Tronox Holdings Plc · NYSE:TROX

Tronox — Non-Deal Roadshow (March 2020)

49 slides from Tronox's roadshow presentation, Mar 31, 2020

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: Table of Contents
Table of Contents • Q1 2020 Investor Update 4 • Tronox – A Focused Titanium Industry Leader 11 • Strategy Driven by Changing Industry Dynamics 17 • A Single Unified Commercial Approach 23 • Capitalizing on the Strength of our Vertical Integration 29 • Appendix 40 © 2020 Tronox Holdings plc. | All ri
Slide 5: COVID-19 Protocols
COVID-19 Protocols Protecting Our Employees and Our Business • Prioritize the safety, health and well-being of our employees and their families • Ensure we operate safely in all respects while preserving our ability to run our business • All non-production and non-essential employees with remote cap
Slide 6: Operations & Supply Chain Update
Operations & Supply Chain Update • All operations are currently running at planned production levels to meet continued demand • Fuzhou, China site has been fully operational since February 23rd • Where relevant, our operations have been designated as essential in jurisdictions facing current restric
Slide 7: Commercial Update
Commercial Update • Solid demand for Q1, including March, across our end markets with minimal order cancellations ‒ Order book continues to build for April • Seeing some temporary customer plant closures in highly restricted countries across our customer base • More customer plant closures in the co
Slide 8: Update on Q1 2020 Performance
Update on Q1 2020 Performance • Tronox’s Q1 concluding better than expectations • Q1 2020 Outlook(1): • The situation is and will remain very dynamic as ‒ Revenue of $700 – $730 million we move through the second and third quarters, and possibly through the rest of the year ‒ Adjusted EBITDA of $160
Slide 9: Liquidity and Capital Resources
Liquidity and Capital Resources (1) Pro Forma as of March 20, 2020 Pro Forma • Tronox’s current liquidity is $542 (US$ in millions) March 20, 2020 million Cash and cash equivalents $ 447 • Cash is well distributed across Available under the Wells Fargo Revolver 67 regions; no trapped cash Available
Slide 10: Strong Financial Position
Strong Financial Position We remain confident in our financial position and have multiple levers to pull • Current net leverage is unchanged from the end of 2019 at 4.0x • Term Loan matures in September 2024 and senior notes are due in 2025 and 2026 • No significant financial maintenance covenants ‒
Slide 12: Tronox – A Focused Titanium Industry Leader
Tronox – A Focused Titanium Industry Leader • Tronox Holdings plc (NYSE:TROX) is a vertically integrated mining and inorganic chemical company domiciled under the laws of the United Kingdom, and World’s largest vertically integrated TiO2 producer headquartered in the United States in the New York Ci
Slide 14: Integration and Globalization Advantages
Integration and Globalization Advantages Vertical Integration Balanced Geographical Sales • Achieve and maintain first- quartile cost position • Greater stability in financial 26% performance 36% • Significant profitability and cash flow across varying 32% macro-economic conditions 6% A Global Footp
Slide 15: A Global Organization United by Our Core Values
A Global Organization United by Our Core Values Tronox has created a high-performance organization that transcends geographic and cultural boundaries Our Core Values Our Results Approach • We have an uncompromising focus on operating safe, reliable and responsible facilities. • We honor our responsi
Slide 16: Commitment to Sustainability is a Part of Tronox Culture
Commitment to Sustainability is a Part of Tronox Culture Corporate citizenship and sustainability is an integral part of our global business. We are continually challenging ourselves to promote sustainable growth, invest in green technologies, be transparent in all our business operations, and make
Slide 18: Strategy Driven by Changing Industry Dynamics
Strategy Driven by Changing Industry Dynamics Changes in TiO2 Market Increased competitive Structure intensity Implications Advantaged cost structure is Flattening of cost curve critical to remain competitive / relevant Chloride Process Industry consolidation and migration to public ownership Vertic
Slide 20: Tronox Vision for the Future
Tronox Vision for the Future Vision: To be the leading, responsible, and advantaged global integrated TiO2 company delivering safe, quality, low-cost tons to our customers and exceptional returns to our shareholders – by leveraging our outward-minded talent base Sources of Advantage Performance Char
Slide 21: The Emergence of the “Big 3”
The Emergence of the “Big 3” Exchange NYSE: TROX NYSE: CC SHE: 002601 NYSE: KRO NYSE: VNTR Global Headquarters Stamford, CT Wilmington, DE Henan, China Dallas, TX Wynyard, UK Incorporation UK Delaware China Delaware UK US, Brazil, UK, Global TiO2 Germany, Belgium, UK, Germany, Spain, Netherlands, Fr
Slide 22: Emergence of the “Big 3”: Defining Characteristics
Emergence of the “Big 3”: Defining Characteristics The leading TiO2 producers all have production capacity over 1 mtpa • Largest vertically integrated position among TiO2 peers ‒ Increasing ability to use a variety of feedstocks ‒ Maximizing vertically integrated position with Jazan and strategic op
Slide 24: Unified Commercial Approach
Unified Commercial Approach Guiding Principles Offering A World-Class TiO2 Product Portfolio • Offering a high value proposition to our customers; • Accelerating our bespoke margin stability initiatives across regions in both coatings and plastics markets; • Partnering with strategic customers that
Slide 25: TiO2 Customer Portfolio – Growth Trajectory Is Key
TiO2 Customer Portfolio – Growth Trajectory Is Key Attach ourselves to the customers who are growing faster than the market Develop the product and commercial offering for which customers are willing to pay 25 © 2020 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 26: Early Signs of a Recovery in TiO2
Early Signs of a Recovery in TiO2 Indicators showing early signs of cyclical recovery in TiO2 industry Investor Day 2019 • The bars represent changes in the trailing 3 month moving average of total reported imports of TiO2 pigment from net importing countries in APAC • This data set has historically
Slide 27: Value-Enhancing Benefits from Zircon & TiCl4
Value-Enhancing Benefits from Zircon & TiCl4 Tronox is the 2nd largest producer of zircon and the largest merchant seller and distributor of Metal Grade TiCl4 products globally Zircon • 2nd largest zircon producer with ~294,000 tons of capacity – Largest production capacity of our portfolio at Namak
Slide 28: Zircon Delivering Significant Profitability and Margin Enhancement
Zircon Delivering Significant Profitability and Margin Enhancement • Major applications  Ceramic tiles and glazes  Refractories and foundry  Zirconia chemicals • Market dynamics  Q1 revenue on target  China market rebounding following Covid-19 impacts; anticipating some softening in India & Sou
Slide 30: Our Operations Philosophy
Our Operations Philosophy SQLCT Operational Excellence Business Transformation Integrated Business Planning Operational Risk Organizational Management Effectiveness Project Asset Reliability Effectiveness Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns A
Slide 31: Tronox’s Vertically Integrated Network of Assets
Tronox’s Vertically Integrated Network of Assets Mining Operations Namakwa Gingko Existing Fairbreeze UMM Cooljarloo Wonnerup Paraiba East and West Snapper  Zircon  Pig Iron New Coolljarloo East OFS Atlas (Direct sales) (Extensions) Fairbreeze Extension Port Durnford West UMM Expansion Campaspe Do
Slide 32: Established Mining Operations
Established Mining Operations Namakwa, South Africa KZN, South Africa Australia • Largest HM Reserves at ~46m MT • Fairbreeze Mine HM Reserves at ~13m MT • ~20m MT of HM Reserves in our • 32k MT Rutile & leucoxene and 121k • 25k MT Rutile & leucoxene and 55k MT Western Operations; 7m MT of HM MT Zir
Slide 33: Smelting Operations to Produce High-Grade TiO2 Feedstock Material
Smelting Operations to Produce High-Grade TiO2 Feedstock Material for our Pigment Plants Namakwa, South Africa KZN, South Africa Chandala, Australia • Two smelting furnaces that produce • Two smelting furnaces that produce Ti Slag • Metallurgical site which includes a kiln titanium slag (“Ti Slag”)
Slide 34: Jazan Expected to Increase Total Ti Slag Production
Jazan Expected to Increase Total Ti Slag Production to >900k MT Producing high-grade feedstock for our pigment plants • Jazan is a low-risk, high-return option to further optimize vertical integration of Tronox • Jazan smelter comprised of two high-grade chloride slag furnaces with 500ktpa of combin
Slide 35: Nine Pigment Plants Across Six World Regions
Nine Pigment Plants Across Six World Regions North America Europe Australia • Tronox’s largest pigment plant is located • Stallingborough, U.K plant has a production • Kwinana, Western Australia plant (~40km in Hamilton, Mississippi and has a capacity of 165k MT (chloride process) from Perth) has a
Slide 36: Tronox Delivered $89 million of Synergies in 2019
Tronox Delivered $89 million of Synergies in 2019 Increased Synergy Targets on Q4 2019 Earnings Call Total Synergies $325 USD millions Increased $105mm EBITDA Synergies Achieved & Reflected in P&L YTD $275 EBITDA Synergies Achieved to be Reflected in P&L in Future Quarters Increased $100mm Non-EBITD
Slide 37: Tronox has Significant Tax Attributes
Tronox has Significant Tax Attributes Attribute Est Tax Shield Tax Planning US $4.1B • Value Chain Analysis / Transfer Pricing Initiative Foreign $1.3B – Tronox moves from long to short feedstock position Total NOLs $5.4B – Mines / smelters / synthetic rutile plant now have guaranteed demand for all
Slide 38: Aligned with Our Shareholders and with Our Commitments
Aligned with Our Shareholders and with Our Commitments Long-term Equity Compensation Program Performance-based Integration RSUs • Aligns key management compensation to value created Time-based Performance- for shareholders from acquisition integration RSUs based RSUs • One-time grant of performance-
Slide 39: Managing FX Exposures from Global Manufacturing Platform
Managing FX Exposures from Global Manufacturing Platform Approximate Annual FX Exposures By Country Economic Hedges(1) • During 2019, we entered into foreign currency contracts used to hedge non-functional currency sales for our South African Adj EBITDA Impact Per Indicated Change in subsidiaries an
Slide 41: Consolidated Statements of Operation
Consolidated Statements of Operation (U.S. GAAP) TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Net sales $ 693 $ 429 $ 2,642 $ 1
Slide 42: 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
Slide 43: Consolidated Balance Sheets
TRONOX HOLDINGS PLC Consolidated Balance Sheets CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) December 31, December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 302 $ 1,034 Restricted cash 9 662 Accounts receivable, net of allo
Slide 44: Consolidated Statements of Cash Flows
TRONOX HOLDINGS PLC Consolidated Statements of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Year Ended December 31, 2019 2018 Cash Flows from Operating Activities: Net (los s ) incom e $ (97) $ 30 Net incom e from dis continued operations , net of tax 5 - N
Slide 45: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
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 December 31, Year Ended December 31, 2019 2018 2019 2018 Net (loss) income (
Slide 46: Free Cash Flow
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 provided by operating activities, to free cash flow for the three months ended December 31, 2019: Consolidated Cash provided by operating activ
Slide 47: Pro Forma Consolidated Statements of Operations
Pro Forma Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA 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 December 31, Year Ended December
Slide 48: Pro Forma Reconciliation of Net Income (Loss)
Reconciliation of Pro Forma 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
Slide 49: Pro Forma Reconciliation of Net Income to EBITDA
Pro Forma Reconciliation of Net Income (Loss) from Continuing Operations to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Pro

Tronox Holdings — Non-Deal Roadshow (March 2020) on 6ix

Tronox — Non-Deal Roadshow (March 2020)

Slide 1: Tronox Holdings plc

Slide 2: Safe Harbor Statement and Non-U.S. GAAP Financial Terms

Slide 3: Table of Contents

Slide 4: Q1 2020 Investor Update

Slide 5: COVID-19 Protocols

Slide 6: Operations & Supply Chain Update

Slide 7: Commercial Update

Slide 8: Update on Q1 2020 Performance

Slide 9: Liquidity and Capital Resources

Slide 10: Strong Financial Position

Slide 11: Tronox – A Focused Titanium Industry Leader

Slide 12: Tronox – A Focused Titanium Industry Leader

Slide 13: Global, Integrated Footprint Sets Tronox Apart

Slide 14: Integration and Globalization Advantages

Slide 15: A Global Organization United by Our Core Values

Slide 16: Commitment to Sustainability is a Part of Tronox Culture

Slide 17: Strategy Driven by Changing Industry Dynamics

Slide 18: Strategy Driven by Changing Industry Dynamics

Slide 19: © 2020 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 20: Tronox Vision for the Future

Slide 21: The Emergence of the “Big 3”

Slide 22: Emergence of the “Big 3”: Defining Characteristics

Slide 23: A Single Unified Commercial Approach

Slide 24: Unified Commercial Approach

Slide 25: TiO2 Customer Portfolio – Growth Trajectory Is Key

Slide 26: Early Signs of a Recovery in TiO2

Slide 27: Value-Enhancing Benefits from Zircon & TiCl4

Slide 28: Zircon Delivering Significant Profitability and Margin Enhancement

Slide 29: Capitalizing on the Strength of our Vertical Integration

Slide 30: Our Operations Philosophy

Slide 31: Tronox’s Vertically Integrated Network of Assets

Slide 32: Established Mining Operations

Slide 33: Smelting Operations to Produce High-Grade TiO2 Feedstock Material

Slide 34: Jazan Expected to Increase Total Ti Slag Production

Slide 35: Nine Pigment Plants Across Six World Regions

Slide 36: Tronox Delivered $89 million of Synergies in 2019

Slide 37: Tronox has Significant Tax Attributes

Slide 38: Aligned with Our Shareholders and with Our Commitments

Slide 39: Managing FX Exposures from Global Manufacturing Platform

Slide 40: Appendix

Slide 41: Consolidated Statements of Operation

Slide 42: Reconciliation of Non-U.S. GAAP Financial Measures

Slide 43: Consolidated Balance Sheets

Slide 44: Consolidated Statements of Cash Flows

Slide 45: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA

Slide 46: Free Cash Flow

Slide 47: Pro Forma Consolidated Statements of Operations

Slide 48: Pro Forma Reconciliation of Net Income (Loss)

Slide 49: Pro Forma Reconciliation of Net Income to EBITDA