Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q1 2018 Earnings Presentation
21 slides from Chemours Company (the)'s earnings presentation, May 4, 2018
Slide 1: First Quarter Earnings Presentation
First Quarter Earnings Presentation May 4, 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 Doubled earnings per share on strong Adjusted EBITDA growth Acquired ICOR International, an attractive, targeted addition to the Chemours refrigerants platform Repurchased approximately $400 million of shares through April 2018 Expect to exceed 3-year financial targets, driven by momentum
Slide 4: First Quarter 2018 Financial Summary
First Quarter 2018 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 1Q18 1Q17 Yr/Yr Strong financial performance Net Sales $1,730 $1,437 293 driven by contributions from all three businesses Net Income1 297 150 147 Adj. Net Income 266 131 135 Doubled EPS on Adjusted EBIT
Slide 5: Adjusted EBITDA Bridge: 1Q18 versus 1Q17
Adjusted EBITDA Bridge: 1Q18 versus 1Q17 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Ti-Pure™ global average price up 22% • Contractual pricing adjustments for mobile Opteon™ products offset by higher base refrigerant and Fluoropolymers pricing 500 $43 $47 $47 400 • High
Slide 6: Adjusted EPS Bridge: 1Q18 versus 1Q17
Adjusted EPS Bridge: 1Q18 versus 1Q17 Positive Impact ($ per share unless otherwise noted) Negative Impact 2 1.8 1.6 $0.26 1.4 $0.00 1.2 $0.97 • Geographic mix of earnings 1 • Discrete tax items 0.8 $1.41 0.6 0.4 $0.70 0.2 0 1Q17 Pre-Tax Adjusted Change Mix in Effective Shares Change in 1Q18 Operati
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) March 31, 2018 ending cash $18 Negative Impact of $1.4B $73 Positive Impact $192 Free Cash Flow of $94M1 versus ($28M) in 1Q17 $297 $102 Capital expenditures of $102M $31 Completed $400M of share repurchases since inception, $185 incl
Slide 8: Fluoroproducts Business Summary
Fluoroproducts Business Summary First Quarter Highlights 2018 Outlook Commentary Adoption of Opteon™ stationary blends in Europe and Anticipate continued transition to Opteon™ stationary mobile refrigerants in US drove strong year-over-year blends in Europe and mobile refrigerants in US volume i
Slide 9: Chemical Solutions Business Summary
Chemical Solutions Business Summary First Quarter Highlights 2018 Outlook Commentary Solid demand and positive raw material pass-through Experiencing a delay in the construction of the new pricing for Mining Solutions products Mining Solutions facility Slightly positive demand with modestly lo
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter Highlights 2018 Outlook Commentary Year-over-year higher global average price reflected Expect volume for Ti-Pure™ pigment to be modestly implementation of previously-communicated above GDP increases in 2017 Working with customers to impleme
Slide 11: 2018 Outlook
2018 Outlook Top End Of: 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 $5.00 - $5.75 Fluoropolymers volume growth Changes to Adjusted EPS include benefit from ~$400M in
Slide 12: Expect to Meet or Exceed Three-Year Targets
Expect to Meet or Exceed Three-Year Targets 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 $500 million s
Slide 13: Appendix
The Chemours Company Appendix € Chemours”
Slide 14: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three months ended Three months ended March 31, December 31, 2018 2017 2017 SEGMENT NET SALES Fluoroproducts $ 732 $ 652 $ 656 Chemical Solutions 144 139 134 Titanium Technologies 854 646 785 Total Company $ 1,7
Slide 15: GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Reconciliations
GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Reconciliations (Unaudited) ($ in millions except per share amounts) Three months ended Three months ended March 31, December 31, 2018 2017 2017 $ amounts $ per share $ amounts $ per share $ amounts $ per share Net income attributable to Che
Slide 16: GAAP Net Income to Adjusted Pre-Tax Operating Income Reconciliations
GAAP Net Income to Adjusted Pre-Tax Operating Income and Adjusted Net Income Reconciliations (Unaudited) ($ in millions except per share amounts) Three Months Ended March 31, 2018 2017 $ amounts $ per share $ amounts $ per share Net income attributable to Chemours $ 297 1.58 $ 150 0.79 Provision for
Slide 17: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Three Months Ended March 31, 2018 2017 Adjusted EBITDA (1) $ 1,605 $ 979 Less: Depreciation and amortization (1) (272) (289) Adjusted EBIT 1,333 690 Total debt 4,155 3,552 Total equity 1,002 358 Less: Cash and cash
Slide 18: Free Cash Flow Reconciliations (Unaudited)
Free Cash Flow Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three months ended March 31, December 31, 2018 2017 2017 Cash flow provided by operating activities $ 196 $ 41 $ 303 Less: Purchases of property, plant, and equipment (102) (69) (165) Free Cash Flow $ 94 $ (28) $ 138 1
Slide 19: GAAP Net Income to Adjusted Net Income, EBITDA and EPS Reconciliations (Estimated)
GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2018 Low High Net income attributable to Chemours $ 985 $ 1,080 Other adjustments (45) (45) Restruc
Slide 20: GAAP Operating Cash Flow to Free Cash Flow Reconciliations (Estimated)
GAAP Cash Flow Provided by Operating Activities to Free Cash Flow Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2018 Cash flow provided by operating activities > $1,225 Less: Purchases of property, plant, and equipment (525) - (475) Free Cash
Slide 21: ©2018 The Chemours Company trademarks notice
21 ©2018 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company