Venator Materials Plc · OTC:VNTRF
Venator Materials — Q3 2017 Earnings Presentation
15 slides from Venator Materials's earnings presentation, Oct 27, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
Third Quarter 2017 Earnings Presentation October 27, 2017
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 Highlights
Third Quarter Highlights Financial summary $ in millions, except per share amounts 3Q17 3Q16 2Q17 Revenues $582 $532 $562 Net income (loss) attributable to Venator 51 (5) 31 Adjusted EBITDA 134 21 94 Diluted earnings (loss) per share 0.48 (0.05) 0.29 Adjusted diluted earnings (loss) per share 0.70 (
Slide 4: Titanium Dioxide Review of third quarter 2017
Titanium Dioxide Review of third quarter 2017 Revenues Adjusted EBITDA $ in millions $ in millions 431 Y/Y +10% Q/Q +7% Y/Y +477% Q/Q +37% 392 401 127 93 29% 23% 22 6% 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 Titanium Dioxide Adjusted EBITDA margin Third Quarter Headlines Outlook 37% increase in adjusted EBITD
Slide 5: Performance Additives Review of third quarter 2017
Performance Additives Review of third quarter 2017 Revenues Adjusted EBITDA $ in millions $ in millions Y/Y +8% Q/Q (6)% Y/Y (6)% Q/Q (29)% 161 21 151 140 16 15 11% 13% 10% 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 Performance Additives Adjusted EBITDA margin Third Quarter Outlook Revenue improvement Y/Y driven
Slide 6: $90 Million EBITDA Improvement Program
$90 Million EBITDA Improvement Program Expected Run-rate Improvement Expected Annual EBITDA Capture $ in millions $ in millions $90 ~$30 ~$30 ~$30 Facilities closures Fixed costs Volume EBITDA 2017F 2018F 2019F Improvement Business Improvement Program Highlighted Activities Incremental EBITDA benefi
Slide 7: Adjusted EBITDA Bridges Third quarter 2017
Adjusted EBITDA Bridges Third quarter 2017 Year / Year $ in millions (1) (1) Quarter / Quarter $ in millions (1) (1) 7 See Appendix for reconciliations and important explanatory notes (1) Includes pro forma adjustments related to Pori outage
Slide 8: Pori, Finland Update
Pori, Finland Update ► Significant improvement in TiO2 profitability is benefitting our business but consuming more of our insurance limit ► The combination of increased TiO2 profitability and estimated reconstruction costs indicate we will incur capital expenditures above our insurance limit ► We e
Slide 9: Cash Uses
Cash Uses We expect to generate > $200 million FCF in 2018(1) $ in millions Estimated Cash Uses 2018 Capital expenditures(1) ~$110 Cash interest ~35-40 Primary working capital change ~20-30 Restructuring ~35 Other (pension) ~40 Subtotal Cash Uses Before Taxes ~$240-255 Cash income taxes 10-15% 9 (1)
Slide 10: Liquidity and Cash Use Prioritization
Liquidity and Cash Use Prioritization Aggressive debt reduction targeted $ in millions Liquidity Priority of Cash Uses Net Debt $(565)(2) Opportunistic Strategic Transactions 1. Earnings Growth ̶ Pori reconstruction ̶ Capex projects targeting $186 >20% IRR Net Debt $420 Target 2. Strengthen Balance
Slide 11: Summary
Summary Third Quarter Headlines Strong sequential earnings growth of $40 million in the quarter Acceleration in TiO2 earnings driven by industry supply tightness, high price capture and our leading positions in specialty products and in Europe On-track with our $90 million Business Improvement Progr
Slide 12: Appendix
VENATOF Appendix
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (Loss) EBITDA (Expense) Benefit Net Income (Loss) Per Share Three months ended Three months ended Three months ended Three months ended September 30, September 30, September 30, September 30, $ in millions, except per share
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (Loss) EBITDA (Expense) Benefit Net Income Per Share Three months ended Three months ended Three months ended Three months ended June 30, June 30, June 30, June 30, $ in millions, except per share amounts 2017 2017 2017 201
Slide 15: Explanatory Notes
Explanatory Notes Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income (loss) before interest, income tax from continuing operations, depreciation and amortization, and net income attributable to noncontrolling interests, as well as eliminatin