Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q3 2018 Earnings Presentation
21 slides from Chemours Company (the)'s earnings presentation, Nov 2, 2018
Slide 1: Third Quarter Earnings Presentation
Third Quarter Earnings Presentation November 2, 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: Third Quarter 2018 Highlights
Third Quarter 2018 Highlights Reported improved earnings and margins across all segments on a year-over-year basis Results driven by higher global average price of Ti-Pure™ titanium dioxide and increased demand across the Fluoroproducts segment Repurchased over three million shares during the third
Slide 4: Third Quarter 2018 Financial Summary
Third Quarter 2018 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ Sales up 3 percent, primarily on higher 3Q18 3Q17 global average selling prices of Ti-Pure™ Yr/Yr pigment and strong demand in Net Sales $1,628 $1,584 $44 Fluoroproducts Net Income1 275 207 68 GAAP Net I
Slide 5: Adjusted EBITDA Bridge: 3Q18 versus 3Q17
Adjusted EBITDA Bridge: 3Q18 versus 3Q17 ($ in millions unless otherwise noted) See reconciliation of Non-GAAP measures in the Appendix 5
Slide 6: Adjusted EPS Bridge: 3Q18 versus 3Q17
Adjusted EPS Bridge: 3Q18 versus 3Q17 ($ per share unless otherwise noted) See reconciliation of Non-GAAP measures in the Appendix 1 Based on average shares outstanding in 3Q18 6
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) September 30, 2018 ending cash balance of $1.3B Operating Cash Flow driven by strong operating results even with seasonally low working capital unwind of $40M Free Cash Flow of $226M1 versus $324M in 3Q17 Capital expenditures of $116M
Slide 8: Fluoroproducts Business Summary
Fluoroproducts Business Summary Third Quarter Highlights 2018 Outlook Commentary Opteon™ adoption in EU and US driving strong Expect continued adoption of Opteon™ in mobile and year-over-year growth stationary applications Base refrigerant pricing coming off highs realized Base refrigerant s
Slide 9: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter Highlights 2018 Outlook Commentary Mining Solutions sold out on robust demand in the Expect Mining Solutions market to remain tight in the Americas Americas Performance Chemicals and Intermediates Anticipate further favorable impact from rece
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter Highlights 2018 Outlook Commentary Increased price on a year-over-year basis as a result Expect volume for Ti-Pure™ pigment to be down of previously communicated price announcements mid-single digits in comparison to 2017 Sequentially, modes
Slide 11: 2018 Outlook
2018 Outlook Lower Half Of: Adjusted EBITDA $1.70 - $1.85 Billion Key Factors and Assumptions1 2018 Ti-Pure™ volume down mid-single Upper Half Of: digits versus 2017 Adjusted 2018 Ti-Pure™ realized average price EPS $5.10 - $5.85 above 2017 average price Continued Opteon™ adoption Fluoropoly
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 Dividend1 $0.17/share $0.25/share CASH RETURN TO SHAREHOLDERS Share repurch
Slide 13: Appendix
The Chemours Company Appendix € Chemours”
Slide 14: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months Ended September 30, June 30, 2018 2017 2018 SEGMENT NET SALES Fluoroproducts $ 682 $ 637 $ 801 Chemical Solutions 155 148 153 Titanium Technologies 791 799 862 Total Company $ 1,6
Slide 15: 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 September 30, June 30, 2018 2017 2018 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 16: GAAP Net Income to Adjusted Pre-Tax Operating Income, Adjusted Net Income, and Adjusted EPS
GAAP Net Income Attributable to Chemours to Adjusted Pre-Tax Operating Income, Adjusted Net Income, and Adjusted EPS Reconciliations (Unaudited) ($ in millions except per share amounts) Three Months Ended September 30, 2018 2017 $ amounts $ per share* $ amounts $ per share* Net income attributable t
Slide 17: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Twelve Months Ended September 30, 2018 2017 Adjusted EBITDA (1) $ 1,794 $ 1,266 Less: Depreciation and amortization (1) (281) (276) Adjusted EBIT 1,513 990 Total debt 3,999 4,095 Total equity 1,146 805 Less: Cash an
Slide 18: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Nine Months Ended September 30, June 30, September 30, 2018 2017 2018 2018 2017 Cash provided by operating activities (1) $ 342 $ 112 $ 343 $ 881 $ 337 Less: Purchases of property, plant, and equipm
Slide 19: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS (Estimated)
GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations (Unaudited) ($ in millions except per share amounts) (Estimated) Year Ended December 31, 2018 Low High Net income attributable to Chemours $ 980 $ 1,075 Other adjustments (45) (45) Restr
Slide 20: GAAP Operating Cash Flows to Free Cash Flows Reconciliations (Estimated)
GAAP Cash Flows Provided by Operating Activities to Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2018 Cash provided by operating activities ~ $1,150 Less: Purchases of property, plant, and equipment ~ (500) Free Cash Flows ~ $
Slide 21: ©2018 The Chemours Company trademark notice
21 ©2018 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company