Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q2 2020 Earnings Presentation
17 slides from Chemours Company (the)'s earnings presentation, Jul 31, 2020
Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation July 31, 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: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights Executed effectively on all elements of Chemours COVID-19 response plan Experienced a challenging Q2, as expected, with sequential demand improvements in June Delivered solid cash flow in spite of the weak demand environment Continued to maintain financial flexibility
Slide 4: 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 5: Second Quarter 2020 Financial Summary
Second Quarter 2020 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ 2Q20 2Q19 Sales down 22 percent from 2Q19; driven Yr/Yr by lower demand from COVID-19 pandemic Net Sales $1,093 $1,408 $(315) Adjusted EBITDA decline primarily driven Net Income1 $24 $96 $(72) by lower
Slide 6: Adjusted EBITDA Bridge: 2Q20 versus 2Q19
Adjusted EBITDA Bridge: 2Q20 versus 2Q19 ($ in millions unless otherwise noted) 600 Positive Impact Negative Impact 500 • Lower Fluoroproducts volumes primarily • Cost reductions across the company impacted by Auto OEM shutdowns and including better operating performance in 400 weak industrial end m
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact June 30, 2020 ending cash balance of 1400 Positive Impact $1,031M 1200 2Q20 capital expenditures of $61M 1000 2Q20 dividends of $41M $300 800 ($61) Total Liquidity of ~$1.4B including revolver $111 ($41) $8 availabilit
Slide 8: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Total Liquidity of $1.4B as of June 30, 2020 Maintenance Covenant: Senior Secured Net Leverage Ratio less than 2.0x Global cash $1,031M Current Ratio* = ~1.08x Revolver availability, net of letters of credit: $399M Gross Senior Secured Debt: $1.6B,
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Second Quarter 2020 Outlook Experienced lower demand primarily due to Auto OEM Anticipate margin improvement driven by improved shutdowns and general industrial end-markets softness demand, enhanced operational utilization, and continued FY 2020 cost actions Exp
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary Second Quarter 2020 Outlook Experienced lower demand in mining solutions driven by Expect demand to normalize once customer mines return customer mine shutdowns to full operation Achieved 1100bps of margin improvement year-over-year Continue to focus on FY
Slide 11: Titanium Technologies Business Summary
Titanium Technologies Business Summary Second Quarter 2020 Outlook Experienced softer demand in most of the regions with Maintaining close engagement with customers to respond modest sequential recovery as we exited June to their changing needs and demand recovery Saw steady performance in arc
Slide 12: Appendix
The Chemours Company Appendix € Chemours”
Slide 13: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended June 30, March 31, 2020 2019 2020 SEGMENT NET SALES Fluoroproducts $ 523 $ 711 $ 600 Chemical Solutions 82 130 92 Titanium Technologies 488 567 613 Total Company $ 1,093 $ 1,408 $ 1,305 SEGMENT AD
Slide 14: 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 June 30, March 31, 2020 2019 2020 $ amounts $ per share* $ amounts $ per share* $ amounts $ pe
Slide 15: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended June 30, 2020 2019 Adjusted EBITDA (1) $ 898 $ 1,321 Less: Depreciation and amortization (1) (315) (296) Adjusted EBIT $ 583 $ 1,025 ($ in millions) As of June 30, 2020 2019 Total debt $ 4,346 $ 4,208 Total equity 659
Slide 16: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended June 30, March 31, 2020 2019 2020 Cash flows provided by operating activities $ 111 $ 7 $ 44 Less: Purchases of property, plant, and equipment (61) (124) (106) Free Cash Flows $ 50 $ (117) $ (62) 16
Slide 17: Trademark notice
17 ©2020 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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