Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q3 2021 Earnings Presentation
23 slides from Chemours Company (the)'s earnings presentation, Nov 5, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation November 5, 2021
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements provide current expectations
Slide 3: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Achieved 5th consecutive quarter of sequential sales growth as market demand remains strong Supported our customers despite difficult operating environment and supply chain challenges Maintained strong profitability through pricing initiatives to help offset inflation R
Slide 4: Responsible Chemistry – Our Corporate Responsible Commitment
Responsible Chemistry – Our Corporate Responsible Commitment U.S. AIM Act Passed in 2020 with bipartisan support, the Act initiates the phasedown of hydrofluorocarbons (HFCs) in the United States beginning Jan 1, 2022 In October 2021, EPA issued rules establishing the statutory HFC phasedown schedul
Slide 5: Third Quarter 2021 Financial Summary
Third Quarter 2021 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 3Q21 3Q20 Yr/Yr Net sales of $1.7B increased 36% vs. the Net Sales $1,680 $1,233 $477 prior-year third quarter, reflecting strength in the recovery and pricing momentum Net Income1 $214 $76 $138 GAAP and
Slide 6: Adjusted EBITDA Bridge: 3Q21 versus 3Q20
Adjusted EBITDA Bridge: 3Q21 versus 3Q20 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Higher operating costs to support demand growth relative to prior-year under utilization 800 • Higher variable costs, primarily due to TiO 2 ore • Broad-based growth from mix and supply
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Sept 30, 2021 ending cash 1600 Negative Impact Gross debt $3.9B balance of $1,031M Positive Impact Net debt $2.9B Generated $311M of operating TTM Net Leverage 2.3x 1400 ($67) cash flow ($108) Distributed $108M of cash to $311 sharehold
Slide 8: Disciplined and Balanced Capital Allocation
Disciplined and Balanced Capital Allocation Credit Profile Cash Returns to Investment Enhancement Shareholders Investments to support: • Safe & reliable operations • $3.5B gross debt target (vs. $3.9B presently) Committed to returning the majority of Free Cash • Attractive growth • Cost sharing arra
Slide 9: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter Highlights Outlook Delivered strong year-over-year volume growth driven by Expect continuation of strong customer demand, but ore strength across all regions and end-markets availability to constrain 4Q production Robust operational performa
Slide 10: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary Third Quarter Highlights Outlook Year-over-year sales growth across most markets and Expect typical seasonal demand patterns in 4Q and regions driven by volume growth and strong pricing continuation of global automotive production constraints Op
Slide 11: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary Third Quarter Highlights Outlook Strong demand across nearly all markets and regions, Anticipate strong 4Q customer demand led by continuing momentum from prior quarters Electronics/Communications, Industrial and Transportation Solid operating pe
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter Highlights Outlook Delivered solid results driven by rising demand across Continued momentum in Mining Solutions with steady both Mining Solutions and PC&I improvement in gold mining environment Market trends continue to be favorable for Glycol
Slide 13: 2021 Guidance Update – Raising Adj. EBITDA, Adj. EPS and FCF Ranges
2021 Guidance Update – Raising Adj. EBITDA, Adj. EPS and FCF Ranges Adjusted EBITDA $1,300 - $1,340 Million Capex ~$325 Million Up 50% at mid-point from 2020 Raised from top of prior range ($1,100 - $1,250 Million) Reduced from ~$350 Million previously Adjusted Majority of our Free EPS ~$3.93 - $4.1
Slide 14: Appendix
The Chemours Company Appendix € Chemours”
Slide 15: MOU Qualified Spend Recovery – Adjusted EBITDA impact
MOU Qualified Spend Recovery – Adjusted EBITDA impact Adjusted EBITDA Principles Utilized for 3rd quarter impact to MOU Qualified Spend Recovery Adjusted EBITDA If cost and expenses were included in Adjusted EBITDA calculation, Qualified $6 million included in Spend(1)(2) recovery will also be inclu
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended September 30, June 30, 2021 2020 2021 SEGMENT NET SALES Titanium Technologies $ 908 $ 612 $ 859 Thermal & Specialized Solutions 318 293 340 Advanced Performance Materials 356 240 362 Chemical Solu
Slide 17: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS Reconciliations
GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS Reconciliations (Unaudited) ($ in millions except per share amounts) Three Months Ended Three Months Ended September 30, June 30, 2021 2020 2021 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended September 30, 2021 2020 Adjusted EBITDA (1) $ 1,252 $ 860 Less: Depreciation and amortization (1) (320) (318) Adjusted EBIT $ 932 $ 542 ($ in millions) As of September 30, 2021 2020 Total debt $ 3,854 $ 4,095 Total equ
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended September 30, June 30, 2021 2020 2021 Cash flows provided by operating activities $ 311 $ 299 $ 256 Less: Purchases of property, plant, and equipment (67) (47) (67) Free Cash Flows $ 244 $ 252 $ 189 19
Slide 20: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of September 30, ($ in millions) 2021 2020 Total debt principal $ 3,890 $ 4,127 Less: Cash and cash equivalents (1,031) (956) Total debt principal, net $ 2,859 $ 3,171 Twelve Months Ended September 30, ($ in millions) 2021 2020 Adjusted EBITDA (1) $ 1,252 $ 860 Net
Slide 21: Estimated GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation
Estimated GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation (Unaudited) ($ in millions except per share amounts) (Estimated) Year Ended December 31, 2021 Low High Net income attributable to Chemours $ 579 $ 612 Restructuring, transaction
Slide 22: Estimated GAAP Cash Flows from Operating Activities to Free Cash Flow Reconciliations
Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flow Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2021 Cash provided by operating activities $ >825 Less: Purchases of property, plant, and equipment ~(325) Free Cash Flo
Slide 23: Trademark notice
23 ©2021 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
Chemours Company (The) — Q3 2021 Earnings Presentation on 6ix