Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Q1 2016 Earnings Presentation
16 slides from Chemours Company (the)'s earnings presentation, May 3, 2016
Slide 1: First Quarter 2016 Earnings Presentation
The Chemours Company First Quarter 2016 Earnings Presentation May 3, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, which often may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. These forward- looking statements address, among othe
Slide 3: Highlights
Highlights Executing on all aspects of our five-point transformation plan Began implementing TiO2 price increases Announced decision to invest in world-class facility to support growing Opteon™ demand Improved working capital performance, ended quarter with strong cash balance Announced sale of Clea
Slide 4: 1Q16 Overview: First Quarter Financial Summary
1Q16 Overview ($ in millions unless otherwise noted) First Quarter Financial Summary ∆ ∆ 1Q16 1Q15 Yr/Yr 4Q15 Seq. Year-over-year Net Sales $1,297 $1,363 ($66) $1,360 ($63) Financial results lower primarily Adj. EBITDA 128 145 (17) 132 (4) due to lower TiO2 pricing and currency headwinds partially
Slide 5: Adjusted EBITDA Bridge: 1Q16 versus 1Q15
Adjusted EBITDA Bridge: 1Q16 versus 1Q15 Positive Impact ($ in millions) Negative Impact • TiO2 average price • Lower controllable down 16% costs • Lower prices in • Improved operations Chemical Solutions • Reduced raw • TiO2 volume up material pricing 13% ($22) $3 • Higher Opteon™ demand • Lower re
Slide 6: Adjusted EBITDA Bridge: 1Q16 versus 4Q15
Adjusted EBITDA Bridge: 1Q16 versus 4Q15 Positive Impact ($ in millions) Negative Impact • TiO2 price down <1% • Lower raw • Lower Fluoropolymers material costs pricing • Lower Chemical Solutions pricing $17 ($12) ($6) ($19) $16 - • Technology and licensing • Opteon™ growth activity in Q4 $132 • Inc
Slide 7: Liquidity Position
Liquidity Position ($ in millions) Positive Impact Negative Impact Free Cash Flow of ($53M) or ($29) ($219M) excluding DuPont $74 prepayment benefit versus ($60) ($375M) in Q1 2015 $51 $127 Quarter-end cash balance of ($89) $435M reflecting improved working capital performance, DuPont pre- ($5)
Slide 8: Titanium Technologies Business Summary
Titanium Technologies Business Summary First Quarter Highlights Outlook Commentary Volume consistent with seasonal and historic Encouraged by early start to North American trend coatings season Began implementing price increase announced Price increase implementation ongoing in December 2015
Slide 9: Fluoroproducts Business Summary
Fluoroproducts Business Summary First Quarter Highlights Outlook Commentary Strong market adoption of Opteon™ Continued growth of Opteon™ product line expected to sequentially ramp up with strong Seasonally lower refrigerant volumes partially second half anticipated offset by additional partic
Slide 10: Chemical Solutions Business Summary
Chemical Solutions Business Summary First Quarter Highlights Outlook Commentary Beaumont aniline sale completed Sulfur remains under strategic evaluation Continued cost reductions Anticipate C&D transaction to close in second half of the year Lower pricing driven by lower input costs Gro
Slide 11: Progress on Transformation Plan
Progress on Transformation Plan ($ in millions) Cost Reduction Progress Other Transformation Activity Portfolio Optimization $350M – Closed sale of Aniline facility Incremental to ~$450M – Began Shutdown process for Niagara 2015 RMS site – Implementing improvement plan for ~$300M Methylamines busi
Slide 12: 2016 Outlook Reaffirmed
2016 Outlook Reaffirmed 2016 Adjusted EBITDA Expected to be Greater than 2015, including $200M of Transformation Savings, Generating Modestly Positive Free Cash Flow Key Factors Influencing 2016 Performance: Market Factors Chemours Initiatives • TiO2 price • Cost reductions • Currency • Workin
Slide 13: Appendix
¢ Chemours” Appendix ~
Slide 14: GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations
GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income Reconciliations ($ in millions unless otherwise noted) Three months ended March 31, December 31, 2016 2015 2015 Net income (loss) attributable Chemours $ 51 $ 43 $ (86) Non‐operating pension and other postretirement employee benefit c
Slide 15: Segment Net Sales and Adjusted EBITDA (unaudited)
Segment Net Sales and Adjusted EBITDA (unaudited) ($ in millions unless otherwise noted) Three months ended March 31, December 31, 2016 2015 2015 SEGMENT NET SALES Titanium Technologies $ 521 $ 545 $ 589 Fluoroproducts 531 552 515 Chemical Solutions 245 266 256 Total Company $ 1,297 $ 1,363 $ 1,360
Slide 16: ©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2015 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company 15