Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q1 2021 Earnings Presentation
23 slides from Chemours Company (the)'s earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation May 4, 2021
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 2021 Highlights
First Quarter 2021 Highlights Delivered strong topline growth; capitalized on recovery across all end-markets and regions Achieved strong margin and cash flow despite weather and logistics challenges Increased full-year 2021 Adjusted EBITDA and Free Cash Flow guidance by $100 million Executing on st
Slide 4: Net Zero Operations Greenhouse Gas Emissions Goal
Net Zero Operations Greenhouse Gas Emissions Goal Replaces prior 2030 intensity and 2050 net positive climate goals Our Strengthened 2030 Climate Goal Achieve 60% • Aligns with Paris Agreement Absolute Reduction 1.5°C goal • Sets a science-based target of CO2e Emissions • Will be realized by process
Slide 5: First Quarter 2021 Financial Summary
First Quarter 2021 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 1Q21 1Q20 Yr/Yr Net sales of $1.4 billion increased 10% vs. Net Sales $1,436 $1,305 $131 the prior-year first quarter, reflecting strength in the recovery and demand Net Income1 $96 $100 ($4) momentum from
Slide 6: Adjusted EBITDA Bridge: 1Q21 versus 1Q20
Adjusted EBITDA Bridge: 1Q21 versus 1Q20 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Contractual price adjustments for • Higher Ti-Pure™ pigment volumes • Winter Storm Uri related under absorption of 600 refrigerants as well as product and fixed costs • Increased HFO ado
Slide 7: Impact of Winter Storm Uri
Impact of Winter Storm Uri • Winter Storm Uri created significant operational disruptions at sites in Texas and the Southwest • Largest impact in our TSS segment with two key plant sites in Texas • Invoked severe weather procedures to maintain employee safety and plant security, with an around-the-c
Slide 8: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) 1200 Negative Impact Positive Impact $39 ($60) March 31, 2021 ending cash ($110) balance of $1,008M, down $97M ($41) from prior quarter ($35) 1000 1Q21 capital expenditures of $60M 1Q21 dividends of $41M $1,105 Other primarily driven
Slide 9: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter Highlights Outlook Delivered strong volume growth; demand strength across Expecting typical seasonal patterns across 2021; economic all regions and end-markets recovery to drive incremental demand Achieved 2% sequential price improvement wit
Slide 10: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary First Quarter Highlights Outlook Demand recovery driven by all markets and regions Expect typical seasonal pattern as the year progresses partially offset by headwinds from lower auto build rates Strong leverage to recovery in auto OEM, but anti
Slide 11: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary First Quarter Highlights Outlook Achieved pre-pandemic 2019 sales run-rate in first quarter Expect strong 1H21 with robust demand in driven by rapid demand recovery and spring back from Semiconductors, Electronics/Communications, and 2020 customer
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary First Quarter Highlights Outlook Delivered solid results behind rising demand across both Continued momentum in Mining Solutions with steady Mining Solutions and PC&I improvement in gold mining environment Experienced operational challenges and incremental c
Slide 13: 2021 Guidance Update
2021 Guidance Update Adjusted EBITDA $1.10 - $1.25 Billion Capex ~$350 Million vs. $1.00 - $1.15 Billion prior outlook unchanged vs. prior outlook Up 34% from 2020 at the mid-point Adjusted EPS ~$2.84 - $3.56 Cash to Shareholders The majority of our free cash vs. ~$2.40 - $3.12 prior outlook Up ~$1.
Slide 14: Closing Remarks
Closing Remarks Our foundation is strong The recovery is underway Chemours is focused on long term value creation and growth 14
Slide 15: Appendix
The Chemours Company Appendix ¢€ Chemours”
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended March 31, December 31, 2021 2020 2020 SEGMENT NET SALES Titanium Technologies $ 723 $ 613 $ 691 Thermal & Specialized Solutions 304 308 272 Advanced Performance Materials 333 292 279 Chemical Solu
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 March 31, December 31, 2021 2020 2020 $ amounts $ per share* $ amounts $ per share* $ amounts
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve months Ended March 31, 2021 2020 Adjusted EBITDA (1) $ 890 $ 1,015 Less: Depreciation and amortization (1) (324) (313) Adjusted EBIT $ 566 $ 702 ($ in millions) As of March 31, 2021 2020 Total debt $ 3,993 $ 4,034 Total equity 852
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended March 31, December 31, 2021 2020 2020 Cash flows provided by operating activities $ 39 $ 44 $ 353 Less: Purchases of property, plant, and equipment (60) (106) (53) Free Cash Flows $ (21) $ (62) $ 300 19
Slide 20: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of March 31, ($ in millions) 2021 2020 Total debt principal $ 4,027 $ 4,069 Less: Cash and cash equivalents (1,008) (714) Total debt principal, net $ 3,019 $ 3,355 Twelve months Ended March 31, ($ in millions) 2021 2020 Adjusted EBITDA (1) $ 890 $ 1,015 Net Leverage
Slide 21: Estimated GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation
Estimated GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation (Unaudited) ($ in millions except per share amounts) (Estimated) Year Ended December 31, 2021 Low High Net income attributable to Chemours $ 429 $ 552 Restructuring, transaction
Slide 22: Estimated GAAP Operating Cash Flows to Free Cash Flow Reconciliations
Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flow Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2021 Cash provided by operating activities $ >800 Less: Purchases of property, plant, and equipment ~(350) Free Cash Flo
Slide 23: ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
23 ©2019 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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