Element Solutions (ESI) investor relations material

Strategic vision and portfolio evolution

• Focus remains on compounding earnings per share while enhancing value for customers and employees.

• Recent divestiture of the graphics business and reinvestment in EFC and Micromax to strengthen supply chain value and synergies.

• Ongoing search for portfolio additions that enhance customer value, with disciplined capital deployment and leverage management.

• No major portfolio gaps identified, but continuous improvement and innovation are prioritized.

Growth outlook and market dynamics

• Electronics segment saw 15% growth in Q1, with stable growth expected through 2026-2027 due to strong data center demand.

• Shift from consumer electronics to enterprise/data center focus, resulting in longer lead times and less seasonality.

• Data center-driven business now represents a significant portion of revenue, with capital commitments supporting future growth.

• Growth rates are expected to moderate but remain robust, underpinned by ongoing customer investments.

Technology, innovation, and product positioning

• Portfolio covers all critical points in electronics hardware, from silicon interconnects to circuit board pathways.

• Increasing complexity in server boards and advanced packaging drives demand for high-value, innovative materials.

• Kuprion technology enables higher power density and thermal management, with strong customer pull and capacity expansion underway.

• Assembly business benefits from finer feature sizes and new alloys, supporting high-reliability electronics.