Fluoroproducts PresentationMarch 2018
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 of 1995, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include 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, the commencement, outcome or resolution of any regulatory inquiry, investigation or proceeding, the initiation, outcome or settlement of any litigation, changes in environmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, anticipated future operating and financial performance, business plans and prospects, 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 Adjusted EBITDA, Adjusted EPS and Free Cash Flow, all of which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. Additionally, there may be other risks and 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 Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2017. Chemours assumes no obligation to revise or 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 reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Return on Invested Capital (ROIC) and Net Leverage Ratio which are non-GAAP financial measures. The company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Free Cash Flow is defined as Cash from Operations minus cash used for PP&E purchases. 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 (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, ROIC and Net Leverage Ratio to evaluate the company’s performance excluding the impact of certain noncash charges and other special items which we expect to be infrequent 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.
3
Fluoroproducts Business Summary
3
BUSINESS OVERVIEW
• Supplies fluoropolymer products for high performance
applications across broad array of industries
• Supplies fluorochemical products for air conditioning, refrigeration
and foam blowing agent markets
• Global market leader in Fluoroproducts
• Brands: Teflon™, Freon™, Opteon™, Krytox™, Nafion™, Viton™
Fluorochemicals – refrigerants, propellants,
foam blowing agents, fire suppressants
Fluoropolymers – industrial resins and specialty
products and coatings
Key end markets – air conditioning,
refrigeration, automotive, electronics,
communications, wire & cable, energy, consumer,
oil & gas, aerospace
$ Millions 2016 2017
Revenue $2,264 $2,654
Adjusted EBITDA $445 $669
Adj. EBITDA Margin 20% 25%
FINANCIAL SUMMARY
See reconciliation of Non-GAAP measures in the appendix
Source: Company filings and data
1. Segment net sales on a trailing twelve-month basis ending 4Q17
Competitive Advantage Through Integrated
End-to-End Global Supply Chain
4
Fluorspar
Calcium Fluoride
(CaF2)
Hydrofluoric Acid
(HF)
Hydrochloro-
fluorocarbon 22
(HCFC-22)
Fluorochemical
Intermediates
Sulfuric AcidChlorinated
Solvents
Fluoromonomers
Fluoropolymers
Plastics & Elastomers
Fluorotelomers
Short Chains
Fluorochemicals
Coatings
Resins/Powder
Dispersions
Finishes
Membranes
Gases
Gas Blends
Fluoroproducts Production Footprint
5
Chemours is One of Two Fully Integrated Global Fluoroproducts Producers
Deepwater, NJ
Elkton, MD
Parkersburg, WV
Fayetteville, NC
Louisville, KY
Dordrecht, Netherlands
Villers-Saint-Paul, France
Mechelen, Belgium
El Dorado, AR
La Porte, TX
Corpus Christi, TX
Headquarters:
Wilmington, DE
Shimizu, Japan (JV)
Changshu, China
Shanghai, China (JV)
Sichuan, China (JV)
Maitland, Canada
Chiba, Japan (JV)
Changshu, China (JV)
Barra Mansa, Brazil
Chemours Fluoroproducts
6
• Positioning to capture value
from emerging industry and
regulatory trends
• Increasing investment to shift
our business to an application
development focus
• Delivering long-term GDP+
growth with enhanced
profitability
Reliance on fluorine
performance
Deep expertise in
core offerings
Dependence on
existing applications
• Invest in technology
through marketing, R&D
and intellectual property
• Expand fluoroproducts
application universe into
additional offerings
• Partner with customers
across value chain
• Become specified into
customers’ products
R&D
PRODUCT
VIEW
MARKETING
APPLICATION
DEVELOPMENT
VIEW
7
Chemours Fluorochemicals
7
COMPETITIVE LANDCAPE
AIR CONDITIONING
FOAM BLOWING AGENTS
MOBILE AIR CONDITIONING
CHILLERSCOMMERCIAL
REFRIGERATIONFIRE
SUPPRESSION PROPELLENTS
Chemours Arkema Dongyue MexichemHoneywell
Asia Pacific10%
Latin America12%
North America
44%
EMEA34%
Geography1
Base Refrigerants
55%
Opteon™45%
Products1
Source: Company filings and data
1. Segment net sales on a trailing twelve-month basis ending 4Q17
8
Fluorochemicals Long-Term Market View
Chemours Is Well Positioned to Capture Market Growth and Value for Both HFOs and Non-HFOs
Source: Industry trade publications, company disclosures, and company estimates
REVENUE
$0.7B31% CAGR
(11%) CAGR$0.9B
F O A M B L O W I N G A G E N T S ~$50M
~$650M
~$650M
~$250M
S TAT I O N A RY
42% CAGR
3% CAGR$6.1B
$3.7B
~$50M
~$1.2B
~$3.65B~$4.9B
2016 2025
Non-HFOs HFOs
M O B I L E
$1B
12% CAGR
(1%) CAGR $1.8B~$1.3B
~$500M
~$450M
~$550M
Stationary Market Breakdown
9
Attractive Growth in Stationary Markets Expected over Next Decade
Source: Industry trade publications, company disclosures, and company estimates
Note: CAGRs are based upon non-rounded company estimates
REVENUE
$0.3B88% CAGR
5% 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% CAGR
6% 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
$1.1B
35% CAGR
(8%) CAGR $1.2B
~$2.3B
~$0.05B
~$0.2B
~$4.0B
~$0.3B
~$0.5B
~$1.05B
~$3.9B
Long-Term “Waves” of Regional Adoption
10
Conversion to Low GWP Offerings Anticipated Through Next Decade and Beyond
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Year
Fluorochemicals Revenue
ROW NA EMEA
EU MAC Directive
fully implemented
US phase downs expected to
become more meaningful
ROW impact
expected longer-term
EU F-Gas II
Regulation
implemented
F-Gas: Legislation Overview – HFC Quota Reduction
11
• Applies to the 28 member states in the European Union
• Timeframe: 2015 – 2030
• Cap basis: average CO2 equivalent sales between 2009 and 2012 is the baseline and
determining share
• Quota recalculation every 3 years (Use it / Lose it); can be offset by imports
• HFCs in OEM (pre-charged) equipment fall under quota system beginning in 2017
0
20
40
60
80
100
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
CO
2 e
quiv
ale
nt qu
ota
%
Year
-7%
-37%
Pre-charge equipment needs quota of 11%,
total reduction in 2017 = 18%
-55%
-69%-76% -79%
By 2030, only 21% of
baseline CO2 equivalent
available in 2015 will be
available in the EU
Source: European Partnership for Energy and the Environment (EPEE)
1,300
858
3,943
1 2
1,282
573
<150
0
1,000
2,000
3,000
4,000
Mobile Air Conditioning Foam Blowing Agents Commercial Refrigeration & Chillers
Glo
bal W
arm
ing P
ote
ntial (C
O2
equiv
ale
nt)
Base Opteon™
CO2 Equivalent Basis
12
Opteon™ Refrigerants Offer Low GWP Alternatives that Meet Tightening Environmental Standards
Source: UN IPCC Fifth Assessment Report and Company estimates
0
25
50
75
100
2017 2018 2019 2020 2021
Conversion to Low GWP (Percent of Market)
US CAFE CO2 Credits Overview
13
• Applies to OEM manufacturers who sell into the United States
• Motivates auto OEMs to reduce CO2 footprint for US domestic market through reduced
Greenhouse Gas (GHG) emissions
– Penalties if CO2 limitations are exceeded
– Using HFO refrigerant is a comparatively affordable way to meet these standards, with little effort
– Mechanism in place to trade surplus credits among OEMs
CAFE Credits Expected to Drive Full Conversion to Low GWP Technology by 2021
Source: Company estimates
HFC Phase Down Schedule Under Kigali Amendment
14
Non-Article 5 Parties (Developed Countries)
• Baseline calculation
– Average production/consumption of HFCs in 2011, 2012, and 2013
– Plus, 15% of HCFC baseline production/consumption
Conversion to Low GWP Offerings Anticipated Through 2040 and Beyond
0
20
40
60
80
100
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
CO
2 e
quiv
ale
nt qu
ota
%
Year
-10%
-40%
-70%
-80%
Source: EIA
-85%
Note: Belarus, Russian Federation, Kazakhstan, Tajikistan, Uzbekistan, 25% HCFC component and first two steps are later: 5% in 2020, 35% in 2025
2017 2018E 2019E 2020E 2021E
Chemours Fluorochemicals Conversion to Opteon™
15
Upward Revision to Fluorochemicals Profitability Over December 2017 Investor Day Projections
Base Refrigerants Opteon™
2017-2021E
Opteon™
CAGR
15% - 20%
Source: Company estimates
Fluorochemicals Gross Contribution ($M)
Updated CAGR Based on:
• Stronger Mobile Air
Conditioning growth
• Faster adoption of
Stationary Refrigerants,
driven by EU
• Higher volume and
price anticipated
Chemours Fluoroproducts Summary
16
• Positioning to capture value
from emerging industry and
regulatory trends
• Increasing investment to shift
our business to an application
development focus
• Delivering long-term GDP+
growth with enhanced
profitability
Reliance on fluorine
performance
Deep expertise in
core offerings
Dependence on
existing applications
• Invest in technology
through marketing, R&D
and intellectual property
• Expand fluoroproducts
application universe into
additional offerings
• Partner with customers
across value chain
• Become specified into
customers’ products
R&D
PRODUCT
VIEW
MARKETING
APPLICATION
DEVELOPMENT
VIEW
17
Chemours Fluoropolymers
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COMPETITIVE LANDCAPE
Asia Pacific36%
Latin America
4%
North America
40%
EMEA20%
Source: Company filings and data
1. Segment net sales on a trailing twelve-month basis ending 4Q17
Geography1
Chemours Solvay
Asahi Glass
Company (AGC)
3M (Dyneon)
Daikin
Core 64%
Differentiated36%
Markets1
AUTOMOTIVE
AEROSPACE
MEDICAL
TEXTILES
CONSUMER COATINGS
SEMICON
ELECTRONICS
ENERGY
OIL & GAS
INDUSTRIAL COATINGS
18
Fluoropolymers End-Market Growth Trends
New Trends Within Chemours Core Markets Require Fluorine Performance
Note: 10 year CAGRs represent internal estimates for Fluoropolymers’ growth within these markets
Fluoropolymers Target Markets for Application Development
19Sources: McKinsey; Bain; IHS BCC, US Department of Energy, Chemours sales data and market forecasting
* $ Millon; Addressable market size based on current applications, ingredient sales only
Automotive
Renewable
Energy &
Storage
Consumer
Electronics &
Communications
2016
Market Size*
2016 - 2027
CAGR
2027
Market 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
Fluorine-Based Products Necessary for Increasingly Demanding
Environments
20
Provide Better Performance, Higher Value Versus Other Offerings
2017
2022E
2027E
Fluoropolymers Revenue
Market Breakdown
Core Differentiated
VA
LU
E
• Chemical Inertness
• Thermal Stability
• Non-stick / Low Friction
• Dielectric Properties
• Weather Resistance/Non-aging
• Insensitive to UV
• Broad Temperature Range
(-200°C / +260°C)
Source: Company Estimates
Fluoropolymers Application Development Pipeline
21
~$150 Million Customer-Centered Pipeline Focused on Automotive, Electronics & Communication, and Energy Markets
12 to 36 Months
< 12 Months
Source: Company Estimates
Chemours Fluoropolymers Impact
22
• Expect growth in both core and differentiated product lines over the next ten years
- GDP-like 10-year CAGR for core
- GDP+ 10-year CAGR for differentiated products
• Anticipate differentiated products to become a more meaningful piece of the
Fluoropolymers portfolio over time
- Attractive long-term mega trends
Source: Company estimates
2017 2022E 2027E
Core Differentiated
Fluoropolymers Gross Contribution Breakdown
Fluoroproducts Business Summary
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Fluorochemicals
• Balancing the technological shift from base
refrigerants to low GWP offerings
– A result of regulations globally to reduce HFCs
• Supporting long-term needs of our
customers through continued development
of low GWP products
• Investing in low-cost HFO manufacturing
and capacity to drive future earnings
We are Unlocking the Potential of the Chemours Fluoroproducts Business through Fluoropolymers Application Development and Global Technology Transition of Fluorochemicals
Fluoropolymers
• Investing in application development to
drive greater portfolio mix of higher value
differentiated offerings
• Leveraging our market leadership to
expand into key, attractive applications and
end market
• Shifting focus toward higher differentiation
product mix to enhance margin profile
Appendix
Kigali Amendment to the Montreal Protocol Overview
25
• Adopted in October 2016
• Currently ratified by 28 countries
• Enters into force on January 1, 2019
• Caps HFC quota and phases down use
• Goal of reducing HFC consumption 80%+ by 2047
– Baselines will be calculated from HFC and HCFC production/consumption
– Staggered rollouts globally across countries (3 phases)
CO2 NH3
Industrial GasesZero ODP/Low GWP
CFCsHigh ODP/High GWP
HCFCsLow ODP/High GWP
HFCsZero ODP/High GWP
HFOsZero ODP/Very Low GWP
T E C H N O L O G Y
T I M E L I N E
ODP = Ozone Depletion Potential
GWP = Global Warming Potential
HFC Phase Down Schedule Under Kigali Amendment
26
Article 5 Parties:
Group 1 (Developing Countries)
• Baseline calculation
– Average production/consumption of HFCs
in 2020, 2021, and 2022
– Plus, 65% of HCFC baseline
production/consumption
Article 5 Parties:
Group 2* (Developing Countries)
• Baseline calculation
– Average production/consumption of HFCs
in 2024, 2025, and 2026
– Plus, 65% of HCFC baseline
production/consumption
0
20
40
60
80
100
CO
2 e
quiv
ale
nt qu
ota
%
Year
Freeze
-10%
-30%
-50%
-80%
0
20
40
60
80
100
CO
2 e
quiv
ale
nt qu
ota
%Year
Freeze
-10%
-20%
-30%
-85%
*Includes: Bahrain, India, Iran, Iraq, Kuwait, Oman, Pakistan, Qatar,
Saudi Arabia, and the United Arab Emirates
Source: EIA
Corpus Christi Update
27
• On track to complete facility by end of 2018
• Expect to reach first utilization target within
18 months after completion
– Benefits of low cost facility realization expected
to begin in 2019
• Anticipate additional capacity to meet future
market growth as ramp up progresses
• Ability to modulate production between
existing facility as Corpus comes online
• Will triple capacity of Opteon™
Corpus Christi Facility Secures Lowest Cost Manufacturing of HFO
3xcapacity
28
Reconciliations
GAAP Net Income Attributable to Chemours and Adjusted
EBITDA Tabular Reconciliations (Unaudited)
29
($ in millions except per share amounts)
$ amounts $ per share $ amounts $ per share
Net income attributable to Chemours 746$ 4.04$ 7$ 0.04$
Non-operating pension and other post-retirement employee benefit income (34) (0.18) (20) (0.11)
Exchange (gains) losses (3) (0.02) 57 0.31
Restructuring charges 57 0.31 51 0.28
Asset-related charges 3 0.02 124 0.68
Gain on sale of assets or businesses (22) (0.12) (254) (1.40)
Transaction costs 3 0.02 19 0.10
Legal and other charges 18 0.10 359 1.98
Adjustments made to income taxes (25) (0.14) 18 0.10
Benefit from income taxes relating to reconciling items 1 (14) (0.08) (148) (0.81)
Adjusted Net Income 729$ 3.95$ 213$ 1.17$
Net income attributable to non-controlling interests 1 -
Interest expense, net 215 213
Depreciation and amortization 273 284
All remaining provision for income taxes 1 204 112
Adjusted EBITDA 1,422$ 822$
Weighted average number of common shares outstanding - basic 184,844,106 181,621,422
Weighted average number of common shares outstanding - diluted 190,983,991 183,416,500
Earnings per share - basic 4.04$ 0.04$
Earnings per share - diluted 2 3.91$ 0.04$
Adjusted earnings per share - basic 3.95$ 1.17$
Adjusted earnings per share - diluted 2 3.82$ 1.16$
Year ended
December 31,
2017 2016
1 Total of provision for (benefit from) income taxes reconciles to the amount reported in the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016.
2 Diluted earnings per share is calculated using net income available to common shareholders divided by diluted w eighted-average common shares outstanding during each period, w hich includes
unvested restricted shares. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in w hich there is a loss because the inclusion of the potential common
shares w ould have an anti-dilutive effect.
Segment Net Sales and Adjusted EBITDA (Unaudited)
30
($ in millions unless otherwise noted)
Three months ended
September 30,
2017 2016 2017 2017 2016
SEGMENT NET SALES
Titanium Technologies 785$ 623$ 799$ 2,958$ 2,364$
Fluoroproducts 656 569 637 2,654 2,264
Chemical Solutions 134 130 148 571 772
Total Company 1,575$ 1,322$ 1,584$ 6,183$ 5,400$
SEGMENT ADJUSTED EBITDA
Titanium Technologies 261$ 157$ 249$ 862$ 466$
Fluoroproducts 159 111 158 669 445
Chemical Solutions 20 9 18 57 39
Corporate & Other (46) (38) (44) (166) (128)
Total Company 394$ 239$ 381$ 1,422$ 822$
SEGMENT ADJUSTED EBITDA MARGIN
Titanium Technologies 33.2% 25.2% 31.2% 29.1% 19.7%
Fluoroproducts 24.2% 19.5% 24.8% 25.2% 19.7%
Chemical Solutions 14.9% 6.9% 12.2% 10.0% 5.1%
Corporate & Other 0.0% 0.0% 0.0% 0.0% 0.0%
Total Company 25.0% 18.1% 24.1% 23.0% 15.2%
SEGMENT NET SALES AND ADJUSTED EBITDA (UNAUDITED)
December 31,
Three months ended Twelve months ended
December 31,
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