Chemours Company (the) · NYSE:CC
Chemours Company (the) — Non-Deal Roadshow (September 2016)
28 slides from Chemours Company (the)'s roadshow presentation, Sep 14, 2016
Slide 1: The Chemours Company Investor Meetings September 2016
The Chemours Company Investor Meetings September 2016 Exhibit 99.1
Slide 2: Forward-looking statements and non-GAAP disclaimer
This presentation contains forward-looking statements, which often may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” targets,” “anticipates” or other words of similar meaning. These forward-looking statements address, among other things, our
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 Titanium dioxide
Slide 4: Transformation Plan Priorities
3 Transformation Plan Priorities Refocus Investments Concentrate capital spending on investable business portfolio Announced investment in the next increment of Opteon™ capacity Rationalize annual capital spending to ~$350M over time Reduce Costs Achieved cost reductions of ~$100M in first h
Slide 5: A Year of Transformation
Altamira Commercial Operations A Year of Transformation 4 AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG TiO2 Price Increase Communicated 2015 2016 Set 1st Post-Spin Dividend Edge Moor Plant Closure Transformation Plan Launch Opteon Capacity Announced DuPont Liquidity Agreement; Credit Facility
Slide 6: Titanium Technologies
emours* Titanium Technologies <<
Slide 7: 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 8: TiO2 Process Technologies & Chemours Capabilities
Ore-to-Pigment Routes 30% TiO2 95% TiO2 90% TiO2 70% TiO2 Sulfate Pigment Competitive Chloride Pigment Ilmenites Slags Synthetic Rutiles Leucoxenes Rutiles Chemours has scale, leading process technology and manufacturing flexibility creating a sustainable low-cost position adaptable to customer need
Slide 9: TiO2 Market Segments Addressed by Producers
Chemours delivers high-quality product to serve customers in attractive higher value-add segments of the TiO2 market TiO2 Market Segments Addressed by Producers 8 Source: Chemours Estimates Quality and performance of TiO2 products differ considerably across market segments and applications Segme
Slide 10: TiO2 Market: Cost Differentials
Chemours’ product value and cost offer supply security in a stressed TiO2 industry TiO2 Market: Cost Differentials 9 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 11: Chemours' Profitability Focus in TiO2
Chemours’ Profitability Focus in TiO2 10 Working towards improving profitability that supports sustainable reinvestment levels Pricing Actions January 1 price increase – implemented across the globe May 1 increase – implemented across the globe Announced September 1 price increase of $150/t in
Slide 12: Fluoroproducts
Fluoroproducts
Slide 13: 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 14: Fast Pace Adoption of Opteon
Fast Pace Adoption of Opteon™ 13 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 Commercial A/C, Chillers, Hi
Slide 15: Fluoropolymers: Tailored Solutions for Growth Opportunities
Fluoropolymers: Tailored Solutions for Growth Opportunities 14 Diverse End-Use Applications Chemours delivers high value fluoropolymer solutions used in complex and highly demanding applications Market Dynamics Demand conditions driven by GDP growth in North America Europe and slower growth in Chi
Slide 16: Chemical Solutions
Chemical Solutions
Slide 17: Strategic Review of Chemical Solutions Portfolio Complete
Divest Total gross proceeds of ~$695 million - Average multiple of ~10 – 12x Minimal net free cash flow impact Focus to drive out stranded costs as part of Five-Point Transformation Plan Clean & Disinfect • Sold to Lanxess for $230 million • Completed September 2016 Sulfur • Sold to Veolia for $325
Slide 18: Chemours Cyanide Opportunity
Chemours Cyanide Opportunity 17 Americas Sodium Cyanide Market The Chemours Advantage Aligned with customer values On-purpose producer, reliable supply Differentiating product stewardship Strong logistics network Long term contracts 9% CAGR 2014 (252 KTons) 2019 (393 KTons) Imports NAFTA P
Slide 19: Financial Position
Financial Position
Slide 20: 2Q16 Overview
2Q16 Overview 19 Second Quarter Financial Summary 2Q16 2Q15 ∆ Yr/Yr 1Q16 ∆ Seq. Net Sales $1,383 $1,508 ($125) $1,297 $86 Adj. EBITDA 187 127 $60 128 $59 Adj. EBITDA Margin (%) 13.5 8.4 5.1 9.9 3.6 Net Income (loss) (18) (18) 0 51 (69) Adj. Net Income 49 17 32 11 38 EPS1 ($0.10) ($0.10) $0 $0.28 ($0
Slide 21: Liquidity Profile Since Spin
Liquidity Profile Since Spin 20 $0.0 $1.0 $2.0 $3.0 $4.0 $0.0 $0.5 $1.0 $1.5 $2.0 2Q15 3Q15 4Q15 1Q16 2Q16 Cash Revolver Availability Net Debt 2Q15 3Q15 4Q15 1Q16 2Q16 T o ta l Liquidit y * ($B ) Net D e b t ($B ) $0.7B $3.8B $1.0B $3.8B $1.1B $3.6B $3.6B $3.5B $1.2B $1.1B *Defined as cash plus revo
Slide 22: 2016 Outlook Reaffirmed
2016 Outlook Reaffirmed 21 2016 Adjusted EBITDA Expected to be Greater than 2015, including $200M of Transformation Savings, Generating Modestly Positive Free Cash Flow Market Factors • TiO2 price • Currency • End-market demand Chemours Initiatives • Cost reductions • Working capital productiv
Slide 23: Appendix
€ Chemours" Appendix
Slide 24: TiO2 Applications by Market Segment Quality
Quality and performance of TiO2 products differ considerably across segments of the market that serve different applications TiO2 Applications Specialty and High Quality Applications: 40% Performance polymers, Exterior Architectural Paint, Automated Tint System Coatings and durable Industrial co
Slide 25: Segment Net Sales and Adjusted EBITDA
Segment Net Sales and Adjusted EBITDA (unaudited) ($ in millions unless otherwise noted) LTM 2Q16 2Q16 1Q16 4Q15 3Q15 Titanium Technologies 2,322$ 596$ 521$ 589$ 616$ Fluoroproducts 2,194 573 531 515 575 Chemical Solutions 1,010 214 245 256 295 TOTAL NET SALES 5,526$ 1,383$ 1,297$ 1,360$ 1,486$ LTM
Slide 26: GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations 25 ($ in millions unless otherwise noted) LTM 2Q16 2Q16 1Q16 4Q15 3Q15 Net income (loss) attributable to Chemours (82)$ (18)$ 51$ (86)$ (29)$ Non-operating pension and other postretirement employee benefit costs (32) (
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 26 ($ in millions unless otherwise noted) LTM 2Q16 2Q16 1Q16 4Q15 3Q15 C sh provided by (used for) operating activities 541$ 90$ 36$ 302$ 113$ Purchases of property, plant and equipment (400) (79) (89) (127) (105) FREE CASH FLOW 3 141$ 11$ (53)$ 175$ 8$ 3 As of June 30,
Slide 28: ©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
27 ©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company