Slide 1: Fourth Quarter and Full Year 2019 Results Presentation
Fourth Quarter and Full Year 2019 Results Presentation February 21, 2020
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: Fourth Quarter and Full Year 2019 Highlights
Fourth Quarter and Full Year 2019 Highlights Financial summary Quarter Full Year $ in millions, except per share amounts 4Q19 4Q18 3Q19 2019 2018 Revenues 464 484 526 2,130 2,265 Net (loss) income attributable to Venator(a) (174) (69) (19) (175) (163) Adjusted (loss) net income attributable to Venat
Slide 4: Titanium Dioxide
Titanium Dioxide Stable sequential average TiO2 price and seasonally lower demand Revenues Adjusted EBITDA $ 500 in millions $ in millions 450 55 $52 $51 $396 400 $366 50 $354 45 14% 350 40 13% 300 35 $30 250 30 200 25 8% 150 20 15 100 10 50 5 0 0 4Q19 4Q18 3Q19 4Q19 4Q18 3Q19 Titanium Dioxide Adjus
Slide 5: Performance Additives
Performance Additives Seasonally weak demand Revenues Adjusted EBITDA $ in millions $14 in millions $130 $13 $118 13 $110 12 11 10 9 8 7 6 10% 5 $4 4 $3 3 4% 2 3% 1 0 4Q19 4Q18 3Q19 4Q19 4Q18 3Q19 Performance Additives Adjusted EBITDA margin Fourth Quarter Highlights Outlook Average prices remaine
Slide 6: Delivery on Business Improvement Program
Delivery on Business Improvement Program Delivered improvements significantly ahead of 2019 target Expected Annual EBITDA Capture Areas of EBITDA Improvement $ in millions $ in millions Captured $40 Expected $20 All actions expected to be complete by the end of 2020 $12 $8 2019 2020 2021 TiO2 effici
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Fourth Quarter 2019 Year / Year EBITDA Bridge $ in millions $45 $(35) $23 $5 $1 $2 $5 4Q18 Adjusted EBITDA Price/Mix Volume COGS 2019 Business Other 4Q19 Adjusted EBITDA Improvement Program (SGA / FX) Quarter / Quarter EBITDA Bridge $ in millions $50 $(11) $(21) $5 $(3) $3 $2
Slide 8: Capital Resources
Capital Resources Actual Estimate Financial profile $ in millions Cash Uses 4Q19 2019 2020E Liquidity of $307mm as of December 31, 2019 – $55mm of cash and $252mm available under the ABL Adjusted EBITDA(a) 23 194 Net debt leverage(3) of 3.6x Capital expenditures(1) (42) (115) (80)-(90) – No sign
Slide 9: Focused on Maximizing Shareholder Value
Focused on Maximizing Shareholder Value Maximize Shareholder Value Focus on Improve Customer- Enhance specialty & free cash Portfolio tailored competitive differentiated flow optimization approach position products generation Manage our price Growth in higher Driving Reduce cash Potential
Slide 10: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 2019 Net (Loss) / Income $ (162) $ (352) $ (77) $ 144 $ (157) $ (2) $ 22 $ (17) $ (173) $ (170) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (1) (1) (2) (1
Slide 11: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 11
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 12
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 13
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes (a) Represents payments associated with our separation from Huntsman 14 (b) Does not include a $15 million benefit from monetizing cross-currency interest rate swaps in the twelve months
Slide 15: Explanatory Notes
Explanatory Notes (1) Cost of goods sold for the twelve month period ended December 31, 2019 increased by $342 million from the same period in the prior year primarily as a result of the recognition of $325 million of insurance proceeds which was an offset to cost of goods sold in 2018. (2) Our mana