Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — FY2019 Earnings Presentation
21 slides from Chemours Company (the)'s earnings presentation, Feb 14, 2020
Slide 1: Fourth Quarter and Full Year 2019 Earnings Presentation
Fourth Quarter and Full Year 2019 Earnings Presentation February 14, 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: Full Year 2019 Highlights
Full Year 2019 Highlights Established TVS Foundation with AVA Contracts and Flex Portal Drove strong adoption of Opteon™ in mobile applications Achieved solid execution of three major capital projects Further reshaped the portfolio with the acquisition of SIM and divestiture of MAP Returned $486 mil
Slide 4: Full-Year 2019 Financial Summary
Full-Year 2019 Financial Summary Year-Over-Year ($ in millions unless otherwise noted) Full year results inline with 2019 updated guidance ∆ 2019 2018 Yr/Yr Sales of $5.5 billion dollars, down 17 percent driven by lower volumes and Net Sales $5,526 $6,638 $(1,112) prices in Titanium Technologies
Slide 5: Fourth Quarter 2019 Financial Summary
Fourth Quarter 2019 Financial Summary Year-Over-Year ($ in millions unless otherwise noted) Sales down 8 percent from 4Q18 Adjusted EBITDA decline due to lower ∆ sales and margins in Fluoroproducts and 4Q19 4Q18 Yr/Yr Titanium Technologies segments partially offset by Chemical Solutions record q
Slide 6: Adjusted EBITDA Bridge: 4Q19 versus 4Q18
Adjusted EBITDA Bridge: 4Q19 versus 4Q18 ($ in millions unless otherwise noted) Positive Impact Negative Impact 600 • Global refrigerant price headwinds • Lower contractual pass-through • Higher unit cost in Titanium Technologies prices for certain PC&I products in due to lower volumes Chemical Solu
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact 1400 Positive Impact December 31, 2019 ending cash 1200 balance of $943M, up $249M from prior quarter ($96) 1000 ($40) 4Q19 capital expenditures of $96M $400 ($15) 4Q19 dividends of $40M 800 $1.4B cash returned to 600
Slide 8: Fluoroproducts Business Summary
Fluoroproducts Business Summary Fourth Quarter and Full-Year Highlights Fluoroproducts Outlook Continued adoption of mobile Opteon™ refrigerants, driving Enhanced collaboration with industry leaders to drive adoption incremental demand of low GWP Opteon™ refrigerants Extended adverse impact of
Slide 9: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter and Full-Year Highlights Chemical Solutions Outlook Achieved record earnings in the quarter and year, driven by Commentary Expect customer demand for Mining Solutions products to improved operational discipline, productivity and execution remain
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter and Full-Year Highlights Titanium Technologies Outlook Delivered flat volumes sequentially reflecting anticipated Anticipate continued implementation of Ti-Pure™ Value share regain in fourth quarter Stabilization and share regain Experience
Slide 11: 2020 Outlook – Focus & Discipline in Low Growth Environment
2020 Outlook – Focus & Discipline in Low Growth Environment Improved earnings and free cash flow… …disciplined investment to drive shareholder value Adjusted EBITDA $1.05 - $1.25 Billion Capex ~$400 Million Up 13% from 2019 at the mid-point Lowering CAPEX by approximately 20% Adjusted Cash to EPS ~$
Slide 12: 2020 Capital Expenditures Breakdown
2020 Capital Expenditures Breakdown • 2020 CAPEX 20% lower than 2019 Levels 600 • High return growth projects in Fluoroproducts 500 & Titanium Technologies • Run and maintain flat 400 from 2019 ~$75 300 ~$125 ~$400 200 100 ~$200 0 Run and Maintain Growth Regulatory/Sustainability Total 12
Slide 13: 2020 Commitments
2020 Commitments Achieving revenue and earnings growth despite of global weakness & uncertainties Driving improved performance through focus and discipline Renewing focus on cash flow generation with disciplined CAPEX prioritization Executing our Corporate Responsibility Commitments 13
Slide 14: Appendix
The Chemours Company Appendix € Chemours”
Slide 15: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2019 2018 2019 2019 2018 SEGMENT NET SALES Fluoroproducts $ 614 $ 649 $ 636 $ 2,648 $ 2,862 Chemical Solutions 129 149 140 533 602 Titan
Slide 16: 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, 2019 2018 2019 2019 2018 $ amounts
Slide 17: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve Months Ended December 31, 2019 2018 Adjusted EBITDA (1) $ 1,020 $ 1,740 Less: Depreciation and amortization (311) (284) Adjusted EBIT $ 709 $ 1,456 Total debt $ 4,160 $ 3,972 Total equity 695 1,020 Less: Cash and cash equivalents (
Slide 18: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2019 2018 2019 2019 2018 Cash flows provided by operating activities $ 400 $ 259 $ 288 $ 650 $ 1,140 Less: Purchases of property, plant, and equipment (96) (154)
Slide 19: Estimated GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations
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, 2020 Low High Net income attributable to Chemours $ 405 $ 556 Transaction costs 23 30 A
Slide 20: Estimated GAAP Cash Flows from Operating Activities 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, 2020 Cash provided by operating activities > $750 Less: Purchases of property, plant, and equipment ~ (400) Free Cash F
Slide 21: ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
21 ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company