Tronox Holdings Plc · NYSE:TROX
Tronox — Non-Deal Roadshow (March 2021)
25 slides from Tronox's roadshow presentation, Mar 29, 2021
Slide 1: Tronox Holdings plc BMO Virtual Non-Deal Roadshow
Tronox Holdings plc BMO Virtual Non-Deal Roadshow March 29, 2021 Tronox Holdings plc | © 2021 1
Slide 2: Safe Harbor Statement and Non-U.S. GAAP Financial Terms
Safe Harbor Statement and Non-U.S. GAAP Financial Terms Cautionary Statement about Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking
Slide 3: 2020 in Review
2020 in Review Our focus has been on three priorities: • The safety, health and well-being of our employees and their families 1 → Achieved record safety year for both legacy Tronox and Cristal • Operating safely in all respects while managing our ongoing operations 2 → Designated as essential; reli
Slide 4: Why Tronox?
Why Tronox? 1• World’s leading vertically integrated TiO2 producer with an advantaged cost position 2• Diverse and well-balanced global customer base and end-market exposure 3• Attractive TiO2 market evolution 4• High-value co-products add earnings power 5• Controllable cost levers drive further ear
Slide 5: Tronox – A Focused Titanium Industry Leader
1 Tronox – A Focused Titanium Industry Leader • Tronox Holdings plc (NYSE:TROX) is a vertically integrated mining and World’s largest vertically integrated TiO2 producer inorganic chemical company domiciled under the laws of the United Kingdom, and headquartered in the United States in the NYC area
Slide 6: Nine TiO2 Pigment Plants, Six Mineral Sands Mines, and Five Upgrading Facilities
1 Nine TiO2 Pigment Plants, Six Mineral Sands Mines, and Five Upgrading Facilities on Six Continents • 1.1 million tons of nameplate TiO2 pigment capacity • 297,000 tons of zircon production • 220,000 tons of pig iron • 410,000 tons of titanium slag • 230,000 tons of synthetic rutile • 182,000 tons
Slide 7: Superior Competitive Position as Most Vertically Integrated TiO2 Producer
1 Superior Competitive Position as Most Vertically Integrated TiO2 Producer Namakwa Benefits of Integration Gingko Operations Existing Fairbreeze East and UMM Cooljarloo Wonnerup Paraiba Snapper West Mining ▪ Zircon ▪ Pig Iron ✓ Full utilization of mining and Atlas Coolljarloo (Direct sales) feedsto
Slide 8: TiO2 Global Industry Landscape
1 TiO2 Global Industry Landscape 1 1 Global HQ LTM Revenue $2.8 billion $2.4 billion $1.8 billion $1.6 billion $1.4 billion LTM Adj. EBITDA $6682 million $510 million $601 million $158 million $132 million Adj. EBITDA margin % 24.2%2 21.2% 34.0% 9.9% 9.2% TiO2 Capacity (KT) 1,078 1,250 942 By techno
Slide 9: Balanced Geographic Footprint and End-Market Exposure Provides Significant Advantage
2 Balanced Geographic Footprint and End-Market Exposure Provides Significant Advantage Relative to Competitors Balanced Geographical Sales1 Sales by Product1 Feedstock and Other Products 29% 11% 32% Zircon 10% TiO2 79% 28% Plastic Paints & 13%2 Coatings 60%2 11% Paper & Specialty 6%2 A Global Footpr
Slide 10: Tronox's Strategy is Best Aligned with the Changing TiO2 Industry Dynamics
3 Tronox’s Strategy is Best Aligned with the Changing TiO2 Industry Dynamics Evolving industry trends… …Coupled with reduced price volatility High Quality TiO 2 Price1 • Producer consolidation and migration to public ownership ($ per tonne delivered) • Higher probability of periods of feedstock and
Slide 11: TiO2 Market Has Historically Demonstrated a Healthy Track Record of Growth
3 TiO2 Market Has Historically Demonstrated a Healthy Track Record of Growth • Long-term TiO2 demand correlated with GDP growth $90,000 R2: 98% 6,750 • Historical short-term swings in TiO2 demand driven by $80,000 Real GDP ($ Billions) 1 5,750 TiO2 Demand (KT)1 customer stocking/ destocking actions
Slide 12: Tronox is Positioned to Capitalize on a Strengthening TiO2 Market
3 Tronox is Positioned to Capitalize on a Strengthening TiO2 Market Market Tailwinds Tronox Tailwinds • Strong signs of price and volume recovery • Significant sequential improvement in quarterly Adj. EBITDA1 – up • Proven end-market resiliency through pandemic 38% in Q4 2020 vs. Q3 2020 • Substanti
Slide 13: Zircon Delivering Significant Value
4 Zircon Delivering Significant Value Zircon Demand1 By Geography • 2nd largest zircon producer with ~297,000 tons of capacity Tronox Zircon • Largest production capacity of our portfolio at Namakwa Sands By Geography Assets • We estimate total zircon reserves of 4.6MT at Namakwa, 1.0MT at KZN, and
Slide 14: Tronox Exceeded Run Rate Synergy Target Set at Investor Day
5 Tronox Exceeded Run Rate Synergy Target Set at Investor Day Achieved Two Years Ahead of Schedule, With Additional Incremental Synergies Expected in the Pipeline Projected Synergies At Investor Day (2019) Total Actual Synergies Achieved 2020 EBITDA Synergy Breakout USD millions Other 2% Supply $243
Slide 15: Key 2021 Capital Projects Expected to Further Enhance Tronox's Cost Position
5 Key 2021 Capital Projects Expected to Further Enhance Tronox’s Cost Position Project newTRON Atlas Campaspe • Multi-year, global digital transformation strategy • Australia mining project replacing existing Snapper / project Ginkgo mines in 2022 • Will enhance benefits of vertical integration and
Slide 16: Strong Free Cash Flow Provides Financial, Strategic and Operational Flexibility
6 Strong Free Cash Flow Provides Financial, Strategic and Operational Flexibility Adjusted EBITDA1 ($ millions) Adj. EBITDA1 – CapEx ($ millions) Adjusted EBITDA1 margin Free Cash Flow Conversion2 $681 78% 77% 28% $668 $483 $473 25% 24% 71% 71% $513 23% $396 62% $329 $420 15% $314 $195 2016 2017 3 2
Slide 17: Capital Allocation Strategy
6 Capital Allocation Strategy Strategic capital investments to reduce costs and increase EBITDA per ton De-lever to achieve gross debt target of $2.5 billion and net leverage ratio range of 2.0-3.0x EBITDA by 2023 Balance strategic investment flexibility and shareholder capital return through divide
Slide 18: Experienced and Dedicated Executive Team
7 Experienced and Dedicated Executive Team John D. Romano Jean-François Timothy C. Melissa H. Zona Jeffrey Neuman Turgeon Carlson Senior Vice President, Senior Vice President, Co-Chief Executive External Affairs and General Counsel and Co-Chief Executive Senior Vice President, Officer Chief Sustaina
Slide 19: Why Tronox?
Why Tronox? 1• World’s leading vertically integrated TiO2 producer with an advantaged cost position 2• Diverse and well-balanced global customer base and end-market exposure 3• Attractive TiO2 market evolution 4• High-value co-products add earnings power 5• Controllable cost levers drive further ear
Slide 20: Appendix
Appendix TRONOX >
Slide 21: Annual Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA and Free Cash Flow Conversion
Annual Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA (Non-U.S. GAAP) and Free Cash Flow Conversion (Non-U.S. GAAP) ($ millions) Year Ended December 31, 2016 2017 2018 2019 2020 Net income (loss) (U.S. GAAP) $ (58) $ (272) $ 30 $ 41 $ 995 Income from discontinued operations, net of t
Slide 22: Quarterly Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Quarterly Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (Non-U.S. GAAP) ($ millions) Three Months Ended 2018 2019 2020 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Net income (loss) (U.S. GAAP) $ (41) 50 15 6 $ (18) $ 32 $ 26 $ 1 $ 40 $ (4)
Slide 23: Quarterly Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Quarterly Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (Non-U.S. GAAP) ($ millions) Three Months Ended 2014 2015 2016 2017 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Net income (loss) (U.S. GAAP) $ (54) $ 2 $ (
Slide 24: Reconciliation of Free Cash Flow (Non-U.S. GAAP)
Reconciliation of Free Cash Flow (Non-U.S. GAAP) FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles cash used in operating activities to free cash flow for the year ended December 31, 2020: Consolidated Cash provided by operating activities - continu
Slide 25: Reconciliation of Non-U.S. GAAP Financial Measures
Reconciliation of Non-U.S. GAAP Financial Measures TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) (Millions of U.S. dollars, except share and per share data) RECONCILIATION OF PRO FORMA NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TRONOX HOLDING