Chemours Company (the) · NYSE:CC
Chemours Company (the) — The Chemours Company — Investor Presentation (June 2015)
25 slides from Chemours Company (the)'s investor presentation, June 2015
Slide 1: The Chemours Company Investor Presentation June 2015
The Chemours Company Investor Presentation June 2015
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain supplemental measures of performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). Such measures should not be considered as replacements of GAAP. Further information w
Slide 3: Separation Update
Separation Update Exchange / Ticker NYSE: CC When-issued trading date: June 19, 2015 Record date: June 23, 2015 Key Dates Distribution date: July 1, 2015 Regular-way trading date: July 1, 2015 Distribution Ratio 1 share of CC for every 5 shares of DD; cash for fractional shares Tax-fre
Slide 4: Today's Presenters from Chemours
Today’s Presenters from Chemours Mr. Vergnano has been Executive Vice President at DuPont responsible for businesses in the Performance Chemicals segment since 2009 Prior to his current role, Mr. Vergnano held leadership positions at DuPont Mark Vergnano Nonwovens, DuPont Surfaces & Building Inn
Slide 5: Why Chemours?
Why Chemours? Undisputed global leader in titanium dioxide (TiO2) and fluoroproducts Global Market Leader with Premier Proprietary products and brands to drive above-average growth Cost Position Low cost position provides stability through the trough Titanium Technologies – Altamira expansio
Slide 6: The Chemours Company at a Glance
The Chemours Company at a Glance 2014 Sales: $6,432 2014 Adj. EBITDA: 895 % margin: 14% Titanium Technologies Fluoroproducts Chemical Solutions Sales: $2,937 Sales: $2,327 Sales: $1,168 Adj. EBITDA: 759 Adj. EBITDA: 330 Adj. EBITDA: 29 % margin: 26% % margin: 14% % margin: 2% Titanium dioxide (TiO
Slide 7: Titanium Technologies Business Overview
Titanium Technologies Business Overview TT Business Overview Chemours is #1 in TiO2 Globally(2) Global leader in TiO2 with production capacity of 18% 1.4 million metric tons(1) − 5 TiO2 plants with 8 production lines(1) 14% − Packaging facility at Kallo, Belgium 11% − Mineral sands mine at Starke,
Slide 8: World Class Assets with Industry-Leading TiO2 Cost Structure
World Class Assets with Industry-Leading TiO2 Cost Structure TT Industry Cost Structure Global Industry Weighted Average Feedstock Prices Chinese /Other Producers Other Multinational Companies ($ / metric ton) $2,000 $2,000 Rutile 140% 120% $1,600 $1,600 Synthetic 100% Rutile Contained 80% $1,200 Ti
Slide 9: Altamira Expansion Provides Meaningful Upside
Altamira Expansion Provides Meaningful Upside TT Project Status Expansion Value Proposition 200,000 metric ton capacity expansion at One of the lowest cost production lines globally Altamira, Mexico facility Adds low-cost capacity and provides incremental fixed cost leverage Production sched
Slide 10: TiO2 Market Environment
TiO2 Market Environment TT Global TiO2 Capacity, Demand, Utilization Rate Producer Days of Sales of Inventory(1) Capacity Demand Utilization Rate (End of Year) 94% 85 86 89% 86% 83% 82% 82% 72% 79% 66 Capacity & Demand (kMT) 61 61 58 54 54 51 2007 2008 2009 2010 2011 2012 2013 2014E Q3'12 Q4'12 Q1'1
Slide 11: Fluoroproducts Business Overview
Fluoroproducts Business Overview F-P F-C Business Overview Chemours is #1 in Fluoroproducts Globally(2) Supplies products for high performance 22% Fluorochemicals 17% 17% applications across broad array of industries #1 in Fluoroproducts globally 8% 7% − Fluorochemicals: #1 in refrigerants, #1 i
Slide 12: Established Technology Innovation and Margin Enhancement
Established Technology Innovation and Margin Enhancement F-P F-C 2000 & 1930s 1970s 1987 1990s 2010s Beyond DuPont DuPont identifies Montreal Protocol DuPont DuPont introduces ISCEON® HFC 2011 – First commercializes HFC as a CFC details phase out of commercializes blends as drop-in repla
Slide 13: Chemical Solutions Overview
CS Chemical Solutions Overview Overview Chemical Solutions Portfolio Diverse portfolio of industrial and specialty Market leadership businesses primarily operating in the Americas Cyanides Favorable end market dynamics Sulfur Products Selective, high-return investment Unmatched reputation
Slide 14: Multiple Organic Growth Opportunities
Multiple Organic Growth Opportunities Segment Project Comments Titanium Altamira Expansion (~85% of capital Expected to start up Technologies spending completed prior to spin) mid-2016 Growth expected to accelerate Fluoroproducts Opteon® – Next-generation refrigerant through 2017 Chemical Solutions
Slide 15: Attractive Margins Throughout the Cycle
Attractive Margins Throughout the Cycle Performance Chemicals Segment as Historically Reported ($ in millions) $2,426 Generated substantial $2,118 EBITDA(1) in industry downturn $1,521 30% 28% $1,268 $1,179 23% $949 $888 18% 18% 17% 15% 2008 2009 2010 2011 2012 2013 2014 Performance Chemicals Operat
Slide 16: Historical Financial Performance
Historical Financial Performance Sales and Growth Adjusted EBITDA and Margin(1) ($ in millions) ($ in millions) (8%) (7%) (6%) 28% 26% 14% 14% $7,972 $7,365 $6,859 $2,223 $1,464 $6,432 $1,515 $1,883 $1,461 $1,168 $112 $2,834 $688 $116 $2,559 $539 $982 $2,379 $2,327 $895 $96 $330 $29 $1,622 $377 $3,6
Slide 17: Q1 2015 Recent Developments
Q1 2015 Recent Developments Q1 2015 Recent Developments 1Q15 sales for Chemours down 13% versus 1Q14; 1Q15 EBITDA down 28% versus 1Q14 − Lower volume and prices combined with the negative currency impact, primarily in the Euro-USD rate − Total demand for Fluorochemicals was up slightly versus the
Slide 18: Chemours Capitalization
Chemours Capitalization Capitalization – Day 1 Other Liabilities ($ in millions) Cash and Cash Equivalents $ 200 No U.S. pension or OPEB plans(2) Term Loan $ 1,500 Minimal unfunded non-U.S. pension liability Senior Notes Other liabilities are well understood, well- 8-Year USD $ 1,350 managed a
Slide 19: Focus on Free Cash Flow Generation
Focus on Free Cash Flow Generation Initiative Action Significant Productivity Headcount Rationalization / Operational Improvements Cost Reductions Evaluate and Fix or Exit Portfolio Optimization Unprofitable Businesses 2014 Capital Expenditure: $615 million Reduced Capital Normalized Capital Expendi
Slide 20: Disciplined Capital Deployment Strategy
Disciplined Capital Deployment Strategy De-lever • Repay debt to strengthen credit position Invest/Grow • Select investments to reduce cost structure, enhance portfolio and drive organic growth • Fund strategic capital investments with free cash flow and portfolio actions Return Cash to Shareholders
Slide 21: Why Chemours?
Why Chemours? Undisputed global leader in titanium dioxide and fluoroproducts Global Market Leader with Premier Proprietary products and brands to drive above-average growth Cost Position Low cost position provides stability through the trough Titanium Technologies – Altamira expansion Multi
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Performance Chemicals Segment Operating Earnings
Reconciliation of Performance Chemicals Segment Operating Earnings RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions) RECONCILIATION OF SEGMENT PRE-TAX OPERATING INCOME (PTOI) TO OPERATING EARNINGS AND SEGMENT ADJUSTED EBITDA Year Year Year Year Year Year Year 2008 2009 2010 2011
Slide 24: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions) RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME STATEMENTS Year Year Year 1Q15 2014 4Q14 3Q14 2Q14 1Q14 2013 2012 Income Before Income Taxes $58 $550 $120 $142 $156 $132 $576 $1,485 Add:
Slide 25: ©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 24
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