# LETTER FROM
THE EXECUTIVE
CHAIRMAN

_Source: `DeepSeekOCR_Ardian_pruned_1k/basic-materials-specialty-chemicals/NYSE_ESI_2018/NYSE_ESI_2018.mmd` · pages 5-11_

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LETTER FROM
THE EXECUTIVE
CHAIRMAN

## DEAR FELLOW
SHAREHOLDERS,

This was a watershed year for our Company. We successfully executed on our strategic initiatives, specifically the sale of our Agricultural Solutions segment, Arysta LifeScience, while continuing to display strong financial performance. We started 2018 committed to separating our businesses, and the announcement of the definitive agreement to sell Arysta in July marked the culmination of this transformational initiative. As we neared the January 2019 completion of the divestiture, and the enormous amounts of preparation leading up to that closing, our Board and leadership team hit the ground running in launching Element Solutions Inc.

Element Solutions is a focused and nimble company with well-positioned businesses in growing end-markets. We are market leaders who provide a wide breadth of products and services to our businesses' customers. This translates to robust cash flow generation and high returns-on-capital, which are as good as I have ever seen in any business. Being led by a strong and evolving leadership team, I believe Element Solutions has a clear path to long-term value creation.

Our focus for capital allocation will be on continuing to grow our cash flows and intrinsic value by investing in high-return organic growth initiatives and strategic tuck-in acquisitions within existing markets. We are also focused on returning capital from our consistent and stable cash flows to our shareholders. As evidence of this, immediately following the divestiture we deployed more than $430 million of cash to repurchase approximately 13% of our shares in one transaction. We will continue to remain opportunistic and disciplined in our capital allocation process and remain committed to preserving the healthy balance sheet position we have today.
The separation of Arysta and subsequent launch of Element Solutions represented substantial undertakings for our employees around the world. Our teams successfully executed on all of our stated strategic goals in 2018, which included ensuring that our remaining businesses delivered on their financial objectives. Despite some weakness in our end-markets, we were able to grow organically and increase our adjusted EBITDA, which highlights the resiliency of our businesses despite multiple distractions. As I have repeatedly said, our most important assets are our people and they performed most admirably throughout 2018. I believe Ben Gliklich, our new CEO, will carry the torch for enhancing and optimizing the culture within Element Solutions, to make it not only one of the most profitable specialty chemical companies in the industry, but also one of the most rewarding places to work.

As we look ahead, our momentum becomes stronger by the day and I am more confident than ever in the future of this company. This will be a business that stays true to its commitments and delivers results. This coming year has a lot of promise. We look forward to demonstrating our ability to grow, to manage costs and to generate cash flows for the benefit of all our stakeholders.

Respectfully yours,

![](images/5_1.jpg)

## OFFICE OF THE CHAIRMAN

FROM LEFT:

// BENJAMIN GLIKLICH
Chief Executive Officer

// SCOT R. BENSON
President and Chief Operating Officer

// MARTIN E. FRANKLIN
Executive Chairman

![](images/5_2.jpg)