The Chemours Company (CC) Investor presentation summary

Business overview

• Operates three main segments: Thermal & Specialized Solutions (TSS), Titanium Technologies (TT), and Advanced Performance Materials (APM), each with global reach and strong market positions.

• TSS leads in low global warming potential refrigerants, notably Opteon™, and is expanding capacity and innovation in immersion cooling for data centers.

• TT is a global leader in TiO2 production, focusing on cost leadership and operational excellence, with a transformation plan to improve margins.

• APM offers high-performance materials for diverse industries, targeting growth in clean energy and advanced electronics.

• Revenue is geographically diversified, with North America, EMEA, Asia Pacific, and Latin America all contributing significantly.

Financial performance and segment results

• Generated $5.75B in net sales and $783M in adjusted EBITDA over the trailing twelve months ended September 30, 2024.

• Q3 2024 net sales were $1.5B with $208M in adjusted EBITDA; TT segment EBITDA rose 23% YoY, and Opteon™ refrigerants saw 21% YoY growth.

• TSS segment maintained a 32% EBITDA margin, TT at 12%, and APM at 11% for Q3 2024.

• Q3 2024 saw a net loss of $27M, but adjusted net income was $61M; operating cash flow was $139M.

• Price declines, especially in Freon™ refrigerants, were offset by volume growth in Opteon™ and cost savings from transformation initiatives.

Strategic initiatives and outlook

• Corporate strategy focuses on operational excellence, targeted growth investments, portfolio management, and resolving legacy liabilities.

• Over $250M in cost reductions targeted from 2024 to 2027, with a >5% sales CAGR goal.

• Capital allocation prioritizes growth investments, maintaining leverage below 3.0x, prudent litigation management, and $150M annual dividends.

• Regulatory trends in the US and EU are accelerating adoption of low GWP refrigerants, supporting Opteon™ growth.

• Q4 2024 guidance anticipates sequential declines in net sales and EBITDA due to seasonality, but continued YoY growth in Opteon™ and stable APM EBITDA.