Chemours Co (CC) 2024 Q2 法說會逐字稿

Good morning. My name is Lovely, and I will be your conference operator today. I would like to welcome everyone to The Chemours Company Second-Quarter 2024 Results Conference Call. (Operator Instructions) I would like to remind everyone that this call -- conference call is being recorded. I would now like to hand the conference call over to Brandon Ontjes, Vice President of Investor Relations for Chemours. You may now begin your conference.

早安.我叫可愛，今天我將成為你們的會議操作員。歡迎大家參加科慕公司 2024 年第二季業績電話會議。（操作員指示）我想提醒大家，本次電話會議正在錄音。現在我想將電話會議交給科慕投資者關係副總裁 Brandon Ontjes。您現在可以開始會議了。

Good morning, everybody. Welcome to the Corus Company's second quarter 2024 earnings conference call. I'm joined today by Mr. Putnam Sycamore's, President and Chief Executive Officer, and our Chief Financial Officer, Shane Hostetter.

大家早安。歡迎參加 Corus 公司 2024 年第二季財報電話會議。今天與我一起出席會議的還有總裁兼執行長 Putnam Sycamore 先生以及我們的財務長 Shane Hostetter。

Before we start, I would like to remind you that comments made on this call as well as in the supplemental information provided on our website contain forward-looking statements that involve risks and uncertainties as described in more of these SEC filings.

在我們開始之前，我想提醒您，對本次電話會議的評論以及我們網站上提供的補充資訊包含前瞻性陳述，這些陳述涉及風險和不確定性，如更多 SEC 文件中所述。

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.

這些前瞻性陳述並非對未來績效的保證，而是基於對可能無法實現的未來事件的某些假設和預期。實際結果可能有所不同，科慕不承擔因未來發展或新資訊而更新任何前瞻性陳述的責任。

During the course of the call, we'll 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 press release issued yesterday. Also, we posted our earnings presentation to our website last evening.

在電話會議期間，我們將提及某些我們認為對投資者評估公司績效有用的非公認會計準則財務指標。非公認會計原則條款和調整的調節包含在我們昨天發布的新聞稿中。此外，我們昨晚在網站上發布了收益報告。

With that, I will turn the call over to today's Denise.

這樣，我將把電話轉給今天的丹尼斯。

Thank you, Brandon, and thank you, everyone, for joining us. Before we get into our call this morning, I'd like to begin by welcoming a new member of our executive team. I'm excited to introduce Jane host that our as our new Senior Vice President and Chief Financial Officer.

謝謝你，布蘭登，也謝謝大家加入我們。在今天早上我們開始通話之前，我想先歡迎我們管理團隊的一位新成員。我很高興地介紹 Jane Host 作為我們新任資深副總裁兼財務長。

Shane brings over 20 years of experience to the leadership of our finance function. Having previously served as CFO of Quaker Houghton, blockchain had only been with us for a month is already having a positive impact. We are happy to have seen onboard with the strong talent that he brings solidifying our leadership team during this transition that Abbott, who served as our interim CFO, has been key in keeping stability and continuity within our finance team.

Shane 為我們的財務職能部門的領導帶來了 20 多年的經驗。先前擔任Quaker Houghton 的財務官，區塊鏈只在我們身邊一個月就已經產生了正面的影響。我們很高興看到他帶來的強大人才在這次過渡期間鞏固了我們的領導團隊，擔任我們臨時財務長的雅培在保持我們財務團隊的穩定性和連續性方面發揮了關鍵作用。

Matt will continue in a leadership role within commerce returning to its previous position of Chief Enterprise Transformation Officer. I would like to express my sincere gratitude to Matt for his tremendous efforts and his leadership during a critical time for our company.

馬特將繼續擔任商業領域的領導職務，並回到先前的首席企業轉型官職位。我謹對馬特在我們公司的關鍵時刻所做的巨大努力和他的領導表示誠摯的感謝。

In our discussion this morning, I will talk about our overall performance and some of the recent business challenges we faced and overcome. Then I'll hand the discussion over to Shane, who will go over our financial performance.

在今天早上的討論中，我將討論我們的整體業績以及我們最近面臨和克服的一些業務挑戰。然後我會將討論交給肖恩，他將審查我們的財務表現。

I'll conclude by sharing our outlook for the third quarter. We will then close the call with a Q&A session to address your questions.

最後，我將分享我們對第三季的展望。然後，我們將透過問答環節來結束通話，以解決您的問題。

In the first quarter, we faced many challenges and the second quarter continued along that course consistent with the demonstrated resiliency of our people. Our team didn't shy away, putting forth tremendous collaboration and leadership in the face of uncertainties, controlling what we could control as we dedicated our focus to driving business performance.

在第一季度，我們面臨許多挑戰，第二季度繼續沿著這條路線前進，這與我們員工所表現出的韌性一致。我們的團隊並沒有迴避，在面對不確定性時發揮了巨大的協作和領導作用，控制了我們可以控制的事情，同時我們專注於推動業務績效。

As the core leadership team faced these challenges, we did so with every new set of core values that were developed with input from across the organization. These values are the foundation of our culture reflecting who we are the company and what we believe they are a key part of our formula for long-term success.

當核心領導團隊面臨這些挑戰時，我們根據整個組織的意見制定了每一套新的核心價值。這些價值觀是我們文化的基礎，反映了我們公司的定位以及我們相信它們是我們長期成功的關鍵部分。

They are simple plain spoken and our presence in every aspect of how we work safety, integrity, partnership, ownership and respect. As you're aware, we recently faced a disruption in our titanium dioxide production at our Altamira Mexico site due to a severe drought in the region.

它們簡單易懂，我們在工作的各個方面都體現出安全、誠信、夥伴關係、主人翁意識和尊重。如您所知，由於該地區嚴重乾旱，我們墨西哥阿爾塔米拉工廠的二氧化鈦生產最近面臨中斷。

While the drought had pronounced business implication, it was also very personal to our team. This was a sudden extreme shift in basic needs for our people and the communities where they live. In response, we worked quickly to provide substantial support for those in need.

雖然乾旱對商業產生了明顯的影響，但對我們團隊來說也非常個人化。這是我們人民及其居住社區的基本需求的突然極端轉變。作為回應，我們迅速開展工作，為有需要的人提供大量支持。

I was amazed at how quickly our people organize and partnered to properly supply potable water, food and other essential needs to those impacted. We formed a cross-functional team that conducted an ongoing assessment of business impact through scenario planning.

我驚訝於我們的人民如此迅速地組織和合作，為受影響的人們提供了適當的飲用水、食物和其他基本需求。我們組建了一個跨職能團隊，透過情境規劃對業務影響進行持續評估。

Together, we determine the best way to meet customer demand. The duration of the downtime at our site was uncertain and the team met regularly to ensure we have held our commitment to our customers by optimizing our TIO. two production circuit.

我們共同確定滿足客戶需求的最佳方法。我們現場的停機時間不確定，團隊定期開會，以確保我們透過優化 TIO 來履行對客戶的承諾。兩個生產電路。

These plans require collaboration and agility with our TT. employees working diligently around the clock with a deep sense of ownership. We take pride in our reputation as a highly reliable TiO2 supplier, and we believe our actions are mere reflection of that. It was through these efforts that we were able to exceed our previous volume expectations with a 16% volume increase from the first quarter.

這些計劃需要與我們的 TT 的協作和敏捷性。員工日以繼夜地工作，具有深厚的主人翁意識。作為高度可靠的鈦白粉供應商，我們為自己的聲譽感到自豪，我們相信我們的行動只是這一點的反映。正是透過這些努力，我們才能夠超越先前的銷售預期，較第一季銷售成長 16%。

This simply was not possible without the fast action, hard work and excellent collaboration of our TT. employees, our customers and our partners in the community, IT and region. For this, I thank our team because of this unexpected production outage.

如果沒有我們 TT 的快速行動、辛勤工作和出色的協作，這根本不可能實現。員工、我們的客戶以及我們在社區、IT 和地區的合作夥伴。為此，我感謝我們的團隊，因為這次意外的生產中斷。

During the second quarter, we incurred about $ 8 million of one-time costs. We anticipate this disruption will also affect our results for Q2 to Q3, which I will explain more when we talk about our outlook later. Even with these difficulties, RTT. team continues to prioritize our strategic relationships with customers and to execute our TT. transformation plan targeting 125 million in cost savings in 2024.

第二季度，我們產生了約 800 萬美元的一次性成本。我們預計這種幹擾也會影響我們第二季到第三季的業績，我將在稍後討論我們的前景時對此進行更多解釋。即使有這些困難，RTT。團隊繼續優先考慮與客戶的策略關係並執行我們的 TT。轉型計畫的目標是到 2024 年節省 1.25 億美元的成本。

By the end of the second quarter, we have reached approximately 100 million in savings compared to the prior year, offsetting price declines for the rest of the year. We anticipate continuing to make strong progress against our plan was year over year comparative saving slightly less than the first half, considering that we commenced our transformation plan in the middle of the third quarter last year.

到第二季末，與前一年相比，我們節省了約 1 億歐元，抵消了今年剩餘時間的價格下降。考慮到我們在去年第三季中期開始實施轉型計劃，我們預計我們的計劃將繼續取得強勁進展，年比節省成本略低於上半年。

Now let's talk about TSS NTSS. We continue to experience a seasonal demand pattern, although there was a slower start to the cooling season in the northern hemisphere's it as quickly warmed up. However, even with this elevated summer season, the market is still affected by excess, discuss our results for TSS as refrigerants, we have updated our sales reporting this quarter to break our refrigerant sales from two separate product categories, Opteon refrigerants, reflecting our low global warming potential offering and three on refrigerants.

現在我們來談談TSS NTSS。我們繼續經歷季節性需求模式，儘管北半球的冷卻季節開始較慢，但很快就變暖了。然而，即使在這個旺盛的夏季，市場仍然受到過剩的影響，討論我們作為冷媒的TSS 的結果，我們更新了本季度的銷售報告，將我們的冷媒銷售從兩個不同的產品類別（Opteon冷媒）中劃分出來，反映了我們的低全球暖化潛力產品和三項關於冷媒的產品。

For the second quarter, Opteon refrigerants continuing to see strong adoption, reflecting double-digit quarterly sales growth both sequentially and year over year, while approaching 60% of our total refrigerant sales.

第二季度，Opteon 冷媒持續廣泛採用，季度銷售額較上季和年比均達到兩位數成長，同時接近我們冷媒總銷售額的 60%。

This growth shows the effects of the U.S. IndyMac and EUS. gas right violations that have progressively lowered the production and importation of high global warming potential refrigerants. Since they have gone into effect. Our Freon refrigerant sales for the second quarter were generally flat from the first quarter with year-over-year double digit declines driven by lower volumes under those regulatory step downs.

這一增長體現了美國 IndyMac 和 EUS 的影響。侵犯天然氣權的行為逐漸減少了高全球暖化潛冷劑的生產和進口。自它們生效以來。我們第二季的氟利昂冷媒銷售額與第一季基本持平，由於監管放寬導致銷量下降，比去年同期出現兩位數下降。

Weaker volumes in Freon refrigerants was further compounded by softer HFC pricing, primarily due to elevated at market HFC inventory levels and a slower start to the cooling season. We attribute these agency inventory levels to higher than expected pre any inventory build in the U.S. and will continue to believe that these market inventory levels will remain elevated.

HFC 定價疲軟進一步加劇了氟利昂冷媒銷售的疲軟，這主要是由於市場 HFC 庫存水平升高以及製冷季節開始較慢。我們將這些機構庫存水準歸因於美國庫存增加之前的預期，並將繼續相信這些市場庫存水準將保持在較高水準。

To further underscore as the U.S. AIM Act enacted its regulatory phase down, we are observing strict adherence and enforcement concerning the regulation. These efforts are evident through the US Department of Commerce's ongoing work to mitigate circumvention of duties and the U.S. Customs and Border Patrol rolls continued activities to restrict illegal importation of refrigerant.

進一步強調，隨著美國《AIM 法案》逐步放鬆監管，我們正在嚴格遵守和執行該法規。美國商務部持續致力於減少規避關稅，美國海關和邊境巡邏隊持續進行限製冷媒非法進口的活動，這些努力就顯而易見。

The APM, we see the continued macro recovery across APN portfolios for sequential double-digit top line growth in both the Advanced Materials and Performance Solutions portfolio in line with expectations. Our corporate expenses were generally in line with expectations as well for the second quarter provided us with various complex business dynamics.

APM 方面，我們看到 APN 投資組合的宏觀經濟持續復甦，先進材料和性能解決方案組合的營收連續兩位數成長，符合預期。我們的公司支出大致符合預期，第二季也為我們提供了各種複雜的業務動態。

The team has remained focused on business performance while remaining grounded in our core values. Before I hand the call over to Shane, I want to recognize our team by highlighting a couple of recent business accomplishments.

團隊始終專注於業務績效，同時堅持我們的核心價值。在將電話轉交給肖恩之前，我想透過強調最近的一些業務成就來認可我們的團隊。

First, we recently received our permit to expand production of Teflon PFA resin at our Washington marks manufacturing site in West Virginia. This was a significant undertaking for the more steam. Our ability to secure a permit was critical as our customers rely on us as the only U.S. based supplier of this material, which is essential for the fabrication of semiconductor chips. I will speak more to the opportunities we see this Teflon PFA later.

首先，我們最近獲得了在西維吉尼亞州華盛頓馬克生產基地擴大 Teflon PFA 樹脂生產的許可。對於更多的蒸汽來說，這是一項重大任務。我們獲得許可證的能力至關重要，因為我們的客戶依賴我們作為這種材料的唯一美國供應商，這對於半導體晶片的製造至關重要。稍後我將詳細討論我們看到 Teflon PFA 的機會。

And second, in June, we released our seventh annual sustainability report, partnering for progress, which outlines Coors progress towards meeting our 2030 Corporate Responsibility commitment goals. Our commitment to sustainability as well as responsible manufacturing is unwavering, and it's reflected in the significant progress that we continue to make in meeting or exceeding our commitments to reducing emissions, innovating to achieve more sustainable products and investing in the communities where we are great specific to our sustainability initiatives.

其次，我們在 6 月發布了第七份年度永續發展報告，《合作共進》概述了 Coors 在實現 2030 年企業責任承諾目標方面取得的進展。我們對永續發展和負責任製造的承諾堅定不移，這反映在我們在履行或超越我們的承諾方面不斷取得的重大進展，包括減少排放、創新以實現更永續的產品以及投資於我們非常具體的社區我們的永續發展措施。

I'm proud to highlight the approval by SPTI., the Science Based Targets initiative of our near term target to cut our Scope one and two greenhouse gas emissions by 60%. In addition to a new scope three emissions target to reduce emissions by 25% per tonne of production by 2030. This rigorous 22 months long process required close engagement between mores and SBTI., including a thorough review of our underlying plans, calculations and methodologies.

我很自豪地強調 SPTI 批准了我們的近期目標，即將範圍一和範圍二溫室氣體排放量減少 60%。此外，還有新的三級排放目標，即到 2030 年將每噸產量的排放量減少 25%。這個長達 22 個月的嚴格流程需要 more 和 SBTI 之間的密切合作，包括對我們的基本計劃、計算和方法進行徹底審查。

The approval by SBTI. reflects our commitment to science, inform and guide our actions as we continue to make me meaningful impact in the global fight against climate change. And now like to hand it over to Shane to walk through our financial results.

SBTI 的核准。體現了我們對科學的承諾，為我們的行動提供資訊和指導，讓我們繼續在全球應對氣候變遷的鬥爭中發揮有意義的影響。現在我想把它交給肖恩來介紹一下我們的財務表現。

Thank you, Denise, and good morning, everyone. First and foremost, I'm very excited to join cores as our new CFO. In my early time. Of course, I've been impressed with the unified direction and the commitment to success of our people, and I'm eager to help move our strategic goals for to create more value for our shareholders.

謝謝你，丹尼斯，大家早安。首先，我非常高興能夠加入 cores，擔任我們的新財務長。在我早期的時候。當然，我們員工的統一方向和對成功的承諾給我留下了深刻的印象，我渴望幫助實現我們的策略目標，為股東創造更多價值。

I joined more because of its industry leading portfolio is operational expertise and it's resilient culture. I'm proud to say that my expectations are aligned with what is being executed. I'm confident that the driver of our people, along with our vast portfolio of industry leading performance chemicals, will ensure the successful delivery of our long-term growth initiatives.

我加入更多是因為其行業領先的產品組合、營運專業知識和彈性文化。我很自豪地說，我的期望與正在執行的事情是一致的。我相信，我們員工的推動力，以及我們領先業界的高性能化學品的廣泛產品組合，將確保我們的長期成長計畫的成功實現。

Moving into our financial results. Our consolidated net sales for the second quarter or approximately $1.5 billion of which were down 6% year over year. This sales decline was largely driven by lower pricing of 6% and portfolio impacts of 1% of which were partially offset by 1% increase in volumes.

進入我們的財務業績。我們第二季的綜合淨銷售額約為 15 億美元，其中年減 6%。銷量下降主要是由於 6% 的定價下降和 1% 的投資組合影響造成的，其中 1% 的銷量成長部分抵消了這一影響。

Our consolidated adjusted EBITDA decreased from 324 million in the prior year to $206 million for the current quarter. This decline was driven by lower pricing cost absorption, free on production and currency impacts. These headwinds were partially offset by ongoing TT. transformation plan benefits, which strategically aligned with our focus on enhancing to the earnings and mitigating cyclical impacts. Second quarter. Adjusted EBITDA also includes a 6 million unallocated items related to third party costs associated with the TT. transformation plan.

我們的綜合調整後 EBITDA 從上一年的 3.24 億美元降至本季的 2.06 億美元。這一下降是由於較低的定價成本吸收造成的，不受生產和貨幣影響。這些不利因素被正在進行的 TT 部分抵消。轉型計劃的好處，這在策略上與我們對提高收益和減輕週期性影響的重點保持一致。第二季。調整後的 EBITDA 還包括與 TT 相關的第三方成本相關的 600 萬個未分配項目。轉型計劃。

We anticipate this amount to approximately the same amount in the third quarter. Our consolidated adjusted net income was $57 million in the current quarter compared to $167 million in the prior year. And our adjusted net income per diluted share was $0.38 in the current quarter compared to $1.10 in the prior quarter. Our corporate expenses were $77 million in the second quarter, which aligns with our exports.

我們預計第三季的金額大致相同。本季我們的綜合調整後淨利為 5,700 萬美元，而前一年為 1.67 億美元。本季調整後每股攤薄淨利潤為 0.38 美元，而上一季為 1.10 美元。第二季我們的公司支出為 7,700 萬美元，與我們的出口相符。

Increased corporate expenses compared to the prior year was primarily due to costs associated with addressing our material weaknesses in internal controls over financial reporting and the implementation of recommendations from the audit committee's internal review.

與前一年相比，公司費用增加主要是由於解決我們在財務報告內部控制方面的重大缺陷以及實施審計委員會內部審查建議所產生的費用。

In total these costs approximated 11 million in the quarter, with the remaining increase in corporate expenses were largely driven by additional litigation costs. Turning to our business segment performance, starting with TT. second quarter TV net sales decreased 5% year-over-year to $673 million.

本季這些成本總計約為 1,100 萬美元，公司支出的其餘成長主要是由額外的訴訟成本推動的。談到我們的業務部門表現，首先是 TT。第二季電視淨銷售額年減 5% 至 6.73 億美元。

This decline was primarily driven by a 7% decrease in price and a 1% impact from foreign exchange, which were partially offset by 3% increase in volumes despite the unplanned downtime at our Altamira Mexico manufacturing site due to the extreme drought in the region, our volumes still grew ahead of expectations.

這一下降主要是由於價格下降7% 和外匯影響1%，儘管我們的阿爾塔米拉墨西哥製造基地由於該地區的極端乾旱而出現計劃外停機，但價格下降3% 被銷量增長3% 部分抵消，我們的銷售成長仍超乎預期。

This was largely due to robust demand in the Asia Pacific and North America compared to the prior year, while T. second quarter adjusted EBITDA decreased 8% to 80 million compared to the prior year. The segment's adjusted EBITDA margin remained flat at 12%.

這主要是由於亞太和北美地區的需求較上年強勁，而第二季調整後 EBITDA 較上年下降 8% 至 8,000 萬。該部門調整後的 EBITDA 利潤率持平於 12%。

Treaties experienced the local pricing declines that I mentioned earlier, as well as currency impacts. But this was partially offset by reduced costs from the TT. transformation plan, which continues its strong execution and is outpacing expectations on a sequential basis to tease net sales increased by 14%, which was driven by 16% of Verizon.

條約經歷了我之前提到的當地定價下降以及貨幣影響。但這部分被 TT 成本降低所抵銷。轉型計畫持續保持強勁執行力，較上季超出預期，淨銷售額成長 14%，其中 Verizon 貢獻 16%。

Our volumes, a strong result given the headwinds we faced due to the ultimate downtime I mentioned before, cities, pricing and foreign exchange impacts each posed a 1% headwind sequentially. Moving now to our TSS segment for the second quarter versus net sales were approximately $513 million, a 2% decrease from the prior year.

考慮到我之前提到的最終停機導致我們面臨的阻力，我們的銷售量是一個強勁的結果，城市、定價和外匯影響均造成了 1% 的阻力。現在轉向我們的 TSS 部門，第二季的淨銷售額約為 5.13 億美元，比前一年下降 2%。

This decline in net sales was driven by lower pricing of 4%, which was partially offset by 2% increase in volumes I shared earlier. Surfaces decrease in pricing was driven by our Freon refrigerants portfolio, which was influenced by elevated HFC inventory levels from excess pre-owned inventory builds prior to 2022, as well as the slower start to the currencies. And to a lesser extent, we did experience lower price in our phone, propellants and other portfolio.

淨銷售額下降的原因是定價下降了 4%，但我之前分享的銷售成長 2% 部分抵消了這一下降。價格表面下降是由我們的氟利昂冷媒產品組合推動的，該產品組合受到 2022 年之前過多的二手庫存增加導致 HFC 庫存水平升高以及貨幣開局較慢的影響。在較小程度上，我們的手機、推進劑和其他產品組合確實經歷了較低的價格。

This is volume growth was driven by our Opteon refrigerants portfolio book, which was fueled by continued adoption in stationery as well as transition in the automotive aftermarket. Also, our RPO and volume growth was complemented by robust propellant demand in our phone, Propel's and other portfolio.

這一銷售成長是由我們的 Opteon 冷媒產品組合推動的，而文具領域的持續採用以及汽車售後市場的轉型推動了這一成長。此外，我們的 RPO 和銷售成長得到了我們手機、Propel 和其他產品組合中強勁推進劑需求的補充。

In the second quarter. Eps as adjusted EBITDA decreased 25% year-over-year to $161 million, resulting in a lower adjusted EBITDA margin of 31% of this decline was primarily driven by lower pricing, increased costs to secure additional near-term CO2 allowances in connection with the US EPA's technology transitions ruling and reduced fixed cost absorption at our Freon refrigerants.

在第二季。調整後 EBITDA 每股盈餘年減 25%，至 1.61 億美元，導致調整後 EBITDA 利潤率降低 31%，其中 31% 的下降主要是由於定價較低、確保與美國環保署的技術轉型主導並降低了我們氟利昂冷媒的固定成本吸收。

Production in connection with lower HFC demand due to regulatory step downs in the United States and the EU on a sequential basis versus a net sales rose by 14%, which was driven by 17% increase in volumes, partially offset by 3% decline in pricing.

由於美國和歐盟監管放鬆，氫氟碳化物需求下降導致產量較上季成長 14%，銷售量成長 17%，部分被定價下降 3% 所抵銷。

The increase in volumes reflects seasonal trends in refrigerants as well as stronger propellant demand in the phone, propellant and other portfolio sequentially. Now turning to APM. Net sales for APM were $339 million in the current quarter was down 12% compared to the prior year.

銷售量的增加反映了冷媒的季節性趨勢以及手機、推進劑和其他產品組合中推進劑需求的強勁成長。現在轉向 APM。本季 APM 的淨銷售額為 3.39 億美元，比去年同期下降 12%。

This decline was due to decreases in price volume and currency of 7%, 4% and 1%, respectively. The price decline was primarily influenced by salt market dynamics across the Advanced Materials portfolio as well as shifts in product mix within the Performance Solutions portfolio compared to the prior year, APMs volume decline was concentrated in the Advanced Materials portfolio, which reflected weaker demand in economically sensitive end-markets.

這一下降是由於物價量和貨幣量分別下降了 7%、4% 和 1%。價格下降主要受到先進材料產品組合的鹽市場動態以及性能解決方案產品組合與上一年相比的變化的影響，APM 銷量下降集中在先進材料產品組合中，這反映出經濟需求疲軟。市場。

APM achieved adjusted EBITDA of $ 45 million in the second quarter, which marks a significant decline compared to the prior year. The decrease was primarily driven by lower pricing, currency and impacts from other anchor.

APM 第二季調整後 EBITDA 為 4,500 萬美元，較上年同期大幅下降。下降的主要原因是定價、貨幣下降以及其他錨點的影響。

These additional items also impacted APMs adjusted EBITDA margin, which decreased eight percentage points to 13% sequentially. Apm net sales increased by 13%, which was driven by 16% rise in volumes, but tempered slightly by 2% decline in pricing and a 1% currency headwind.

這些額外項目也影響了 APM 調整後的 EBITDA 利潤率，該利潤率比上一季下降了 8 個百分點，至 13%。Apm 淨銷售額成長了 13%，這是由銷量成長 16% 推動的，但由於定價下降 2% 和 1% 的貨幣逆風而略有放緩。

APM higher volumes were largely driven by a modest recovery in economically sensitive in markets across the portfolio. Separately, the company's other segment had net sales and adjusted EBITDA of $13 million and 3 million, respectively in the current quarter.

APM 交易量增加主要是由於整個投資組合中經濟敏感市場的溫和復甦。另外，該公司其他部門本季的淨銷售額和調整後 EBITDA 分別為 1,300 萬美元和 300 萬美元。

Turning now to our balance sheet and liquidity as of June 30th, 2024, from food, $604 million in unrestricted cash and cash equivalents of $852 million in revolver capacity, our net leverage ratio increased to 4.4 times in the second quarter, while our net leverage ratio remains elevated due to the market cycle, we remain in compliance with our covenants, and we did not draw on our revolver during the quarter.

現在轉向我們截至2024 年6 月30 日的資產負債表和流動性，其中包括食品、6.04 億美元的無限制現金和現金等價物、8.52 億美元的循環能力，我們的淨槓桿率在第二季度增加至4.4 倍，而我們的淨槓桿率由於市場週期，比率仍然較高，我們仍然遵守我們的契約，並且我們在本季度沒有動用左輪手槍。

The Company used $620 million of operating cash flow in the second quarter of 2024 was $687 million more than the same quarter last year. As we anticipated this higher cash usage was due to the release of 600 to 6 million in restricted cash and cash equivalents, which was reflective of the company's 2023 contribution to the water district settlement fund, including interest.

該公司2024年第二季使用了6.2億美元的營運現金流，比去年同期增加了6.87億美元。正如我們預期的那樣，現金使用量增加是由於釋放了 6 億至 600 萬限制性現金和現金等價物，這反映了該公司 2023 年對水區結算基金的貢獻（包括利息）。

The settlement became effective in May 2024, where the Company no longer made and it's reversionary interest in the fund for the company spent $73 million on capital projects in the second quarter of 2024, generally in line with expectations compared to $58 million in the prior year, with a difference in spending being driven by overall payment time and also the company distributed 38 million of dividends to shareholders in the quarter.

和解協議於2024 年5 月生效，公司不再支付該基金的利息，因為該公司在2024 年第二季度在資本項目上花費了7,300 萬美元，與上一年的5,800 萬美元相比，總體符合預期，支出差異是由整體付款時間驅動的，而且該公司在本季度向股東派發了 3,800 萬股股息。

We anticipate our unrestricted cash and cash equivalents will remain at similar level for the rest of the year. We project some working capital inflows in the second half as we work to reduce inventory and we focus on timely payments from our customers.

我們預計今年剩餘時間我們不受限制的現金和現金等價物將保持在類似水平。我們預計下半年會有一些營運資金流入，因為我們努力減少庫存，並專注於客戶的及時付款。

Overall, we're confident in our current liquidity as well as our future cash flow capabilities, which will assist with creating further balance sheet capacity. As we look ahead to the rest of 2024, we do not anticipate any liquidity concerns that would impact compliance with our banking covenants related to capital allocation.

總體而言，我們對當前的流動性以及未來的現金流能力充滿信心，這將有助於創造進一步的資產負債表能力。展望 2024 年剩餘時間，我們預期不會有任何流動性問題，進而影響遵守與資本配置相關的銀行契約。

Consistent with our values and sustainability goals. I wanted to take a moment to highlight our key priorities remain focused on driving shareholder value. First, we will pursue focused investments in growth initiatives to enhance our portfolio.

符合我們的價值觀和永續發展目標。我想花點時間強調我們的主要優先事項仍然集中在推動股東價值。首先，我們將專注於成長計劃，以增強我們的投資組合。

Second, we are committed to improving our leverage profile. Third, we will responsibly resolve contingent legal and or accrued environmental liabilities on terms and bases deem to be in the best interest of the company and our stakeholders.

其次，我們致力於改善槓桿狀況。第三，我們將根據認為符合公司和利害關係人最佳利益的條款和基礎，負責任地解決或有法律和/或應計環境責任。

And finally, and equally important, we will provide cash to our shareholders through our quarterly dividends. Separately as an update to the remediation of our material weaknesses, we have provided disclosure and Item four of our Form 10 Q, though I want to highlight a couple of items. During the second quarter, we completed the modification of processes and procedures with respect to managing ethics complaints. A

最後，同樣重要的是，我們將透過季度股息向股東提供現金。另外，作為我們重大缺陷的補救的更新，我們提供了揭露和表格 10 Q 的第四項，但我想強調幾個項目。第二季度，我們完成了管理道德投訴的流程和程序的修改。一個

lso, we implemented enhancements to our controls over the verification of vendor master file changes to prevent unauthorized cash disbursements. These enhancements require a sufficient period of time to evaluate and test for those controls are operating effectively. Overall, we continue to dedicate significant resources towards these efforts. We remain committed to their timely remediation.

此外，我們也加強了對供應商主文件變更驗證的控制，以防止未經授權的現金支付。這些增強功能需要足夠的時間來評估和測試這些控制措施是否有效運作。總體而言，我們繼續為這些努力投入大量資源。我們仍然致力於及時補救。

To conclude, while the quarter's results were not what we wanted, I am encouraged by several aspects of our performance to be had solid demand and continues to have strong execution against this transformation plan. Pss saw double digit growth in Opteon year over year, and macro recoveries in APM are providing solid business momentum with this foundation.

總而言之，雖然本季的業績沒有達到我們想要的結果，但我對我們業績的幾個方面得到了堅實的需求感到鼓舞，並繼續對這一轉型計劃進行強有力的執行。Pss 的 Opteon 年成長率達到兩位數，而 APM 的宏觀復甦為此基礎提供了堅實的業務動力。

On top of our focus on sustainability growth initiatives, I am confident that our approach is the right foundational strategy to create shareholder value. Denise, back over to you.

除了我們對永續成長計畫的關注之外，我相信我們的方法是創造股東價值的正確基礎策略。丹妮絲，回到你身邊。

Thank you, Shane. Let's look ahead to the next quarter. Consistent with recent quarters, we are providing a view of the upcoming quarter on a consolidated basis. We expect a sequential low to mid single digit decline in net sales continuing into the third quarter with a consolidated adjusted EBITDA anticipated to be down high single digits.

謝謝你，謝恩。讓我們展望下個季度。與最近幾季一致，我們將在綜合基礎上提供即將到來的季度的看法。我們預計第三季淨銷售額將連續出現低至中個位數下降，綜合調整後 EBITDA 預計將下降高個位數。

Our sales forecast reflects the impact of unplanned downtime at our TT. site in Altamira, Mexico seasonality, paired with weaker Freon refrigerant pricing and TSS and partial offset from a continued modest recovery in APM for the third quarter.

我們的銷售預測反映了 TT 計劃外停機的影響。墨西哥阿爾塔米拉工廠的季節性因素，加上氟利昂冷媒價格和 TSS 的疲軟，以及第三季 APM 持續溫和復甦的部分抵消。

These sales assumptions anticipate that continued strong adoption of Opteon refrigerants projecting double digit year over year growth and APM Performance Solutions portfolio showed strong year-over-year growth in TT.

這些銷售假設預計，Opteon 冷媒的持續強勁採用預計將實現兩位數的同比增長，而 APM 性能解決方案產品組合則顯示出 TT 的強勁同比增長。

While we haven't seen major catalyst indicating a broad TiO2 recovering, demand remained stable as we enter the third quarter had we not experienced downtime in the second quarter due to the severe drought and Altamira. We believe our third quarter sales will be flat to the prior year, considering adjusted EBITDA for TT.

雖然我們還沒有看到表明鈦白粉廣泛復甦的主要催化劑，但如果我們沒有在第二季度經歷嚴重乾旱和阿爾塔米拉造成的停機，進入第三季時需求仍保持穩定。考慮到 TT 調整後的 EBITDA，我們相信第三季的銷售額將與去年同期持平。

We also anticipate that one-time costs associated with the production downtime are expected to range between $15 and $20 million in the third quarter. We do not expect the impact of the Altamira downtime to extend beyond the third quarter. We anticipate a sequential reduction in corporate expenses in Q3 as we make thoughtful choices on spending and as we made demonstrable progress on the remediation of our material weaknesses in internal controls over financial reporting and the adoption of other recommendations from the audit committee's internal review.

我們也預計，第三季與生產停機相關的一次性成本預計將在 1500 至 2000 萬美元之間。我們預計阿爾塔米拉停機的影響不會持續到第三季之後。我們預計第三季的公司開支將連續減少，因為我們在支出方面做出了深思熟慮的選擇，並且我們在糾正財務報告內部控制方面的重大缺陷方面取得了明顯進展，並採納了審計委員會內部審查的其他建議。

Yes, moving to the second half of 2024, I want to reiterate my priorities to drive shareholder value. one take cost out and APM building on what we have done in TT. as well as our functional and corporate overhead and to invest in our businesses where we have significant opportunities to grow.

是的，進入 2024 年下半年，我想重申推動股東價值的優先事項。我們在 TT 中所做的事情的基礎上消除了成本和 APM。以及我們的職能和公司管理費用，並投資於我們有重大發展機會的業務。

We believe that these priorities are essential for more future success, leveraging our operational expertise and innovation edge to our advantage of our businesses. Leaning into our advantages in innovation. one of the key growth markets in front of us is in supporting the advancement in artificial intelligence and high performance computing.

我們相信，這些優先事項對於未來取得更多成功至關重要，利用我們的營運專業知識和創新優勢來發揮我們的業務優勢。發揮我們的創新優勢。我們面前的關鍵成長市場之一是支援人工智慧和高效能運算的進步。

Both our TSS, Opteon refrigerant and APM performance solution portfolios have opportunities in this space, which is Dr In our focused investment in the businesses last quarter. In my prepared remarks, I mentioned the advantages of Opteon to P50 in new fluid for use in two phase emerging coil with liquid cooling being more effective means to pull data center hardware than air-quality.

我們的 TSS、Opteon 冷媒和 APM 性能解決方案組合在這個領域都有機會，這是我們上季度重點投資的業務。在我準備好的演講中，我提到了 Opteon 至 P50 在用於兩相新興線圈的新流體中的優勢，其中液體冷卻是比空氣質量更有效的拉動數據中心硬體的手段。

We believe Opteon to P50 is an innovative solution back to Al Unitive liquid cooling technology. Opteon to P50 emerging cooling provides clear benefits the potential to reduce the space needed for data centers facilities by approximately 60%, enabling calling energy savings of up to 90% and nearly eliminating water console function in most climate.

我們相信 Opteon to P50 是 Al Unitive 液體冷卻技術的創新解決方案。Opteon 到 P50 的新興冷卻技術具有明顯的優勢，可以將資料中心設施所需的空間減少約 60%，從而節省高達 90% 的能源，並且在大多數氣候下幾乎消除水控制台功能。

These benefits delivered tangible cost savings, which was evident in a recent study that we participated in with liquid stack and Cisco Hennessy, which showed that Opteon to P50 immersion cooling solution at the low total cost of ownership compared to the other calling options Opteon to T. 50 at a cost advantage of up to 40% of the next best liquid cooling alternatives.

這些優勢帶來了切實的成本節約，這一點在我們最近與Liquid Stack 和Cisco Hennessy 一起參與的一項研究中得到了證明，該研究表明，與其他呼叫選項Opteon to T 相比，Opteon to P50 浸沒式冷卻解決方案的總擁有成本較低。 . 50 的成本優勢高達次優液體冷卻替代品的 40%。

We continue to plan the launch of Opteon two P 50 by mid 2026 and see this as an opportunity to meaningfully participate in the overall data center liquid cooling market. As we progress towards commercialization, we remain focused on ensuring that our product is safe for use throughout its lifecycle and make the appropriate regulatory registration requirements in the markets that we wanted.

我們繼續計劃在 2026 年中期推出 Opteon 2 P 50，並將其視為有意義地參與整個資料中心液體冷卻市場的機會。隨著我們向商業化邁進，我們仍然專注於確保我們的產品在整個生命週期中可以安全使用，並在我們想要的市場中提出適當的監管註冊要求。

Mr. We are in the qualification process with key hyperscalers, server and chip manufacturers. We see uptown to P50 as an essential solution for efficiently and effectively pulling server chip hardware, specifically high-performance chips and GPU hardware that will be instrumental in supporting artificial intelligence competing sources, which are more energy intensive nature. These qualification period take time to complete.

先生，我們正在與主要的超大規模供應商、伺服器和晶片製造商進行資格認證。我們認為從住宅區到 P50 是高效、有效地拉動伺服器晶片硬體的重要解決方案，特別是高性能晶片和 GPU 硬件，它們將有助於支持人工智慧競爭來源，這些來源是能源密集型的。這些資格期需要時間才能完成。

We look forward to providing updates as we progress in future periods . Our performance solution portfolio and our APM segment is also enabling the high-performance computing market with our Teflon PFA resin of critical material for semiconductor manufacturing, which has expanded opportunity in the US enabled by the US chips and science act as the only US-based PSA resin manufacture a secure domestic semiconductor supply chain is not complete without our high-grade Teflon PFA resin.

我們期待在未來的進展中提供更新信息。我們的性能解決方案組合和我們的APM 部門也透過我們用於半導體製造的關鍵材料Teflon PFA 樹脂為高效能運算市場提供支持，這擴大了在美國的機會，這得益於美國晶片和科學作為唯一一家總部位於美國的公司如果沒有我們的高等級 Teflon PFA 樹脂，PSA 樹脂製造安全的國內半導體供應鏈就不完整。

Teflon PFA is an absolute requirement to avoid contamination in the chip manufacturing process. It's used throughout of fabs infrastructure from fluid delivery in filtration system to flow meters and wafer handling. In other words, it is our high purity resin that enables the ultra clean environment needed for advanced chip production.

Teflon PFA 是避免晶片製造過程中污染的絕對要求。它用於整個晶圓廠基礎設施，從過濾系統中的流體輸送到流量計和晶圓處理。換句話說，正是我們的高純度樹脂實現了先進晶片生產所需的超潔淨環境。

Teflon PFA helps to ensure fab reliability and up time as well as the safety high yield production of semiconductor chips to emphasize our focus on investing for growth in this area. As I mentioned earlier, we recently obtained a permit for our muni finished Teflon PFA production expansion at our Washington works manufacturing site in West Virginia.

Teflon PFA 有助於確保晶圓廠的可靠性和正常運行時間以及半導體晶片的安全高產量生產，以強調我們對這一領域成長的投資重點。正如我之前提到的，我們最近獲得了在西維吉尼亞州華盛頓工廠生產基地擴建市政成品 Teflon PFA 生產的許可證。

This has been a key priority for APM leadership team over the last year, and I want to acknowledge those on the core team who worked hard to complete this project and the strong support we received throughout the value chain.

這是 APM 領導團隊去年的首要任務，我要感謝那些為完成專案而努力工作的核心團隊成員，以及我們在整個價值鏈中獲得的大力支持。

Our Teflon PFA product continues to be sold out and we look forward to starting operations, which we anticipate will commence by early September. We're excited about being able to serve our customers in this market and the long term growth prospects for Teflon PFA.

我們的 Teflon PFA 產品繼續銷售一空，我們期待著開始運營，預計將於 9 月初開始運營。我們很高興能夠為這個市場的客戶提供服務，並看到 Teflon PFA 的長期成長前景。

At Morris, we are passionate about driving shareholder value through innovation, specifically contributing to advancement in artificial intelligence and high performance computing. These innovative advances are just a few of the developments in TSYS's Opteon refrigerants and APM of home and solutions portfolio LEOs.

在莫里斯，我們熱衷於透過創新推動股東價值，特別是為人工智慧和高效能運算的進步做出貢獻。這些創新進步只是 TSYS 的 Opteon 冷媒以及家用 APM 和解決方案組合 LEO 的部分發展。

They're driving growth. In closing, while we exit a challenging quarter, we continued to build upon strong business fundamentals by solidifying our management team, continuing to drive costs out of the business, investing for growth, pursuing disciplined capital allocation and building upon a corporate culture that reflects the core values that I highlighted earlier.

他們正在推動成長。最後，雖然我們退出了一個充滿挑戰的季度，但我們透過鞏固我們的管理團隊、繼續降低業務成本、投資成長、追求嚴格的資本配置以及建立反映我之前強調的核心價值。

It is our people that make more who we are, and I want to thank our dedicated global team of 61 hundred employees for their commitment to our customers and executing with operational excellence.

正是我們的員工造就了我們，我要感謝我們由 6100 名員工組成的敬業全球團隊，感謝他們對客戶的承諾以及卓越的營運。

We will now open the lines to take your questions.

我們現在將開通熱線回答您的問題。

At this time, if you would like to ask a question, press star then the number one on your telephone keypad. We ask that you please limit your questions to one and one follow-up. Our first question will come from the line of John McNulty with BMO Capital Markets. Please go ahead.

此時，如果您想提問，請按星號，然後按電話鍵盤上的數字 1。我們要求您將問題限制在一項又一項的後續問題上。我們的第一個問題將來自蒙特利爾銀行資本市場部的約翰·麥克納爾蒂 (John McNulty)。請繼續。

Good morning. Thanks for taking my taking my question and again, congratulations on the roll it forward to working with you on those jobs. Bill, had a question on the TSS business on obviously the free on drag in terms of pricing around some of the inventory.

早安.感謝您提出我的問題，再次恭喜您能夠與您一起完成這些工作。Bill 對 TSS 業務有一個疑問，顯然，圍繞某些庫存的定價方面存在明顯的自由拖累。

I don't know figures pre-stocking ahead of I know it's kind of dealing with the destock clearly putting some some real pressure on the on the profitability, the business. I guess it sounds like you have some conviction that this is going to end at the end of the year. I guess. Can you help us to understand that a little bit better and how to think about the inflection point coming?

我不知道提前庫存的數字，但我知道這是在處理去庫存，這顯然給盈利能力和業務帶來了一些真正的壓力。我想聽起來你確信這將在今年年底結束。我猜。您能否幫助我們更好地理解這一點以及如何思考即將到來的轉折點？

And then I guess in addition to that, maybe just a follow-up question would be worth in the past, we've been pretty low used to seeing, of course, sell your allocations of. And yet at this time around, you actually ended up having to buy extra allocation and there was a cost to wait for you. So I guess can you help us to understand that dynamic and what the magnitude of that actually was?

然後我想除此之外，也許在過去只是一個後續問題是值得的，當然，我們很少習慣於看到出售您的分配。然而在這個時候，你實際上最終不得不購買額外的配額，並且有一個成本等著你。所以我想你能幫助我們理解這種動態以及它的實際大小嗎？

Yes, for sure. Thanks, John, for the questions on. First of all, yes, we are seeing in significantly depressed pricing in HFC. on your inventories that are at a high level. And you know, we are on with the quota step downs that are you said you asked do we have confidence in this is going to end with the quota step downs that are occurring that will be occurring.

是的，當然。謝謝約翰提出的問題。首先，是的，我們看到 HFC 的價格大幅下跌。您的庫存處於高水準。你知道，我們正在減少配額，你說你問我們是否有信心這將隨著正在發生的配額減少而結束。

We definitely see that happening. We have experience with that with our 22. And we're also seeing in Europe, it's a smaller part of our markets or you don't see that as dramatically, but it's absolutely happening in Europe. It's really it's really part of the mechanism. The phase-down is really working.

我們肯定會看到這種情況發生。我們的 22 人有這方面的經驗。我們在歐洲也看到，它只占我們市場的一小部分，或者你看不到那麼明顯，但這絕對發生在歐洲。這確實是該機制的一部分。逐步減少確實有效。

And I want to bring us back to, you know what our strategy is really about driving our Opteon growth. And we had year over year double digit growth and also sequential double-digit growth, and we've had no price deterioration.

我想讓我們回到，您知道我們推動 Opteon 成長的真正策略是什麼。我們實現了同比兩位數成長和環比兩位數成長，而且價格沒有惡化。

And so we think about that, right? We've already we've always said that we have stepped down in pricing when it comes to auto OEMs. So you can see the impact of other segments and like stationary and automotive aftermarket, which I think is, you know, I really a big statement on you. See Your other question was around just quote and why this this year. And I would say this is a this year issue.

所以我們會考慮這一點，對嗎？我們一直說，在汽車原始設備製造商方面，我們已經降低了定價。所以你可以看到其他細分市場的影響，例如固定和汽車售後市場，我認為，你知道，我對你來說確實是一個重要的聲明。請參閱您的其他問題只是引用以及為什麼今年這樣。我想說這是今年的問題。

No, we quota is always a part. As you said, you know, we sell, we also buy. We have by we have bought in the past this year is different and it really is caused by the technology on. So when you think about what our plan was coming into the year, that really flipped because we don't while we're still seeing tremendous growth, the growth actually would have been stronger.

不，我們的配額始終是一部分。正如你所說，你知道，我們出售，我們也購買。我們過去購買的產品今年有所不同，這確實是由技術造成的。因此，當你考慮我們今年的計劃時，情況確實發生了逆轉，因為我們在看到巨大增長的同時卻沒有這樣做，增長實際上會更強勁。

But we're seeing that there is still demand for HFCs. And for everybody for every unit of Opteon, you actually need to you can own for every for every unit of Opteon, it actually is one unit of Freon. So it's a massive impact. So in order to meet customer demand, we're out in the market and we bought quota in the second quarter and we will during this year. But again, it's really tied to this delay in the technology transition.

但我們看到對氫氟碳化合物的需求仍然存在。對於每個人的每個單位 Opteon，您實際上需要為每個單位的 Opteon 擁有，它實際上是一個單位的氟利昂。所以這是一個巨大的影響。因此，為了滿足客戶需求，我們進入市場，在第二季購買了配額，今年我們也會這樣做。但同樣，這確實與技術轉型的延遲有關。

Got it. Okay. No, that's that's helpful. And then on maybe we can just shift over to the to go to platform. So um, obviously a lot of noise around Altamira, but it does seem like the the overall TiO2 market. Directionally, if you took out from your out of the equation, we actually did a little bit better than maybe expected.

知道了。好的。不，這很有幫助。然後也許我們可以轉移到去平台。所以，嗯，顯然阿爾塔米拉周圍有很多噪音，但它看起來確實是整個 TiO2 市場。從方向上來說，如果你從等式中剔除，我們實際上做得比預期的要好一些。

So I guess can you speak to the markets that you're seeing right now and how you think they progress over the next 12 months, just given which should be improving coatings market as we look out over the next 12 months, potential tariffs in certain regions? I guess, can you can you help us to think about how you see that market playing out over again the next 12 months?

因此，我想您能否談談您現在看到的市場以及您認為未來 12 個月的進展情況，因為我們展望未來 12 個月，塗料市場應該會有所改善，某些領域的潛在關稅地區？我想，您能幫助我們思考一下您如何看待未來 12 個月的市場趨勢嗎？

Sure. Yes. I mean, right now I would but I would say is we see stable demand and actually going into the third quarter, we could have sold more and we believe we could have some similar as sales as we did in the third quarter of '23.

當然。是的。我的意思是，現在我會說，但我想說的是，我們看到了穩定的需求，實際上進入第三季度，我們本可以銷售更多，我們相信我們可以有一些與23 年第三季度類似的銷售。

We definitely we've seen the bottom. The bottom is here on. We have confidence with on the potential for a Fed interest rate cuts in September, and we think that can then bring in some of your confidence to consumers as we end the year on.

我們肯定已經看到底部了。底部就在這裡。我們對聯準會 9 月降息的可能性充滿信心，我們認為這可以在年底時給消費者帶來一些信心。

We don't see a major catalyst right now. But as I said, the potential interest rate drop in also on the tariffs in Europe are also going to be going to going to help us as well. There is a lot of inventory that was the imported ahead of those. But we definitely see as we ended the year, we're going to start seeing some money Benton in Europe as well.

我們目前沒有看到主要的催化劑。但正如我所說，歐洲關稅的潛在利率下降也將對我們有所幫助。有大量庫存是在此之前進口的。但我們肯定會看到，在今年結束時，我們也將開始在歐洲看到本頓的一些資金。

Great. Thanks very much for the color.

偉大的。非常感謝你的顏色。

Our next question comes from the line of Mike Leithead with Barclays. Please go ahead.

我們的下一個問題來自巴克萊銀行的 Mike Leithead。請繼續。

Great. Thanks. Good morning, team. And as soon as they appreciate the increased disclosure around the TNFs US product breakouts earned this quarter. That's very helpful. On first question, I wanted to follow up on the HFC market. Can you just help us better contextualize HFC pricing? It's obviously tracking lower. Com was the more people thought.

偉大的。謝謝。早上好，團隊。一旦他們意識到本季 TNF 美國產品突破的揭露增加。這非常有幫助。關於第一個問題，我想跟進HFC市場。您能否幫助我們更了解 HFC 定價的背景？顯然它正在走低。更多人想到的是com。

But just where are we in pricing if you were to look over the past couple of years, so where are we relative to the historical context? And how comfortable are you that this starts to bottom out here as we go to the back half of this year?

但如果你回顧過去幾年，我們的定價處於什麼位置，那麼我們相對於歷史背景又處於什麼位置呢？當我們進入今年下半年時，您對這種情況開始觸底感到滿意嗎？

Yes. I mean that pricing is elevated, I'll say, versus where it's been in prior year, but significantly lower than our expectations on. As I said, in response to John's questions, we definitely see that there's going to be a turnaround there.

是的。我的意思是，與去年相比，定價有所提高，但明顯低於我們的預期。正如我所說，在回答約翰的問題時，我們肯定會看到情況將會好轉。

I mean, the whole on a philosophy around the quota reduction is going to drive more scarcity when the quotas are we do. So we definitely see that turning around. It's been a pattern, and we sold our '22. We're seeing in Europe now where Europe is more advanced based on inflows in this in the phase down.

我的意思是，當我們實行配額時，圍繞配額減少的整個理念將導致更多的稀缺。所以我們肯定會看到這種情況的轉變。這是一種模式，我們賣掉了 '22。我們現在在歐洲看到，根據逐步減少的資金流入，歐洲更加先進。

Great. That's helpful. And then I just wanted to ask on debt leverage, maybe for Sean and good. Can you speak to the cash you expect to generate in the back half of this year? Just where do you big picture? I want to get was leverage before on utilizing cash received some more discretionary earnings?

偉大的。這很有幫助。然後我只是想問債務槓桿，也許是為了肖恩和好。您能談談您預計今年下半年產生的現金嗎？你在哪裡看到大圖？我想知道在利用現金之前槓桿是否獲得了更多可自由支配的收益？

Yes, thanks, Mike. As I've indicated in the script, we see cash balances being stable in the latter half year. Similar to that side, you're indicating some cash inflows from working capital as we work to improve collections as well as working down some of the inventory on that side as a long-term target, we are targeting to get below three times sustainably, but such will take some time as we improve our earnings coming out of where I would say it is your trough levels and hopefully the markets improve appear in the near future.

是的，謝謝，麥克。正如我在腳本中指出的那樣，我們看到下半年現金餘額保持穩定。與這一方面類似，您指出了來自營運資金的一些現金流入，因為我們努力改善收款，並作為長期目標減少該方面的一些庫存，我們的目標是可持續地低於三倍，但這需要一些時間，因為我們的收益會從我所說的低谷水平提高，希望市場在不久的將來會有所改善。

Great. Our next question comes from the line of John Roberts with Matthew Holt. Please go ahead .

偉大的。我們的下一個問題來自約翰·羅伯茨和馬修·霍爾特的對話。請繼續。

Thanks. Congrats on getting me or Teflon permit environment, governmental permits here before you launch up to your on p. to 50 in, I guess, mid 2026 for you're going to need a similar permanent. We're going to go through a similar type process for that from the PSA permitted.

謝謝。恭喜您在啟動您的 on p 之前獲得我或 Teflon 許可環境、政府許可。我想，到 2026 年中期，你將需要一個類似的永久頭髮，到 50 歲。我們將針對 PSA 允許的情況執行類似的流程。

Definitely really exciting for us on related to on the Opteon p. to 50. And clearly, we're going to any comments on where ever wherever we want to sell on. We're going to need to get that product registration and permit. So there are things that we're working on in, you know, all the countries where we want to sell and then Altamira is a pretty important asset. Is there anything you can do to make that plant more resistant to further drops?

Opteon p 的相關內容絕對讓我們感到興奮。到 50。顯然，我們會針對我們想要在任何地方出售的任何評論。我們需要獲得該產品的註冊和許可。因此，我們正在所有我們想要出售的國家/地區進行一些工作，而阿爾塔米拉是一項非常重要的資產。你能做些什麼讓植物更能抵抗進一步的跌落嗎？

Yes. Good question. I mean, hey, we never take a good crisis to miss a great process to improve. So we actually did substantial work as we entered this crisis to look at how we can reduce our need and our water usage. So to really great effort by our engineering team. So that's one thing, and we are continuing to work on that. On the other thing is we have some other engineering solutions that we're pursuing locally ourselves and also with some the local government.

是的。好問題。我的意思是，嘿，我們永遠不會因為一場好的危機而錯過一個偉大的改進過程。因此，在進入這場危機時，我們實際上做了大量工作來研究如何減少我們的需求和用水量。我們的工程團隊付出了巨大的努力。所以這是一回事，我們正在繼續努力。另一方面，我們還有一些其他的工程解決方案，我們自己也在當地尋求這些解決方案，也與一些地方政府合作。

And then thirdly, we do have options relative to supply chain, what kind of inventory we keep on during those periods, several going to be on deploying all of those strategies. It's certainly a key focus for us as to never have that situation.

第三，我們確實有與供應鏈相關的選擇，在這些時期我們保留什麼樣的庫存，有幾個將部署所有這些策略。這當然是我們關注的重點，因為永遠不會出現這種情況。

Thank you.

謝謝。

Our next question comes from the line of Josh Spector with UBS. Please go ahead.

我們的下一個問題來自瑞銀集團的 Josh Spector。請繼續。

Hi, good morning. A couple of questions to follow up on TSS. I guess I'm somewhat confused with the commentary around fixed cost absorption being a headwind and Freon to hum. Basically you're saying demand is slightly higher than you expected and you're buying quota on the other hand and inventories are higher.

嗨，早安。有幾個問題需要跟進 TSS。我想我對關於固定成本吸收是逆風和氟利昂嗡嗡聲的評論有些困惑。基本上，您是說需求略高於您的預期，另一方面您正在購買配額，庫存較高。

And I guess your comments seem to indicate that you're saying it's down because of the step down. I guess we're going to have been a planned impact that you could tried to mitigate or work through. So can you talk through what's going on there and maybe help us size what that impact is 2Q, 3Q, the fixed cost absorption for free on and why that is a headwind?

我想你的評論似乎表明你說它是因為下台而下降的。我想我們將是一個有計劃的影響，你可以嘗試減輕或解決。那麼您能否談談那裡發生的事情，也許可以幫助我們衡量第二季、第三季的影響，免費吸收固定成本以及為什麼這是一個阻力？

That's correct. Yes. I mean, just because when we say that demand demand for it's up year over year, it's actually down on rate, as you think about the quota step down is actually down. So that's really what's driving the fixed cost absorption issue in that product line.

這是正確的。是的。我的意思是，僅僅因為當我們說需求逐年上升時，它實際上是在下降，正如你認為配額下降實際上是下降的。因此，這確實是此產品線中固定成本吸收問題的驅動因素。

Okay. Yes. I guess my expectation would be that was expected, and I guess maybe we should have expected it. And I don't know if my line is breaking up for yours, but maybe you're not able to hear me completely, but I'll try again at a high level just asked around TSS, but within two 2Q 3Q, that a number of unique things going on this year through and pricing side, I guess whatever issues you recall though, in terms of one-time costs impacting you guys you said the quarter by I don't know if this fixed cost absorption thing is more of a 2024 a longer-term issue.

好的。是的。我想我的期望是預期的，而且我想也許我們應該預料到它。我不知道我的線路是否會因您的線路而中斷，但也許您無法完全聽到我的聲音，但我會在高級別上再次嘗試，只是在 TSS 周圍詢問，但在兩個 2Q 3Q 內，今年在定價方面發生了許多獨特的事情，我想無論您記得什麼問題，就影響你們的一次性成本而言，您說這個季度我不知道這種固定成本吸收的事情是否更多a 2024 年是一個長期問題。

You have some high your costs materially, you're buying on Opteon to fill the gap until you get Corpus. So no demand improvement that go from 24 to 25, how much is EBITDA helped from some of these things? The beta for is not the right way to think about this?

您的物質成本較高，因此您購買 Opteon 來填補空白，直到您獲得 Corpus。因此，需求沒有從 24 提高到 25，其中的一些措施對 EBITDA 有多大幫助？Beta 版不是思考這個問題的正確方法嗎？

Yes. I mean that there are a number, as we've talked about before, there's a number of things that are impacting our cost in TSS. Some of them are one-time on some of them will be ongoing. So no, from a corporate expansion perspective, you are aware, we are we have as additional all of the costs associated with capital that we are incurring this year.

是的。我的意思是，正如我們之前討論過的，有很多因素正在影響我們的 TSS 成本。其中一些是一次性的，另一些將持續進行。所以，不，從企業擴張的角度來看，您知道，我們今年承擔了與資本相關的所有額外成本。

We also have some additional volume that we're buying from our JV partner in China, which when we have this product online, you'll see that drop in price I'm sorry, costs going into 2025. We expect it two year ramp of that plan. We're adding 40% capacity on the the fixed cost absorption on depending on what happens.

我們還從中國的合資合作夥伴那裡購買了一些額外的數量，當我們在網上提供該產品時，您會看到價格下降，抱歉，成本將持續到 2025 年。我們預計該計劃將在兩年內實現。根據具體情況，我們將在固定成本吸收的基礎上增加 40% 的產能。

I mean, we had incident we had inventory of our Freon product. And depending on what happens with demand, it's either going to be a tailwind or a dollar remain a headwind. But as you on and trying to think of the other, the other one is quota, we believe that that is going to be more opportunistic versus on this year. It was a headwind, and that was specifically related to the technology transition. Does that answer your question, Josh?

我的意思是，我們有氟利昂產品庫存。根據需求的變化，美元要么成為順風，要么仍然成為逆風。但當你繼續思考另一個問題時，另一個問題是配額，我們相信，與今年相比，這將更具機會主義。這是一個逆風，而且與技術轉型特別相關。這能回答你的問題嗎，喬許？

Yes, except the quantitative side of it, but a follow up offline.

是的，除了定量方面之外，而是線下跟進。

Thank you. Our next question comes from the line of Hassan Ahmed with Alembic Global Advisors. Please go ahead.

謝謝。我們的下一個問題來自 Alembic Global Advisors 的 Hassan Ahmed。請繼續。

Wanting Denise and congratulations, John, on the new role on you know, my first question is on the TI side of things on the and I was pleasantly surprised seeing the sequential uptick in volumes of around 16%, particularly with what transpired in Altamira.

想要丹尼斯和約翰，恭喜你的新角色，你知道，我的第一個問題是關於TI 方面的事情，我很驚訝地看到銷量連續上升約1​​6%，特別是在阿爾塔米拉發生的事情。

Can you just talk a bit about on may be potentially what you saw across the regions where you're gaining market share despite the out is that you guys saw?

您能否談談您在那些正在獲得市場份額的地區可能看到的情況，儘管您看到的情況是這樣的？

Thanks for the question on up the way I would characterize it is that we have we see our share. Our share is stable and we kind of see across the regions we saw on a little bit of uplift in North America and Asia ex China on.

謝謝你提出的問題，我的描述是我們已經看到了我們的份額。我們的份額是穩定的，我們看到北美和亞洲（中國除外）的地區略有上升。

But I would characterize it as as as stable demand and stable stable share. Fair enough. And just continuing with the sort of the duty side of things that I mean, obviously, you know, the whole anti-dumping side of things in the European Union, you know, up recently booked up and, you know, we all know that historically 15 to 20,000 tons a month of product is it is transported from China to do the EU.

但我將其描述為穩定的需求和穩定的份額。很公平。繼續我的意思是，關稅方面的事情，顯然，你知道，歐盟的整個反傾銷方面，你知道，最近被預訂了，你知道，我們都知道歷史上每個月有15至2萬噸的產品是從中國運往歐盟的。

And you know, it just seems that regionally some of these anti-dumping measures are actually expanding. So I mean, how should we think about the profitability impact, maybe the EBITDA impact for you guys? I agree with you. I mean, are these the EU. anti dumping is definitely an opportunity for us. It's an opportunity for us to gain share.

你知道，從區域來看，其中一些反傾銷措施實際上正在擴大。所以我的意思是，我們應該如何考慮獲利能力的影響，也許是 EBITDA 對你們的影響？我同意你的看法。我的意思是，這些是歐盟嗎？反傾銷對我們來說絕對是一個機會。這是我們獲得份額的機會。

And there are these things are increasing and you probably are aware of Brazil action that is currently happening and I probably wouldn't stop it at that from, you know, I would just say that we have on really no, no, I would quantify it per se, but you know, the impact of volume would that has on our EBITDA and it definitely will accelerate our EBITDA growth.

這些事情正在增加，你可能知道巴西目前正在採取的行動，我可能不會就此停止，你知道，我只是說我們真的不，不，我會量化就其本身而言，但你知道，銷量會對我們的EBITDA 產生影響，並且肯定會加速我們的EBITDA 成長。

Very helpful. Thank you so much.

非常有幫助。太感謝了。

Our next question will come from the line of Laurence Alexander with Jefferies. Please go ahead.

我們的下一個問題將來自勞倫斯·亞歷山大和傑弗里斯的線路。請繼續。

Good morning. two questions. I guess, Shane, just from would love to hear your thoughts on differences in culture or how you see sort of you how close is operating from a working capital perspective or any other observations you like to share on?

早安.兩個問題。我想，肖恩，只是想聽聽您對文化差異的看法，或者您如何看待自己從營運資本角度來看運營有多接近，或者您想分享的任何其他觀察結果？

And I guess separately, on the data center opportunity, given how fast that industry appears to be scaling up, you have these long-term targets for TSS in the high single digits. Would we be looking out through being higher than that on the income of 20 early 2030s? From your products get approved and adopted.

我認為，就資料中心機會而言，考慮到該行業擴展的速度有多快，TSS 的長期目標將達到高個位數。我們的收入是否會高於 2030 年代初期的 20 年代？您的產品已獲得批准和採用。

Thanks, Lawrance. I'll start off on Doug. I will compare and contrast anything I would just say, you know, as far as Scott Morris goes and just my expectations of the Company, I am very excited to be here for, you know, I mentioned in my script of the I came to the Company for its innovation and some just its commitment to the world and group.

謝謝，勞倫斯。我將從道格開始。我會比較和對比我想說的任何事情，你知道，就斯科特·莫里斯而言，以及我對公司的期望，我很高興來到這裡，你知道，我在我的劇本中提到了我來到公司的創新以及對世界和集團的承諾。

And it's new emerging technologies as well as some people. And for that matter, just the resiliency of all the people around here and really excited to be here. And my 1st month, it's exactly what I expected coming in. I think about your specific question on working capital, obviously, just initial view use of, but I mentioned in the script, we will work to appropriately collect from our customers on that side as well as reduce inventories. And that's owed to us to tried to push improvements on our overall working capital going forward is to enhance cash flows.

這是新興技術以及一些人。就此而言，這裡所有人的韌性以及來到這裡真的很興奮。我的第一個月，這正是我所期望的。我想一下你關於營運資金的具體問題，顯然，這只是初步的使用情況，但我在腳本中提到，我們將努力從那邊的客戶那裡適當收集並減少庫存。這要歸功於我們努力推動未來整體營運資本的改善，以增強現金流。

Yes. Maybe I' ll add on to the even that first segment, I know you didn't ask me about culture, but I'd love to I'd love to just add on. As I mentioned in my prepared remarks, we did a complete to, um, values refresh for the Company. We did it extremely collaboratively. We had over 1,200 people, submit surveys.

是的。也許我會補充第一部分，我知道你沒有問我有關文化的問題，但我很樂意補充。正如我在準備好的發言中提到的，我們對公司的價值觀進行了徹底的更新。我們非常合作地完成了這件事。我們有超過 1,200 人提交了調查。

We did over 50, our focus groups. We had participation from over 22 countries. We have a really sound and solid some concern in this company, and I'm really proud of the team are moving on to our data centers and and what we project could it be higher than than high single digits as we get to the end of the decade?

我們做了 50 多個焦點小組。我們有超過 22 個國家的參與。我們對這家公司有一個非常健全和堅實的擔憂，我對團隊正在轉向我們的資料中心感到非常自豪，並且我們預計，當我們到年底時，它可能會高於高個位數。

I think, you know, we're not going to at this point. This is what we're saying on. one thing that again, we have to recognize with this technology is this is not a new drop-in replacement. This is going to require some time debt to four for retrofits or as you build new, it's really as you're building on new data centers that you use this on this technology. So it's going to take some time to develop. We definitely see it as a meaningful contributor as we get to 2030.

我想，你知道，我們現在不會這樣做。這就是我們所說的。對於這項技術，我們必須再次認識到，這並不是一種新的直接替代品。這將需要一些時間來進行改造，或者當您建立新的資料中心時，您需要在該技術上使用它，因為您正在建立新的資料中心。所以它需要一些時間來發展。到 2030 年，我們肯定會認為它是一個有意義的貢獻者。

Thank you.

謝謝。

Our next question comes from the line of Arun Viswanathan with RBC Capital Markets. Please go ahead.

我們的下一個問題來自 RBC Capital Markets 的 Arun Viswanathan。請繼續。

Great. Thanks for taking my questions. Congrats. If I am saying those roles and I appreciate the comments, I guess just wanted to ask first on TNT. So it sounds like utilization rates are probably still in the 50% to 70% range. I don't know if that's accurate, but maybe you can just characterize or give us some kind of range on where you affect both industry and towards zone utilization rates are on KT. and if they are in that range, do you think that any footprint rationalization will be necessary? Obviously, you guys sit on the lower end of the cost curve and we appreciate your flexibility on orients. But are there any structural oversupply issues of any markets that we should think about?

偉大的。感謝您回答我的問題。恭喜。如果我說的是這些角色並且我很欣賞這些評論，我想我只是想先在 TNT 上問一下。所以聽起來利用率可能仍在 50% 到 70% 的範圍內。我不知道這是否準確，但也許您可以描述或給我們某種範圍，說明您對 KT 行業和區域利用率的影響。如果它們在這個範圍內，您認為是否有必要對足跡進行合理化？顯然，你們處於成本曲線的低端，我們很欣賞你們在方向上的靈活性。但我們是否應該考慮任何市場的結構性供過於求問題？

Maybe I'll start with that. Okay. Thanks around. Thanks for the question. We don't we don't comment on utilization rates on, but dumb certainly, as you know, I think about some pricing stabilization. And I don't think of utilization rates in that range on.

也許我會從那裡開始。好的。感謝身邊。謝謝你的提問。我們不會，我們不會對利用率發表評論，但肯定是愚蠢的，如你所知，我考慮了一些定價穩定。我認為利用率不會在這個範圍內。

And I'm not going to I'm not going to come comment on on on any footprint rationalization. But only to your point, it's really important in a commodity business to be the left side of the cost curve. And that's where we're focused.

我不會對任何足跡合理化發表評論。但僅就您而言，在商品業務中成為成本曲線的左側非常重要。這就是我們關注的重點。

And we see with our TT. transformation plan that we are we're ahead of plan through June were already and that towards that achievement of the $125 million cost savings that we have laid out the end of last year.

我們用 TT 來看看。我們的轉型計畫已經提前到 6 月份，並實現了我們在去年年底制定的 1.25 億美元成本節約目標。

Okay. That's great. And then some well, maybe I'll ask another question as well. The immersion cooling opportunity. We had heard, I guess in the past that the size of that is maybe on the order of Opteon or or it could be a similar kind of you have driver of future earnings for you guys. So I know that it could be different between PS. and PSS., but how are you thinking about the or how should we frame the opportunity for for tomorrow's in emerging countries?

好的。那太棒了。然後，也許我還會問另一個問題。浸入式冷卻機會。我們聽說過，我想過去，這個規模可能與 Opteon 相當，也可能是類似的，你們有未來收入的驅動力。所以我知道PS之間可能會有所不同。 PSS，但是您如何思考或我們應該如何為新興國家的明天創造機會？

Yes, they are the TAM for the liquid cooling market by 2028 is like $2.5 to $3.2 billion. So as I said, our technologies, all different requires a different equipment, but on We expect it to be meaningful on by 2030. So I think you can draw the conclusion that a very significant opportunity for us and will be a big part of that future.

是的，到 2028 年，液體冷卻市場的 TAM 約為 250 至 32 億美元。正如我所說，我們的技術各不相同，需要不同的設備，但我們預計到 2030 年它將變得有意義。所以我認為你可以得出這樣的結論：這對我們來說是一個非常重要的機會，並且將成為未來的重要組成部分。

Great. Thanks.

偉大的。謝謝。

As a reminder, to ask a question, press star one on your telephone keypad. And our next question will come from the line of Vincent Andrews with Morgan Stanley. Please go ahead.

提醒一下，要提問，請按電話鍵盤上的星號一。我們的下一個問題將來自摩根士丹利的文森特安德魯斯。請繼續。

Thank you. Good morning. I want to clarify a couple of things on the QP. 50 product. Denise, I think if I heard everything you said correctly, and I may not have when you spoke earlier about the I believe you said it was 40% to 40% cost savings for the customer.

謝謝。早安.我想澄清一些關於 QP 的事情。 50 個產品。丹尼斯，我想如果我正確地聽到了您所說的一切，那麼當您之前談到「我相信您說這為客戶節省了 40% 到 40% 的成本」時，我可能沒有聽到。

I assume based on your later comments, that's if I'm building a brand new data center, your product versus the incumbent offers that versus if I already have a data center, that math wouldn't apply because it's not a drop-in replacement and adapted by some other equipment that is that the correct way to think about it?

我認為根據您後來的評論，如果我正在建立一個全新的資料中心，您的產品與現有產品相比，如果我已經擁有一個資料中心，那麼數學將不適用，因為它不是直接替代品並由其他一些設備改編，這是正確的思考方式嗎？

Yes, hadn't and thank you for the question. Yes, that is the right way to that is the right way to think about it. And that's why it is going to take some time to develop. It's going to take no the adoption. And but then, but we're super excited about it.

是的，沒有，謝謝你的提問。是的，這是正確的思考方式。這就是為什麼它需要一些時間來開發。不需要收養。但是，我們對此感到非常興奮。

I mean, this is such a compelling value proposition, especially in a way we are in this point in time in the world when it comes to water and power and space and the and the needs of computing power in the future. But just to follow-up on the two other things you mentioned. one was that you're in a qualification process with all the sort of large folks you would like to use it.

我的意思是，這是一個非常引人注目的價值主張，特別是在我們所處的世界時間點上，當涉及到水、電力、空間以及未來計算能力的需求時。但只是為了跟進你提到的另外兩件事。一是你正在與所有你想使用它的大人物進行資格認證。

And then you yourself, if I heard you correctly, wouldn't have the product available till 2026 is a function of production or perimeter? Or what have you sort of those I assume are two separate processes. Were you have the stuff you have to do on your own opinion is actually qualify them.

然後你自己，如果我沒聽錯的話，在 2026 年之前不會有產品可用，這是生產或周界的函數？或者你有什麼我認為是兩個獨立的過程。如果你有自己認為必須做的事情，那其實就是合格的。

So could you just walk us through sort of what's the homes Biggs, the mileposts are on on both sides of that equation so that we can be can be following along and understand what's happening as it happens?

那麼你能帶我們了解一下比格斯的家是什麼嗎？

Yes, sure. So that for the qualification on you, we actually mean in substantial volumes in order to do the qualification. So we're in the process of that right now. It's going to take six to nine months on more in the middle of those process. That process with them various hyperscalers. So that, Tom, that that's that piece in parallel, we're working on a commercial scale quantities, and that was what we're saying. We will have available in 2026.

是的，當然。因此，對於您的資格認證，我們實際上是指大量的資格認證。所以我們現在正在處理這個過程。這個過程中間需要六到九個月的時間。這個過程與他們的各種超大規模器一起進行。所以，湯姆，這就是並行的那部分，我們正在研究商業規模的數量，這就是我們所說的。我們將於 2026 年推出。

Okay. Thank you very much.

好的。非常感謝。

Our next question comes from the line of John McNulty with BMO Capital Markets. Please go ahead.

我們的下一個問題來自蒙特利爾銀行資本市場部的約翰·麥克納爾蒂 (John McNulty)。請繼續。

Yeah, good morning. Sorry, just one follow-up. I had a question just on the balance sheet. I think you spoke that you've made the cash payment out to the water districts as part of the cleanup of that liability. You still have $600 million or so of restricted cash sitting on the balance sheet, I guess that strikes me as higher than I guess I would have thought post that payout. So can you help us to understand what that kind of is holding as far as a placeholder or why it is sitting in restricted cash?

是的，早安。抱歉，只有一個後續。我有一個關於資產負債表的問題。我想你說過，作為清理該責任的一部分，你已經向水區支付了現金。資產負債表上仍然有大約 6 億美元的限制性現金，我想這比我在支付該款項後所想到的要高。那麼，您能否幫助我們了解作為佔位符的此類資產是什麼，或者為什麼它處於受限現金狀態？

Hi, John, related to the restricted cash payment, it was settled in this quarter for about $600 million when the outflow. If you look on the balance sheet, our restricted cash balance is not $600 million. You might be reflecting what it was last quarter or last year that side. So you would see a significant decline in our restricted cash, I think it is around $60 million in this quarter. I’m sorry, $50 million.

你好，約翰，與受限制的現金支付有關，在本季度流出時以約 6 億美元的金額結算。如果你看一下資產負債表，我們的受限現金餘額不是 6 億美元。您可能會反映上個季度或去年的情況。所以你會看到我們的受限現金大幅下降，我認為本季約為 6000 萬美元。抱歉，5000 萬美元。

Thanks for the color.

謝謝你的顏色。

Sure. Thank you

當然。謝謝

We have reached the end of our question-and-answer session. Thank you for joining The Chemours Company Second-Quarter 2024 Results conference call. You may now disconnnect

我們的問答環節已經結束。感謝您參加科慕公司 2024 年第二季業績電話會議。現在您可以斷開連接