gross profit margins
Adjusted net sales, gross profit and gross profit margins ($ millions) 2018 2021 Net sales $1,961 $2,400 Historical adjustment for Assembly metals pass-through price impact 147 0 Metal price adjusted net sales 2,108 2,400 Less: Impact of using constant FX rates across all periods 1 (3) 15 Less: Part
Slide 13: Non-GAAP definitions
Non-GAAP definitions Adjusted Earnings Per Share (EPS) Adjusted EPS is a key metric used by management to measure operating performance and trends, as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period
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