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]

| --- | --- | --- | |-------|-------|-----------------------| | | | 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)