Form 10 Presentation

Transcription

Form 10 Presentation
CHEMOURS FORM 10 HIGHLIGHTS
April 21, 2015
Forward Looking Statements
This document contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “believes,”
“intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future,
including statements about the company’s strategy for growth, product development, regulatory approval, market position, anticipated benefits
of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental
matters, expenditures and financial results, are forward looking statements. Forward-looking statements are not guarantees of future
performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements
also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the
company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw
material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance,
rules, regulations and policies affecting products based on biotechnology; significant litigation and environmental matters; failure to
appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global
economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security
threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company’s
intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or
businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the
expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future
developments or new information.
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Performance Chemicals Separation Background
DUPONT
THE CHEMOURS COMPANY
• Leading technologies
• Leading businesses
• Science leverage across businesses
• Customer focused applications
• Customer focused applications
development
development
• Low cost production
• Targets secular driven growth
• Capital productivity
• Innovative products; robust pipeline
• Sustainable operator
• Global reach and productivity
• Regulatory leadership and advocacy
• Maintain Investment Grade
• Target credit rating: High Yield (BB)
MISSION: Growth
Differentiated innovation platform
MISSION: Cash Generation
Industry leadership and productivity
Creating Two Highly Competitive Companies With Distinct
Value Creation Strategies
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Performance Chemicals Separation Timeline
Form 10
Amendments
Initial Form 10
Filing
- Pro forma
financial
statements
- Capital Structure
and Dividend
Policy
Debt Road
Show
Equity Road
Show
Expected
Spin
December
2014
January–June 2015
Early 2nd Quarter
2015
June
2015
July
2015
On Track to Expected Completion of Separation July 1, 2015*
* Pending final approval from DuPont’s Board of Directors..
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Update
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The Chemours Company at a Glance
2014 Sales by Segment
Overview
• Leading global provider of performance chemicals
• Reporting segments include Titanium
Technologies, Fluoroproducts, and Chemical
Solutions
Chemical Solutions
18%
Fluoroproducts
36%
• Approximately 9,100 employees
Titanium
Technologies
46%
• 37 production facilities located in 12 countries (at
separation)
2014 Sales by Region
Form 10 - Key 2014 Financials ($B)
Segment Sales
$6.4
Gross Profit
$1.4
% Margin
21%
Adjusted EBITDA
% Margin
$0.9
14%
Latin America
15%
North America
43%
Asia Pacific
24%
EMEA
18%
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Titanium Technologies Segment Overview
The leading global producer of titanium dioxide (“TiO2”),
a premium white pigment used to deliver opacity
Key Information
2014 Sales
$2.9B
2014 Adjusted EBITDA*
$759 Million
Key Products
Ti02
Key Applications
Coatings, Plastics, Laminates, Paper Products
Competitors
Cristal, Huntsman, Kronos, Tronox
* Adjusted EBITDA does not include allocations for corporate costs.
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Fluoroproducts Segment Overview
A leading global provider of fluoroproducts, such as
refrigerants and industrial fluoropolymer resins
Key Information
2014 Sales
$2.3B
2014 Adjusted EBITDA*
$330 Million
Key Products
Krytox® Performance Lubricants, Teflon® PTFE Resins,
Formacel® Foam Expansion Agents, Isceon® and Opteon®
Refrigerants
Key Applications
Aerospace, Automotive, Household and Consumer, Polymer
Intermediates, Refrigeration, HVAC
Competitors
Honeywell, Arkema, Mexichem, Daikin, Solvay, Dyneon
* Adjusted EBITDA does not include allocations for corporate costs.
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Chemical Solutions Segment Overview
A leading North American provider of industrial and specialty
performance chemicals used in gold production, oil refining,
agriculture, industrial polymers and other industries
Key Information
2014 Sales
$1.2B
2014 Adjusted EBITDA*
$29 Million
Key Products
Aniline, Sodium Cyanide, Amines, Amides, Sulfuric Acid
Key Applications
Gold and Silver Mining, Refining, Water Sanitation and Treatment,
Agriculture Chemicals, Surfactants
Competitors
Orica, Cyanco, Solvay, Chemtrade, Evoqua, OxyChem
* Adjusted EBITDA does not include allocations for corporate costs.
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Form 10 – Amendment No. 2
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The Chemours Company – What’s Changed
Approximately $4B in Debt Issuance
• Combination term loans, and senior unsecured notes
• Weighted average estimated interest rate of 5.75%
• Focused on maintaining BB ratings profile
• Expect to have an available Revolving Credit Facility that is undrawn
Chemours Expected to Declare a Dividend for 3Q, 2015 of $100
million in Aggregate to Shareholders*
Separation Activities Continue
• Physical plants separated
• New systems established
• Legal entities created in 2014 and operating in 2015
• Strong governance continues
Pro Forma Financial Information
• Key adjustments – pension and debt
• 2014 FY actuals
Intended NYSE Listing Under Symbol “CC”
*To be paid to Chemours’ stockholders as of a record date post separation.
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The Chemours Company – Balance Sheet*
12/31/2014
Total Assets
$6.0B
Key Components:
Accounts & notes receivable – trade, net
$0.8
Inventories and other current assets
$1.2
Net property, plant & equipment
$3.3
Non-current assets
$0.7
Total Liabilities
$2.3B
Key Components:
Accounts payable
$1.0
Other current liabilities
$0.4
Non-current liabilities
$0.9
Net Investment
$3.7B
*Before Pro Forma adjustments.
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The Chemours Company – 2014 Segment Results
Compared to 2014 DuPont Performance Chemicals
($ Millions)
( $170)
$257
($105)
$913
Perf Chem
PTOI (DuPont)*
DuPont 10-K
Including Viton®
2014
Corporate
Expenses
$638
Chemours
Adjusted EBIT**
$895
Chemours
Adjusted EBITDA**
Chemours Form 10
Chemours Form 10
Legal,
Environmental &
Other Costs
2014
Deprec. & Amort.
2014
Key Differences
 Includes costs not previously charged to segment results
 Chemours Adjusted EBIT includes $492 of allocated leveraged functional service and corporate
expenses, ~$322 of which were included in historical DuPont Performance Chemicals PTOI. The
$170 of additional corporate expenses represents an estimate of Chemours’ portion of DuPont’s
corporate costs necessary for Chemours as a stand-alone company within DuPont.
 Legal, Environmental & Other Costs primarily represent costs for matters that will be indemnified by
Chemours after the separation
* Represents 2014 results for DuPont’s Performance Chemicals segment, reflecting the reclassification of Viton ® fluoroelastomers from Performance Materials to Performance
Chemicals. Segment PTOI excludes non-operating pension, other post-employment benefit costs and exchange gains and (losses).
** Chemours Segment Adjusted EBIT and EBITDA excludes non-operating pension and other postretirement employee benefit costs and exchange gains (losses).
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The Chemours Company – Statement of Cash Flows
Statement of Cash Flows ($MM)
2012
Cash
Provided by
Operating
Activities
$1,390
Cash Used for
Investing
Activities
$(429)
Net Cash
Flow
to/(from)
DuPont
2013
$798
2014
$505
2014 Cash Flow Commentary
Cash Provided by Operating Activities
• Cash provided by operating activities for
2014 declined by $293 million due to:
• A litigation settlement payment of
$72 million
• Working capital adjustments –
timing of payments to secure
favorable raw material terms
• Lower earnings from lower sales
$(424)
$(560)
Cash Used for Investing Activities
• Cash used for investing activities for
2014 increased by $136 million primarily
due to Altamira expansion investment
$961
$374
$(55)
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Appendix
15
The Chemours Company – 2014 Segment Profitability
$MM
Titanium
Technologies
Fluoroproducts
Chemical
Solutions
Corporate and
Other
Total
$2,937
$2,327
$1,168
-
$6,432
Adjusted EBITDA
759
330
29
(223)
895
Depreciation and
Amortization
125
83
48
1
257
Net Sales
Adjusted EBIT
$638
Non-operating
pension and other
benefit costs
$(22)
Exchange Losses
$(66)
Income Before Tax
$550
4/22/2015
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