Venator Materials PLC · OTC:VNTRF
Venator Materials — Q3 2018 Earnings Presentation
15 slides from Venator Materials's earnings presentation, Oct 30, 2018
Slide 1: Third Quarter 2018 Results Presentation
Third Quarter 2018 Results Presentation October 30, 2018
Slide 2: General Disclosure
General Disclosure This presentation includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning our pla
Slide 3: Third Quarter Highlights
Third Quarter Highlights Financial summary $ in millions, except per share amounts 3Q18 3Q17 2Q18 Revenues $533 $582 $626 Net income (loss) attributable to Venator (368) 51 196 Adjusted EBITDA 77 134 157 Diluted earnings (loss) per share (3.46) 0.48 1.84 Adjusted diluted earnings (loss) per share 0.
Slide 4: Titanium Dioxide
Titanium Dioxide Results impacted by demand trends Revenues Adjusted EBITDA $ in millions $ in millions Y/Y (10)% Q/Q (15)% Y/Y (41)% Q/Q (49)% 165 160 500 $455 155 150 $147 $431 145 140 $389 135 130 $127 $23 400 125 120 115 $20 110 105 100 95 300 90 32% 85 80 $75 75 70 29% 200 65 60 124 55 50 107 4
Slide 5: Performance Additives
Performance Additives Results reflect seasonality Revenues Adjusted EBITDA $ in210 millions $ in millions 205 Y/Y (5)% Q/Q (16)% Y/Y (20)% Q/Q (48)% 200 195 25 190 185 $171 24 $23 180 175 23 170 22 165 160 $144 $151 21 155 150 20 145 19 140 135 18 130 17 $15 125 120 16 115 15 110 105 14 $12 13% 100
Slide 6: $90 Million EBITDA Improvement Program
$90 Million EBITDA Improvement Program $6 million of EBITDA benefit captured in 3Q18 Expected Run-rate Improvement Expected Annual EBITDA Capture $ in millions $ in millions 100 100 $90 $24 0 0 Facilities closures Fixed costs Volume EBITDA 2017 2018F 2019F Improvement Actual Forecast Business Improv
Slide 7: Close Pori and Transfer Technology
Close Pori and Transfer Technology Transfer core specialty and differentiated capacity to other sites Projected Cash Costs Related to Pori $ in millions Estimated Costs 2018 2019 >2020 Total Pori capex and project wind-down costs ~$130(1) -- -- ~$130(1) Capex to strengthen existing network -- $40-$7
Slide 8: Financial Profile
Financial Profile Attractive financial position $ in millions Net Debt Tax Rate Comment $394 $497 Liquidity of $511mm as of September 30, 2018 – $251mm cash $(354) $(251) – $260mm available of ABL borrowing base 16% 15-20% Attractive tax profile 1.0x(1) 0.7x(1) – ~$1bn of Net Operating Losses –
Slide 9: Cash Uses
Cash Uses $ in millions Cash Uses 2018 YTD 2018E Working Capital Trend(3) 43466 43831 44197 44562 44927 Adjusted EBITDA $391 Source Normal course capital expenditures(1) $(72) ~$(120) Cash interest (41) (40)-(45) $0 Primary working capital change (99) (75)-(100) Restructuring(1) (29) (40)-(50) Use O
Slide 10: Summary
Summary Third Quarter Headlines TiO2 pricing trends reflect underlying regional dynamics Volumes impacted by customer destocking and extended turnarounds Raw material and energy cost inflation accelerated but remained in-line with expectations Captured $6 million of incremental EBITDA benefi
Slide 11: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 3Q17 3Q18 3Q18 LTM Net Income/(Loss) $ (162) $ (352) $ (77) $ 144 $ 53 $ (366) $ (18) Net income attributable to noncontrolling interests (2) (7) (10) (10) (2) (2) (8) Net income of discontinued operations – (
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) EBITDA Benefit(2) Net Income (Loss) Per Share(1) Three months ended Three months ended Three months ended Three months ended September 30, September 30, September 30, September 30, (In millions, except per
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings EBITDA (Expense) Benefit(2) Net Income (Loss) (Loss) Per Share(1) Three months Three months Three months Three months ended ended ended ended June 30, June 30, June 30, June 30, (In millions, except per share amounts) 2018
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) EBITDA Benefit(2) Net Income (Loss) Per Share(1) Nine months ended Nine months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, (In millions, except per shar
Slide 15: Explanatory Notes
Explanatory Notes (1) Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax (benefit) from continuing operations, depreciation and amortization, and net income attributable to non-controlling interests