Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q1 2020 Earnings Presentation
18 slides from Chemours Company (the)'s earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation May 6, 2020
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: First Quarter 2020 Highlights
First Quarter 2020 Highlights Protecting the safety of our Employees while supporting our Customers Delivered a solid Q1 2020 following a strong Q4 2019 Navigating uncertain market conditions with strong value proposition Preserving strong balance sheet and liquidity Taking bold actions to reduce sp
Slide 4: Chemours COVID-19 Response – Actions to reduce spending and conserve cash
Chemours COVID-19 Response – Actions to reduce spending and conserve cash Protecting the safety of our Employees while supporting our Customers Cost Deferrals / Reductions CAPEX Reductions ~$160M ~$125M Reducing discretionary spend Targeting reduction of $125M Implementing hiring freeze for no
Slide 5: First Quarter 2020 Financial Summary
First Quarter 2020 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 1Q20 1Q19 Yr/Yr Sales down 5 percent from 1Q19 Net Sales $1,305 $1,376 $(71) Adjusted EBITDA decline primarily driven Net Income1 100 94 6 by lower volumes and prices in Adj. Net Income 118 109 9 Fluorop
Slide 6: Adjusted EBITDA Bridge: 1Q20 versus 1Q19
Adjusted EBITDA Bridge: 1Q20 versus 1Q19 ($ in millions unless otherwise noted) Positive Impact Negative Impact 600 • Lower costs in Fluoroproducts driven by better operational performance and ramp up 500 of the new Corpus Christi Opteon™ site • Cost reductions across all businesses • Lower average
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) March 31, 2020 ending cash balance of Negative Impact 1400 $714M, reflecting normal seasonal Net Positive Impact Working Capital use of cash 1200 1Q20 capital expenditures of $106M 1000 1Q20 dividends of $41M $44 ($106) ($41) 800 ($126)
Slide 8: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Total Liquidity of $1.4B as of March 31, 2020 Maintenance Covenant: Senior Secured Net Leverage Ratio less than 2.0x Global cash $714M Current Ratio = ~0.7x Revolver availability, net of letters of credit: $699M Gross Senior Secured Debt: $1.3B Ba
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary First Quarter 2020 Outlook Experienced lower demand primarily driven by lower Actively adjusting supply chain to account for uncertain volume in Asia Pacific, auto OEM shutdowns, and lower demand environment volumes in several other industrial end markets globally
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary First Quarter 2020 Outlook Experienced lower revenue/volume driven by MAP Continued focus on productivity, inventory management business divestiture and lower cost pass-throughs and cash generation Delivered flat year-over-year earnings, reflecting lower E
Slide 11: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter 2020 Outlook Monitoring the impact of COVID-19 and maintaining close Achieved volume increases across all regions and most engagement with customers to respond to their changing end markets on both a year-over-year and sequential needs during
Slide 12: Chemours is taking action in response to COVID-19
Chemours is taking action in response to COVID-19 Putting Employees and Customers First Strong, proactive health and safety measures across our sites Limited number of COVID-19 cases worldwide As of today, all sites operational, Chemours open for business Maintaining a Strong Balance Sheet and
Slide 13: Appendix
The Chemours Company Appendix € Chemours”
Slide 14: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended March 31, December 31, 2020 2019 2019 SEGMENT NET SALES Fluoroproducts $ 600 $ 687 $ 614 Chemical Solutions 92 134 129 Titanium Technologies 613 555 610 Total Company $ 1,305 $ 1,376 $ 1,353 SEGME
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, 2020 2019 2019 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 16: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended March 31, 2020 2019 Adjusted EBITDA (1) $ 1,015 $ 1,535 Less: Depreciation and amortization (1) (313) (289) Adjusted EBIT $ 702 $ 1,246 ($ in millions) As of March 31, 2020 2019 Total debt $ 4,034 $ 3,978 Total equity
Slide 17: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended March 31, December 31, 2020 2019 2019 Cash flows provided by (used for) operating activities $ 44 $ (44) $ 400 Less: Purchases of property, plant, and equipment (106) (133) (96) Free Cash Flows $ (62) $ (177) $ 304 17
Slide 18: ©2020 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
18 ©2020 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
Chemours Company (The) — Q1 2020 Earnings Presentation on 6ix