Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q2 2016 Earnings Presentation
18 slides from Chemours Company (the)'s earnings presentation, Aug 9, 2016
Slide 1: The Chemours Company Second Quarter 2016 Earnings Presentation
The Chemours Company Second Quarter 2016 Earnings Presentation August 9, 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 ~$100 million of transformation plan cost reductions through second quarter Completed strategic review of Chemical Solutions Portfolio and closed the sale of Sulfur Products for $325 million Began implementing additional TiO2 price increases Significant Free Cash Flow improvemen
Slide 4: 2Q16 Overview Second Quarter Financial Summary
2Q16 Overview ($ in millions unless otherwise noted) Second Quarter Financial Summary ∆ ∆ 2Q16 2Q15 Yr/Yr 1Q16 Seq. Year-over-year Net Sales $1,383 $1,508 ($125) $1,297 $86 Transformation Plan cost Adj. EBITDA 187 127 $60 128 $59 reductions and Opteon™ growth were partially offset by lower Adj. EB
Slide 5: Adjusted EBITDA Bridge: 2Q16 versus 2Q15
Adjusted EBITDA Bridge: 2Q16 versus 2Q15 Positive Impact ($ in millions) • Lower controllable fixed costs Negative Impact • Improved operations • Reduced raw material pricing & utilization • TiO2 average price $2 down 6% • Lower pass-through prices in Chemical Solutions • Lower fluoropolymers pricin
Slide 6: Adjusted EBITDA Bridge: 2Q16 versus 1Q16
Adjusted EBITDA Bridge: 2Q16 versus 1Q16 Positive Impact ($ in millions) Negative Impact • TiO2 price up 5% • Lower Fluoropolymers pricing • Lower pass-through $12 Chemical Solutions ($1) pricing $29 $11 • Lower controllable $8 fixed costs • Higher corporate and litigation • Seasonal increases in co
Slide 7: Liquidity Position
Liquidity Position ($ in millions) Positive Impact Negative Impact $17 Free Cash Flow of $11M benefit, $18 ($79) including $34M of DuPont prepay $73 unwind, versus ($145M) in Q2 ($18) ($6) 2015 on strong working capital ($57) performance Cash restructuring payments of Operating Cash Flow of $90M
Slide 8: Titanium Technologies Business Summary
Titanium Technologies Business Summary Second Quarter Highlights Outlook Commentary Pricing in all regions higher sequentially; began Price increase implementations ongoing implementing price increase announced in April Solid coating season in North America and Volume consistent with seasona
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Second Quarter Highlights Outlook Commentary Stronger market adoption of Opteon™ than Opteon™ product line expected to deliver originally anticipated strong growth in the second half and through 2017 Increased pricing on base refrigerants offset most of the impa
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary Second Quarter Highlights Outlook Commentary Revenue reduction driven by lower input Niagara RMS shutdown on track costs and sale of aniline business Anticipate C&D transaction to close in the Improved plant operations reduced costs second half Strategic
Slide 11: Strategic Review of Chemical Solutions Portfolio Complete
Strategic Review of Chemical Solutions Portfolio Complete Strategic Review Results Divest Aniline Sulfur Clean & Disinfect • Sold to Dow for ~$140 million • Sold to Veolia for $325 million • Sold to Lanxess for $230 million • Completed March 2016 • Completed July 2016 • Close expected 2H16 Total gro
Slide 12: Progress on Transformation Plan
Progress on Transformation Plan ($ in millions) Cumulative Cost Reduction Progress Other Transformation Activity Portfolio Optimization $350M – Closed sale of Aniline facility Incremental to 2015 ~$450M – Closed sale of Sulfur Products – Announced sale of C&D business – Shutting down Niagara RMS s
Slide 13: 2016 Outlook Maintained
2016 Outlook Maintained 2016 Adjusted EBITDA Expected to be Greater than 2015, including $200M of Transformation Savings, Generating Modestly Positive Free Cash Flow Key Factors Influencing 2016 Performance: Market Factors Chemours Initiatives • TiO2 price • Cost reductions • Currency • Workin
Slide 14: Appendix
¢ Chemours” Appendix ~
Slide 15: GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations Three months ended Three months ended ($ in millions unless otherwise noted) June 30, March 31, 2016 2015 2016 $ amounts $ per share $ amounts $ per share $ amounts $ per share Net (loss) income attributable Chemours $
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions unless otherwise noted) Three months ended Six months ended June 30, March 31, June 30, 2016 2015 2016 2016 2015 1 Cash flows provided by (used for) operating activities $ 90 $ 5 $ 36 $ 126 $ (233) Cash flows used for purchases of property, plant and equi
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 June 30, March 31, 2016 2015 2016 SEGMENT NET SALES Titanium Technologies $ 596 $ 642 $ 521 Fluoroproducts 573 588 531 Chemical Solutions 214 278 245 Total Company $ 1,383 $
Slide 18: ©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 17