Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation 1July 2021
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: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Highly complementary & Strong operational execution strategic acquisitions ▪ Organic net sales* increased 30% year-over-year, lapping severe impact of COVID in Q2 2020 with sustained growth in high-end electronics markets and automotive / industrially oriented business
Slide 4: Second Quarter 2021 Segment Details
Second Quarter 2021 Segment Details Market Commentary Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Recovery of automotive electronics markets depressed by COVID-19 and strong growth Assembly $205 37% across high-end electronics and with EV customers Strong demand across high-end
Slide 5: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management ▪ Q2 2021 free cash flow* of $72 million ▪ Net debt to adj. EBITDA ratio* of 2.4x on a LTM basis as of June 30, 2021 ▪ Moderate working capital investment in Q2 associated with sequential increase in net sales, i
Slide 6: Coventya Acquisition Highlights
Coventya Acquisition Highlights Highly Strategic to ESI’s Industrial Vertical Coventya is a global provider of surface treatment technology to automotive and general industrial end-markets: ▪ Highly complementary business with strength in anti- corrosion & functional coatings Expect ~$190M FY21E* Re
Slide 7: Full Year 2021 Financial Guidance
Full Year 2021 Financial Guidance Updated as of July 2021 $505M to $520M FY Adj. EBITDA* (~20% growth) FY Adjusted $1.35+ EPS* (40% growth) FY Free Cash ~$285M Flow* (10% growth) ▪ Expect Q3 2021 adj. EBITDA* of $125 million to $130 million ▪ Expect more typical seasonality with Q3 stronger than Q4
Slide 8: Appendix
Appendix 8
Slide 9: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q2 2021 Q2 2020 Common shares outstanding 248 249 Number of shares issuable upon vesting of granted Equity Awards 1 5 3 Adjusted common shares outstanding 252 252 Note: Totals may not sum due to rounding 1. Equity awards with targets that
Slide 10: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q2 2021 Q2 2020 Net income attributable to common stockholders $81 $1 Add (subtract): (Income) loss from discontinued operations, net of tax (2) 1 Income tax (benefit) expense (32) 6 Interest expense, net 13 17
Slide 11: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q2 YTD 2021 Q3 2020 Q4 2020 2021 Net income attributable to common stockholders $163 $36 $30 $229 Add (subtract): (Income) loss from discontinued operations, net of tax (2) 0 — (2) Income tax (benefit) exp
Slide 12: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q2 2021 Q2 2020 Net income attributable to common stockholders $81 $1 Net income (loss) from discontinued operations attributable to common stockholders 2 (1) Net income from continuing operations attributa
Slide 13: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended June 30, 2021 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics 51% (7)% 44% (16)% (2)% 25% Industrial & Specialty 53% (8)% 45% —% (4)% 41%
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (dollars in millions) Q2 2021 Q2 2020 Cash flows from operating activities $ 80 $ 64 Capital expenditures (9) (5) Disposal of property, plant and equipment - 2 Free cash flows $ 72 $ 61 Note: Totals may not sum due to rounding 14
Slide 15: 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-perio