Slide 1: Third Quarter 2018 Earnings Call
Third Quarter 2018 Earnings Call November 1, 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, annuali
Slide 4: Platform Q3 Results (Continuing Operations)
PLATFORM Q3 RESULTS (CONTINUING OPERATIONS) Constant Organic2* Net Sales ($mm) Currency1* ($ in millions) Q3 2018 Q3 2017 YoY% YoY% YoY% 15 489 Net Sales $489 $481 2% 4% 3% GAAP Diluted 481 EPS $(0.02) $(0.13) 2 474 Adj. EBITDA* $108 $108 1% 3% 1 % margin 22.2% 22.4% (20) bps (20) bps (10) Adj. EPS*
Slide 5: Platform Balance Sheet & Cash Flow Considerations
PLATFORM BALANCE SHEET & CASH FLOW CONSIDERATIONS Key Cash Flow Items Balance Sheet Management (Excluding Discontinued Operations) (Including Discontinued Operations) ▪ YTD Q3 unlevered free cash flow1* from continuing operations of ▪ Net debt (including discontinued operations) decreased by ~$30 $1
Slide 6: Short Term Outlook
SHORT TERM OUTLOOK ▪ Proceeding toward the sale of our Agricultural Solutions segment, Arysta LifeScience, to UPL Limited with a targeted closing on December 31, 2018, subject to customary closing conditions and outstanding regulatory clearances o Merger control filings have been made in all necessa
Slide 7: Introducing Element Solutions
Introducing Element Solutions
Slide 8: Introducing Element Solutions Inc
Introducing Element Solutions Inc A Leading Diversified Specialty Chemicals Company Chemical Technology Enabling Performance and Innovation Element Solutions provides high-quality, differentiated specialty chemical solutions to a broad range of global manufacturing end-markets Our chemical technolog
Slide 9: Element Solutions' Business Profile
Element Solutions’ Business Profile Electronics Industrial and Specialty Our Brands What We Do Our Brands What We Do ▪ Our assembly solutions business ▪ We provide decorative finishes and plating-on- provides fluxes, solder paste, plastic process technologies that are used in preforms, adhesives, an
Slide 10: Element's Position in the Electronics and Auto Supply-Chain
Element’s Position in the Electronics and Auto Supply-Chain Element Solutions works within multiple levels of complex supply chains to help its customers, including OEMs, solve their design problems and support their product development processes – despite representing only a very small portion of o
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy With strong and stable free cash flow* generation and a healthy balance-sheet, Element will have financial flexibility to support organic investment in strategic priority markets, measured M&A and shareholder capital returns Net-debt to Adj. EBITDA Ratio of Below 3.5x Inv
Slide 12: Element Solutions' Key Attributes
Element Solutions’ Key Attributes Market leading positions across diverse and attractive end-markets Broad range of product offerings and specification partnerships with customers Customer-centric innovation and technology expertise Critical products that are integrated within multiple levels of cus
Slide 13: Appendix
PLATFORM SPECIALTY PR UCTS CORPORATION rl APPENDIX 12
Slide 14: Platform's Current Capital Structure
PLATFORM’S CURRENT CAPITAL STRUCTURE ($ millions) Instrument Maturity Coupon 9/30/2018 Corporate Revolver 6/7/2020 $— Term Loan B6 - USD1,2 6/7/2023 L + 300 1,135 Term Loan B7 - USD1 6/7/2020 L + 250 630 Term Loan C5 - EUR1,2 6/7/2023 E + 275 696 Term Loan C6 - EUR1 6/7/2020 E + 250 678 Other Secure
Slide 15: Reconciliation to Adjusted Share Counts
RECONCILIATION TO ADJUSTED SHARE COUNTS (amounts in millions) Q3 2018 Q3 2017 Basic outstanding common shares 288 287 Number of shares issuable upon conversion of PDH Common Stock 4 5 Number of shares issuable upon conversion of Series A Preferred Stock 2 2 Number of shares issuable upon vesting and
Slide 16: Net Loss Reconciliation to Adj. EBITDA (Continuing Operations)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS RECONCILIATION TO ADJ. EBITDA (CONTINUING OPERATIONS) ($ millions) Q3 2018 Q3 2017 Net loss attributable to common stockholders $(409) $(69) Add (subtract): Net income attributable to the non-controlling interests 3 3 Loss from discontinued operations, ne
Slide 17: Reconciliation to Adj. EBITDA for Legacy Operations
RECONCILIATION TO ADJ. EBITDA FOR LEGACY OPERATIONS ($ millions) LTM Q3-2018 Net loss attributable to common stockholders $(501) Add (subtract): Net loss attributable to the non-controlling interests (1) Income tax expense 13 Interest expense, net 318 Depreciation expense 72 Amortization expense 261
Slide 18: GAAP Net Loss Reconciliation to Adjusted Diluted EPS
GAAP NET LOSS RECONCILIATION TO ADJUSTED DILUTED EPS AND NORMALIZED ADJUSTED DILUTED EPS (CONTINUING OPERATIONS) ($ millions, except per share amounts) Q3 2018 Q3 2017 Net loss attributable to common stockholders $(409) $(69) Net loss from discontinued operations attributable to common stockholders
Slide 19: Quarterly Results Overview and Organic Sales Growth Reconciliation
QUARTERLY RESULTS OVERVIEW (CONTINUING OPERATIONS) 2017 2018 ($ millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales $447 $462 $481 $489 $492 $502 $489 Adjusted EBITDA $94 $96 $108 $104 $104 $109 $108 ORGANIC SALES GROWTH RECONCILIATION (CONTINUING OPERATIONS) Organic Sales Growth Reported Net Impact of Organic
Slide 20: Non-GAAP Definitions
NON-GAAP DEFINITIONS Adjusted Earnings Per Share: Adjusted earnings per share is defined as net loss from continuing operations attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminates the am