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Investor Presentation December 2019
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Page 1: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Investor PresentationDecember 2019

Page 2: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Safe Harbor Statement and Other Matters

2

This presentation contains forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of1995, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions andinclude any statement that does not directly relate to a historical or current fact. The words "believe," "expect," “will,” "anticipate," "plan," "estimate," "target,""project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date such statements were made.These forward-looking statements may address, among other things, the outcome or resolution of any pending or future environmental liabilities, thecommencement, outcome or resolution of any regulatory inquiry, investigation or proceeding, the initiation, outcome or settlement of any litigation, changes inenvironmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, anticipated future operating and financialperformance, business plans, prospects, targets, goals and commitments, capital investments and projects, plans for dividends or share repurchases,sufficiency or longevity of intellectual property protection, cost savings targets, plans to increase profitability and growth, our ability to make acquisitions,integrate acquired businesses or assets into our operations, and achieve anticipated synergies or cost savings, and our outlook for net sales, AdjustedEBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow, Adjusted Effective Tax Rate, and Return on Invested Capital (ROIC), all of which are subjectto substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-lookingstatements are based on certain assumptions and expectations of future events that may not be accurate or realized. These statements are not guarantees offuture performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. Additionally, there may be other risksand uncertainties that Chemours is unable to identify at this time or that Chemours does not currently expect to have a material impact on its business.Factors that could cause or contribute to these differences include the risks, uncertainties and other factors discussed in our filings with the U.S. Securitiesand Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2018. Chemours assumes no obligation to reviseor update any forward-looking statement for any reason, except as required by law.

We prepare our financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Within this presentation we may make referenceto Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Effective Tax Rate, Free Cash Flow, ROIC and Net LeverageRatio which are non-GAAP financial measures. The company includes these non-GAAP financial measures because management believes they are useful toinvestors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decisionmaking. Further information with respect to and reconciliations of such measures to the nearest GAAP measure can be found in the appendix hereto.

Management uses Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Effective Tax Rate, Free Cash Flow, ROIC andNet Leverage Ratio to evaluate the company’s performance excluding the impact of certain noncash charges and other special items which we expect to beinfrequent in occurrence in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter.

Additional information for investors is available on the company’s website at investors.chemours.com.

Page 3: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

industry-leading positions to drive top-line growth of 1x-2x GDP

in our core businesses with high ROIC (+30%) projects to drive sustainable competitive advantage

our existing businesses through targeted M&A

the majority of our Free Cash Flow to shareholders over time through a growing dividend and meaningful share repurchases

the energy of the organization, generated through the transformation, to move at high velocity

Leveraging

Investing

Strengthening

Returning

Harnessing

3

Chemours Investment Thesis

Page 4: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

The Chemours Company at a Glance

4

Fluoropolymers24%

Fluorochemicals24%

Performance Chemicals & Intermediates

5%

Mining Solutions

5%

Titanium Dioxide42%

Product1

North America 39%

Asia Pacific 27%

EMEA22%

Latin America12%

Geography1

See reconciliation of Non-GAAP measures in the appendix

Source: Company filings and data1. Data represents net sales for the trailing twelve months ending September 30t, 2019

Chemical Solutions Titanium Technologies($ in millions)

$68

12%0%

10%

20%

30%

40%

50%

60%

70%

0

50

100

150

200

250

300

TTM 3Q19

$553

0100200300400500600700800900

TTM 3Q19

$589

25%0%10%20%30%40%50%60%70%80%

- 200 400 600 800

1,000 1,200 1,400

TTM 3Q19

$2,402

0

500

1000

1500

2000

2500

3000

3500

TTM 3Q19

$625

23% 0%

20%

40%

60%

80%

100%

120%

140%

0200400600800

100012001400160018002000

TTM 3Q19

$2,683

0

500

1000

1500

2000

2500

3000

TTM 3Q19

Fluoroproducts

$ 1,134

20%

0%

10%

20%

30%

40%

50%

60%

-

500

1,000

1,500

2,000

2,500

3,000

TTM 3Q19

$5,638

0

1000

2000

3000

4000

5000

6000

7000

TTM 3Q19

Total ChemoursAdjusted EBITDA

Adjusted EBITDA MarginNet Sales

Adjusted EBITDA MarginNet Sales

Adjusted EBITDA MarginNet Sales

Adjusted EBITDA MarginNet Sales Adjusted EBITDA Adjusted EBITDAAdjusted EBITDA

Fluoroproducts48%Chemical

Solutions10%

Page 5: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

5

Fluoroproducts Business Summary

5

BUSINESS OVERVIEW• Global market leader in Fluoroproducts• Supplies fluoropolymer products for high performance

applications across broad array of industries• Supplies fluorochemical products for air conditioning, refrigeration

and foam blowing agent markets• Brands: Teflon™, Freon™, Opteon™, Krytox™, Nafion™, Viton™

Fluoropolymers – industrial resins and specialty products and coatingsFluorochemicals – refrigerants, propellants, foam blowing agents, fire suppressantsKey end markets – air conditioning, refrigeration, automotive, electronics, communications, wire & cable, energy, consumer, oil & gas, aerospace

FINANCIAL SUMMARY

See reconciliation of Non-GAAP measures in the appendix

Source: Company filings and data1. Segment net sales on a trailing twelve-month basis ending September 30, 2019

Fluoropolymers50%

Fluorochemicals50%

Product1

North America 41%

Asia Pacific 25%

EMEA26%

Latin America8%

Geography1

$ Millions TTM3Q18

TTM3Q19 % Δ

Revenue $2,871 $2,683 (7%)

Adjusted EBITDA $777 $625 (20%)

Adj. EBITDA Margin 27% 23% (400bps)

Page 6: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

6

Fluorochemicals Long-Term Market View

Chemours Is Well Positioned to Capture Market Growth and Value for Both HFOs and Non-HFOs

Page 7: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Stationary Market Breakdown

7

Attractive Growth in Stationary Markets Expected over Next Decade

Source: Industry trade publications, company disclosures, and company estimatesNote: CAGRs are based upon non-rounded company estimates

REVENUE

$0.3B 88% CAGR5% CAGR

$0.8B

C H I L L E R S ~$0.0B

~$0.3B~$XM

A I R C O N D I T I O N I N G

133% CAGR6% CAGR

$4.1B$2.3B~$0.0B

~$0.7B

~$1.05B

~$0.5B

2016 2025

Non-HFOs HFOs

C O M M E R C I A L R E F R I G E R AT I O N

$1.1B35% CAGR(8%) CAGR $1.2B

~$2.3B

~$0.05B

~$0.2B

~$4.0B~$0.3B

~$0.5B

~$1.05B

~$3.9B

Page 8: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Opteon™ Advantage - CO2 Equivalent Basis

8

Opteon™ Offers Low GWP Alternatives that Meet Tightening Environmental Standards

Source: UN IPCC Fifth Assessment Report and Company estimates

Page 9: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Opteon™ Patent Estate

9

• Our multinational portfolio includes nearly 900 patents and pending applications on HFO technology, including compositions, uses and processes of manufacture

• The earliest patents on HFO technology are expected to expire in the mid-2020’s– We continue to add to our patent

application estate• Chemours actively monitors for patent

infringement and will vigorously assert its rights under these patents, including seeking damages and injunctions to stop infringement

The Size and Scope of Our Portfolio Means Loss of Coverage from Any One Single Patent Will Not Significantly Affect Our Market Position

First Opteon™ patent expirations expected2026

2030sHundreds of Opteon™ patents remain in full force

First HFO patent expirations expected2023

Page 10: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Fluoropolymers Target Markets for Application Development

10Sources: McKinsey; Bain; IHS BCC, US Department of Energy, Chemours sales data and market forecasting

* $ Millions; Addressable market size based on current applications, ingredient sales only

2016 Market Size*

2016 - 2027CAGR

2027Market Size* Trends and Fluoropolymer Opportunities

$1,100

$105

$910

5%

21%

9%

$1,900

$850

$2,300

• Emission standards and fuel efficiency with internal combustion engines

• Decarbonization of transportation via alternative energy

• Active safety and infotainment

• Development of smart grid with increasing amount of renewable energy and energy storage

• Government and OEM driven alternative energy vehicles

• Growth and innovation in smart phones, wearables, IoT, artificial intelligence, etc.

• Next generation connectivity (5G), advances in circuit boards, LAN, antennas, thermal and electrical shielding

Page 11: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

11

Strong Pipeline Build Since Announcing Application Development in December 2017

Energy

Automotive

Consumer Electronics & Communication

Recent Wins and Our Application Development Pipeline

DATA CENTERS

USB-C CABLES

MOBILE DEVICEANTENNAS

HYBRID VEHICLES

ENERGY STORAGE

* Quarterly numbers based on three month average

Page 12: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

12

Chemical Solutions Business Overview

12

FINANCIAL SUMMARY

Mining Solutions – sodium cyanide, hydrogen cyanidePerformance Chemicals & Intermediates –methylamines, glycolic acid, Vazo™ products, aniline, nitrobenzene

Mining Solutions

50%

Performance Chemicals & Intermediates

50%

Product1North

America 59% Asia Pacific

12%EMEA4%

Latin America25%

Geography1

BUSINESS OVERVIEW• Portfolio of industrial businesses primarily operating in the

Americas• Reputation for safety, reliability and stewardship• Three production facilities located in North America

– Memphis, TN: Mining Solutions– Belle, WV: PC&I– Pascagoula, MS: PC&I

See reconciliation of Non-GAAP measures in the appendix

Source: Company filings and data1. Segment net sales for the trailing twelve months ending September 30, 2019

$ Millions TTM 3Q18

TTM 3Q19 % Δ

Revenue $586 $553 (6%)

Adjusted EBITDA $71 $68 (4%)

Adj. EBITDA Margin 12% 12% 0bps

Page 13: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

13

Titanium Technologies Business Overview

13

FINANCIAL SUMMARYBUSINESS OVERVIEW• A global leader1 in TiO2 with production capacity of 1.25 million

metric tons– 4 TiO2 plants with 7 production lines– Packaging facility at Kallo, Belgium– Mineral sands mine at Starke, FL

• Strong brand reputation– Ti-Pure™ sold to approximately 600 customers globally

• Industry-leading manufacturing cost position– Unique chloride technology – Feedstock flexibility

Coatings – architectural, industrial, automotivePlastics – rigid/flexible packaging, PVC pipe/windowsPapers – laminate papers, coated paper/paperboard, sheet

Laminates & Paper10%

Coatings67%

Plastics23%

Product2

North America 31%

Asia Pacific 33%

EMEA22%

Latin America14%

Geography3

See reconciliation of Non-GAAP measures in the appendix

Source: Company filings and data1. TiO2 market share statistics based on production capacity per 2017 TZMI

2. Segment net sales for the three months ending September 30, 2019; excludes non-TiO2 sales3. Segment net sales for the trailing twelve months ending September 30, 2019; excludes non-TiO2 sales

$ Millions TTM 3Q18

TTM 3Q19 % Δ

Revenue $3,292 $2,402 (27%)

Adjusted EBITDA $1,118 $589 (47%)

Adj. EBITDA Margin 34% 25% (900bps)

Page 14: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

14

Ti-Pure™ Value Stabilization

CHEMOURS’ VISION• We absorb the demand variance in our

customers’ marketplace, while holding value-based pricing for Ti-Pure™ products

• Reduced business volatility stabilizes Chemours’ cash generation and enables more consistent capacity planning to serve our customers

• We can support and grow our investment in new offerings over time, enhancing growth option for our customers

• Our customers can focus their efforts on market growth and avoid the distracting seesaw of “can I get the TiO2 I need?” or “how high will the price go?”

CHEMOURS’ APPROACH• Create contractual relationships which support a more

stable customer-Chemours relationship• Improve our manufacturing flexibility and capacity to

economically respond to both decreases and increases in our customers’ sales which vary their requirements for Ti-Pure™ TiO2

• Deliver value from a sustained investment in market insights and new offering development

Manufacturing& Supply

Assurance New

Ti-Pure™ Commercial Framework(AVA + Flex)

New Offerings

ChemoursTi-Pure™

Value Stabilization

(TVS)

Ti-Pure™ Value Stabilization is Expected to Reduce Volatility for Chemours and Provide More Predictability for our Customers

Page 15: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Value to Customers

• Predictable pricing enables improved supply chain planning

• Reduces need to build and hold excess inventory

• Provides volume certainty over time

Value to Chemours

• Provides more stable earnings

• Enhances ability to plan for capacity adds to meet growing customer demand

• Allows for investments in new offerings to better support customers’ needs

Ti-Pure™ Value Stabilization is a Win-Win

15

Page 16: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

2019 Outlook1

AdjustedEBITDA $1.00 - $1.15 Billion

AdjustedEPS $2.37 - $3.08

1 Subject to risks, uncertainties and assumptions, all of which are described in our public filings and safe harbor statement,

TT earnings impacted by share loss due to weaker market demand and anticipated slower share recovery in the second half of 2019 resulting in a $200M impact

Fluoroproducts Earnings expected to be lower by $125M related to illegal imports

of HFC refrigerants into the EU Operating issues partially offset by productivity and weaker

Fluoropolymer volumes due to market softness in the second half expected to reduce earnings by an additional $75M

Changes in Outlook Relative to Guidance Mid-Point1

See reconciliation of Non-GAAP measures in the Appendix

Free Cash Flow ~$100 Million

16

Capex ~$500 Million

ShareRepurchases $1 Billion Authorization

Delivering earnings and cash flow… …While investing to create long-term shareholder value

Outlook was provided on August 2, 2019 and is not being updated or confirmed at this time

Page 17: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

17

DuPont Lawsuit

• Chemours seeks judgment limiting DuPont’s indemnification to maximums DuPont itself established for

Chemours at spin or, in the alternative, return of the $4B extracted at spin

• Chemours is on solid financial footing, a result of hard choices made by management and the tireless

work of the 7,000 men and women of Chemours

• We remain committed to proactively addressing historical environmental issues handed to us at spin and

being a good partner to the communities we operate in

• We believe our future is bright. Our intention is to preserve and protect the rights of Chemours and all

of our stakeholders

Page 18: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Corporate Responsibility Commitment

18

Page 19: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Clarifying Fluorine Chemistry

PFAS is a broad term encompassing a number of substances produced for a variety of industries and products. Two of these substances, which have been the subject of study and frequent media and public discussion, are PFOS and PFOA

• PFOS and PFOA are the subject of Drinking Water Health Advisories issued by the EPA

• PFOS: Neither Chemours nor DuPont has made or sold PFOS as a commercial product or used PFOS as a processing aid

• PFOA:

• Chemours understands that DuPont made PFOA, from 2002-2013, for use at its own fluoropolymer sites

• Chemours understands that DuPont did not manufacture PFOA as a commercial product

• Chemours has never made or sold PFOA as a commercial product, or used PFOA as a processing aid

• GenX: A processing aid used in the manufacture of some fluoropolymers where PFOA was used previously. Manufactured and recycled at Chemours’ Fayetteville, North Carolina site pursuant to Consent Order with EPA and used to manufacture fluoropolymers. Studies have shown that GenX is not biopersistent in the body.

19

Page 20: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

20

AFFF / Fire-Fighting Foams

• PFOS was the dominant chemistry in the Fire-fighting Foams industry for decades

• Neither Chemours, nor DuPont before it, made or sold PFOS

• Chemours’ potential contribution to PFOA in the environment from our ingredients used in fire-fighting foams is

negligible, if at all

• Chemours has never manufactured or formulated fire-fighting foams

Page 21: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

21

Reconciliations

Page 22: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Segment Net Sales and Adjusted EBITDA (Unaudited)

22

($ in millions) Year EndedDecember 31,

2019 2018 2018

SEGMENT NET SALESFluoroproducts 2,683$ 2,871$ 2,862$ Chemical Solutions 553 586 602 Titanium Technologies 2,402 3,292 3,174

Total Company 5,638$ 6,749$ 6,638$

SEGMENT ADJUSTED EBITDAFluoroproducts 625$ 777$ 783$ Chemical Solutions 68 71 64 Titanium Technologies 589 1,118 1,055 Corporate and Other (148) (172) (162)

Total Company 1,134$ 1,794$ 1,740$

SEGMENT ADJUSTED EBITDA MARGINFluoroproducts 23.3% 27.1% 27.4%Chemical Solutions 12.3% 12.1% 10.6%Titanium Technologies 24.5% 34.0% 33.2%Corporate and Other 0.0% 0.0% 0.0%

Total Company 20.1% 26.6% 26.2%

Twelve Months Ended September 30,

Page 23: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Adjusted EBITDA to GAAP Income (Loss) Before Income Taxes Reconciliation (Unaudited)

23

($ in millions)2018 2017 2016 2015

Income (loss) before income taxes 1,155$ 912$ (11)$ (188)$ Interest expense, net 195 214 219 132 Depreciation and amortization 284 273 284 267 Non-operating pension and other post-retirement employee benefit income (27) (34) (20) (3) Exchange (gains) losses, net (1) (3) 57 (19) Restructuring, asset-related, and other charges 49 57 170 333 Loss (gain) on extinguishment of debt 38 1 (6) — (Gain) loss on sales of assets and businesses (45) (22) (254) 9 Transaction costs 9 3 19 9 Legal charges 82 9 343 8 Other charges 1 12 21 25Adjusted EBITDA 1,740$ 1,422$ 822$ 573$

Year Ended December 31,

Page 24: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Adjusted EBITDA to GAAP Income (Loss) Before Income Taxes Reconciliation (Unaudited)

24

($ in millions)2019 2018

Income before income taxes 513$ 1,236$ Interest expense, net 203 201 Depreciation and amortization 303 281 Non-operating pension and other post-retirement employee benefit income (14) (28) Exchange (gains) losses, net (7) 4 Restructuring, asset-related, and other charges 67 58 Loss on extinguishment of debt — 38 Gain on sales of assets and businesses (11) (53) Transaction costs 1 9 Legal charges 78 46 Other charges 1 2 Adjusted EBITDA 1,134$ 1,794$

Twelve Months Ended September 30,

Page 25: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Estimated GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations (Unaudited)

25

Page 26: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flows Reconciliations (Unaudited)

26

($ in millions unless otherwise noted) (Estimated)Year Ended December 31,

2019Cash provided by operating activities $ ~ 600Less: Purchases of property, plant, and equipment ~ (500)Free Cash Flows $ ~ 100

The Company’s estimates reflect its current visibility and expectations based on market factors, such as currency movements, macro-economic factors, and end-market demand. Actual results could differ materially from these current estimates.

Page 27: Investor PresentationInvestor Presentation December 2019. Safe Harbor Statement and Other Matters 2 This presentation contains forward-looking statements, within the meaning of the

27©2018 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company


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