Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q1 2023 Earnings Presentation
21 slides from Chemours Company (the)'s earnings presentation, Apr 28, 2023
Slide 1: Chemours 1Q 2023 Earnings Presentation
Chemours 1Q 2023 Earnings Presentation April 27, 2023
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current exp
Slide 3: First Quarter 2023 Highlights
First Quarter 2023 Highlights Financial Performance Delivered strong 1Q Net Sales and Adjusted EBITDA despite weak TT volumes Achieved record 1Q results in TSS and solid performance in APM as secular growth drivers remain intact for both businesses Continued progress on sustainability including two
Slide 4: First Quarter 2023 Financial Summary
First Quarter 2023 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ 1Q23 1Q22 Net Sales down 13% to $1.5 billion, primarily Yr/Yr driven by volume decline in TT Net Sales $1,536 $1,764 $(228) GAAP EPS of $0.96, down $(0.47) year-over- year and Adjusted EPS of $0.98, down
Slide 5: Adjusted EBITDA Bridge: 1Q23 versus 1Q22
AdjustedEBITDA Adjusted EBITDA Bridge: Bridge: 1Q23 versus 4Q22versus 4Q21 1Q22 ($ in millions unless otherwise noted) Strong price gains driven by sales in high-value end-markets in APM, price increases in contracted $110 ($115) portfolio at TT, and steady value- based pricing growth in TSS ($15)
Slide 6: Liquidity Position
Liquidity Liquidity Position Position 1200 Adjusted ($ in EBITDA millions unless otherwise noted) Bridge: 4Q22 versus 4Q21 Gross debt $3.6B Q1’23 ending cash balance of Net debt $2.8B ($119) $816 million TTM Net Leverage(3) 2.2x 1000 Q1’23 Operating Cash Flow use ($91) of $(119) million ($51)
Slide 7: Segment Performance
Segment Performance
Slide 8: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter Highlights Net Sales Year-over-year Net Sales decrease driven by lower market ($ in millions) Price Volume Currency Yr/Yr % 4 (35) (1) demand in all regions and unfavorable currency translation, Qtr/Qtr % 2 1 1 partially offset by higher prices
Slide 9: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary First Quarter Highlights Net Sales Year-over-year Net Sales increase driven by higher volume due to ($ in millions) Price Volume Currency continued adoption of OpteonTM products. Price increases across Yr/Yr % 5 10 (1) Qtr/Qtr % 18 34 (0) the portfo
Slide 10: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary First Quarter Highlights Net Sales Year-over-year increase in Net Sales due to increasing ($ in millions) Price Volume Currency sales in Performance Solutions (PS) portfolio which more than Yr/Yr % 10 (7) (2) Qtr/Qtr % 2 (2) 2 offset decline in more
Slide 11: 2023 Guidance - Reaffirmed
2023 Guidance - Reaffirmed Key Business Factors and Assumptions1: Top and bottom-line growth in TSS segment driven by OpteonTM adoption and market and regulatory dynamics Adjusted EBITDA $1.20-$1.30 Billion Secular demand growth in advanced electronics and clean energy primarily Performance Solu
Slide 12: Our Priorities for Creating Shareholder Value
Our Priorities for Creating Shareholder Value Improve earnings quality of our Titanium Technologies segment Drive sustainability led growth in TSS through low GWP refrigerants and specialized solutions, plus market-driven innovation Drive sustainability led growth in APM through Clean Energy and Adv
Slide 13: Appendix
Appendix
Slide 14: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) 14
Slide 15: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations
GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS Reconciliations (Unaudited) ($ in millions except per share amounts) Three Months Ended Three Months Ended March 31, December 31, 2023 2022 2022 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 16: Free Cash Flow Reconciliations (Unaudited)
Free Cash Flow Reconciliations (Unaudited) ($ in millions) Three Months Ended March 31, December 31, 2023 2022 2022 Cash flows (used for) provided by operating activities $ (119) $ 2 $ 161 Less: Purchases of property, plant, and equipment (91) (106) (67) Free Cash Flows $ (210) $ (104) $ 94 16
Slide 17: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of March 31, ($ in millions) 2023 2022 Total debt principal $ 3,649 $ 3,748 Less: Cash and cash equivalents (816) (1,145) Total debt principal, net $ 2,833 $ 2,603 Twelve Months Ended March 31, ($ in millions) 2023 2022 Adjusted EBITDA (1) $ 1,262 $ 1,448 Net Levera
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended March 31, 2023 2022 Adjusted EBITDA (1) $ 1,262 $ 1,448 Less: Depreciation and amortization (297) (307) Adjusted EBIT $ 965 $ 1,141 ($ in millions) As of March 31, 2023 2022 Total debt, net (2) $ 3,624 $ 3,716 Total eq
Slide 19: Estimated GAAP Net Income to Estimated Adjusted EBITDA and Adjusted EPS Reconciliation
Estimated GAAP Net Income Attributable to Chemours to Estimated Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation (*) (Unaudited) 19
Slide 20: Estimated GAAP Operating Cash Flows to Free Cash Flow Reconciliations
Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flow Reconciliations (*) (Unaudited) ($ in millions) (Estimated) Year Ended December 31, 2023 Cash provided by operating activities $ >750 Less: Purchases of property, plant, and equipment ~(400) Free Cash Flows $ >350 The Compa
Slide 21: Thank you!
Thank you!
Chemours Company (The) — Q1 2023 Earnings Presentation on 6ix