Slide 1: Second Quarter 2018
Second Quarter 2018 August 2, 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 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: EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA guidance, adjuste
Slide 4: Platform Q2 Results
PLATFORM Q2 RESULTS Constant Organic2* ▪ Net sales grew 9% driven by organic Currency1* growth in both Performance Solutions and ($ in millions) Q2 2018 Q2 2017 YoY% YoY% YoY% Agricultural Solutions Net Sales $1,023 $941 9% 8% 7% o Year-over-year growth in all Performance Solutions verticals, led by
Slide 5: Performance Solutions Q2 Results
PERFORMANCE SOLUTIONS Q2 RESULTS Net Sales ($mm) ▪ Net sales increased by $40 million or 9%, driven by growth in all verticals and FX tailwind 23 502 ▪ Organic sales* increased 5% in the quarter 16 1 478 462 (0) o Industrial grew in all regions versus the prior year, while Alpha growth was driven by
Slide 6: Agricultural Solutions Q2 Results
AGRICULTURAL SOLUTIONS Q2 RESULTS Net Sales ($mm) ▪ Net sales increased by $42 million or 9%, primarily driven by organic growth in Latin American and North American 46 521 regions 479 1 474 ▪ Organic sales* increased 10% in the quarter (5) o Driven by growth in sales from new products in Brazil and
Slide 7: Platform Balance Sheet & Cash Flow Considerations
PLATFORM BALANCE SHEET & CASH FLOW CONSIDERATIONS Key Cash Flow Items Balance Sheet Management ▪ Q2 free cash flow1* of $74 million ▪ Net debt decreased more than $100 million in the quarter due to free cash flow generation and the translational benefit of a ▪ YTD working capital investment higher t
Slide 8: Announced Sale of Arysta LifeScience to UPL Limited
ANNOUNCED SALE OF ARYSTA LIFESCIENCE TO UPL LIMITED ▪ On July 20th, 2018, Platform announced a definitive agreement to sell its Agricultural Solutions segment, Arysta LifeScience, to UPL Limited at a value of $4.2 billion in cash, subject to certain adjustments o Transaction would conclude the previ
Slide 9: Element Solutions – Financial Outlook
ELEMENT SOLUTIONS – FINANCIAL OUTLOOK Best-in-class cash flow with conservative leverage Long Term Average Target Pro Forma (Excluding Arysta)* Organic Growth Rate* ~3 – 4% ~4% $450 million - $470 million on an Adjusted EBITDA* 23% + margin annualized basis1 ~$30 million Net Capex2* < 2% of sales (<
Slide 10: Element Solutions – Outlook and Phasing
ELEMENT SOLUTIONS – OUTLOOK AND PHASING CONSIDERATIONS ▪ Market Commentary % of Full Year Adj. EBITDA* by Quarter3 o Overall healthy end-markets driven by a supportive macro environment and secular trends supporting Electronics and Industrial markets 2017 2018 o Strong automotive markets in Asia off
Slide 11: 2018 Priorities
2018 PRIORITIES Execution: Build on Operating Momentum and Continue to Drive Above Market Revenue Growth Manage Cost and Drive Margin Expansion through Synergies and Continuous Improvement Generate Free Cash Flow and Reduce Leverage Ensure a Successful Separation to Maximize Shareholder Value 11
Slide 12: Appendix
PLATFORM SPECIALTY PR UCTS CORPORATION rl APPENDIX 12
Slide 13: Platform Current Capital Structure
PLATFORM CURRENT CAPITAL STRUCTURE ($ millions) Instrument Maturity Coupon 6/30/2018 Corporate Revolver 6/7/2020 $60 Term Loan B6 - USD1,2 6/7/2023 L + 300 1,135 Term Loan B7 - USD1 6/7/2020 L + 250 630 Term Loan C5 - EUR1,2 6/7/2023 E + 275 700 Term Loan C6 - EUR1 6/7/2020 E + 250 682 Other Secured
Slide 14: Reconciliation to Adjusted Share Counts
RECONCILIATION TO ADJUSTED SHARE COUNTS (amounts in millions) Q2 2018 Q2 2017 Basic outstanding common shares 288 286 Number of shares issuable upon conversion of PDH Common Stock 4 6 Number of shares issuable upon conversion of Series A Preferred Stock 2 2 Number of shares issuable upon vesting and
Slide 15: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS RECONCILIATION TO ADJ. EBITDA ($ millions) Q2 2018 Q2 2017 Net income (loss) attributable to common stockholders $12 $(61) Add (subtract): Net (loss) income attributable to the non-controlling interests (0) 1 Income tax (benefit) expense (15) 11
Slide 16: GAAP Diluted EPS Reconciliation to Adjusted Diluted EPS
GAAP DILUTED EARNINGS (LOSS) PER SHARE (EPS) RECONCILIATION TO ADJUSTED DILUTED EPS ($ millions, except per share amounts) Q2 2018 Q2 2017 GAAP diluted earnings (loss) per share $0.04 $(0.21) Weighted average shares outstanding 298 286 Net income (loss) attributable to common stockholders $12 $(61)
Slide 17: Quarterly Results Overview
QUARTERLY RESULTS OVERVIEW 2017 2018 ($ millions) Q1 Q2 Q3 Q4 Q1 Q2 Net Sales Performance Solutions $447 $462 $481 $489 $492 $502 Agricultural Solutions 415 479 424 580 472 521 Total Net Sales $862 $941 $904 $1,069 $964 $1,023 Adjusted EBITDA Performance Solutions $102 $103 $116 $112 $112 $117 Agric
Slide 18: Organic Sales Growth Reconciliation
ORGANIC SALES GROWTH RECONCILIATION Q2 2018 Organic Sales Growth Reported Net Impact of Organic Sales Constant Currency Metals Acquisitions Sales Growth Currency Growth Performance Solutions 9% (3)% 5% —% —% 5% Agricultural Solutions 9% 1% 10% —% —% 10% Total 9% (1)% 8% —% —% 7% 18 Note: Totals may
Slide 19: Non-GAAP Definitions
NON-GAAP DEFINITIONS Adjusted Earnings Per Share: Adjusted earnings per share is defined as net income (loss) attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminates the amortization associa