Tronox Holdings plc · NYSE:TROX
Tronox — Q3 2006 Earnings Presentation
14 slides from Tronox's earnings presentation, Nov 2, 2006
Slide 1: Third-Quarter Preliminary Results
TRONOX Third-Quarter Preliminary Results November 1, 2006
Slide 2: Agenda
Agenda Perspective and Key Initiatives Tom Adams - Chairman and Chief Executive Officer Third-Quarter Performance Robert Gibney - Vice President Investor Relations and External Affairs Financial Highlights Mary Mikkelson - Senior Vice President and Chief Financial Officer Q&A
Slide 3: Forward-Looking Statement
Forward-Looking Statement Tronox makes certain forward-looking statements in this presentation that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management and on information currently available to our management at the time of such stateme
Slide 4: Project Cornerstone Overview
Project Cornerstone Overview Cornerstone Targets Cash Cost: $60MM Working Capital: $100MM Maintenance Capital Spend: $20MM Additional Land Sales: $100MM Initiative Teams Operations / Supply- Chain Excellence SG&A Productivity Quality Improvement Electrolytic Growth Accelerated Land Sales Capital Spe
Slide 5: Cornerstone Execution
Cornerstone Execution Cash Cost Reductions Land Sales & Capital Program Inventory, Receivables & Payables Program Savings YTD + Forecast * Does not include BMI land sales to Centex Status Summary Teams on track or ahead of schedule Remain committed to target attainment Beginning to realize benefits
Slide 6: Tronox Global Production Platforms
Tronox Global Production Platforms
Slide 7: Outlook: Global TiO2 Market Status
Outlook Global TiO2 Market Status Demand growth 4% - 6% Capacity utilization mid-90s Low industry inventory levels Improving Regional Pricing Most notably in Asia-Pacific and Europe U.S. GDP and housing uncertainty Ongoing Project Cornerstone Improvements
Slide 8: Process Chemicals & Energy
Process Chemicals & Energy Energy U.S. Natural Gas Hedging Q3 2006 = $7.51/mmbtu* Q4 2006 = $7.81** Q1 2007 = $8.39** Q2 2007 = $7.46** Chlorine & Caustic Prices Peaked in Q1 2006 Prices are Expected to Decline in Q4 2006 Source: CMAI average market data Source: CMAI average market data Source: CMAI
Slide 9: Q2 to Q3 2006 Bridge
Q2 to Q3 2006 Bridge Cost of Sales per Tonne Sold (Indexed) 102 100 98 96 4 92 0 ceaoneacal | Process |Faveleowotmes| aszone rier | Predation | cerastore | asctne act eri ‘lure nergy voracronte i Prior Guidanee Fnpscte Adtional impacts
Slide 10: Segment Results
Segment Results Pigment Sales 15.6% Increase Over Q3 2005 Good volume growth in Asia-Pacific and Europe TiO2 Prices Flat Q2 to Q3 2006 Pigment Production: 149,200 tonnes Up 4,700 tonnes versus Q2 2006 Savannah third-party gas disruption Electrolytic and Other Business Increased sales volumes versus
Slide 11: Financial Highlights: Cash Flows and Capital Expenditures
Financial Highlights Cash Flows Provided by Operating Activities Q3 2006 = $50MM Capital Expenditures Q3 2006 = $27MM Projected FY 2006 Capital Expenditures = $90MM Term Loan Payment = $500,000 Term Loan Balance = $198.5MM
Slide 12: Financial Highlights: Land Sales and Environmental
Financial Highlights Land Sales Environmental Environmental Reserves = $242MM Environmental Receivable = $68MM 2006 Net Cash Expenditure for Environmental = $20MM to $25MM
Slide 13: Q&A
Q&A www.tronox.com
Slide 14: Third-Quarter Preliminary Results
TRONOX Third-Quarter Preliminary Results November 1, 2006