Chemours Company (the) · NYSE:CC

Chemours Company (the) — Q2 2023 Earnings Presentation

22 slides from Chemours Company (the)'s earnings presentation, Jul 28, 2023

1. Slide 1: Chemours 2Q 2023 Earnings Presentation

   Chemours 2Q 2023 Earnings Presentation July 27, 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: Second Quarter 2023 Highlights

   Second Quarter 2023 Highlights Delivered solid 2Q results, with record Net Sales and Adjusted EBITDA in the TSS segment Announced shutdown of TT Kuan Yin, Taiwan facility to optimize manufacturing circuit Reached comprehensive settlement of PFAS-related drinking water claims of a defined class of U.

4. Slide 4: Chemours Released its Sixth Sustainability Report

   Chemours Released its Sixth Sustainability Report Showcased progress toward achieving goals through environmental leadership, sustainable innovation and community investment Report Highlights • Reduced total Scope 1 and Scope 2 GHG emissions* by 30% — reaching the halfway point of our 2030 goal. • R

5. Slide 5: Second Quarter 2023 Financial Summary

   Second Quarter 2023 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆  Net Sales down 14% to $1.6 billion, primarily 2Q23 2Q22 Yr/Yr driven by volume decline in TT Net Sales $1,643 $1,915 $(272)  GAAP EPS of $(2.52), inclusive of recent settlement charges of approximately $

6. Slide 6: Adjusted EBITDA Bridge: 2Q23 versus 2Q22

   AdjustedEBITDA Adjusted EBITDA Bridge: Bridge: 2Q23 versus 4Q22versus 4Q21 2Q22 ($ in millions unless otherwise noted)  Strong price gains driven by sales in $43 high-value end-markets in APM and pricing actions to offset raw material ($142) costs in TSS ($12)  Volume declines primarily driven by

7. Slide 7: Liquidity Position

   Liquidity Liquidity Position Position 1000 Adjusted ($ in EBITDA millions unless otherwise noted) Bridge: 4Q22 versus 4Q21 Gross debt $3.7B Net debt $2.9B  Q2’23 ending cash balance of TTM Net Leverage 3 2.6x $738 million $61 ($58)  Q2’23 Operating Cash Flow of 800 $61 million ($75)  Capex of $58

8. Slide 8: Segment Performance

   Segment Performance

9. Slide 9: Titanium Technologies Business Summary

   Titanium Technologies Business Summary Second Quarter Highlights Net Sales  Year-over-year Net Sales decrease driven by softer demand in ($ in millions) Price Volume Currency Yr/Yr % 0 (27) 0 all regions. Flat price in comparison to the prior period reflect Qtr/Qtr % (1) 13 0 aggregate contractual

10. Slide 10: Thermal & Specialized Solutions Business Summary

    Thermal & Specialized Solutions Business Summary Second Quarter Highlights Net Sales  Record Net Sales increased year-over-year driven by pricing, ($ in millions) Price Volume Currency excluding automotive end markets, due to changing market and Yr/Yr % 2 (1) 0 Qtr/Qtr % (1) 9 0 regulatory dynamics

11. Slide 11: Advanced Performance Materials Business Summary

    Advanced Performance Materials Business Summary Second Quarter Highlights Net Sales  Year-over-year Net Sales decreased due to demand softening in ($ in millions) Price Volume Currency the AM portfolio serving more economically sensitive end-markets, Yr/Yr % 7 (9) (1) Qtr/Qtr % (1) 1 0 partially of

12. Slide 12: 2023 Guidance – Update of Earnings and Cash Metrics

    2023 Guidance – Update of Earnings and Cash Metrics Updated Key Business Factors and Assumptions1:  Delayed recovery in TT, with 2H demand flat to slightly improved compared to 1H, given uneven and uncertain macroeconomic Adjusted 2 conditions globally EBITDA $1.100-$1.175 Billion  Weaker 2H deman

13. Slide 13: Our Priorities for Creating Shareholder Value

    Our Priorities for Creating Shareholder Value Improve earnings quality of our Titanium Technologies segment Drive sustainability led growth in TSS through low GWP refrigerants and specialized solutions, plus market-driven innovation Drive sustainability led growth in APM through Clean Energy and Adv

14. Slide 14: Appendix

    Appendix

15. Slide 15: Segment Net Sales and Adjusted EBITDA (Unaudited)

    Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended June 30, 2023 2022 2021 2020 SEGMENT NET SALES Titanium Technologies $ 707 $ 968 $ 859 $ 488 Thermal & Specialized Solutions 523 518 340 231 Advanced Performance Materials 387 401 362 292 Other Segment 26 28 94 82 T

16. Slide 16: GAAP Net (Loss) Income to Adjusted Net Income, EBITDA and EPS Reconciliations

    GAAP Net (Loss) 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 June 30, March 31, 2023 2022 2023 $ amounts $ per share* $ amounts $ per share* $ amoun

17. Slide 17: Free Cash Flow Reconciliations (Unaudited)

    Free Cash Flow Reconciliations (Unaudited) ($ in millions) Three Months Ended Six Months Ended June 30, March 31, June 30, 2023 2022 2023 2023 2022 Cash flows provided by (used for) operating activities $ 61 $ 291 $ (119) $ (58) $ 293 Less: Purchases of property, plant, and equipment (58) (62) (91)

18. Slide 18: Net Leverage Ratio (Unaudited)

    Net Leverage Ratio (Unaudited) 18

19. Slide 19: Return on Invested Capital (ROIC) (Unaudited)

    Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended June 30, 2023 2022 Adjusted EBITDA (1) $ 1,111 $ 1,557 Less: Depreciation and amortization (1) (303) (300) Adjusted EBIT $ 808 $ 1,257 ($ in millions) As of June 30, 2023 2022 Total debt, net (2) $ 3,629 $ 3,680 Total

20. Slide 20: Estimated GAAP Net Loss to Estimated Adjusted Net Income, EBITDA and EPS

    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 $ (97) $ (47) Restructuring,

21. Slide 21: Estimated GAAP Operating Cash Flows to Free Cash Flow Reconciliations

    Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flow Reconciliations (*) (Unaudited) ($ in millions) (Estimated) Year Ending December 31, 2023 Cash provided by operating activities $ >725 Less: Purchases of property, plant, and equipment ~(400) Free Cash Flows $ >325 * Assume

22. Slide 22: Thank you!

    Thank you!

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