Good morning, ladies and gentlemen, and welcome to the Element Solutions Q1 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your touchtone phone. Please note this call may be recorded, and I'll be standing by should you need any assistance. I would now like to turn the call over to Varun Gokarn, Senior Director of Strategy and Finance. Please go ahead. Good morning, and thank you for participating in our first quarter 2022 earnings conference call. Joining me are Executive Chairman Sir Martin Franklin, CEO Ben Gliklich, and CFO Carey Dorman. In accordance with Regulation FD, or fair disclosure, we are webcasting this conference call. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Element Solutions is strictly prohibited. During today's call, we will make certain forward-looking statements that reflect our current views about the company's future performance and financial results. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. Please refer to our earnings release, supplemental slides, and most recent SEC filings for a discussion of material risk factors that could cause actual results to differ from our expectations and predictions. These materials can be found on the company's website at www.elementsolutionsinc.com in the investor section under news and events. Today's materials also include financial information that has not been prepared in accordance with US GAAP. Please refer to the earnings release and supplemental slides for definitions and reconciliations of these non-GAAP measures to comparable GAAP financial measures. It is now my pleasure to introduce Sir Martin Franklin, Executive Chairman of Element Solutions Inc. Thank you, Varun, and good morning, everyone. Before turning the call to Ben and Carey, I wanted to take a moment to recognize this leadership team and all our colleagues at Element Solutions for navigating a complicated backdrop to the quarter very well. Demand has been strong. The mega trends in semiconductor proliferation, 5G, and electric vehicles continue to see great momentum. However, due to raw material scarcity, ongoing COVID lockdowns, and logistics unavailability, serving our customers was at times challenging. A challenge that this company has managed deftly. This time, this team is investing for the long term in culture, capabilities, and people while delivering on its commitments in the short term, and I'm very proud of their performance. With that, let me turn it over to Ben. Thank you, Martin. Good morning, everybody. Thank you for joining. We had a strong start to 2022 with our end markets remaining broadly supportive through a period of increased geopolitical volatility and supply chain complexity. We drove organic sales growth in all six of our business verticals. Despite ongoing disruption from COVID, production in the electronic supply chain has remained healthy in the first quarter. Industrial end markets were mixed, with continued supply chain challenges impacting the auto industry, but more robust demand in general industrial and energy markets. The ongoing integrations of our recent acquisitions are going well, and the commercial rationale for these deals is proving even stronger than initially anticipated. Logistics costs and raw material prices continued to climb in the quarter, but overall resilient demand and effective price actions allowed us to deliver constant currency adjusted EBITDA growth of 9% over Q1 of last year. These results reflect the strength of the secular trends propelling our business, the value we are bringing to our customers, and solid execution from our commercial, technical, and supply chain teams against our growth strategies in a dynamic operating environment. While recent macroeconomic factors have created a less predictable short-term outlook, we continue to believe our business is well-positioned to navigate these challenges. Our team remains focused on executing the strategy we laid out at our Investor Day to deploy our capital effectively and position our business within attractive growth markets such as electric vehicles, 5G-enabled electronics, and sustainable chemistry solutions to best compound per share value. Importantly, this does not require compromising on our short-term objectives. It has been and remains an extraordinarily challenging time for the people of Ukraine and the world at large. Our thoughts are with those immediately affected by the war and their families throughout the globe. Our own employees have responded to this humanitarian crisis with incredible generosity. Through our ESI Cares giving programs, employee donations, and ESI Foundation matches have raised $ tens of thousands in the last 2 months, and our teams in Europe have also organized multiple food drives for Ukrainian refugees. From a business perspective, we've taken several steps to address the increased volatility and supply chain risk created by this conflict. Our commercial exposure to Russia and Ukraine was less than 20 basis points of our total sales in 2021. Our supply chain historically sourced certain materials from Russia, but we have very little sole source and are actively engaged in re-qualifying additional sources of supply where needed. At this time, we don't anticipate raw material scarcity to materially impact our commercial commitments. Our financial strength has allowed us to build excess inventory. This is an opportunity that we acted on late in the first quarter, similar to actions we've successfully taken in prior years. Pricing is impacting margins. However, customers have accepted new surcharge mechanisms to improve our ability to capture raw material cost increases. We are protecting margin dollars. Though, should metal prices remain elevated, you should expect to see gross margins below long-term averages in the coming quarters. On slide three, you can see a summary of our first quarter financial results. We grew the top line 7% organically year-over-year and constant currency adjusted EBITDA by 9%. This level of organic growth represented an acceleration from the pace of growth in the fourth quarter of 2021, and reflected sustained sequential strength in high-end electronics and our non-automotive, industrially oriented end markets. Recall Q1 of 2021 benefited from the continuation of the recovery from COVID shutdowns without the supply chain pressure we experienced through the balance of 2021. It makes for a difficult comparison, and our year-on-year growth is a positive reflection of the continued strength in our markets. In constant currency terms, adjusted EBITDA margin declined 370 basis points year-over-year. However, margins improved sequentially 240 basis points from Q4 2021. Compared to the same period last year, our first quarter results reflect many of the same headwinds from higher pass-through metals, logistics, and other raw material inflation that we saw last quarter. Higher prices on pass-through metals drove 160 basis points of year-on-year headwind, while increased logistics costs, other raw materials and mix impacts drove another 100 basis points or so. Excluding the impact of the $132 million of pass-through metal sales in our Assembly Solutions business, our adjusted EBITDA margin would have been 26% in the quarter. Carey will now take you through our first quarter business results in more detail. Carey. Thanks, Ben. Good morning, everyone. On slide four, we share additional detail on the drivers of organic net sales growth in our two segments. Organic sales for our electronics was 8% year-over-year in the first quarter. Demand for high-end electronics applications remained steady, and all three of our business verticals grew organically despite tough year-over-year comparisons. In our assembly business, we saw sustained growth across most of our core product categories, including solder technologies and polymer-based adhesive products, which show 5% organic growth. We are also seeing continued strong uptake from a broader base of power electronics customers related primarily to the proliferation of electric vehicles. Our Circuitry Solutions vertical grew 13% organically, driven by strong demand in the Americas for both mobile and automotive electronics, as well as strong growth from memory disk customers in Asia, driven by continued demand for cloud computing and data storage. This strength helped offset weaker demand in certain Asian markets due to supply chain constraints and COVID-related shutdowns. Semiconductor Solutions grew 11% organically due to continued end market demand for our wafer plating, advanced packaging, and advanced assembly products. On a year-over-year basis, adjusted EBITDA margins in our electronics segment declined 330 basis points, nearly 300 basis points of which is explained simply by higher pass-through metals related to increases in tin prices, which increased sales with no commensurate increase in gross profit dollars. This metals-adjusted margin stability underscores our ability to take price actions that offset inflationary pressures and drive positive mix through exciting high-margin growth applications. For the first quarter, organic net sales in Industrial & Specialty increased 4% year-over-year. Given the softness in auto-related end markets, we expected a more subdued level of growth in this segment to start the year. Despite this overhang and general macro uncertainty in Europe and China, all three of our I&S businesses posted growth in the quarter. Industrial Solutions grew 5% organically, which ranged from construction, general manufacturing, and aerospace end markets, more than offsetting continued automotive production softness. We remain cautiously optimistic about a significant increase in auto-related production into the second half of the year, but are happy that the diversification and quality of the rest of our industrial portfolio is shining through as well. Graphics Solutions increased organically by 1% year-over-year, reflecting a low level of growth in new packaging design introductions with CPG customers. We anticipate new customer wins will drive modestly higher growth as we move through the rest of the year. Energy Solutions also grew 2% organically in the quarter, continuing the rebound that began late last year as sustained high oil prices drove additional rigs back online. The start of new rigs benefits the drilling portion of this business, where we provide hydraulic fluids for umbilical fills. On the other hand, new production is slower to come online, but we expect growth to accelerate in this business over the balance of the year. Now on slide five, where we address cash flow in the balance sheet. On net basis in the first quarter, we consumed about $15 million of cash. This compares to generating $24 million in Q1 of 2021. The operating cash flow reflects a sequential buildup in working capital of $56 million compared to $41 million in the same period of 2021. The primary driver of this working capital investment was inventory, driven by a combination of increased raw materials, higher than expected demand, and the need for greater safety stocks due to global supply chain disruption. As we have said before, we believe we can differentiate ourselves from our competitors through business continuity and a strong balance sheet position. As we have done in each of the last two years, we made the decision to increase our safety stocks to enable delivery for our customers on a timely basis. We believe these actions have contributed to stronger relationships with these customers. In this quarter, we also made the semiannual cash interest payment on our bonds of $16 million and paid the majority of our 2021 incentive compensation at a level that was roughly $20 million higher than last year, given the strong full year 2021 performance. Other uses of cash in the quarter included non-recurring costs related to our acquisitions of Coventya and HSO and the related synergy programs, which are running nicely ahead of schedule. Turning to the balance sheet. Our net leverage ratio at the end of the quarter was 3.2 times. If we had the benefit of owning Coventya for a full year, our net leverage on a trailing twelve-month basis would have been 3.1 times. Barring further capital allocation, we expect a net debt to adjusted EBITDA ratio of roughly 2.5 times by year-end. Additionally, important to note that all of our floating rate borrowings have been swapped to fixed, so rising interest rates should not meaningfully impact our cash interest expense in the next couple of years. We closed on our acquisition of HSO in January of this year, a business that brings some exceptional talent and technology to our market-leading industrial surface treatment business. We paid approximately $23 million in cash for HSO, which represented a mid-single-digit multiple on EBITDA. We also deployed $43 million of capital in the quarter to reduce our share count by roughly 1.9 million shares. Approximately $19 million worth of shares was related to our normal stock repurchase program. In addition, we withheld approximately 1 million shares or roughly $24 million to cover taxes related to the vesting of long-term incentive grants. We continue to remain opportunistic as it relates to share repurchases and expect to accelerate this activity when we believe our stock is trading at a significant discount to its intrinsic value. After this Q1 activity, our remaining availability under our existing stock buyback authorization was over $700 million as of March 31st. With that, I will turn it back to Ben. Ben? Thank you, Carey. The strength in our first quarter results gives us confidence to increase the low end of our full year adjusted EBITDA guidance, which you can see on slide six. We expect to deliver $580 million-$590 million of adjusted EBITDA this year, despite a $5 million higher headwind from FX than when we introduced this guidance in February of this year. We're effectively increasing our guidance for constant currency adjusted EBITDA growth by a percentage point or two to a range of 15%-17%. This guidance is based on an expectation of sustained strength in electronics and a recovery in automotive production in the second half of the year. However, given the pace of synergy realization from our recent acquisitions and strength in our non-automotive business, the magnitude of the recovery in auto implicit in our guidance is lower than it was initially. In spite of the increased level of uncertainty driven by geopolitical events, we believe most of our markets remain healthy, and our teams are executing well against our growth strategy. For the second quarter of 2022, we expect adjusted EBITDA to be approximately $140 million. This expectation is based on sequentially higher level of revenue, but also slightly softer margins driven by the impact of still elevated raw materials and freight costs, higher OpEx from travel and our annual salary increases. It also includes an estimate of the impact from the lockdowns in Shanghai and a stronger US dollar. These results would still represent a strong constant currency adjusted EBITDA growth of approximately 10% over the second quarter of 2021. Our first quarter results and outlook reflect the strength of our business and our team's solid execution. We believe we're executing on our strategy for Element Solutions to benefit disproportionately from the powerful megatrends propelling our end markets with targeted investments in strategic growth areas like 5G mobile enabling technologies, power electronics for electric vehicles, and sustainable solutions. On the topic of sustainability, I'd like to highlight that we recently published the 2021 ESG data and resources supplement to our 2020 ESG report. It contains updates to several key ESG topics and announced sustainability goals, which can all be found on our ESI sustainability website. We're proud to highlight the over $650 million, or roughly 27% of net sales that we generated last year from sustainable products, as well as improvements on a number of key energy use, emissions, employee health and safety, and social impact metrics. In our 2021 supplement, we've also provided updates to our GRI and SASB disclosures, as well as an initial TCFD index related to climate change. Our investors are increasingly focused on these topics, and we believe we've enhanced our disclosure to help highlight the compelling story we have to tell about how ESG is a value driver for our business. To wrap up, I'd like to thank all of our stakeholders for their continued support of Element Solutions, and in particular, our talented and dedicated people around the world responsible for another very strong quarter. With that, operator, please open the line for questions. At this time, if you would like to ask a question, please press the star and one on your touch tone phone. You may remove yourself from the queue at any time by pressing the pound key. Once again, that is star and one if you would like to ask a question, and we will take our first question from Josh Spector, Josh Spector with UBS. Your line is open. Yeah. Hey, guys. Thanks for taking my questions and congrats on a strong quarter here. Just a question on the sales side of it. If I heard you right, Ben, it sounds like you expect sales up sequentially. I guess if I go back to last quarter, you guys were pretty clear in highlighting some of the more normal seasonality, and you guys outperformed that in electronics in first quarter. I guess, how does your comments on 2Q impact the rest of the year? Just curious on an organic perspective, do you think revenues are up sequentially or do they step down so the metals or organic? Yeah, absolutely. Thanks for the question. We expect organic revenue growth in the second quarter. There will be a metals impact in the second quarter that will drive the top line optically, if you will, but we'll see organic growth in addition to that, both from pricing actions we've taken. There are some metals passthroughs that aren't captured. They're not exactly passthroughs, but there's metal price impact that aren't captured in our metals adjustment. From volume. The electronics business is very healthy. The C&I, the construction and industrial business in our industrial solution vertical remains healthy. We do expect growth in the second quarter. With regard to the back half, there's nothing that suggests that the typical seasonality where the electronics business is bigger in the second half than the first half will change. That's obviously implicit in our guidance, where we have higher EBITDA in Q3 and Q4 than we've seen in Q1 and we expect in Q2. Okay, thanks. That's helpful. I guess, just kind of related to that, I guess if we assume sales are higher, I guess if I look at the incremental margins in 2Q and 1Q, excluding metals from both of them, you know, they're both well below what would be your typical normal incremental from that perspective. I guess even sequentially, there was a big improvement from first quarter to fourth quarter, but there's less improvement second quarter from first quarter. What incrementally leaves that not improving significantly without pricing? Do you expect that to improve significantly in the second half? A portion of the organic growth we're generating is from price, but that price is tied to inflation in raw materials. If your raw material price goes up 10% and your sales price goes up 10%, you're not getting a substantial, you know, margin associated with that price increase. That's one of the factors that we're battling with right now. Carey, is there anything more you wanna add? No, I think that's exactly right. I think that we've caught up a lot on the pricing actions. We're seeing a relatively stable, inflationary environment since March, and we're assuming that in the second quarter for the time being. I think you hit it well. Okay, thank you. We will take our next question from Chris Kapsch with Loop Capital Markets. Your line is now open. Hi, good morning. Kudos to your entire team on the continued execution, especially given the many challenges. My question focused on the electronics business and circuitry in particular. Despite the broad strength, you mentioned some pockets of weakness in certain Asian markets. Just curious if there's any more visibility or granularity around the nature of that weakness. Was it skewed towards certain end markets, or is it a function of, you know, COVID lockdowns or supply chain disruptions? Any more clarity there would be helpful. Thanks. I had a follow-up. Yeah. You hit it. There are certain countries whose flagship products haven't launched the way they would've been expected to or on the same schedule as they have in the past. That's been a headwind to sales out of that country that come at a high margin. In China, just driven by lockdowns, we've seen some weakness in the year-to-date period. It's been offset by strength in other pockets of the business. As you've seen, we grew nicely organically, but mix was a headwind to margin in the circuitry business because we've got higher margin products in certain Asian countries where, you know, organic demand wasn't what we expected it to be. Overall, however, we expect recovery in some of those North Asian markets, and we see general robust strength for the year in our circuitry business. Okay. The follow-up question was, it relates to something another public company said about weakness, which was skewed towards flexible printed circuit board markets. And then, you know, some follow-up with that company sounded like they were suggesting that the rigid printed circuit board markets were, you know, more stable or continued strength there. Just wondering if I think it may have created a little bit of confusion. Just wondering if you could elaborate on what you're seeing, what your exposures are to flexible versus rigid, and what you're seeing in terms of the different crosscurrents and business cadence related to those, you know, different subsectors, if you will. Thank you. Yeah, absolutely. The flex circuit market's a good market for us. It's a high-value market. We've got a good market share in that market. Some of our direct metallization technologies are very valued in that market. We've seen a good performance from that over the past several years. With regard to the first quarter, I don't have that data at the tips of my fingers. With regard to the rigid circuit board market, there's a whole wide set of categories within rigid. You know, single layer, multi-layer, HDI, IC substrates, those are all rigid boards. We participate in the high-value portion of rigid boards, so that's HDI and into IC substrates, which have been very good markets for us, both in the Americas and also in Asia. We see nice growth at the high end over the past couple of quarters, Q1 being a little softer than 2021, but with reason to believe we'll see a recovery and some strength there in the balance of the year. Helpful. Thanks for the color. Sure. We will take our next question from Steve Byrne with Bank of America. Hi, this is Rob Hoffman for Steve Byrne. My first question is in the spirit of assessing how cyclical are the end markets that you sell into, what would you estimate the current operating rates are within each of your key end markets? I assume this varies by region. The operating rates, is that in terms of utilization at a customer level? You know, we've got six verticals, and you know, they're very different dynamics on a region-by-region basis. I would say that in our electronics business, there's a high level of utilization at our customer sites, and they are adding capacity, right? In the semiconductor market, you're seeing huge investment in fabs. In the circuitry market, you're seeing many, many new lines being added. In the assembly business, we've seen, you know, sequential growth quarter over quarter over quarter for over a year at this point, two years. In our industrial business, it's more of a mixed bag, where our construction and in general industrial customers are operating at very high levels, and our auto customers are operating at very low levels. You know, the auto market, obviously globally, has been constrained by supply chains, for the better part of a year at this point. Our graphics customers are operating at relatively low levels, given CPG, package design evolutions, and our offshore customers are starting to bring capacity back online. It's a mixed bag based on macro factors. Overall, there's a lot of strength, and there's reason to believe that strength will persist because of significant investment in new plant, in many of our businesses. I'm happy to go through this in much more detail with you offline. Great. Thank you. Kind of leading to my next question, have you guys won any meaningful contracts associated with new capacity additions being built by your customers? How much volume growth could this provide in the coming years? Just what it means in terms of your market share comparable to your legacy share? Yeah, absolutely. Your Wall Street share letters. Yeah. So if you look back at the Investor Day we did in February, we showed a slide on commercial excellence and, you know, the pipeline that we built and the conversion, the new wins that we've had, and we are going from strength to strength. We actually had more new customer wins in the first quarter than ever to date, and we had more new wins in 2021 than in any year prior to that. We are executing very well commercially to win more business. Each of the wins, the average win size is bigger, so we're winning more bigger business. We've got a lot of optimism that this isn't transient, that this is driven by the strategy we've deployed to grow. Great. Thank you. We will take our next question from Jon Tanwanteng with CJS Securities. Your line is open. Hi, good morning. It's Pete Lucas for Jon Tanwanteng. You guys covered a lot. Just one question from me. If you could expand a little on capital allocation priorities in the M&A landscape. Are acquisitions more likely as valuations shrink, or do you see your shares as a better buy right now? Maybe I'll start and turn it to Martin. You know, we've been very opportunistic with regard to capital allocation. We made a small acquisition in the first quarter that was highly strategic and great value, and we bought back a bunch of stock. Nothing large imminent right now. We've been continuing to buy stock in the market as shares have been weak. That does, at the moment, look like the best use of capital. We will retain flexibility. I don't know, Martin, if you wanna add anything. No, I completely agree with that. There's a dislocation on valuation at the moment, which we'll continue to take advantage of, while keeping our leverage ratio conservative. Great. That's it for me. Thanks. Thank you. We will take our next question from Angel Castillo with Morgan Stanley. Your line is open. Hi. Thanks for taking my question, and congrats on the strong quarter. Just was hoping you could give us a little bit more color on the organic growth by the subsegments. You know, as you think about volume versus, I think you noted some of the price that's maybe not directly passed through. If you could just kinda disaggregate that and give a sense for how that's been trending, that'd be helpful. Yeah, absolutely. Obviously we have six subsegments and it's a slightly different story in each. The organic growth you saw in the assembly business is mostly volume driven because there's the pass-through metal impact. If you look at the circuitry business, maybe half of that is price and half of that is volume. The semiconductor business is mostly volume driven. In the end, I think that it's a good rule of thumb for the circuitry and industrial businesses to say it's about half price and about half volume. Maybe a little bit more price in industrial than volume given the weakness in auto year-over-year. Got it. Then, you know, it's, I actually wanted to ask about that as well in terms of the industrial. You noted that maybe the second half embeds a little bit less autos and more of some of this other strength that you're seeing, whether it's in construction and industrial or synergies and acquisitions. Could you give us a little bit more color or maybe quantify some of that? What gives you comfort, you know, as we look at a macro that could be potentially getting worse kind of in the second half? You know, as we look at the construction and industrial markets, what gives you comfort that that maybe continues to be as strong going forward? Yeah. As you heard in the prepared remarks, our assumption for auto in the back half is far less ambitious than it was when we gave our initial guidance. Even then, that auto assumption wasn't particularly ambitious relative to research forecasts. The comps get easier and easier in the industrial business as we get into the second half. You know, there's not a lot of heroics, I would say, implied to deliver on our numbers as in the I&S space. That C&I portion of our I&S business has been really healthy for an extended period of time, and we're seeing pretty good demand from a housing market perspective. The only other comment I'd make is, as you know, this is a variable operating cost business, and if we see those pockets of weakness and the top line doesn't show up, the cost will fall out, and we'll be able to deliver. That's how we're thinking about that, and that's what gives us the confidence to, you know, increase the low end of our range for the year. I guess just to clarify on that one, and the synergies and the acquisition, maybe how much that is of the pickup? Yeah, we talked about. Maybe we're seeing better? We talked about $10 or so million of synergies in the year, and we're trending better than that right now. Very helpful. Thank you. We will take our next question from Kieran de Brun with Mizuho. Your line is open. Morning. I guess just in terms of the logistics, kind of raw headwinds, et cetera, can you just parse out where, I guess, you stand now going into the second quarter versus where your expectations were in the fourth quarter? What has changed, and how much more pronounced is that impact? I guess, you know, you've talked about some of the initiatives that you've been taking in terms of pricing and surcharges to offset that. How you see that, kind of trending and margins progressing throughout the year. Thank you. Yeah, thanks for the question. Logistics were up $3 million or so sequentially, $8 million year-over-year. I would say, you know, that is a material headwind that we're climbing up against. We passed through tin prices. We have surcharges for things like nickel and palladium, which are much smaller than tin, but they're not negligible anymore. Between nickel and palladium, we spent maybe $100-$120 million last year. Those prices are up pretty significantly. We'll see. That was the nature of the comment I made, which is with metal prices where they are, you're gonna have an optically lower margin percentage, but we're protecting margin dollars through pass-throughs. We continue to take price, and we have plans to drive more efficiency through the supply chain to drive margins higher. Those things don't happen overnight, but we're very focused on retaining profit dollars and getting the margin back to where it's been. That will take some time given the pace of the inflation we've been experiencing. Great. Maybe just a quick follow-up in terms of the industrials and specialty business, but specifically the industrial side. I mean, it seems that the mix of that business is really outperforming the underlying growth of the kind of end markets and has been doing so for a period of time. You know, as it recovers, how do you think about that kind of incremental delta above the underlying end market trending? Yeah, it's a good question. You know, the business has been doing very well, and it's been doing, you know, especially relative to its end markets, and it's been doing well because of commercial execution, strategic execution. The businesses we brought together under our Industrial Solutions vertical have integrated well and have been driving really good commercial success. As the auto market recovers, we should see a nice recovery on the top line, and we should see really good operating leverage on that as well because the auto business is higher margin than the balance of the business. You know, we commit to outperforming our end markets by a point or two. We've done much better than that in the I&S space. The profit leverage that we should get should outperform by even more when auto markets do recover. Thank you. We will take our next question from David Silver with C.L. King. Your line is open. Yeah. Hi, good morning. I was hoping to follow up, I think, on the segment or the product line comments on slide 4. In particular, under the semiconductor product line, you mentioned customer win in advanced packaging for, you know, 5G telecom infrastructure. I was wondering if you could maybe just talk about the value proposition that Element Solutions presented that led to the win. In other words, you know, advanced packaging, 5G, I mean, to me, that qualifies as kind of a high competitive ground or, you know, very strategic target for your competitors as well as yourselves. maybe just a comment or two on, you know, your value proposition, and then if you could characterize it in terms of size or duration that the particular win refers to, that would be helpful. Thank you. Yeah, thanks for the question. This was a really exciting piece of business we won with a very large semiconductor customer. To start, we've been investing in our semiconductor capabilities, done a lot of work around, you know, where we can compete. From an R&D perspective, developing new good technology, this is a big win at a leading edge, you know, at the leading edge. We won because we were technically capable, had, you know, high quality manufacturing, and the product we brought to bear was technically equivalent or better and had environmentally friendly attributes. This is going to go into, you know, at least one if not many new fabs for leading edge semiconductor manufacturing. The revenue opportunity is $ tens of millions over the next several years. Once you're process of record in these things, it's very rare that the business goes away. It's a very, very compelling opportunity. Okay. $Tens of millions per year. Okay. Thanks very much. Ramping over several years. Got it. Target of tens of millions. Okay. I was just wondering also if you could speak to you know, the what would it be? The state of doing business in China here right now. Whether it's the lockdowns or other, you know, supply chain or other issues. If you could just comment on how that portion of your business has operated, let's say, you know, over the past couple of months and you know what assumptions you're making for the balance of the year. In other words, full steam ahead or you know, mostly similar or you know, having to adapt to different operating conditions there. Thank you. Sure. The circumstances on the ground in China are very difficult. You know, we manufacture locally for local customers. We have a site in the Shanghai area that is under lockdown, and we've got about 20 people who are living at that site right now to support our customers. You know, this is a workforce that is unbelievably committed to delivering, you know, for the company and for our customers, and we're very, very grateful for that. We are able to deliver and recognize sales right now in Shanghai despite those lockdowns. Our outlook from the Chinese market is down a bit for the balance of the year, and that is driven by the lockdowns that we've been experiencing. If the lockdowns, you know, proliferate significantly or extend significantly, there's a bit of risk associated with that. That's not in the plan. You know, three more months of lockdowns is not in the plan. We're hopeful that this resolves not just for our business, but for the people there who are, you know, clearly having a very difficult time. Okay. Thank you. If I could just sneak in one more. At a couple of points in your comments, Ben, you've talked about kind of a new surcharge program or strategy. Under the broader category of, you know, how your customers, key customers are reacting to, you know, a continued series of cost or price increases, you know, I'm just wondering how you, how you would characterize how you've gone about, you know, implementing these, you know, more enhanced or more sophisticated surcharge programs. I also, you know, just in general, are you noticing any pushback at all, you know, from customers as, you know, maybe the initial wave of your price actions are followed by another wave and, you know, indications there might be more? Just kind of customer reaction, how you manage the relationship while still, you know, defending Sure. your margins. Thanks. We've always said in this business that we can take price when our price goes up, and our customers are understanding of that. Clearly it's very obvious that the prices of nickel and palladium and these metals are much higher. We had surcharge mechanisms in the past that took into account commodity price volatility. What we've done to improve them is change the window where we're calculating the applicable price for that commodity. Historically, maybe it was, you know, prior month average price. Well, obviously, prior month average price isn't effective to recapture profit dollars and to take into consideration a very dynamic commodity price environment. We've shortened that window, in many cases as an example. I think customers are understanding of that. This is a unique set of circumstances in terms of inflation around the world. There are some geographies that handle price increases better than others. We're being very thoughtful about how we go about recapturing, you know, value or price such that our sales price is reflective of the value that we're providing to our customers. We will continue to do so. That is great. Thank you very much. We will take our next question from Chris Shaw with Monness, Crespi, Hardt & Co. Your line is open. Hey, good morning, everyone. How are you doing? Good morning, Chris. You know, maybe following up on the last question. You know, with clearly you have metals pass-throughs, and it sounds like surcharges, which are slightly different. I know there's a lot of other product price increases that you probably had to put through for other input inflation. If we get to the point where, you know, if ever the, you know, these inputs deflate and go back down, do you have a sense of how much of those price increases might be able to be maintained over time? I assume obviously pass-throughs, no, the surcharges probably come off. Is there still a big bucket that, you know, is just, you know, potentially kept or, you know, are those things also very specific to certain raw material that your customer can see and know that those have deflated and they'll ask for that pricing back? Any sense of that? We're operating in a unique paradigm where you've seen this level of inflation in this short of a period of time. You know, as you heard, a lot of the commodities are now operating on surcharges, and those surcharges will go away, and if metal prices go down. Historically, when we've taken price due to moderate inflation, we've been able to retain that price. Again, it's a new paradigm. We'll see how pricing or how input pricing evolves, you know, in the near to medium term, and that will determine our ability to hold it. In the past, we have been able to hold non-formulaic. Got it. All right. That's all I have. Thank you. Great. Thanks. We have no further questions on the line at this time. I will turn the program back over to Ben Gliklich for any additional or closing remarks. Thank you, Brittany, and thanks to everybody again for joining. We look forward to seeing many of you in the days and weeks to come. Thanks very much. This does conclude today's program. 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