Tronox Holdings Plc · NYSE:TROX
Tronox — Non-Deal Roadshow (December 2022)
23 slides from Tronox's roadshow presentation, Dec 12, 2022
Slide 1: Tronox Investor Presentation
Tronox Investor Presentation December 12, 2022 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2022 1
Slide 2: Safe Harbor Statement and Non-U.S. GAAP Financial Terms
Safe Harbor Statement and Non-U.S. GAAP Financial Terms Cautionary Statement about Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking
Slide 3: Tronox Team
Tronox Team •John •Jean-Francois Timothy John Jennifer Romano Turgeon Carlson Srivisal Guenther Co-Chief Co-Chief SVP, SVP, VP, Executive Officer Executive Officer Chief Financial Officer Business Dev. & Finance Investor Relations Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 202
Slide 4: Update to Q4 2022 Guidance
Update to Q4 2022 Guidance December 12, 2022 • Tronox has incurred ~$30 million of costs impacting Adjusted EBITDA related to unforeseen events in the quarter that, when applied to the midpoint of the previously guided Q4 2022 Adjusted EBITDA range of $140-$170 million, result in expectations that t
Slide 5: Tronox Overview
Tronox Overview Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2022 5
Slide 6: Tronox: Clearly Differentiated
Tronox: Clearly Differentiated 1 2 3 4 5 Executing as Demonstrating Strengthening Outperforming Investing for a World-class a Track Record Competitive and Enabling Profitable Operator of Execution Differentiators Success Growth Delivering strong, Significant Deepening vertical Unwavering in our Retu
Slide 7: Tronox – A Diversified, Vertically Integrated Titanium Industry Leader
Tronox – A Diversified, Vertically Integrated Titanium Industry Leader TROX $3.6B $947M 85% ~6,500 ~1,200 NYSE 2021 Revenue 2021 Adj. EBITDA Feedstock Integration Global Employees Customers • Vertically integrated mining and inorganic chemical Sales by Sales by TiO2 Sales Volume company Region1 Prod
Slide 8: Transformation to a Larger, More Diversified, More Stable Company
Transformation to a Larger, More Diversified, More Stable Company Pre Cristal Acquisition1 2021 ∆ Mines | Upgrading | Pigment Facilities 3|5|3 6|5|9 +3 | - | +6 Nameplate TiO2 Pigment Capacity 465K tons 1.1M tons +613K tons Chloride / Sulfate Technology 100% / 0% 87% / 13% +13% Sulfate Zircon Proces
Slide 9: Our Strategy Differentiates Us
Our Strategy Differentiates Us Advantaged global TiO2 leader Foundational Our Distinct Advantage Enabling 1 Competitive TiO2 2 3 4 Pigment Costs Feedstock Integration Leading Global Footprint TiO2 Technology Leader • Low-cost operator • Profit contribution from zircon • Effectively serve most attrac
Slide 10: Preserving our Privilege to Operate
Preserving our Privilege to Operate Achieve Carbon Zero Waste to Achieve Zero Harm Foster & Build a Neutrality by 2050 External Dedicated by Building Workplace that Landfills Capacity in our Reflects the 2050 2050 People, Plants and Communities in 100% Carbon Neutrality Zero Waste Reduce waste to Pr
Slide 11: The TiO2 Landscape Has Changed
The TiO2 Landscape Has Changed What changed during the 2020 – 2022 COVID-19 pandemic period • Increased % of sales under contract following Chinese product shortages in 2020 • Higher input costs including energy • Higher freight costs and duties result in higher delivered costs • Minimal growth in C
Slide 12: Focused on Long-term Value Creation for Shareholders
Focused on Long-term Value Creation for Shareholders • Initiated enhanced commercial approach with customers in 2018 to proactively stabilize margin volatility and enable cash generation across all scenarios Delivered 22 • Producing valuable co-products, such as zircon and pig iron, that contribute
Slide 13: Differentiated, Vertically Integrated Business Model
Differentiated, Vertically Integrated Business Model Clearly differentiated from peers 2021A EBITDA Margin1 26.5% Strong balance sheet and ample liquidity to 11 support our vertically integrated operations 19.4% 20.3% 13.5% 85% vertical integration provides annualized 22 feedstock cost savings of $3
Slide 14: Executing Our Strategy and Delivering Results
Executing Our Strategy and Delivering Results Pro Forma Revenue Pro Forma Adjusted EBITDA Free Cash Flow1 ~48% CAGR $468 ~9% CAGR $3,572 ~18% CAGR $947 $3,008 $2,758 $681 $668 $214 $160 2019 2020 2021 2019 2020 2021 2019 2020 2021 Adjusted EBITDA Margin FCF Conversion2 ($M) 23% 24% 27% 71% 71% 71% N
Slide 15: Introduced 2025 Financial Milestone Goals At Investor Day
Introduced 2025 Financial Milestone Goals At Investor Day (June 16, 2022) 2021A 2025E Commentary • Market growth driven by GDP Adj. EBITDA ($) $947M $1.3B – $1.5B • Absorption benefits and newTRON savings, partly offset by inflation in labor, ore, direct materials and Adj. EBITDA Margin (%) 26.5% 30
Slide 16: Resilience Across Economic Scenarios
Resilience Across Economic Scenarios Flexibility to lever inventory, working capital and capital expenditures GDP GDP Recession Case Upside Case Adj. EBITDA $800M – $1B $1.5B – $1.7B Adj. EBITDA Margin 24% – 26%+ 32% – 34%+ Free Cash Flow $300M – $400M $850M – $1B Upside & Recession • TiO2 volumes d
Slide 17: Taking Actions to Navigate the Current Landscape
Taking Actions to Navigate the Current Landscape Reducing Costs Managing Working Lowering CapEx • Planning for a variety of Capital • Implemented plans to economic scenarios significantly reduce our • The need to replenish planned annual capital • Executing our cost reduction critically low levels o
Slide 18: Capital Allocation Strategy
Capital Allocation Strategy • Elevated 2022E capital requirements driven by newTRON and vertical integration investments – return threshold of 25% – newTRON 2022E capital: $90M Capital Expenditures – Vertical integration 2022E capital: $150M – $175M • Normalized estimated CapEx of $250M – $300M in 2
Slide 19: Appendix
Appendix © 2022 Tronox Holdings plc. | All rights reserved. | tronox.com 19
Slide 20: Free Cash Flow (Non-U.S. GAAP)
Free Cash Flow (Non-U.S. GAAP) TRONOX HOLDINGS PLC FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles cash used in operating activities to free cash flow for the three and nine months ended September 30, 2022: Nine Months Ended Six Months Ended Three
Slide 21: Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Non-U.S. GAAP)
Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Non-U.S. GAAP) TRONOX HOLDINGS PLC 1 - 2019 figures are proforma to include Cristal. RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (a) Represents non-cash share-based compensation. (Millions of U.S.
Slide 22: Reconciliation of Non-U.S. GAAP Financial Measures
Reconciliation of Non-U.S. GAAP Financial Measures TRONOX HOLDINGS PLC RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) (Millions of U.S. dollars, except share and per share data) RECONCILIATION OF NET INCOME ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP) TO ADJUSTED NET INCOME ATTRIB
Slide 23: Free Cash Flow (Non-U.S. GAAP)
Free Cash Flow (Non-U.S. GAAP) TRONOX HOLDINGS PLC FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles cash provided by operating activities to free cash flow for the following periods: Year Ended December 31, 2021 2020 2019 2018 Cash provided by oper