Venator Materials PLC · OTC:VNTRF
Venator Materials — Q3 2020 Earnings Presentation
14 slides from Venator Materials's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Results Presentation
Third Quarter 2020 Results Presentation November 5, 2020
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters 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 statemen
Slide 3: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights Financial summary $ in millions, except per share amounts 3Q20 3Q19 2Q20 Revenues 474 526 456 Net (loss) income attributable to Venator (42) (19) (19) Adjusted net (loss) income attributable to Venator(1) (18) 8 (3) Adjusted EBITDA(1) 17 50 37 Diluted (loss) earnings pe
Slide 4: Driving Further Cost Reduction
Driving Further Cost Reduction ~$55mm EBITDA improvement delivered by end of 2022(1) 2020 BIP Highlights Timing (1) $ in millions ~$35mm from manufacturing cost ~$75 improvement across the company(2) Non-recurring savings ~$20mm lower SG&A(2) ~$65 2020 Business Improvement ~$60 Program Approxi
Slide 5: Titanium Dioxide
Titanium Dioxide Sequential volume increase despite seasonality Revenues Adjusted EBITDA $ in millions $ in millions 500 55 $51 450 50 $396 400 45 $343 $338 350 40 $35 300 35 13% 30 250 25 $21 200 10% 20 150 15 100 10 6% 50 5 0 0 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 Titanium Dioxide Adjusted EBITDA margin
Slide 6: Performance Additives
Performance Additives Volumes increase Q/Q due to COVID-19 recovery Revenues Adjusted EBITDA $ in millions $ in millions $131 $130 14 $13 $13 $118 13 12 11 10 9 8 7 6 $5 10% 11% 5 4 3 4% 2 1 0 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 Performance Additives Adjusted EBITDA margin Third Quarter Highlights Outlook
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Third Quarter 2020 Year / Year Adjusted EBITDA Bridge $ in millions $50 $(4) $(19) $(19) $17 $9 3Q19 Adjusted Price/Mix Volume COGS SGA / Other 3Q20 Adjusted EBITDA EBITDA Quarter / Quarter Adjusted EBITDA Bridge $ in millions $6 $(28) $37 $2 $0 $17 2Q20 Adjusted Price/Mix Vo
Slide 8: Free Cash Flow Considerations
Free Cash Flow Considerations Generated $24 million positive free cash flow in 3Q20 $ in millions Actual Estimate 3Q20 YTD 2020E Comments Adjusted EBITDA $17 $111 Intense focus on working capital management Capital expenditures(2) (8) (54) ~(65) Further reduction in cash uses – Restructuring red
Slide 9: 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 10: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2014 2015 2016 2017 2018 2019 3Q19 3Q20 3Q20LTM Net (Loss) / Income $ (162) $ (352) $ (77) $ 144 $ (157) $ (170) $ (17) $ (39) $ (221) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (5) (2) (3) (7) Net income of discontinu
Slide 11: 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 11
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: 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