Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q1 2019 Earnings Presentation
19 slides from Chemours Company (the)'s earnings presentation, May 3, 2019
Slide 1: First Quarter 2019 Earnings Presentation
First Quarter 2019 Earnings Presentation May 3, 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: First Quarter 2019 Highlights
First Quarter 2019 Highlights Weaker year-over-year results driven by expected lower Ti-Pure™ pigment volume and Fluoroproducts operating issues Launched Ti-Pure™ Flex Portal in 100 countries and 9 languages globally Solid Opteon™ growth in spite of illegal imports of refrigerants into EU Repurchase
Slide 4: First Quarter 2019 Financial Summary
First Quarter 2019 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 1Q19 1Q18 Yr/Yr Sales down 20 percent from record 1Q18, Net Sales $1,376 $1,730 ($354) driven primarily by lower volumes of Ti- Pure™ pigment Net Income1 94 297 (203) Adjusted EBITDA decline reflects wea
Slide 5: Adjusted EBITDA Bridge: 1Q19 versus 1Q18
Adjusted EBITDA Bridge: 1Q19 versus 1Q18 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Stable to higher average prices across all three segments 600 • Increased Fluoroproducts costs driven by operating issues, including the start-up of Corpus Christi Opteon™ facility and u
Slide 6: Adjusted EPS Bridge: 1Q19 versus 1Q18
Adjusted EPS Bridge: 1Q19 versus 1Q18 ($ per share unless otherwise noted) 2.5 Positive Impact Negative Impact 2 1.5 1 ($0.83) $0.05 $1.41 0.5 $0.63 0 1Q18 Adjusted AOI Net Change Sharesin 1Q19 Income Diluted Shares1 See reconciliation of Non-GAAP measures in the Appendix 1 Based on average diluted
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact 1400 Positive Impact March 31, 2019 ending cash balance of $697M 1200 ($44) 1Q19 capital expenditures of ($133) 1000 $133M ($297) 1Q19 dividends and share 800 repurchases of $297M ($30) 600 $1,201 Total Liquidity of ~$
Slide 8: Fluoroproducts Business Summary
Fluoroproducts Business Summary First Quarter Highlights 2019 Outlook Commentary Continued robust adoption of Opteon™ refrigerants for Expect continued adoption of Opteon™ refrigerants in both mobile applications, despite auto softness and application mobile and stationary applications, with ill
Slide 9: Chemical Solutions Business Summary
Chemical Solutions Business Summary First Quarter Highlights 2019 Outlook Commentary Delivered performance in line with expectations including Expect customer demand for Mining Solutions products to increase in Adjusted EBITDA of 36 percent on a year-over- remain strong year bases Do not antic
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter Highlights 2019 Outlook Commentary Delivered stable year-over-year and sequential average Engage customers in the ongoing benefits of the AVA global Ti-Pure™ pigment prices, consistent with contract structure to support their needs for secure
Slide 11: 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 Share EPS ~$4.00 - $5.05 Repurchases $1 Billion Authorization Key Factors and Assumptions1 Free 2019 Ti-Pure™ volume lower than
Slide 12: Appendix
The Chemours Company Appendix € Chemours” 12
Slide 13: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months March 31, December 31, 2019 2018 2018 SEGMENT NET SALES Fluoroproducts $ 687 $ 732 $ 649 Chemical Solutions 134 144 149 Titanium Technologies 555 854 666 Total Company $ 1,376 $ 1
Slide 14: 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 March 31, December 31, 2019 2018 2018 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 15: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Period Ended March 31, 2019 2018 Adjusted EBITDA (1) $ 1,535 $ 1,605 Less: Depreciation and amortization (1) (289) (272) Adjusted EBIT 1,246 1,333 Total debt 3,978 4,155 Total equity 816 1,002 Less: Cash and cash eq
Slide 16: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended March 31, December 31, 2019 2018 2018 Cash flows (used in) provided by operating activities $ (44) $ 196 $ 259 Less: Purchases of property, plant, and equipment (133) (102) (154) Free Cash Flows $ (
Slide 17: 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, 2019 Low High Net income attributable to Chemours $ 655 $ 830 Restructuring, asset-related, and o
Slide 18: GAAP Cash Flows from Operating Activities to Free Cash Flows Reconciliations
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 Cash Flows > $
Slide 19: ©2019 The Chemours Company trademarks
19 ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company