Element Solutions (ESI) KeyBanc Capital Markets Technology Leadership Forum summary

Business overview and market positioning

• Provides chemical and process solutions enabling advanced electronics and semiconductor manufacturing, with $2.5B in revenue and 65% of business in electronics, 35% in industrial markets.

• Positioned as a key enabler for emerging technologies, supporting innovations in user interfaces, power electronics, and hardware performance.

• Maintains close customer relationships globally, engaging at early design and technology roadmap stages to drive customer-led innovation.

• Offers technical service support on-site, especially in printed circuit board and industrial markets.

Financial performance and outlook

• Achieved record adjusted EBITDA, with 21% organic growth in Q2 and guidance for 15% constant currency EBITDA growth for the year.

• Electronics business expected to grow at high single digits through the cycle; industrial business grows at GDP-plus rates.

• Trend is upward from a deep trough, with several years of record earnings anticipated.

• Growth is driven by units, content per unit, market share, and margin from mix, with potential upside from a smartphone refresh cycle.

Industry trends and innovation

• Industry shift from node size innovation to integrated chip and advanced package design, increasing demand for sophisticated materials.

• Benefiting from trends in server boards, data storage, new mobile devices, and power electronics for EVs.

• Advanced packaging now represents a much larger share of semiconductor bill of materials, driving greater engagement with OEMs and fabricators.

• Innovation is increasingly required at the materials level, with value delivered through enabling customer breakthroughs.