Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q3 2015 Earnings Presentation
16 slides from Chemours Company (the)'s earnings presentation, Nov 5, 2015
Slide 1: The Chemours Company Third Quarter Earnings Presentation
The Chemours Company Third Quarter Earnings Presentation November 5, 2015
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters 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 a
Slide 3: Highlights
Highlights Launched Five-Point Transformation Plan Realized ~$60 million in cost savings Delivered $42 million sequential improvement in Adjusted EBITDA Declared fourth quarter dividend Amended credit facility 2
Slide 4: 3Q15 Overview Financial Summary
3Q15 Overview ($ in millions unless otherwise noted) Financial Summary ∆ ∆ Adjusted EBITDA 3Q15 2Q15 Seq. 3Q14 Yr/Yr margin of 11.4% in spite of continued Net Sales $1,486 $1,508 ($22) $1,632 ($146) TiO2 headwinds Adj. EBITDA 169 127 42 235 (66) Free cash flow Adj. EBITDA 11.4 8.4 3.0 14.4 (3.0)
Slide 5: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter Highlights Outlook Commentary Maintained double-digit margin as cost Pricing and demand environment anticipated to reductions partially mitigated lower pricing remain soft Sequential volume up slightly Cost reduction initiatives will parti
Slide 6: Fluoroproducts Business Summary
Fluoroproducts Business Summary Third Quarter Highlights Outlook Commentary Significant sequential improvement in segment Continued market penetration and growth of Adjusted EBITDA Opteon™ product line Strong market adoption of Opteon™ Ongoing phase out of older base refrigerants refrigerant
Slide 7: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter Highlights Outlook Commentary Strong volume gains in both Sulfur and Cyanide Strategic evaluation underway, excluding businesses Cyanide business Lower pricing driven by lower input costs Review will include options to fix, close or sell asse
Slide 8: Adjusted EBITDA Bridge: 2Q15 – 3Q15
Adjusted EBITDA Bridge: 2Q15 – 3Q15 ($ in millions) Negative Impact Positive Impact • Normalized operations • Lower costs ($10) • Opteon™ growth • Volume up 1% $16 • Price down 3% $5 $36 ($6) ($9) $127 $169 $60M of Cost Savings Realized • $17M Titanium Technologies • $14M Fluoroproducts • $12M Chemi
Slide 9: Adjusted EBITDA Bridge: 3Q14 – 3Q15
Adjusted EBITDA Bridge: 3Q14 – 3Q15 ($ in millions) Negative Impact Positive Impact ($68) • Higher price and volume • Opteon™ growth • Transformation savings $27 $10 • Negative ($70) currency impacts $35 $19 • Lower costs $235 • Transformation $169 savings • Price down 13% • Volume up 2% • Transform
Slide 10: Liquidity Position
Liquidity Position ($ in millions) Quarter-end cash balance of $215M Positive Impact after $100M dividend payment Negative Impact Credit amendment provides improved flexibility to drive ($67) Transformation Plan ($52) $261 Total Liquidity of $968M, reflects ($105) revolver availability of $753
Slide 11: Transformation Plan Priorities
Transformation Plan Priorities $2.4B starting cost position* includes SG&A, R&D and plant fixed costs Reduce Costs $200M cost reductions in 2016 Target a total of $350M of structural reductions in 2017 Optimize The Evaluate strategic alternatives for Chemical Solutions portfolio, excluding C
Slide 12: Progress On Transformation Plan
Progress On Transformation Plan ($ in millions) Cost Reduction Initiatives Underway Near-Term Outlook Commentary Continued cost reductions from transformation plan $20-40 Growth from Opteon™ $55 Seasonal working capital reduction in fourth quarter $40 >$200 – Continued soft TiO2 market dynamic
Slide 13: Appendix
¢ Chemours” Appendix ~
Slide 14: Adjusted EBITDA to GAAP Net (Loss) Income Reconciliation
Adjusted EBITDA to GAAP Net (Loss) Income Reconciliation ($ in millions unless otherwise noted) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Total Adjusted EBITDA $169 $235 $441 $671 Interest (51) - (79) - Depreciation and amortization (70) (57) (201) (185) No
Slide 15: GAAP Net (Loss) Income to Adjusted Net Income Reconciliation
GAAP Net (Loss) Income to Adjusted Net Income Reconciliation ($ in millions unless otherwise noted) Three Months Nine Months Three Months Ended Ended Ended September 30, September 30, June 30, 2015 2014 2015 2014 2015 Net (loss) income attributable to Chemours ($29) $107 ($4) $321 ($18) Restructurin
Slide 16: ©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company 15