Goldman Sachs Basic Materials Conference

Transcription

1 Gldman Sachs Basic Materials Cnference May 16,

2 SAFE HARBOR Please nte that in this presentatin, we may discuss events r results that have nt yet ccurred r been realized, cmmnly referred t as frward-lking statements. The Private Securities Litigatin Refrm Act f 1995 prvides a safe harbr fr frward-lking statements made by r n behalf f the Cmpany. Such discussin and statements will ften cntain wrds such as expect, anticipate, prject, will, shuld, believe, intend, plan, estimate, predict, seek, cntinue, utlk, may, might, shuld, can have, likely, ptential, target, and variatin f such wrds and similar expressins, and relate in this presentatin, withut limitatin, t statements, beliefs, prjectins and expectatins regarding the Cmpany s prpsed separatin f its businesses; the expected frm, structure and timing f the prpsed separatin and its anticipated benefits; the Cmpany s future visin fllwing the prpsed separatin, including each business strategic fcus; the Cmpany s full year 2018 guidance, including full year rganic sales grwth expectatins, anticipated full year translatinal freign exchange impacts and the Cmpany s 2018 adjusted EBITDA guidance; reduced leverage; restructuring csts and ther nncash charges; utlk fr the Cmpany's markets and the demand fr its prducts; bank leverage ratis; cash flw cnversin; prduct prtfli and pipeline; revenue and cst synergies; and the anticipated impact f the U.S. Tax Cuts and Jbs Act f 2017 (the Tax Refrm ). These prjectins and statements are based n management's estimates and assumptins with respect t future events and financial perfrmance and are believed t be reasnable, thugh are inherently uncertain and difficult t predict. Actual results culd differ materially frm thse prjected as a result f certain factrs, which include, amng thers, the Cmpany s ability t successfully cmplete the prpsed separatin and realize the anticipated benefits frm it; the final frm, structure and timing fr cmpletin f the prpsed separatin; adverse effects n the tw cmpanies business peratins r financial results and the market price f the Cmpany s shares as a result f the cmpletin f the prpsed separatin and/r annuncement and cmpletin f related transactins; market vlatility; legal, tax and regulatry requirements; the impact f the Tax Refrm n the prpsed separatin and the Cmpany s businesses; unanticipated delays and transactin expenses; the impact f the prpsed separatin n the Cmpany s emplyees, custmers, suppliers and lenders; the ability f the tw cmpanies t perate independently fllwing the prpsed separatin; the diverting f management s attentin frm the Cmpany s nging business peratins; verall glbal ecnmic and business cnditins impacting the businesses f the tw cmpanies, as well as capital markets and liquidity; the pssibility f mre attractive strategic ptins arising in the future; and the impact f any future acquisitins r additinal divestitures, restructurings, refinancings, and ther unusual items, including Platfrm's ability t raise new debt and equity and t integrate and btain the anticipated benefits, results and synergies frm these items r ther related strategic initiatives. Frward-lking statements regarding the anticipated impact f the Tax Refrm n the Cmpany's businesses cnsist f preliminary estimates, which are based n currently available infrmatin as well as management's current interpretatins, assumptins and expectatins relating t the Tax Refrm, and subject t change, pssibly materially, as the Cmpany cmpletes its analysis. Additinal infrmatin cncerning these and ther factrs that culd cause Platfrm s actual results t vary is, r will be, included in Platfrm s peridic and ther reprts filed with the Securities and Exchange Cmmissin. Platfrm undertakes n bligatin t update any frward-lking statement, whether as a result f new infrmatin, future events r therwise. This presentatin als cntains unaudited cmparable financial infrmatin which assumes full perid cntributin f all the Cmpany s acquired businesses t date: the Chemtura AgrSlutins business f Chemtura Crpratin and Percival S.A., r Agriphar, acquired in 2014; Alent plc, Arysta LifeScience Ltd, and the Electrnic Chemicals and Phtmasks businesses f OM Grup, Inc. acquired in 2015; and OMG Electrnic Chemicals (M) Sdn Bhd acquired in This cmbined infrmatin is prvided fr infrmatinal purpses nly and is nt necessarily, and shuld nt be assumed t be, an indicatin f the results that wuld have been achieved had the Cmpany s acquisitins been cmpleted as f the dates indicated, r that may be achieved in the future. Histrical financial results and infrmatin included herein relating t these acquired businesses were derived frm public filings, when applicable, and/r infrmatin prvided by management f these businesses prir t their acquisitins by the Cmpany. Althugh we believe it is reliable, this infrmatin has nt been verified, internally r independently. In additin, financial infrmatin fr sme f these acquired businesses was histrically prepared in accrdance with nn-gaap accunting methds, and may r may nt be cmparable t the Cmpany s financial statements. Cnsequently, there is n assurance that the financial results and infrmatin fr these legacy businesses included herein are accurate r cmplete, r representative in any way f the Cmpany s actual r future results as a cnslidated cmpany. Industry, market and cmpetitive psitin data described in this presentatin were btained frm the Cmpany s wn internal estimates and research, as well as frm industry and general publicatins and research, surveys and studies cnducted by third parties. While the Cmpany believes its internal estimates and research are reliable and the market definitins are apprpriate, such estimates, research and definitins have nt been verified by any independent surce. Yu are cautined nt t place undue reliance n this data. 2

3 NON-GAAP INFORMATION T supplement the financial measures prepared in accrdance with generally accepted accunting principles in the United States ( GAAP ), the Cmpany uses the fllwing nn-gaap financial measures: EBITDA and adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA guidance, cash flw cnversin, cmparable adjusted EBITDA grwth, cmparable adjusted EBITDA margin, adjusted earnings (lss) per share, and rganic sales grwth. The Cmpany als evaluates and presents its results f peratins n a cnstant currency basis. The recnciliatins f these nn-gaap measures t the mst directly cmparable financial measures calculated and presented in accrdance with GAAP can be fund in the appendix f this presentatin. The Cmpany nly prvides adjusted EBITDA guidance and rganic sales grwth expectatins n a nn-gaap basis, and des nt prvide recnciliatins f such frward-lking nn-gaap measures t GAAP due t the inherent difficulty in frecasting and quantifying certain amunts that are necessary fr such recnciliatins, including adjustments that culd be made fr restructurings, refinancings, divestitures, integratin and acquisitin-related expenses, share-based cmpensatin amunts, nnrecurring, unusual r unanticipated charges, expenses r gains, adjustments t inventry and ther charges reflected in the recnciliatin f histric numbers, the amunt f which, based n histrical experience, culd be significant. Management internally reviews each f these nn-gaap measures t evaluate perfrmance n a cmparative perid-t-perid basis in terms f abslute perfrmance, trends and expected future perfrmance with respect t the Cmpany s business, and believes that these nn-gaap measures prvide investrs with an additinal perspective n trends and underlying perating results n a perid-t-perid cmparable basis. Platfrm als believes that investrs find this infrmatin helpful in understanding the nging perfrmance f its peratins separate frm items that may have a disprprtinate psitive r negative impact n Platfrm's financial results in any particular perid. These nn-gaap financial measures, hwever, have limitatins as analytical tls, and shuld nt be cnsidered in islatin frm, r a substitute fr, r superir t, the related financial infrmatin that Platfrm reprts in accrdance with GAAP. The principal limitatins f these nn-gaap financial measures is that they exclude significant expenses and incme that are required by GAAP t be recrded in the Cmpany s financial statements, and may nt be cmpletely cmparable t similarly titled measures f ther cmpanies due t ptential differences in the methd f calculatin between cmpanies. In additin, these measures are subject t inherent limitatins as they reflect the exercise f judgment by management abut which items are excluded r included in determining these nn-gaap financial measures. Investrs are encuraged t review the recnciliatins f these nn-gaap financial measures t their mst cmparable GAAP financial measures included herein and in the earnings release, and nt t rely n any single financial measure t evaluate Platfrm s businesses. Please see the appendix t this presentatin fr a mre detailed descriptin f each nn-gaap financial measure used by the Cmpany, including the adjustments reflected in each f them and the reasn why we believe such nn-gaap measures are useful t investrs. 3

4 INTRODUCTION TO PLATFORM Glbal diversified specialty chemicals cmpany fcused n marketing-leading, high quality, and high cash-flw businesses 2017 Key Statistics 2017 Net Sales Breakdwn Net Sales: $3,776M By Segment By Gegraphy Adj. EBITDA*: $821M Adj. EBITDA Margin*: 22% Cash Flw Cnversin 1 *: 88% Perfrmance Slutins 50% Agricultural Slutins 50% Asia 27% EMEA 33% Nrth America 19% Latin America 21% Segment Overview Agricultural Slutins Perfrmance Slutins Financials 2017 Net Sales: $1,897M 2017 Adj. EBITDA 2 *: $388M 2017 Net Sales: $1,879M 2017 Adj. EBITDA 2 *: $433M End Markets Specialty Crp Prtectin Animal Health Cnsumer Electrnics Offshre Oil & Gas Bislutins Autmtive * The financial measures, n this slide and subsequent slides, are nt in accrdance with GAAP. Fr definitins f these nn-gaap measures, discussins f adjustments and recnciliatins, please refer t the appendix f this presentatin 1. Cash flw cnversin is calculated as adj. EBITDA less Capex (capital expenditures f $59 millin and investments in registratins f prducts f $41 millin) divided by adj. EBITDA 2. Segment adj. EBITDA includes crprate cst allcatins f $31 millin allcated t each segment 4

5 PLATFORM S FUTURE VISION TWO SEPARATE HIGH-QUALITY BUSINESSES ~$1.9bn+ 1 Glbal Agricultural Chemical Business ~$1.9bn+ 1 Glbal Specialty Chemical Business Key End- Markets Specialty Crp Prtectin Animal Health Bi Slutins Cnsumer Electrnics Autmtive Offshre Oil & Gas Industry Psitining Distinctive psitin as frmulatin-based Ag chemical cmpany with glbal scale and niche crp fcus Industry innvatr that develps new slutins fr farmers Significant glbal presence in fast-grwing bislutins with tp-tier psitin in bi-stimulants 1 A market leader in specialty chemicals fr surface treatment and electrnic assembly Leading specialty chemical supplier selling mre than $1.6 billin f surface chemistry and assembly slutins acrss electrnic and industrial end-markets 1 Strategic Fcus Develp R&D pipeline and expand strategic partnerships with fcus n high value, differentiated slutins fr farmers Inrganic pprtunities targeting mlecule acquisitins, licenses and gegraphic expansin Fcused n fast grwing markets including semicnductr and autmtive Ample pprtunity remaining in existing and adjacent endmarkets fr inrganic grwth Leverage glbal scale and breadth t enter new markets and expand prduct fferings Financial Prfile 2 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20.6% Cmparable* 2014 Cnstant Currency Adj. EBITDA Grwth* 20.9% 3% Cmparable* 2015 Adj. EBITDA Margin* 22.1% 22.1% 5% 5% % 24.00% 23.00% 22.00% 21.00% 20.00% 19.00% 2017 Financials: Organic sales grwth* f 3% 22% adj. EBITDA margin* 82% cash flw cnversin 3 * 12% 10% 8% 6% 4% 2% 0% 20.9% Cmparable* 2014 Cnstant Currency Adj. EBITDA Grwth* 22.7% 4% Cmparable* % 10% Adj. EBITDA Margin* 24.7% 7% % 24.00% 23.00% 22.00% 21.00% 20.00% 19.00% 2017 Financials: Organic sales grwth* f 4% 25% adj. EBITDA margin* 93% cash flw cnversin 4 * Tw Independent Specialty Chemical Cmpanies with Exciting Grwth Opprtunities and Rbust Cash Flws * See Nn-GAAP ftnte n p.4 1. Based n 2017 sales 2. Segment adj. EBITDA excludes crprate cst allcatins 3. Cash flw cnversin is calculated as adj. EBITDA less Capex (capital expenditures f $30 millin and investments in registratins f prducts f $41 millin) divided by adj. EBITDA 4. Cash flw cnversin is calculated as adj. EBITDA less Capex (capital expenditures f $29 millin) divided by adj. EBITDA 5

6 PLATFORM Q1 RESULTS Cnstant Currency * Organic * ($ in millins) Q Q YY% YY% YY% Net Sales $964 $862 12% 5% 5% Perfrmance Slutins % 3% 4% Agricultural Slutins % 6% 6% GAAP Diluted EPS $0.13 $(0.09) Adj. EBITDA* % (3)% % margin 21.5% 22.4% (90) bps (160) bps Perfrmance Slutins % 2% % margin 22.7% 22.9% (20) bps (30) bps Net sales grew 12% driven by rganic grwth in bth Agricultural Slutins and Perfrmance Slutins Strng cntributin frm LatAm, particularly Brazil, and psitive start t the Nrth American Ag seasn Healthy end-markets in Perfrmance Slutins drve grwth in Electrnics, Industrial and Assembly businesses ~$60 millin FX translatin benefit driven primarily by the Eur GAAP diluted EPS f $0.13 increased year-ver-year driven primarily by nnperating freign exchange gains and lwer interest expense in the quarter Agricultural Slutins % (8)% Adjusted EPS* grew 31% year ver year % margin 20.2% 21.9% (170) bps (290) bps Adj. EPS* $0.21 $ % Cnstant currency adj. EBITDA* declined 3% due t grss margin pressure frm prduct mix in bth segments and pressure frm increased pricing frm Chinese suppliers, the impact f which is expected t mderate thrugh the remainder f the year * See Nn-GAAP ftnte n p.4 Nte: Ttals may nt sum due t runding 6

7 FULL YEAR 2018 GUIDANCE Market Cmmentary Perfrmance Slutins Generally healthy end-markets driven by verall ecnmic grwth and secular trends supprting highperfrmance electrnics markets Strng energy prices have nt yet translated t meaningful capital investment behind ffshre il Agricultural Slutins Expect mdest grwth in verall market in 2018 Tighter supply f active ingredients frm China driving pricing higher and creating pprtunity fr share gain as well as creating margin pressure in certain prducts Q2 Cnsideratins Cntinued expectatin fr rganic grwth* in all businesses Margin pressure frm prduct mix and raw material inflatin t mderate as mre nrmalized mix returns and specific pricing actins take effect Peak seasn in Eurpe Currency tailwinds shuld persist int the quarter Cld start t the seasn in Eastern Eurpe shuld push sales f high margin prducts frm Q1 int Q2 Opprtunity t drive pricing in certain markets shuld supprt rganic grwth* and margin recvery FY Organic Sales Grwth* Expectatins ~3 4% ~3 4% Anticipated FY Translatinal FX Impacts 1,2 ~Lw single-digit % adjusted EBITDA* tailwind ~Lw single-digit % adjusted EBITDA* tailwind 2018 Adj. EBITDA Guidance* f $870 millin t $900 Millin 2 * See Nn-GAAP ftnte n p.4 1. Des nt include transactinal FX headwinds/tailwinds r FX related price mvements Guidance based n freign exchange rates at March 31,

8 2018 PRIORITIES Executin: Build n Operating Mmentum and Cntinue t Drive Abve Market Revenue Grwth Manage Cst and Drive Margin Expansin thrugh Synergies and Cntinuus Imprvement Generate Free Cash Flw and Reduce Leverage Ensure a Successful Separatin t Maximize Sharehlder Value 8

9 APPENDIX 9

10 PERFORMANCE SOLUTIONS Q1 RESULTS Q17 Sales Net Sales ($M) FX Translatin (3) Metals 1Q17 Adjusted Sales Organic Grwth 492 1Q18 Sales Net sales increased by $45 millin r 10% in 1Q18 due primarily t FX tailwinds and rganic grwth in all majr verticals Organic sales* increased 4% in the quarter Industrial and Alpha grwth cntinued in line with expectatins due t relatively healthy end-markets Electrnics grwth driven bth by Asia demand imprvement and prcess equipment sales Offshre and Graphics sales were rughly flat, but an imprving demand envirnment driving a psitive full year utlk Adj. EBITDA* increased 9% year-ver-year, and increased 2% n a cnstant currency basis Adj. EBITDA* ($M) Custmer and prduct mix impacts in Electrnics - expected t imprve as demand ramps thrughut the year Increased metals prices drve lwer margin sales grwth, muting incremental margins primarily in Industrial Cst pressures frm facility ratinalizatin expected t be transitry with mitigatin actins already underway acrss the supply chain 50 1Q17 Adj EBITDA FX Translatin Organic Grwth 1Q18 Adj EBITDA Crprate Allcatin 1Q18 Adj EBITDA ex Crp Csts * These financial measures, n this slide and subsequent slides, are nt in accrdance with GAAP. Please refer t the definitins f these nn-gaap measures, discussins f adjustments and recnciliatins in this appendix 10 Nte: Ttals may nt sum due t runding

11 AGRICULTURAL SOLUTIONS Q1 RESULTS Q17 Sales 91 1Q17 Adj EBITDA FX Translatin Net Sales ($M) (7) Organic Grwth 446 FX Translatin 1Q17 Adjusted Sales Adj. EBITDA* ($M) 1Q18 Adj EBITDA 26 Organic Grwth Crprate Allcatin 472 1Q18 Sales 103 1Q18 Adj EBITDA ex Crp Csts Net sales increased by $57 millin r 14% in 1Q18 driven by FX tailwinds primarily in the Eur and rganic grwth acrss gegraphies Organic sales* increased 6% in the quarter Strng finish t the selling seasn in Brazil and strng sales in the Americas driven by rw crps in the US Eurpean grwth was muted by cld weather that delayed planting in Central & Eastern Eurpe Cntinued cntributins frm new market expansin initiatives Adj. EBITDA* grew 5% year-ver-year and declined 8% n a cnstant currency* basis Delayed cereal herbicide sales in Nrth America vs prir year, impacting margin mix expected t be recaptured in the balance f the year Pricing actins and anticipated vlume benefits thrughut 2018 expected t mderate impact f inflatin n certain raw materials surced frm China Investment in bts n the grund t drive grwth in new, high-value markets funded by cntinuus cst imprvement initiatives Cmpelling strategic investments: Agreement t acquire New Zealand crp prtectin business Licensed cmpelling active ingredient fr the large and grwing Indian rice market * See Nn-GAAP ftnte n p Nte: Ttals may nt sum due t runding

12 CAPITAL STRUCTURE $ millins Instrument Maturity Cupn 3/31/2018 Crprate Revlver 6/7/2020 $52 Term Lan B6 - USD 1,2 6/7/2023 L ,135 Term Lan B7 - USD 1 6/7/2020 L Term Lan C5 - EUR 1,2 6/7/2023 E Term Lan C6 - EUR 1 6/7/2020 E Other Secured Debt 19 Ttal First Lien Debt $3, % Senir Ntes due /1/ % 1, % Senir Ntes due 2023 (Eur) 2/1/ % % Senir Ntes due /1/ % 800 Other Unsecured Debt 51 Ttal Unsecured Debt $2,382 Ttal Debt $5,677 Cash Balance at 3/31/ Net Debt $5,264 Adjusted Shares Outstanding Market Capitalizatin 4 $2,908 Ttal Capitalizatin $8,172 Nte: Ttals may nt sum due t runding 1. Platfrm swapped certain f its flating term lans t fixed rate including $1.13 billin f its USD tranches and 278 millin f its Eur tranches. At March 31, 2018, apprximately 33% f debt was flating and 67% was fixed 2. These term lans mature n June 7, 2023, prvided that the Cmpany prepays, redeems r therwise retires and/r refinances in full its 6.50% USD Senir Ntes due 2022, as permitted under its Amended and Restated Credit Agreement, n r prir t Nvember 2, 2021, therwise the maturity reverts t Nvember 2, See p.13 fr recnciliatin t Adjusted Share Cunts 4. Based n Platfrm's clsing price f $9.63 at March 29, 2018, the last trading day f Q

13 RECONCILIATION TO ADJUSTED SHARE COUNTS (in millins) Q Q Basic utstanding shares Number f shares issuable upn cnversin f PDH Cmmn Stck 4 6 Number f shares issuable upn cnversin f Series A Preferred Stck 2 2 Number f shares issuable upn vesting and exercise f Stck Optins 1 1 Number f shares issuable upn vesting f granted Equity Awards 7 6 Adjusted shares Nte: Ttals may nt sum due t runding 13

14 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS RECONCILIATION TO ADJ. EBITDA (Amunts in millins) Q Q Net incme (lss) attributable t cmmn stckhlders $37 $(24) Add (subtract): Net incme attributable t the nn-cntrlling interests 1 1 Incme tax expense Interest expense, net Depreciatin expense Amrtizatin expense EBITDA Adjustments t recncile t Adjusted EBITDA: Restructuring expense 3 2 Acquisitin and integratin csts 1 4 Nn-cash change in fair value f cntingent cnsideratin 1 1 Freign exchange (gain) lss n freign denminated external and internal lng-term debt (56) 12 Nnrecurse factring csts 1 1 Debt refinancing csts 1 Csts related t Prpsed Separatin 3 0 Gain n sale f equity investment (11) Other, net (7) 2 Adjusted EBITDA $207 $193 Nte: Ttals may nt sum due t runding 14

15 NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS RECONCILIATION TO ADJ. EBITDA (Amunts in millins) FY 2017 FY 2016 FY 2015 FY 2014 Net lss attributable t cmmn stckhlders $(296) $(41) $(309) $(263) Add (subtract): Gain n amendment f Series B Cnvertible Preferred Stck (33) Stck dividend n funder preferred shares 233 Net incme (lss) attributable t the nn-cntrlling interests 1 (3) 4 6 Incme tax expense (benefit) (7) Interest expense, net Depreciatin expense Amrtizatin expense EBITDA Adjustments t recncile t Adjusted EBITDA: Restructuring expense Amrtizatin f inventry step-up Acquisitin and integratin csts Nn-cash change in fair value cntingent cnsideratin Legal settlements (11) (3) (16) Freign exchange lss n freign denminated external and internal lng-term debt Fair value lss n freign exchange frward cntract 74 Gdwill impairment Gain n settlement agreement related t Series B Cnvertible Preferred Stck (103) Nn-cash change in fair value f preferred stck redemptin liability 5 Debt refinancing csts Csts related t Prpsed Separatin 12 Pensin plan settlement and curtailment 11 2 Other, net (3) 1 Adjusted EBITDA $821 $769 $568 $212 Nte: Ttals may nt sum due t runding 15

16 SEGMENT COMPARABLE SALES RECONCILIATION Perfrmance Slutins Agricultural Slutins (amunts in millins) Net Sales $801 $755 $1,742 $88 Acquisitins: Alent 847 1,063 OM Arysta 87 1,533 CAS 380 Agriphar 170 Cmparable Sales $1,791 $1,990 $1,829 $2,171 Nte: Ttals may nt sum due t runding 16

17 SEGMENT EBITDA RECONCILIATION (amunts in millins) Perfrmance Slutins Agricultural Slutins Ttal YY% YY% YY% Adj. EBITDA $433 $401 8% $388 $368 5% $821 $769 7% Crprate allcatins $63 66 Adj. EBITDA ex-crp cst $464 $434 7% $420 $401 5% $884 $835 6% Freign exchange translatin Cnstant Currency ex-crp cst $465 $434 7% $421 $401 5% $886 $835 6% Perfrmance Slutins Agricultural Slutins Ttal (amunts in millins) YY% YY% YY% Adj. EBITDA ex-crp cst $434 $236 84% $401 $379 6% $835 $616 36% Acquisitins: Alent OM Arysta 3 3 Cmparable Adj. EBITDA ex-crp cst % % % Crprate allcatins (33) (24) (33) (24) (66) (48) Cmparable Adj. EBITDA % % % Freign exchange translatin Cmparable Cnstant Currency % % % Cmparable Cnstant Currency ex-crp cst $450 $407 10% $401 $382 5% $851 $790 8% Nte: Ttals may nt sum due t runding 17

18 SEGMENT COMPARABLE EBITDA RECONCILIATION (amunts in millins) Perfrmance Slutins Agricultural Slutins Ttal YY% YY% YY% Adj. EBITDA ex-crp cst $236 $212 11% $379 $16 n/m $616 $228 n/m Acquisitins: Alent OM Arysta CAS Agriphar Cmparable Adj. EBITDA ex-crp cst (2)% (14)% (9)% Crprate allcatins (24) (8) (24) (8) (48) (16) Cmparable Adj. EBITDA (6)% (18)% (12)% Freign exchange translatin (25) 6 (70) 6 (95) Cmparable Cnstant Currency % (1)% (1)% Cmparable Cnstant Currency ex-crp cst $407 $392 4% $388 $377 3% $796 $768 4% Nte: Ttals may nt sum due t runding cnstant currency calculatin used full year 2015 average exchange rates per histrical methdlgy n/m: Dentes calculatin is nt meaningful 18

19 GAAP DILUTED EARNINGS (LOSS) PER SHARE (EPS) RECONCILIATION TO ADJUSTED DILUTED EPS (amunts in millins, except per share amunts) Q Q GAAP diluted earnings (lss) per share $0.13 $(0.09) Weighted average shares utstanding Net incme (lss) attributable t cmmn stckhlders $37 $(24) Adjustments: Reversal f amrtizatin expense Adjustment fr investment in registratin f prducts (13) (13) Restructuring expense 3 2 Acquisitin and integratin csts 1 4 Nn-cash change in fair value f cntingent cnsideratin 1 1 Freign exchange (gain) lss n freign denminated external and internal lng-term debt (56) 12 Nnrecurse factring csts 1 1 Debt refinancing csts 1 Csts related t Prpsed Separatin 3 0 Gain n sale f equity investment (11) Other, net (7) 2 Tax effect f pre-tax nn-gaap adjustments 2 (27) Adjustment t estimated effective tax rate Adjustment t reverse incme attributable t certain nn-cntrlling interests 1 2 Adjusted net incme attributable t cmmn stckhlders $64 $49 Adjusted earnings per share $0.21 $0.16 Adjusted shares utstanding Nte: Ttals may nt sum due t runding 19

20 QUARTERLY RESULTS OVERVIEW (Amunt in millins) Q1 Q2 Q3 Q4 Q1 Net Sales Perfrmance Slutins $447 $462 $481 $489 $492 Agricultural Slutins Ttal Net Sales $862 $941 $904 $1,069 $964 Adjusted EBITDA Perfrmance Slutins $102 $103 $116 $112 $112 Agricultural Slutins Ttal Adjusted EBITDA $193 $205 $197 $226 $207 Nte: Ttals may nt sum due t runding 20

21 ORGANIC SALES GROWTH RECONCILIATION Q Organic Sales Grwth Reprted Net Sales Grwth Impact f Currency Cnstant Currency Metals Acquisitins Organic Sales Grwth Perfrmance Slutins 10% (7)% 3% 1% % 4% Agricultural Slutins 14% (7)% 6% % % 6% Ttal 12% (7)% 5% % % 5% FY 2017 Organic Sales Grwth Reprted Net Sales Grwth Impact f Currency Cnstant Currency Metals Acquisitins Organic Sales Grwth Perfrmance Slutins 6% % 6% (1)% % 4% Agricultural Slutins 4% (2)% 3% % % 3% Ttal 5% (1)% 4% (1)% % 4% Nte: Ttals may nt sum due t runding 21

22 NON-GAAP DEFINITIONS Adjusted Earnings Per Share (EPS): Adjusted earnings per share is defined as net incme (lss) attributable t cmmn stckhlders adjusted t reflect adjustments cnsistent with the Cmpany s definitin f adjusted EBITDA. Additinally, the Cmpany eliminates the amrtizatin assciated with (i) intangible assets recgnized in purchase accunting fr acquisitins and (ii) csts capitalized in cnnectin with btaining regulatry apprval f its prducts ( registratin rights ) as part f nging peratins, and deducts capital expenditures assciated with btaining these registratin rights. Further, it adjusts the effective tax rate t 34%. The resulting adjusted net incme available t stckhlders is divided by the number f shares f utstanding cmmn stck as f the perid end plus the number f shares that wuld be issues if all Platfrm s cnvertible stck were cnverted t cmmn stck, vested stck ptins were exercised and awarded equity grants were vested as f the perid end. Adjusted earnings per share is a key metric used by management t measure perating perfrmance and trends. In particular, the exclusin f certain expenses in calculating adjusted earnings per share facilitates perating perfrmance cmparisns n a perid-t-perid basis. EBITDA and Adjusted EBITDA: EBITDA represents earnings befre interest, prvisin fr incme taxes, depreciatin and amrtizatin. Adjusted EBITDA is defined as EBITDA, excluding the impact f additinal items, which are nt representative r indicative f the Cmpany s nging business as described in the ftntes t the nn-gaap measures recnciliatins. Adjusted EBITDA fr each segment als includes an allcatin f crprate csts, such as cmpensatin expense and prfessinal fees. Management believes adjusted EBITDA and adjusted EBITDA margin prvide investrs with a mre cmplete understanding f the lng-term prfitability trends f Platfrm s business, and facilitate cmparisns f its prfitability t prir and future perids. Hwever, these measures, which d nt cnsider certain cash requirements, shuld nt be cnstrued as an alternative t net incme r cash flw frm peratins as a measure f prfitability r liquidity. Cash Flw Cnversin: Free Cash Flw cnversin is calculated as Adj. EBITDA less Capex (capital expenditures and investments in registratins f prducts) divided by adj. EBITDA. Management believes this is an imprtant measure in evaluating the Cmpany s financial perfrmance and measuring the Cmpany s ability t generate cash withut incurring additinal external financings r significant re-investments. Cmparable Adjusted EBITDA: Cmparable adjusted EBITDA is defined as Adjusted EBITDA adjusted t reflect acquisitins and the related financings as thugh they had ccurred n January 1, 2014 withut the impact f purchase accunting. Adjusted EBITDA and cmparable adjusted EBITDA are key metrics used by management t measure perating perfrmance and trends. In particular, the exclusin f certain expenses in calculating adjusted EBITDA and cmparable adjusted EBITDA facilitates perating perfrmance cmparisns n a perid-t-perid basis. Management believes cmparable Adjusted EBITDA prvides investrs with a mre cmplete understanding f the lng-term prfitability trends f Platfrm s business, and facilitates cmparisns f its prfitability t prir and future perids. Cnstant Currency and Cmparable Cnstant Currency: Cnstant currency presentatin excludes the impact f fluctuatins in freign currency exchange rates. Cnstant currency percentages are calculated by cnverting the current-perid lcal currency financial results int U.S. Dllar using the prir perid's exchange rates and cmparing these adjusted amunts t ur prir perid reprted results. The difference between actual grwth rates and cnstant currency grwth rates represents the impact f freign currency. The cmparable cnstant currency presentatin includes actual results adjusted t reflect acquisitins and related financings as thugh they had ccurred at the beginning f the previus perid adjusted fr the effects f purchase accunting n actual results. Management believes that these presentatins prvide a mre cmplete understanding f the Cmpany's peratinal results and a meaningful cmparisn f its perfrmance between perids. Hwever, the cmparable financial infrmatin is prvided fr infrmatinal purpses nly and is nt necessarily, and shuld nt be assumed t be, an indicatin f the results that wuld have been achieved had the Cmpany's acquisitins been cmpleted as f the dates indicated, r that may be achieved in the future. Organic Sales Grwth: Organic sales grwth is defined as net sales excluding the impact f freign currency translatin, changes due t the price f certain metals, and acquisitins and/ r divestitures, as applicable. Management believes this nn-gaap financial measure prvides investrs with a mre cmplete understanding f the underlying net sales trends by prviding cmparable sales ver differing perids n a cnsistent basis. Fr the twelve mnths ended December 31, 2017, metals pricing benefited Perfrmance Slutins and ur cnslidated results by $23.6 millin. Fr the twelve mnths ended December 31, 2017, acquisitins benefited Perfrmance Slutins and ur cnslidated results by $2.8 millin. Fr the three mnths ended March 31, 2018, metals pricing had a negative impact n Perfrmance Slutins and Platfrm s results f $2.6 millin 22