Slide 1: Third Quarter 2019 Results Presentation
Third Quarter 2019 Results Presentation November 6, 2019
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 2019 Highlights
Third Quarter 2019 Highlights Financial summary $ in millions, except per share amounts 3Q19 3Q18 2Q19 Revenues 526 533 578 Net (loss) income attributable to Venator(a) (19) (368) 21 Adjusted net income attributable to Venator(2)(a) 8 34 14 Adjusted EBITDA(2)(a) 50 77 61 Diluted (loss) earnings per
Slide 4: Titanium Dioxide
Titanium Dioxide Stable sequential average TiO2 price and seasonal volume decline Revenues Adjusted EBITDA $500 in millions $ in millions $439 $75 450 $396 $389 19% 400 $55 350 $51 300 13% 13% 250 200 150 100 50 0 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 Titanium Dioxide Adjusted EBITDA margin Third Quarter Hi
Slide 5: Performance Additives
Performance Additives Soft demand partially offset by restructuring benefits Revenues Adjusted EBITDA $ in millions $ in millions $144 $139 17 $16 $130 16 15 14 $13 13 $12 12 11 10 9 8 12% 7 10% 6 8% 5 4 3 2 1 0 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 Performance Additives Adjusted EBITDA margin Third Quarter
Slide 6: Delivery on Business Improvement Program
Delivery on Business Improvement Program Delivering improvements ahead of 2019 target Expected Annual EBITDA Capture Areas of EBITDA Improvement $ in millions $ in millions $40 ~$25 >$15 $0 2019 2020 TiO2 efficiencies Performance SG&A reduction EBITDA Additives costs Improvement and improvements 201
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Third Quarter 2019 Year / Year EBITDA Bridge $ in millions $77 $(38) $13 $8 $(3) $50 $(7) (1) 3Q18 Adjusted EBITDA Price/Mix Volume COGS 2019 Business Other (SG&A / FX) 3Q19 Adjusted EBITDA Improvement Program Quarter / Quarter EBITDA Bridge $ in millions $61 $2 $(21) $4 $(5)
Slide 8: Capital Resources
Capital Resources Actual Estimate Financial profile $ in millions Cash Uses 3Q19 YTD 2019E Liquidity of $325mm as of September 30, 2019 – $40mm of cash and $285mm available under the Adjusted EBITDA(a) 50 171 ABL Capital expenditures(1) (25) (73) ~(115) – $15mm of cash proceeds from the monetizati
Slide 9: Venator is Focused on Maximizing Shareholder Value
Venator is Focused on Maximizing Shareholder Value Advancing our tailored customer approach in TiO2 Strengthening our leadership position in Specialty TiO2 Accelerated delivery of Business Improvement Program Reduce cash uses to generate positive free cash flow Maximize shareholder value through act
Slide 10: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q18 3Q19 3Q19LTM Net (Loss) / Income $ (162) $ (352) $ (77) $ 144 $ (157) $ (366) $ (17) $ (66) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (2) (2) (4) Net income of discont
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 three and nin
Slide 15: Explanatory Notes
Explanatory Notes (1) Cost of goods sold for the nine month period ended September 30, 2019 increased by $351 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 manag