Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

THE CHEMOURS COMPANY

(CC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Chemours : Quarterly Report Document

08/02/2021 | 09:12am EDT

Corrected Transcript

30-Jul-2021

The Chemours Co. (CC)

Q2 2021 Earnings Call

Total Pages: 19

1-877-FACTSET www.callstreet.com

Copyright © 2001-2021 FactSet CallStreet, LLC

The Chemours Co. (CC)

Corrected Transcript

Q2 2021 Earnings Call

30-Jul-2021

CORPORATE PARTICIPANTS

Jonathan S. Lock

Sameer Ralhan

Vice President-Corporate Development & Investor Relations, The

Chief Financial Officer & Senior Vice President, The Chemours Co.

Chemours Co.

Mark E. Newman

President, Chief Executive Officer & Director, The Chemours Co.

.....................................................................................................................................................................................................................................................................

OTHER PARTICIPANTS

John P. McNulty

Steven Haynes

Analyst, BMO Capital Markets Corp.

Analyst, Morgan Stanley & Co. LLC

Robert Koort

Arun Viswanathan

Analyst, Goldman Sachs & Co. LLC

Analyst, RBC Capital Markets LLC

Joshua Spector

Eric B. Petrie

Analyst, UBS Securities LLC

Analyst, Citigroup Global Markets, Inc.

Matthew DeYoe

Roger Spitz

Analyst, BofA Securities, Inc.

Analyst, BofA Securities, Inc.

Hassan I. Ahmed

Analyst, Alembic Global Advisors LLC

2

1-877-FACTSET www.callstreet.com

Copyright © 2001-2021 FactSet CallStreet, LLC

The Chemours Co. (CC)

Corrected Transcript

Q2 2021 Earnings Call

30-Jul-2021

MANAGEMENT DISCUSSION SECTION

Operator: Good day and thank you for standing by. Welcome to The Chemours Company's Second Quarter Earnings Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jon Lock, VP, Corporate Development and Investor Relations. Please go ahead.

.....................................................................................................................................................................................................................................................................

Jonathan S. Lock

Vice President-Corporate Development & Investor Relations, The Chemours Co.

Good morning and welcome to The Chemours Company second quarter 2021 earnings conference call. I'm joined today by Mark Newman, President and Chief Executive Officer; and Sameer Ralhan, Senior Vice President and Chief Financial Officer.

Before we start, I'd like to remind you that comments made on this call as well as the supplemental information provided in our presentation and on our website contain forward-looking statements that involve risks and uncertainties, including the impact of COVID-19 on our business and operations and the other risks and uncertainties described in the documents Chemours has filed with the SEC.

These forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events that may not be realized. Actual results may differ and Chemours undertakes no duty to update any forward-looking statements as a result of future developments or new information.

During the course of this call, management will refer to certain non-GAAP financial measures that we believe are useful to investors evaluating the company's performance. A reconciliation of non-GAAP terms and adjustments are included in our release and at the end of this presentation.

With that, I'll turn the call over to our CEO, Mark Newman, who will review the highlights from the second quarter. Mark?

.....................................................................................................................................................................................................................................................................

Mark E. Newman

President, Chief Executive Officer & Director, The Chemours Co.

Thank you, Jonathan. And thank you to everyone on the call for joining us today. I'm excited to be speaking to you today on my first earnings call as CEO of The Chemours Company. It's a busy time here at Chemours, but the energy I feel from our people, from our customers, suppliers and investors is so incredible. This has been in part driven by the broader macroeconomic recovery from COVID-19. But more importantly, I think it reflects the enthusiasm and passion of our teams and a deeply held belief that our chemistry has the power to change the world.

To that end, I have charged the people of this company to drive even sharper focus on creating the best products for our customers and helping solve the world's biggest challenges from climate change to energy storage to high speed data. Our chemistry is fundamental to the future. And through our innovation, we have the power to make a difference. There is a rich canvas of opportunity which lies ahead of us and we are well-positioned to drive long-

3

1-877-FACTSET www.callstreet.com

Copyright © 2001-2021 FactSet CallStreet, LLC

The Chemours Co. (CC)

Corrected Transcript

Q2 2021 Earnings Call

30-Jul-2021

term growth for the benefit of all our stakeholders. In 2021, we are focused squarely on delivering on our plans and ensuring that we take full advantage of market opportunities, which we are uniquely positioned to capture.

Turning now to the highlights from the second quarter on chart 3, demand momentum from the first quarter continued into Q2 as the global recovery from COVID-19 continued at pace. We've set a number of revenue and profitability records across the portfolio in the second quarter, including achieving the third highest quarterly sales in Chemours' history.

Net sales increased 51% to $1.7 billion while adjusted EBITDA of $366 million increased $200 million from the prior year quarter. Our Titanium Technologies results demonstrate the benefits of our TVS strategy and the continued economic recovery driving our volumes to historic levels and supporting higher Ti-Pure pricing across all channels.

We are delivering on the challenging supply chain and logistic conditions, which is becoming a real differentiator in customer choice. The execution of TVS improves our quality of earnings through the cycle by creating mutually beneficial, long-term relationships with our customers and building a better book of business.

In our Thermal & Specialized Solutions segment, we reported another strong quarter. Rebounding global markets are supporting improved volumes and higher pricing in these refrigerants. Operationally, we have recovered well from the weather-impacted first quarter, which helped to support our strong margin performance in the quarter. The global transition to HFO technology is under way with many years of growth ahead, enabled by better enforcement of F-gas regulations in Europe and the coming implementation of AIM regulations in the US.

We have shown incredible progress in our Advanced Performance Materials segment. Demand has recovered across the majority of our end-markets leading to historic highs for quarterly sales and adjusted EBITDA this quarter. APM is transforming fast and primed to deliver. The business is delivering on proof points that support our near-termGDP-plus growth ambition. Meanwhile, we are positioning ourselves to capture secular growth over time as key trends take hold in semiconductor manufacturing, 5G communication, and hydrogen generation.

I'm especially proud of these results in the context of global supply chains disruptions, which have impacted everything from the raw materials we procure to shipping containers which we use to serve our customers. Everyone at Chemours has stepped up over the last several months to support stable operations, and I would like to take this opportunity to thank the entire team for their continued dedication to our customers.

This week, we also announced the signing of a definitive agreement to divest our Mining Solutions business to Draslovka for $520 million or 10 times 2020 fiscal year adjusted EBITDA. With this transaction, we are furthering our strategy to focus our portfolio and drive long-term growth around our three core businesses. This was a great result for Chemours, the Mining Solutions team and for our shareholders. We executed quickly, having just launched the process in Q1, and anticipate the transaction will close by the end of this year. I would like to thank Jonathan Lock and all of The Chemours team involved for helping us achieve this great outcome.

Before turning things over to Sameer, I wanted to cover one more topic, the most recent publication of our 2020 Corporate Responsibility Commitment Report released a few days ago. The annual publication of our CRC Report has become a tradition at Chemours which I look forward to. Four years into our sustainability journey, we continue to make significant progress against an ambitious set of 2030 goals. I'll discuss the content of the report in more detail here on chart 4.

4

1-877-FACTSET www.callstreet.com

Copyright © 2001-2021 FactSet CallStreet, LLC

The Chemours Co. (CC)

Corrected Transcript

Q2 2021 Earnings Call

30-Jul-2021

In 2018, we set out to chart a new course for Chemours and the chemical industry more broadly. We introduced a comprehensive set of goals designed to push ourselves to a higher standard, and we have been relentless in our pursuit of these goals over the last several years. As a reminder, these goals cover our Shared Planet, Inspired People and an Evolved Portfolio. When we set these goals, we weren't entirely sure how we would achieve them by 2030. But we have attacked them with the same resolve we took to the spin, our transformation and reshaping our portfolio.

As you can see on chart 5, even in a year marked by COVID-19, our teams have rallied around this common cause to deliver significant progress across the board. This is so important and exciting to me because we know that priorities become clear on the times of duress. In 2020, we kept our focus on our North Star, keeping our people safe and serving our customers, but also saw to it that we continue to make progress against our CRC goals.

On the Shared Planet, we have reduced our fluorinated organic compound emissions and our greenhouse gas emissions by 48% and 29%, respectively, from our 2018 baselines. We are on track to hit both our 99% reduction target for fluorinated compound emissions and our 60% absolute reduction in greenhouse gas emissions by 2030. We are targeting net zero greenhouse gas emissions by 2050.

In our Inspired People pillar, I would like to highlight the increase in female representation on the senior executive team, up to 44% as of July 1 from 13% only a few years ago. There's still work to be done to ensure our overall workforce gets to 50% women by 2030. But I am proud of the success we have had at a leadership level thus far. With respect to the ethnic diversity of our US workforce, we are nearing our goal of 20%, again with significant representation on our senior executive team.

Finally, in Evolved Portfolio, over one-third of our products by revenue make a specific contribution to the UN Sustainable Development Goals. As we move closer to our goal of ensuring 50% or more of our revenue comes from offerings that make specific contribution to the UN Sustainable Development Goals. The headlines are of course Opteon and Nafion, but Chemours is making a difference much more broadly across the portfolio. For all the details, please have a look at our CRC Report posted on our Investor Relations website.

With that, I'll turn things over to Sameer to review the financial results for the quarter. I'll be back to talk about our revised guidance before turning to Q&A. Sameer?

.....................................................................................................................................................................................................................................................................

Sameer Ralhan

Chief Financial Officer & Senior Vice President, The Chemours Co.

Thanks, Mark. Turning to chart 6. Results in the second quarter continued the trend from Q1 with demand improving across the portfolio. Q2 net sales of $1.7 billion were up 51% year-over-year and 15% on a sequential basis. The global recovery continued to pick up steam across most of our end-markets. GAAP EPS was $0.39 per share with adjusted EPS of $1.20 per share. Adjusted EPS reflects add-back of two key charges: $169 million related to remediation of onsite water at our Fayetteville site to address legacy liabilities, and $25 million associated with the Delaware settlement, which we announced several weeks ago. I'll cover these in more detail on the next chart.

Adjusted EBITDA increased by $200 million to $366 million in the second quarter driven by higher volumes and pricing with currency providing a slight tailwind. Margins rose to 22% on a company-wide basis. Free cash flow in the quarter was $189 million. Our cash performance in the quarter reflects our continued commitment to improving the overall quality of earnings of the company and, more importantly, converting earnings to cash.

5

1-877-FACTSET www.callstreet.com

Copyright © 2001-2021 FactSet CallStreet, LLC

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

The Chemours Company published this content on 02 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2021 13:11:05 UTC.


ę Publicnow 2021
All news about THE CHEMOURS COMPANY
09/01CHEMOURS CO : Change in Directors or Principal Officers (form 8-K)
AQ
09/01CHEMOURS : Appoints Sandra Phillips Rogers to Board of Directors
PR
09/01The Chemours Company Appoints Sandra Phillips Rogers to Board of Directors
CI
08/18CHEMOURS : Closes $650 Million Senior Notes Offering
MT
08/18CHEMOURS : ANNOUNCES EARLY TENDER RESULTS OF (Form 8-K)
PU
08/18CHEMOURS CO : Entry into a Material Definitive Agreement, Creation of a Direct Financial O..
AQ
08/18THE CHEMOURS COMPANY : Announces Completion of Private Offering of $650 Million Aggregate ..
PR
08/18The Chemours Company Announces Completion of Private Offering of $650 Million Aggregate..
CI
08/17THE CHEMOURS COMPANY : Announces Early Tender Results of Conditional Cash Tender Offer and..
PR
08/17The Chemours Company Announces Early Tender Results of Conditional Cash Tender Offer an..
CI
More news
Analyst Recommendations on THE CHEMOURS COMPANY
More recommendations
Financials (USD)
Sales 2021 6 134 M - -
Net income 2021 482 M - -
Net Debt 2021 2 648 M - -
P/E ratio 2021 9,56x
Yield 2021 3,65%
Capitalization 4 486 M 4 486 M -
EV / Sales 2021 1,16x
EV / Sales 2022 1,03x
Nbr of Employees 6 500
Free-Float 85,7%
Chart THE CHEMOURS COMPANY
Duration : Period :
The Chemours Company Technical Analysis Chart | CC | US1638511089 | MarketScreener
Technical analysis trends THE CHEMOURS COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 27,16 $
Average target price 41,17 $
Spread / Average Target 51,6%
EPS Revisions
Managers and Directors
Mark E. Newman President, CEO, COO, Director & Senior VP
Sameer Ralhan Chief Financial Officer & Senior Vice President
Mark P. Vergnano Chairman
Randal King VP-Technology & Advanced Performance Materials
Curtis V. Anastasio Independent Director
Sector and Competitors