Slide 1: Fourth Quarter and Full Year 2019 Earnings Presentation
Fourth Quarter and Full Year 2019 Earnings Presentation February 1 2020
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Unless otherwise specified, the results included in this presentation exclude discontinued operations relating to the Company's former Agricultural Solutions business sold on January 31, 2019. Please note that in this presentation, we may discuss events or results that have
Slide 3: Full Year 2019 Highlights
Full Year 2019 Highlights Successful Execution against 2019 Priorities Delivery of Capital Allocation Successful Launch Financial Compelling Free to Compound of Element Commitments and Cash Flow Growth Long-Term Solutions Strategic Initiatives Shareholder Value ▪ Developed and reinforced identity, i
Slide 4: Fourth Quarter 2019 Financial Results
Fourth Quarter 2019 Financial Results Constant ▪ Organic net sales* declined 4% year-over-year, Currency* Organic* primarily due to weak global demand in automotive markets impacting both segments ($ in millions) Q4 2019 Q4 2018 YoY YoY YoY o Persisting soft demand, primarily in Net Sales $455 $478
Slide 5: Full Year 2019 Financial Results
Full Year 2019 Financial Results Constant ▪ Organic net sales* declined 4%, driven by a broad Currency* Organic* industrial slowdown in Asia, primarily China, and global demand softness in high-end smart phone and ($ in millions) FY 2019 FY 2018 YoY YoY YoY automotive markets Net Sales $1,836 $1,961
Slide 6: Full Year 2019 Segment Details
Full Year 2019 Segment Details Market Commentary Electronics Net Sales ($ in millions) ▪ Assembly: demand weakness in broader electronics 1,158 1% markets, particularly in Asia and the Americas, was partially 1,086 offset by increased demand for assembly products for (3%) (2%) (2%) (1%) automotive e
Slide 7: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Continuing Operations Key Cash Flow Items Balance Sheet Management ▪ FY 2019 free cash flow* from continuing operations on an adjusted ▪ Net debt to adj. EBITDA ratio* of 3.2x on a LTM basis as of basis* of $238 million, which excludes the impact of prior c
Slide 8: Full Year 2020 Financial Guidance
Full Year 2020 Financial Guidance As of January 2020 Electronics Industrial & Specialty ▪ Expect modest year-over-year growth in volumes of ▪ Flat to slightly down global automotive production high-end mobile devices and electronic wearables, in line with expected product launches ▪ Demand recovery
Slide 9: 2020 Priorities
2020 Priorities Execution and Operating Rhythm Delivery of Financial Commitments Compelling Free Cash Flow Growth Capital Allocation to Compound Long-Term Shareholder Value 9
Slide 10: Appendix
Appendix 10
Slide 11: Capital Structure
Capital Structure ($ millions) Instrument Maturity Coupon 12/31/2019 Corporate Revolver 1/31/2024 LIBOR plus 2.25% $— First Lien Credit Facility - USD Term Loans1 1/31/2026 LIBOR plus 2.00% 742 Other Secured Debt 1 Total First Lien Debt $743 Senior Notes due 2025 12/1/2025 5.875% 800 Total Unsecured
Slide 12: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q4 2019 Q4 2018 FY 2019 FY 2018 (Average) (Average) Basic outstanding common shares 250 289 254 288 Number of shares issuable upon conversion of PDH Common Stock — 4 — 4 Number of shares issuable upon conversion of Series A Preferred Stoc
Slide 13: Net Income Reconciliation to Adj. EBITDA (2019)
Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Net income (loss) attributable to common stockholders $23 $2 $(7) $74 $92 Add (subtract): Net income (loss) attributable to the non-controlling interests 1 0 — 0 1
Slide 14: Net Income Reconciliation to Adj. EBITDA (2018)
Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Net income (loss) attributable to common stockholders $37 $12 $(409) $35 $(324) Add (subtract): Net income (loss) attributable to the non-controlling interests 1 0
Slide 15: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income (Loss) Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q4 2019 Q4 2018 FY 2019 FY 2018 Net income (loss) attributable to common stockholders $74 $35 $92 $(324) Net income (loss) from discontinued operations attributable to common stockholders 0 48 13 (24
Slide 16: Quarterly Results Overview
Quarterly Results Overview 2018 2019 ($ millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales Electronics $288 $296 $292 $282 $266 $268 $280 $272 Industrial & Specialty 205 206 197 196 194 189 185 183 Total Net Sales $493 $502 $489 $478 $460 $457 $465 $455 Adjusted EBITDA Electronics $60 $65 $65 $58 $56 $60 $
Slide 17: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended December 31, 2019 Change in Pass- Reported Net Impact of Constant Organic Net Sales Through Metals Acquisitions Sales Growth Currency Currency Growth Pricing Electronics (4)% 1% (3)% 0% (1)% (4)% Industrial & Specialty (7)% 1% (6)% —% —% (6)
Slide 18: 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. In particular, the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period basis.