Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q2 2021 Earnings Presentation
23 slides from Chemours Company (the)'s earnings presentation, Jul 30, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation July 30, 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: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Continued build on Q1 momentum to achieve 3rd highest quarterly sales in CC history Delivered strong operating performance despite supply chain challenges Executed definitive agreement to sell Mining Solutions business for $520 million Expect Adjusted 2021 EBITDA and A
Slide 4: 2020 Corporate Responsibility Commitment Report
2020 Corporate Responsibility Commitment Report Chemistry that’s SHARED PLANET responsible and essential. INSPIRED PEOPLE EVOLVED PORTFOLIO 4
Slide 5: Progress Against Commitments
Progress Against Commitments SHARED PLANET INSPIRED PEOPLE EVOLVED PORTFOLIO FOC* Emissions GHG** Emissions Diversity & Inclusion Revenue from UN SDGs Water 52% 29% 44% 69% female executive of the way to reduced against our leadership***, up from Air 48% 2018 baseline 13% in 2018 our goal reduced ag
Slide 6: Second Quarter 2021 Financial Summary
Second Quarter 2021 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year Net sales of $1.7 billion increased 51% vs. the ∆ prior-year second quarter, reflecting strength 2Q21 2Q20 in the recovery and demand momentum from Yr/Yr Q1 Net Sales $1,655 $1,093 $562 GAAP EPS of $0.39.
Slide 7: Additional Detail on Second Quarter Charges
Additional Detail on Second Quarter Charges $25 million charge associated with settlement of Delaware natural resource damages claims. Cash payment expected in third quarter $169 million change in estimate related to legacy on-site environmental remediation at Fayetteville, added back to arrive
Slide 8: Adjusted EBITDA Bridge: 2Q21 versus 2Q20
Adjusted EBITDA Bridge: 2Q21 versus 2Q20 ($ in millions unless otherwise noted) Positive Impact Negative Impact • Higher Ti-Pure™ pigment volumes • Higher operating costs to support demand • Increased HFO adoption • Higher variable costs, primarily due to TiO2 ore mix and supply chain disruptions •
Slide 9: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) 1400 Negative Impact Positive Impact June 30, 2021 ending cash balance of $1,139M, up $131M ($110) ($67) from prior quarter 1200 ($55) 2Q21 capital expenditures of $67M $256 ($23) $20 2Q21 dividends of $42M and $13M share repurchases 10
Slide 10: Titanium Technologies Business Summary
Titanium Technologies Business Summary Second Quarter Highlights Outlook Delivered strong volume growth; strength across all Expecting return to typical seasonal patterns across 2021 regions and end-markets Our relationship with contracted customers is at the core of Improved pricing with po
Slide 11: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary Second Quarter Highlights Outlook Sales improvement driven by demand recovery in all Expect continued market recovery and typical seasonal markets and all regions partially offset by previously patterns in the second half communicated contractual
Slide 12: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary Second Quarter Highlights Outlook Continued momentum from Q1; delivered highest quarterly Anticipate strong customer demand to continue throughout segment sales and Adjusted EBITDA in Chemours history 2021 led by Electronics/Communications, Industr
Slide 13: Chemical Solutions Business Summary
Chemical Solutions Business Summary Second 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 Sodium cyanide remained in sold out position throug
Slide 14: 2021 Guidance Update – Adjusted EBITDA & EPS to Top End of Range
2021 Guidance Update – Adjusted EBITDA & EPS to Top End of Range Adjusted EBITDA $1.10 - $1.25 Billion Capex ~$350 Million Unchanged Up 34% from 2020 at the mid-point Adjusted Cash to EPS ~$2.84 - $3.56 Shareholders The majority of our free cash Up ~$1.22/share from 2020 at the mid-point Key Factors
Slide 15: Appendix
The Chemours Company Appendix € Chemours”
Slide 16: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended June 30, March 31, 2021 2020 2021 SEGMENT NET SALES Titanium Technologies $ 859 $ 488 $ 723 Thermal & Specialized Solutions 340 231 304 Advanced Performance Materials 362 292 333 Chemical Solution
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, 2021 2020 2021 $ amounts $ per share* $ amounts $ per share* $ amounts $ pe
Slide 18: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Twelve months Ended June 30, 2021 2020 Adjusted EBITDA (1) $ 1,090 $ 898 Less: Depreciation and amortization (1) (321) (315) Adjusted EBIT $ 769 $ 583 ($ in millions) As of June 30, 2021 2020 Total debt $ 3,989 $ 4,346 Total equity 900 65
Slide 19: Free Cash Flows Reconciliations (Unaudited)
Free Cash Flows Reconciliations (Unaudited) ($ in millions) Three Months Ended June 30, March 31, 2021 2020 2021 Cash flows provided by operating activities $ 256 $ 111 $ 39 Less: Purchases of property, plant, and equipment (67) (61) (60) Free Cash Flows $ 189 $ 50 $ (21) 19
Slide 20: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of June 30, ($ in millions) 2021 2020 Total debt principal $ 4,020 $ 4,380 Less: Cash and cash equivalents (1,139) (1,031) Total debt principal, net $ 2,881 $ 3,349 Twelve months Ended June 30, ($ in millions) 2021 2020 Adjusted EBITDA (1) $ 1,090 $ 898 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: ©2021 The Chemours Company trademarks notice
23 ©2021 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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