Part I. [Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Net sales increased to **$680.2 million** in Q1 2022, but net income decreased to **$56.1 million** and operating cash flow turned negative due to higher costs and working capital needs [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2022 net sales grew to **$680.2 million**, but gross profit saw a smaller increase, and net income attributable to common stockholders fell to **$56.1 million** due to higher costs Q1 2022 vs Q1 2021 Statement of Operations (in millions, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net sales** | $680.2 | $550.1 | | **Gross profit** | $263.0 | $241.0 | | **Operating profit** | $95.5 | $99.9 | | **Net income attributable to common stockholders** | $56.1 | $82.3 | | **Diluted EPS** | $0.23 | $0.33 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets remained stable at **$5.13 billion**, with a decrease in cash to **$218.8 million** offset by increases in receivables and inventories Balance Sheet Highlights (in millions) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $1,216.9 | $1,214.5 | | Cash & cash equivalents | $218.8 | $330.1 | | Inventories | $323.4 | $274.4 | | **Goodwill** | $2,518.6 | $2,526.3 | | **Total assets** | $5,128.8 | $5,138.4 | | **Total liabilities** | $2,615.3 | $2,637.6 | | **Total equity** | $2,513.5 | $2,500.8 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 saw net cash used in operating activities of **$5.6 million**, a significant decline from prior year, driven by increased working capital and HSO acquisition-related investing activities Q1 2022 vs Q1 2021 Cash Flows (in millions) | Cash Flow Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash flows (used in) provided by operating activities** | $(5.6) | $32.6 | | **Net cash flows (used in) provided by investing activities** | $(37.1) | $10.5 | | **Net cash flows used in financing activities** | $(67.1) | $(14.2) | | **Net (decrease) increase in cash and cash equivalents** | $(111.3) | $25.6 | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the **$23 million** HSO acquisition, stable **$1.91 billion** total debt, **$18.8 million** in share repurchases, and segment revenue growth with compressed margins due to higher costs - On January 26, 2022, the Company completed the acquisition of HSO for approximately **$23 million**, recording **$11.7 million** of finite-lived intangible assets and **$7.1 million** of goodwill[31](index=31&type=chunk)[32](index=32&type=chunk) - Total debt obligations stood at approximately **$1.91 billion** as of March 31, 2022, primarily consisting of **$1.11 billion** in term loans and **$790 million** in senior notes[35](index=35&type=chunk)[132](index=132&type=chunk) - The company repurchased **0.8 million** shares of its common stock for **$18.8 million** during Q1 2022 under its stock repurchase program, with approximately **$713 million** remaining authorized for future repurchases[61](index=61&type=chunk) Segment Performance Q1 2022 vs Q1 2021 (in millions) | Segment | Net Sales 2022 | Net Sales 2021 | Adjusted EBITDA 2022 | Adjusted EBITDA 2021 | | :--- | :--- | :--- | :--- | :--- | | **Electronics** | $426.9 | $353.5 | $97.3 | $92.4 | | **Industrial & Specialty** | $253.3 | $196.6 | $47.5 | $45.4 | | **Total** | $680.2 | $550.1 | $144.8 | $137.8 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported **24%** net sales growth in Q1 2022, driven by acquisitions and pricing, but gross and Adjusted EBITDA margins declined due to higher raw material and logistics costs Q1 2022 vs Q1 2021 Key Metrics | Metric | Q1 2022 | Q1 2021 | Reported % Change | Constant Currency % Change | Organic % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $680.2M | $550.1M | 24% | 28% | 7% | | **Gross profit** | $263.0M | $241.0M | 9% | 12% | N/A | | **Gross margin** | 38.7% | 43.8% | (510) bps | (540) bps | N/A | | **Adjusted EBITDA** | $144.8M | $137.8M | 5% | 9% | N/A | | **Adjusted EBITDA margin** | 21.3% | 25.0% | (370) bps | (370) bps | N/A | [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2022 net sales grew **24%** to **$680.2 million**, with both Electronics and Industrial & Specialty segments showing growth but experiencing margin compression due to higher costs - Electronics' net sales increased **21%** on a reported basis and **8%** organically, with Semiconductor Solutions showing strong organic growth of **11%** due to demand in advanced packaging[106](index=106&type=chunk) - Industrial & Specialty's net sales grew **29%** on a reported basis and **4%** organically, with acquisitions contributing **44%** to Industrial Solutions' reported net sales[107](index=107&type=chunk) - Gross margin for the total company decreased by **510 basis points**, primarily due to increased raw material prices, logistics costs, and the impact of pass-through metals[110](index=110&type=chunk)[111](index=111&type=chunk) - Operating expenses increased by **19%** (**21%** constant currency), mainly driven by **$21.2 million** in expenses related to recent acquisitions[112](index=112&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Q1 2022 cash uses included the **$23 million** HSO acquisition, **$19.9 million** in dividends, and **$18.3 million** in share repurchases, with total debt at **$1.91 billion** and **$349 million** in available liquidity - Primary uses of cash in Q1 2022 were the HSO Acquisition, dividend payments, and share repurchases[121](index=121&type=chunk) - The decrease in operating cash flow was primarily driven by a build of safety inventory, higher raw materials costs, and higher annual incentive compensation payments[129](index=129&type=chunk) - As of March 31, 2022, the company had **$1.91 billion** of indebtedness and **$349 million** of availability under its revolving credit facilities[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported regarding quantitative and qualitative disclosures about market risk from the 2021 Annual Report - Disclosures about market risk have not changed materially from the 2021 Annual Report[135](index=135&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective[137](index=137&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2022[138](index=138&type=chunk) Part II. [Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including environmental claims, which are considered incidental to its business operations - The company is involved in various legal proceedings and claims, particularly concerning environmental matters, which are considered incidental to its business operations[140](index=140&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported from those disclosed in its 2021 Annual Report on Form 10-K - No material changes to the risk factors from the 2021 Annual Report were reported[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2022, the company repurchased **830,448** shares for approximately **$18.8 million**, with **$713 million** remaining authorized for future repurchases Share Repurchases for Q1 2022 | Period | Total Shares Purchased | Average Price Paid Per Share | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | | Jan 2022 | 328,374 | $23.00 | $725 | | Feb 2022 | 220,403 | $23.52 | $719 | | Mar 2022 | 281,671 | $21.29 | $713 | | **Total** | **830,448** | **$22.56** | **$713** | [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including officer certifications and XBRL data files - The report includes a list of filed exhibits, such as officer certifications and XBRL interactive data files[145](index=145&type=chunk)

Element Solutions Inc. (NYSE:ESI) Q4 2021 Earnings Conference Call February 23, 2022 8:30 AM ET Company Participants Varun Gokarn – Senior Director of Strategy and Finance Sir Martin Franklin – Executive Chairman Ben Gliklich – Chief Executive Officer Carey Dorman – Chief Financial Officer Conference Call Participants Mike Harris – Goldman Chris Kapsch – Loop Capital Markets Steve Byrne – Bank of America Angel Castillo – Morgan Stanley Jon Tanwanteng – CJS Securities Josh Spector – UBS Kieran de Brun – Mizu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _______ Commission file number: 001-36272 Element Solutions Inc (Exact name of Registrant as specified in its charter) Delaware 37-1744899 (State or other jurisdi ...

| --- | --- | --- | --- | |-------|-------|-------|-----------------------| | | | | Third Quarter 2021 | | | | | Earnings Presentation | | | | | October 1 | 2021 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 statements made by or on behalf of the Company. Such discus ...

Element Solutions Inc (NYSE:ESI) Q3 2021 Earnings Conference Call October 28, 2021 8:30 AM ET Company Participants Varun Gokarn - Senior Director-Strategy and Finance Sir Martin Franklin - Executive Chairman Ben Gliklich - Chief Executive Officer Carey Dorman - Chief Financial Officer Conference Call Participants Steve Byrne - Bank of America Bob Koort - Goldman Sachs Kieran de Brun - Mizuho Jon Tanwanteng - CJS Securities Josh Spector - UBS Chris Kapsch - Loop Capital Markets Duffy Fischer - Barclays Angel ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q _______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36272 Element Solutions Inc (Exact name of Registrant as specified in its charter) Delaware 37-1744899 ...

Financial Data and Key Metrics Changes - Sales grew 52% year-over-year, with adjusted earnings per share doubling [6][13] - Adjusted EBITDA grew by 57% on a reported basis, with a 47% increase in constant currency terms [13] - Adjusted EBITDA margin expanded by 50 basis points year-over-year, reaching 27.8% excluding the impact of $107 million of pass-through metal sales [15][24] Business Line Data and Key Metrics Changes - Electronics segment saw organic growth of 25%, with Assembly Solutions growing 37% organically [21] - Circuitry Solutions grew 13% organically, driven by strong demand in China and the Americas [21] - Industrial & Specialty increased 41% on an organic basis, with Industrial Solutions growing 61% [22] Market Data and Key Metrics Changes - Demand for logistics significantly outpaced supply, impacting costs and lead times [9] - Raw material costs increased nearly 10% sequentially, with significant freight cost increases [9][24] - The automotive market experienced muted growth due to chip shortages, but demand in broader electronics markets remained strong [11][12] Company Strategy and Development Direction - The company is focused on capitalizing on growth trends in electronics and automotive applications, including electric vehicles and 5G technology [6][7] - Two strategic acquisitions were announced, including Coventya for approximately $500 million, aimed at expanding technical solutions and market reach [17][30] - The company anticipates significant cost synergies from the Coventya acquisition, expected to exceed $15 million within two years [30] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing supply chain challenges due to increased economic activity and raw material scarcity, expecting these issues to persist into 2022 [9][12] - The outlook for the third quarter includes adjusted EBITDA expectations of $125 million to $130 million, reflecting a healthy demand environment [32] - Full-year adjusted EBITDA guidance was increased to a range of $505 million to $520 million, with adjusted earnings per share expected to grow approximately 40% year-over-year [32] Other Important Information - The company generated $72 million of free cash flow in the second quarter, with a full-year expectation of $285 million [25][27] - Net debt to adjusted EBITDA ratio at the end of Q2 was 2.4 times, with a new $400 million term loan priced to fund the Coventya acquisition [27][28] Q&A Session Summary Question: Cash flow expectations for the second half - Management indicated that cash flow improvement is expected due to a release of working capital as sales growth stabilizes [36] Question: Coventya's market focus and potential - Management discussed leveraging Coventya's strengths in automotive and industrial markets to enhance overall sales and customer relationships [38][39] Question: Sequential EBITDA decline drivers - Management acknowledged logistics cost increases and operational expenses as key factors for the expected decline in EBITDA despite stable sales [44][45] Question: Fourth quarter expectations - Management anticipates a typical seasonal slowdown in the fourth quarter, with conservatism built into the guidance due to ongoing supply chain challenges [66][77] Question: M&A pipeline and capital structure - Management confirmed a healthy balance sheet with capacity for further acquisitions, focusing on strategic tuck-in opportunities [68] Question: Working capital release expectations - Management clarified expectations for a modest release of working capital in the second half, primarily from inventory [71] Question: Customer visibility and demand trends - Management expressed confidence in demand visibility for the second half based on industry trends and order patterns, while remaining cautious about the automotive sector [75][76]

| --- | --- | --- | --- | |-------|-------|-------|-----------------------| | | | | Second Quarter 2021 | | | | | Earnings Presentation | | | | | | | | | | 1 July 2021 | 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 statements made by or on behalf of the Company. Suc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q _______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36272 Element Solutions Inc (Exact name of Registrant as specified in its charter) Delaware 37-1744899 (Sta ...

Financial Data and Key Metrics Changes - The company reported an 11% organic revenue growth year-over-year and a 25% increase in adjusted EBITDA for Q1 2021, reflecting strong demand in high-end electronics and industrial markets [9][10][12] - Adjusted EBITDA margin expanded by 60 basis points year-over-year, with adjusted earnings-per-share growth of 48% driven by improved operating profit and lower interest expenses [11][12] - Free cash flow generated in Q1 was $24 million, impacted by annual incentive compensation payments and a build in working capital of approximately $40 million [18][20] Business Line Data and Key Metrics Changes - Electronics segment saw an 18% organic growth, with Assembly Solutions growing 27% due to strong demand from automotive and power electronics markets [13][14] - Circuitry Solutions grew 11% organically, driven by demand in China and the Americas, while Semi Solutions also grew 11% [14] - Industrial & Specialty segment experienced a 1% organic growth, with Industrial Solutions growing 8% but Graphics Solutions declining by 12% year-over-year [16][17] Market Data and Key Metrics Changes - The company noted challenges in logistics due to container shortages and delays at ports, impacting supply chains [7][8] - The automotive supply chain faced semiconductor shortages, but demand in construction and machinery markets remained strong [8][9] Company Strategy and Development Direction - The company is focused on positioning itself in attractive growth markets, particularly in high-end electronics and automotive applications, including electric vehicles and 5G technology [5][6] - Strategic investments are being made in areas like printed circuit board applications and sustainable solutions to capture value beyond market growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the global economy and the ongoing vaccination efforts, which are expected to support recovery [9] - The company updated its full-year 2021 adjusted EBITDA guidance to a range of $500 million to $510 million, reflecting a year-over-year growth of approximately 20% [23][24] Other Important Information - The company plans to increase its cash dividend by 20% to $0.06 per share in the second quarter [25] - Net leverage at the end of Q1 2021 was 2.7 times, with credit ratings upgraded by Moody's and S&P [21] Q&A Session Summary Question: How are Electronics customers responding to the chip shortage? - Management noted that customers are building extra stock of products to support throughput and increasing capacity in the printed circuit board market, leading to potential market share gains [30][31] Question: What is the outlook for automotive builds? - The company observed less growth in automotive due to chip shortages but saw strong performance in other industrial markets, expecting this trend to continue [37][38] Question: How will pricing and margins recover in the second half? - Management indicated a history of recovering pricing in response to raw material price increases, although there may be some lag [65] Question: What is the expected cadence of recovery for the Industrial & Specialty segment? - The company expects the industrial surface treatment business to perform at or above Q1 levels, while Graphics and Offshore businesses are anticipated to grow sequentially [55][56] Question: What are the plans for capital deployment? - Management emphasized a balanced approach to capital allocation, considering both share repurchases and strategic acquisitions [52][58]