First Quarter 2024 Earnings Presentation

April 30, 2024

Safe Harbor Statement and Other Matters

This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, 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, guidance on Company and segment performance for the second quarter of 2024 and our expected commercialization of Opteon two-phase immersion cooling by 2026. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized, such as guidance relying on models based upon management assumptions regarding future events that are inherently uncertain. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties including 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, remediation of material weaknesses and internal control over financial reporting, 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 for our segments individually and our company as a whole, business plans, prospects, targets, goals and commitments, capital investments and projects and target capital expenditures, plans for dividends or share repurchases, sufficiency or longevity of intellectual property protection, cost reductions or savings targets, plans to increase profitability and growth, our ability to develop and commercialize new products or technologies and obtain necessary regulatory approvals, our ability to make acquisitions, integrate acquired businesses or assets into our operations, and achieve anticipated synergies or cost savings, 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. These statements also may involve risks and uncertainties that are beyond Chemours' control. Matters outside our control, including general economic conditions, geopolitical conditions and global health events, have affected or may affect our business and operations and may or may continue to hinder our ability to provide goods and services to customers, cause disruptions in our supply chains such as through strikes, labor disruptions or other events, adversely affect our business partners, significantly reduce the demand for our products, adversely affect the health and welfare of our personnel or cause other unpredictable events. 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 U.S. Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and in our Annual Report on Form 10-K for the year ended December 31, 2023. 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 press rel ease, we may make reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Total Debt Principal, Net 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. Management uses Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin, which adjust for (i) certain non-cash items, (ii) certain items we believe are not indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items to evaluate the Company's performance in order to have comparable financial results to analyze changes in our underlying business from period to period. Additionally, Total Debt Principal, Net and Net Leverage Ratio are utilized as liquidity measures to assess the cash generation of our businesses and on-going liquidity position.

Accordingly, the Company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the Company's operating performance and underlying prospects. This analysis should not be consi dered in isolation or as a substitute for analysis of our results as reported under GAAP. This analysis, as well as the other information in this press release, should be read in conjunction wit h the Company's financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies. The Company does not provide a reconciliation of forward-lookingnon-GAAP financial measures to the most directly comparable GAAP reported financial measures on a forward-looking basis because it is unable to predict with reasonable certainty the ultimate outcome of unusual gains and losses, potential future asset impairments and pending litigation without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impac t on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the attached schedules or the table, "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)" and materials posted to the Company's website at investors.chemours.com.

First Quarter 2024 Financial Summary

($ in millions unless otherwise noted; excludes per share amounts)

1Q24

1Q23

∆

Yr/Yr

Net Sales

$1,350

$1,536

$(186)

Pre-Tax Income

$67

$173

$(106)

Pre-Tax Income Margin (%)

5%

11%

(6) pp

Net Income 1

$52

$145

$(93)

Adj. Net Income 2

$48

$148

$(100)

EPS 3

$0.34

$0.96

$(0.62)

Adj. EPS 2,3

$0.32

$0.98

$(0.66)

Adj. EBITDA 2,4

$193

$304

$(111)

Adj. EBITDA Margin (%) 5

14%

20%

(6) pp

Operating Cash Flow

$(290)

$(124)

$(166)

Capex

$(102)

$(91)

$(11)

First Quarter vs Prior-Year Quarter

  • Net Sales: Decreased by 12% to $1.4 billion, driven by decreased volumes in APM and TSS as well as lower pricing across the businesses
  • Earnings Per Share (EPS):
    • GAAP EPS3 of $0.34, down $(0.62) YoY
    • Adjusted EPS3 of $0.32, down $(0.66) YoY
  • Adjusted EBITDA: $193 million, down 37% YoY, primarily due to lower price and sales volumes, partially offset by cost-saving actions in TT
  • Adjusted EBITDA Margin: Decreased to 14%, down from 20% in the prior-yearquarter, primarily influenced by the factors outlined above
  • Operating Cash Flow: $(290) million, driven by 2023 year-end net working capital timing actions unwind and lower net income
  • Capex: $(102) million, up from $(91) million in the prior-year quarter
  1. Net Income attributable to The Chemours Company
  2. Non-GAAPmeasures, including Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA Margin, ref erred to throughout, principallyexclude the impact of recent litigation settlements f or legacy env ironmental matters and associated f ees, in

addition to other unallocated items - please ref er to the attached "GAAP Net Income (Loss) Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation (Unaudited)" table

  1. Calculation based on diluted share count
  2. Adjusted EBITDA excludes net income attributable to noncontrolling interests, net interest expense, depreciation and amortization, and all remaining prov ision f or income taxes f rom Adjusted Net Income. Please ref er to the attached "GAAP Net Income (Loss) Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation (Unaudited)" table
  3. Def ined as Adjusted EBITDA div ided by Net Sales

Adjusted EBITDA Bridge: 1Q24 versus 1Q23

Adjusted EBITDA Bridge: 4Q22versus 4Q21

($ in millions unless otherwise noted)

First Quarter vs Prior-Year Quarter

•

Price Declines: Primarily driven by lower

pricing

in market-exposed customer

portfolio within the

($73)

TT segment,

as well as lower

pricing in legacy

refrigerants

in TSS and economically sensitive

end-markets in APM

•

Volume Changes: Primarily driven by continued

($38)

$18

weaker

demand in economically sensitive

end-

($5)

($8)

($5)

markets

within APM, as well as subdued

demand

in the Foam, Propellants and Other products

$304

portfolio and from automotive

OEMs in TSS

•

Cost Reduction: Primarily driven by improved

$193

cost profile resulting from cost-saving actions in

TT

1Q23 Local Price Volume Cost 6 Other Income Currency Portfolio 1Q24

See reconciliation of Non-GAAP measures in the Appendix

6 Total costs in the f irst quarter of 2024 include a $5 million unallocated item related to third-party costs associated with the TT Transf ormation Plan

Liquidity Position as of March 31, 2024

Li idity Position

Adjusted EBITDA Bridge: 4Q22 versus 4Q21

($ in millions unless otherwise noted)

Q1'24 Cash Position:

Gross debt

$4.1B

$3.3B

• Unrestricted Cash: $0.7 billion

Net Debt 9

• Restricted Cash: $0.6 billion

3.7x

TTM Net Leverage 10

• Total Cash: $1.4 billion

$1,807

($290)

($102)

($37)

$604

($25)

$1,353

Restricted

$607

Restricted

$1,203

Unrestricted

$746

Unrestricted

4Q23 Cash 7

Operating Cash

CAPEX

Cash to

Other

1Q24 Cash 7

Balance

Flow

Shareholders

Balance

See reconciliations of Non-GAAP measures in the Appendix

Q1'24 Cash Flow Highlights:

  • Operating Cash Flow: $(290) million
  • Capex: $(102) million

Restricted Cash:

  • Reflects $606 million as a part of the Water District Settlement Fund (per U.S. public water system settlement agreement)

Total Liquidity:

  • Total Liquidity8: $1.6 billion
    • Unrestricted Cash: $0.7 billion
    • Revolving Credit Facility Capacity: $0.9 billion (net of outstanding letters of credit)

Q2'24 Outlook:

  • Operating Cash Flow: $(500) million, attributable to the reduction of the $606 million of restricted cash held as part of the Water District Settlement Fund for which we will no longer maintain a reversionary interest upon final judgment
  • Capex: $(80) million

7

Total cash balances include $604 million and $607 million of restricted cash and restricted cash equiv alents on Chemours' Balance Sheets as of December 31, 2023 and March 31, 2024, respectiv ely , related principally to the Water District Settlement Fund.

8

Total liquidity is calculated as the sum of $746 million unrestricted cash and cash equiv alents and $853 million of rev olv ing credit capacity , net of outstanding letters of credit. Restricted cash and restricted cash equiv alents totaling $607 million is not included in this calculation

9

Net Debt, which we also ref er to herein as Total Debt Principal, Net, is calculated as gross debt less unrestricted cash and cash equiv alents

10

TTM Net Lev erage ref lects Total Debt Principal, Net at quarter-end div ided by trailing twelv e months of Adjusted EBITDA

Segment Performance

Titanium Technologies (TT) Business Summary

Q1 Highlights

  • Q1 Performance: YoY Net Sales decreased due to declines in market-exposed customer portfolio, partially offset by index-based priced contractual stability. Volumes were flat as strength in APAC and EMEA regions was offset by weakness in North America and LatAm.
  • Adjusted EBITDA was flat, primarily driven by cost reductions from the TT Transformation Plan, partially offset by price declines.
  • Sequential Performance: Net Sales decrease was completely driven by decreases in volume. Adjusted EBITDA increase was
    driven by actions to allocate TiO2 volumes to higher-yield regions, the timing of lower-cost ore consumption, and cost reductions from the TT Transformation Plan.

Q2 Outlook

  • 2Q24 Outlook: The Company expects sequential Net Sales growth of approximately 15%, reflecting the previously communicated
    improvement in the Company's TiO2 orderbook. Adjusted EBITDA growth is expected to be generally in-line with the growth in Net Sales, with higher volumes and improved fixed cost absorption, partially offset by the timing of certain business overhead costs and the shift in timing of higher-cost ore consumption, much of which is anticipated for the second quarter.
  • Transformation Plan Update: Eliminated approx. $90 million of operating expenses since plan announced. $50 million of this was in latter half of 2023. $40 million in YoY savings was achieved in Q1 2024 toward cost-out target of $125 million for FY24.

($ in millions)

Q1 Net Sales

Total

Price

Volume

Currency

Yr/Yr %

(7)

(7)

0

0

Qtr/Qtr %

(10)

0

(10)

0

$928

$723

$632

$588

Q1'21

Q1'22

Q1'23

Q1'24

($ in millions)

($ in millions)

Q1 Adjusted EBITDA

Total

Yr/Yr %

0

Qtr/Qtr %

9

$166

$206

$70

$70

Q1'21

Q1'22

Q1'23

Q1'24

Margin6

23%

22%

11%

12%

1-10 Ref er to f ootnotes prov ided on the preceding slides

Thermal & Specialized Solutions (TSS) Business Summary

Q1 Highlights

  • Q1 Performance: YoY Net Sales decrease driven by lower Auto OEM and FP&O* portfolio demand coupled with lower legacy HFC and contractual auto OEM pricing. These impacts were partially

offset by increased demand for Opteon products in stationary end markets.

  • Adjusted EBITDA decreased due to decreases in sales volume and price along with increased R&D investments in immersion cooling and next generation refrigerants.
  • Sequential Performance: Net Sales increase primarily driven by seasonal refrigerant demand trends. This increase was partially offset by softer volumes in the FP&O product portfolio due to its exposure to construction markets, which remain weak.

Q2 Outlook

  • 2Q24 Outlook: The Company expects mid-teens sequential growth

for both Net Sales and Adjusted EBITDA, driven by both seasonality and continued adoption of Opteon products. The projected sequential growth for Adjusted EBITDA incorporates a modest offset from higher input costs from non-Corpus Christi sourced materials to support the transition to Opteon , lower fixed cost absorption on the Company's legacy refrigerant production, and ongoing investments in next generation refrigerants and immersion cooling. This increased investment, primarily in R&D, is anticipated to be approximately $15 million in 2024.

($ in millions)

Q1 Net Sales

Total

Price

Volume

Currency

Yr/Yr %

(8)

(2)

(6)

0

Qtr/Qtr %

20

5

15

0

$425

$486

$449

$304

Q1'21

Q1'22

Q1'23

Q1'24

($ in millions)

Q1 Adjusted EBITDA

Total

Yr/Yr %

(18)

Qtr/Qtr %

22

$174

$185

$151

$90

Q1'21

Q1'22

Q1'23

Q1'24

Margin6

30%

41%

38%

34%

*FP&O = Foam, Propellants and Other Products

1-10 Ref er to f ootnotes prov ided on the preceding slides

Thermal & Specialized Solutions - Business Summary

TSS Market Strength

TSS Key End Markets

Global leading provider of refrigerants, thermal management solutions, propellants, foam blowing agents, and specialty solvents

Category leader in next-gen low global warming potential ("GWP") refrigerant technology Opteon

  • Market-leadingprocess technology at Corpus Christi, TX facility; 40% capacity expansion complete by YE 2024
  • Project announced to increase capacity for low GWP foam blowing agents

Commercialization of Opteon two-phase immersion cooling by 2026, pending appropriate regulatory approvals

  • Robust international patent portfolio for products and methods, providing protection until the early to mid 2030s

Estimated mid-to-high single digit growth for TSS through the end of the decade with Adjusted EBITDA Margin averaging 30% or greater

DATA CENTERS

Geography 11

Product Type 11

Latin America

Foam, Propellants

12%

& Other 20%

Asia

Pacific

10%

EMEA

North

Refrigerants

20%

America

80%

58%

Adj. EBITDAmargin of 37%11

11

Data reflects Net Sales and Adjusted EBITDA for the trailing tw elve months ended March 31, 2024

9

Two-Phased Data Center Immersion Cooling with Opteon

Key Market

Drivers

  • Over 95% of data centers use traditional air- and water-cooled technologies
  • Data centers are highly energy-intensive, with over 40% of energy dedicated to cooling IT equipment
  • A mid-sized US data center consumes approximately 300,000 gallons of water per day
  • Next-generationGPUs and CPUs are driving the industry to evaluate liquid cooling

The Technology

Little to no water usage

Why Two-

Phase

Immersion

Cooling?

10 Source: Internal Estimates, ING THINK

  • Direct-to-chipand single-phase immersion cooling require additional air-cooled or secondary refrigerant loops and equipment
  • Superior heat absorption performance: ~100x better than air, ~10x better than single-phase immersion coolingǂ
  • Up to a 90% reduction in energy consumption, which equates to a potential 40% reduction in total data center energy consumption
  • Simplified maintenance compared to single-phase immersion cooling
  • Lower total cost of ownership and greater flexibility compared to direct-to-chip and single-phase immersion cooling

Key Advantages

Solution for future higher capacity computing energy and performance

demands

  • Lowwater usage
  • LowGWP
  • Lowasset footprint
  • Lowenergy usage
  • Lowmaintenance

ǂbased on relative heat transfer coefficients

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Disclaimer

The Chemours Company published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:09:25 UTC.