Venator Materials Plc · OTC:VNTRF
Venator Materials — Q1 2019 Earnings Presentation
15 slides from Venator Materials's earnings presentation, May 9, 2019
Slide 1: First Quarter 2019 Results Presentation
First Quarter 2019 Results Presentation May 9, 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: First Quarter 2019 Highlights
First Quarter 2019 Highlights Financial summary $ in millions, except per share amounts 1Q19 1Q18 4Q18 Revenues 562 622 484 Net (loss) income attributable to Venator (3) 78 (69) Adjusted net income attributable to Venator 14 91 19 Adjusted EBITDA 60 157 45 Diluted (loss) earnings per share (0.03) 0.
Slide 4: Titanium Dioxide
Titanium Dioxide Customer destocking largely complete Revenues Adjusted EBITDA $ in millions $ in millions 165 $143 500 $456 160 $425 155 150 $18 450 145 140 135 400 $366 130 125 120 115 350 110 105 100 300 95 31% 90 85 22% 250 80 75 70 $61 200 65 60 $52 55 50 14% 150 45 40 35 100 30 14% 25 20 50 15
Slide 5: Performance Additives
Performance Additives Sequential improvement in profitability Revenues Adjusted EBITDA $ in millions $ in millions 200 $24 195 190 24 185 23 180 175 $166 22 170 165 21 160 20 155 150 $137 19 145 140 18 135 $118 17 $15 130 125 16 120 115 15 110 14 14% 105 100 13 95 12 90 85 11 11% 80 75 10 70 9 8% 65
Slide 6: Delivery on Business Improvement Program
Delivery on Business Improvement Program Expect to deliver ~$40mm annual EBITDA benefit Expected Annual EBITDA Capture Areas of EBITDA Improvement $ in millions $ in millions $40 ~$35 ~$10 $0 TiO2 efficiencies Performance SG&A reduction EBITDA 2019 2020 Additives costs Improvement and improvements 2
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges First Quarter 2019 Year / Year EBITDA Bridge $ in millions $157 $(18)(1) $(53) $139 $(5) $(14) $(7) $3 $(3) $60 1Q18 Adjusted Price/Mix Volume COGS Carbon Credit 2019 Business FX / Other 1Q19 Adjusted EBITDA Improvement EBITDA Program Quarter / Quarter EBITDA Bridge $ in mill
Slide 8: Financial Profile
Financial Profile Attractive financial position Net Debt(1) Comment $ in millions Cash Liquidity of $344mm as of March 31, 2019 Debt $666 $583 – $80mm of cash $(80) – $264mm available of ABL borrowing base $(165) $746 Attractive tax profile $748 – Expected long-term adjusted effective tax rate o
Slide 9: Cash Uses
Cash Uses Reiterate full year 2019 cash use guidance $ in millions Cash Uses 1Q19 2019E Comment Adjusted EBITDA $60 Focused on transferring core specialty Capital expenditures(1) (28) ~(130) technology from Pori to sites elsewhere in our network Cash interest (18) (40)-(45) – Estimated annual adju
Slide 10: Summary
Summary First Quarter Headlines Sequential EBITDA improvement driven by higher volumes Specialty TiO2 volumes increased 11% Y/Y and prices remained strong Customer destocking in TiO2 is largely complete Functional TiO2 prices in Europe converged to the lower and more stable North American pr
Slide 11: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q18 1Q19 1Q19 LTM Net Income/(Loss) $ (162) $ (352) $ (77) $ 144 $ (157) $ 80 $ (2) $ (239) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (2) (1) (5) Net income of discontinue
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 12
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 13
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 14
Slide 15: Explanatory Notes
Explanatory Notes (1) Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax (benefit) from continuing operations, depreciation and amortization, and net income attributable to non-controlling interests