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Fluoroproducts Presentation March 2018
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Page 1: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

Fluoroproducts PresentationMarch 2018

Page 2: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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.

Page 3: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 4: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 5: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 6: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 7: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 8: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 9: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 10: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 11: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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)

Page 12: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 13: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 14: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 15: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 16: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 17: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

17

Chemours Fluoropolymers

17

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

Page 18: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 19: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 20: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 21: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 22: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 23: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

Fluoroproducts Business Summary

23

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

Page 24: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

Appendix

Page 25: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

Page 26: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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

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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

Page 28: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

28

Reconciliations

Page 29: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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.

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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,

Page 31: PowerPoint Presentation · (AGC) 3M Daikin (Dyneon) Core 64% Differentiated 36% Markets1 AUTOMOTIVE AEROSPACE MEDICAL TEXTILES CONSUMER COATINGS SEMICON ELECTRONICS ENERGY OIL & GAS

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