Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q2 2018 Earnings Presentation
23 slides from Chemours Company (the)'s earnings presentation, Aug 3, 2018
Slide 1: Second Quarter Earnings Presentation
Second Quarter Earnings Presentation August 3, 2018
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: Second Quarter 2018 Highlights
Second Quarter 2018 Highlights Delivered strong year-over-year increases across key financial metrics Balanced performance across portfolio led by Ti-Pure™ titanium dioxide pigment and Opteon™ refrigerants Completed $500M share repurchase plan and authorized new $750M plan through 2020 Increased div
Slide 4: Second Quarter 2018 Financial Summary
Second Quarter 2018 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 2Q18 2Q17 Yr/Yr Broad-based revenue growth Net Sales $1,816 $1,588 $228 across segments drove 14% revenue increase Net Income1 281 161 120 Adj. Net Income 314 164 150 Nearly doubled Adjusted EPS to $1.7
Slide 5: Adjusted EBITDA Bridge: 2Q18 versus 2Q17
Adjusted EBITDA Bridge: 2Q18 versus 2Q17 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Ti-Pure™ global average price up 17% • Higher average prices for Opteon™ refrigerants, base refrigerants and 600 fluoropolymers $26 $65 $31 500 $144 400 • Increased Opteon™ demand for mo
Slide 6: Adjusted EPS Bridge: 2Q18 versus 2Q17
Adjusted EPS Bridge: 2Q18 versus 2Q17 Positive Impact ($ per share unless otherwise noted) Negative Impact 2 1.8 $0.04 $0.07 1.6 1.4 1.2 $0.74 • Geographic mix of earnings • Discrete tax items 1 $1.71 0.8 0.6 0.4 $0.86 0.2 0 2Q17 Adjusted Pre-Tax Change in Effective Mix Change Sharesin 2Q18 Operatin
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) • Includes $186 net debt refinancing June 30, 2018 ending cash transactions, $139 share Negative Impact $29 balance of $1.2B repurchases, $37 M&A, and other 1800 $44 investing and financing activities Positive Impact $76 Free Cash Flow of
Slide 8: Returning Meaningful Cash to Shareholders
Returning Meaningful Cash to Shareholders • Declared 3Q18 dividend of $0.25 per share ▪ An $0.08 increase per share ▪ Expect 2018 annual dividend1 to be ~$150M ▪ Defensible through the cycle ▪ Anticipate to grow with earnings • Authorized $750M share repurchase plan through 2020 ▪ Completed previous
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary Second Quarter Highlights 2018 Outlook Commentary Strong Opteon™ refrigerant growth primarily driven Sustained Opteon™ refrigerant momentum across by stationary adoption in EU and mobile adoption in auto and stationary applications US and AP Certain Fluoropolyme
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary Second Quarter Highlights 2018 Outlook Commentary Modestly higher volume for Mining Solutions products Expect Mining Solutions and Glycolic Acid products to remain sold-out throughout year Increased demand across most Performance Chemicals & Intermediates pr
Slide 11: Titanium Technologies Business Summary
Titanium Technologies Business Summary Second Quarter Highlights 2018 Outlook Commentary Increased year-over-year price a result of previously Expect volume for Ti-Pure™ pigment to be similar to communicated price increases previous year Customers report reductions in TiO2 inventory levels M
Slide 12: 2018 Outlook
2018 Outlook Top End Of: Adjusted EBITDA $1.70 - $1.85 Billion Key Factors and Assumptions1 2018 Ti-Pure™ realized average price above 2017 average price Adjusted Continued Opteon™ adoption EPS $5.00 - $5.75 Fluoropolymers volume growth Includes benefit from ~$500M in completed share repurch
Slide 13: Expect to Meet or Exceed Three-Year Targets
Expect to Meet or Exceed Three-Year Targets REVENUE 1x – 2x GDP growth rate ADJUSTED Improvement by ~500 basis points EBITDA MARGINS ADJUSTED EPS 15% – 20% CAGR ROIC Maintain above 30% CUMULATIVE FCF Generate $2 – $3 billion Dividend1 $0.17/share $0.25/share CASH RETURN TO SHAREHOLDERS Share repurch
Slide 14: Chemours Investment Thesis
Chemours Investment Thesis Leveraging industry-leading positions to drive top-line growth of 1x-2x GDP in our core businesses with high ROIC (+30%) projects to drive sustainable Investing competitive advantage Strengthening our existing businesses through targeted M&A the majority of our Free Cash F
Slide 15: Appendix
The Chemours Company Appendix € Chemours”
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months Ended June 30, March 31, 2018 2017 2018 SEGMENT NET SALES Fluoroproducts $ 801 $ 710 $ 732 Chemical Solutions 153 149 144 Titanium Technologies 862 729 854 Total Company $ 1,816 $
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 June 30, March 31, 2018 2017 2018 $ amounts $ per share* $ amounts $ per share* $ amounts $ pe
Slide 18: GAAP Net Income to Adjusted Pre-Tax Operating Income, Adjusted Net Income, Adjusted EPS
GAAP Net Income Attributable to Chemours to Adjusted Pre-Tax Operating Income, Adjusted Net Income, and Adjusted EPS Reconciliations (Unaudited) ($ in millions except per share amounts) Three Months Ended June 30, 2018 2017 $ amounts $ per share* $ amounts $ per share* Net income attributable to Che
Slide 19: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Twelve Months Ended June 30, 2018 2017 Adjusted EBITDA (1) $ 1,740 $ 1,153 Less: Depreciation and amortization (1) (273) (287) Adjusted EBIT 1,467 866 Total debt 3,973 4,070 Total equity 1,025 572 Less: Cash and cas
Slide 20: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Six Months Ended June 30, March 31, June 30, 2018 2017 2018 2018 2017 Cash provided by operating activities $ 343 $ 184 $ 196 $ 539 $ 225 Less: Purchases of property, plant, and equipment (126) (69)
Slide 21: 2018 Estimated GAAP Net Income to Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS
2018 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, 2018 Low High Net income attributable to Chemours $ 985 $ 1,080 Other adjustments
Slide 22: 2018 Estimated GAAP Cash Flows from Operating Activities to Free Cash Flows
2018 Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) (Estimated) Year Ended December 31, 2018 Cash provided by operating activities > $1,225 Less: Purchases of property, plant, and equipment (525) - (475
Slide 23: ©2018 The Chemours Company trademarks notice
23 ©2018 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company