Slide 1: The Chemours Company Second Quarter Earnings Presentation
The Chemours Company Second Quarter Earnings Presentation August 6, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: Introduction
Introduction Chemours launched as an independent company on July 1, 2015 2Q15 results reflect deteriorating TiO2 market and currency headwinds Five-point plan announced to transform Chemours into a higher-value chemistry company Targeting $140 million improvement in second half 2015 Adjusted EBITDA
Slide 4: 2Q15 Results Overview Financial Summary
2Q15 Results Overview ($ in millions unless otherwise noted) Financial Summary* Completed separation from 2Q15 1Q15 2Q14 DuPont on July 1, 2015 Results impacted by Net Sales $1,508 $1,363 $1,682 – Weak TiO2 pricing environment Adj. EBITDA 127 145 235 – Continued currency headwinds Adj. EBITDA Ma
Slide 5: Adjusted EBITDA Bridge: 2Q14 – 2Q15
Adjusted EBITDA* Bridge: 2Q14 – 2Q15 ($ in millions) • Global TiO2 prices down 11% • Volume down 2% Negative Impact • Lower production costs ($48) Positive Impact • Higher price and volume • Plant outages ($81) $3 ($1) $19 $235 • Negative currency impacts • Lower $127 corporate costs 2Q14 Currency T
Slide 6: Adjusted EBITDA Bridge: 1Q15 – 2Q15
Adjusted EBITDA* Bridge: 1Q15 – 2Q15 ($ in millions) • Lower operating costs • Higher plant outages and other Negative Impact Positive Impact ($10) $3 ($12) $4 ($3) • Seasonal volume increase 24% • 6% global average price • Lower corporate and decline other costs • Seasonally higher $145 environment
Slide 7: Environmental Liabilities and Litigation Matters
Environmental Liabilities and Litigation Matters Environmental Liabilities Litigation Matters Environmental Remediation Asbestos • Environmental liabilities are well understood • Accrued liability of $38 million at 6/30/15 and well managed • ~2,500 cases alleging personal injury from • Accrued liabi
Slide 8: Balance Sheet and Liquidity
Balance Sheet and Liquidity ($ in millions unless otherwise noted) Starting cash balance of $247M in 6/30/15 excess of spin-off target balance of $200M and subject to true-up under Cash 247 Separation Agreement Total Liquidity1 Total Liquidity of $632M, reflects 632 (Cash + Revolver) revolver av
Slide 9: 2H 2015 Adjusted EBITDA Improvements
2H 2015 Adjusted EBITDA Improvements ($ in millions) • Higher plant utilization • Structural cost savings • Procurement and other productivity benefits $10 – $20 $50 - $60 • Lower pension $25 – $35 $50 – $60 ~$140 • Viton™ and Opteon™ growth • Higher volume in Chemical Solutions $40 2Q15 Additional
Slide 10: Chemours Transformation Plan
Chemours Transformation Plan
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; including $40M from actions taken in second quarter 2015 Target a total of $350M of structural reductions in 2017 Optimize The Evaluate strategic
Slide 12: Actions to Further Enhance Profitability in 2017
Actions to Further Enhance Profitability in 2017 ($ in millions) • Opteon™ growth • Altamira start-up • Cyanides growth • $350 in structural cost reductions in 2017 – SG&A, R&D – Plant fixed costs – Supply chain improvements $150 • $200 in structural cost reductions in 2016 $150 $500 $140 $60 2Q15 R
Slide 13: Multiple Factors to Achieve Target Leverage
Multiple Factors to Achieve Target Leverage Levers 5.2x SG&A, R&D Reduce Costs Plant Fixed Costs Supply chain Improvements ~3.0x Portfolio Optimization and Capital spending rationalization Refocus Working capital improvements Investments Opteon™ ramp-up Grow Market Positions Altamira s
Slide 14: Chemours Transformation Plan: Summary
Chemours Transformation Plan: Summary 13
Slide 15: ©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 14
Slide 16: Appendix
Appendix
Slide 17: Environmental Liabilities and Litigation Matters
Environmental Liabilities and Litigation Matters Environmental Liabilities Litigation Matters Environmental expenses Asbestos • Environmental operating costs and increases in remediation • Accrued liability of $38 million at 6/30/15 accrual • ~2,500 cases alleging personal injury from exposure at si
Slide 18: Adjusted EBITDA to Net (Loss) Income Reconciliation
Adjusted EBITDA to Net (Loss) Income Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total segment Adjusted EBITDA $127 $235 $272 $436 Interest (28) - (28) - Depreciation and amortization (67) (64) (131) (128) Non-operating pension and other postretirement em
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