Chemours Company (the) · NYSE:CC

Chemours Company (the) — Q3 2023 Earnings Presentation

23 slides from Chemours Company (the)'s earnings presentation, Oct 27, 2023

1. Slide 1: Chemours 3Q 2023 Earnings Presentation

   Chemours 3Q 2023 Earnings Presentation October 26, 2023

2. Slide 2: Safe Harbor Statement and Other Matters

   Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current exp

3. Slide 3: Essential. Responsible. Chemistry.

   Essential. Responsible. Chemistry. Our chemistry helps build a sustainable future for all. Market Leader Across Innovation & Sustainable Environmental Platforms Solutions Leadership Our proprietary chemistry, advanced We are enabling the next generation of We have set ambitious goals, including proc

4. Slide 4: Third Quarter 2023 Highlights

   Third Quarter 2023 Highlights Launched TT Transformation Plan to drive ~$100 million run-rate cost savings in 2024 Achieved record 3Q TSS Net Sales and announced Opteon™ 2P50 for two-phase immersion cooling Completed the sale of our Glycolic Acid business, yielding cash proceeds of $138 million Gran

5. Slide 5: Third Quarter 2023 Financial Summary

   Third Quarter 2023 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ 3Q23 3Q22  Net Sales down 16% to $1.5 billion, primarily Yr/Yr driven by volume decline in TT and Advanced Net Sales $1,487 $1,777 $(290) Materials portfolio in APM Net Income 1 $20 $240 $(220)  GAAP EPS o

6. Slide 6: Adjusted EBITDA Bridge: 3Q23 versus 3Q22

   Adjusted Adjusted EBITDA EBITDA Bridge: Bridge: 3Q23 versus 4Q22versus 4Q21 3Q22 ($ in millions unless otherwise noted)  Price declines primarily reflect lower pricing in market exposed channels in TT segment  Decrease in costs primarily driven by moderating input costs and operational improvement

7. Slide 7: Liquidity Position as of September 30, 2023

   Liquidity Position as of September 30, 2023 Liquidity Position 2600 2400 Adjusted EBITDA Bridge: 4Q22 versus 4Q21 ($ in millions unless otherwise noted) 2200 Gross debt $4.0B  Q3’23 ending unrestricted cash balance of $852 million (total cash and 2000 Net debt $3.2B restricted cash and cash equival

8. Slide 8: Segment Performance

   Segment Performance

9. Slide 9: Titanium Technologies Business Summary

   Titanium Technologies Business Summary Third Quarter Highlights Net Sales  Year-over-year Net Sales decline driven by weaker demand ($ in millions) Price Volume Currency across all regions; price declines primarily reflect lower pricing Yr/Yr % (3) (18) 0 Qtr/Qtr % (3) 1 0 in market exposed channel

10. Slide 10: Titanium Technologies Transformation Plan

    Titanium Technologies Transformation Plan ➢ Launched TT Transformation Plan to accelerate the TT earnings improvement strategic priority ➢ TT Transformation Plan expected to drive improvements in business costs and margins over time, encompassing the recent closure of the Kuan Yin manufacturing faci

11. Slide 11: Thermal & Specialized Solutions Business Summary

    Thermal & Specialized Solutions Business Summary Third Quarter Highlights Net Sales  Year-over-year Net Sales increase driven by demand for Opteon™ ($ in millions) Price Volume Currency products and favorable currency; volumes increased due to Yr/Yr % (1) 5 1 Qtr/Qtr % (5) (12) 0 continued adoption

12. Slide 12: Advanced Performance Materials Business Summary

    Advanced Performance Materials Business Summary Third Quarter Highlights Net Sales Price Volume Currency  Year-over-year Net Sales decreased due to demand softening in ($ in millions) Yr/Yr % 2 (26) 0 the Advanced Materials portfolio which serves more economically Qtr/Qtr % (1) (10) 0 sensitive end

13. Slide 13: 2023 Guidance – Update of Earnings and Cash Metrics

    2023 Guidance – Update of Earnings and Cash Metrics Updated Key Business Factors and Assumptions 1:  Continued Opteon™ adoption in mobile and stationary applications Adjusted ahead of the next HFC step-down in 2024 in the EU and US paired 2 with typical seasonality in customer demand trends through

14. Slide 14: Progress Against Our Strategic Priorities

    Progress Against Our Strategic Priorities Improve earnings quality of our Titanium ➢ Launched TT Transformation Plan to drive approx. $100 Technologies segment million run-rate cost savings in ‘24 Drive sustainability led growth in TSS through low ➢ Achieved quarterly Net Sales record in 3Q’23 GWP r

15. Slide 15: Appendix

    Appendix

16. Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)

    Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended September 30, 2023 2022 2021 2020 SEGMENT NET SALES Titanium Technologies $ 690 $ 877 $ 908 $ 612 Thermal & Specialized Solutions 436 417 318 293 Advanced Performance Materials 343 450 356 240 Other Segment 18 33 98

17. Slide 17: Free Cash Flows and Adjusted Free Cash Flows Reconciliation

    Free Cash Flows and Adjusted Free Cash Flows Reconciliation (Unaudited) ($ in millions) Three Months Ended Nine Months Ended September 30, June 30, September 30, 2023 2022 2023 2023 2022 Cash flows provided by operating activities $ 130 $ 301 $ 61 $ 72 $ 594 Less: Purchases of property, plant, and e

18. Slide 18: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA, Adjusted EPS Reconciliations

    GAAP Net Income (Loss) 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, 2023 2022 2023 $ amounts $ per share* $ amounts $ per share* $ a

19. Slide 19: Net Leverage Ratio (Unaudited)

    Net Leverage Ratio (Unaudited) As of September 30, ($ in millions) 2023 2022 Total debt principal $ 4,015 $ 3,562 Less: Cash and cash equivalents (852) (1,167) Total debt principal, net $ 3,163 $ 2,395 Twelve Months Ended September 30, ($ in millions) 2023 2022 Adjusted EBITDA (1) $ 995 $ 1,548 Net

20. Slide 20: Return on Invested Capital (ROIC) (Unaudited)

    Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended September 30, 2023 2022 Adjusted EBITDA (1) $ 995 $ 1,548 Less: Depreciation and amortization (1) (307) (294) Adjusted EBIT $ 688 $ 1,254 ($ in millions) As of September 30, 2023 2022 Total debt, net (2) $ 3,967 $ 3,53

21. Slide 21: Estimated GAAP Net Loss to Estimated Adjusted Net Income, Adjusted EBITDA

    Estimated GAAP Net Loss Attributable to Chemours to Estimated Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation (*) (Unaudited) (In millions except per share amounts) (Estimated) Year Ending December 31, 2023 Low High Net loss attributable to Chemours $ (201) $ (166) Litigation-re

22. Slide 22: Estimated GAAP Operating Cash Flows to Adjusted Free Cash Flows

    Estimated GAAP Cash Flows Provided by Operating Activities to Adjusted Free Cash Flows Reconciliations (*) (Unaudited) ($ in millions) (Estimated) Year Ending December 31, 2023 Cash provided by operating activities $ >588 Less: Purchases of property, plant, and equipment ~(400) Free Cash Flows (1) $

23. Slide 23: Thank you!

    Thank you!

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