Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q3 2020 Earnings Presentation
20 slides from Chemours Company (the)'s earnings presentation, Nov 4, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation November 4, 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: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights Advanced our Corporate Responsibility Commitment (CRC) Achieved solid Q3 financial results, with signs of market recovery Stayed on track to deliver $160 million cost and $125 million capex reductions Delivered strong Q3 free cash flow of $252 million, up $92 million fr
Slide 4: CRC – Our Pillars & Our Goals
CRC – Our Pillars & Our Goals UN SDGs Empowered Employees • Fill 50% of all positions globally with women • Fill 20% of all US positions with ethnically diverse employees Safety Excellence • Improve employee, contractor, process, and distribution safety performance by at least 75% Vibrant Communitie
Slide 5: CRC – Our 2019 Actions
> CRC — Our 2019 Actions ALA ak fa 12 Great Places to Work certified for the second sites American Chemistry year in a row in the US; A top 50 Great Place Council environmental, health, Inspired to Work in Mexico for the second year in a row and safety award recipients People tl 27 A fe) (fio millio
Slide 6: Update on Chemours response plan to COVID-19
Update on Chemours response plan to COVID-19 Putting Employees and Customers First – On Track Strong, proactive health and safety measures across our sites Limited number of COVID-19 cases worldwide As of today, all sites operational, Chemours open for business Maintaining a Strong Balance She
Slide 7: Third Quarter 2020 Financial Summary
Third Quarter 2020 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ Sales down 11 percent from 3Q19 3Q20 3Q19 Yr/Yr Adjusted EBITDA decline primarily driven Net Sales $1,233 $1,390 $(157) by lower volumes and prices, partially offset by stronger operational performance a
Slide 8: Adjusted EBITDA Bridge: 3Q20 versus 3Q19
Adjusted EBITDA Bridge: 3Q20 versus 3Q19 ($ in millions unless otherwise noted) 600 Positive Impact Negative Impact 500 • Higher Ti-Pure volumes • Lower Fluoroproducts volumes driven by delayed market recovery in 400 Fluoropolymers partially offset by strong recovery in Auto OEMs for refrigerants •
Slide 9: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact September 30, 2020 ending cash balance 1400 of $956M, up $262M from 3Q19 Positive Impact ($47) $14 ($41) 1200 $299 3Q20 capital expenditures of $47M ($300) 1000 3Q20 dividends of $41M Total Liquidity of ~$1.7B includin
Slide 10: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Total Liquidity of $1.7B as of September 30, 2020 Maintenance Covenant: Senior Secured Net Leverage Ratio less than 2.0x Global cash $956M Current Ratio* = ~0.8x Revolver availability, net of letters of credit: $702M Gross Senior Secured Debt: $1.3B
Slide 11: Fluoroproducts Business Summary
Fluoroproducts Business Summary Third Quarter 2020 Outlook Experienced sequential demand recovery for refrigerants as Expect steady recovery in Fluorochemicals and nascent Auto OEM production rates rebounded Fluoropolymers recovery potentially offset by negative impact of seasonality Slower re
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter 2020 Outlook Experienced lower revenue and volume due to MAP Expect demand to normalize once customer mines in Latin business divestiture and reduced demand in mining America return to full operation solutions driven by customer mine shutdowns in
Slide 13: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter 2020 Outlook Achieved sequential volume increases across all regions Continuing to see early stages of market recovery across and markets as a result of market recovery and channel all regions and markets effectiveness Actively managing our
Slide 14: Looking Ahead
Looking Ahead Expect a gradual, but uneven recovery Focused on execution and prioritizing cash generation Positioning the business for growth through the recovery 14
Slide 15: Appendix
The Chemours Company Appendix € Chemours”
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended September 30, June 30, 2020 2019 2020 SEGMENT NET SALES Fluoroproducts $ 533 $ 636 $ 523 Chemical Solutions 88 140 82 Titanium Technologies 612 614 488 Total Company $ 1,233 $ 1,390 $ 1,093 SEGMEN
Slide 17: 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 September 30, June 30, 2020 2019 2020 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended September 30, 2020 2019 Adjusted EBITDA (1) $ 860 $ 1,134 Less: Depreciation and amortization (1) (318) (303) Adjusted EBIT $ 542 $ 831 ($ in millions) As of September 30, 2020 2019 Total debt $ 4,095 $ 4,156 Total equ
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended September 30, June 30, 2020 2019 2020 Cash flows provided by operating activities $ 299 $ 288 $ 111 Less: Purchases of property, plant, and equipment (47) (128) (61) Free Cash Flows $ 252 $ 160 $ 50 19
Slide 20: Trademark notice
20 ©2020 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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