Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — FY2017 Earnings Presentation
21 slides from Chemours Company (the)'s earnings presentation, Feb 15, 2018
Slide 1: Fourth Quarter and Full Year 2017 Earnings Presentation
Fourth Quarter and Full Year 2017 Earnings Presentation February 15, 2018
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements provide current expectations
Slide 3: Highlights
Highlights Delivered meaningful year-over-year improvement across all key performance metrics Achieved significant growth from Ti-Pure™ price and demand, Opteon™ and fluoropolymers Repurchased ~$150 million of shares through January 2018 Increased Adjusted EPS and Free Cash Flow outlook based on US
Slide 4: The Chemours Company at a Glance
The Chemours Company at a Glance ($ in millions unless otherwise noted) Fluoroproducts Chemical Solutions Titanium Technologies Net Sales Adjusted EBITDA 1 Net Sales Adjusted EBITDA 0.5 Net Sales Adjusted EBITDA 0.8 1400 Adjusted EBITDA Margin 140 Adjusted EBITDA Margin 1400 Adjusted EBITDA Margin 0
Slide 5: Full Year 2017 Financial Summary
Full Year 2017 Financial Summary ($ in millions unless otherwise noted) Increased price, improved ∆ demand, and cost management 2017 2016 led to ~800 basis point Adjusted Yr/Yr EBITDA margin expansion Net Sales $6,183 $5,400 783 Higher average selling prices and Net Income1 746 7 739 increased v
Slide 6: Fourth Quarter 2017 Financial Summary
Fourth Quarter 2017 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 4Q17 4Q16 Yr/Yr Strong financial performance Net Sales $1,575 $1,322 253 driven by contributions from all three businesses Net Income (loss) 1 228 (230) 458 Adj. Net Income 229 33 196 Adjusted EBITDA ma
Slide 7: Adjusted EBITDA Bridge: 4Q17 versus 4Q16
Adjusted EBITDA Bridge: 4Q17 versus 4Q16 ($ in millions unless otherwise noted) Positive Impact • Strong adoption of Opteon™ refrigerants • Increased demand for fluoropolymer products, base refrigerants and Ti-Pure™ Negative Impact titanium dioxide $65 ($52) $127 • Higher variable and distribution c
Slide 8: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Free Cash Flow of $138M1 Negative Impact versus $166M in 4Q16 $33 Positive Impact ($27) Capital expenditures of $165M $69 ($165) for the quarter and $411M for the year reflects construction of $228 Corpus Christi and Laguna ($6) ($111) fa
Slide 9: Impact of U.S. Tax Reform
Impact of U.S. Tax Reform 2017 2018 and Beyond • Remeasurement of U.S. net • Expect Chemours effective tax deferred tax liabilities from rate to be in the low 20’s 35% to 21%* • Greater flexibility in bringing • One-time $68 million foreign cash to the U.S. benefit • 100% expensing of capital • Offs
Slide 10: Fluoroproducts Business Summary
Fluoroproducts Business Summary Fourth Quarter Highlights 2018 Outlook Commentary Strong Opteon™ demand primarily driven by stationary Expect first half to be slightly stronger than second half blends in Europe and US mobile adoption due to seasonality Base refrigerants benefitting from higher
Slide 11: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter Highlights 2018 Outlook Commentary Lower year-over-year volume in Mining Solutions due Expect continued strong demand for Mining Solutions to planned maintenance outage during the quarter products Strong demand for most Performance Chemicals &
Slide 12: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter Highlights 2018 Outlook Commentary Price reflects realization of previously communicated Expect demand for Ti-Pure™ pigment to remain increases throughout 2017 favorable Improved year-over-year volume versus strong prior- Working with cus
Slide 13: 2018 Outlook
2018 Outlook Adjusted EBITDA $1.70 - $1.85 Billion Key Factors and Assumptions1 2018 Ti-Pure™ realized average price above 2017 average price Adjusted Continued Opteon™ adoption EPS $4.95 - $5.60 Fluoropolymers volume growth Strong demand in Mining Solutions Benefits to Adjusted EPS and Fr
Slide 14: Driving Shareholder Value Throughout 2020
Driving Shareholder Value Throughout 2020 REVENUE 1x – 2x GDP growth rate ADJUSTED Improvement by ~500 basis points EBITDA MARGINS ADJUSTED EPS 15% – 20% CAGR ROIC Maintain above 30% CUMULATIVE FCF Generate $2 – $3 billion CASH RETURN ~$125 million per year dividend1 TO SHAREHOLDERS $500 million sha
Slide 15: Appendix
The Chemours Company Appendix € Chemours”
Slide 16: GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Reconciliations (Unaudited)
GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Reconciliations (Unaudited) GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Tabular Reconciliations (UNAUDITED) ($ in millions except per share amounts) Three months ended Three months ended December 31, September 30, 2017 2016 20
Slide 17: Free Cash Flow Reconciliation (Unaudited)
Free Cash Flow Reconciliation (Unaudited) GAAP Cash Flow to Free Cash Flow Tabular Reconciliations (UNAUDITED) ($ in millions unless otherwise noted) Three months ended Twelve months ended December 31, September 30, December 31, 2017 2016 2017 2017 2016 Cash flow provided by operating activities 1 2
Slide 18: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) SEGMENT NET SALES AND ADJUSTED EBITDA (UNAUDITED) ($ in millions unless otherwise noted) Three months ended Three months ended Twelve months ended December 31, September 30, December 31, 2017 2016 2017 2017 2016 SEGMENT NET SALES Titanium Technologie
Slide 19: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations (Unaudited)
GAAP Net (Loss) Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Tabular Reconciliations (Unaudited) (Estimated) Year Ended December 31, 2018 (Low) (High) Net income attributable to Chemours $ 920 $ 1,040 1 Non-operating pension and other post-retirement emplo
Slide 20: GAAP Cash Flow Provided by Operating Activities to Free Cash Flow Reconciliations (Unaudited)
GAAP Cash Flow Provided by Operating Activities to Free Cash Flow Tabular Reconciliations (Unaudited) GAAP Cash Flow Provided by Operating Activities to Free Cash Flow Tabular Reconciliations (Unaudited) (Dollars in millions) (Estimated) Year Ended December 31, 2018 Cash flow provided by operating a
Slide 21: Chemours trademark notice
21 ©2018 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company