Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q4 2015 Earnings Presentation
18 slides from Chemours Company (the)'s earnings presentation, Feb 24, 2016
Slide 1: The Chemours Company Fourth Quarter Earnings Presentation
The Chemours Company Fourth Quarter Earnings Presentation February 24, 2016
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, which often may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. These forward- looking statements a
Slide 3: Highlights
Highlights Delivered second half 2015 cost reductions of ~$100M Announced additional portfolio actions Achieved mechanical completion of Altamira TiO2 facility Realized working capital release of ~$399M Enhanced liquidity position through agreement with DuPont and amended credit facility 2
Slide 4: 4Q15 Overview: Fourth Quarter Financial Summary
4Q15 Overview ($ in millions unless otherwise noted) Fourth Quarter Financial Summary ∆ ∆ 4Q15 3Q15 Seq. 4Q14 Yr/Yr Year-over-year, financial results Net Sales $1,360 $1,486 ($126) $1,549 ($189) lower primarily due to lower TiO2 pricing and currency headwinds Adj. EBITDA 132 169 (37) 205 (73) Adj.
Slide 5: 2015 Overview: Full Year Financial Summary
2015 Overview ($ in millions unless otherwise noted) Full Year Financial Summary ∆ 2015 2014 Yr/Yr Double-digit Adjusted EBITDA margin Net Sales $5,717 $6,432 ($716) despite currency headwinds and continued TiO2 pricing pressures Adj. EBITDA 573 876 (303) Adj. EBITDA 10.0 13.6 (3.6) Cost reducti
Slide 6: Adjusted EBITDA Bridge: 4Q15 versus 4Q14
Adjusted EBITDA Bridge: 4Q15 versus 4Q14 Positive Impact ($ in millions) Negative Impact • TiO2 price down 14% • Lower prices in Chemical Solutions • Lower controllable costs • Reduced raw ($66) material pricing • Reduced fluoropolymer demand • Timing of $11 purchases and $205 lower quota ($100) vol
Slide 7: Adjusted EBITDA Bridge: 4Q15 versus 3Q15
Adjusted EBITDA Bridge: 4Q15 versus 3Q15 Positive Impact ($ in millions) Negative Impact • TiO2 price down 3% • Competitive fluoropolymers market conditions driven by strong USD • Lower Chemical Solutions pricing • Lower controllable costs • Unfavorable Corporate & Other ($7) ($58) $12 $38 ($22) $16
Slide 8: Liquidity Position
Liquidity Position ($ in millions) Positive Impact Negative Impact ($127) Quarter-end cash balance of $366M reflecting strong cash collections and lower inventory ($5) ($19) balances $399 Net debt down to $3.6B Total Liquidity of ~$1B, including $366 revolver availability of $625M1 ($86) $81 (
Slide 9: Liquidity Enhancement and Credit Facility Amendment
Liquidity Enhancement and Credit Facility Amendment Enhanced liquidity from agreement with DuPont – Extinguished cash and working capital true-ups contemplated in Separation Agreement with no payments – DuPont prepaid Chemours ~$190M for goods and services anticipated over the next 12 – 15 months
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter Highlights Outlook Commentary Maintained double-digit EBITDA margin as cost Implementing pricing actions reductions partially mitigated lower pricing Altamira expected to begin commercial Volume higher versus 4Q14, seasonally in line oper
Slide 11: Fluoroproducts Business Summary
Fluoroproducts Business Summary Fourth Quarter Highlights Outlook Commentary Seasonally lower volumes and customer Market penetration and growth of Opteon™ inventory management product line expected to sequentially ramp up with strong second half anticipated Continued phase-out of older refrig
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter Highlights Outlook Commentary Lower pricing driven by lower input costs Strategic evaluation expected to be complete by mid-year Licensing income of $5M contributed to improved quarter performance Anticipate Aniline transaction to close in f
Slide 13: Progress on Transformation Plan
Progress on Transformation Plan ($ in millions) Cost Reduction Progress Other Transformation Activity Portfolio Optimization $350M – Announced sale of Aniline facility Incremental to ~$450M Remaining Target – Beginning shutdown process for 2015 Niagara RMS site 95 RMS Shutdown – Implementing impro
Slide 14: 2016 Outlook
2016 Outlook • Full-year Adjusted EBITDA expected to be greater than 2015 level • Reaffirm $200M in cost reduction target from transformation plan • Full-year free cash flow anticipated to be modestly positive Key Factors Influencing 2016 Performance: Market Factors Chemours Initiatives • TiO2 price
Slide 15: Appendix
¢ Chemours” Appendix ~
Slide 16: GAAP Net (Loss) Income to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net (Loss) Income to Adjusted EBITDA and Adjusted Net Income Reconciliations ($ in millions unless otherwise noted) Three months ended Three months ended December 31, Year ended December 31, September 30, 2015 2014 2015 2014 2015 Net (loss) income attributable Chemours $ (86) $ 79 $ (90) $ 400
Slide 17: 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 Three months ended December 31, December 31, Year ended December 31, September 30, 2015 2014 2015 2014 2015 SEGMENT NET SALES Titanium Technologies 589 688 2,392 2,937 616 F
Slide 18: ©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company 17