Tronox Holdings Plc · NYSE:TROX
Tronox — Q4 2020 Earnings Presentation
22 slides from Tronox's earnings presentation, Feb 18, 2021
Slide 1: Fourth Quarter and Full Year 2020 Conference Call
Fourth Quarter and Full Year 2020 Conference Call Tronox Holdings plc February 18, 2021 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2021 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: 2020 in Review
2020 in Review Our focus has been on three priorities: • The safety, health and well-being of our employees and their families 1 → Achieved record safety year for both legacy Tronox and Cristal • Operating safely in all respects while managing our ongoing operations 2 → Designated as essential; reli
Slide 4: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights Recovery continues across all products, end markets, and geographies Pro Forma Summary Financials Q4 ‘20 Q4 ‘19 % ∆ YoY 2020 2019 % ∆ YoY • Fourth quarter revenue above expectations; Adjusted EBITDA Revenue $ 783 $ 693 13% $ 2,758 $ 3,008 (8%) well above
Slide 5: Commercial Performance
Commercial Performance USD millions 4Q20 4Q19 YoY % ∆ 3Q20 QoQ % ∆ YoY % ∆ QoQ % ∆ Revenue $ 783 $ 693 13% $ 675 16% Volume Price Volume Price TiO2 587 544 8% 543 8% TiO2 8% 0% 8% 0% Zircon 94 71 32% 56 68% Local Currency n/a (2%) n/a 0% Feedstock & Other 102 78 31% 76 34% Zircon 48% (10%) 70% (2%)
Slide 6: Operational Performance
Operational Performance USD millions 4Q20 4Q19 YoY % ∆ 3Q20 QoQ % ∆ Adjusted EBITDA $ 204 $ 156 31% $ 148 38% Adjusted EBITDA margin 26% 23% 3 pts 22% 4 pts • Improved volumes, synergies, and favorable FX rates led to higher Adjusted EBITDA relative to Q4 2019, partially offset by increased producti
Slide 7: Tronox Exceeded Run Rate Synergy Target Set at Investor Day
Tronox Exceeded Run Rate Synergy Target Set at Investor Day Achieved Two Years Ahead of Schedule, With Additional Incremental Synergies in the Pipeline Projected Synergies At Investor Day (2019) Total Actual Synergies Achieved 2020 EBITDA Synergy Breakout USD millions Other 2% Supply $243 Chain SG&A
Slide 8: Key 2021 Capital Projects
Key 2021 Capital Projects Project newTRON Atlas Campaspe • Multi-year, global digital transformation strategy • Australia mining project replacing existing Snapper / project Ginkgo mines in 2022 • Will enhance benefits of vertical integration and further • Abundant in natural rutile, high value zirc
Slide 9: Tronox's Financial Position Remains Strong
Tronox’s Financial Position Remains Strong Liquidity and Capital Resources Balance Sheet as of December 31, 2020 (US$ in millions) Dec. 31, 2020 • Total debt of $3.3 billion, net debt of $2.7 billion; Trailing Twelve Cash and cash equivalents $ 619 Month net leverage of 4.1x Available under: • No fi
Slide 10: Outlook
Outlook • Q1 2021 outlook: • FY 2021 Estimated Uses of Cash: ‒ Strong sales trends from Q4 2020 expected to continue ‒ Net Cash Interest Expense: ~$160-170 million ▪ TiO2 sales volumes expected to increase 11-15 percent ‒ Cash Taxes: ~$20-40 million sequentially from global demand strength in Q1 ‒ C
Slide 11: We Remain Committed to Our Strategy
We Remain Committed to Our Strategy Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2021 11
Slide 12: Q&A Session
Q&A Session Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2021 12
Slide 13: Appendix
Appendix © 2021 Tronox Holdings plc. | All rights reserved. | tronox.com 13
Slide 14: Consolidated Statements of Operations (U.S. GAAP)
Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended Decem ber 31, Year Ended Decem ber 31, 2020 2019 2020 2019 Net sales $ 783 $ 693 $ 2,758
Slide 15: 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 (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. G
Slide 16: Consolidated Balance Sheets
TRONOX HOLDINGS PLC Consolidated Balance Sheets CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) December 31, 2020 December 31, 2019 ASSETS Current Assets Cash and cash equivalents $ 619 $ 302 Restricted cash 29 9 Accounts receivable (net of allowan
Slide 17: Consolidated Statements of Cash Flows
TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS Consolidated Statements of Cash Flows (UNAUDITED) (Millions of U.S. dollars) Year Ended December 31, 2020 2019 Cash Flows from Operating Activities: Net (loss) income $ 995 $ (97) Net income (loss) from discontinued operations, net of tax - $
Slide 18: Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 N
Slide 19: Free Cash Flow
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 year ended December 31, 2020: Consolidated Cash provided by operating activities - conti
Slide 20: Pro Forma Consolidated Statements of Operations (U.S. GAAP)
Pro Forma Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Proforma amounts Proforma amounts Three Months Ended December 31, Year Ended D
Slide 21: Reconciliation of Pro Forma Net Income from Continuing Operations
Reconciliation of Pro Forma Net Income from Continuing Operations attributable to Tronox Holdings plc (U.S. GAAP) to Adjusted Net Income from Continuing Operations attributable to Tronox Holdings plc (NON-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UN
Slide 22: Pro Forma Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Pro Forma Reconciliation of Net Income from Continuing Operations to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended December 31, Year Ended D