| --- | --- | --- | |-------|-------|-----------------------| | | | First Quarter 2021 | | | | Earnings Presentation | | | | | | | | 1 April 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 discussion and state ...

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 March 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 (St ...

Bank of America 2021 Global Agricultural and Materials Conference Element Solutions Overview 250 March 2021 1 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 discussion and statements will often contain words such as ...

Element Solutions Inc. (NYSE:ESI) Q4 2020 Earnings Conference Call February 25, 2021 8:30 AM ET Company Participants Varun Gokarn - Senior Director of Strategy and Finance Martin Franklin - Executive Chairman Ben Gliklich - CEO Carey Dorman - CFO Conference Call Participants Rob Koort - Goldman Sachs Josh Spector - UBS Chris Kapsch - Loop Capital Markets Duffy Fischer - Barclays Jon Tanwanteng - CJS Securities Neel Kumar - Morgan Stanley Matthew DeYoe - Bank of America Operator Good morning, ladies and gent ...

| --- | --- | --- | |-------|-------|------------------------------------| | | | Fourth Quarter and Full Year 2020 | | | | Earnings Presentation | | | | 1 February 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. Su ...

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, 2020 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 2020 | | | | Earnings Presentation | | | | 1 October 2020 | 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 discussion and statements ...

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents Element Solutions Inc.'s unaudited condensed consolidated financial statements for Q3 and 9M 2020 and 2019, including key financial statements and notes [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales reached $477.5 million in Q3 2020, with net income attributable to common stockholders at $36.0 million, a significant improvement from a $6.9 million loss in Q3 2019 Condensed Consolidated Statements of Operations (Q3 & 9M 2020 vs 2019) | (in millions, except per share) | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$477.5** | **$464.7** | **$1,317.1** | **$1,381.2** | | Gross profit | $203.5 | $205.7 | $563.3 | $597.0 | | Operating profit | $58.6 | $66.9 | $152.7 | $167.5 | | Net income (loss) from continuing operations | $36.2 | $(6.0) | $46.9 | $5.2 | | **Net income (loss) attributable to common stockholders** | **$36.0** | **$(6.9)** | **$45.8** | **$17.8** | | **Diluted EPS attributable to common stockholders** | **$0.15** | **$(0.03)** | **$0.19** | **$0.07** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $4.33 billion as of September 30, 2020, with cash increasing to $248.4 million and total equity rising to $2.24 billion Condensed Consolidated Balance Sheet Highlights | (in millions) | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $946.6 | $833.4 | | Goodwill | $2,189.6 | $2,179.6 | | **Total assets** | **$4,326.8** | **$4,324.4** | | Total current liabilities | $302.4 | $293.8 | | Debt | $1,509.7 | $1,513.2 | | **Total liabilities** | **$2,083.8** | **$2,105.1** | | **Total equity** | **$2,243.0** | **$2,219.3** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $194.3 million for 9M 2020, while investing and financing activities used $31.4 million and $87.8 million respectively Cash Flow Summary (Nine Months Ended Sep 30) | (in millions) | 2020 | 2019 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | **$194.3** | **$92.1** | | Net cash flows (used in) provided by investing activities | $(31.4) | $4,270.3 | | Net cash flows used in financing activities | $(87.8) | $(4,425.0) | | **Net increase (decrease) in cash** | **$58.3** | **$(215.2)** | [Notes to the Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the DMP Acquisition, debt refinancing, segment performance, and a significant tax benefit from new U.S. Treasury regulations - On July 1, 2020, the Company completed the DMP Acquisition, a provider of wastewater treatment solutions, which was integrated into the Industrial & Specialty segment[42](index=42&type=chunk) - In August 2020, the company issued **$800 million** of **3.875%** senior notes due 2028 and used the proceeds to redeem its **$800 million 5.875%** senior notes due 2025, incurring a **$45.7 million** expense for the make-whole premium and write-off of debt costs[58](index=58&type=chunk) - During Q3 2020, the company repurchased approximately **0.2 million** shares for **$2.6 million**. For the first nine months of 2020, it repurchased **4.0 million** shares for **$35.7 million**[80](index=80&type=chunk) - New U.S. Treasury regulations related to GILTI and interest expense limitations resulted in an estimated **$42 million** tax benefit for the 2018 and 2019 tax years, which was recorded in the third quarter of 2020[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2020 performance, highlighting 3% net sales growth, debt refinancing, COVID-19 impact, and a 12% decrease in Adjusted EBITDA to $101.8 million [Recent Developments](index=28&type=section&id=Recent%20Developments) Recent developments include senior note refinancing, the launch of MacDermid Envio Solutions, and ongoing share repurchases - Completed a private offering of **$800 million** in **3.875%** notes due 2028 to redeem the **5.875%** notes due 2025, reducing annual interest payments by **$16.0 million**[112](index=112&type=chunk) - Launched MacDermid Envio Solutions, a new business within the Industrial & Specialty segment focused on environmental impact reduction and wastewater treatment[113](index=113&type=chunk) - Repurchased **0.2 million** shares for **$2.6 million** in Q3 2020 and an additional **1.5 million** shares for **$17.3 million** on October 6, 2020[117](index=117&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q3 2020 net sales grew 3% reported, with Electronics showing organic growth and Industrial & Specialty declining, leading to a 12% fall in Adjusted EBITDA Q3 2020 Net Sales Growth vs. Q3 2019 | Segment | Reported Growth | Organic Growth | | :--- | :--- | :--- | | **Total Company** | **3%** | **(2)%** | | Electronics | 10% | 2% | | - Assembly Solutions | 13% | 1% | | - Circuitry Solutions | (1)% | (3)% | | - Semiconductor Solutions | 26% | 19% | | Industrial & Specialty | (8)% | (10)% | | - Industrial Solutions | (4)% | (7)% | | - Graphics Solutions | (16)% | (16)% | | - Energy Solutions | (16)% | (14)% | Q3 2020 Adjusted EBITDA Performance | (in millions) | Q3 2020 | Q3 2019 | % Change (Reported) | | :--- | :--- | :--- | :--- | | **Total Adjusted EBITDA** | **$101.8** | **$115.4** | **(12)%** | | Electronics | $72.0 | $73.6 | (3)% | | Industrial & Specialty | $29.8 | $41.8 | (28)% | - Gross margin for Q3 2020 decreased to **42.6%** from **44.3%** in Q3 2019, a contraction of **170 basis points**, primarily due to lower sales volumes and unfavorable product mix in the Industrial & Specialty segment[146](index=146&type=chunk)[147](index=147&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strong with $194.3 million in operating cash flow for 9M 2020, $248 million cash, and $349 million available credit, with no major debt payments until 2028 - Net cash from operating activities for the nine months ended Sep 30, 2020, was **$194.3 million**, a significant increase from **$92.1 million** in the same period of 2019[171](index=171&type=chunk)[172](index=172&type=chunk) - As of September 30, 2020, the company had **$248 million** in cash and cash equivalents and **$349 million** available under its revolving credit facilities[170](index=170&type=chunk)[177](index=177&type=chunk) - The company expects to pay a quarterly dividend of **5 cents per share**, subject to Board approval[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures from the 2019 Annual Report on Form 10-K - Disclosures about market risk have not changed materially from those disclosed in the 2019 Annual Report[180](index=180&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by the report[182](index=182&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[184](index=184&type=chunk) [Part II. Other Information](index=40&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and environmental claims, with further details in Note 11 - The company is involved in various legal proceedings and environmental claims incidental to its business; more information is available in Note 11[186](index=186&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses the uncertain and potentially adverse impact of the COVID-19 pandemic on operations and financial condition - A new risk factor was added highlighting that the extent of the impact of the COVID-19 pandemic on the company's results of operations and overall financial performance remains uncertain and subject to change[187](index=187&type=chunk) - Potential adverse effects from the pandemic include disruptions to global supply chains, reduced customer demand, increased operating costs, and potential impairment of goodwill or intangible assets[188](index=188&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2020, the company repurchased 237,629 shares for $2.6 million, with $207 million remaining under the $750 million repurchase program Share Repurchases for Q3 2020 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 1 - July 31 | — | — | | August 1 - August 31 | — | — | | September 1 - September 30 | 237,629 | $11.24 | | **Total** | **237,629** | **$11.24** | - As of September 30, 2020, **$207 million** remained authorized for repurchase under the company's **$750 million** program[190](index=190&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[192](index=192&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) None - None[192](index=192&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) None - None[192](index=192&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including corporate governance documents and required certifications - Lists exhibits filed with the report, including corporate governance documents, debt agreements, and required certifications[193](index=193&type=chunk)

Element Solutions Inc. (NYSE:ESI) Q3 2020 Earnings Conference Call October 28, 2020 8:30 AM ET Company Participants Yash Nehete - Associate Director, Corporate Development & Investor Relations Sir Martin Franklin - Executive Chairman Ben Gliklich - Chief Executive Officer Carey Dorman - Chief Financial Officer Conference Call Participants Steve Byrne - Bank of America Josh Spector - UBS Chris Kapsch - Loop Capital Markets Bob Court - Goldman Sachs Duffy Fischer - Barclays Jon Tanwanteng - CJS Securities Ope ...

Financial Data and Key Metrics Changes - The company generated $387 million in net sales, a 15% organic decline year-over-year, but adjusted EBITDA was $85 million, maintaining adjusted EBITDA margin year-over-year [10][12][14] - Adjusted EPS for the quarter was $0.18, reflecting the company's ability to preserve profit despite significant topline pressure [10][12] - Free cash flow for Q2 was $61 million, nearly double compared to Q2 2019, with a total of more than $109 million in the first half of 2020, up 29% year-over-year [14][21][22] Business Line Data and Key Metrics Changes - In the Electronics segment, organic net sales declined only 6% year-over-year, with strong performance in circuitry and semiconductor businesses, the latter growing nearly 20% year-over-year [15][16][11] - The Industrial & Specialty segment saw a 26% decline in organic net sales, primarily driven by a 35% decline in the Industrial Solutions vertical due to COVID-related automotive shutdowns [16][17] - The graphics business experienced a small decline in Q2 after double-digit growth in Q1, as consumer packaged goods companies delayed new product launches [17] Market Data and Key Metrics Changes - The automotive sector faced significant demand declines, impacting the company's industrial and assembly businesses, particularly in Europe and the Americas [9][10] - The semiconductor business benefited from wireless infrastructure investment and data center demand, which helped offset declines in other areas [11][12] - The company noted mixed performance in Asia, with China showing strength while India experienced softness [15] Company Strategy and Development Direction - The company intends to continue focusing on long-term growth and innovation, despite the challenges posed by COVID-19, and has not fundamentally restructured its workforce [14][30] - The management emphasized the importance of maintaining a strong workforce to support recovery in markets and to continue delivering on commitments [66] - The company is evaluating modest bolt-on acquisitions to enhance growth and capabilities while maintaining a targeted net leverage ceiling of 3.5 times adjusted EBITDA [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about recovery in markets, with July showing a 5% improvement over June, but still down 10% year-over-year [25][26] - The company expects adjusted EBITDA for Q3 to be at least $80 million, with a focus on managing costs prudently while anticipating some cost benefits from the second quarter will not repeat [27][28] - The long-term macro trends in the electronics business are viewed as robust, with expectations for continued strength in high-end electronics driven by infrastructure investments [27][46] Other Important Information - The company generated $61 million of free cash flow in Q2, with a focus on managing working capital effectively [21][22] - The company has not repurchased shares during the quarter, prioritizing employee welfare and maintaining liquidity [23] - The management highlighted the importance of innovation and local operations to mitigate risks associated with U.S.-China trade relations [72][73] Q&A Session Summary Question: Trends in metallization technology - The company noted that metallization is a core focus area, with incremental developments rather than radical changes, and is positioned as a market leader in this space [35][36] Question: R&D expense variability - The CEO clarified that R&D spending has not been cut year-over-year, and the company continues to invest in long-term growth despite some temporary reductions in compensation [38][39] Question: Impact of 5G developments on sales - The company is benefiting from infrastructure investments, particularly in the semiconductor business, which is expected to continue driving growth in the coming years [44][46] Question: Inventory destocking effects - Management acknowledged that while there has been some strength in sales, they remain cautious about potential inventory destocking impacting future performance [47][50] Question: Headcount maintenance during downturn - The company maintained its workforce to preserve expertise and capability, believing in the eventual recovery of markets [66][67] Question: Outlook for return on capital - The company expects to improve returns on capital as it grows organically without significant capital investments, focusing on continuous improvement [69][70]