Element Solutions (ESI) UBS Global Materials Conference summary

Portfolio strategy and recent divestiture

• Announced sale of graphics business for $325 million, improving portfolio focus on electronics and enhancing growth and margin profile.

• Divestiture is growth, margin, and return on capital accretive, raising electronics to over 65% of the portfolio.

• No further divestitures planned; current portfolio seen as well-positioned for long-term growth.

Capital allocation and financial outlook

• Proceeds from the sale will be used for general corporate purposes and to reduce leverage, with a focus on compounding EPS.

• Historical capital allocation includes significant share buybacks and accretive M&A.

• Balance sheet leverage is at its lowest since company formation, enabling further investment.

Growth drivers and market positioning

• Electronics business benefits from both cyclical recovery and secular trends like AI and industrial automation.

• High single-digit revenue growth and EBITDA growth expected over the medium term.

• Portfolio uniquely covers all interconnects from circuit board to chip, driving market share and margin gains.