Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q2 2019 Earnings Presentation
22 slides from Chemours Company (the)'s earnings presentation, Aug 2, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation August 2, 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 Mark Newman has been promoted to Chief Operating Officer Sameer Ralhan has been promoted to Chief Financial Officer Erin Kane, CEO of AdvanSix, has been appointed to our Board of Directors 3
Slide 4: DuPont Lawsuit
DuPont Lawsuit • Chemours seeks judgment limiting DuPont’s indemnification to maximums DuPont itself established for Chemours at spin or, in the alternative, return of the $4B extracted at spin • Chemours is on solid financial footing, a result of hard choices made by management and the tireless wor
Slide 5: AFFF / Fire-Fighting Foams
AFFF / Fire-Fighting Foams • PFOS was the dominant chemistry in the Fire-fighting Foams industry for decades • Neither Chemours, nor DuPont before it, made or sold PFOS • Chemours’ potential contribution to PFOA in the environment from our ingredients used in fire-fighting foams is negligible, if at
Slide 6: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights Announced the promotion and appointment of three leaders at Chemours Continued to deliver Opteon™ growth in mobile applications with US and Asia adoption Achieved commercial production at our Corpus Christi, Texas Opteon™ facility Completed global roll-out of our Ti-Pu
Slide 7: Second Quarter 2019 Financial Summary
Second Quarter 2019 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 2Q19 2Q18 Yr/Yr Sales down 22 percent from 2Q18, driven Net Sales $1,408 $1,816 ($408) primarily by lower volumes of Ti-Pure™ pigment and illegal imports of HFC Net Income1 96 282 (186) refrigerants into
Slide 8: Adjusted EBITDA Bridge: 2Q19 versus 2Q18
Adjusted EBITDA Bridge: 2Q19 versus 2Q18 ($ in millions unless otherwise noted) • Stable global TiO2 price Positive Impact • Lower refrigerant prices in North America and Europe primarily due Negative Impact to illegal imports of HFC refrigerants into Europe 600 ($14 ) 500 • Lower cost partially off
Slide 9: Adjusted EPS Bridge: 2Q19 versus 2Q18
Adjusted EPS Bridge: 2Q19 versus 2Q18 ($ per share unless otherwise noted) 2.5 Positive Impact Negative Impact 2 1.5 ($1.06) 1 $0.07 $1.71 0.5 $0.72 0 2Q18 Adjusted AOI Net Change Sharesin 2Q19 Income Diluted Shares1 See reconciliation of Non-GAAP measures in the Appendix 1 Based on average diluted
Slide 10: Liquidity Position
Liquidity Position June 30, 2019 ending cash balance of ($ in millions unless otherwise noted) $630M Negative Impact 2Q19 capital expenditures of $124M 1400 Positive Impact 2Q19 dividends and share repurchases of $108M 1200 Other includes $150M drawn on revolver in Q219 1000 Total Liquidit
Slide 11: Fluoroproducts Business Summary
Fluoroproducts Business Summary Second Quarter Highlights 2019 Outlook Commentary Improved operating performance, including the start-up of Expect continued Opteon™ refrigerant adoption in mobile the Corpus Christi Opteon™ facility applications, despite auto softness Continued impact of illega
Slide 12: Chemical Solutions Business Summary
Chemical Solutions Business Summary Second Quarter Highlights 2019 Outlook Commentary Experienced lower volumes primarily in Performance Expect Mining Solutions demand to remain strong, with Chemicals & Intermediates, mainly driven by market anticipated seasonality and tight supply dynamics Co
Slide 13: Titanium Technologies Business Summary
Titanium Technologies Business Summary Second Quarter Highlights 2019 Outlook Commentary Experienced lower than expected volume across all Expect demand headwinds to remain through 2H2019 if regions, driven by global economic uncertainty, lower macro uncertainty doesn’t improve coatings volumes,
Slide 14: Updated 2019 Outlook
Updated 2019 Outlook Delivering earnings and cash flow… …While investing to create long-term shareholder value Adjusted EBITDA $1.00 - $1.15 Billion Capex ~$500 Million Adjusted Share EPS $2.37 - $3.08 Repurchases $1 Billion Authorization Changes in Outlook Relative to Guidance Mid-Point1 TT earni
Slide 15: Appendix
The Chemours Company Appendix € Chemours” 15
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions unless otherwise noted) Three Months Ended Three Months June 30, March 31, 2019 2018 2019 SEGMENT NET SALES Fluoroproducts $ 711 $ 801 $ 687 Chemical Solutions 130 153 134 Titanium Technologies 567 862 555 Total Company $ 1,408 $ 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, 2019 2018 2019 $ amounts $ per share* $ amounts $ per share* $ amounts $ pe
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions unless otherwise noted) Period Ended June 30, 2019 2018 Adjusted EBITDA (1) $ 1,321 $ 1,740 Less: Depreciation and amortization (1) (296) (273) Adjusted EBIT 1,025 1,467 Total debt 4,208 3,973 Total equity 829 1,025 Less: Cash and cash equ
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions unless otherwise noted) Three Months Ended June 30, March 31, 2019 2018 2019 Cash flows (used in) provided by operating activities $ 7 $ 343 $ (44) Less: Purchases of property, plant, and equipment (124) (126) (133) Free Cash Flows $ (117) $
Slide 20: 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-related, and o
Slide 21: GAAP Cash Flows Provided by 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 $ ~ 600 Less: Purchases of property, plant, and equipment ~ (500) Free Cash Flows $ ~
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