Chemours Company (the) · NYSE:CC
Chemours Company (the) — Non-Deal Roadshow (June 2016)
29 slides from Chemours Company (the)'s roadshow presentation, Jun 8, 2016
Slide 1: The Chemours Company West Coast Investor Meetings June 9-10, 2016
The Chemours Company West Coast Investor Meetings June 9-10, 2016
Slide 2: Forward-looking statements and non-GAAP measures
This presentation contains forward-looking statements, which often may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. These forward- looking statements address, among other things, our anticipa
Slide 3: The Chemours Company at a Glance
Titanium Dioxide 42% Fluoropolymers 22% Fluorochemicals 17% Performance Chemicals & Intermediates 9% Cyanides 6% Sulfur Products 4% Chemicals used in gold production, oil refining, agriculture, industrial polymers and other industries #1 producer in Americas of sodium cyanide #1 in US Northeas
Slide 4: Transformation Plan Priorities
3 Transformation Plan Priorities Refocus Investments Concentrate capital spending on investable business portfolio Announced $230M investment in the next increment of Opteon™ capacity Rationalize annual capital spending to ~$350M Reduce Costs Achieved cost reductions of ~$100M in second half
Slide 5: Titanium Technologies
emours* Titanium Technologies <<
Slide 6: Chemours Titanium Technologies Business Overview
Paper 14% Coatings 57% Plastics 25% Specialty 4% North America 32% Asia Pacific 32% EMEA 22% Latin America 14% Global leader in TiO2 with production capacity of 1.25 million metric tons(1) − 4 TiO2 plants with 7 production lines (1) − Packaging facility at Kallo, Belgium − Mineral sands mine at St
Slide 7: Chemours' product value and cost offer supply security in a stressed TiO2 industry
Chemours’ product value and cost offer supply security in a stressed TiO2 industry TiO2 Market: Cost Differentials 6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 0 500 1,000 2,600 1,800 3,100 3,600 4,100 1,400 4,500 5,000 5,500 6,000 N o rmail z ied C o st/ p ric e $/ T o n n e Re
Slide 8: Chemours delivers high-quality product to serve higher value-add TiO2 segments
Chemours delivers high-quality product to serve customers in attractive higher value-add segments of the TiO2 market TiO2 Market Segments Addressed by Producers 7 5,000 1,000 4,000 3,000 2,000 Low quality Fit for Use Volume (Metric kT) Multi-Purpose Multi- Purpose EP High Quality Specialty Price (US
Slide 9: Scale, leading process technology and manufacturing flexibility create a low-cost position
Chemours has scale, leading process technology and manufacturing flexibility creating a sustainable low-cost position adaptable to customer needs and market conditions Chemours’ Capabilities 8 100% chloride process Highest throughput operations Process technology and operational discipline F
Slide 10: Transformation Plan Progress: Growing Market Positions (Altamira)
Transformation Plan Progress: Growing Market Positions 9 Construction completed, with production gradually ramping to nameplate capacity of 200,000 metric tonnes per year ● $20 million of annual EBITDA improvement expected ● Approximately 20% increase to Chemours total nameplate capacity ● Expands C
Slide 11: Fluoroproducts
Fluoroproducts
Slide 12: Fluoroproducts Business Overview
Supplies products for high performance applications across broad array of industries #1 in Fluoroproducts globally − Fluorochemicals: #1 in refrigerants, #1 in propellants, #3 in foaming agents − Fluoropolymers: #1 in industrial resins, #1 in fluoropolymer specialties Key Brands include Teflon
Slide 13: Transformation Plan Progress: Opteon Growth
Transformation Plan Progress: Growing Market Positions 12 Opteon™ YF Next Gen Gas for mobile air- conditioning HFO-1336(Z) Next Gen Liquids for Foams, Centrifugal Chillers, Organic Rankine Cycles, High Temp Heat Pumps Opteon™ YF blends Next Gen Gas for Commercial Refrigeration, Residential/Light Com
Slide 14: Chemical Solutions
Chemical Solutions
Slide 15: Chemical Solutions Overview
Cyanides 29% Sulfur 23% Performan ce Chemicals & Intermedia tes … Diverse portfolio of industrial businesses primarily operating in the Americas Unmatched reputation for safety, reliability and stewardship 14 production facilities located in North America and one located in the U.K. Chemical S
Slide 16: Transformation Plan Progress: Optimizing the Portfolio
Transformation Plan Progress: Optimizing the Portfolio Progress on Strategic Review of Chemical Solutions Retain Under Review Sell Shutdown Cyanides Sulfur Products Aniline Clean & Disinfect Chemicals Methyl- amines Reactive Metals 15
Slide 17: Environmental and Litigation Matters
Environmental and Litigation Matters
Slide 18: Environmental Liabilities and Litigation Matters
Environmental Liabilities and Litigation Matters 17 Environmental Remediation • Environmental liabilities are well understood and well managed • Accrued liability of $293 million as of 3/31/16 • Based on estimated remediation activities and average 15-20 year horizon • Annual expenses reflected in A
Slide 19: Health Advisory on PFOA
Health Advisory on PFOA 18 • New health advisory of 70 parts per trillion (ppt) announced by the U.S. Environmental Protection Agency on May 19, 2016; previous threshold was 400 ppt • DuPont used or produced PFOA at 3 Chemours operating sites subject to the new health advisory • Used at 3 additional
Slide 20: 2016 YTD Financial Performance & FY Outlook
2016 YTD Financial Performance & FY Outlook
Slide 21: First Quarter 2016 Highlights
First Quarter 2016 Highlights 20 Executing on all aspects of our five-point transformation plan Began implementing TiO2 price increases Announced decision to invest in world-class facility to support growing Opteon™ demand Improved working capital performance, ended quarter with strong cash balance
Slide 22: 1Q16 Overview: First Quarter Financial Summary
1Q16 Overview 21 First Quarter Financial Summary 1Q16 1Q15 ∆ Yr/Yr 4Q15 ∆ Seq. Net Sales $1,297 $1,363 ($66) $1,360 ($63) Adj. EBITDA 128 145 (17) 132 (4) Adj. EBITDA Margin (%) 9.9 10.6 (0.7) 9.7 0.2 Net Income (loss) 51 43 8 (86) 137 Adj. Net Income 11 59 (48) 5 6 EPS1 $0.28 $0.24 $0.04 ($0.48) $0
Slide 23: Progress on Transformation Plan: Reducing Costs
Progress on Transformation Plan: Reducing Costs 22 2H2015 Actual 2016 YTD 2016E 2017E 2015 Realized 2016 Realized 2016 Target 2017 Target ~$100M ~$300M ~$450M ($ in millions) $350M Incremental to 2015 ~$40M Cost Reduction Activities Targeting ~$450 Million in Cumulative Savings
Slide 24: Liquidity Position
Liquidity Position 23 1 Based on Credit Agreement defined LTM Adjusted EBITDA, as amended February 2016, including pro forma adjustments, Senior Secured Net Debt/EBITDA of 1.6x 2 Includes impact from gain on sale of Beaumont aniline facility 3 Includes proceeds from sale of Beaumont aniline facility
Slide 25: 2016 Outlook Reaffirmed
2016 Outlook Reaffirmed 24 2016 Adjusted EBITDA Expected to be Greater than 2015, including $200M of Transformation Savings, Generating Modestly Positive Free Cash Flow Market Factors • TiO2 price • Currency • End-market demand Chemours Initiatives • Cost reductions • Working capital productiv
Slide 26: Appendix
€ Chemours" Appendix
Slide 27: Segment Financial Information
Segment Financial Information 26 (dollars in millions)
Slide 28: GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations 27 (dollars in millions unless otherwise noted) RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO CHEMOURS TO ADJUSTED NET INCOME AND ADJUSTED EBITDA LTM Year 1Q16 1Q16 2015 4Q15 3Q15 2Q15 1Q15 Net income (loss) attr
Slide 29: ©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
28 ©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company