Tronox Holdings Plc · NYSE:TROX
Tronox — Q1 2021 Earnings Presentation
17 slides from Tronox's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Conference Call
First Quarter 2021 Conference Call Tronox Holdings plc April 29, 2021 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 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: First Quarter 2021 Highlights
First Quarter 2021 Highlights Achieved Record TiO2 and Zircon Sales Volumes Driven by Market Strength • Record revenue driven primarily by sequential double- Summary Financials Q1 ’21 Q1 ’20 YoY % ∆ Q4 ’20 QoQ % ∆ digit growth in TiO2 and higher than expected zircon Revenue $ 891 $ 722 23% $ 783 14%
Slide 4: Commercial Performance
Commercial Performance USD millions 1Q21 1Q20 YoY % ∆ 4Q20 QoQ % ∆ YoY % ∆ QoQ % ∆ Revenue $ 891 $ 722 23% $ 783 14% Volume Price Volume Price TiO2 696 580 20% 587 19% TiO2 16% 4% 15% 3% Zircon 123 65 89% 94 31% Local Currency n/a 1% n/a 3% Feedstock & Other 72 77 (6)% 102 (29)% Zircon 91% (2)% 30%
Slide 5: Operational Performance
Operational Performance USD millions 1Q21 1Q20 YoY % ∆ 4Q20 QoQ % ∆ Adjusted EBITDA $ 225 $ 174 29% $ 204 10% Adjusted EBITDA margin 25% 24% 1 pt 26% (1) pt • Improved TiO2, zircon, and pig iron sales volumes and TiO2 selling prices drove majority of the increase YoY along with improved production c
Slide 6: newTRON Overview
newTRON Overview WHAT IS newTRON? “Unleashing the power of our combined businesses and digital technology to deliver safe, quality, low-cost, sustainable tons with an enhanced customer experience and inspire our people to unlock shareholder value” WHY ARE WE DOING newTRON? Protect Margin Improve thr
Slide 7: First Quarter 2021 Refinancing Transactions
First Quarter 2021 Refinancing Transactions Extends debt portfolio’s weighted average maturity by ~3 years Key Benefits New 4.625% Sr • First significant maturity in 2025 New Term Loan Facility due 2028 Notes due 2029 • No financial covenants on TL or bonds • 2021 cash interest ↓ by ~$20 million 5.7
Slide 8: Tronox's Liquidity, Capital Expenditures & Free Cash Flow
Tronox’s Liquidity, Capital Expenditures & Free Cash Flow Liquidity and Capital Resources Capital Expenditures and Free Cash Flow • Capital expenditures in the first quarter were $58 million After April 1, 2021 (US$ in millions) Bond Redemption1 – Capex to increase in Q2, Q3 and Q4 reflecting pacing
Slide 9: Outlook
Outlook • Q2 2021 outlook: • FY 2021 Estimated Uses of Cash: ‒ TiO2 sales volumes expected to increase in the low- to mid- ‒ Net Cash Interest Expense: ~$140-150 million single digit range over record first quarter levels ‒ Cash Taxes: ~$30-40 million ‒ Zircon sales volumes expected to remain elevat
Slide 10: Q&A Session
Q&A Session Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2021 10
Slide 11: Appendix
Appendix © 2021 Tronox Holdings plc. | All rights reserved. | tronox.com 11
Slide 12: Consolidated Statements of Operations (U.S. GAAP)
Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended March 31, 2021 2020 Net sales $ 891 $ 722 Cost of goods sold 685 547 Gross profit 2
Slide 13: 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 INCOME ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP) TO ADJUSTED NET INCOME ATTRIB
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) March 31, 2021 December 31, 2020 ASSETS Current Assets Cash and cash equivalents $ 759 $ 619 Restricted cash 8 29 Accounts receivable (net of
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Three Months Ended March 31, 2021 2020 Cash Flows from Operating Activities: Net income $ 26 $ 40 Adjustments to reconcile net income to net cash provided by operati
Slide 16: Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (a) Represents non-cash share-based compensation. (UNAUDITED) (Millions of U.S. dollars) (b) Represents breakage fee and ot
Slide 17: Free Cash Flow (NON-U.S. GAAP)
Free Cash Flow (NON-U.S. GAAP) TRONOX HOLDINGS PLC 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 three months ended March 31, 2021: Consolidated Cash provided by operating activities $