Tronox Holdings Plc · NYSE:TROX

Tronox — Q2 2019 Earnings Presentation

23 slides from Tronox's earnings presentation, Aug 7, 2019

  1. Slide 1: Second Quarter 2019 Conference Call

    Second Quarter 2019 Conference Call August 7, 2019 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

  2. 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 safe harbor provisions of the U.S. Private Securities Litigation Reform Act o

  3. Slide 3: Second Quarter Highlights

    Second Quarter Highlights • Strong performance in initial quarter following game-changing Cristal TiO2 acquisition • Pro forma Revenue up 15% from 1Q19  Higher sales volumes for TiO2 and zircon, up 17 percent and 8 percent, respectively  Selling prices for TiO2 were level on local basis; zircon se

  4. Slide 4: Pro Forma 2Q19 vs 2Q18 Commercial Performance

    Pro Forma 2Q19 vs 2Q18 Commercial Performance USD millions 2Q19 2Q18 Change Volume and Price Changes Volume Price Revenue $ 827 $ 903 (8%) TiO2 3% (8%) Revenue ex-Electrolytic $ 827 $ 888 (7%) Local Currency N/A (6%) Pigment 657 703 (7%) Zircon (27)% 12% Zircon 89 108 (18%) Feedstock & Other Product

  5. Slide 5: Pro Forma 2Q19 vs 1Q19 Commercial Performance

    Pro Forma 2Q19 vs 1Q19 Commercial Performance USD millions 2Q19 1Q19 Change Volume and Price Changes Volume Price Revenue $ 827 $ 720 15% TiO2 17% (1%) Pigment 657 570 15% Local Currency N/A 0% Zircon 89 83 7% Zircon 8% (1%) Feedstock & other products 81 68 19% • Revenue up 15% on higher TiO2 and zi

  6. Slide 6: Pro Forma 2Q19 vs 2Q18 Adjusted EBITDA

    Pro Forma 2Q19 vs 2Q18 Adjusted EBITDA USD millions 2Q19 2Q18 Change Adjusted EBITDA $ 200 $ 257 (22%) Adjusted EBITDA margin 24% 28% (4 pts) • Lower TiO2 selling prices primarily due to legacy Cristal commercial approach in 2018 • Lower zircon sales and production volumes in legacy Cristal mining o

  7. Slide 7: Realized Synergies of $12 million in 2Q19

    Realized Synergies of $12 million in 2Q19 Synergies represent savings achieved in the calendar year USD millions $220 Target Stated at Investor Day Achieved to Date $175 $120 $45 $12 2Q 2019 2019 2020 2021 2022 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com 7

  8. Slide 8: Pro Forma 2Q19 vs 1Q19 Adjusted EBITDA

    Pro Forma 2Q19 vs 1Q19 Adjusted EBITDA USD millions 2Q19 1Q19 Change Adjusted EBITDA $ 200 $ 141 42% Adjusted EBITDA margin 24% 20% 4 pts • Adjusted EBITDA of $200 million up 42% • Higher sales volumes for TiO2, zircon and feedstock and co-products • Margin benefits from shift to full vertical integ

  9. Slide 9: Financial Position 2Q19

    Financial Position 2Q19 • June 30, 2019 debt $3.2 billion • Returned ~$263 million to shareholders in 2Q19  $2.8 billion net of cash and cash equivalents  Repurchased ~19 million shares • Liquidity of $798 million  Regular dividend payment  Cash/cash equivalents of $397 million • Continued repur

  10. Slide 10: 2Q19 Summary

    2Q19 Summary • New Tronox – executing on our commitments and generating significant momentum • Well positioned to deliver significant profits and cash flow across varying macro- economic conditions • Key drivers to increasing our profits and cash in our control  Delivering synergies  Optimizing ou

  11. Slide 11: Q&A session

    Q&A session © 2019 Tronox Holdings plc | All rights reserved. | tronox.com

  12. Slide 12: Appendix

    Appendix © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 12

  13. Slide 13: Condensed Consolidated Statements of Operation (U.S. GAAP)

    Condensed Consolidated Statements of Operation (U.S. GAAP) TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net sales $ 791

  14. Slide 14: Reconciliation of Non-U.S. GAAP Financial Measures

    Reconciliation of Non-U.S. GAAP Financial Measures TRONOX HOLDINGS PLC RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) (Millions of U.S. dollars, except share and per share data) RECONCILIATION OF NET (LOSS) INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. G

  15. Slide 15: Condensed Consolidated Balance Sheets

    Condensed Consolidated Balance Sheets TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) June 30, December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 397 $ 1,034 Restricted cash 9 662 Accounts receiva

  16. Slide 16: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Six Months Ended June 30, 2019 2018 Cash Flows from Operating Activities: Net (loss) income $ (86) $ 9 Net loss from discontinued operations, net of tax (1) - Net (l

  17. Slide 17: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (NON-U.S. GAAP)

    Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) (U.

  18. Slide 18: Segment Information – Revenue, Operating Income and Free Cash Flow (NON-U.S. GAAP)

    Segment Information – Revenue, Operating Income and Free Cash Flow (NON-U.S. GAAP) TRONOX HOLDINGS PLC SEGMENT INFORMATION REVENUE, OPERATING INCOME AND FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles net sales and sales growth excluding Electroly

  19. Slide 19: Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP)

    Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Pro forma amounts Pro forma amounts Three Months Ended June 30, Six

  20. Slide 20: Pro Forma Reconciliation of Net (Loss) Income from Continuing Operations

    Pro Forma Reconciliation of Net (Loss) Income from Continuing Operations attributable to Tronox Holdings plc (U.S. GAAP) to Adjusted Net Income (Loss) from Continuing Operations attributable to Tronox Holdings plc (NON-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NON-U.S. GAAP FINANCIA

  21. Slide 21: Reconciliation of Net Income from Continuing Operations to EBITDA and Adjusted EBITDA

    Reconciliation of Net Income from Continuing Operations to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (NON- U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Pro forma amounts Pro form

  22. Slide 22: Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP)

    Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Pro forma amounts Three Months Ended March 31, 2019 Net sales $ 720

  23. Slide 23: Pro Forma Reconciliation of Net Loss from Continuing Operations to EBITDA and Adjusted EBITDA

    Pro Forma Reconciliation of Net Loss from Continuing Operations to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET LOSS FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Pro forma amounts Thr

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