Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q3 2016 Earnings Presentation
19 slides from Chemours Company (the)'s earnings presentation, Nov 7, 2016
Slide 1: The Chemours Company Third Quarter 2016 Earnings Presentation
The Chemours Company Third Quarter 2016 Earnings Presentation November 7, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 address, among othe
Slide 3: Highlights
Highlights Delivered ~$100M of improved profitability through transformation initiatives in the 3rd quarter Communicated additional TiO2 price increases in North America and Asia Completed Chemical Solutions portfolio optimization; ~$685M in proceeds Improved Free Cash Flow by ~$125M year-over-year
Slide 4: 3Q16 Overview: Third Quarter Financial Summary
3Q16 Overview ($ in millions unless otherwise noted) Third Quarter Financial Summary ∆ ∆ Year-over-year 3Q16 3Q15 Yr/Yr 2Q16 Seq. Strong business performance across all segments despite Net Sales $1,398 $1,486 ($88) $1,383 $15 impact of divestitures Net Income 204 (29) 233 (18) 222 780 basis poi
Slide 5: Adjusted EBITDA Bridge: 3Q16 versus 3Q15
Adjusted EBITDA Bridge: 3Q16 versus 3Q15 Positive Impact ($ in millions) Negative Impact ($6) • No material • Increased impact from Opteon™ and $114 currency TiO2 demand • Lower contribution due to portfolio divestitures $0- $13 ($22) - $268 • Lower controllable fixed • Lower pass-through costs pric
Slide 6: Adjusted EBITDA Bridge: 3Q16 versus 2Q16
Adjusted EBITDA Bridge: 3Q16 versus 2Q16 ($ in millions) Positive Impact • Lower fixed Negative Impact and variable costs • TiO2 average global price up 3% ($9) • Lower Fluoropolymers pricing $52 • Lower pass-through Chemical Solutions pricing • Lower contribution $30 due to ($2) portfolio $10 dives
Slide 7: Liquidity Position
Liquidity Position ($ in millions) Positive Impact Free Cash Flow of $132M, Negative Impact including $39M of DuPont prepay unwind, versus $8M in Q3 2015 mainly due to start of seasonal working capital unwind $447 Cash restructuring payments of ~$21M in Q3, full year expected to $77 ($105) $23 b
Slide 8: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter Highlights Outlook Commentary Average pricing in the quarter higher Price increase implementations ongoing sequentially and year-over-year Expect seasonal volume decrease for Volume increased in nearly all regions remainder of the year C
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Third Quarter Highlights Outlook Commentary Opteon™ market adoption continues to outpace Opteon™ product line expected to continue to expectations deliver year-over-year growth Base refrigerant demand impacted by Seasonally lower base refrigerant demand regula
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter Highlights Outlook Commentary Lower segment sales driven by portfolio Impact of portfolio divestitures and site shut impact from asset sales and lower raw down activities ongoing material pass-through pricing Elimination of stranded costs from
Slide 11: Strategic Review of Chemical Solutions Portfolio Complete
Strategic Review of Chemical Solutions Portfolio Complete Strategic Review Results Divest Beaumont Aniline Facility Sulfur Products1 Clean & Disinfect1 • Sold to Dow for ~$140 million • Sold to Veolia for ~$321 million • Sold to LANXESS for ~$223 million • Completed March 2016 • Completed July 2016
Slide 12: Progress on Transformation Plan
Progress on Transformation Plan ($ in millions) Cumulative Cost Reduction Progress Other Transformation Activity $350M Portfolio Optimization Incremental to – Closed sale of Aniline facility 2015 ~$450M – Closed sale of Sulfur Products – Closed sale of C&D business – Ceased production at Niagara s
Slide 13: 2016 Outlook Update
2016 Outlook Update 2016 Adjusted EBITDA expected to be between $740M and $775M, including $200M of transformation savings generating positive Free Cash Flow Key Factors Influencing Market Performance Market Factors Chemours Initiatives • TiO2 price • Cost reductions • Currency • Working capital pro
Slide 14: Appendix
¢ Chemours” Appendix ~
Slide 15: GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations ($ in millions except per share unless otherwise noted) Three months ended Three months ended September 30, June 30, 2016 2015 2016 $ amounts $ per share $ amounts $ per share $ amounts $ per share Net income (loss) at
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions unless otherwise noted) Three months ended Nine months ended September 30, June 30, September 30, 2016 2015 2016 2016 2015 Cash flows provided by (used for) operating activities 1 $ 199 $ 113 $ 90 $ 324 $ (120) Cash flows used for purchases of property, p
Slide 17: Segment Net Sales and Adjusted EBITDA (unaudited)
Segment Net Sales and Adjusted EBITDA (unaudited) ($ in millions unless otherwise noted) Three months Three months ended ended September 30, June 30, 2016 2015 2016 SEGMENT NET SALES Titanium Technologies $ 625 $ 616 $ 596 Fluoroproducts 591 575 573 Chemical Solutions 182 295 214 Total Company $ 1,3
Slide 18: Reconciliation of Outlook
Reconciliation of Outlook Estimated GAAP Net Income to Adjusted Net Income and Adjusted EBITDA Tabular Reconciliations ($ in millions except per share unless otherwise noted) 2016 Full Year Estimate (Dollars in millions) Low High Net income attributable to Chemours $ 265 $ 290 Non-operating pension
Slide 19: ©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2016 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company 18