Element Solutions Inc 2024年度报告

Our success is a by-product of the efforts and capabilities of our people, from our research anddevelopment laboratories to our customers’ manufacturing floors. Our technical expertise and innovationtrack records are the result of a specialized, highly-skilled workforce. Our ability to drive profitable growththrough technical process know-how, strong customer relationships and industry knowledge relies on ourability to attract, grow and retain highly-skilled and motivated teams at all levels of our organization. THE PILLARS OFOUR STRATEGY As a results-orientated company focused on innovation and service, our strategic pillars guide ourbehavior and priorities towards long-term success and continuous high performance. CUSTOMER-CENTRIC, TECHNICALLY SKILLED WORKFORCE ~40% OF FULL-TIME EMPLOYEES ARE RESEARCH AND DEVELOPMENT CHEMISTS AND EXPERIENCED TECHNICALSERVICE AND SALES PERSONNEL. WE CONDUCT REGULAR EMPLOYEE ENGAGEMENT SURVEYS, WHICH HELP US UNDERSTAND OUR STRENGTHSAND AREAS FOR IMPROVEMENT. IN 2024, 90% OF OUR EMPLOYEES PARTICIPATED IN OUR SURVEY AND 80%OF QUESTIONS RECEIVED AN IMPROVED SCORE FROM 2022. HIGH INTERNAL FILL RATE MORE THAN 75% OF OUR OPEN POSITIONS SENIOR MANAGER AND ABOVE WERE FILLED BY INTERNAL CANDIDATES. LIFELONG LEARNING OPPORTUNITIES IN 2024, WE LAUNCHED OUR NEW ESI LEARNING HUB, WHICH OFFERS VALUABLE RESOURCES AND TOOLS TO OUREMPLOYEES, SUCH AS OUR KITS (KNOWLEDGE, INSIGHTS & TRAINING SERIES) AND AN EXTENSIVE VIRTUAL LIBRARYOF TOPICS RELATED TO LEADERSHIP & CULTURE. OVER 3,400 EMPLOYEES HAVE MADE 38,000+ SITE VISITS SINCEITS MID-YEAR LAUNCH. THE ELEMENTS OFOUR CULTURE Our employees embody the 5Cs of our culture in their interactions withcustomers, colleagues and other counterparties to drive sustainablefinancial performance and create a rewarding environment. CHALLENGE COLLABORATE CARE WE VALUE TEAMWORK, WITH OUR CUSTOMERS ANDOUR COLLEAGUES, IN PURSUIT OF EXCELLENCEAND IMPROVEMENT IN EVERYTHING WE DO. WE ESTABLISH AMBITIOUS GOALS,TAKE CALCULATED RISKS, MAINTAIN HIGHSTANDARDS AND SEEK TO EXCEED EXPECTATIONS. WE CARE ABOUT OUR CUSTOMERS, OURCOLLEAGUES, OUR ENVIRONMENT ANDOUR PLACE IN THE WORLD AT LARGE. LETTER FROM THEEXECUTIVE CHAIRMAN DEAR FELLOW SHAREHOLDERS, 2024 marked another outstanding year of performance and progress for ESI.We demonstrated meaningful growth across exciting, high-value end marketsand continued investing to position our businesses for long-term success.Financial performance was robust on numerous metrics. Organic salesoutpaced unit growth in the markets we serve, and we grew gross margins inall business units through improved mix and supply chain efficiency. We onceagain demonstrated high-incremental margins despite a build back invariable cost. Cash flow was once again outstanding. We produced yetanother year of greater than 50% conversion of adjusted EBITDA to free cashflow, a testament to our capital efficiency and financial discipline. Ourcash return on investment remains best-in-class in our industry. business in February 2025 represented such a scenario. Selling that businessenhanced our overall margin profile and growth algorithm. With pro formayear-end leverage approaching two times net debt to adjusted EBITDA andover $700 million of cash, our balance sheet is as strong as ESI has ever seen it.We believe we are in an excellent position to deploy our substantial capacity tofurther enhance shareholder value from here. Looking ahead, I am confident that ESI is primed for continued success. Wehave businesses, markets and leaders that have now demonstrated resil-ience through various demand and supply cycles—driving growth, improvingmargins, generating strong cash flow, and intelligently deploying capital. Ourmanagement team, known for its operational discipline, strong culture, andindustry foresight, is well-equipped to execute on our strategy. With ourhealthy balance sheet, significant dry powder, market-leading positions, andsecular growth tailwinds in our key electronics markets—we are poised tocapitalize on exciting opportunities from here. I remain as optimistic as everabout the future of this business and the remarkable team that drives it. In 2024, we continued to execute strategically to improve the long-termvalue of this business. We made new internal investments in capabilitiessupporting emerging technologies, further solidifying our position at theforefront of innovation in enabling materials. We expanded our productioncapacity in certain high-growth areas to meet surging demand, and weexecuted thoughtful succession planning within multiple of our businessunits and functions, ushering in another new cohort of exceptional leadersto drive ESI forward for the long-term. Sincerely, We took deliberate steps to enhance our portfolio. While all our businesses arehigh-quality, we have always recognized that some may be more valuable toother owners than they are to us. The strategic sale of our flexographic printing CHOOSE COMMIT