Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q3 2019 Earnings Presentation
22 slides from Chemours Company (the)'s earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation November 5, 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: The Faces of Leadership at Chemours
The Faces of Leadership at Chemours Ed Sparks appointed President of our Fluoroproducts & Chemical Solutions businesses 3
Slide 4: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights Announced the promotion of Ed Sparks as President of Fluoroproducts & Chemical Solutions Continued to drive adoption of Opteon™ in mobile applications and growth in high grade Fluoropolymer lines Enhanced our TVS Framework with Flex expansion and a new Ti-Pure™ grade la
Slide 5: CRC - Moving from Commitments to Concrete Actions
CRC - Moving from Commitments to Concrete Actions • Reducing greenhouse gas (GHG) emissions is a key part of our responsible chemistry commitment. At our New Johnsonville site, we reduced our equivalent emissions by 145,000 metric tons per year by upgrading the steam generating facilities to a new c
Slide 6: Third Quarter 2019 Financial Summary
Third Quarter 2019 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ 3Q19 3Q18 Yr/Yr Sales down 15 percent from 3Q18, driven primarily by lower volumes of Ti-Pure™ Net Sales $1,390 $1,628 ($238) pigment and impact of illegal imports of HFC refrigerants into Europe Net Incom
Slide 7: Adjusted EBITDA Bridge: 3Q19 versus 3Q18
Adjusted EBITDA Bridge: 3Q19 versus 3Q18 ($ in millions unless otherwise noted) Positive Impact • Stable global TiO2 price • Lower global refrigerant prices Negative Impact • Lower pass-through prices for certain PC&I products in 600 Chemical Solutions • Reduced F-Gas quota sales 500 • Higher unit c
Slide 8: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Negative Impact 1400 Positive Impact September 30, 2019 ending cash 1200 balance of $694M, up $64M from prior quarter 1000 3Q19 capital expenditures of $128M ($128) 800 $288 ($41) ($55) 3Q19 dividends of $41M 600 Cash returned to shar
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Third Quarter Highlights Fluoroproducts Outlook Continued conversion to mobile Opteon™ refrigerants, Expect collaboration with refrigeration and air conditioning driving new demand despite softer automotive builds industry leaders to set conditions for future grow
Slide 10: Fayetteville Works Thermal Oxidizer Investment
Fayetteville Works Thermal Oxidizer Investment • Investing $100 million+ in state-of-the-art emissions- control technology • Committed to 99% air emissions-reduction milestones • Continue to demonstrate our progress in a transparent and collaborative way • Learn more about the work we are doing at h
Slide 11: Chemical Solutions Business Summary
Chemical Solutions Business Summary Third Quarter Highlights Chemical Solutions Outlook Experienced lower prices primarily in Performance Expect Mining Solutions demand to remain robust given Chemicals & Intermediates as a result of mix and reduced gold prices and mine developments raw material
Slide 12: Titanium Technologies Business Summary
Titanium Technologies Business Summary Third Quarter Highlights Titanium Technologies Outlook Delivered largely stable year-over-year and sequential Enhance long-term customer experience through Assured average global Ti-Pure™ pigment prices consistent with Ti- Value Agreement (AVA) contracts Pu
Slide 13: Delivering on Ti-Pure Value Stabilization
Delivering on Ti-Pure™ Value Stabilization Ti-Pure™ Commercial Framework • Enhancing our long-term customer relationships through Assured Value Agreement (AVA) contracts Ti-Pure™ Commercial • Driving Flex Portal channel development as a way to reengage with Framework a broader customer base, particu
Slide 14: Themes for 2020
Themes for 2020 Achieving top line growth in an uncertain market Driving operational discipline and productivity Focusing on cash flow generation Executing our Corporate Responsibility Commitments 14
Slide 15: Appendix
The Chemours Company Appendix € Chemours” 15
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months September 30, June 30, 2019 2018 2019 SEGMENT NET SALES Fluoroproducts $ 636 $ 682 $ 711 Chemical Solutions 140 155 130 Titanium Technologies 614 791 567 Total Company $ 1,390 $ 1
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 September 30, June 30, 2019 2018 2019 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Period Ended September 30, 2019 2018 Adjusted EBITDA (1) $ 1,134 $ 1,794 Less: Depreciation and amortization (1) (303) (281) Adjusted EBIT 831 1,513 Total debt 4,156 3,999 Total equity 843 1,146 Less: Cash and cash
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended September 30, June 30, 2019 2018 2019 Cash flows provided by operating activities $ 288 $ 342 $ 7 Less: Purchases of property, plant, and equipment (128) (116) (124) Free Cash Flows $ 160 $ 226 $ (1
Slide 20: 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, 2019 Low High Net income attributable to Chemours $ 357 $ 466 Restructuring, asset-rela
Slide 21: 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, 2019 Cash provided by operating activities $ ~ 600 Less: Purchases of property, plant, and equipment ~ (500) Free Cash
Slide 22: ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
22 ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company