Slide 1: Second Quarter 2020 Results Presentation
Second Quarter 2020 Results Presentation August 4, 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: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights Financial summary $ in millions, except per share amounts 2Q20 2Q19 1Q20 Revenues 456 578 532 Net (loss) income attributable to Venator (19) 21 7 Adjusted net (loss) income attributable to Venator(1) (3) 14 12 Adjusted EBITDA(1) 37 61 57 Diluted (loss) earnings per sha
Slide 4: Venator's Path Through COVID-19
Venator’s Path Through COVID-19 Robust response to mitigate challenges and navigate the COVID-19 pandemic 1Q20 onset of COVID-19 During the Pandemic The Path Forward Enhanced focus on the Customer-tailored approach Phased reopening of health and safety of our aligning production and economies und
Slide 5: EBITDA Improvement Through Lower Costs
EBITDA Improvement Through Lower Costs >$20 million of COVID-19 cost reduction initiatives; Existing programs on-track Delivering EBITDA Improvement Primarily Through Lower Costs $ in millions >$50 $40mm 2019 Business >$20 >$10 Improvement Program $7 >$10mm color pigments cost $13 improvements $20 C
Slide 6: Titanium Dioxide
Titanium Dioxide Stable sequential average TiO2 price; Volumes impacted by COVID-19 Revenues Adjusted EBITDA $ in 500 millions $ in millions $439 60 450 $55 $402 55 400 $46 $338 50 350 45 300 40 $35 13% 250 35 11% 30 10% 200 25 150 20 100 15 10 50 5 0 0 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20 Titanium Dioxide
Slide 7: Performance Additives
Performance Additives Volumes impacted by COVID-19 Revenues Adjusted EBITDA $ in millions $ in millions $139 24 $130 23 $22 22 $118 21 20 19 18 $16 17 16 17% 15 $13 14 13 12 11 11% 12% 10 9 8 7 6 5 4 3 2 1 0 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20 Performance Additives Adjusted EBITDA margin Second Quarter Hi
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Second Quarter 2020 Year / Year Adjusted EBITDA Bridge $ in millions $61 $(5) $(45) $5 $37 $4 $17 2Q19 Adjusted Price/Mix Volume COGS 2019 Business SGA / FX / Other 2Q20 Adjusted EBITDA Improvement EBITDA Program Quarter / Quarter Adjusted EBITDA Bridge $ in millions $57 $1 $
Slide 9: Free Cash Flow Considerations
Free Cash Flow Considerations $453mm of total liquidity(1) as of June 30, 2020 $ in millions Actual Estimate 2Q20 YTD 2020E Comments Adjusted EBITDA $37 $94 Generated positive free cash flow in 2Q20 due to working capital management Capital expenditures(2) (16) (46) ~(60) Assessing opportunities
Slide 10: 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 Aligning Growth in higher Driving Reduce cash Potential sale of
Slide 11: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q19 2Q20 2Q20LTM Net (Loss) / Income $ (162) $ (352) $ (77) $ 144 $ (157) $ (170) $ 22 $ (17) $ (199) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (5) (1) (2) (6) Net in
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 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 income/expense, net, income tax expense/benefit, depreciation and amortization, and net income attributable to noncontrolling interests, as well as