Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q4 2016 Earnings Presentation
20 slides from Chemours Company (the)'s earnings presentation, Feb 16, 2017
Slide 1: Fourth Quarter Earnings Presentation
The Chemours Company Fourth Quarter Earnings Presentation February 16, 2017
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 federal securities laws, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include an
Slide 3: Highlights
Highlights Delivered $100M+ in Adjusted EBITDA year-over-year improvement in the fourth quarter Achieved full-year controllable fixed cost reductions of ~$200M Realized meaningful improvement in TiO2 pricing and Opteon™ growth in 2016 Increased full-year Free Cash Flow by $593M through improved work
Slide 4: 4Q16 Overview: Fourth Quarter Financial Summary
4Q16 Overview ($ in millions unless otherwise noted) Fourth Quarter Financial Summary ∆ ∆ Year-over-year 4Q16 4Q15 Yr/Yr 3Q16 Seq. Strong business performance ex-impact from divestitures Net Sales $1,322 $1,360 ($38) $1,398 ($76) ~850 basis point Adjusted Net Income EBITDA margin improvement (23
Slide 5: 2016 Overview: Full Year Financial Summary
2016 Overview ($ in millions unless otherwise noted) Full Year Financial Summary ∆ Transformation plan initiatives 2016 2015 Yr/Yr contributed to significant improvements in Net Income, Adjusted EBITDA and Net Sales $5,400 $5,717 ($317) margins across all segments Net Income 7 (90) 97 Achieved ~
Slide 6: Adjusted EBITDA Bridge: 4Q16 versus 4Q15
Adjusted EBITDA Bridge: 4Q16 versus 4Q15 Positive Impact ($ in millions) Negative Impact • Lower controllable fixed costs • Strong volume growth in • Reduced raw Opteon™ material pricing • Lower base refrigerant volume due to quota phase downs ($24) • TiO2 price up 9% $51 • Lower pricing in Fluoropo
Slide 7: Adjusted EBITDA Bridge: 4Q16 versus 3Q16
Adjusted EBITDA Bridge: 4Q16 versus 3Q16 Positive Impact ($ in millions) • TiO2 price up 2% Negative Impact • Competitive fluoropolymers market conditions resulted in 5% decline • Lower controllable fixed costs $2 ($4) ($28) $4 ($3) • Seasonally lower volume of refrigerants and TiO2 $268 $239 3Q16 C
Slide 8: Liquidity Position
Liquidity Position ($ in millions) Positive Impact Free Cash Flow of $166M, including Negative Impact $35M of DuPont prepay unwind, versus $175M in 4Q15 ($103) ($5) Quarter-end cash balance of $902M reflecting $181M notes/debt retired $462 ($216) and $103M of capital expenditures ($230) Retire
Slide 9: MDL Docket Settlement
MDL Docket Settlement Covers 3,500 existing plaintiffs in PFOA Ohio MDL matters Provides $670.7 million settlement, split evenly between DuPont and Chemours Contemplates five year sharing of potential future PFOA costs - Chemours to pay first $25 million per year - DuPont to pay next $25 milli
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter Highlights Outlook Commentary Improved profitability in the quarter driven by Continuing to work closely with our customers increased selling price, improved manufacturing to implement pricing announcements efficiency and the ramp up of Altam
Slide 11: Fluoroproducts Business Summary
Fluoroproducts Business Summary Fourth Quarter Highlights Outlook Commentary Strong Opteon™ demand continues to outpace Demand for Opteon™ expected to remain a expectations strong source of growth Base Fluorochemicals quotas resulted in lower Phase down quotas will continue to reduce volume
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter Highlights Outlook Commentary Decline in sales driven by portfolio changes Market leading position in Mining Solutions expected to drive growth Lower volume primarily due to loss of business through RMS shutdown North American gold productio
Slide 13: Progress on Transformation Plan
Progress on Transformation Plan ($ in millions) Cost Reduction Progress Other Transformation Activity ~$350M Portfolio Optimization Incremental to – Closed sale of 3 businesses 2015 ~$450M – Ceased production at Niagara site – Implemented improvement plan for Belle, WV site ~$300M Growing Market
Slide 14: 2017 Outlook
2017 Outlook 2017 Adjusted EBITDA Expected To Be Greater Than $1 Billion; Generating Positive Free Cash Flow, After Investing ~$450 Million In Capex To Support Growth Key Factors Influencing Market Performance Market Factors Chemours Initiatives • TiO2 price • Cost reductions • Currency • Altamira e
Slide 15: Appendix
Appendix
Slide 16: GAAP Net (Loss) Income to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net (Loss) Income to Adjusted EBITDA and Adjusted Net Income Reconciliations GAAP Net Income (Loss) to Adjusted Net Income and Adjusted EBITDA Tabular Reconciliations (UNAUDITED) ($ in millions except per share unless otherwise noted) Three months ended Three months ended Year ended December 31
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation GAAP Cash Flow to Free Cash Flow Tabular Reconciliations (UNAUDITED) ($ in millions unless otherwise noted) Three months ended Year ended December 31, September 30, December 31, 2016 2015 2016 2016 2015 Cash flows provided by (used for) operating activities 1 $ 269 $ 30
Slide 18: Segment Net Sales and Adjusted EBITDA
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 Year ended December 31, September 30, December 31, 2016 2015 2016 2016 2015 SEGMENT NET SALES Titanium Technologies $ 623 $
Slide 19: Reconciliation of Outlook
Reconciliation of Outlook Estimated GAAP Net Income to Adjusted EBITDA Tabular Reconciliations (UNAUDITED) Year ending December 31, 2017 (Dollars in millions) Income before income taxes 1 > $510 Interest expense, net ~200 Depreciation and amortization ~280 Other reconciling items 2 ~10 Adjusted EBIT
Slide 20: ©2017 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2017 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company 19