Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — FY2018 Earnings Presentation
23 slides from Chemours Company (the)'s earnings presentation, Feb 15, 2019
Slide 1: Fourth Quarter and Full Year 2018 Earnings Presentation
Fourth Quarter and Full Year 2018 Earnings Presentation February 15, 2019
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: Recent Highlights
Recent Highlights Reported record annual results with year-over-year improvements in all key financial metrics Published our first Corporate Responsibility Commitments (CRC) with ambitious goals Announced startup of new low-cost Opteon™ plant in Corpus Christi, TX Returned nearly $800 million to sha
Slide 4: Full-Year 2018 Financial Summary
Full-Year 2018 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ 2018 2017 Yr/Yr Sales up 7 percent with ~2x GDP growth across most businesses Net Sales $6,638 $6,183 $455 Results driven by higher global average Net Income1 995 746 249 selling prices of Ti-Pure™ pigment a
Slide 5: Fourth Quarter 2018 Financial Summary
Fourth Quarter 2018 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 4Q18 4Q17 Yr/Yr Sales down 7 percent from record 4Q17 Net Sales $1,464 $1,575 ($111) Adjusted EBITDA decline primarily a result Net Income1 142 228 (86) of lower volume for Ti-Pure™ pigment partially of
Slide 6: Adjusted EBITDA Bridge: 4Q18 versus 4Q17
Adjusted EBITDA Bridge: 4Q18 versus 4Q17 ($ in millions unless otherwise noted) Positive Impact Negative Impact 600 • Higher average prices across all three segments • Higher raw material costs • Partially offset by increased other income 500 $64 ($81) 400 ($13) ($23) 300 • Lower Titanium Technologi
Slide 7: Adjusted EPS Bridge: 4Q18 versus 4Q17
Adjusted EPS Bridge: 4Q18 versus 4Q17 Positive Impact ($ per share unless otherwise noted) Negative Impact 2 1.8 1.6 1.4 1.2 $0.09 ($0.23) 1 0.8 0.6 $1.19 $1.05 0.4 0.2 0 4Q17 Adjusted Pre-Tax Shares in Change 4Q18 Operating Income Diluted Shares1 See reconciliation of Non-GAAP measures in the Appen
Slide 8: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact 1600 Positive Impact $52 ($10) December 31, 2018 ending cash balance of $1.2B $75 ($154) 4Q18 capital expenditures of 1400 $154M, with total capital $142 expenditures of $498M in 2018 ($166) 4Q18 dividends and share repu
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Fourth Quarter and Full-Year Highlights 2019 Outlook Commentary Saw continued adoption of Opteon™ refrigerants, driving Expect recent OEM wins in stationary air conditioning to incremental demand despite softer automotive builds set conditions for the next wave of
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter and Full-Year Highlights 2019 Outlook Commentary Realized segment growth on strong demand and higher Expect customer demand for Mining Solutions products to price for Mining Solutions products remain strong Delivered stable year-over-year resu
Slide 11: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter and Full-Year Highlights 2019 Outlook Commentary Achieved higher year-over-year average global Ti-Pure™ Anticipate continued implementation of Ti-Pure™ Value pigment prices, reflecting previously communicated price Stabilization through AVA c
Slide 12: 2019 Outlook
2019 Outlook Delivering earnings and cash flow… …While investing to create long-term shareholder value Adjusted EBITDA $1.35 - $1.60 Billion Capex ~$500 Million Adjusted EPS ~$4.00 - $5.05 Share Repurchases $1 Billion Authorization Increasing existing $750 million authorization to $1 billion through
Slide 13: 2019 Capital Expenditures Breakdown
2019 Capital Expenditures Breakdown • Total capex similar to 2018 levels 600 • Includes capex related to Fayetteville 500 and Dordrecht ~$100 • Capacity unlock in key fluoropolymers products 400 • Investment in captive ore body development ~$100 300 • Consolidation of R&D sites due to ~$100 lease ex
Slide 14: 2019 Commitments
2019 COMMITMENTS Achieve revenue and earnings growth in Fluoroproducts and Chemical Solutions Execute Ti-Pure™ Value Stabilization strategy and continue to debottleneck across circuit Continue to execute capital allocation strategy and maintain de-risked balance sheet Continue to evaluate opportunit
Slide 15: Appendix
The Chemours Company Appendix € Chemours”
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2018 2017 2018 2018 2017 SEGMENT NET SALES Fluoroproducts $ 649 $ 656 $ 682 $ 2,862 $ 2,654 Chemical Solutions 14
Slide 17: 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 Twelve Months Ended December 31, September 30, December 31, 2018 2017 2018 2018 $ amounts $ pe
Slide 18: 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 December 31, 2018 2017 $ amounts $ per share* $ amounts $ per share* Net income attributable to
Slide 19: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Twelve Months Ended December 31, 2018 2017 Adjusted EBITDA (1) $ 1,740 $ 1,422 Less: Depreciation and amortization (284) (273) Adjusted EBIT 1,456 1,149 Total debt 3,972 4,112 Total equity 1,020 865 Less: Cash and c
Slide 20: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2018 2017 2018 2018 2017 Cash flows provided by operating activities (1) $ 259 $ 303 $ 342 $ 1,140 $ 640 Less: Purchases of property, plan
Slide 21: 2019 Estimated Net Income to 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) (Estimated) Year Ended December 31, 2019 Low High Net income attributable to Chemours $ 675 $ 855 Restructuring, asset-related, and o
Slide 22: 2019 Estimated Operating Cash Flows to Free Cash Flows Reconciliations
2019 Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2019 Cash provided by operating activities > $1,050 Less: Purchases of property, plant, and equipment ~ (500) Free
Slide 23: Trademark notice
23 ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company