Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q4 2020 Earnings Presentation
27 slides from Chemours Company (the)'s earnings presentation, Feb 12, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Presentation
Fourth Quarter and Full Year 2020 Earnings Presentation February 12, 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: Full Year 2020 Highlights
Full Year 2020 Highlights Executed COVID-19 response plan and delivered excellent operating performance Building momentum on the success of our Ti-Pure™ Value Stabilization strategy Delivered strong free cash flow and extended debt maturities; ended year with strong liquidity Announced legacy PFAS a
Slide 4: Ed Sparks to Build on Bryan Snell's Legacy of Leadership
Ed Sparks to Build on Bryan Snell’s Legacy of Leadership Bryan Snell to retire after Ed Sparks to lead Titanium 40+ year career in nuclear, Technologies to future polymer intermediates, and growth TiO2 segments A seasoned leader with two decades of experience with DuPont As President of Chemours Tit
Slide 5: Chemours Fluoroproducts Split into Two Segments
Chemours Fluoroproducts Split into Two Segments Thermal & Specialized Solutions Advanced Performance Materials led by Alisha Bellezza led by Denise Dignam 20+ years of experience in the chemical and financial sector Seasoned chemicals industry leader with 30 years of diverse commercial experience •
Slide 6: Full-Year 2020 Financial Summary
Full-Year 2020 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ Sales of $5.0 billion dollars, down 10 2020 2019 Yr/Yr percent from 2019 due to the economic disruption caused by COVID-19 Net Sales $4,969 $5,526 ($557) pandemic. Net Income1 $219 ($52) $271 EPS of $1.32, u
Slide 7: Fourth Quarter 2020 Financial Summary
Fourth Quarter 2020 Financial Summary ($ in millions unless otherwise noted) ∆ Year-Over-Year 4Q20 4Q19 Yr/Yr Net sales of $1.3 billion was essentially flat Net Sales $1,337 $1,353 ($16) to last year’s fourth quarter, reflecting strength in the recovery and demand Net Income1 $19 ($317) $336 momen
Slide 8: Adjusted EBITDA Bridge: 4Q20 versus 4Q19
Adjusted EBITDA Bridge: 4Q20 versus 4Q19 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Lower TiO2 pricing; largely a result • Higher Ti-Pure™ pigment volumes • Productivity gains in APM and benefits 600 of changes made in 2019 • Increased HFO adoption, particularly in blen
Slide 9: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) 1400 Negative Impact ($53) Positive Impact ($41) 1200 December 31, 2020 ending cash ($110) $353 balance of $1,105M, up $149M from prior quarter 1000 4Q20 capital expenditures of $53M 800 4Q20 dividends of $41M 600 Other primarily driv
Slide 10: Thermal & Specialized Solutions' Innovation Led Growth Drives a More Sustainable Planet
Thermal & Specialized Solutions’ Innovation Led Growth Drives a More Sustainable Planet HFOs are the future of thermal management Attractive growth drives solid cash generation Category leadership in next-generation technology • Co-developed HFO technology • Advantaged process technology at Corpus C
Slide 11: Advanced Performance Materials Provide Solutions For the Emerging Technologies That Move Society Forward
Advanced Performance Materials Provide Solutions For the Emerging Technologies That Move Society Forward Strong Value Proposition Levers to Drive Performance Improvement Significant margin enhancement opportunity from 2020 trough • Sales recovery underway; long-term attractive growth expectations •
Slide 12: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter and Full-Year Highlights Titanium Technologies Outlook Ti-Pure™ volumes increased substantially qoq & yoy in 4Q Improving economic recovery driving incremental demand as demand recovery across all geographies, end-markets, Anticipate contin
Slide 13: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary Fourth Quarter and Full-Year Highlights Thermal & Specialized Solutions Outlook COVID-19 impacted end-market demand, particularly in the Expanding market access in the growing auto aftermarket and automotive sector. Sales rebounded in the second h
Slide 14: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary Fourth Quarter and Full-Year Highlights Advanced Performance Materials Outlook COVID-19 negatively impacted demand across nearly all Driving productivity and cost management end-markets and geographies in the year. Improving operating performance
Slide 15: Chemical Solutions Business Summary
Chemical Solutions Business Summary Fourth Quarter and Full-Year Highlights Chemical Solutions Outlook Continued sequential quarterly improvement in Mining Continued strong Glycolic Acid market demand; anticipate Solutions volumes, with December sales the highest in 2020 sustained momentum Ach
Slide 16: 2021 Guidance
2021 Guidance Adjusted EBITDA $1.00 - $1.15 Billion Capex ~$350 Million Up 22% from 2020 at the mid-point Adjusted Cash to EPS ~$2.40 - $3.12 Shareholders The majority of our free cash Up ~$0.78/share from 2020 at the mid-point Key Factors and Assumptions1 Free Expect improving global economic act
Slide 17: 2021 Capital Expenditures Breakdown
2021 Capital Expenditures Breakdown ($ in millions) 400 350 ~$75 300 250 ~$75 200 ~$350 150 100 ~$200 50 0 Run and Maintain Growth Regulatory/Sustainability Total 17
Slide 18: Moving Forward
Moving Forward Created a durable enterprise through the transformation of the business, portfolio, and culture Invested in differentiated capabilities and business models to the benefit of all stakeholders Created resilient & agile management philosophy that delivers in every business environment Re
Slide 19: Appendix
The Chemours Company Appendix € Chemours”
Slide 20: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended Year Ended December 31, September 30, December 31, 2020 2019 2020 2020 2019 SEGMENT NET SALES Titanium Technologies $ 691 $ 610 $ 612 $ 2,402 $ 2,345 Thermal & Specialized Solutions 272 290 293 1,
Slide 21: 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 Year Ended December 31, September 30, December 31, 2020 2019 2020 2020 2019 $ amounts $ per sh
Slide 22: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Year Ended December 31, 2020 2019 Adjusted EBITDA (1) $ 879 $ 1,020 Less: Depreciation and amortization (1) (320) (311) Adjusted EBIT $ 559 $ 709 ($ in millions) As of December 31, 2020 2019 Total debt $ 4,026 $ 4,160 Total equity 815 695
Slide 23: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended Year Ended December 31, September 30, December 31, 2020 2019 2020 2020 2019 Cash flows provided by operating activities $ 353 $ 400 $ 299 $ 807 $ 650 Less: Purchases of property, plant, and equipment (53) (96) (47) (267)
Slide 24: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of December 31, 2020 2019 Total debt principal $ 4,061 $ 4,196 Less: Cash and cash equivalents 1,105 943 Total debt principal, net $ 2,956 $ 3,253 Year Ended December 31, 2020 2019 Adjusted EBITDA (1) $ 879 $ 1,020 Net Leverage Ratio 3.4x 3.2x (1) See the reconcilia
Slide 25: 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 Ending December 31, 2021 Low High Net income attributable to Chemours $ 386 $ 508 Transaction costs 17 17
Slide 26: Estimated GAAP Cash Flows from Operations to Free Cash Flows Reconciliations
Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flows Reconciliations (Unaudited) ($ in millions) (Estimated) Year Ending December 31, 2021 Cash provided by operating activities $ >700 Less: Purchases of property, plant, and equipment ~(350) Free Cash Flows $ >350 The Company
Slide 27: ©2021 The Chemours Company trademarks notice
27 ©2021 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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