Titanium Technologies Business Overview...Titanium Technologies Business Overview 2 BUSINESS...

Titanium TechnologiesBusiness Overview

Bryan Snell, President, Titanium Technologies

Titanium Technologies Business Overview

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BUSINESS OVERVIEW• Global leader1 in TiO2 with production

capacity of 1.25 million metric tons– 4 TiO2 plants with 7 production lines– Packaging facility at Kallo, Belgium– Mineral sands mine at Starke, FL

• Strong brand reputation– Ti-Pure™ sold to more than

800 customers globally• Industry-leading manufacturing

cost position– Unique chloride technology – Feedstock flexibility

Source: Company filings and data. Titanium Technologies: TZMI (2016)1. TiO2 market share statistics based on production capacity per 2016 TZMI 2. Reflects 3Q17 trailing twelve-month segment net sales; excludes non-TiO2 sales

North America29%

Asia Pacific32%

EMEA24%

Latin America15%

Paper13%

Coatings61%

Plastics26%

End Market2Geography2

Coatings – architectural, industrial, automotive

Plastics – rigid/flexible packaging, PVC pipe/windows

Papers – laminate papers, coated paper/paperboard, sheet

$ Millions 2015 2016 TTM 3Q17

Revenue 2,392 2,364 2,796

Adjusted EBITDA 326 466 758

Adj. EBITDA Margin 13.6% 19.7% 27.1%

FINANCIAL SUMMARY

See reconciliation of Non-GAAP measures in our appendix

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Altamira

Chemours Titanium Technologies Potential

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Thinking about our business differently….

Operational Discipline + Unique Process Technology + A New Customer Focus = A Growing Chemours Titanium Technologies

Cyclical

Commodity

GDP Growth

Stable

Enhanced Commodity

GDP + Growth Capacity to Serve Market Growth

Ti-Pure™ Value

Stabilization

NewOfferings

Capacity to Serve Market

Growth


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Capacity to Serve Market Growth

Ti-Pure™ Value

StabilizationTi-Pure™

ValueStabilization

TiO2 Market Dynamics

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Strong Demand for Ti-Pure™ TiO2 Is Driven by Industry Supply/Demand and ChemoursProduct Quality, Recognized Reliability and Differentiated Offerings

Source: SEC filings (10-K, 8-K), Earnings Calls, Slides, TZMI TaiBaiFen 2016 & Chemours estimates

Volume (Metric Kt)

O T H E R M U LT I N AT I O N A L P R O D U C E R S

LowQuality

<80% >80%

C H I N E S E P R O D U C E R S

Fit for Use

Multi-Purpose CP

>90%

Multi-PurposeHigh Quality

Specialty

Ultrafine

Relative Price/Value(USD/Metric Tonne)

HIGH

LOW1,000 2,000 3,000 4,000 5,000 6,000

TiO2 Historical Demand

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• World TiO2 demand tracks global GDP

• TiO2 efficiency gains are embedded in the historical demand curve– Not-in-kind substitutes don’t

offer comparable performance• Supply/demand relationship

moved with economy and capacity investment

3,000

3,600

4,200

4,800

5,400

6,000

6,600

40,000

48,000

56,000

64,000

72,000

80,000

88,000

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

TiO

2 D

eman

d, K

T

Rea

l GD

P, $

Bill

ions

GDP World TiO2 Demand, KTWorld TiO2 Demand, KT

Source: TiO2 Market Demand from Titanium Technologies Market Demand Model, PPI:US Government Department of Labor: Bureau of Labor Statistics

TiO2 Historical Pricing

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100

150

200

250

300

350

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

INDEXED US PPI TIO2 PIGMENT

Source: TiO2 Market Demand from Titanium Technologies Market Demand Model, PPI:US Government Department of Labor: Bureau of Labor Statistics

Historically, prices moved with TiO2 capacity utilization• Price fluctuations exacerbated in 2010-2015

Historical Price Environment in the Value ChainTiO2 Price Volatility Disproportionate in Comparison to Rest of the Value Chain

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• Despite TiO2 price volatility, prices for customers’ products remained relatively steady• Price volatility is a negative for both producers and customers

Source: US Government Department of Labor: Bureau of Labor Statistics http://www.bls.gov/data/

80

100

120

140

160

180

200

2000 20172001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Titanium Dioxide

Architectural Paint & Coating

Product finishes for original equipment manufacturers (OEM), excluding marine coatings

Special Purpose Coatings including Marine, Industrial, Construction and Maintenance Coatings

Chemours’ Vision of Ti-Pure™ Value Stabilization

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CHEMOURS’ VISION• We absorb the demand variance in our

customer’s marketplace, while maintainingvalue-based pricing for Ti-Pure™ products

• Reduced business volatility stabilizes Chemours’ cash generation and enables more consistent capacity planning to serve our customers

• We can support and grow our investment in new offerings over time, enhancing growth options for our customers

• Our customers can focus their efforts on market growth and avoid the distracting seesaw of “Can I get the TiO2 I need?” or “How high will the price go?”

Contractual Relationships

Manufacturing Responsiveness

Market Insights and New Offerings

ValueStabilization

Chemours’ Approach to Ti-Pure™ Value Stabilization

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CHEMOURS’ APPROACH• Create contractual relationships which support

a more stable customer-Chemoursrelationship

• Improve our manufacturing flexibility and capacity to economically respond to both decreases and increases in our customers’ sales which vary their requirements for Ti-Pure™ TiO2

• Deliver value from a sustained investment in market insights and new offering development

Ti-Pure™ Value Stabilization Will Enable Dampened Cycles for Chemours

Contractual Relationships

Manufacturing Responsiveness

Market Insights and New Offerings

Approach toStabilization


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Thinking about our business differently…


NewOfferings

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Ti-Pure™ Value to CustomersChemours’ Market Segmentation Reveals Applications Where the Ti-Pure™ Total Offering Provides Differential Performance and Enhanced Value to the End User

>90%


Specialty

Ultrafine


HIGH

LOW2,000 3,000 4,000 5,000 6,000

Volume (Metric Kt)

Source: SEC filings (10-K, 8-K), Earnings Calls, Slides, TZMI TaiBaiFen 2016 & Chemours estimates

O T H E R M U LT I N AT I O N A L P R O D U C E R S

DIFFERENTIAL END USER VALUE(Quality, Reliability, Consistency, Brand, Business Capability)

MARKET SEGMENTATION

CUSTOMER VALUE

PROPOSITIONOFFERING

DESIGN

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Ti-Pure™ Differential PricingChemours Continues to Work With Customers Towards a Range of Sustainable Prices Based On Total Business Value

RECENT PRICE COMMUNICATIONS

PRICE RANGE – MARKET SEGMENT & REGION

NEW PRICE COMMUNICATIONS

DIFFERENTIAL END USER VALUE

RECENT PRICE COMMUNICATIONSNorth America: November 1 or as contracts allowRest of World: October 1 or as contracts allow

NEW PRICE COMMUNICATIONSAsia Pacific: January 1 or as contracts allowLatin America: January 1 or as contracts allow

1Q16 3Q17

MinMax

Ti-Pure™ in Plastics –Enhancing Downstream Valuee

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• Chemours collaborates with masterbatch and film producers and co-suppliers to improve high quality film performance by using Ti-Pure™

Ti-Pure™ Design and Formulation Expertise Enhances Value to Our Customers

Ti-Pure™ R-104renewed with improved tinting strength while retaining a clean bright and blue undertone and exceptional processability and dispersion into polymers

Ti-Pure™ R-105 provides a synergistic effect with UV stabilizers achieving extended service life


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Est.

Coatings Customers Derive Value fromTi-Pure™ & Teflon™ Brands

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• Chemours brings insightful market research, quality ingredients, formulation expertise and brand endorsement to enable growth for our customers in the decorative paint market

Chemours Can Improve the Proposition for the Producer and the Consumer

COATINGS PRODUCTS WITH TI-PURE™ AND TEFLON™ BRANDS EXCEED INDUSTRY AVERAGE GROWTH

Coatings Industry CAGR = 4%

Branding CAGR = 11%


2017E


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GrowthCapacity to Serve Market Growth

Chemours’ Enhanced Circuit Manufacturing Capacity

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• Chemours is committed to regularly adding incremental capacity at high capital return– Technology-enabled debottlenecking will further

increase our economy of scale advantage– Improving our world class uptime capability through

strong operational discipline and structured continuous improvement

– Developing long-term capacity plans to support customer growth

– Supported with capital investment to expand our ilmenite mine and long-term ore contracts

Additional ~10% Flexible Capacity Will Support Our Customers’ Growth

2017 2021

CHEMOURS TiO2 CAPACITY

~10%growth

Chemours’ Unique Manufacturing Capability and Flexibility

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CONTINUOUS IMPROVEMENT OF UNIQUE CAPABILITIES

• We are expanding production line product capability to support our value propositions to customers– Improved supply reliability– Improved line-to-line quality consistency – Enhanced capability to serve customers’ needs with the products they want most– Improved flexibility to adjust output to match customer demand

CHEMOURS’ SOURCE FLEXIBILITY

• Our unique chloride technology and know-how support higher productivity and ability to use a wide range of ore


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Growth

NewOfferings

Chinese TiO2 Market Dynamics

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CHINESE TiO2 MARKET• Largest and fastest growing market, ~1.5 MT/Yr• Chemours is the largest MNC supplier• Chemours operates a TiO2 facility in Kuan Yin, Taiwan

CHINESE TiO2 SUPPLY FACTORS• Lomon Billions emerged as a large player, favorable

conditions for further consolidation• Enforcement of environmental regulations• Local chloride technology ramping up slowly

– Considered more sustainable by the government– Requires chloride quality high grade feedstock, which is

globally traded– Opportunity for Chemours’ new offering – BaiMax™ (臻白™)

China Market Dynamics Present Growth Opportunity for the New Chemours Offering –BaiMax™ (臻白™)

China market growth and the positioning of new

chloride-based products are in the multi-purpose applications

Volume (Metric Kt)

O T H E R M U L T I N A T I O N A L P R O D U C E R S

LowQuality

<80% >80%

C H I N E S E P R O D U C E R S

Fit for Use

Multi-Purpose CP

>90%


Specialty

Ultrafine


HIGH

LOW1,000 2,000 3,000 4,000 5,000 6,000

Chemours Growth in China supported by BaiMax™

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• Launched BaiMax™ in October 2017 labelled exclusively for customers in Greater China– The essential chloride solution from Chemours, the

makers of Ti-Pure™ – Delivers consistent quality and chloride brightness across

multi-purpose applications to Chinese customers growing their businesses inside Greater China

BaiMax™ Is Well Positioned as China Increases Preference for Chloride Quality TiO2

BaiMaxTM臻白™, “真”相从此大白

Summary

Chemours Titanium Technologies is driving a robust business model focused on durable growth

Cyclical

Commodity

GDP Growth

Stable

Enhanced Commodity

GDP + Growth

• Stabilizing the value of Ti-Pure™ TiO2, which is good for our customers, investors and suppliers

• Renewing our focus on customers and offerings

• Being the go-to supplier supporting customer growth through reliable supply, regular capacity addition and innovative offerings

• Improving our unique manufacturing skills for increased product and production flexibility at an advantaged cost

• Participating in China’s development

Ti-Pure™ Value

Stabilization

NewOfferings


Growth

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