Element Solutions Inc. · NYSE:ESI
Element Solutions — Investor Day (May 2019)
85 slides from Element Solutions's investor day presentation, May 20, 2019
Slide 1: Element Solutions Investor Day
Element Solutions Investor Day May 2019 1
Slide 2: Cautionary Statement about Forward-Looking Statements
Cautionary Statement about Forward-Looking Statements The financial information contained in this presentation excludes the results of Element Solutions’ discontinued operations which relate to its former Agricultural Solutions business sold on January 31, 2019. Please note that in this presentation
Slide 3: Non-GAAP Information
Non-GAAP Information To supplement the financial measures prepared in accordance with GAAP, the Company uses the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted EPS, adjusted free cash flow, net debt to adjusted EBITDA ratio, organic net sales growth and unlevered free cash
Slide 4: Welcome & Introduction
Welcome & Introduction Benjamin Gliklich Martin E. Franklin 4
Slide 5: Agenda
Agenda 1 2 3 Introducing Positioning & Element Solutions Business Model Electronics 4 5 6 Industrial & MacDermid Alpha Supply Specialty Automotive Chain 7 8 9 Capital Key Finance Allocation Takeaways 5
Slide 6: Opening Remarks
Opening Remarks Diverse, niche Performance- Significant cash Multiple businesses with based culture flow generation avenues for stable market with mission and high shareholder positions, aligned returns on value creation defensible management capital through moats and team execution and strong growt
Slide 7: Introducing Element Solutions
Introducing Element Solutions Benjamin Gliklich 7
Slide 8: Introducing Element Solutions
Introducing Element Solutions Chemical Technology Enabling Performance & Innovation $ 1,961M 2018 Net Sales ~ 4,450 Employees 2018 Segment Net Sales ■ Electronics 59% 2018 Regional Net Sales ■ Americas 29% ■ Industrial & 41% ■ EMEA 29% $ 421M 2018 Adj. EBITDA* > 50 Countries Specialty ■ Asia 42% Hyd
Slide 9: Element Solutions' Leadership Team
Element Solutions’ Leadership Team Deep Bench of Highly-Skilled Leaders Martin E. Franklin Benjamin Gliklich Scot R. Benson Office of the Executive Chairman Chief Executive Officer President & Chief Chairman Operating Officer ▪ John E. Capps ▪ Carey J. Dorman ▪ Trisha Mount ▪ Dustin Collins ▪ Michae
Slide 10: Element Solutions' Strategic Pillars
Element Solutions’ Strategic Pillars Chemical Technology Enabling Performance & Innovation Commercial Excellence Reliably meeting our customers’ needs and delivering excellence consistently Market Leading Innovation Partnering with customers and OEMs to support the development of their next big idea
Slide 11: Strategy in Action
Strategy in Action Supporting Higher Reliability Standards for 5G SMS Internet Streaming SMS Internet Ultra HD & 3D Automotive IoT Streaming Technologies 4G 5G Speed: 4G 5G Latency: 1,000 Speed: Latency: 1 million 1 gb/second 10 ms Connections / Km2 20 gb/second <1 ms connections/Km2 Chromium Trioxi
Slide 12: Financial Performance Drivers
Financial Performance Drivers Compounding Cash Flow Through Operational Excellence and Prudent Capital Allocation Compounding Cash Flow ▪ Strong financial profile ▪ Disciplined capital allocation Margin Expansion ▪ Operational excellence ▪ Performance-based culture Above-Market Organic Growth ▪ Posi
Slide 13: Positioned for Profitable Growth
Positioned for Profitable Growth Above-Market Growth Through Increasing Customer Requirements & Innovation Increasing complexity, reliability and sustainability requirements are megatrends that benefit Element Solutions Emerging Trends Automotive Electronic Content Via Fill Solutions Increasing elec
Slide 14: Operational Excellence
Operational Excellence Multiple Opportunities for Margin Expansion Global Scale in Procurement Nimble Supply Chain Efficient Operating Model ▪ Global purchasing organization ▪ Low, fixed-cost formulation ▪ Investment focused on leveraging $700 million+ of raw facilities close to customers customer f
Slide 15: Performance-Based Culture
Performance-Based Culture The Elements of our Culture C hallenge C ommit C ollaborate C hoose C are We establish We make We value teamwork, We empower our We care about our ambitious goals, commitments and with our customers employees to make customers, our take calculated hold ourselves and our col
Slide 16: Strong Financial Profile
Strong Financial Profile History of Consistent Growth and Free Cash Flow* Leverage Net Sales Adj. EBITDA* Adjusted Free Cash Flow 1* $ in millions $ in millions $ in millions 5% 7% 15% CAGR 1,961 CAGR 421 CAGR 224 401 209 1,879 1,770 169 368 2016 2017 2018 2016 2017 2018 2016 2017 2018 Organic Net C
Slide 17: Disciplined Capital Allocation
Disciplined Capital Allocation Balanced Strategy of Operational Excellence and Prudent Capital Allocation ▪ Strong and stable free cash flow* provides flexibility to support organic investments in strategic priority markets, measured acquisitions and shareholder-friendly capital returns while mainta
Slide 18: Financial Objectives
Financial Objectives Path to Compound Cash Flow and Drive Shareholder Value ▪ 1-2% organic net sales growth* over end-markets ▪ 1.5x net sales conversion to adjusted EBITDA* Double adjusted ▪ Prudent deployment of excess cash flow EPS* to $1.36 by 2023 ▪ Net leverage ratio* below 3.5x adjusted EBITD
Slide 19: Positioning & Business Model
Positioning & Business Model Scot R. Benson 19
Slide 20: Compelling Business Characteristics
Compelling Business Characteristics 1 Shared High-Quality Business Characteristics Across Portfolio 2 Balanced Business, Regional and End-Market Diversity 3 Broad Range of Product Offerings 4 Capital Efficient Manufacturing of Formulation-Based Products 5 Innovation and Service to Meet Customer Need
Slide 21: Shared High-Quality Business Characteristics Across Portfolio
1 Shared High-Quality Business Characteristics Across Portfolio Electronics Industrial & Specialty Assembly Circuitry Semiconductor Industrial Graphics Energy Leading market positions ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Strategic Secular growth tailwind Market consolidation opportunities ✔ ✔ ✔ ✔ ✔ Available marke
Slide 22: Balanced Business, Regional and End-Market Diversity
2 Balanced Business, Regional and End-Market Diversity Diverse Portfolio of Businesses Balanced Regional Presence FY 2018 Net Sales FY 2018 Net Sales Energy Solutions Asia Americas 4% Assembly 42% 29% Solutions Graphics 29% Solutions 8% Industrial Solutions 29% Electronics Circuitry EMEA Semiconduct
Slide 23: Broad Range of Product Offerings
3 Broad Range of Product Offerings Portfolio of Innovative Products Designed Specifically for Customers and OEMs Electronics Assembly Circuitry Semiconductor $580M Net Sales $406M Net Sales $171M Net Sales $1,158M ▪ Surface mount ▪ Sintered materials ▪ Circuit formation ▪ Solderable ▪ Damascene ▪ Re
Slide 24: Multiple Supply Chain Touch Points
3 Broad Range of Product Offerings Multiple Supply Chain Touch Points Raw Materials Base metals, inorganic salts, acids, bases and precious metals Electronics Industrial Solutions Offerings ▪ “Wet chemistries” for metallization, electroplating and final finishes ▪ “Wet chemistries” for corrosion res
Slide 25: Critical and Increasing Presence in Mobile Phones and Automobiles
3 Broad Range of Product Offerings Critical and Increasing Presence in Mobile Phones and Automobiles Our Touch Points in a Mobile Phone Our Touch Points in an Automobile Our Touch Points = Plating Technologies Semiconductor Materials ~$30 - $50 of content per car Power Train Assembly Solutions Decor
Slide 26: Capital Efficient Manufacturing: Global Footprint
4 Capital Efficient Manufacturing of Formulation-Based Products Global Manufacturing Footprint Enabling Customer Proximity Manufacturing Facilities R&D and Service Labs ▪ Flexible manufacturing footprint and production capabilities ▪ Ability to add significant capacity without investing incremental
Slide 27: Example: Affinity Electroless Nickel Immersion Gold Process
4 Capital Efficient Manufacturing of Formulation-Based Products Example: “Affinity” Electroless Nickel Immersion Gold Process ▪ Our customers manufacture PCBs using multiple “wet” chemistries provided by our Circuitry Solutions business ▪ The electroless nickel immersion gold “Affinity” process prot
Slide 28: Example: ZinKlad Anti-Corrosion and Zinc-Alloy Plating
4 Capital Efficient Manufacturing of Formulation-Based Products Example: “ZinKlad” Anti-Corrosion and Zinc-Alloy Plating ▪ Anti-corrosion and zinc-alloy plating processes consist of multiple applications of our formulated chemistries ▪ Our “ZinKlad” coatings enable global automotive OEMs to specify
Slide 29: Targeted Formulation and R&D Process
5 Innovation and Service to Meet Customer Needs Targeted Formulation and R&D Process Customer-driven innovation translates to efficient R&D spend % of Net Sales Voice of the Technology Stage Gate Internal & Comprehensive External Customer Roadmaps Development Support Training ~5% ~2,200 Active Paten
Slide 30: Specifications and Qualifications
5 Innovation and Service to Meet Customer Needs Specifications and Qualifications Reflect an Industry Focus on Supply Chain Quality Our Role in the Specification Process 1. Our commercial teams manage Qualifications / Specifications specification projects with customers, Solderability Flexographic O
Slide 31: Expert Technical Service
5 Innovation and Service to Meet Customer Needs Expert Technical Service Our highly technical sales and service force of ~1,600 employees has on-site contact with our customers every day ▪ Leading expertise in materials science and chemical engineering Global R&D drives global innovation in close co
Slide 32: Electronics
Electronics Joe D’Ambrisi Tom Hunsinger Leo Linehan 32
Slide 33: Electronics Segment Overview
Electronics Segment Overview Integrated electronics capabilities for printed circuit boards and semiconductor applications Verticals and Product Applications Net Sales 2018 Net Sales by Vertical ($ millions) ■ Assembly 50% ▪ Growth expectations: GDP+ ■ Circuitry 35% ■ Semiconductor Assembly ▪ Formul
Slide 34: Circuitry Solutions: Products and Services
Circuitry Solutions Products and Services Formulations, processes and technology essential to circuit board metallization ▪ Surface treatments and precision etch products to enhance material bonding and high Circuit Formation frequency performance ▪ Select brands: M-Speed, Multibond, CircuEtch ▪ Pro
Slide 35: Circuitry Solutions: Market Positioning
Circuitry Solutions Market Positioning ▪ Best-in-class technology with industry-leading technical Regional Breakdown Product Overview service teams who provide on-site expertise to our What customers Sets Us ▪ Deepest reach across electronics supply chain Apart ▪ Other market participants: Atotech,
Slide 36: Assembly Solutions: Products and Services
Assembly Solutions Products and Services Formulations, alloys and adhesives to connect and assemble electronics Surface Mount ▪ Solder pastes and preforms used to form the mechanical and electrical connections between components and circuit boards Technology ▪ Select brands: Alpha, InnoLot, AccuFlux
Slide 37: Assembly Solutions: Market Positioning
Assembly Solutions Market Positioning ▪ Specified formulation chemistries, alloys and highly- Regional Breakdown Product Overview engineered materials What ▪ Technology, quality, consistency and manufacturing Sets Us infrastructure Apart ▪ Traceable supply chain for recycled materials ▪ Other market
Slide 38: Semiconductor Solutions: Products and Services
Semiconductor Solutions Products and Services Proprietary chemistries that support the design, formation and packaging of semiconductor chips ▪ Copper and cobalt electroplating chemistries used for transistor interconnection Damascene ▪ Select brands: ViaForm Metallization ▪ Semiconductor chip attac
Slide 39: Semiconductor Solutions: Market Positioning
Semiconductor Solutions Market Positioning ▪ Ability to leverage market leading positions to offer Regional Breakdown1 Product Overview integrated process solutions with semiconductor-grade What supply and quality systems Sets Us ▪ Other market participants: DuPont, BASF, Henkel Apart ▪ Collaborativ
Slide 40: Innovation-Driven Growth
Innovation-Driven Growth Next-Generation Technology Requires Innovation End-Market Drivers Increasing Requirements Innovation Low-Temp Surface Mount Smart ▪ Assembly at lower Phones and Internet of temperature thresholds ▪ Low-temp alloys and adhesives for Things next-gen electronic assembly Tablets
Slide 41: MacDermid Alpha: The Great Convergence of Interconnect Technology
MacDermid Alpha The “Great Convergence” of Interconnect Technology Strong portfolio of technologies working better together to solve reliability and performance requirements of OEMs ▪ Ongoing demands for increased power and functionality from electronic devices are driving innovation to deliver incr
Slide 42: MacDermid Alpha: Unique Breadth of Chemistry Offerings
MacDermid Alpha Unique Breadth of Chemistry Offerings for Electronic Manufacturers Semiconductor Underfill / Encapsulant Damascene Copper Redistribution Poly Redistribution Layers Flip Chip Attach Flux Tin/Tinx Bump Plating Reform Flux Copper Bumps / Pillars Solder Ball / Attach Flux Nickel Barrier
Slide 43: Industrial & Specialty
Industrial & Specialty Scot R. Benson Michael Siegmund Melanie Galloway Steve Racca 43
Slide 44: Industrial & Specialty Segment Overview
Industrial & Specialty Segment Overview Dynamic chemical technology for automotive, general industrial, consumer and oil & gas end-markets Verticals and Product Applications Net Sales 2018 Net Sales by Vertical ($ millions) ■ Industrial 70% ▪ Growth expectations: GDP ■ Graphics 20% ■ Energy Industri
Slide 45: Industrial Solutions: Products and Services
Industrial Solutions Products and Services Functional and decorative solutions used for various commercial and industrial end-markets ▪ Zinc-based coatings for anti-corrosion applications; coatings used to enhance vehicle life, enable Anti-Corrosion weight reduction and eliminate warranty issues in
Slide 46: Industrial Solutions: Market Positioning
Industrial Solutions Market Positioning ▪ Active innovation and OEM engagement Regional Breakdown Product Overview What ▪ Industrial applications know-how supported by a global footprint Sets Us ▪ Environmental awareness Apart ▪ Other market participants: Atotech, Coventya, Dipsol, Okuno ▪ Direct sa
Slide 47: Industrial Solutions: Growth Trends and Innovation
Industrial Solutions Growth Trends and Innovation Growth Trends Product Innovations & Key Benefits Energy Efficiency ▪ Electric / hybrid vehicles, autonomous ▪ New processes enabling driving and new construction materials automotive and OEM supply chains to make REACH compliant parts Vehicle Life Cy
Slide 48: Graphics Solutions: Products and Services
Graphics Solutions Products and Services Polymer-based chemistries used to create plates and sheets for printing high-quality packaging ▪ Sheet photopolymer used for printing on multiple substrates (pouches, bags, blister Flexible Packaging packs, wrappers, etc) ▪ Select brands: LUX ITP EPIC, LUX IT
Slide 49: Graphics Solutions: Market Positioning
Graphics Solutions Market Positioning ▪ First to market with In-The-Plate (ITP) technologies Regional Breakdown Product Overview What ▪ Linking chemistry with print performance through a complex process Sets Us ▪ Technical sales approach coupled with extensive Apart engineering & application support
Slide 50: Graphics Solutions: Recent Innovation
Graphics Solutions Recent Innovation Key Markets Product Innovation & Benefits ▪ Eye-catching graphics / shelf life of ▪ Print consistency retail packages Flexible ▪ High solid ink density ▪ Consumer demand for convenience Packaging packaging ▪ High-quality ink transfer ▪ Growth in pouches and stret
Slide 51: Energy Solutions: Products and Services
Energy Solutions Products and Services Environmentally-friendly pressure and temperature-sensitive formulations used for offshore oil & gas production Production Control ▪ Reliable, field proven water-based hydraulic control fluids Fluids ▪ Products used to operate subsea system components in produc
Slide 52: Energy Solutions: Market Positioning
Energy Solutions Market Positioning ▪ Environmentally-friendly products that ensure reliable Regional Breakdown Product Overview operation of customer equipment What ▪ Proactive product development process with Sets Us responsive technical support to promptly assess and Apart remediate issues ▪ Othe
Slide 53: MacDermid Alpha Automotive
MacDermid Alpha Automotive Steven Brown 53
Slide 54: The Automotive Revolution
The Automotive Revolution Major technology, environmental and design requirements are driving changes to the global automotive industry ▪ Lighter vehicles & new materials Evolving Technology Requirements in Automobiles Macro Trends ▪ Quality, design and cost improvements ▪ Longer term requirements (
Slide 55: MacDermid Alpha Automotive – Focus Areas and Strategy
MacDermid Alpha Automotive – Focus Areas and Strategy Leveraging Materials Expertise to Support New Technology Vehicles Dedicated team of cross-functional and technology experts who support OEMs, Tier 1’s and specifiers Electric Vehicles Vehicle Automation Interiors & Displays EV / HEV Market Evolut
Slide 56: MacDermid Alpha Automotive OEM Team
MacDermid Alpha Automotive OEM Team 20+ Experts Dedicated to OEMs Europe 6 team members covering 10 Americas automotive OEMs – over 100 6 team members covering 7 years of cumulative automotive OEMs – over 100 experience ▪ Team of automotive years of cumulative business and technology experience expe
Slide 57: Alpha Argomax Sinter Technology
Alpha Argomax Sinter Technology Case Study Providing reliability, thermal conductivity and electrical conductivity to the electric vehicle market ▪ Major technology shift is underway as consumers and the automotive industry move toward electric vehicles ▪ OEMs and Tier 1s face challenges in EV devel
Slide 58: Supply Chain
Supply Chain Mike Goralski 58
Slide 59: Global Supply Chain
Global Supply Chain Flexible Manufacturing Footprint Facilities close to key customers, allowing for flexibility and prompt response EMEA: 29% of 2018 Net Sales >50 ~3,000 Americas: Countries Where We Do Business Suppliers 29% of 2018 Net Sales Asia: 42% of 2018 Net Sales >20,000 SKUs ~40 Manufactur
Slide 60: Supply Chain Cost Structure and Opportunities
Supply Chain Cost Structure and Opportunities Cost Structure that Provides Efficiency Opportunities and Stable Margins Operating Leverage Economies of Scale Logistics: ~5% Raw Materials (ex-metals): ~50% ▪ Warehousing / network design ▪ Palladium chloride, packaging, sodium ▪ Working capital improve
Slide 61: Global Supply Chain Strategy
Global Supply Chain Strategy Supply Chain as a Sustainable Competitive Advantage Sourcing Continuous Excellence Improvement ▪ Site driven & owned KPIs – environment & safety, efficiency, working capital and human capital Logistics ▪ Global strategic team led by Optimization Accountability functional
Slide 62: Increasing Capacity Utilization Without Capital Investment
Increasing Capacity Utilization Without Capital Investment Case Study: Capacity Expansion in Italy ▪ In 2018, our plant in Italy experienced a spike in demand ▪ We added an additional operating shift without any incremental capital investment ~17% increase to production capacity with $0 additional i
Slide 63: Corporate Social Responsibility
Corporate Social Responsibility Internal and Customer-Facing Initiatives & Benefits Leveraging cross-vertical experience for corporate social responsibility initiatives We are helping drive multiple industry initiatives that benefit both our customers and the environment… Metals Reclaim ▪ Create com
Slide 64: Finance
element la solutions Finance Carey J. Dorman
Slide 65: History of Strong Financial Growth
History of Strong Financial Growth 1,961 ▪ Consumable product offerings 1,879 Net 1,770 731 756 804 5% CAGR ▪ Diverse end-markets Sales ($ millions) 1,039 1,123 1,158 6% CAGR ▪ Sticky customer relationships 2016 2017 2018 401 421 ▪ Consistent gross margins and operating expense Adj. 368 173 5% CAGR
Slide 66: History of Stability in Sales and Margin
History of Stability in Sales and Margin Stability Versus Key End-Markets Stable Gross Margin Profile 10% 60% 5% Energy 50% YoY Change (%) Gross Margin (%) 40% 0% Circuitry 30% (5%) Graphics 20% (10%) Industrial 10% 1 (15%) 0% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 43% 2018 Gross Margin 201
Slide 67: Strong Cash Flow Conversion and Return on Assets
Strong Cash Flow Conversion and Return on Assets ($ millions) 2016 2017 2018 ($ millions) 2016 2017 2018 Adj. EBITDA* $368 $401 $421 Adjusted Free Cash Flow* $169 $209 $224 Plus: Normalized Cash Interest 70 70 70 7% CAGR Less: Tax Effect of Normalized Cash Interest (19) (19) (19) Net Capex* (23) (14
Slide 68: Other Cash Flow Drivers
Other Cash Flow Drivers Opportunities to Drive Further Cash Flow Growth Working Capital Efficiency Modest Capital Expenditures Tax Optimization Net Working Capital* (NWC) ($ millions) Capex as % of net sales Inventory AR AP NWC 1.8% Value chain 700 1.6% Expected 600 1.4% Intercompany debt lower 500
Slide 69: Healthy Balance Sheet
Healthy Balance Sheet Committed to Net Leverage Ratio* Below 3.5x Adjusted EBITDA* March 2019 Capital Structure ($ millions) Instrument Maturity Interest Rate and Cross-Currency Swaps New Revolver ($330 million) 2024 $120 ▪ Term loan hedges that reduced interest rate to ~ 2.3% p.a. for 5 years New T
Slide 70: Margin Expansion Drivers
Margin Expansion Drivers Multiple Levers to Drive Positive Incremental Margins Cost Reduction Initiatives Operating Leverage Product Mix ▪ New product introductions offering enhanced customer value ▪ Minimal incremental SG&A on ▪ Procurement and supply chain new sales savings ▪ High-growth markets s
Slide 71: Global SG&A Breakdown
Global SG&A Breakdown Significant leverage on operating expenses drive high-incremental margins ▪ Selling and marketing organization present in all key markets Selling & Marketing ▪ Technical service & sales teams compensated through a mix of salary, commission and bonus ~50% ▪ Globally-staffed, sca
Slide 72: Targeted Cost Savings
Targeted Cost Savings Execution to Date and Future Expectations Realized and Run-Rate Cost Savings ▪ Drivers for incremental cost savings: Targeting additional ~1% margin o Shared services implementation expansion from cost by 2021 o G&A organizational alignment 30 Additional Savings o Supply chain
Slide 73: Financial Objectives
Financial Objectives Path to Compound Cash Flow and Drive Shareholder Value ▪ 1-2% organic net sales growth* over end-markets ▪ 1.5x net sales conversion to adjusted EBITDA* Double adjusted ▪ Prudent deployment of excess cash flow EPS* to $1.36 by 2023 ▪ Net leverage ratio* below 3.5x adjusted EBITD
Slide 74: Capital Allocation
Capital Allocation Benjamin Gliklich 74
Slide 75: Capital Allocation Principles
Capital Allocation Principles Operational excellence and prudent capital allocation fit hand-in-glove and form positive feedback loop Investing in the Business ▪ Modest required investment to drive sustainable growth and margin expansion through innovation and people Business will generate substanti
Slide 76: Investing in the Business
Investing in the Business Disciplined Approach to All Spend Categories Invest for Growth Invest for Efficiency R&D Sales & Marketing Capex G&A Supply Chain ▪ New products, new ▪ Geographic ▪ Facility expansion ▪ Technology to ▪ Procurement applications and expansion and enable more initiatives new m
Slide 77: Deploying Excess Capital
Deploying Excess Capital Acquisitions versus Shareholder Returns Acquisitions prudently assessed and weighed against risks and alternative investment opportunities Acquisition Hurdle Rate Consider Available Risk-Adjusted Acquisition Returns acquisitions Share repurchases Consider dividend or build c
Slide 78: Focused and Value Accretive Acquisition Criteria
Focused and Value Accretive Acquisition Criteria Bolt-on Acquisitions in Existing Verticals Acquisition Criteria Case Study: Hi-Tech Korea Innovative provider of non- Alignment with existing capabilities and business model conductive electronic adhesives that serve a variety of end-markets, includin
Slide 79: Path to Value Creation
Path to Value Creation Objective Requires Both Growth and Prudent Capital Allocation Organic Growth Trajectory ▪ Organic net sales growth* of ~4% Operational Excellence and Prudent Capital Allocation ▪ Margin expansion of up to 25 bps per year ▪ Excess cash used to pay down debt ▪ Implies high singl
Slide 80: Key Takeaways
Key Takeaways Benjamin Gliklich 80
Slide 81: Key Takeaways
Key Takeaways 1 2 3 High-Quality Businesses Positioned Capable, Deep Leadership Team with Clear Pathway to Deliver on our to Grow and Efficiently Convert a Performance and Ownership- Medium-Term Financial Objective Earnings to Free Cash Flow* Oriented Culture Defensible, Leading Market Positions Dou
Slide 82: Appendix
element la solutions Appendix
Slide 83: Net Loss Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Loss Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) FY 2018 FY 2017 FY 2016 Net loss attributable to common stockholders $(324) $(296) $(41) Add (subtract): Gain on amendment of Series B Convertible Preferred Stock — — (33) Net income (loss) attributable to the no
Slide 84: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Q1 Q2 Q3 Q4 FY 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Net Sales Growth 10% 6% 9% 6% 2% 6% (2%) 7% 4% 6% Impact of Currency (7%) 2% (3%) 2% 2% (1%) 3% (4%) (1%) 0% Constant Currency 3% 9% 5% 8% 4% 5% 1% 3% 3% 6% Change in Pass-Through Metals Pricing
Slide 85: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS) Adjusted earnings per share is defined as net income (loss) from continuing operations attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eli